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

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,

2012

2011

2011

(In Thousands)

(Unaudited)

(Unaudited)

ASSETS

Cash and due from banks

$

13,090

$

5,362

$

10,909

Interest-bearing balances and federal funds sold

43,360

38,547

32,017

Investment securities:

Available-for-sale, at fair value

36,719

45,837

55,920

Held-to-maturity, at amortized cost (fair value of $65,454, $39,978 and $9,978)

64,939

39,987

10,000

Total investment securities

101,658

85,824

65,920

Restricted Stock, at amortized cost

2,824

3,665

4,367

Loans held for sale - at fair value

84,011

95,126

96,764

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

578,571

557,662

531,045

Premises, equipment and land, net

8,425

8,671

8,720

Other assets

17,409

14,901

15,725

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 deposits

193,840

182,005

167,673

Time deposits

319,129

349,123

314,119

Total deposits

705,782

645,013

596,902

Short-term borrowings

26,770

59,904

65,015

Long-term borrowings

2,661

4,821

5,375

Subordinated debentures

6,186

6,186

6,186

Other liabilities and accrued expenses

15,167

11,019

11,813

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

8,582

8,511

8,538

Additional paid in capital

16,896

16,716

16,900

Retained earnings

67,189

57,529

54,637

Accumulated other comprehensive income (loss), net

115

59

101

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, 2012

September 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 balances

12

62

97

Interest on securities

528

1,791

1,710

Total interest income

9,172

27,525

25,975

INTEREST EXPENSE

Interest on deposits

1,089

3,512

3,925

Interest on other borrowings

104

434

1,430

Total interest expense

1,193

3,946

5,355

Net interest income

7,979

23,579

20,620

Provision for loan losses

150

1,340

936

Net interest income after provision for loan losses

7,829

22,239

19,684

NONINTEREST INCOME

Service charges and fees

150

487

519

Gain on sale of loans

17,479

43,161

24,719

Other Income

(4,904

)

(5,090

)

(597

)

Total noninterest income

12,725

38,558

24,641

NONINTEREST EXPENSE

Salaries and benefits

8,017

23,826

18,220

Occupancy and equipment

711

1,941

1,982

Other operating expense

5,336

16,471

11,606

Total noninterest expense

14,064

42,238

31,808

Income before income tax

6,490

18,559

12,517

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:

Basic

10,271,246

10,236,472

10,303,840

Diluted

10,389,441

10,350,833

10,365,793