Access National Reports 91% Increase in Fourth Quarter Earnings, Dividend Increased

Before you go, we thought you'd like these...
Before you go close icon

Access National Reports 91% Increase in Fourth Quarter Earnings, Dividend Increased

RESTON, Va.--(BUSINESS WIRE)-- Access National Corporation (NAS: ANCX) , parent company for Access National Bank, reported record fourth quarter net income of $6.3 million, a $3.0 million increase over the $3.3 million recorded in the fourth quarter of 2011. This represents the company's 7th consecutive record quarterly earnings and its 50th consecutive quarterly profit over its 13 year history. Net income per diluted common share was $0.60, an increase of 87.5% over the $0.32 reported in the fourth quarter of 2011.


Based on record earnings, strong capital and favorable outlook, the Board of Directors declared a cash dividend of $0.09 per share for holders of record as of February 11, 2013 and payable on February 25, 2013. This dividend is in addition to the $0.70 non-routine dividend paid in the fourth quarter of 2012 and represents a 1 cent increase from the prior quarter and an 8 cent cumulative increase over the past 2 years.

The $3.0 million increase in net income between the fourth quarter of 2012 and 2011 is mainly attributable to activity in our mortgage division. Net income increased 55.6% for the year ended December 31, 2012 totaling $17.7 million compared to $11.4 million for the year 2011. Net interest margin was 3.94% for 2012 compared to 3.82% for 2011. Diluted earnings per share were $1.71 compared to $1.10 in 2011.

Annualized return on average assets was 2.97% for the fourth quarter of 2012 compared to 1.61% for the same quarter of 2011. Annualized return on average equity was 26.80% for the quarter ended December 31, 2012 compared to 15.87% for last year.

Total assets amounted to $863.9 million compared to $809.8 million at December 31, 2011. The increase in assets is mainly attributable to a $46.8 million or 8% growth in net loans held for investment as well as a $16.4 million or 17% growth in loans held for sale. The growth in loans held for investment was driven by a 13.3% growth in commercial and industrial loans to the bank's target market. The asset growth was funded by a 4% growth in total deposits as well as short-term borrowings from the Federal Home Loan Bank.

Total deposits at December 31, 2012 increased $26.5 million from December 31, 2011. As a result of management's continued focus on expanding business banking relationships, noninterest-bearing deposits increased $50.3 million or 44.1% from December 31, 2011, and comprised 24.5% of the deposit portfolio, up from 17.66% at December 31, 2011.

Non-performing assets (NPAs) decreased to $2.7 million or 0.32% of total assets at December 31, 2012, down from $3.6 million or 0.43% of assets at September 30, 2012. The Corporation did not have other real estate owned at December 31, 2012. The allowance for loan losses totaled $12.5 million or 2.03% of total loans held for investment as of December 31, 2012.

Net of the $0.95 in dividends paid during the year, book value per common share increased 8.9% at December 31, 2012 to $8.85, compared to $8.13 at December 31, 2011. The ratio of total equity to total assets for Access National Corporation was 10.56% at December 31, 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
     
December 31,December 31,
20122011
(In Thousands) (unaudited)  
 
ASSETS
 
Cash and due from banks$15,735$5,362
 
Interest-bearing balances and federal funds sold22,20638,547
 
Investment securities:
Available-for-sale, at fair value35,75945,837
Held-to-maturity, at amortized cost (fair value of $45,308 and $39,978) 44,952 39,987
Total investment securities80,71185,824
 
Restricted Stock, at amortized cost4,2373,665
 
Loans held for sale - at fair value111,54295,126
 

Loans held for investment net of allowance for loan losses of $12,500 and $11,738, respectively

604,478557,662
 
Premises, equipment and land, net8,5178,671
 
Other assets16,48814,901
  
Total assets$863,914$809,758
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Noninterest-bearing deposits$164,161$113,885
 
Savings and interest-bearing deposits187,997182,005
 
Time deposits 319,338 349,123
 
Total deposits671,496645,013
 
Short-term borrowings83,09159,904
 
Long-term borrowings-4,821
 
Subordinated debentures6,1866,186
 
Other liabilities and accrued expenses11,87411,019
  
Total Liabilities 772,647 726,943
 
SHAREHOLDERS' EQUITY

 

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,317,767 and 10,192,649 shares, respectively

8,6158,511
 
Additional paid in capital17,15516,716
 
Retained earnings65,40457,529
 
Accumulated other comprehensive income (loss), net9359
  
Total shareholders' equity 91,267 82,815
  
Total liabilities and shareholders' equity$863,914$809,758
 
   

Access National Corporation

Consolidated Statement of Operations
       
Three Months EndedTwelve Months Ended
December 31, 2012December 31, 2012December 31, 2011
(In Thousands Except for Share and Per Share Data) (unaudited) (unaudited)  
 
INTEREST INCOME
Interest and fees on loans$8,699$34,371$32,808
 
Interest on federal funds sold and bank balances1779143
 
Interest on securities 475 2,266  2,216
Total interest income9,19136,71635,167
 
INTEREST EXPENSE
Interest on deposits1,0174,5295,204
 
Interest on other borrowings 202 636  1,846
Total interest expense 1,219 5,165  7,050
Net interest income7,97231,55128,117
 
Provision for loan losses 175 1,515  1,149
Net interest income after provision for loan losses7,79730,03626,968
 
NONINTEREST INCOME
Service charges and fees179666693
 
Gain on sale of loans12,58855,74935,345
 
Other Income 3,469 (1,621) 391
Total noninterest income16,23654,79436,429
 
NONINTEREST EXPENSE
Salaries and benefits7,65531,48125,415
 
Occupancy and equipment7812,7222,931
 
Other operating expense 5,725 22,196  17,376
Total noninterest expense 14,161 56,399  45,722
Income before income tax9,87228,43117,675
 
Income tax expense 3,609  10,708   6,287
NET INCOME$6,263 $17,723  $11,388
 
Earnings per common share:
Basic$0.61$1.73 $1.11
Diluted$0.60$1.71 $1.10
 
Average outstanding shares:
Basic10,305,20910,253,65610,277,801
Diluted10,400,56810,363,26710,344,325
 
 
Performance and Capital Ratios
            
Three MonthsThree MonthsTwelve MonthsTwelve Months
EndedEndedEndedEnded
December 31,December 31,December 31,December 31,
(Dollars In Thousands)  2012 2011 2012 2011 
 
Return on average assets (annualized)2.97%1.61%2.15%1.50%
Return on average equity (annualized)26.80%15.87%19.68%14.80%
Net interest margin3.92%3.77%3.94%3.82%
Efficiency ratio - Bank only47.79%53.85%51.71%52.92%
Total average equity to earning assets11.49%10.52%11.24%10.46%
 
Averages
Assets$844,174$822,190$826,233$758,994
Loans held for investment601,240549,245583,724520,062
Loans held for sale88,79991,96278,54351,774
Interest-bearing deposits & federal funds sold24,82673,33833,27258,128
Investment securities99,07580,670105,520105,042
Earning assets813,787795,129800,917735,928
Interest-bearing deposits507,445523,958526,346465,301
Total deposits682,781648,856672,693565,450
Repurchase agreements & federal funds purchased26,82535,65526,74436,612
Commercial paper & other short term borrowings20,42930,32614,74859,220
Long-term borrowings7,31411,5929,20112,382
Equity$93,470$83,614$90,047$76,969
  Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Tue, Dec 06
Set Your Location
City, State, or Zip