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

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,

2012

2011

(In Thousands)

(unaudited)

ASSETS

Cash and due from banks

$

15,735

$

5,362

Interest-bearing balances and federal funds sold

22,206

38,547

Investment securities:

Available-for-sale, at fair value

35,759

45,837

Held-to-maturity, at amortized cost (fair value of $45,308 and $39,978)

44,952

39,987

Total investment securities

80,711

85,824

Restricted Stock, at amortized cost

4,237

3,665

Loans held for sale - at fair value

111,542

95,126

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

604,478

557,662

Premises, equipment and land, net

8,517

8,671

Other assets

16,488

14,901

Total assets

$

863,914

$

809,758

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Noninterest-bearing deposits

$

164,161

$

113,885

Savings and interest-bearing deposits

187,997

182,005

Time deposits

319,338

349,123

Total deposits

671,496

645,013

Short-term borrowings

83,091

59,904

Long-term borrowings

-

4,821

Subordinated debentures

6,186

6,186

Other liabilities and accrued expenses

11,874

11,019

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

8,615

8,511

Additional paid in capital

17,155

16,716

Retained earnings

65,404

57,529

Accumulated other comprehensive income (loss), net

93

59

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 Ended

Twelve Months Ended

December 31, 2012

December 31, 2012

December 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 balances

17

79

143

Interest on securities

475

2,266

2,216

Total interest income

9,191

36,716

35,167

INTEREST EXPENSE

Interest on deposits

1,017

4,529

5,204

Interest on other borrowings

202

636

1,846

Total interest expense

1,219

5,165

7,050

Net interest income

7,972

31,551

28,117

Provision for loan losses

175

1,515

1,149

Net interest income after provision for loan losses

7,797

30,036

26,968

NONINTEREST INCOME

Service charges and fees

179

666

693

Gain on sale of loans

12,588

55,749

35,345

Other Income

3,469

(1,621

)

391

Total noninterest income

16,236

54,794

36,429

NONINTEREST EXPENSE

Salaries and benefits

7,655

31,481

25,415

Occupancy and equipment

781

2,722

2,931

Other operating expense

5,725

22,196

17,376

Total noninterest expense

14,161

56,399

45,722

Income before income tax

9,872

28,431

17,675

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:

Basic

10,305,209

10,253,656

10,277,801

Diluted

10,400,568

10,363,267

10,344,325

Performance and Capital Ratios

Three Months

Three Months

Twelve Months

Twelve Months

Ended

Ended

Ended

Ended

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 margin

3.92

%

3.77

%

3.94

%

3.82

%

Efficiency ratio - Bank only

47.79

%

53.85

%

51.71

%

52.92

%

Total average equity to earning assets

11.49

%

10.52

%

11.24

%

10.46

%

Averages

Assets

$

844,174

$

822,190

$

826,233

$

758,994

Loans held for investment

601,240

549,245

583,724

520,062

Loans held for sale

88,799

91,962

78,543

51,774

Interest-bearing deposits & federal funds sold

24,826

73,338

33,272

58,128

Investment securities

99,075

80,670

105,520

105,042

Earning assets

813,787

795,129

800,917

735,928

Interest-bearing deposits

507,445

523,958

526,346

465,301

Total deposits

682,781

648,856

672,693

565,450

Repurchase agreements & federal funds purchased

26,825

35,655

26,744

36,612

Commercial paper & other short term borrowings

20,429

30,326

14,748

59,220

Long-term borrowings

7,314

11,592

9,201

12,382

Equity

$

93,470

$

83,614

$

90,047

$

76,969