Access National Corporation (NASDAQ: ANCX), parent
company for Access National Bank (Bank), reported fourth quarter
2015 net income of $3.9 million, or $0.37 per common share. This
represents the Corporation’s 62nd consecutive quarterly profit over
its 64 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 February 05, 2016 and payable on February
25, 2016. The routine dividend reflects Management’s favorable
performance outlook and comfort with a favorable capital
position.
Fourth quarter 2015 pretax earnings rose by $586 thousand or
10.9% when compared to fourth quarter 2014 pretax earnings. Fourth
quarter 2015 pretax income for the banking segment rose $376
thousand from fourth quarter 2014 due to increases in net interest
income of $862 thousand and other income of $370 thousand due
largely to returns on the Bank’s investments in Small Business
Investment Companies. These increases were partially offset by an
increase in salaries and benefits of $331 thousand and an increase
in other operating expense of $525 thousand due in part to
enhancements in the Bank’s online banking platform. The mortgage
segment’s increase of $328 thousand over fourth quarter 2014 was
due mainly to an increase in gains recorded on secondary mortgage
activity, net of the hedging impact.
Pretax earnings for 2015 were $23.6 million, up $2.1 million or
9.7% from $21.5 million for the year 2014. Year over year, the
banking segment pretax earnings increased $1.7 million or 9.1%. Net
interest income increased $4.1 million, from $34.5 million in 2014
to $38.6 million in 2015. Offsetting this increase in net interest
income were increases in salaries and employee benefits of $1.6
million, due to increased group health costs as well as additions
to staffing, and other expenses of $1.5 million, due largely to the
increase in operational expenses such as FDIC insurance, business
and franchise taxes and data processing costs. Decreased losses in
the other operating segment of $837 thousand pretax were due mainly
to a nonrecurring pretax impairment recorded in third quarter 2014
of $707 thousand.
The net interest margin decreased from 3.80% to 3.68% when
comparing 2014 to 2015. On a linked quarter basis, the margin
decreased to 3.63% for the three months ended December 31, 2015
when compared to 3.70% for the three months ended September 30,
2015.
On a consolidated basis, the Corporation reported annualized
return on average assets of 1.35% and 1.39% for the three and
twelve month periods ended December 31, 2015, respectively.
Meanwhile, the annualized return on average equity was 14.53% and
14.83% for the three and twelve month periods ended December 31,
2015, respectively.
Total assets were $1.2 billion at December 31, 2015 and grew
$126 million when compared to December 31, 2014. An increase in
loans held for investment of $110.9 million and a $35.1 million
growth in investment securities was partially offset by a decrease
of $21.6 million in interest-bearing balances. During the fourth
quarter of 2015, commercial loan growth was the leading driver of a
14.3% annualized growth of loans held for investment.
Total deposits at December 31, 2015 were $913.7 million, an
increase of $158.3 million when compared to December 31, 2014.
Non-interest bearing deposits grew at a rate of 21.7%, from $252.9
million at December 31, 2014 to $307.8 million at December 31, 2015
due to management’s continued focus on expanding business banking
relationships. Interest bearing deposits increased $103.4 million,
from $502.6 million at December 31, 2014 to $605.9 million at
December 31, 2015. A targeted marketing campaign was the majority
of the reason for growth in this category which saw an increase in
savings and money markets of $48.6 million and an increase in time
deposits of $28.5 million.
Non-performing assets (NPAs) increased to $7.4 million at
December 31, 2015 from $1.6 million at December 31, 2014,
representing 0.63% and 0.15% of total assets, respectively. The
increase in NPAs from year end 2014 was mainly impacted by the
addition of two loans, one totaling $6.6 million which was added in
the first quarter of 2015 and the second totaling $1.0 million
which was added in the fourth quarter of 2015. The Bank did not
have other real estate owned at December 31, 2015 while Access Real
Estate, LLC had other real estate owned with a carrying value of
$500 thousand. The allowance for loan loss was $13.6 million and
$13.4 million at December 31, 2015 and December 31, 2014,
respectively, and represented 1.53% and 1.73% of total loans held
for investment at December 31, 2015 and December 31, 2014,
respectively.
Book value per common share increased from $9.45 at December 31,
2014 to $10.35 at December 31, 2015. The ratio of total equity to
total assets for Access National Corporation and its subsidiary
bank was 9.3% at December 31, 2015, within the Corporation’s target
range of 8.00% to 10.50%.
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, 2015 2014 (In Thousands Except for Share
and Per Share Data) (Unaudited)
ASSETS Cash and due from banks $ 11,291 $ 9,804
Interest-bearing balances and federal funds sold 24,598
46,225 Investment securities: Available-for-sale, at fair
value 160,162 125,080 Held-to-maturity, at amortized cost (fair
value of $14,314 and $14,378) 14,287 14,309
Total investment securities 174,449 139,389
Restricted Stock, at amortized cost 7,259 8,961 Loans held
for sale - at fair value 44,135 45,026 Loans held for
investment net of allowance for loan losses of $13,563 and $13,399,
respectively 873,915 763,204 Premises, equipment and land,
net 6,689 6,926 Other assets 36,212 33,345
Total assets $ 1,178,548 $ 1,052,880
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES Noninterest-bearing deposits $ 307,797 $ 252,875
Savings and interest-bearing deposits 293,711 233,773
Time deposits 312,236 268,795
Total deposits 913,744 755,443 Short-term borrowings 91,129
185,635 Long-term borrowings 55,000 - Other
liabilities and accrued expenses 9,537 12,898 Total
Liabilities 1,069,410 953,976
SHAREHOLDERS' EQUITY Common stock $0.835 par value;
60,000,000 authorized; issued and outstanding, 10,544,751 and
10,469,569, respectively 8,805 8,742 Additional paid in
capital 19,953 18,538 Retained earnings 81,385 72,168
Accumulated other comprehensive income (loss), net (1,005 ) (544 )
Total shareholders' equity 109,138
98,904 Total liabilities and
shareholders' equity $ 1,178,548 $ 1,052,880
Access National Corporation Consolidated
Statement of Operations
Three
Months Ended Twelve Months Ended December 31, 2015 December
31, 2014 December 31, 2015 December 31, 2014 (In Thousands Except
for Share and Per Share Data) (unaudited) (unaudited)
INTEREST INCOME Interest and fees on
loans $ 10,396 $ 9,256 $ 40,055 $ 35,702 Interest on federal
funds sold and bank balances 34 30 129 102 Interest and
dividends on securities 1,017 853 3,482
2,697 Total interest income 11,447 10,139 43,666 38,501
INTEREST EXPENSE Interest on deposits 1,058 709 3,648 2,981
Interest on other borrowings 188 90 471
292 Total interest expense 1,246 799
4,119 3,273 Net interest income 10,201 9,340 39,547 35,228
Provision for loan losses - - 150
- Net interest income after provision for loan losses 10,201
9,340 39,397 35,228
NONINTEREST INCOME Service
charges and fees 252 170 903 695 Gain on sale of loans 4,523
4,832 19,633 15,146 Other Income 1,492 513
5,529 3,459 Total noninterest income 6,267 5,515
26,065 19,300
NONINTEREST EXPENSE Salaries and
benefits 6,547 5,955 26,966 22,654 Occupancy and equipment
793 739 3,040 2,821 Other operating expense 3,147
2,766 11,860 7,543 Total noninterest expense
10,487 9,460 41,866 33,018 Income
before income tax 5,981 5,395 23,596 21,510 Income tax
expense 2,063 1,880 8,177 7,585
NET
INCOME 3,918 3,515 15,419 13,925
Earnings per common share: Basic $ 0.37 $ 0.34 $ 1.46 $ 1.33
Diluted $ 0.37 $ 0.34 $ 1.46 $ 1.33 Average outstanding
shares: Basic 10,539,772 10,453,115 10,513,008 10,424,067 Diluted
10,625,967 10,489,516 10,581,871 10,466,841
Performance and Capital Ratios
Three Months Three Months Three Months
Three Months Twelve Months Twelve Months
Ended Ended Ended Ended Ended
Ended December 31, September 30, June
30, March 31, December 31, December 31,
(Dollars In Thousands)
2015 2015
2015 2015 2015
2014 Return on average assets (annualized) 1.35 %
1.40 % 1.44 % 1.36 % 1.39 % 1.45 % Return on average equity
(annualized) 14.53 % 15.09 % 15.54 % 14.19 % 14.83 % 14.47 % Net
interest margin 3.63 % 3.70 % 3.67 % 3.72 % 3.68 % 3.80 %
Efficiency ratio - Bank only 51.51 % 50.93 % 48.66 % 50.51 % 50.41
% 48.96 % Total average equity to earning assets 9.60 % 9.57 % 9.58
% 9.93 % 9.67 % 10.37 %
Averages Assets $ 1,161,080 $
1,129,074 $ 1,108,029 $ 1,050,296 $ 1,112,470 $ 958,067 Loans held
for investment 866,402 833,341 814,393 781,990 824,288 721,863
Loans held for sale 30,719 40,465 59,154 38,065 42,076 31,288
Interest-bearing deposits & federal funds sold 50,678 59,216
54,026 46,828 52,716 44,939 Investment securities 174,838 158,839
142,644 147,385 156,010 128,446 Earning assets 1,122,915 1,092,472
1,070,016 1,014,351 1,075,284 927,845 Interest-bearing deposits
614,775 600,854 535,671 499,467 563,112 477,267 Total deposits
939,403 925,617 839,035 760,105 866,695 715,385 Repurchase
agreements & federal funds purchased 20,961 21,928 22,506
22,695 22,017 21,129 FHLB short term borrowings 28,261 58,207
125,736 157,555 91,992 115,471 FHLB long-term borrowings 54,511
10,000 10,000 556 18,890 - Equity $ 107,823 $ 104,569 $ 102,560 $
100,754 $ 103,948 $ 96,227 Allowance for loan losses/loans
held for investment 1.53 % 1.59 % 1.62 % 1.68 % 1.53 % 1.73 % Total
NPA $ 7,417 $ 6,616 $ 7,427 $ 6,784 $ 7,417 $ 1,622 NPA to total
assets 0.63 % 0.59 % 0.64 % 0.63 % 0.63 % 0.15 % Mortgage
loan originations and brokered loans $ 105,128 $ 119,855 $ 145,223
$ 114,541 $ 484,747 $ 408,346 Gain on sale of mortgage loans net
hedging activity $ 4,291 $ 5,220 $ 5,959 $ 3,058 $ 18,528 $ 12,779
Allowance for losses on mortgage loans sold $ 1,029 $ 1,179 $ 1,187
$ 1,187 $ 1,029 $ 1,198 Wealth Management segment - assets
under management $ 611,000 $ 508,000 $ 546,000 $ 523,000 $ 611,000
$ 450,372 Book value per common share $ 10.35 $ 10.23 $ 9.94
$ 9.75 $ 10.35 $ 9.45
Composition of Loan Portfolio
December 31, 2015 September 30, 2015
June 30, 2015 March 31,
2015 December 31, 2014 (Dollars In
Thousands)
Amount Percentage of Total
Amount Percentage of Total
Amount Percentage of Total
Amount Percentage of Total
Amount Percentage of Total
Commercial real estate - owner occupied $ 219,877 24.77 % $
223,801 26.36 % $ 222,012 26.61 % $ 210,131 26.46 % $ 199,442 25.68
% Commercial real estate - non-owner occupied 147,580 16.63 137,081
16.15 134,585 16.13 123,387 15.54 125,442 16.15 Residential real
estate 201,447 22.70 196,580 23.15 198,418 23.79 191,914 24.16
194,213 25.01 Commercial 242,527 27.33 225,147 26.52 223,756 26.82
219,623 27.65 210,278 27.08 Real estate construction 66,003 7.44
57,664 6.79 47,037 5.64 43,290 5.45 41,080 5.29 Consumer
10,044 1.13 8,764 1.03
8,434 1.01 5,869 0.74
6,148 0.79
Total loans $ 887,478 100.00 % $
849,037 100.00 % $ 834,242 100.00 % $ 794,214 100.00 % $ 776,603
100.00 % Less allowance for loan losses 13,563 13,474
13,509 13,331 13,399 $ 873,915 $ 835,563 $
820,733 $ 780,883 $ 763,204
Composition of Deposits
December 31,
2015 September 30, 2015 June 30,
2015 March 31, 2015 December 31,
2014 (Dollars In Thousands)
Amount
Percentage of Total Amount
Percentage of Total Amount
Percentage of Total Amount
Percentage of Total Amount
Percentage of Total Demand deposits $ 307,797 33.69 %
$ 334,225 35.88 % $ 339,266 37.47 % $ 290,294 36.92 % $ 252,875
33.47 % Interest-bearing demand deposits 127,980 14.00 120,400
12.93 110,294 12.18 127,504 16.21 116,654 15.44 Savings and money
market 150,021 16.42 141,953 15.24 113,909 12.58 103,460 13.16
101,409 13.42 CDARS-time deposit 73,017 7.99 67,213 7.22 90,523
10.00 127,669 16.24 148,142 19.61 CDARS-money market 15,517 1.70
15,501 1.66 15,647 1.73 15,632 1.99 15,497 2.06 Brokered deposits
103,390 11.31 117,598 12.63 113,402 12.53 13,213 1.68 13,344 1.77
Time deposits 136,022 14.89 134,545
14.44 122,361 13.51
108,547 13.80 107,522
14.23 Total Deposits $ 913,744 100.00 %
$ 931,435 100.00 % $ 905,402 100.00 % $
786,319 100.00 % $ 755,443 100.00 %
Yield on Average Earning Assets and Rates on Average
Interest-Bearing Liabilities Three Months Ended
December 31, 2015 December 31, 2014
Average Income / Yield / Average
Income / Yield / (Dollars In Thousands)
Balance Expense Rate
Balance Expense Rate
Assets: Interest-earning assets: Securities $ 175,116
$ 1,017 2.32 % $ 148,909 $ 853 2.29 % Loans held for sale 30,719
307 4.00 % 37,848 388 4.10 % Loans(1) 866,402 10,089 4.66 % 740,883
8,868 4.79 % Interest-bearing balances and federal funds sold
50,678 34 0.27 % 47,156
30 0.25 %
Total interest-earning
assets 1,122,915 11,447 4.08 %
974,796
10,139 4.16 %
Noninterest-earning assets: Cash and
due from banks 10,673 9,344 Premises, land and equipment 6,769
6,998 Other assets 34,233 31,061 Less: allowance for loan losses
(13,510 ) (13,293 )
Total noninterest-earning
assets 38,165 34,110
Total Assets $ 1,161,080 $
1,008,906 Liabilities and Shareholders'
Equity: Interest-bearing deposits: Interest-bearing
demand deposits $ 134,115 $ 75 0.22 % $ 122,004 $ 67 0.22 % Money
market deposit accounts 142,792 81 0.23 % 116,129 59 0.20 % Savings
accounts 21,469 29 0.54 % 5,463 5 0.37 % Time deposits
316,399 873 1.10 % 223,782
578 1.03 %
Total interest-bearing
deposits 614,775 1,058 0.69 %
467,378
709 0.61 %
Borrowings: FHLB short-term borrowings
28,261 28 0.40 % 147,413 85 0.23 % Securities sold under agreements
to repurchase and federal funds purchased 20,961 5 0.10 % 21,143 5
0.09 % FHLB long-term borrowings 54,511
155 1.14 % - - 0.00 %
Total borrowings 103,733
188 0.72 %
168,556
90 0.21 %
Total interest-bearing deposits and
borrowings 718,508 1,246 0.69 %
635,934
799 0.50 %
Noninterest-bearing liabilities: Demand
deposits 324,628 263,756 Other liabilities 10,121
8,658
Total liabilities 1,053,257
908,348 Shareholders' Equity 107,823
100,558
Total Liabilities and Shareholders' Equity
$ 1,161,080 $ 1,008,906
Interest Spread(2) 3.38 % 3.66 % Net Interest
Margin(3) $ 10,201 3.63 % $ 9,340 3.83 %
(1) Loans placed on nonaccrual status
are included in loan balances.
(2) Interest spread is the average yield
earned on earning assets, less the average rate incurred on
interest-bearing liabilities.
(3) Net interest margin is net interest
income, expressed as a percentage of average earning assets.
Yield on Average Earning Assets and Rates on Average
Interest-Bearing Liabilities Twelve Months
Ended
December 31, 2015 December 31,
2014 Average
Income /
Yield /
Average
Income /
Yield /
(Dollars In Thousands)
Balance Expense
Rate Balance Expense
Rate Assets: Interest-earning
assets: Securities $ 156,204 $ 3,482 2.23 % $ 129,755 $ 2,697
2.08 % Loans held for sale 42,076 1,650 3.92 % 31,288 1,297 4.15 %
Loans(1) 824,288 38,405 4.66 % 721,863 34,405 4.77 %
Interest-bearing balances and federal funds sold 52,716
129 0.24 % 44,939
102 0.23 %
Total interest-earning assets
1,075,284 43,666 4.06 %
927,845 38,501
4.15 %
Noninterest-earning assets: Cash and due from banks
10,650 8,925 Premises, land and equipment 6,882 7,995 Other assets
33,110 26,523 Less: allowance for loan losses (13,456 )
(13,221 )
Total noninterest-earning assets
37,186 30,222 Total
Assets $ 1,112,470 $ 958,067
Liabilities and Shareholders' Equity:
Interest-bearing deposits: Interest-bearing demand deposits
$ 119,732 $ 265 0.22 % $ 114,853 $ 256 0.22 % Money market deposit
accounts 126,850 264 0.21 % 115,192 232 0.20 % Savings accounts
13,606 66 0.49 % 3,884 14 0.36 % Time deposits 302,924
3,053 1.01 % 243,338
2,479 1.02 %
Total interest-bearing
deposits 563,112 3,648 0.65 %
477,267
2,981 0.62 %
Borrowings: FHLB short-term borrowings
91,992 231 0.25 % 115,471 271 0.23 % Securities sold under
agreements to repurchase and federal funds purchased 22,017 21 0.10
% 21,129 21 0.10 % FHLB long-term borrowings 18,890
219 1.16 % - -
0.00 %
Total borrowings 132,899
471 0.35 %
136,600
292 0.21 %
Total interest-bearing
deposits and borrowings 696,011 4,119 0.59 %
613,867 3,273 0.53 %
Noninterest-bearing
liabilities: Demand deposits 303,583 238,118 Other liabilities
8,928 9,855
Total liabilities
1,008,522 861,840 Shareholders' Equity 103,948
96,227
Total Liabilities and Shareholders'
Equity $ 1,112,470 $ 958,067
Interest Spread(2) 3.47 % 3.62 % Net Interest
Margin(3) $ 39,547 3.68 % $ 35,228 3.80 %
(1) Loans placed on nonaccrual status
are included in loan balances.
(2) Interest spread is the average yield
earned on earning assets, less the average rate incurred on
interest-bearing liabilities.
(3) Net interest margin is net interest
income, expressed as a percentage of average earning assets.
Segment Reporting
Three Months Ended
Commercial Mortgage Wealth Consolidated
December 31, 2015 Banking Banking
Management Other Eliminations Totals
(In Thousands) Revenues: Interest income $ 11,241 $ 307 $ - $ 6 $
(107 ) $ 11,447 Gain on sale of loans - 4,523 - - - 4,523 Other
revenues 969 (4 ) 746 348
(315 ) 1,744 Total revenues 12,210
4,826 746 354 (422 )
17,714 Expenses: Interest expense 1,251 33 - 69 (107
) 1,246 Salaries and employee benefits 3,491 2,556 500 - - 6,547
Other expenses 2,154 1,184 376
541 (315 ) 3,940 Total operating
expenses 6,896 3,773 876
610 (422 ) 11,733 Income (loss) before
income taxes $ 5,314 $ 1,053 $ (130 ) $ (256 ) $ - $
5,981 Total assets $ 1,133,916 $ 46,077
$ 3,205 $ 16,837 $ (21,487 ) $
1,178,548
Three Months Ended Commercial
Mortgage Wealth Consolidated December 31,
2014 Banking Banking Management
Other Eliminations Totals (In Thousands)
Revenues: Interest income $ 9,925 $ 388 $ - $ 4 $ (178 ) $ 10,139
Gain on sale of loans - 4,832 - - - 4,832 Other revenues 599
(623 ) 542 471 (306 )
683 Total revenues 10,524 4,597
542 475 (484 ) 15,654
Expenses: Interest expense 797 102 5 73 (178 ) 799 Salaries and
employee benefits 3,160 2,385 410 - - 5,955 Other expenses
1,629 1,385 213 584
(306 ) 3,505 Total operating expenses 5,586
3,872 628 657 (484
) 10,259 Income (loss) before income taxes $ 4,938 $
725 $ (86 ) $ (182 ) $ - $ 5,395 Total assets
$ 1,006,576 $ 47,160 $ 1,624 $ 17,791 $
(20,271 ) $ 1,052,880 Segment Reporting
Twelve Months Ended
Commercial Mortgage Wealth Consolidated
December 31, 2015 Banking Banking
Management Other Eliminations Totals
(In Thousands) Revenues: Interest income $ 42,763 $ 1,650 $ - $ 16
$ (763 ) $ 43,666 Gain on sale of loans - 19,633 - - - 19,633 Other
revenues 3,229 388 2,671
1,391 (1,247 ) 6,432 Total revenues
45,992 21,671 2,671 1,407
(2,010 ) 69,731 Expenses: Interest expense
4,135 467 - 280 (763 ) 4,119 Salaries and employee benefits 13,519
11,470 1,977 - - 26,966 Other expenses 7,732 5,087
1,116 2,362 (1,247 )
15,050 Total operating expenses 25,386 17,024
3,093 2,642 (2,010 )
46,135 Income (loss) before income taxes $ 20,606 $
4,647 $ (422 ) $ (1,235 ) $ - $ 23,596 Total
assets $ 1,133,916 $ 46,077 $ 3,205 $ 16,837 $
(21,487 ) $ 1,178,548
Twelve Months Ended
Commercial Mortgage Wealth Consolidated
December 31, 2014 Banking Banking
Management Other Eliminations Totals
(In Thousands) Revenues: Interest income $ 37,816 $ 1,297 $ - $ 13
$ (625 ) $ 38,501 Gain on sale of loans - 15,146 - - - 15,146 Other
revenues 2,454 (614 ) 2,126
1,388 (1,200 ) 4,154 Total revenues
40,270 15,829 2,126 1,401
(1,825 ) 57,801 Expenses: Interest expense
3,264 281 21 332 (625 ) 3,273 Salaries and employee benefits 11,897
9,212 1,545 - - 22,654 Other expenses 6,220 1,293
910 3,141 (1,200 )
10,364 Total operating expenses 21,381 10,786
2,476 3,473 (1,825 )
36,291 Income (loss) before income taxes $ 18,889 $ 5,043
$ (350 ) $ (2,072 ) $ - $ 21,510 Total assets
$ 1,006,576 $ 47,160 $ 1,624 $ 17,791 $
(20,271 ) $ 1,052,880
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Access National CorporationMichael Clarke, 703-871-2100
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