Access National Increases Dividend, Reports Second Quarter Earnings

Access National Increases Dividend, Reports Second Quarter Earnings

RESTON, Va.--(BUSINESS WIRE)-- Access National Corporation (NAS: ANCX) , parent company for Access National Bank (Bank), reported second quarter net income of $3.5 million, down from the record setting $3.9 million recorded in the second quarter of 2012. This represents the Corporation's 52nd consecutive quarterly profit over its 54 quarter history. Net income per diluted common share was $0.34 in comparison to the $0.38 reported in the second quarter of 2012.

The Board of Directors declared a cash dividend of $0.11 per share for holders of record as of August 7, 2013 and payable on August 23, 2013. This dividend represents a steady migration towards the stated objective equal to a 40% payout ratio of core earnings. It also represents a 1 cent increase over the prior quarter and a 10 cent increase over the last 9 quarters.


The second quarter of 2013 reflects a 21% increase in banking segment pretax earnings in comparison to the second quarter of 2012. With the closing of the Denver Mortgage Production Branch in April 2013 as well as an increase in mortgage loan rates, the mortgage segment's contribution has decreased from 56% of the Corporation's pre-tax income in the second quarter of 2012 to a contribution of 34% in the second quarter of 2013. This decrease in the mortgage division's pre-tax contribution aligns with management's intent, being that 70 - 80% of the Corporation's net income is generated from the core business of the Bank.

Net interest margin for the first six months of 2013 decreased to 3.81% from 3.95% for the same period in 2012, yet on a linked quarter basis, the margin increased for the three months ended June 30, 2013 to 3.89% from 3.73% reported in the prior quarter.

Annualized return on average assets remained at 1.66% for both the first and second quarters of 2013, down slightly from the 1.80% reported for the six months ended June 30, 2012. Annualized return on average equity was 14.88% for the quarter ended June 30, 2013 compared to 17.55% for the same period last year.

Total assets amounted to $841.7 million compared to $863.9 million at December 31, 2012, an overall decline of $22.2 million. The decrease in loans held for sale of $62.6 million was offset by a growth in investment securities and cash balances of $13.3 million and loans held for investment of $24.5 million.

Total deposits at June 30, 2013 decreased $11.6 million from December 31, 2012. Management has viewed CDARS as a cost effective method of funding the mortgage division's warehouse on loans held for sale as well as its investment portfolio. The $46.8 million reduction in CDARS was a planned response to the $62.7 million decrease in mortgage loans held for sale. Management continues to focus on expanding business banking relationships as evidenced by the increase in noninterest-bearing deposits of $56.3 million or 34.30% from December 31, 2012, which comprised 33.42% of the deposit portfolio at June 30, 2013.

Non-performing assets (NPAs) decreased to $2.3 million or 0.27% of total assets at June 30, 2013, down from $2.7 million or 0.32% of assets at December 31, 2012. The Corporation did not have other real estate owned at June 30, 2013. The allowance for loan losses totaled $13.0 million or 2.01% of total loans held for investment as of June 30, 2013.

Book value per common share increased 6.4% at June 30, 2013 to $9.20, from $8.65 at June 30, 2012. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 11.24% at June 30, 2013 and continued to exceed standards of being "Well Capitalized" as set forth under banking regulations.

To better understand the impact the closing the Denver Mortgage Production Branch had on net income, included at the end of this release is pro forma information presenting results of the Corporation as if the Denver Mortgage Production Branch, which closed on April 30, 2013, had not been in existence in the three and six month periods ended June 30, 2013 and 2012.

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
       
June 30,December 31,June 30,
201320122012
(In Thousands) (Unaudited)   (Unaudited)
 
ASSETS
 
Cash and due from banks$11,499$15,735$11,322
 
Interest-bearing balances and federal funds sold35,12322,20622,335
 
Investment securities:
Available-for-sale, at fair value69,42735,75932,477
Held-to-maturity, at amortized cost (fair value of $15,530, $45,308 and $70,363) 15,861  44,952 69,936
Total investment securities85,28880,711102,413
 
Restricted Stock, at amortized cost4,2844,2375,788
 
Loans held for sale - at fair value48,887111,542100,310
 

Loans held for investment net of allowance for loan losses of $13,007, 12,500, and $12,031, respectively

628,457604,478570,569
 
Premises, equipment and land, net8,4348,5178,517
 
Other assets19,71116,48820,455
   
Total assets$841,683 $863,914$841,709
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Noninterest-bearing deposits$220,474$164,161$157,305
 
Savings and interest-bearing deposits190,179187,997173,423
 
Time deposits 249,205  319,338 350,203
 
Total deposits659,858671,496680,931
 
Short-term borrowings70,16183,09148,161
 
Long-term borrowings--2,964
 
Subordinated debentures6,1866,1866,186
 
Other liabilities and accrued expenses10,89811,87414,419
   
Total Liabilities 747,103  772,647 752,661
 
SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding,10,285,212, 10,317,767 and 10,250,802 shares, respectively

8,5888,6158,559
 
Additional paid in capital16,71917,15516,753
 
Retained earnings70,65365,40463,673
 
Accumulated other comprehensive income (loss), net(1,380)9363
   
Total shareholders' equity 94,580  91,267 89,048
   
Total liabilities and shareholders' equity$841,683 $863,914$841,709
 
 
Access National Corporation
Consolidated Statement of Operations
       
 Three Months Ended Six Months Ended
June 30, 2013June 30, 2013 June 30, 2012
(In Thousands Except for Share and Per Share Data) (unaudited) (unaudited)
 
INTEREST INCOME
Interest and fees on loans$8,611$17,206$17,040
 
Interest on federal funds sold and bank balances285450
 
Interest on securities 447 982 1,263 
Total interest income9,08618,24218,353
 
INTEREST EXPENSE
Interest on deposits9661,9672,423
 
Interest on other borrowings 68 134 330 
Total interest expense 1,034 2,101 2,753 
Net interest income8,05216,14115,600
 
Provision for loan losses - 225 1,190 
Net interest income after provision for loan losses8,05215,91614,410
 
NONINTEREST INCOME
Service charges and fees138307337
 
Gain on sale of loans7,12015,00125,682
 
Other Income 765 3,559 (186)
Total noninterest income8,02318,86725,833
 
NONINTEREST EXPENSE
Salaries and benefits6,79914,86815,809
 
Occupancy and equipment6161,3201,230
 
Other operating expense 3,118 7,000 11,136 
Total noninterest expense 10,533 23,188 28,175 
Income before income tax5,54211,59512,068
 
Income tax expense 2,018 4,387 4,741 
NET INCOME 3,524 7,208 7,327 
 
Earnings per common share:
Basic$0.34$0.70$0.72 
Diluted$0.34$0.69$0.71 
 
Average outstanding shares:
Basic10,306,56110,314,59210,219,085
Diluted10,379,87010,408,73510,331,529
 
 
Performance and Capital Ratios
         
 Three Months Six Months Six Months Twelve Months
EndedEndedEndedEnded
June 30,June 30,June 30,December 31,
(Dollars In Thousands) 2013 2013 2012 2012
 
Return on average assets (annualized)1.66%1.66%1.80%2.15%
Return on average equity (annualized)14.88%15.41%16.80%19.68%
Net interest margin3.89%3.81%3.95%3.94%
Efficiency ratio - Bank only51.30%52.26%52.40%51.71%
Total average equity to earning assets11.44%11.04%11.03%11.24%
 
Averages
Assets$850,200$869,285$812,855$826,233
Loans held for investment645,654636,129573,946583,724
Loans held for sale49,81462,22268,64878,543
Interest-bearing deposits & federal funds sold38,310
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