Access National Corporation (NASDAQ: ANCX) (the
“Corporation” or “Access”), parent company for Access National Bank
(the “Bank”) and Middleburg Investment Group, reported fourth
quarter 2018 net income of $8.7 million, or $0.41 per diluted
share. This represents the Corporation’s 74th consecutive quarterly
profit over its 76 quarter history. Due to the timing of the
pending merger with Union Bankshares (“Union”), the Access Board of
Directors did not declare a dividend for this reporting period.
On January 24, 2019, the Union Board of Directors declared a
$0.23 per share dividend for Union common shareholders of record as
of February 8, 2019 and payable on February 22, 2019. At the
exchange rate of 0.75 for Access shares to Union shares, which will
occur on February 1, 2019, the dividend to be paid equates to a
$0.1725 per share dividend for Access common shareholders.
Highlights
- All shareholder and regulatory
approvals are in place for the Union merger to close as expected in
February, 2019;
- For the three month period ended
December 31, 2018, net income increased 186.6% compared to the same
period of the prior year;
- Gross loans held for investment
increased $196.5 million during the twelve-month period ended
December 31, 2018, inclusive of a growth of $81.2 million in the
fourth quarter 2018;
- Customer deposits increased $26.6
million during the twelve month period ended December 31, 2018 to
$2.3 billion;
- Demand deposits of $1.2 billion at
December 31, 2018 comprised 53.3% of total deposits, inclusive of
$731.4 million of non-interest bearing demand deposits or 32.4% of
the deposit portfolio;
- Merger related expenses totaled $1.5
million during the fourth quarter of 2018 accounting for a $0.07
decrease in fourth quarter earnings per share; and
- Tangible book value1 per common share
was $12.88 at December 31, 2018, an increase of $1.36 from the
prior year ended December 31, 2017.
According to CEO Michael Clarke, “For the second consecutive
quarter, net loan growth exceeded our stated goal of annualized
growth of $200 million per annum. On a linked quarter basis, net
loans grew at an annualized pace of 15.5% compared to an annualized
rate of 22% in the period ended September 30, 2018. The exceptional
growth evidences the enthusiasm our relationship managers and their
clients have concerning our pending combination with Union.” Mr.
Clarke continued, “The convincing approval of the merger by our
shareholders on January 15, 2019 made an equally strong statement
concerning the anticipated benefits of investing with Union to
create Virginia’s regional bank.”
Gross loans held for investment increased $81.2 million during
the quarter to $2.2 billion at December 31, 2018 resulting in a
total growth of $196.5 million in 2018. As of December 31, 2018,
commercial and industrial loans as well as owner occupied
commercial real estate loans combined to account for 51.2% of the
loan portfolio, reflecting the Corporation’s continued focus on
lower-middle-market businesses. The Corporation’s priority focus
remains on expanding borrowers in these portfolios as a driver of
future growth in the loan portfolio, along with related core
deposits.
Noninterest-bearing deposits at December 31, 2018 were $731.4
million, a decrease of $13.5 million compared to December 31, 2017
and remain the largest and most attractive source of funding for
the Corporation, comprising 32.4% of the deposit portfolio. When
combined with interest-bearing demand deposit accounts, total
transaction accounts comprise 53.3% of the total deposit portfolio,
reducing reliance of non-core and more price sensitive funding.
Total deposits grew $26.6 million from December 31, 2017 to
December 31, 2018 ending the year at $2.3 billion.
The net interest margin on a fully tax equivalent (non-GAAP)
basis was 3.69% at December 31, 2018 compared to 3.88% at December
31, 2017. Net purchase mark accretion included in net interest
income was $504 thousand for the fourth quarter 2018 and $2.7
million for the year.
Non-performing assets (“NPAs”) increased to $7.1 million at
December 31, 2018 from $6.1 million at September 30, 2018,
representing 0.23% and 0.20% of total assets, respectively.
Included in the NPA total is $585 thousand in other real estate
owned. The provision for loan loss was $1.5 million during the
fourth quarter 2018 and was due mainly to the growth in the loan
portfolio. The allowance for loan loss represented 0.84% of total
loans held for investment at December 31, 2018.
Tangible book value2 per common share increased to $12.88 at
December 31, 2018 from $12.33 at September 30, 2018 and $11.52 at
December 31, 2017. The tangible common equity ratio for Access
National Corporation and its subsidiary bank was 9.51% at December
31, 2018, at the top of the Corporation’s target range of 8.50% to
9.50%.
Access National Corporation is the parent company of Access
National Bank and Middleburg Investment Group serving Northern and
Central Virginia. 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".
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, projections, predictions,
expectations, or beliefs about future events or results and are not
statements of historical fact. Such statements also include
statements as to the anticipated impact of the proposed Union
acquisition of Access, including future financial and operating
results, ability to successfully integrate the combined businesses,
the amount of cost savings, overall operational efficiencies and
enhanced revenues and the expected closing date, as well as other
statements regarding the acquisition. Such forward-looking
statements are based on various assumptions as of the time they are
made, and are inherently subject to known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are
often accompanied by words that convey projected future events or
outcomes such as “expect,” “believe,” “estimate,” “plan,”
“project,” “anticipate,” “intend,” “will,” “may,” “view,”
“opportunity,” “potential,” or words of similar meaning or other
statements concerning opinions or judgment of Access or its
management about future events. Although Access believes that its
expectations with respect to forward-looking statements are based
upon reasonable assumptions within the bounds of its existing
knowledge of its business and operations, there can be no assurance
that actual results, performance, or achievements of Access will
not differ materially from any projected future results,
performance or achievements expressed or implied by such
forward-looking statements. Actual future results, performance or
achievements may differ materially from historical results or those
anticipated depending on a variety of factors, including but not
limited to, economic and financial market conditions in the
United States generally and particularly in the markets in which
Access operates and which its loans are concentrated including
declines in real estate values, the effects an increase in
unemployment levels, slowdowns in economic growth, and a prolonged
federal government shutdown, changes in asset quality and credit
risk, changes in interest rates and capital markets, competitive
conditions, the quality or composition of the loan or investment
portfolios, the fact that the businesses of Union and Access may
not be integrated successfully or such integration may be more
difficult, time-consuming or costly than expected, expected
revenue synergies and cost savings from the proposed acquisition
may not be fully realized or realized within the expected time
frame, revenues following the proposed acquisition may be
lower than expected, customer and employee relationships and
business operations may be disrupted by the proposed acquisition,
the diversion of management time on merger-related issues, changes
in Union’s share price before closing, risks relating to the
potential dilutive effect of shares of Union common stock to be
issued in the proposed transaction, the ability to close the
proposed acquisition on the expected timeframe, or at all, and that
closing may be more difficult, time-consuming or costly than
expected, the reaction to the proposed acquisition of the
companies’ customers, employees and counterparties, and other risk
factors, many of which are beyond the control of Access. We refer
you to the “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” sections of
Access’s Annual Report on Form 10-K for the year ended December 31,
2017 and comparable “risk factors” sections of Access’s Quarterly
Reports on Form 10-Q and other filings, which have been filed with
the Securities and Exchange Commission (the “SEC”) and are
available on the SEC’s website at www.sec.gov. All of the
forward-looking statements made in this press release are expressly
qualified by the cautionary statements contained or referred to
herein. The actual results or developments anticipated may not be
realized or, even if substantially realized, they may not have the
expected consequences to or effects on Union, Access or its
businesses or operations. Readers are cautioned not to rely too
heavily on the forward-looking statements contained in this press
release. Forward-looking statements speak only as of the date they
are made and Access does not undertake any obligation to update,
revise or clarify these forward-looking statements, whether as a
result of new information, future events or otherwise.
________________________
1 Non-GAAP financial information. See “Reconciliation of Non-GAAP
Financial Measures” at end of release. 2 Non-GAAP financial
information. See “Reconciliation of Non-GAAP Financial Measures” at
end of release.
Access National Corporation
Consolidated Balance Sheet - Unaudited
December 31, December 31, (In Thousands
Except for Share and Per Share Data) 2018
2017
ASSETS Cash and due
from banks $ 18,591 $ 29,855 Interest-bearing balances and
federal funds sold 66,756 92,458 Investment securities:
Available-for-sale, at fair value 423,760 406,067 Marketable
equity, at fair value - 1,379 Held-to-maturity, amortized cost
(fair value of $ 22,474 and $16,379, respectively) 22,465
15,721 Total investment securities
446,225 423,167 Restricted Stock, at amortized cost 22,935
16,572 Loans held for sale - at fair value 20,537 31,999
Loans held for investment net of allowance
for loan losses of $18,181 and $15,805, respectively
2,157,273 1,963,104 Premises, equipment and land, net
27,432 27,797 Goodwill and intangible assets, net 183,218
185,161 Other assets 96,193 103,781
Total assets $ 3,039,160 $ 2,873,894
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES Noninterest-bearing deposits $ 731,449 $ 744,960
Interest-bearing demand deposits 502,539 496,677
Savings and interest-bearing deposits 682,317 623,889 Time
deposits 344,445 368,622
Total deposits 2,260,750 2,234,148 Short-term borrowings
286,930 145,993 Long-term borrowings 10,000 40,000
Trust preferred debentures 3,962 3,883 Other liabilities and
accrued expenses 22,706 28,246 Total
Liabilities 2,584,348 2,452,270
SHAREHOLDERS' EQUITY
Common stock $0.835 par value; 60,000,000
authorized; issued and outstanding, 21,078,433 and 20,534,163
respectively
17,600 17,146 Additional paid in capital 321,278 307,670
Retained earnings 121,141 98,584 Accumulated other
comprehensive income (loss), net (5,207 ) (1,776 )
Total shareholders' equity 454,812
421,624 Total liabilities and
shareholders' equity $ 3,039,160 $ 2,873,894
Access National Corporation Consolidated Statement
of Operations - Unaudited
Three Months Ended Twelve
Months Ended (In Thousands Except for Share and Per Share Data)
December 31, 2018 December 31, 2017 December
31, 2018 December 31, 2017
INTEREST
INCOME Interest and fees on loans $ 26,783 $ 24,321 $ 100,024 $
84,572 Interest on federal funds sold and bank balances 432
453 1,964 1,199 Interest and dividends on securities
3,286 2,321 11,655 9,709 Total interest income
30,501 27,095 113,643 95,480
INTEREST EXPENSE
Interest on deposits 4,468 2,714 14,185 9,274 Interest on
other borrowings 1,410 468 4,510 1,834
Total interest expense 5,878 3,182 18,695
11,108 Net interest income 24,623 23,913 94,948 84,372
Provision for loan losses 1,500 3,719
3,602 6,919 Net interest income after provision for loan
losses 23,123 20,194 91,346 77,453
NONINTEREST INCOME
Service charges and fees 487 489 1,943 1,998 Gain on sale of
loans 3,161 5,095 14,614 20,080 Other Income 2,524
3,097 13,544 10,014 Total noninterest income
6,172 8,681 30,101 32,092
NONINTEREST EXPENSE
Salaries and benefits 10,016 12,115 45,386 43,915 Occupancy
and equipment 1,699 1,058 7,580 6,878 Other operating
expense 6,931 6,681 25,046 30,275 Total
noninterest expense 18,646 19,854 78,012
81,068 Income before income tax 10,649 9,021 43,435 28,477
Income tax expense 1,923 5,976 8,051
11,977
NET INCOME 8,726 3,045
35,384 16,500 Earnings per common share: Basic $ 0.42
$ 0.15 $ 1.70 $ 0.92 Diluted $ 0.41 $ 0.15 $ 1.69 $ 0.92
Average outstanding shares: Basic 20,990,926 20,485,116 20,798,697
17,988,670 Diluted 21,046,839 20,601,740 20,877,532 18,076,304
Performance and Capital Ratios - Unaudited
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)
2018 2018
2018 2018
2018 2017
Return on average assets (annualized) 1.17 % 1.30 % 1.26 %
1.13 % 1.21 % 0.67 % Return on average tangible equity (annualized)
(1) 13.35 % 15.20 % 14.73 % 13.57 % 14.21 % 8.15 % Net interest
margin - fully tax equivalent basis (1) 3.69 % 3.67 % 3.67 % 3.70 %
3.69 % 3.88 % Net interest margin 3.64 % 3.62 % 3.62 % 3.65 % 3.63
% 3.81 % Cost of funds 1.29 % 1.17 % 0.98 % 0.79 % 1.06 % 0.73 %
Access National Bank efficiency ratio (2) 50.06 % 53.14 % 57.36 %
59.65 % 54.80 % 55.72 % Access National Corporation efficiency
ratio (2) 60.55 % 60.19 % 63.62 % 65.19 % 62.39 % 69.61 % Total
average equity to earning assets 16.46 % 16.47 % 16.86 % 16.59 %
16.59 % 14.82 % Tangible common equity ratio (1) 9.51 % 9.09 % 9.12
% 9.10 % 9.51 % 8.79 %
Averages Assets $ 2,995,148 $
2,953,987 $ 2,848,307 $ 2,856,201 $ 2,913,778 $ 2,453,894 Loans
held for investment, gross 2,113,576 2,038,292 1,935,422 1,950,077
2,009,865 1,704,040 Loans held for sale 30,191 36,672 41,515 21,257
32,445 27,881 Interest-bearing deposits & federal funds sold
79,542 110,140 110,800 136,969 109,208 104,566 Investment
securities and restricted stock 469,844 461,708 444,779 434,003
452,707 362,614 Earning assets 2,705,299 2,656,213 2,541,454
2,548,836 2,613,494 2,212,020 Interest-bearing deposits 1,543,921
1,502,982 1,440,998 1,517,030 1,501,334 1,327,262 Total deposits
2,246,993 2,201,473 2,114,617 2,215,222 2,194,722 1,922,249
Repurchase agreements & federal funds purchased 45,390 50,135
56,693 57,344 52,351 48,378 FHLB short term borrowings 201,680
193,784 180,348 91,002 167,081 67,907 FHLB long-term borrowings
27,935 45,000 42,088 40,000 38,740 66,329 Trust Preferred debt
3,950 3,930 3,911 3,891 3,921 2,691 Equity 445,254 437,398 428,590
422,780 433,577 327,738 Tangible equity (1) $ 261,518 $ 252,864 $
243,232 $ 238,381 $ 249,065 $ 202,408 Allowance for loan
losses $ 18,181 $ 17,349 $ 16,543 $ 15,928 $ 18,181 $ 15,805
Allowance for loan losses/loans held for investment 0.84 % 0.83 %
0.83 % 0.83 % 0.84 % 0.80 % Remaining purchase marks on performing
loans $ 8,353 $ 8,838 $ 9,615 $ 10,415 $ 8,353 $ 11,241 Purchased
credit impaired loans $ 4,077 $ 4,509 $ 4,632 $ 4,702 $ 4,077 $
4,969 Remaining purchase marks on credit impaired loans $ 1,573 $
1,592 $ 1,720 $ 1,749 $ 1,573 $ 1,175 Total NPA $ 7,074 $ 6,106 $
6,049 $ 7,453 $ 7,074 $ 5,270 NPA to total assets 0.23 % 0.20 %
0.21 % 0.26 % 0.23 % 0.18 % Mortgage loan originations and
brokered loans $ 69,028 $ 85,087 $ 123,157 $ 84,411 $ 361,683 $
432,678 Gain on sale of mortgage loans net hedging activity $ 3,434
$ 4,137 $ 4,251 $ 3,273 $ 15,095 $ 19,192 Allowance for losses on
mortgage loans sold $ 916 $ 953 $ 953 $ 953 $ 916 $ 953
Wealth Services segment - assets under management $ 1,810,173 $
2,012,526 $ 1,949,992 $ 1,942,526 $ 1,810,173 $ 1,955,720
Book value per common share $ 21.58 $ 21.13 $ 20.88 $ 20.62 $ 21.58
$ 20.53 Tangible book value per common share (1) $ 12.88 $
12.33 $ 11.99 $ 11.65 $ 12.88 $ 11.52
(1) Non-GAAP financial information. See "Reconciliation of
Non-GAAP Financial Measures" at end of release. (2) Efficiency
ratio is non-interest expense divided by the sum of net interest
income and non-interest income
Composition of Loan
Portfolio - Unaudited
December
31, 2018 September 30, 2018 June 30,
2018 March 31, 2018 December 31,
2017 (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 $ 547,817 25.18 % $ 525,047 25.07 % $ 478,928 24.13 % $
462,298 24.02 % $ 467,082 23.60 % Commercial real estate -
non-owner occupied 480,783 22.10 467,495 22.32 457,940 23.08
419,139 21.77 436,083 22.04 Residential real estate 454,910 20.91
459,989 21.96 460,269 23.20 476,366 24.75 489,669 24.74 Commercial
565,086 25.98 507,269 24.22 464,270 23.40 437,287 22.72 463,652
23.43 Real estate construction 107,939 4.96 113,790 5.43 99,164
5.00 104,528 5.43 97,481 4.93 Consumer 18,919 0.87
20,680 1.00 23,618
1.19 25,293 1.31
24,942 1.26
Total loans $ 2,175,454
100.00 % $ 2,094,270 100.00 % $ 1,984,189 100.00 $ 1,924,911
100.00 % $ 1,978,909 100.00 % Less allowance for loan losses
18,181 17,349 16,543 15,928 15,805 $
2,157,273 $ 2,076,921 $ 1,967,646 $ 1,908,983 $ 1,963,104
Composition of Deposits - Unaudited
December 31, 2018 September 30,
2018 June 30, 2018 March 31, 2018
December 31, 2017 (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 $ 731,449 32.35 % $ 757,900 33.03 % $ 719,873 33.85 % $
706,128 32.14 % $ 744,960 33.34 % Interest-bearing demand deposits
473,222 20.93 455,769 19.86 462,355 21.74 501,745 22.84 486,621
21.78 Savings and money market 640,724 28.34 670,497 29.22 585,673
27.54 616,879 28.08 580,827 26.00 CDARS time deposits 17,366 0.77
17,050 0.74 13,666 0.64 17,247 0.78 21,582 0.97 CDARS/ICS
non-maturity deposits 70,857 3.13 66,604 2.90 53,233 2.50 50,233
2.29 48,011 2.15 Brokered deposits 53,997 2.39 53,900 2.35 17,590
0.83 23,244 1.06 51,028 2.28 Time deposits 273,135
12.09 273,144 11.90
274,330 12.90 281,452
12.81 301,119 13.48 Total
Deposits $ 2,260,750 100.00 % $ 2,294,864
100.00 % $ 2,126,720 100.00 % $ 2,196,928
100.00 % $ 2,234,148 100.00 %
Yield
on Average Earning Assets and Rates on Average Interest-Bearing
Liabilities Three Months Ended - Unaudited
December 31,
2018 December 31, 2017 Average Income
/ Yield / Average Income / Yield /
(Dollars In Thousands)
Balance Expense
Rate Balance Expense
Rate
Assets: Interest-earning assets: Investment
securities and restricted stock $ 481,990 $ 3,286 2.73 % $ 438,290
$ 2,321 2.12 % Loans held for sale 30,191 377 5.00 % 30,006 297
3.96 % Loans(1) 2,113,576 26,406 5.00 % 1,965,608 24,024 4.89 %
Interest-bearing balances and federal funds sold 79,542
432 2.17 % 102,095
453 1.77 %
Total interest-earning
assets 2,705,299 30,501 4.51 %
2,535,999 27,095 4.27 %
Noninterest-earning assets: Cash and due from banks 14,330
18,784 Premises, land and equipment 27,652 26,156 Other assets
265,480 272,877 Less: allowance for loan losses (17,613 )
(15,982 )
Total noninterest-earning assets
289,849 301,835 Total
Assets $ 2,995,148 $
2,837,834 Liabilities and Shareholders'
Equity: Interest-bearing deposits: Interest-bearing
demand deposits $ 500,836 $ 948 0.76 % $ 480,147 $ 499 0.42 % Money
market deposit accounts 539,267 1,717 1.27 % 483,416 691 0.57 %
Savings accounts 160,073 265 0.66 % 175,123 322 0.74 % Time
deposits 343,745 1,538 1.79 %
389,447 1,202 1.23 %
Total interest-bearing deposits 1,543,921
4,468 1.16 %
1,528,133 2,714 0.71 %
Borrowings: FHLB short-term borrowings 201,680 1,227 2.43 %
68,300 231 1.35 % Securities sold under agreements to repurchase
and federal funds purchased 45,390 13 0.11 % 54,702 10 0.07 %
Subordinated debentures 3,950 89 9.06 % 3,871 73 7.54 % FHLB
long-term borrowings 27,935 81
1.16 % 46,304 154 1.33 %
Total borrowings 278,955
1,410 2.02 %
173,177
468 1.08 %
Total interest-bearing
deposits and borrowings 1,822,876 5,878 1.29 %
1,701,310 3,182 0.75 %
Noninterest-bearing
liabilities: Demand deposits 703,072 719,093 Other liabilities
23,946 23,112
Total liabilities
2,549,894 2,443,515 Shareholders' Equity
445,254 394,319
Total Liabilities and
Shareholders' Equity $ 2,995,148 $
2,837,834 Interest Spread(2) 3.22 % 3.52 %
Net Interest Margin(3) $ 24,623 3.64 % $ 23,913
3.77 %
(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 - Unaudited
December
31, 2018 December 31, 2017 Average
Income / Yield / Average Income /
Yield / (Dollars In Thousands)
Balance
Expense Rate Balance
Expense Rate Assets:
Interest-earning assets: Investment securities and
restricted stock $ 461,976 $ 11,655 2.52 % $ 375,533 $ 9,709 2.59 %
Loans held for sale 32,445 1,531 4.72 % 27,881 1,143 4.10 %
Loans(1) 2,009,865 98,493 4.90 % 1,704,040 83,429 4.90 %
Interest-bearing balances and federal funds sold 109,208
1,964 1.80 % 104,565
1,199 1.15 %
Total interest-earning
assets 2,613,494 113,643 4.35 %
2,212,019 95,480 4.32 %
Noninterest-earning assets: Cash and due from banks 15,885
20,859 Premises, land and equipment 28,015 22,683 Other assets
273,098 213,337 Less: allowance for loan losses (16,714 )
(15,004 )
Total noninterest-earning assets
300,284 241,875 Total
Assets $ 2,913,778 $
2,453,894 Liabilities and Shareholders'
Equity: Interest-bearing deposits: Interest-bearing
demand deposits $ 497,136 $ 3,015 0.61 % $ 386,046 $ 1,409 0.36 %
Money market deposit accounts 502,241 5,177 1.03 % 386,786 2,335
0.60 % Savings accounts 168,437 949 0.56 % 153,769 714 0.46 % Time
deposits 333,520 5,044 1.51 %
400,660 4,816 1.20 %
Total interest-bearing deposits 1,501,334
14,185 0.94 %
1,327,261 9,274 0.70 %
Borrowings: FHLB short-term borrowings 167,081 3,419 2.05 %
67,907 822 1.21 % Securities sold under agreements to repurchase
and federal funds purchased 52,351 54 0.10 % 48,378 68 0.14 %
Subordinated debentures 3,921 335 8.56 % 2,692 221 8.21 % FHLB
long-term borrowings 38,740 702
1.81 % 66,329 723 1.09 %
Total borrowings 262,093
4,510 1.72 %
185,306
1,834 0.99 %
Total interest-bearing
deposits and borrowings 1,763,427 18,695 1.06 %
1,512,567 11,108 0.73 %
Noninterest-bearing
liabilities: Demand deposits 693,388 594,987 Other liabilities
23,386 18,602
Total liabilities
2,480,201 2,126,156 Shareholders' Equity
433,577 327,738
Total Liabilities and
Shareholders' Equity $ 2,913,778 $
2,453,894 Interest Spread(2) 3.29 % 3.59 %
Net Interest Margin(3) $ 94,948 3.63 % $ 84,372
3.81 %
(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 -
Unaudited
Three Months
Ended Commercial Mortgage Trust &
Wealth Consolidated December 31, 2018
Banking Banking Management Other
Eliminations Totals (In Thousands) Revenues: Interest
income $ 30,179 $ 376 $ 3 $ 12 $ (69 ) $ 30,501 Gain on sale of
loans - 3,161
- - - 3,161 Other revenues 1,646 (334 ) 1,618
398 (317 ) 3,011 Total revenues
31,825 3,203 1,621 410
(386 ) 36,673 Expenses: Interest
expense 5,800 - - 147 (69 ) 5,878 Salaries and employee benefits
7,122 2,048 846 - - 10,016 Other expenses 7,408 548
558 1,933 (317 )
10,130 Total operating expenses 20,330 2,596
1,404 2,080 (386 ) 26,024
Income (loss) before income taxes $ 11,495 $ 607 $
217 $ (1,670 ) $ - $ 10,649 Total assets $
3,012,742 $ 24,014 $ 13,289 $
29,319 $ (40,204 ) $ 3,039,160
Three Months
Ended Commercial Mortgage Trust &
Wealth Consolidated December 31, 2017
Banking Banking Management Other
Eliminations Totals (In Thousands) Revenues: Interest
income $ 26,837 $ 295 $ - $ 8 $ (45 ) $ 27,095 Gain on sale of
loans 136 4,959 - - - 5,095 Other revenues 1,825 (1 )
1,793 478 (509 ) 3,586
Total revenues 28,798 5,253 1,793
486 (554 ) 35,776
Expenses: Interest expense 3,116 (24 ) - 135 (45 ) 3,182 Salaries
and employee benefits 8,116 2,836 1,163 - - 12,115 Other expenses
8,825 1,092 919 1,131
(509 ) 11,458 Total operating expenses
20,057 3,904 2,082 1,266
(554 ) 26,755 Income (loss) before income
taxes $ 8,741 $ 1,349 $ (289 ) $ (780 ) $ - $ 9,021
Total assets $ 2,827,041 $ 31,999 $
10,967 $ 21,727 $ (17,840 ) $ 2,873,894
Segment Reporting - Unaudited
Twelve Months Ended Commercial
Mortgage Trust & Wealth Consolidated
December 31, 2018 Banking Banking
Management Other Eliminations Totals
Revenues: Interest income $ 112,264 $ 1,531 $ 12 $ 33 $ (197
) $ 113,643 Gain on sale of loans - 14,614 - - - 14,614 Other
revenues 6,937 566 7,773
1,525 (1,314 ) 15,487 Total revenues
119,201 16,711 7,785 1,558
(1,511 ) 143,744 Expenses: Interest
expense 18,393 (72 ) - 571 (197 ) 18,695 Salaries and employee
benefits 31,174 10,339 3,848 - 25 45,386 Other expenses
27,669 3,043 2,252 4,603
(1,339 ) 36,228 Total operating expenses
77,236 13,310 6,100 5,174
(1,511 ) 100,309 Income (loss) before income
taxes $ 41,965 $ 3,401 $ 1,685 $ (3,616 ) $ -
$ 43,435 Total assets $ 3,012,742 $ 24,014
$ 13,289 $ 29,319 $ (40,204 ) $
3,039,160
Twelve Months Ended
Commercial Mortgage Trust & Wealth
Consolidated December 31, 2017 Banking
Banking Management Other Eliminations
Totals Revenues: Interest income $ 94,577 $ 1,141 $ 7
$ 25 $ (270 ) $ 95,480 Gain on sale of loans 136 19,944 - - -
20,080 Other revenues 6,270 (307 ) 5,988
1,453 (1,392 ) 12,012 Total
revenues 100,983 20,778 5,995
1,478 (1,662 ) 127,572 Expenses:
Interest expense 10,912 (6 ) - 472 (270 ) 11,108 Salaries and
employee benefits 28,108 11,958 3,849 - - 43,915 Other expenses
28,998 4,338 3,460 8,668
(1,392 ) 44,072 Total operating expenses
68,018 16,290 7,309 9,140
(1,662 ) 99,095 Income (loss) before
income taxes $ 32,965 $ 4,488 $ (1,314 ) $ (7,662 ) $ -
$ 28,477 Total assets $ 2,827,041 $
31,999 $ 10,967 $ 21,727
$ (17,840 ) $ 2,873,894
Reconciliation of Non-GAAP Financial Measures -
Unaudited
The press release contains certain financial information
determined by methods other than in accordance with generally
accepted accounting policies in the United States (GAAP). These
non-GAAP financial measures are “tangible book value per common
shares”, “tangible common equity ratio”, and “net interest margin
on a fully tax equivalent basis.” This non-GAAP disclosure has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for analysis of the Corporation’s
results as reported under GAAP, nor is it necessarily comparable to
non-GAAP performance measures that may be presented by other
companies. Management uses these non-GAAP measures in its analysis
of our performance because it believes these measures are material
and will be used as a measure of our performance by investors.
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)
2018 2018 2018
2018 2018 2017
Book value per common share $ 21.57 $ 21.13 $ 20.88 $ 20.62 $ 21.57
$ 20.53 Effect of intangible assets $ (8.69 ) $ (8.80 ) $ (8.89 ) $
(8.97 ) $ (8.69 ) $ (9.01 ) Tangible book value per common share $
12.88 $ 12.33 $ 11.99 $ 11.65 $ 12.88 $ 11.52 Common equity
ratio 14.97 % 14.63 % 14.87 % 15.06 % 14.97 % 14.68 % Effect of
intangible assets -5.46 % -5.54 % -5.75 %
-5.96 % -5.46 % -5.89 % Tangible common equity
ratio 9.51 % 9.09 % 9.12 % 9.10 % 9.51 % 8.79 % Net interest
margin 3.64 % 3.62 % 3.62 % 3.65 % 3.63 % 3.81 % Effect of tax
exempt securities and loans 0.05 % 0.05 % 0.05
% 0.05 % 0.06 % 0.07 % Net interest margin -
fully tax equivalent basis 3.69 % 3.67 % 3.67 % 3.70 % 3.69 % 3.88
% Return on average equity 8.02 % 8.79 % 8.36 % 7.65 % 8.21
% 5.03 % Effect of intangible assets 5.33 % 6.41 %
6.37 % 5.92 % 6.00 % 3.12 % Return on
average tangible equity 13.35 % 15.20 % 14.73 % 13.57 % 14.21 %
8.15 % Average equity $ 445,254 $ 437,398 $ 428,590 $
422,780 $ 433,577 $ 327,738 Effect of average intangible assets $
183,736 $ 184,534 $ 185,358 $ 184,399 $
184,512 $ 125,330 Average tangible equity $ 261,518 $
252,864 $ 243,232 $ 238,381 $ 249,065 $ 202,408
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Michael W. ClarkeCEO703-871-2100
Access National Corp. (NASDAQ:ANCX)
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