ANCX Access National Corp.

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported third quarter 2016 net income of $4.4 million, or $0.42 per common share. This represents the Corporation’s 65th consecutive quarterly profit over its 67 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 October 31, 2016 and payable on November 25, 2016. The routine dividend affirms Management’s favorable outlook on forward earnings and capital adequacy.

Third quarter 2016 pretax earnings rose by $879 thousand or 14.6% when compared to third quarter 2015 pretax earnings. Third quarter 2016 pretax income for the banking segment decreased $210 thousand from third quarter 2015 due mainly to an increase of $750 thousand in the provision for loan loss. The banking segment interest income increased $1.6 million when compared to third quarter 2015 which was partially offset by an increase in salaries and benefits and interest expense of $444 thousand and $577 thousand, respectively. The mortgage segment’s pretax earnings increase of $1.2 million over third quarter 2015 was due mainly to an increase in gains recorded on secondary mortgage activity due to more favorable gain on sale margins.

The net interest margin decreased from 3.70% to 3.49% when comparing third quarter 2015 to third quarter 2016. On a linked quarter basis, the margin decreased from 3.51% for the three months ended June 30, 2016 when compared to 3.49% for the three months ended September 30, 2016.

On a consolidated basis, the Corporation reported annualized return on average assets of 1.34% and 1.40% for the three month periods ended September 30, 2016 and 2015, respectively. Meanwhile, the annualized return on average equity was 14.92% and 15.09% for the three month periods ended September 30, 2016 and 2015, respectively.

Total assets were $1.4 billion at September 30, 2016 and grew $184.3 million and $244.6 million when compared to December 31, 2015 and September 30, 2015, respectively. The $184.3 million growth in assets since December 31, 2015 was due mainly to an increase in loans held for investment of $79.1 million and a $43.2 million increase in interest-bearing balances. Additionally, loans held for sale increased $26.9 million while investment securities increased $25.0 million from December 31, 2015. Commercial loan growth continues to remain the leading driver in the year-over-year growth rate of loans held for investment of 13.8%.

Total deposits at September 30, 2016 were $1.115 billion, an increase of $201.3 million and $183.6 million when compared to December 31, 2015 and September 30, 2015, respectively. At September 30, 2016, non-interest bearing deposits were $409.6 million, an increase of $101.8 million from the December 31, 2015 figure and an increase of $75.3 million from the September 30, 2015 figure. The year-over-year growth rate in non-interest bearing deposits of 22.5% was due to management’s continued focus on expanding business banking relationships. Interest-bearing deposits increased to $705.5 million at September 30, 2016, an increase of $99.5 million since December 31, 2015 and an increase of $108.3 million when compared to the September 30, 2015 balances. A targeted marketing campaign was the majority of the reason for growth in this category which saw a year-over-year increase in savings and money market accounts of $123.4 million and an increase in time deposits of $29.2 million. These increases were offset by a $48.7 million reduction in wholesale funding when comparing September 30, 2016 to September 30, 2015.

Non-performing assets (NPAs) decreased to $5.8 million at September 30, 2016 from $6.6 million at September 30, 2015, representing 0.43% and 0.59% of total assets, respectively. The allowance for loan loss was $14.7 million and $13.5 million at September 30, 2016 and September 30, 2015, respectively, and represented 1.52% and 1.59% of total loans held for investment at September 30, 2016 and 2015, respectively.

Book value per common share increased from $10.23 at September 30, 2015 to $11.44 at September 30, 2016. The tangible common equity ratio for Access National Corporation and its subsidiary bank was 8.78% at September 30, 2016, 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               September 30, December 31, September 30, 2016 2015 2015 (In Thousands Except for Share and Per Share Data)   (Unaudited)       (Unaudited)   ASSETS   Cash and due from banks $ 14,109 $ 11,291 $ 11,085   Interest-bearing balances and federal funds sold 67,801 24,598 33,781   Investment securities: Available-for-sale, at fair value 190,265 160,162 141,572 Held-to-maturity, at amortized cost (fair value of $9,475, $14,314 and $14,487)   9,214     14,287     14,293   Total investment securities 199,479 174,449 155,865   Restricted Stock, at amortized cost 6,309 7,259 4,071   Loans held for sale - at fair value 70,998 44,135 35,904  

Loans held for investment net of allowance for loan losses of $14,696, $13,563 and $13,474, respectively

951,849

873,915

835,563   Premises, equipment and land, net 6,875 6,689 6,811   Other assets 45,418 36,212 35,149           Total assets $ 1,362,838   $ 1,178,548   $ 1,118,229     LIABILITIES AND SHAREHOLDERS' EQUITY   LIABILITIES Noninterest-bearing deposits $ 409,558 $ 307,797 $ 334,225   Savings and interest-bearing deposits 436,865 293,711 278,050   Time deposits   268,630     312,236     319,160     Total deposits 1,115,053 913,744 931,435   Short-term borrowings 41,336 91,129 59,699   Long-term borrowings 75,000 55,000 10,000   Other liabilities and accrued expenses 10,118 9,537 9,466           Total Liabilities   1,241,507     1,069,410     1,010,600     SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,610,279, 10,544,751 and 10,521,317, respectively

8,860 8,805 8,785   Additional paid in capital 21,159 19,953 19,588   Retained earnings 90,026 81,385 79,048   Accumulated other comprehensive income (loss), net 1,286 (1,005 ) 208           Total shareholders' equity   121,331     109,138     107,629             Total liabilities and shareholders' equity $ 1,362,838   $ 1,178,548   $ 1,118,229                                     Access National Corporation Consolidated Statement of Operations                   Three Months Ended Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 (In Thousands Except for Share and Per Share Data)   (unaudited)   (unaudited)   INTEREST INCOME Interest and fees on loans $ 11,647 $ 10,254 $ 33,877 $ 29,659   Interest on federal funds sold and bank balances 98 34 264 95   Interest and dividends on securities   1,033   868   2,954   2,465 Total interest income 12,778 11,156 37,095 32,219   INTEREST EXPENSE Interest on deposits 1,349 990 3,774 2,590   Interest on other borrowings   286   69   867   283 Total interest expense   1,635   1,059   4,641   2,873 Net interest income 11,143 10,097 32,454 29,346   Provision for loan losses   750   -   870   150 Net interest income after provision for loan losses 10,393 10,097 31,584 29,196   NONINTEREST INCOME Service charges and fees 249 236 748 651   Gain on sale of loans 8,316 5,834 19,419 15,110   Other Income   120   342   4,510   4,037 Total noninterest income 8,685 6,412 24,677 19,798   NONINTEREST EXPENSE Salaries and benefits 8,208 6,703 24,283 20,419   Occupancy and equipment 768 751 2,278 2,247   Other operating expense   3,193   3,025   9,040   8,713 Total noninterest expense   12,169   10,479   35,601   31,379 Income before income tax 6,909 6,030 20,660 17,615   Income tax expense   2,484   2,086   7,262   6,114 NET INCOME   4,425   3,944   13,398   11,501   Earnings per common share: Basic $ 0.42 $ 0.37 $ 1.27 $ 1.09 Diluted $ 0.41 $ 0.37 $ 1.26 $ 1.09   Average outstanding shares: Basic 10,595,599 10,519,954 10,575,088 10,504,086 Diluted 10,689,167 10,593,415 10,644,897 10,567,173                             Performance and Capital Ratios               Three Months Three Months Nine Months Nine Months Twelve Months Ended Ended Ended Ended Ended September 30, June 30, September 30, September 30, December 31, (Dollars In Thousands Except for Share and Per Share Data)     2016     2016     2016     2015     2015     Return on average assets (annualized) 1.34 % 1.54 % 1.41 % 1.40 % 1.39 % Return on average equity (annualized) 14.92 % 17.00 % 15.56 % 14.94 % 14.83 % Net interest margin 3.49 % 3.51 % 3.54 % 3.69 % 3.68 % Efficiency ratio - Bank only 50.16 % 50.10 % 50.48 % 50.02 % 50.41 % Total average equity to earning assets 9.30 % 9.36 % 9.38 % 9.69 % 9.67 % Tangible common equity ratio 8.78 % 8.94 % 8.78 % 9.50 % 9.12 %   Averages Assets $ 1,324,511 $ 1,268,504 $ 1,267,482 $ 1,096,088 $ 1,112,470 Loans held for investment 947,622 915,218 922,821 810,096 824,288 Loans held for sale 63,667 45,357 47,935 45,903 42,076 Interest-bearing deposits & federal funds sold 72,680 84,008 69,860 53,402 52,716 Investment securities 194,131 182,751 184,479 149,664 156,010 Earning assets 1,275,763 1,225,910 1,223,798 1,059,232 1,075,284 Interest-bearing deposits 676,841 657,363 648,844 545,702 563,112 Total deposits 1,067,838 1,005,419 998,183 842,192 866,695 Repurchase agreements & federal funds purchased 14,881 13,981 15,433 22,373 22,017 FHLB short term borrowings 38,043 51,154 58,467 113,469 91,992 FHLB long-term borrowings 75,000 74,341 71,332 6,886 18,890 Equity $ 118,654 $ 114,748 $ 114,838 $ 102,642 $ 103,948   Allowance for loan losses/loans held for investment 1.52 % 1.47 % 1.52 % 1.59 % 1.53 % Total NPA $ 5,845 $ 1,866 $ 5,845 $ 6,616 $ 7,417 NPA to total assets 0.43 % 0.14 % 0.43 % 0.59 % 0.63 %   Mortgage loan originations and brokered loans $ 168,774 $ 154,022 $ 429,418 $ 379,752 $ 484,747 Gain on sale of mortgage loans net hedging activity $ 7,122 $ 6,579 $ 16,936 $ 14,237 $ 18,528 Allowance for losses on mortgage loans sold $ 1,029 $ 1,029 $ 1,029 $ 1,179 $ 1,029   Wealth Management segment - assets under management $ 655,000 $ 625,000 $ 655,000 $ 508,000 $ 611,000   Book value per common share $ 11.44 $ 11.19 $ 11.44 $ 10.23 $ 10.35                                                   Composition of Loan Portfolio                                       September 30, 2016   June 30, 2016   December 31, 2015   September 30, 2015 (Dollars In Thousands)   Amount   Percentage of Total   Amount   Percentage of Total   Amount   Percentage of Total   Amount   Percentage of Total   Commercial real estate - owner occupied $ 238,224 24.65 % $ 235,735 25.01 % $ 219,877 24.77 % $ 223,801 26.36 % Commercial real estate - non-owner occupied 174,342 18.04 153,206 16.25 147,580 16.63 137,081 16.15 Residential real estate 202,605 20.96 208,311 22.10 201,447 22.70 196,580 23.15 Commercial 264,794 27.40 257,139 27.28 242,527 27.33 225,147 26.52 Real estate construction 79,621 8.24 79,200 8.39 66,003 7.44 57,664 6.79 Consumer   6,959   0.71     9,138   0.97     10,044   1.13     8,764   1.03   Total loans $ 966,545 100.00 % $ 942,729 100.00 % $ 887,478 100.00 % $ 849,037 100.00 % Less allowance for loan losses   14,696   13,834   13,563   13,474 $ 951,849 $ 928,895 $ 873,915 $ 835,563                                                           Composition of Deposits                                       September 30, 2016   June 30, 2016   December 31, 2015   September 30, 2015 (Dollars In Thousands)   Amount   Percentage of Total   Amount   Percentage of Total   Amount   Percentage of Total   Amount   Percentage of Total   Demand deposits $ 409,558 36.73 % $ 392,269 37.55 % $ 307,797 33.69 % $ 334,225 35.88 % Interest-bearing demand deposits 124,856 11.20 123,638 11.84 127,980 14.00 120,400 12.93 Savings and money market 265,308 23.79 206,566 19.78 150,021 16.42 141,953 15.24 CDARS time deposits 36,948 3.31 53,212 5.09 73,017 7.99 67,213 7.22 CDARS/ICS non-maturity deposits 46,156 4.14 35,247 3.37 15,517 1.70 15,501 1.66 Brokered deposits 68,483 6.14 69,139 6.62 103,390 11.31 117,598 12.63 Time deposits   163,744   14.69       164,474   15.75       136,022   14.89       134,545   14.44   Total Deposits $ 1,115,053   100.00 %   $ 1,044,545   100.00 %   $ 913,744   100.00 %   $ 931,435   100.00 %                                                           Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities Three Months Ended                                     September 30, 2016   September 30, 2015 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)   Balance   Expense   Rate   Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 191,794 $ 1,033 2.15 % $ 159,450 $ 868 2.18 % Loans held for sale 63,667 574 3.61 % 40,465 417 4.12 % Loans(1) 947,622 11,073 4.67 % 833,341 9,837 4.72 % Interest-bearing balances and federal funds sold   72,680       98   0.54 %   59,216       34   0.23 % Total interest-earning assets 1,275,763 12,778 4.01 % 1,092,472 11,156 4.08 % Noninterest-earning assets: Cash and due from banks 13,251 10,765 Premises, land and equipment 6,819 6,893 Other assets 42,642 32,470 Less: allowance for loan losses   (13,964 )   (13,526 ) Total noninterest-earning assets   48,748     36,602   Total Assets $ 1,324,511   $ 1,129,074     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 137,387 $ 127 0.37 % $ 112,776 $ 63 0.22 % Money market deposit accounts 224,548 257 0.46 % 141,821 74 0.21 % Savings accounts 37,892 47 0.50 % 14,845 20 0.54 % Time deposits   277,014       918   1.33 %   331,412       833   1.01 % Total interest-bearing deposits 676,841 1,349 0.80 % 600,854 990 0.66 % Borrowings: FHLB short-term borrowings 38,043 69 0.73 % 58,207 32 0.22 % Securities sold under agreements to repurchase and federal funds purchased 14,881 4 0.11 % 21,928 5 0.09 % FHLB long-term borrowings   75,000       213   1.14 %   10,000       32   1.28 % Total borrowings   127,924       286   0.89 %   90,135       69   0.31 % Total interest-bearing deposits and borrowings 804,765 1,635 0.81 % 690,989 1,059 0.61 % Noninterest-bearing liabilities: Demand deposits 390,997 324,763 Other liabilities   10,095     8,753   Total liabilities 1,205,857 1,024,505 Shareholders' Equity   118,654     104,569   Total Liabilities and Shareholders' Equity $ 1,324,511   $ 1,129,074     Interest Spread(2) 3.19 % 3.47 %   Net Interest Margin(3) $ 11,143   3.49 % $ 10,097   3.70 %        

(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 Nine Months Ended                                           September 30, 2016   September 30, 2015 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)   Balance   Expense   Rate   Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 183,182 $ 2,954 2.15 % $ 149,831 $ 2,465 2.19 % Loans held for sale 47,935 1,355 3.77 % 45,903 1,343 3.90 % Loans(1) 922,821 32,522 4.70 % 810,096 28,316 4.66 % Interest-bearing balances and federal funds sold   69,860       264   0.50 %   53,402       95   0.24 % Total interest-earning assets 1,223,798 37,095 4.04 % 1,059,232 32,219 4.06 % Noninterest-earning assets: Cash and due from banks 12,493 10,642 Premises, land and equipment 6,782 6,921 Other assets 38,142 32,731 Less: allowance for loan losses   (13,733 )   (13,438 ) Total noninterest-earning assets   43,684     36,856   Total Assets $ 1,267,482   $ 1,096,088     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 131,859 $ 360 0.36 % $ 114,885 $ 190 0.22 % Money market deposit accounts 185,839 522 0.37 % 121,478 183 0.20 % Savings accounts 35,047 137 0.52 % 10,956 37 0.45 % Time deposits   296,099       2,755   1.24 %   298,383       2,180   0.97 % Total interest-bearing deposits 648,844 3,774 0.78 % 545,702 2,590 0.63 % Borrowings: FHLB short-term borrowings 58,467 280 0.64 % 113,469 203 0.24 % Securities sold under agreements to repurchase and federal funds purchased 15,433 11 0.10 % 22,373 16 0.10 % FHLB long-term borrowings   71,332       576   1.08 %   6,886       64   1.24 % Total borrowings   145,232       867   0.80 %   142,728       283   0.26 % Total interest-bearing deposits and borrowings 794,076 4,641 0.78 % 688,430 2,873 0.56 % Noninterest-bearing liabilities: Demand deposits 349,339 296,490 Other liabilities   9,229     8,526   Total liabilities 1,152,644 993,446 Shareholders' Equity   114,838     102,642   Total Liabilities and Shareholders' Equity $ 1,267,482   $ 1,096,088     Interest Spread(2) 3.26 % 3.50 %   Net Interest Margin(3) $ 32,454   3.54 % $ 29,346   3.69 %        

(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 September 30, 2016   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 12,531 $ 574 $ - $ 5 $ (332 ) $ 12,778 Gain on sale of loans - 8,316 - - - 8,316 Other revenues   682   (1,060 )   773     289     (315 )   369 Total revenues   13,213   7,830     773     294     (647 )   21,463   Expenses: Interest expense 1,640 261 - 66 (332 ) 1,635 Salaries and employee benefits 3,977 3,664 567 - - 8,208 Other expenses   2,578   1,491     233     724     (315 )   4,711 Total operating expenses   8,195   5,416     800     790     (647 )   14,554   Income (loss) before income taxes $ 5,018 $ 2,414   $ (27 ) $ (496 ) $ -   $ 6,909   Total assets $ 1,290,518   $ 74,195     $ 2,894     $ 18,420     $ (23,189 ) $ 1,362,838     Three Months Ended Commercial Mortgage Wealth Consolidated September 30, 2015   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 10,909 $ 417 $ - $ 3 $ (173 ) $ 11,156 Gain on sale of loans - 5,834 - - - 5,834 Other revenues   809   (954 )   701     337     (315 )   578 Total revenues   11,718   5,297     701     340     (488 )   17,568   Expenses: Interest expense 1,063 98 - 71 (173 ) 1,059 Salaries and employee benefits 3,533 2,706 464 - - 6,703 Other expenses   1,894   1,294     273     630     (315 )   3,776 Total operating expenses   6,490   4,098     737     701     (488 )   11,538   Income (loss) before income taxes $ 5,228 $ 1,199   $ (36 ) $ (361 ) $ -   $ 6,030   Total assets $ 1,081,026 $ 38,246   $ 1,228   $ 16,386   $ (18,657 ) $ 1,118,229             Nine Months Ended Commercial Mortgage Wealth Consolidated September 30, 2016   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 36,379 $ 1,355 $ - $ 15 $ (654 ) $ 37,095 Gain on sale of loans - 19,419 - - - 19,419 Other revenues   2,908   53   2,269     978     (950 )   5,258 Total revenues   39,287   20,827   2,269     993     (1,604 )   61,772   Expenses: Interest expense 4,656 439 - 200 (654 ) 4,641 Salaries and employee benefits 12,065 10,563 1,655 - - 24,283 Other expenses   6,285   4,127   783     1,943     (950 )   12,188 Total operating expenses   23,006   15,129   2,438     2,143     (1,604 )   41,112   Income (loss) before income taxes $ 16,281 $ 5,698 $ (169 ) $ (1,150 ) $ -   $ 20,660   Total assets $ 1,290,518   $ 74,195   $ 2,894     $ 18,420     $ (23,189 ) $ 1,362,838     Nine Months Ended Commercial Mortgage Wealth Consolidated September 30, 2015   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 31,522 $ 1,343 $ - $ 10 $ (656 ) $ 32,219 Gain on sale of loans - 15,110 - - - 15,110 Other revenues   2,260   392   1,925     1,043     (932 )   4,688 Total revenues   33,782   16,845   1,925     1,053     (1,588 )   52,017   Expenses: Interest expense 2,884 434 - 211 (656 ) 2,873 Salaries and employee benefits 10,028 8,914 1,477 - - 20,419 Other expenses   5,578   3,903   740     1,821     (932 )   11,110 Total operating expenses   18,490   13,251   2,217     2,032     (1,588 )   34,402   Income (loss) before income taxes $ 15,292 $ 3,594 $ (292 ) $ (979 ) $ -   $ 17,615   Total assets $ 1,081,026 $ 38,246 $ 1,228   $ 16,386   $ (18,657 ) $ 1,118,229

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Access National CorporationMichael Clarke, 703-871-2100