ANCX Access National Corp.

Access National Corporation (NASDAQ: ANCX) (the “Corporation” or “Access”), parent company for Access National Bank (Bank), reported fourth quarter 2016 net income of $3.0 million, or $0.28 per common share. This represents the Corporation’s 66th consecutive quarterly profit over its 68 quarter history. Consistent with management’s stated objective of a 40%-50% dividend payout ratio against core earnings, the Board of Directors declared a cash dividend of $0.15 per share for common shareholders of record as of February 3, 2017 and payable on February 24, 2017. This quarterly dividend continues to affirm management’s favorable outlook on forward earnings and capital adequacy even after consideration of its upcoming merger with Middleburg Financial Corporation (“Middleburg”).

Highlights

• Strategic merger with Middleburg announced October 24, 2016, on track to close during second quarter 2017;
• Reported earnings reflect $864 thousand in merger related costs;
• Book value per common share grew 9.5% to $11.33 at December 31, 2016 when compared to $10.35 at December 31, 2015;
• Loans held for investment grew $83.2 million or 34.4% on an annualized basis, surpassing the $1 billion dollar threshold; and
• Demand deposits account for 34.3% of total deposits at December 31, 2016, while wholesale funding was reduced by $19.0 million from third quarter 2016.

Due mainly to merger related costs of $864 thousand, fourth quarter 2016 pretax earnings declined $1.0 million or 17.3% when compared to fourth quarter 2015 pretax earnings. An increase of $459 thousand in the commercial banking segment’s salaries and employee benefits due to expansion was offset by reductions in other expenses not related to the provision that had been elevated the prior year due to enhancements in the Bank’s online banking platform. The mortgage segment’s pretax earnings increase of $313 thousand over fourth 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 3.63% to 3.46% when comparing fourth quarter 2015 to fourth quarter 2016. On a linked quarter basis, the margin decreased from 3.49% for the three months ended September 30, 2016 when compared to 3.46% for the three months ended December 31, 2016.

On a consolidated basis, the Corporation reported a return on average assets of 1.27% and a return on average equity of 14.11% for the year even after consideration of the merger related costs that impacted fourth quarter 2016 annualized return on average assets and average equity. Annualized, the fourth quarter return on average assets was 0.89% for the three month period ended December 31, 2016, while the annualized return on average equity was 9.97% for the three month period ended December 31, 2016.

Total assets were $1.4 billion at December 31, 2016 and grew $252.2 million when compared to December 31, 2015. The $252.2 million growth in assets since December 31, 2015 was due mainly to an increase in loans held for investment of $162.2 million, a $57.3 million increase in interest-bearing balances, a $28.8 million increase in investment securities, and a $13.6 million increase in other assets which was largely due to an increase in bank owned life insurance of $10.6 million. Total loans held for investment surpassed $1 billion for the first time as commercial loans grew 18.3% year over year and remain the largest portfolio segment. The growth in the loan portfolio as well as increased allowance for non-performing assets (“NPAs”) from the linked quarter was responsible for the increase of $1.3 million in the provision for loan loss.

Total deposits at December 31, 2016 were $1.1 billion, an increase of $140.6 million when compared to December 31, 2015. At December 31, 2016, non-interest bearing deposits were $362.0 million, an increase of $54.2 million when compared to December 31, 2015. Although down on a linked quarter basis due to normal seasonality, non-interest bearing deposits grew 17.6% on a year over year basis. Interest-bearing deposits increased to $692.3 million at December 31, 2016, an increase of $86.3 million since December 31, 2015. A targeted marketing campaign continues to propel growth in this category which saw a year-over-year increase in savings and money market accounts of $120.3 million and an increase in non-brokered time deposits of $27.2 million. These increases were partially offset by a $59.3 million reduction in wholesale funding when comparing December 31, 2016 to December 31, 2015.

NPAs decreased to $6.9 million at December 31, 2016 from $7.4 million at December 31, 2015, representing 0.48% and 0.63% of total assets, respectively. The allowance for loan loss was $16.0 million and $13.6 million at December 31, 2016 and December 31, 2015, respectively, and represented 1.53% of total loans held for investment at December 31, 2016 and 2015, respectively.

Book value per common share increased from $10.35 at December 31, 2015 to $11.33 at December 31, 2016. The tangible common equity ratio for Access National Corporation and its subsidiary bank was 8.31% at December 31, 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".

About the Proposed Transaction and Where to Find It

As previously disclosed, Access and Middleburg have entered into an Agreement and Plan of Reorganization (the "Merger Agreement") pursuant to which Middleburg will merge with and into Access (the "Merger"). Access will be the surviving corporation in the Merger.

Investors are urged to review carefully and consider all public filings by Access and Middleburg with the Securities and Exchange Commission (the "SEC"), including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Quarterly Reports on Form 10-Q, and their Current Reports on Form 8-K. The documents filed with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. The documents filed by Access with the SEC may also be obtained free of charge at Access's website at www.accessnationalbank.com or by requesting them in writing to Access National Corporation, 1800 Robert Fulton Drive, Suite 300, Reston, Virginia 20191, Attention: Investor Relations. The documents filed by Middleburg with the SEC may also be obtained free of charge at Middleburg's website at www.middleburgbank.com or by requesting them in writing to Middleburg Financial Corporation, 111 West Washington Street, Middleburg, Virginia 20117, Attention: Investor Relations.

In connection with the Merger, Access has filed a registration statement on Form S-4 with the SEC which includes a preliminary joint proxy statement of Access and Middleburg and a preliminary prospectus of Access. A definitive joint proxy statement/prospectus will be sent to the shareholders of each company seeking the required shareholder approvals. Before making any voting or investment decision, investors and security holders of Access and Middleburg are urged to read carefully the entire definitive registration statement and definitive joint proxy statement/prospectus when they become available, including any amendments thereto, because they will contain important information about the proposed transaction. Information in this release is not a substitute for the registration statement or the joint proxy statement/prospectus. Free copies of these documents may be obtained as described above.

Access, Middleburg and certain of their directors and executive officers may be deemed participants in the solicitation of proxies from Access and Middleburg shareholders in connection with the proposed transaction. Information about the directors and officers of Access and their ownership of Access common stock is set forth in the definitive proxy statement for Access's 2016 annual meeting of shareholders, as previously filed with the SEC on April 18, 2016. Information about the directors and officers of Middleburg and their ownership of Middleburg common stock is set forth in the definitive proxy statement for Middleburg's 2016 annual meeting of shareholders, as previously filed with the SEC on April 12, 2016. Investors may obtain additional information regarding the interests of such participants by reading the definitive registration statement and the definitive joint proxy statement/prospectus when they become available. Free copies of these documents may be obtained as described above.

Forward-Looking Statements

The information presented herein contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding expectations or predictions of future financial or business performance or conditions. Forward-looking statements may be identified by words such as "may," "could," "will," "expect," "believe," "anticipate," "forecast," "intend," "plan," "prospects," "estimate," "potential," or by variations of such words or by similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties which change over time. Forward-looking statements in this report (including in the exhibits hereto) may include, but are not limited to, statements about project impacts of and financial results generated by the transaction. Forward-looking statements speak only as of the date they are made and Access assumes no duty to update forward-looking statements.

In addition to factors previously disclosed in Access's and Middleburg's reports filed with the SEC and those identified elsewhere in this release, the following factors, among others, could cause actual results to differ materially from the results expressed in or implied by forward-looking statements and historical performance: ability to obtain regulatory approvals and meet other closing conditions to the Merger; delays in closing the Merger; changes in asset quality and credit risk; changes in interest rates and capital markets; the introduction, timing and success of business initiatives; competitive conditions; and the inability to recognize cost savings or revenues or to implement integration plans associated with the Merger.

    Access National Corporation Consolidated Balance Sheet           December 31, December 31, 2016 2015 (In Thousands Except for Share and Per Share Data)   (Unaudited)       ASSETS  

Cash and due from banks

$ 9,186 $ 11,291   Interest-bearing balances and federal funds sold 81,873 24,598   Investment securities: Available-for-sale, at fair value 194,090 160,162 Held-to-maturity, at amortized cost (fair value of $9,475 and $14,314, respectively)   9,200     14,287   Total investment securities 203,290 174,449   Restricted Stock, at amortized cost 10,092 7,259   Loans held for sale - at fair value 35,676 44,135  

Loans held for investment net of allowance for loan losses of $16,008 and $13,563, respectively

1,033,690 873,915   Premises, equipment and land, net 7,084 6,689   Other assets 49,817 36,212     Total assets $ 1,430,708   $ 1,178,548     LIABILITIES AND SHAREHOLDERS' EQUITY   LIABILITIES Noninterest-bearing deposits $ 362,036 $ 307,797   Savings and interest-bearing deposits 440,585 293,711   Time deposits   251,706     312,236     Total deposits 1,054,327 913,744   Short-term borrowings 186,009 91,129   Long-term borrowings 60,000 55,000   Other liabilities and accrued expenses 9,842 9,537     Total Liabilities   1,310,178     1,069,410     SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,636,242 and 10,544,751, respectively

8,881 8,805   Additional paid in capital 21,779 19,953   Retained earnings 91,439 81,385   Accumulated other comprehensive loss, net (1,569 ) (1,005 )     Total shareholders' equity   120,530     109,138       Total liabilities and shareholders' equity $ 1,430,708   $ 1,178,548                       Access National Corporation Consolidated Statement of Operations                   Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In Thousands Except for Share and Per Share Data)   (unaudited)   (unaudited)       INTEREST INCOME Interest and fees on loans $ 11,762 $ 10,396 $ 45,639 $ 40,055   Interest on federal funds sold and bank balances 73 34 337 129   Interest and dividends on securities   1,085   1,017   4,039   3,482 Total interest income 12,920 11,447 50,015 43,666   INTEREST EXPENSE Interest on deposits 1,376 1,058 5,150 3,648   Interest on other borrowings   287   188   1,154   471 Total interest expense   1,663   1,246   6,304   4,119 Net interest income 11,257 10,201 43,711 39,547   Provision for loan losses   1,250   -   2,120   150 Net interest income after provision for loan losses 10,007 10,201 41,591 39,397   NONINTEREST INCOME Service charges and fees 223 252 971 903   Gain on sale of loans 5,745 4,523 25,164 19,633   Other Income   1,158   1,492   5,668   5,529 Total noninterest income 7,126 6,267 31,803 26,065   NONINTEREST EXPENSE Salaries and benefits 7,495 6,547 31,778 26,966   Occupancy and equipment 766 793 3,044 3,040   Other operating expense   3,928   3,147   12,968   11,860 Total noninterest expense   12,189   10,487   47,790   41,866 Income before income tax 4,944 5,981 25,604 23,596   Income tax expense   1,938   2,063   9,200   8,177 NET INCOME   3,006   3,918   16,404   15,419   Earnings per common share: Basic $ 0.28 $ 0.37 $ 1.55 $ 1.46 Diluted $ 0.28 $ 0.37 $ 1.54 $ 1.46   Average outstanding shares: Basic 10,620,312 10,539,772 10,586,394 10,513,008 Diluted 10,775,553 10,625,967 10,677,561 10,581,871                                 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 Except for Share and Per Share Data)   2016   2016   2016   2016   2016   2015   Return on average assets (annualized) 0.89 % 1.34 % 1.54 % 1.35 % 1.27 % 1.39 % Return on average equity (annualized) 9.97 % 14.92 % 17.00 % 14.75 % 14.11 % 14.83 % Net interest margin 3.46 % 3.49 % 3.51 % 3.61 % 3.52 % 3.68 % Efficiency ratio - Bank only 47.06 % 50.16 % 50.10 % 51.20 % 49.59 % 50.41 % Total average equity to earning assets 9.28 % 9.30 % 9.36 % 9.50 % 9.36 % 9.67 % Tangible common equity ratio 8.31 % 8.78 % 8.94 % 9.23 % 8.31 % 9.12 %   Averages Assets $ 1,351,622 $ 1,324,511 $ 1,268,504 $ 1,208,864 $ 1,288,582 $ 1,112,470 Loans held for investment 990,517 947,622 915,218 905,382 939,837 824,288 Loans held for sale 44,454 63,667 45,357 34,607 47,060 42,076 Interest-bearing deposits & federal funds sold 60,300 72,680 84,008 52,862 67,457 52,716 Investment securities 204,794 194,131 182,751 176,448 189,585 156,010 Earning assets 1,299,883 1,275,763 1,225,910 1,169,183 1,242,923 1,075,284 Interest-bearing deposits 702,260 676,841 657,363 612,021 662,271 563,112 Total deposits 1,091,431 1,067,838 1,005,419 920,528 1,021,624 866,695 Repurchase agreements & federal funds purchased 18,765 14,881 13,981 17,442 16,270 22,017 FHLB short term borrowings 50,728 38,043 51,154 86,429 56,522 91,992 FHLB long-term borrowings 60,163 75,000 74,341 64,615 68,525 18,890 Equity $ 120,641 $ 118,654 $ 114,748 $ 111,068 $ 116,296 $ 103,948   Allowance for loan losses/loans held for investment 1.53 % 1.52 % 1.47 % 1.49 % 1.53 % 1.53 % Total NPA $ 6,922 $ 5,845 $ 1,866 $ 7,349 $ 6,922 $ 7,417 NPA to total assets 0.48 % 0.43 % 0.14 % 0.60 % 0.48 % 0.63 %   Mortgage loan originations and brokered loans $ 115,448 $ 168,774 $ 154,022 $ 106,622 $ 544,866 $ 484,747 Gain on sale of mortgage loans net hedging activity $ 6,899 $ 7,122 $ 6,579 $ 3,235 $ 23,835 $ 18,528 Allowance for losses on mortgage loans sold $ 1,029 $ 1,029 $ 1,029 $ 1,029 $ 1,029 $ 1,029   Wealth Management segment - assets under management $ 667,300 $ 655,000 $ 625,000 $ 611,000 $ 667,300 $ 611,000   Book value per common share $ 11.33 $ 11.44 $ 11.19 $ 10.79 $ 11.33 $ 10.35                                                                         Composition of Loan Portfolio                                               December 31, 2016   September 30, 2016   June 30, 2016   March 31, 2016   December 31, 2015

 

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  Commercial real estate - owner occupied $ 250,440 23.87 % $ 238,224 24.65 % $ 235,735 25.01 % $ 217,954 23.83 % $ 219,877 24.77 % Commercial real estate - non-owner occupied 184,688 17.59 174,342 18.04 153,206 16.25 153,433 16.77 147,580 16.63 Residential real estate 204,413 19.47 202,605 20.96 208,311 22.10 202,858 22.18 201,447 22.70 Commercial 311,486 29.67 264,794 27.40 257,139 27.28 258,520 28.26 242,527 27.33 Real estate construction 91,822 8.75 79,621 8.24 79,200 8.39 72,055 7.88 66,003 7.44 Consumer   6,849   0.65     6,959   0.71     9,138   0.97     9,862   1.08     10,044   1.13   Total loans $ 1,049,698 100.00 % $ 966,545 100.00 % $ 942,729 100.00 % $ 914,682 100.00 % $ 887,478 100.00 % Less allowance for loan losses   16,008   14,696   13,834   13,614   13,563 $ 1,033,690 $ 951,849 $ 928,895 $ 901,068 $ 873,915                                                               Composition of Deposits                                               December 31, 2016   September 30, 2016   June 30, 2016   March 31, 2016   December 31, 2015

 

 

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  Amount   Total   Demand deposits $ 362,036 34.34 % $ 409,558 36.73 % $ 392,269 37.55 % $ 335,219 34.90 % $ 307,797 33.69 % Interest-bearing demand deposits 126,189 11.97 124,856 11.20 123,638 11.84 123,876 12.90 127,980 14.00 Savings and money market 270,310 25.64 265,308 23.79 206,566 19.78 149,679 15.59 150,021 16.42 CDARS time deposits 34,290 3.25 36,948 3.31 53,212 5.09 67,540 7.03 73,017 7.99 CDARS/ICS non-maturity deposits 40,925 3.88 46,156 4.14 35,247 3.37 35,238 3.67 15,517 1.70 Brokered deposits 57,389 5.44 68,483 6.14 69,139 6.62 106,150 11.05 103,390 11.31 Time deposits   163,188   15.48       163,744   14.69       164,474   15.75       142,755   14.86       136,022   14.89   Total Deposits $ 1,054,327   100.00 %   $ 1,115,053   100.00 %   $ 1,044,545   100.00 %   $ 960,457   100.00 %   $ 913,744   100.00 %                                              

Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities

Three Months Ended

                                December 31, 2016     December 31, 2015   Average   Income /   Yield /     Average   Income /   Yield / (Dollars In Thousands)   Balance   Expense   Rate     Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 204,612 $ 1,085 2.12 % $ 175,116 $ 1,017 2.32 % Loans held for sale 44,454 412 3.71 % 30,719 307 4.00 % Loans(1) 990,517 11,350 4.58 % 866,402 10,089 4.66 % Interest-bearing balances and federal funds sold   60,300       73   0.48 %   50,678       34   0.27 % Total interest-earning assets 1,299,883 12,920 3.98 % 1,122,915 11,447 4.08 % Noninterest-earning assets: Cash and due from banks 13,442 10,673 Premises, land and equipment 6,989 6,769 Other assets 46,418 34,233 Less: allowance for loan losses   (15,110 )   (13,510 ) Total noninterest-earning assets   51,739     38,165   Total Assets $ 1,351,622   $ 1,161,080     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 135,342 $ 126 0.37 % $ 134,115 $ 75 0.22 % Money market deposit accounts 261,656 324 0.50 % 142,792 81 0.23 % Savings accounts 46,596 59 0.51 % 21,469 29 0.54 % Time deposits   258,666       867   1.34 %   316,399       873   1.10 % Total interest-bearing deposits 702,260 1,376 0.78 % 614,775 1,058 0.69 % Borrowings: FHLB short-term borrowings 50,728 106 0.84 % 28,261 28 0.40 % Securities sold under agreements to repurchase and federal funds purchased 18,765 5 0.11 % 20,961 5 0.10 % FHLB long-term borrowings   60,163       176   1.17 %   54,511       155   1.14 % Total borrowings   129,656       287   0.89 %   103,733       188   0.72 % Total interest-bearing deposits and borrowings 831,916 1,663 0.80 % 718,508 1,246 0.69 % Noninterest-bearing liabilities: Demand deposits 389,171 324,628 Other liabilities   9,894     10,121   Total liabilities 1,230,981 1,053,257 Shareholders' Equity   120,641     107,823   Total Liabilities and Shareholders' Equity $ 1,351,622   $ 1,161,080     Interest Spread(2) 3.18 % 3.38 %   Net Interest Margin(3) $ 11,257   3.46 % $ 10,201   3.63 %          

(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, 2016       December 31, 2015 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)   Balance   Expense   Rate       Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 188,569 $ 4,039 2.14 % $ 156,204 $ 3,482 2.23 % Loans held for sale 47,060 1,767 3.75 % 42,076 1,650 3.92 % Loans(1) 939,837 43,872 4.67 % 824,288 38,405 4.66 % Interest-bearing balances and federal funds sold   67,457       337   0.50 %   52,716       129   0.24 % Total interest-earning assets 1,242,923 50,015 4.02 % 1,075,284 43,666 4.06 % Noninterest-earning assets: Cash and due from banks 12,732 10,650 Premises, land and equipment 6,834 6,882 Other assets 40,172 33,110 Less: allowance for loan losses   (14,079 )   (13,456 )

Total noninterest-earning assets

  45,659     37,186   Total Assets $ 1,288,582   $ 1,112,470     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 132,734 $ 486 0.37 % $ 119,732 $ 265 0.22 % Money market deposit accounts 204,897 846 0.41 % 126,850 264 0.21 % Savings accounts 37,950 196 0.52 % 13,606 66 0.49 % Time deposits   286,690       3,622   1.26 %   302,924       3,053   1.01 % Total interest-bearing deposits 662,271 5,150 0.78 % 563,112 3,648 0.65 % Borrowings: FHLB short-term borrowings 56,522 386 0.68 % 91,992 231 0.25 % Securities sold under agreements to repurchase and federal funds purchased 16,270 16 0.10 % 22,017 21 0.10 % FHLB long-term borrowings   68,525       752   1.10 %   18,890       219   1.16 % Total borrowings   141,317       1,154   0.82 %   132,899       471   0.35 % Total interest-bearing deposits and borrowings 803,588 6,304 0.78 % 696,011 4,119 0.59 % Noninterest-bearing liabilities: Demand deposits 359,352 303,583 Other liabilities   9,346     8,928   Total liabilities 1,172,286 1,008,522 Shareholders' Equity   116,296     103,948   Total Liabilities and Shareholders' Equity $ 1,288,582   $ 1,112,470     Interest Spread(2) 3.24 % 3.47 %   Net Interest Margin(3) $ 43,711   3.52 % $ 39,547   3.68 %          

(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, 2016   Banking   Banking   Management   Other   Eliminations   Totals (In Thousands) Revenues: Interest income $ 12,684 $ 412 $ - $ 5 $ (181 ) $ 12,920 Gain on sale of loans - 5,745 - - - 5,745 Other revenues   985   (477 )   765     423     (315 )   1,381 Total revenues   13,669   5,680     765     428     (496 )   20,046   Expenses: Interest expense 1,668 109 - 67 (181 ) 1,663 Salaries and employee benefits 3,950 2,978 567 - - 7,495 Other expenses   2,947   1,227     251     1,834     (315 )   5,944 Total operating expenses   8,565   4,314     818     1,901     (496 )   15,102   Income (loss) before income taxes $ 5,104 $ 1,366   $ (53 ) $ (1,473 ) $ -   $ 4,944   Total assets $ 1,394,061   $ 39,356     $ 2,841     $ 18,037     $ (23,587 ) $ 1,430,708     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                             Segment Reporting                                     Twelve Months Ended Commercial Mortgage Wealth Consolidated December 31, 2016   Banking   Banking   Management   Other   Eliminations   Totals (In Thousands) Revenues: Interest income $ 49,063 $ 1,767 $ - $ 20 $ (835 ) $ 50,015 Gain on sale of loans - 25,164 - - - $ 25,164 Other revenues   3,893   (424 )   3,034     1,401     (1,265 )   6,639 Total revenues   52,956   26,507     3,034     1,421     (2,100 )   81,818   Expenses: Interest expense 6,324 548 - 267 (835 ) 6,304 Salaries and employee benefits 16,015 13,541 2,222 - - 31,778 Other expenses   9,232   5,354     1,034     3,777     (1,265 )   18,132 Total operating expenses   31,571   19,443     3,256     4,044     (2,100 )   56,214   Income (loss) before income taxes $ 21,385 $ 7,064   $ (222 ) $ (2,623 ) $ -   $ 25,604   Total assets $ 1,394,061   $ 39,356     $ 2,841     $ 18,037     $ (23,587 ) $ 1,430,708     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  

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Access National CorporationMichael Clarke, 703-871-2100