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
 

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