Access National Increases Dividend, Reports First Quarter Earnings

RESTON, Va.--(BUSINESS WIRE)-- Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported first quarter 2015 net income of $3.6 million, or $0.34 per share. This represents the Corporation’s 59th consecutive quarterly profit over its 61 quarter history. Consistent with management’s stated objective of a 40%-50% payout ratio against core earnings, the Board of Directors declared a cash dividend of $0.15 per share for holders of record as of May 4, 2015 and payable on May 22, 2015. The increase in the routine dividend reflects Management’s favorable performance outlook and comfort with a favorable capital position.

First quarter 2015 pretax earnings increased $1.8 million or 47% when compared to first quarter 2014 pretax earnings. The increase was primarily due to increases in pretax income for both the banking and mortgage segments from first quarter 2014 of $749 thousand and $1.0 million, respectively. The banking segment’s increase was due to an increase in net interest income over first quarter 2014 of $1.2 million and was partially offset by an increase in salaries and employee benefits of $427 thousand. The mortgage segment’s increase over first quarter 2014 was due to an increase in mortgage loan originations of $44.0 million or 62.3%.

Net interest margin for the first quarter 2015 decreased to 3.72% from 3.78% for the same period in 2014. On a linked quarter basis, the margin decreased from 3.83% for the three months ended December 31, 2014 due to decreased yields in the investment and loan portfolios.

On a consolidated basis, the Corporation reported annualized return on average assets of 1.36% and 1.10% for the three month periods ended March 31, 2015 and 2014, respectively. Meanwhile, the annualized return on average equity was 14.19% and 10.43% for the three month periods ended March 31, 2015 and 2014, respectively.

Total assets at March 31, 2015 remained steady from December 31, 2014 at $1.1 billion. Loans held for investment increased by $17.6 million while loans held for sale increased by $12.1 million. These increases were offset by a decrease in interest-bearing balances of $12.6 million. The first quarter of 2015 reflected loan growth in the commercial real estate – owner occupied, commercial and real estate construction categories of the loans held for investment portfolio. Overall, the portfolio of loans held for investment grew at an annualized rate of 9.1%.

Total deposits at March 31, 2015 increased $30.9 million when compared to December 31, 2014. The increase was mainly due to an increase in demand deposits of $37.4 million as well as an increase in savings and interest-bearing demand deposits of $13.0 million. Offsetting these increases was a decrease in time deposits of $19.6 million due mainly to a decrease in Certificate of Deposit Account Registry Service (CDARS) deposits totaling $20.3 million.

Non-performing assets (NPAs) increased to $6.8 million at March 31, 2015 from $2.5 million at December 31, 2014 representing 0.63% and 0.30% of total assets, respectively. This increase in NPAs was due to the addition of one $6 million loan to non-accrual status. The Bank did not have other real estate owned at March 31, 2015 while Access Real Estate, LLC had other real estate owned with a carrying value of $500 thousand. The allowance for loan losses remained relatively unchanged at March 31, 2015 from December 31, 2014 at $13.3 million and $13.4 million, respectively, or 1.68% and 1.73% of total loans held for investment as of March 31, 2015 and December 31, 2014, respectively.

Book value per common share increased from $9.45 at December 31, 2014 to $9.75 at March 31, 2015. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 9.60% at March 31, 2015 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
Michael Clarke, 703-871-2100

Source: Access National Corporation

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