Access National Corporation (NASDAQ: ANCX), parent
company for Access National Bank (Bank), reported first quarter
2016 net income of $4.1 million, or $0.39 per common share. This
represents the Corporation’s 63rd consecutive quarterly profit over
its 65 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 2, 2016 and payable on May 25, 2016.
The routine dividend reflects Management’s favorable performance
outlook and comfort with a favorable capital position.
First quarter 2016 pretax earnings rose by $739 thousand or
13.4% when compared to first quarter 2015 pretax earnings. First
quarter 2016 pretax income for the banking segment rose $563
thousand from first quarter 2015 due to increases in net interest
income of $1.1 million and other income of $217 thousand due
largely to returns on the Bank’s investments in Small Business
Investment Companies. These increases were partially offset by an
increase in salaries and benefits of $696 thousand due to addition
of staffing throughout the third and fourth quarters of 2015. The
mortgage segment’s pretax earnings increase of $104 thousand over
first 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 3.72% to 3.61% when
comparing first quarter 2015 to first quarter 2016. On a linked
quarter basis, the margin decreased from 3.63% for the three months
ended December 31, 2015 when compared to 3.61% for the three months
ended March 31, 2016.
On a consolidated basis, the Corporation reported annualized
return on average assets of 1.35% and 1.36% for the three month
periods ended March 31, 2016 and 2015, respectively. Meanwhile, the
annualized return on average equity was 14.75% and 14.19% for the
three month periods ended March 31, 2016 and 2015,
respectively.
Total assets were $1.2 billion at March 31, 2016 and grew $38.5
million and $147.8 million when compared to December 31, 2015 and
March 31, 2015, respectively. The $38.5 million growth in assets
since December 31, 2015 was due mainly to an increase in loans held
for investment of $27.2 million and a $5.8 million increase in
loans held for sale. An increase in loans held for investment of
$120.5 million and a $35.7 million growth in investment securities
was partially offset by a decrease of $7.2 million in loans held
for sale when comparing first quarter 2016 to first quarter 2015.
Commercial loan growth continues to remain the leading driver of a
year over year growth rate of loans held for investment of
15.2%.
Total deposits at March 31, 2016 were $960.5 million, an
increase of $46.7 million and $174.1 million when compared to
December 31, 2015 and March 31, 2015, respectively. At March 31,
2016, non-interest bearing deposits were $335.2 million, an
increase of $27.4 million from the December 31, 2015 figure and an
increase of $44.9 million from the March 31, 2015 figure. The
year-over-year growth rate in non-interest bearing deposits of
15.5% was due to management’s continued focus on expanding business
banking relationships. Interest bearing deposits increased to
$625.2 million at March 31, 2016, an increase of $19.3 million
since December 31, 2015 and an increase of $129.2 million when
compared to the March 31, 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 $46.2 million and an increase in time deposits of $34.2
million. The remainder of the year-over-year increase is
attributable to increased funding in the wholesale market of $52.4
million.
Non-performing assets (NPAs) increased to $7.3 million at March
31, 2016 from $6.8 million at March 31, 2015, representing 0.60%
and 0.63% of total assets, respectively. Reflected in the NPA
figure at March 31, 2016 is other real estate owned totaling $129
thousand. Access Real Estate, LLC also had other real estate owned
with a carrying value of $500 thousand at March 31, 2016. The
allowance for loan loss was $13.6 million and $13.3 million at
March 31, 2016 and March 31, 2015, respectively, and represented
1.49% and 1.68% of total loans held for investment at March 31,
2016 and 2015, respectively.
Book value per common share increased from $9.75 at March 31,
2015 to $10.79 at March 31, 2016. The tangible common equity ratio
for Access National Corporation and its subsidiary bank was 9.23%
at March 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".
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, 2016 2015
2015 (In Thousands Except for Share and Per Share Data)
(Unaudited) (Audited) (Unaudited)
ASSETS Cash and due from banks $ 14,522 $ 11,291 $
11,324 Interest-bearing balances and federal funds sold
27,110 24,598 33,602 Investment securities:
Available-for-sale, at fair value 162,720 160,162 122,027
Held-to-maturity, at amortized cost (fair value of $9,487, $14,314
and $14,524) 9,295 14,287 14,304 Total
investment securities 172,015 174,449 136,331 Restricted
Stock, at amortized cost 7,159 7,259 8,321 Loans held for
sale - at fair value 49,977 44,135 57,151
Loans held for investment net of allowance
for loan losses of $13,614, $13,563 and $13,331, respectively
901,068 873,915 780,883 Premises, equipment and land, net
6,852 6,689 6,889 Other assets 38,332 36,212 34,701
Total assets $ 1,217,035 $ 1,178,548 $
1,069,202
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES Noninterest-bearing deposits $ 335,219 $ 307,797
$ 290,294 Savings and interest-bearing deposits 308,986
293,711 246,806 Time deposits 316,252 312,236
249,219 Total deposits 960,457 913,744 786,319
Short-term borrowings 77,467 91,129 160,529 Long-term
borrowings 55,000 55,000 10,000 Other liabilities and
accrued expenses 10,070 9,537 9,764 Total
Liabilities 1,102,994 1,069,410 966,612
SHAREHOLDERS' EQUITY
Common stock $0.835 par value; 60,000,000
authorized; issued and outstanding, 10,570,056, 10,544,751 and
10,517,876, respectively
8,826 8,805 8,782 Additional paid in capital 20,386 19,953
19,378 Retained earnings 83,897 81,385 74,276
Accumulated other comprehensive income (loss), net 932 (1,005 ) 154
Total shareholders' equity 114,041
109,138 102,590 Total
liabilities and shareholders' equity $ 1,217,035 $ 1,178,548
$ 1,069,202
Access National Corporation Consolidated Statement
of Operations Three
Months Ended March 31, 2016 March 31, 2015 (In Thousands
Except for Share and Per Share Data) (unaudited)
INTEREST INCOME Interest and fees on loans $ 10,876 $ 9,434
Interest on federal funds sold and bank balances 70 27
Interest and dividends on securities 1,035 815
Total interest income 11,981 10,276
INTEREST EXPENSE
Interest on deposits 1,150 733 Interest on other borrowings
281 101 Total interest expense 1,431
834 Net interest income 10,550 9,442 Provision for loan
losses - - Net interest income after provision for
loan losses 10,550 9,442
NONINTEREST INCOME Service
charges and fees 260 197 Gain on sale of loans 3,830 3,571
Other Income 2,729 2,537 Total noninterest
income 6,819 6,305
NONINTEREST EXPENSE Salaries and
benefits 7,668 6,717 Occupancy and equipment 761 754
Other operating expense 2,700 2,775 Total noninterest
expense 11,129 10,246 Income before income tax 6,240
5,501 Income tax expense 2,145 1,928
NET
INCOME 4,095 3,573 Earnings per common
share: Basic $ 0.39 $ 0.34 Diluted $ 0.39 $ 0.34 Average
outstanding shares: Basic 10,553,150 10,473,366 Diluted 10,606,359
10,517,222
Performance and
Capital Ratios
Three Months
Three Months Three Months Three Months
Three Months Twelve Months Ended Ended
Ended Ended Ended Ended March
31, December 31, September 30, June 30,
March 31, December 31, (Dollars In Thousands)
2016 2015 2015
2015 2015 2015 Return on
average assets (annualized) 1.35 % 1.35 % 1.40 % 1.44 % 1.36 % 1.39
% Return on average equity (annualized) 14.75 % 14.53 % 15.09 %
15.54 % 14.19 % 14.83 % Net interest margin 3.61 % 3.63 % 3.70 %
3.67 % 3.72 % 3.68 % Efficiency ratio - Bank only 51.20 % 51.51 %
50.93 % 48.66 % 50.51 % 50.41 % Total average equity to earning
assets 9.50 % 9.60 % 9.57 % 9.58 % 9.93 % 9.67 % Tangible common
equity ratio 9.23 % 9.12 % 9.50 % 8.85 % 9.47 % 9.12 %
Averages Assets $ 1,208,864 $ 1,161,080 $ 1,129,074 $
1,108,029 $ 1,050,296 $ 1,112,470 Loans held for investment 905,382
866,402 833,341 814,393 781,990 824,288 Loans held for sale 34,607
30,719 40,465 59,154 38,065 42,076 Interest-bearing deposits &
federal funds sold 52,862 50,678 59,216 54,026 46,828 52,716
Investment securities 176,448 174,838 158,839 142,644 147,385
156,010 Earning assets 1,169,183 1,122,915 1,092,472 1,070,016
1,014,351 1,075,284 Interest-bearing deposits 612,021 614,775
600,854 535,671 499,467 563,112 Total deposits 920,528 939,403
925,617 839,035 760,105 866,695 Repurchase agreements & federal
funds purchased 17,442 20,961 21,928 22,506 22,695 22,017 FHLB
short term borrowings 86,429 28,261 58,207 125,736 157,555 91,992
FHLB long-term borrowings 64,615 54,511 10,000 10,000 556 18,890
Equity $ 111,068 $ 107,823 $ 104,569 $ 102,560 $ 100,754 $ 103,948
Allowance for loan losses/loans held for investment 1.49 %
1.53 % 1.59 % 1.62 % 1.68 % 1.53 % Total NPA $ 7,349 $ 7,417 $
6,616 $ 7,427 $ 6,784 $ 7,417 NPA to total assets 0.60 % 0.63 %
0.59 % 0.64 % 0.63 % 0.63 % Mortgage loan originations and
brokered loans $ 106,622 $ 105,128 $ 119,855 $ 145,223 $ 114,541 $
484,747 Gain on sale of mortgage loans net hedging activity $ 3,235
$ 4,291 $ 5,220 $ 5,959 $ 3,058 $ 18,528 Allowance for losses on
mortgage loans sold $ 1,029 $ 1,029 $ 1,179 $ 1,187 $ 1,187 $ 1,029
Wealth Management segment - assets under management $
611,000 $ 611,000 $ 508,000 $ 546,000 $ 523,000 $ 611,000
Book value per common share $ 10.79 $ 10.35 $ 10.23 $ 9.94 $ 9.75 $
10.35
Composition of Loan Portfolio
March 31, 2016 December 31, 2015
September 30, 2015 June 30, 2015
March 31, 2015 (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 $ 217,954 23.83 % $ 219,877 24.77 % $ 223,801 25.22 % $
222,012 26.61 % $ 210,131 26.46 % Commercial real estate -
non-owner occupied 153,433 16.77 147,580 16.63 137,081 15.45
134,585 16.13 123,387 15.54 Residential real estate 202,858 22.18
201,447 22.70 196,580 23.15 198,418 23.79 191,914 24.16 Commercial
258,520 28.26 242,527 27.33 225,147 25.37 223,756 26.82 219,623
27.65 Real estate construction 72,055 7.88 66,003 7.44 57,664 6.50
47,037 5.64 43,290 5.45 Consumer 9,862 1.08
10,044 1.13 8,764 0.99
8,434 1.01 5,869 0.74
Total loans $ 914,682 100.00 % $ 887,478 100.00 % $ 849,037
96.67 % $ 834,242 100.00 % $ 794,214 100.00 % Less allowance for
loan losses 13,614 13,563 13,474 13,509
13,331 $ 901,068 $ 873,915 $ 835,563 $ 820,733 $ 780,883
Composition of Deposits
March 31, 2016
December 31, 2015 September 30, 2015
June 30, 2015 March 31, 2015 (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 $ 335,219 34.90 % $ 307,797 33.69 % $ 334,225 35.88 % $
339,266 37.47 % $ 290,294 36.92 % Interest-bearing demand deposits
123,876 12.90 127,980 14.00 120,400 12.93 110,294 12.18 127,504
16.21 Savings and money market 149,679 15.59 150,021 16.42 141,953
15.24 113,909 12.58 103,460 13.16 CDARS-time deposit 67,540 7.03
73,017 7.99 67,213 7.22 90,523 10.00 127,669 16.24 CDARS-non
maturity deposits 35,238 3.67 15,517 1.70 15,501 1.66 15,647 1.73
15,632 1.99 Brokered deposits 106,150 11.05 103,390 11.31 117,598
12.63 113,402 12.53 13,213 1.68 Time deposits 142,755
14.86 136,022 14.89
134,545 14.44 122,361
13.51 108,547 13.80 Total
Deposits $ 960,457 100.00 % $ 913,744 100.00 %
$ 931,435 100.00 % $ 905,402 100.00 %
$ 786,319 100.00 %
Yield on Average Earning Assets and Rates on
Average Interest-Bearing Liabilities Three Months Ended
March 31, 2016
March 31, 2015 Average Income /
Yield / Average Income /
Yield / (Dollars In Thousands)
Balance
Expense Rate Balance
Expense Rate Assets:
Interest-earning assets: Securities $ 176,332 $ 1,035 2.35 %
$ 147,468 $ 815 2.21 % Loans held for sale 34,607 344 3.98 % 38,065
362 3.80 % Loans(1) 905,382 10,532 4.65 % 781,990 9,072 4.64 %
Interest-bearing balances and federal funds sold 52,862
70 0.53 % 46,828
27 0.23 %
Total interest-earning assets
1,169,183 11,981 4.10 %
1,014,351
10,276 4.05 %
Noninterest-earning assets: Cash and
due from banks 11,707 9,906 Premises, land and equipment 6,676
6,898 Other assets 34,878 32,478 Less: allowance for loan losses
(13,580 ) (13,337 )
Total noninterest-earning
assets 39,681 35,945
Total Assets $ 1,208,864 $
1,050,296 Liabilities and Shareholders'
Equity: Interest-bearing deposits: Interest-bearing
demand deposits $ 124,982 $ 107 0.34 % $ 120,685 $ 65 0.22 % Money
market deposit accounts 142,221 98 0.28 % 110,503 54 0.20 % Savings
accounts 34,698 47 0.54 % 7,848 7 0.36 % Time deposits
310,120 898 1.16 % 260,431
607 0.93 %
Total interest-bearing
deposits 612,021 1,150 0.75 %
499,467
733 0.59 %
Borrowings: FHLB short-term borrowings
86,429 123 0.57 % 157,555 94 0.24 % Securities sold under
agreements to repurchase and federal funds purchased 17,442 4 0.09
% 22,695 5 0.09 % FHLB long-term borrowings 64,615
154 0.95 % 556 2
1.44 %
Total borrowings 168,486
281 0.67 %
180,806
101 0.22 %
Total interest-bearing
deposits and borrowings 780,507 1,431 0.73 %
680,273 834 0.49 %
Noninterest-bearing
liabilities: Demand deposits 308,507 260,638 Other liabilities
8,782 8,631
Total liabilities
1,097,796 949,542 Shareholders' Equity 111,068
100,754
Total Liabilities and Shareholders'
Equity $ 1,208,864 $
1,050,296 Interest Spread(2) 3.37 % 3.56 %
Net Interest Margin(3) $ 10,550 3.61 % $ 9,442
3.72 %
(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 March 31,
2016 Banking Banking Management
Other Eliminations Totals (In Thousands)
Revenues: Interest income $ 11,756 $ 344 $ - $ 4 $ (123 ) $ 11,981
Gain on sale of loans - 3,830 - - - 3,830 Other revenues 936
1,247 778 347 (319 )
2,989 Total revenues 12,692 5,421 778
351 (442 ) 18,800
Expenses: Interest expense 1,436 51 - 67 (123 ) 1,431 Salaries and
employee benefits 3,923 3,185 560 - - 7,668 Other expenses
1,840 1,069 291 580 (319
) 3,461 Total operating expenses 7,199 4,305
851 647 (442 ) 12,560
Income (loss) before income taxes $ 5,493 $ 1,116 $ (73 ) $
(296 ) $ - $ 6,240 Total assets $ 1,185,681 $ 32,716
$ 2,686 $ 17,283 $ (21,331 ) $ 1,217,035
Three Months Ended Commercial Mortgage
Wealth Consolidated March 31, 2015
Banking Banking Management Other
Eliminations Totals (In Thousands) Revenues: Interest
income $ 10,080 $ 362 $ - $ 3 $ (169 ) $ 10,276 Gain on sale of
loans - 3,571 - - - 3,571 Other revenues 719 1,425
545 346 (301 ) 2,734
Total revenues 10,799 5,358 545
349 (470 ) 16,581 Expenses: Interest
expense 838 95 - 64 (169 ) 828 Salaries and employee benefits 3,227
3,026 464 - - 6,717 Other expenses 1,804 1,225
213 594 (301 ) 3,535 Total
operating expenses 5,869 4,346 677
658 (470 ) 11,080 Income (loss)
before income taxes $ 4,930 $ 1,012 $ (132 ) $ (309 ) $ - $
5,501 Total assets $ 1,010,045 $ 60,042 $ 1,284 $
15,741 $ (17,910 ) $ 1,069,202
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Access National CorporationMichael Clarke, 703-871-2100
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