ANCX Access National Corp.

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

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

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

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

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

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

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

Book value per common share increased from $9.45 at December 31, 2014 to $9.75 at March 31, 2015. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 9.60% at March 31, 2015 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.

Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater Washington DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".

This press release contains “forward-looking statements” within the meaning of the federal securities laws. These statements may be identified as “may”, “could”, “expect”, “believe”, anticipate”, “intend”, “plan” or variations thereof. These forward-looking statements may contain information related to those matters such as the Company’s intent, belief, or expectation with respect to matters such as financial performance. Such statements are necessarily based on assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company’s operations and business environment, which are difficult to predict and beyond control of the Company. Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to the Company’s Annual Report on Form 10-K and other SEC filings.

      Access National Corporation Consolidated Balance Sheet               March 31, December 31, March 31, 2015 2014 2014 (In Thousands Except for Share Data)   (Unaudited)       (Unaudited)   ASSETS   Cash and due from banks $ 11,324 $ 9,804 $ 10,816   Interest-bearing balances and federal funds sold 33,602 46,225 51,354   Investment securities: Available-for-sale, at fair value 122,027 125,080 90,595

Held-to-maturity, at amortized cost (fair value of $14,524, $14,378 and $10,938)

  14,304   14,309     11,273   Total investment securities 136,331 139,389 101,868   Restricted Stock, at amortized cost 8,321 8,961 1,761   Loans held for sale - at fair value 57,151 45,026 27,217  

Loans held for investment net of allowance for loan losses of $13,331, $13,399 and $13,171, respectively

780,883 763,204 703,686   Premises, equipment and land, net 6,889 6,926 8,368   Other assets 34,701 33,345 21,730       Total assets $ 1,069,202 $ 1,052,880   $ 926,800     LIABILITIES AND SHAREHOLDERS' EQUITY   LIABILITIES Noninterest-bearing deposits $ 290,294 $ 252,875 $ 229,059   Savings and interest-bearing deposits 246,806 233,773 239,795   Time deposits   249,219   268,795     336,570     Total deposits 786,319 755,443 805,424   Short-term borrowings 161,021 186,377 18,564   Long-term borrowings 10,000 - -   Other liabilities and accrued expenses 9,272 12,156 9,235       Total Liabilities   966,612   953,976     833,223     SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,517,876, 10,469,569 and 10,402,324 shares, respectively

8,782 8,742 8,686   Additional paid in capital 19,378 18,538 17,814   Retained earnings 74,276 72,168 68,392   Accumulated other comprehensive income (loss), net 154 (544 ) (1,315 )       Total shareholders' equity   102,590   98,904     93,577         Total liabilities and shareholders' equity $ 1,069,202 $ 1,052,880   $ 926,800                         Access National Corporation Consolidated Statement of Operations             Three Months Ended March 31, 2015 March 31, 2014 (In Thousands Except for Share and Per Share Data)     (unaudited)   (unaudited)   INTEREST INCOME Interest and fees on loans $ 9,434 $ 8,459   Interest on federal funds sold and bank balances 27 18   Interest and dividends on securities   815   468 Total interest income 10,276 8,945   INTEREST EXPENSE Interest on deposits 733 728   Interest on other borrowings   107   76 Total interest expense   840   804 Net interest income 9,436 8,141   Provision for loan losses   -   - Net interest income after provision for loan losses 9,436 8,141   NONINTEREST INCOME Service charges and fees 197 177   Gain on sale of loans 3,571 1,728   Other Income   2,537   1,351

Total noninterest income

6,305 3,256   NONINTEREST EXPENSE Salaries and benefits 6,717 4,887   Occupancy and equipment 754 707   Other operating expense   2,769   2,063 Total noninterest expense   10,240   7,657 Income before income tax 5,501 3,740   Income tax expense   1,928   1,326 NET INCOME   3,573   2,414   Earnings per common share: Basic $ 0.34 $ 0.23 Diluted $ 0.34 $ 0.23   Average outstanding shares: Basic 10,473,366 10,391,080 Diluted 10,517,222 10,447,085                       Performance and Capital Ratios                   Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended March 31, March 31, December 31, December 31, (Dollars In Thousands)   2015   2014   2014   2013   Return on average assets (annualized) 1.36 % 1.10 % 1.45 % 1.55 % Return on average equity (annualized) 14.19 % 10.43 % 14.47 % 14.00 % Net interest margin 3.72 % 3.78 % 3.80 % 3.85 % Efficiency ratio - Bank only 50.51 % 50.98 % 48.96 % 49.50 % Total average equity to earning assets 9.93 % 10.75 % 10.37 % 11.28 %   Averages Assets $ 1,050,296 $ 879,984 $ 958,067 $ 854,572 Loans held for investment 781,990 698,429 721,863 648,744 Loans held for sale 38,065 18,708 31,288 42,667 Interest-bearing deposits & federal funds sold 46,828 39,251 44,939 46,217 Investment securities 147,385 102,398 128,446 97,260 Earning assets 1,014,351 861,170 927,845 836,129 Interest-bearing deposits 499,467 441,757 477,267 485,860 Total deposits 760,105 638,211 715,385 678,531 Repurchase agreements & federal funds purchased 22,695 23,374 21,129 25,524 Short term borrowings 158,297 116,554 116,196 43,077 Long-term borrowings 556 - - 3,135 Equity $ 100,754 $ 92,593 $ 96,227 $ 94,352   Banking segment - income before taxes $ 4,930 $ 4,181 $ 18,889 $ 17,330 Mortgage segment - income before taxes $ 1,012 $ 3 $ 5,043 $ 4,879 Wealth Management segment - loss before taxes $ (132 ) $ (8 ) $ (350 ) $ (751 ) Other segments - loss before taxes $ (309 ) $ (436 ) $ (2,072 ) $ (1,017 )   Allowance for loan losses/loans held for investment 1.68 % 1.84 % 1.73 % 1.91 % Total NPA $ 6,784 $ 2,510 $ 1,622 $ 2,535 NPA to total assets 0.63 % 0.27 % 0.15 % 0.30 %   Mortgage loan originations and brokered loans $ 114,541 $ 70,570 $ 408,346 $ 574,951 Gain on sale of mortgage loans net hedging activity $ 3,058 $ 1,385 $ 12,779 $ 23,998 Allowance for losses on mortgage loans sold $ 1,187 $ 4,645 $ 1,198 $ 4,645   Wealth Management segment - assets under management $ 523,000 $ 432,000 $ 450,372 $ 257,000 . Book value per common share $ 9.75 $ 9.00 $ 9.45 $ 8.79                                             Composition of Loan Portfolio       March 31, 2015   December 31, 2014 (Dollars In Thousands)   Amount  

Percentage ofTotal

  Amount  

Percentage ofTotal

  Commercial real estate - owner occupied $ 210,131 26.46 % $ 199,442 25.68 % Commercial real estate - non-owner occupied 123,387 15.54 125,442 16.15 Residential real estate 191,914 24.16 194,213 25.01 Commercial 219,623 27.65 210,278 27.08 Real estate construction 43,290 5.45 41,080 5.29 Consumer   5,869   0.74     6,148   0.79   Total loans $ 794,214 100.00 % $ 776,603 100.00 % Less allowance for loan losses   13,331   13,399 $ 780,883 $ 763,204                             Composition of Deposits       March 31, 2015   December 31, 2014 (Dollars In Thousands)   Amount  

Percentage ofTotal

  Amount  

Percentage ofTotal

  Demand deposits $ 290,294 36.92 % $ 252,875 33.47 % Interest-bearing demand deposits 127,504 16.21 116,654 15.44 Savings and money market 103,460 13.16 101,409 13.42 CDARS-time deposit 127,669 16.24 148,142 19.61 CDARS-money market 15,632 1.99 15,497 2.06 Brokered deposits 13,213 1.68 13,344 1.77 Time deposits   108,547   13.80       107,522   14.23   Total Deposits $ 786,319   100.00 %   $ 755,443   100.00 %                         Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities Three Months Ended                                           March 31, 2015     March 31, 2014 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)   Balance   Expense   Rate     Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 147,468 $ 815 2.21 % $ 104,782 $ 468 1.79 % Loans held for sale 38,065 362 3.80 % 18,708 202 4.32 % Loans(1) 781,990 9,072 4.64 % 698,429 8,257 4.73 % Interest-bearing balances and federal funds sold   46,828       27   0.23 %   39,251       18   0.18 % Total interest-earning assets 1,014,351 10,276 4.05 % 861,170 8,945 4.15 % Noninterest-earning assets: Cash and due from banks 9,906 7,609 Premises, land and equipment 6,898 8,379 Other assets 32,478 16,007 Less: allowance for loan losses   (13,337 )   (13,181 ) Total noninterest-earning assets   35,945     18,814   Total Assets $ 1,050,296   $ 879,984     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 120,685 $ 65 0.22 % $ 105,816 $ 58 0.22 % Money market deposit accounts 110,503 54 0.20 % 114,119 57 0.20 % Savings accounts 7,848 7 0.36 % 2,868 2 0.28 % Time deposits   260,431       607   0.93 %   218,954       611   1.12 % Total interest-bearing deposits 499,467 733 0.59 % 441,757 728 0.66 % Borrowings: FHLB short-term borrowings 157,555 94 0.24 % 115,944 65 0.22 % Securities sold under agreements to repurchase and federal funds purchased 22,695 5 0.09 % 23,374 6 0.10 % FHLB long-term borrowings 556 2 1.44 % - - 0.00 % Deferred purchase liability   742       6   3.23 %   610       5   3.28 % Total borrowings   181,548       107   0.24 %   139,928       76   0.22 % Total interest-bearing deposits and borrowings 681,015 840 0.49 % 581,685 804 0.55 % Noninterest-bearing liabilities: Demand deposits 260,638 196,454 Other liabilities   7,889     9,251   Total liabilities 949,542 787,390 Shareholders' Equity   100,754     92,594   Total Liabilities and Shareholders' Equity: $ 1,050,296   $ 879,984     Interest Spread(2) 3.56 % 3.60 %   Net Interest Margin(3) $ 9,436   3.72 % $ 8,141   3.78 %                                

(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.

 

Access National CorporationMichael Clarke, 703-871-2100