Access National Reports 33% Increase in Third Quarter Earnings, Dividend Increased

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Access National Reports 33% Increase in Third Quarter Earnings,Dividend Increased

RESTON, Va.--(BUSINESS WIRE)-- Access National Corporation (NAS: ANCX) , parent company for Access National Bank, reported record third quarter net income of $4.1 million, a $1.0 million increase over the $3.1 million recorded in the third quarter of 2011. This represents the company's 5th consecutive quarterly earnings in excess of $3 million and its 49th consecutive quarterly profit over its 12¾ year history. Net income per diluted common share was $0.40, an increase of 33.3% over the $0.30 reported in the third quarter of 2011.

Based on record earnings, strong capital and favorable outlook, the Board of Directors declared a cash dividend of $0.08 per share for holders of record as of November 07, 2012 and payable on November 23, 2012. This dividend represents a 2 cent increase from the prior quarter and a 7 cent cumulative increase over the past 2 years.


Net income increased 42% for the nine months ended September 30, 2012 totaling $11.5 million compared to $8.1 million for the same period in 2011. Net interest margin remained steady at 3.95% for the nine month period ended September 30, 2012 as compared to 3.85% for the same period in 2011. Diluted earnings per share were $1.11 compared to $0.78 in 2011.

Annualized return on average assets was 1.98% for the third quarter of 2012 compared to 1.69% for the same quarter of 2011. Annualized return on average equity was 17.93% for the quarter ended September 30, 2012 compared to 15.92% for the same period last year.

Total assets amounted to $849.3 million compared to $809.8 million at December 31, 2011. The increase in assets is mainly attributable to an increase in both loans held for investment and investment securities, and was funded by a significant increase in core deposits.

Total deposits at September 30, 2012 increased $60.8 million or 9.42% from December 31, 2011. As a result of management's continued focus on expanding business banking relationships, noninterest bearing deposits increased $78.9 million or 69.31% from December 31, 2011 and comprised 27.32% of the deposit portfolio, up from 17.66% at December 31, 2011. The overall increase in deposits allowed the Company to decrease its borrowings which, coupled with other factors, contributed to the increase in net interest margin.

Non-performing assets (NPAs) decreased to $3.6 million or 0.43% of total assets, down from $5.2 million or 0.62% of assets at June 30, 2012. The Corporation did not have other real estate owned at September 30, 2012. The allowance for loan losses totaled $12.0 million or 2.04% of total loans held for investment as of September 30, 2012.

Book value per common share increased 15.2% at September 30, 2012 to $9.03, compared to $7.84 at September 30, 2011. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 10.92% at September 30, 2012 and continued to exceed standards of being "Well Capitalized" as set forth under banking regulations.

Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater Washington DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".

This press release contains "forward-looking statements" within the meaning of the federal securities laws.These statements may be identified as "may", "could", "expect", "believe", anticipate", "intend", "plan" or variations thereof.These forward-looking statements may contain information related to those matters such as the Company's intent, belief, or expectation with respect to matters such as financial performance.Such statements are necessarily based on assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company's operations and business environment, which are difficult to predict and beyond control of the company.Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements.For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to the Company's Annual Report on Form 10-K and other SEC filings.

 
Access National Corporation
Consolidated Balance Sheet
             
  September 30,  December 31,  September 30,
201220112011
(In Thousands)  (Unaudited)      (Unaudited)
 
ASSETS
 
Cash and due from banks$13,090$5,362$10,909
 
Interest-bearing balances and federal funds sold43,36038,54732,017
 
Investment securities:
Available-for-sale, at fair value36,71945,83755,920
Held-to-maturity, at amortized cost (fair value of $65,454, $39,978 and $9,978) 64,939 39,987 10,000
Total investment securities101,65885,82465,920
 
Restricted Stock, at amortized cost2,8243,6654,367
 
Loans held for sale - at fair value84,01195,12696,764
 

Loans held for investment net of allowance for loan losses of $12,048, $11,738 and $11,537, respectively

578,571557,662531,045
 
Premises, equipment and land, net8,4258,6718,720
 
Other assets17,40914,90115,725
      
Total assets$849,348$809,758$765,467
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Noninterest-bearing deposits$192,813$113,885$115,110
 
Savings and interest-bearing deposits193,840182,005167,673
 
Time deposits 319,129 349,123 314,119
 
Total deposits705,782645,013596,902
 
Short-term borrowings26,77059,90465,015
 
Long-term borrowings2,6614,8215,375
 
Subordinated debentures6,1866,1866,186
 
Other liabilities and accrued expenses15,16711,01911,813
      
Total Liabilities 756,566 726,943 685,291
 
SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,277,267, 10,192,649 and 10,224,742 shares, respectively

8,5828,5118,538
 
Additional paid in capital16,89616,71616,900
 
Retained earnings67,18957,52954,637
 
Accumulated other comprehensive income (loss), net11559101
      
Total shareholders' equity 92,782 82,815 80,176
      
Total liabilities and shareholders' equity$849,348$809,758$765,467
             
 

 
Access National Corporation
Consolidated Statement of Operations
 
  Three Months Ended  Nine Months Ended
September 30, 2012September 30, 2012  September 30, 2011
(In Thousands Except for Share Data)  (unaudited)  (unaudited)  (unaudited)
 
INTEREST INCOME
Interest and fees on loans$8,632$25,672$24,168
 
Interest on federal funds sold and bank balances126297
 
Interest on securities 528  1,791  1,710 
Total interest income9,17227,52525,975
 
INTEREST EXPENSE
Interest on deposits1,0893,5123,925
 
Interest on other borrowings 104  434  1,430 
Total interest expense 1,193  3,946  5,355 
Net interest income7,97923,57920,620
 
Provision for loan losses 150  1,340  936 
Net interest income after provision for loan losses7,82922,23919,684
 
NONINTEREST INCOME
Service charges and fees150487519
 
Gain on sale of loans17,47943,16124,719
 
Other Income (4,904) (5,090) (597)
Total noninterest income12,72538,55824,641
 
NONINTEREST EXPENSE
Salaries and benefits8,01723,82618,220
 
Occupancy and equipment7111,9411,982
 
Other operating expense 5,336  16,471  11,606 
Total noninterest expense 14,064  42,238  31,808 
Income before income tax6,49018,55912,517
 
Income tax expense 2,358  7,099  4,446 
NET INCOME$4,132 $11,460 $8,071 
 
Earnings per common share:
Basic$0.40 $1.12 $0.78 
Diluted$0.40 $1.11 $0.78 
 
Average outstanding shares:
Basic10,271,24610,236,47210,303,840
Diluted10,389,44110,350,83310,365,793
                
 

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