ANCX Access National Corp.

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported second quarter 2016 net income of $4.9 million, or $0.46 per common share. This represents the Corporation’s 64th consecutive quarterly profit over its 66 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 August 1, 2016 and payable on August 25, 2016. The routine dividend affirms Management’s favorable outlook on forward earnings and capital adequacy.

According to CEO Michael Clarke, “This announcement of record earnings provides another opportunity to highlight the quality growth opportunities in front of our company. Our confidence and enthusiasm for those opportunities recently resulted in expansion of our executive talent by adding Bank President Mark Moore and the promotion of Robert Shoemaker to Chief Banking Officer. This increased executive capacity enables a proactive and high touch approach in nurturing middle market business relationships. Our success in serving this market is illustrated by the elevated concentrations of commercial loans and commercial demand deposits in the loan and deposit portfolios.” He continued, “There should be no doubt that we are a commercial bank built for business, intent on being the bank of choice for middle market companies.”

Second quarter 2016 pretax earnings rose by $1.4 million or 23.5% when compared to second quarter 2015 pretax earnings. Second quarter 2016 pretax income for the banking segment rose $636 thousand from second quarter 2015 due to increases in net interest income of $962 thousand and other income of $558 thousand due in part to cost recoveries on a non-performing asset. These increases were partially offset by an increase in salaries and benefits of $897 thousand due to staffing expansion. The mortgage segment’s pretax earnings increase of $785 thousand over second 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 3.67% to 3.51% when comparing second quarter 2015 to second quarter 2016. On a linked quarter basis, the margin decreased from 3.61% for the three months ended March 31, 2016 when compared to 3.51% for the three months ended June 30, 2016.

On a consolidated basis, the Corporation reported annualized return on average assets of 1.54% and 1.44% for the three month periods ended June 30, 2016 and 2015, respectively. Meanwhile, the annualized return on average equity was 17.00% and 15.54% for the three month periods ended June 30, 2016 and 2015, respectively.

Total assets were $1.3 billion at June 30, 2016 and grew $126.3 million and $138.7 million when compared to December 31, 2015 and June 30, 2015, respectively. The $126.3 million growth in assets since December 31, 2015 was due mainly to an increase in loans held for investment of $55.3 million and a $41.9 million increase in interest-bearing balances. Additionally, loans held for sale increased $11.0 million while investment securities increased $8.3 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 13.0%.

Total deposits at June 30, 2016 were $1.05 billion, an increase of $130.8 million and $139.1 million when compared to December 31, 2015 and June 30, 2015, respectively. At June 30, 2016, non-interest bearing deposits were $392.3 million, an increase of $84.5 million from the December 31, 2015 figure and an increase of $53.0 million from the June 30, 2015 figure. The year-over-year growth rate in non-interest bearing deposits of 15.6% was due to management’s continued focus on expanding business banking relationships. Interest-bearing deposits increased to $652.3 million at June 30, 2016, an increase of $46.3 million since December 31, 2015 and an increase of $86.1 million when compared to the June 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 $92.7 million and an increase in time deposits of $42.1 million. These increases were offset by a $62.0 million reduction in wholesale funding when comparing June 30, 2016 to June 30, 2015.

Non-performing assets (NPAs) decreased to $1.9 million at June 30, 2016 from $7.4 million at June 30, 2015, representing 0.14% and 0.64% of total assets, respectively. This $5.5 million decrease in NPAs was due to the settlement of one commercial real estate – owner occupied loan. Access Real Estate, LLC also had other real estate owned with a carrying value of $500 thousand at June 30, 2016. The allowance for loan loss was $13.8 million and $13.5 million at June 30, 2016 and June 30, 2015, respectively, and represented 1.47% and 1.62% of total loans held for investment at June 30, 2016 and 2015, respectively.

Book value per common share increased from $9.94 at June 30, 2015 to $11.19 at June 30, 2016. The tangible common equity ratio for Access National Corporation and its subsidiary bank was 8.94% at June 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                               June 30, December 31, June 30, 2016 2015 2015 (In Thousands Except for Share and Per Share Data)     (Unaudited)           (Unaudited)   ASSETS   Cash and due from banks $ 14,994 $ 11,291 $ 12,314   Interest-bearing balances and federal funds sold 66,541 24,598 79,186   Investment securities: Available-for-sale, at fair value 173,558 160,162 138,617 Held-to-maturity, at amortized cost (fair value of $9,560, $14,314 and $14,331)   9,228   14,287     14,299   Total investment securities 182,786 174,449 152,916   Restricted Stock, at amortized cost 7,159 7,259 7,471   Loans held for sale - at fair value 55,116 44,135 50,297  

Loans held for investment net of allowance for loan losses of $13,834, $13,563 and $13,509, respectively

928,895 873,915 820,733   Premises, equipment and land, net 6,822 6,689 6,909   Other assets 42,558 36,212 36,296                 Total assets $ 1,304,871 $ 1,178,548   $ 1,166,122     LIABILITIES AND SHAREHOLDERS' EQUITY   LIABILITIES Noninterest-bearing deposits $ 392,269 $ 307,797 $ 339,266   Savings and interest-bearing deposits 365,664 293,711 240,060   Time deposits   286,612   312,236     326,076     Total deposits 1,044,545 913,744 905,402   Short-term borrowings 56,763 91,129 138,079   Long-term borrowings 75,000 55,000 10,000   Other liabilities and accrued expenses 10,177 9,537 8,126                 Total Liabilities   1,186,485   1,069,410     1,061,607     SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,583,594, 10,544,751 and 10,519,376, respectively

8,837 8,805 8,783   Additional paid in capital 20,625 19,953 19,491   Retained earnings 87,188 81,385 76,682   Accumulated other comprehensive income (loss), net 1,736 (1,005 ) (441 )                 Total shareholders' equity   118,386   109,138     104,515                   Total liabilities and shareholders' equity $ 1,304,871 $ 1,178,548   $ 1,166,122                                   Access National Corporation Consolidated Statement of Operations                                       Three Months Ended     Six Months Ended June 30, 2016     June 30, 2015 June 30, 2016     June 30, 2015 (In Thousands Except for Share and Per Share Data)     (unaudited)     (unaudited)   INTEREST INCOME Interest and fees on loans $ 11,354 $ 9,971 $ 22,230 $ 19,405   Interest on federal funds sold and bank balances 96 34 166 61   Interest and dividends on securities   886   782   1,921   1,597 Total interest income 12,336 10,787 24,317 21,063   INTEREST EXPENSE Interest on deposits 1,275 867 2,425 1,600   Interest on other borrowings   300   113   581   214 Total interest expense   1,575   980   3,006   1,814 Net interest income 10,761 9,807 21,311 19,249   Provision for loan losses   120   150   120   150 Net interest income after provision for loan losses 10,641 9,657 21,191 19,099   NONINTEREST INCOME Service charges and fees 239 218 499 415   Gain on sale of loans 7,273 5,705 11,103 9,276   Other Income   1,661   1,158   4,390   3,695

Total noninterest income

9,173 7,081 15,992 13,386   NONINTEREST EXPENSE Salaries and benefits 8,407 6,999 16,075 13,716   Occupancy and equipment 749 742 1,510 1,496   Other operating expense   3,147   2,913   5,847   5,688 Total noninterest expense   12,303   10,654   23,432   20,900 Income before income tax 7,511 6,084 13,751 11,585   Income tax expense   2,633   2,100   4,778   4,028 NET INCOME   4,878   3,984   8,973   7,557   Earnings per common share: Basic $ 0.46 $ 0.38 $ 0.85 $ 0.72 Diluted $ 0.46 $ 0.38 $ 0.85 $ 0.72   Average outstanding shares: Basic 10,576,516 10,518,939 10,564,833 10,496,152 Diluted 10,639,167 10,590,882 10,622,763 10,554,052     Performance and Capital Ratios                                           (Dollars In Thousands Except for Share and Per Share Data)     Three MonthsEndedJune 30,2016     Three MonthsEndedMarch 31,2016    

Six MonthsEndedJune 30,

2016

   

Six MonthsEndedJune 30,

2015

   

Twelve MonthsEndedDecember 31,

2015

                    Return on average assets (annualized) 1.54% 1.35% 1.45% 1.40% 1.39% Return on average equity (annualized) 17.00% 14.75% 15.89% 14.87% 14.83% Net interest margin 3.51% 3.61% 3.56% 3.69% 3.68% Efficiency ratio - Bank only 50.10% 51.20% 50.64% 49.54% 50.41% Total average equity to earning assets 9.36% 9.50% 9.43% 9.75% 9.67% Tangible common equity ratio 8.94% 9.23% 8.94% 8.85% 9.12%   Averages Assets $ 1,268,504 $ 1,208,864 $ 1,238,662 $ 1,079,322 $ 1,112,470 Loans held for investment 915,218 905,382 910,300 798,281 824,288 Loans held for sale 45,357 34,607 39,982 48,667 42,076 Interest-bearing deposits & federal funds sold 84,008 52,862 68,435 50,447 52,716 Investment securities 182,751 176,448 179,600 145,001 156,010 Earning assets 1,225,910 1,169,183 1,197,547 1,042,337 1,075,284 Interest-bearing deposits 657,363 612,021 634,692 517,669 563,112 Total deposits 1,005,419 920,528 962,973 799,788 866,695 Repurchase agreements & federal funds purchased 13,981 17,442 15,712 22,600 22,017 FHLB short term borrowings 51,154 86,429 68,791 141,558 91,992 FHLB long-term borrowings 74,341 64,615 69,478 5,304 18,890 Equity $ 114,748 $ 111,068 $ 112,908 $ 101,662 $ 103,948   Allowance for loan losses/loans held for investment 1.47% 1.49% 1.47% 1.62% 1.53% Total NPA $ 1,866 $ 7,349 $ 1,866 $ 7,427 $ 7,417 NPA to total assets 0.14% 0.60% 0.14% 0.64% 0.63%   Mortgage loan originations and brokered loans $ 154,022 $ 106,622 $ 260,644 $ 259,764 $ 484,747 Gain on sale of mortgage loans net hedging activity $ 6,579 $ 3,235 $ 9,814 $ 9,017 $ 18,528 Allowance for losses on mortgage loans sold $ 1,029 $ 1,029 $ 1,029 $ 1,187 $ 1,029   Wealth Management segment - assets under management $ 625,000 $ 611,000 $ 625,000 $ 546,000 $ 611,000   Book value per common share $ 11.19 $ 10.79 $ 11.19 $ 9.94 $ 10.35                                                                           Composition of Loan Portfolio                                                         June 30, 2016     March 31, 2016     December 31, 2015     June 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 $ 235,735 25.01 % $ 217,954 23.83 % $ 219,877 24.77 % $ 222,012 26.61 % Commercial real estate - non-owner occupied 153,206 16.25 153,433 16.77 147,580 16.63 134,585 16.13 Residential real estate 208,311 22.10 202,858 22.18 201,447 22.70 198,418 23.79 Commercial 257,139 27.28 258,520 28.26 242,527 27.33 223,756 26.82 Real estate construction 79,200 8.39 72,055 7.88 66,003 7.44 47,037 5.64 Consumer   9,138     0.97     9,862     1.08     10,044     1.13     8,434     1.01   Total loans $ 942,729 100.00 % $ 914,682 100.00 % $ 887,478 100.00 % $ 834,242 100.00 % Less allowance for loan losses   13,834   13,614   13,563   13,509 $ 928,895 $ 901,068 $ 873,915 $ 820,733                                                     Composition of Deposits         June 30, 2016     March 31, 2016     December 31, 2015     June 30, 2015 (Dollars In Thousands)     Amount     Percentage of Total     Amount     Percentage of Total     Amount     Percentage of Total     Amount     Percentage of Total                                 Demand deposits $ 392,269 37.55 % $ 335,219 34.90 % $ 307,797 33.69 % $ 339,266 37.47 % Interest-bearing demand deposits 123,638 11.84 123,876 12.90 127,980 14.00 110,294 12.18 Savings and money market 206,566 19.78 149,679 15.59 150,021 16.42 113,909 12.58 CDARS time deposits 53,212 5.09 67,540 7.03 73,017 7.99 90,523 10.00 CDARS/ICS non-maturity deposits 35,247 3.37 35,238 3.67 15,517 1.70 15,647 1.73 Brokered deposits 69,139 6.62 106,150 11.05 103,390 11.31 113,402 12.53 Time deposits   164,474     15.75         142,755     14.86         136,022     14.89         122,361     13.51   Total Deposits $ 1,044,545     100.00 %     $ 960,457     100.00 %     $ 913,744     100.00 %     $ 905,402     100.00 %                                                     Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities Three Months Ended                                 June 30, 2016     June 30, 2015 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)     Balance     Expense     Rate     Balance     Expense     Rate   Assets: Interest-earning assets: Securities $ 181,327 $ 886 1.95 % $ 142,443 $ 782 2.20 % Loans held for sale 45,357 437 3.85 % 59,154 564 3.81 % Loans(1) 915,218 10,917 4.77 % 814,393 9,407 4.62 % Interest-bearing balances and federal funds sold   84,008         96     0.46 %   54,026         34     0.25 % Total interest-earning assets 1,225,910 12,336 4.03 % 1,070,016 10,787 4.03 % Noninterest-earning assets: Cash and due from banks 12,513 11,244 Premises, land and equipment 6,959 6,971 Other assets 36,774 33,246 Less: allowance for loan losses   (13,652 )   (13,448 )

Total noninterest-earning assets

  42,594     38,013   Total Assets $ 1,268,504   $ 1,108,029     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 133,147 $ 126 0.38 % $ 111,282 $ 62 0.22 % Money market deposit accounts 190,324 167 0.35 % 111,765 55 0.20 % Savings accounts 32,520 43 0.53 % 10,098 10 0.40 % Time deposits   301,372         939     1.25 %   302,526         740     0.98 % Total interest-bearing deposits 657,363 1,275 0.78 % 535,671 867 0.65 % Borrowings: FHLB short-term borrowings 51,154 88 0.69 % 125,736 77 0.24 % Securities sold under agreements to repurchase and federal funds purchased 13,981 3 0.09 % 22,506 6 0.11 % FHLB long-term borrowings   74,341         209     1.12 %   10,000         30     1.20 % Total borrowings   139,476         300     0.86 %   158,242         113     0.29 % Total interest-bearing deposits and borrowings 796,839 1,575 0.79 % 693,913 980 0.56 % Noninterest-bearing liabilities: Demand deposits 348,056 303,364 Other liabilities   8,861     8,192   Total liabilities 1,153,756 1,005,469 Shareholders' Equity   114,748     102,560   Total Liabilities and Shareholders' Equity $ 1,268,504   $ 1,108,029     Interest Spread(2) 3.23 % 3.47 %   Net Interest Margin(3) $ 10,761     3.51 % $ 9,807     3.67 %                                                        

(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 Six Months Ended                                           June 30, 2016   June 30, 2015 Average Income / Yield / Average Income / Yield / (Dollars In Thousands)   Balance   Expense   Rate   Balance   Expense   Rate   Assets: Interest-earning assets: Securities $ 178,830 $ 1,921 2.15 % $ 144,942 $ 1,597 2.20 % Loans held for sale 39,982 781 3.91 % 48,667 926 3.81 % Loans(1) 910,300 21,449 4.71 % 798,281 18,479 4.63 % Interest-bearing balances and federal funds sold   68,435       166   0.49 %   50,447       61   0.24 % Total interest-earning assets 1,197,547 24,317 4.06 % 1,042,337 21,063 4.04 % Noninterest-earning assets: Cash and due from banks 12,110 10,579 Premises, land and equipment 6,843 6,935 Other assets 35,778 32,864 Less: allowance for loan losses   (13,616 )   (13,393 ) Total noninterest-earning assets   41,115     36,985   Total Assets $ 1,238,662   $ 1,079,322     Liabilities and Shareholders' Equity: Interest-bearing deposits: Interest-bearing demand deposits $ 129,064 $ 233 0.36 % $ 115,958 $ 127 0.22 % Money market deposit accounts 166,273 265 0.32 % 111,137 109 0.20 % Savings accounts 33,609 90 0.54 % 8,979 17 0.38 % Time deposits   305,746       1,837   1.20 %   281,595       1,347   0.96 % Total interest-bearing deposits 634,692 2,425 0.76 % 517,669 1,600 0.62 % Borrowings: FHLB short-term borrowings 68,791 211 0.61 % 141,558 171 0.24 % Securities sold under agreements to repurchase and federal funds purchased 15,712 7 0.09 % 22,600 11 0.10 % FHLB long-term borrowings   69,478       363   1.04 %   5,304       32   1.21 % Total borrowings   153,981       581   0.75 %   169,462       214   0.25 % Total interest-bearing deposits and borrowings 788,673 3,006 0.76 % 687,131 1,814 0.53 % Noninterest-bearing liabilities: Demand deposits 328,281 282,119 Other liabilities   8,800     8,410   Total liabilities 1,125,754 977,660 Shareholders' Equity   112,908     101,662   Total Liabilities and Shareholders' Equity $ 1,238,662   $ 1,079,322     Interest Spread(2) 3.30 % 3.51 %   Net Interest Margin(3) $ 21,311   3.56 % $ 19,249   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.

              Three Months Ended Commercial Mortgage Wealth Consolidated June 30, 2016   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 12,092 $ 437 $ - $ 6 $ (199 ) $ 12,336 Gain on sale of loans - 7,273 - - - 7,273 Other revenues   1,290   (134 )   718     342     (316 )   1,900 Total revenues   13,382   7,576     718     348     (515 )   21,509   Expenses: Interest expense 1,580 127 - 67 (199 ) 1,575 Salaries and employee benefits 4,165 3,714 528 - - 8,407 Other expenses   1,867   1,567     259     639     (316 )   4,016 Total operating expenses   7,612   5,408     787     706     (515 )   13,998   Income (loss) before income taxes $ 5,770 $ 2,168   $ (69 ) $ (358 ) $ -   $ 7,511   Total assets $ 1,245,441   $ 60,831     $ 2,861     $ 17,772     $ (22,034 ) $ 1,304,871     Three Months Ended Commercial Mortgage Wealth Consolidated June 30, 2015   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 10,533 $ 564 $ - $ 4 $ (314 ) $ 10,787 Gain on sale of loans - 5,705 - - - 5,705 Other revenues   732   (79 )   679     360     (316 )   1,376 Total revenues   11,265   6,190     679     364     (630 )   17,868   Expenses: Interest expense 983 241 (6 ) 76 (314 ) 980 Salaries and employee benefits 3,268 3,182 549 - - 6,999 Other expenses   1,880   1,384     260     597     (316 )   3,805 Total operating expenses   6,131   4,807     803     673     (630 )   11,784   Income (loss) before income taxes $ 5,134 $ 1,383   $ (124 ) $ (309 ) $ -   $ 6,084   Total assets $ 1,113,304 $ 53,884   $ 1,290   $ 16,095   $ (18,451 ) $ 1,166,122               Six Months Ended Commercial Mortgage Wealth Consolidated June 30, 2016   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 23,848 $ 781 $ - $ 10 $ (322 ) $ 24,317 Gain on sale of loans - 11,103 - - - 11,103 Other revenues   2,226   1,113   1,496     689     (635 )   4,889 Total revenues   26,074   12,997   1,496     699     (957 )   40,309   Expenses: Interest expense 3,016 178 - 134 (322 ) 3,006 Salaries and employee benefits 8,088 6,899 1,088 - - 16,075 Other expenses   3,707   2,636   550     1,219     (635 )   7,477 Total operating expenses   14,811   9,713   1,638     1,353     (957 )   26,558   Income (loss) before income taxes $ 11,263 $ 3,284 $ (142 ) $ (654 ) $ -   $ 13,751   Total assets $ 1,245,441   $ 60,831   $ 2,861     $ 17,772     $ (22,034 ) $ 1,304,871     Six Months Ended Commercial Mortgage Wealth Consolidated June 30, 2015   Banking Banking Management Other Eliminations Totals (In Thousands) Revenues: Interest income $ 20,613 $ 926 $ - $ 7 $ (483 ) $ 21,063 Gain on sale of loans - 9,276 - - - 9,276 Other revenues   1,451   1,346   1,224     706     (617 )   4,110 Total revenues   22,064   11,548   1,224     713     (1,100 )   34,449   Expenses: Interest expense 1,821 336 - 140 (483 ) 1,814 Salaries and employee benefits 6,495 6,208 1,013 - - 13,716 Other expenses   3,684   2,609   467     1,191     (617 )   7,334 Total operating expenses   12,000   9,153   1,480     1,331     (1,100 )   22,864   Income (loss) before income taxes $ 10,064 $ 2,395 $ (256 ) $ (618 ) $ -   $ 11,585   Total assets $ 1,113,304 $ 53,884 $ 1,290   $ 16,095   $ (18,451 ) $ 1,166,122  

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Access National CorporationMichael Clarke, 703-871-2100