Access National Corporation (NASDAQ:ANCX), holding company for Access National Bank, reported net income for the third quarter of 2008 of $769 thousand, or $.07 per diluted share compared to $244 thousand or $.02 per diluted share for the same period in 2007. For the nine months ended September 30, 2008, net income was $3.5 million, or $.34 diluted earnings per share compared to $3.1 million or $.25 diluted earnings per share in 2007. This represents the 33rd consecutive quarter of profitability over the company's 35 quarter history.
During the third quarter, approximately $1.9 million was added to the allowance for loan losses and $3.5 million of non-performing loans were charged off or written down. The allowance for loan losses totaled approximately $7.7 million at September 30, 2008 and represents or 1.54% of loans held for investment.
Non-performing assets (NPA) totaled $7.7 million or 1.42% of loans held for investment and loans held for sale plus real estate owned. NPA consists of two commercial real estate loans totaling $5.8 million, a $1.2 million residential construction loan, one residential real estate equity loan totaling $46 thousand and one foreclosed residential property in the amount of $653 thousand. Subsequent to September 30, 2008, the foreclosed property was sold.
Assets totaled $656.5 million at September 30, 2008 compared to $622.4 million at December 31, 2007. Loans held for investment totaled $498.2 million, an increase of approximately $20.6 million from $477.6 million at December 31, 2007.
Total deposits increased $14.8 million from December 31, 2007 and totaled $488.2 million at September 30, 2008. Non-interest bearing deposits increased 42% or $25.1 million while time deposits increased $16.4 million. Savings and other interest bearing deposits decreased $26.7 million.
Net interest margin increased to 3.70% for the three months ended September 30, 2008 compared to 3.17% for the same period in 2007. For the nine month period, net interest margin improved from 3.13% in 2007 to 3.48% in 2008.
The company's mortgage banking segment reported year to date origination volume of $613.2 million compared to $878.4 million in 2007, a 30.2% decline in volume. The mortgage banking segment has been profitable in each of the three quarters of 2008 and management believes that trend will continue.
Access National Corporation and its subsidiary bank continue to exceed standards of being "Well Capitalized" as defined under banking regulations.
Access National Corporation is the parent company of Access National Bank, an independent nationally chartered bank. The Bank, established in December 1999, serves the business community in the greater DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. The shares of Access National Corporation are traded on the NASDAQ National 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 files.
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Access National Corporation | |||||||||||
Selected Financial Data | |||||||||||
(In Thousands, Except for Share Data) | |||||||||||
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September 30 | September 30 | Percent | |||||||||
 |  |  | 2008 |  |  |  | 2007 |  |  | Change | |
Period end balances | |||||||||||
Assets | $ | 656,461 | $ | 642,664 | 2 | % | |||||
Loans held for investment | 498,190 | 488,996 | 2 | % | |||||||
Loans held for sale | 46,644 | 26,363 | 77 | % | |||||||
Interest bearing deposits & federal funds sold | 24,333 | 7,475 | 226 | % | |||||||
Investment Securities (at fair value) | 59,614 | 94,621 | -37 | % | |||||||
Earning assets | 627,716 | 617,510 | 2 | % | |||||||
Interest bearing deposits | 403,659 | 391,923 | 3 | % | |||||||
Deposits | 488,211 | 454,569 | 7 | % | |||||||
Shareholder's equity | 55,870 | 58,582 | -5 | % | |||||||
Mortgage loan originations | 613,208 | 878,399 | -30.2 | % | |||||||
Quarterly averages | |||||||||||
Assets | 618,006 | 657,949 | -6.1 | % | |||||||
Loans held for investment | 500,390 | 484,965 | 3.2 | % | |||||||
Loans held for sale | 18,954 | 44,937 | -57.8 | % | |||||||
Interest bearing deposits & federal funds sold | 17,796 | 13,827 | 28.7 | % | |||||||
Investment Securities | 63,954 | 94,538 | -32.4 | % | |||||||
Earning assets | 600,949 | 638,853 | -5.9 | % | |||||||
Interest bearing deposits | 378,809 | 406,361 | -6.8 | % | |||||||
Deposits | 444,527 | 467,322 | -4.9 | % | |||||||
Repurchase agreements & federal funds | 13,930 | 13,545 | 2.8 | % | |||||||
Commercial paper & other short term borrowings | 19,064 | 13,092 | 45.6 | % | |||||||
FHLB borrowings | 74,859 | 86,818 | -13.8 | % | |||||||
Shareholders' equity | 56,858 | 63,641 | -10.7 | % | |||||||
Averages (TTM) | |||||||||||
Assets | 618,706 | 651,552 | -5 | % | |||||||
Loans held for investment | 482,647 | 457,854 | 5 | % | |||||||
Loans held for sale | 24,612 | 61,442 | -60 | % | |||||||
Interest bearing deposits & federal funds sold | 24,982 | 12,802 | 95 | % | |||||||
Investment Securities | 69,545 | 100,067 | -30.5 | % | |||||||
Earning assets | 601,347 | 632,738 | -5 | % | |||||||
Interest bearing deposits | 386,395 | 376,688 | 3 | % | |||||||
Total Deposits | 448,227 | 439,303 | 2 | % | |||||||
Repurchase agreements & federal funds | 14,091 | 11,299 | 25 | % | |||||||
Commercial paper & other short term borrowings | 18,202 | 18,510 | -2 | % | |||||||
FHLB borrowings | 71,566 | 104,545 | -32 | % | |||||||
Shareholders' equity | 57,684 | 63,465 | -9 | % | |||||||
Earnings | |||||||||||
Net income (QTR) | 769 | 244 | 215 | % | |||||||
Net income (YTD) | 3,522 | 3,077 | 14 | % | |||||||
Net income (TTM) | 4,148 | 5,340 | -22 | % | |||||||
Banking segment - income before taxes | 3,521 | 7,352 | -52 | % | |||||||
Mortgage segment - income before taxes | 2,985 | (2,006 | ) | -249 | % | ||||||
Other segments - income before taxes (1) | (1,021 | ) | (877 | ) | 16 | % | |||||
Consolidated - income before taxes | 5,485 | 4,469 | 23 | % | |||||||
Common shares outstanding | 10,212,169 | 11,072,854 | -7.8 | % | |||||||
Book value | $ | 5.47 | $ | 5.29 | 3 | % | |||||
Basic EPS | $ | 0.34 | $ | 0.26 | 31 | % | |||||
Diluted EPS | $ | 0.34 | $ | 0.25 | 36 | % | |||||
Average outstanding shares | |||||||||||
Basic | 10,323,060 | 11,830,506 | -12.7 | % | |||||||
Diluted | 10,463,230 | 12,104,525 | -13.6 | % | |||||||
Return on average assets (QTR annualized) | 0.50 | % | 0.15 | % | 235.5 | % | |||||
Return on average equity (QTR annualized) | 5.41 | % | 1.53 | % | 252.8 | % | |||||
Average assets (YTD) | 613,886 | 656,002 | -6.4 | % | |||||||
Return on average assets (YTD annualized) | 0.76 | % | 0.63 | % | 22.3 | % | |||||
Average shareholders equity (YTD) | 57,379 | 64,446 | -11.0 | % | |||||||
Return on average equity (YTD annualized) | 8.18 | % | 6.37 | % | 28.6 | % | |||||
Return on average assets (TTM) | 0.67 | % | 0.82 | % | -18 | % | |||||
Return on average equity (TTM) | 7.19 | % | 8.41 | % | -15 | % | |||||
Net Interest Margin - QTR annualized | 3.70 | % | 3.17 | % | 16.6 | % | |||||
Net Interest Margin - YTD annualized | 3.48 | % | 3.13 | % | 11.0 | % | |||||
Efficiency ratio - bank only | 56.12 | % | 50.59 | % | 10.9 | % | |||||
Efficiency ratio - consolidated | 75.73 | % | 83.70 | % | -9.5 | % | |||||
Asset quality | |||||||||||
Allowance for loan losses | 7,665 | 7,152 | 7 | % | |||||||
Allowance for loan losses/loans held for investment | 1.54 | % | 1.46 | % | 5.2 | % | |||||
Allowance for loan losses-loans held for sale | 784 | 684 | 14.6 | % | |||||||
Non-performing assets | 7,744 | 4,287 | 80.6 | % | |||||||
Non-performing assets/Total loans plus OREO | 1.42 | % | 0.83 | % | 71.4 | % | |||||
Net charge-offs to average loans (YTD) | 0.73 | % | 0.00 | % | 100.0 | % | |||||
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(1)Access National Corp. & Access Real Estate LLC | |||||||||||
(TTM - Trailing Twelve Months) |
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Access National Corporation | ||||||
Consolidated Balance Sheet | ||||||
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September 30 | December 31 | |||||
2008 | 2007 | |||||
(In Thousands) | (unaudited) |  | ||||
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ASSETS | ||||||
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Cash and due from banks | $ | 8,352 | $ | 6,238 | ||
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Interest bearing balances and federal funds sold | 24,333 | 13,266 | ||||
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Securities available for sale | 59,614 | 73,558 | ||||
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Loans held for sale- Carried at fair value in 2008 | 46,644 | 39,144 | ||||
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Loans held for investment net of allowance for loan losses of $7,665 and $7,462 respectively | 490,525 | 470,136 | ||||
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Premises, Equipment and Land | 9,323 | 9,712 | ||||
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Other assets | 17,670 | 10,322 | ||||
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Total assets | $ | 656,461 | $ | 622,376 | ||
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
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LIABILITIES | ||||||
Non-interest bearing deposits | $ | 84,552 | $ | 59,416 | ||
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Savings and interest bearing deposits | 116,085 | 142,820 | ||||
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Time Deposits |  | 287,575 |  | 271,182 | ||
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Total deposits | 488,212 | 473,418 | ||||
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Short-term borrowings | 42,832 | 41,676 | ||||
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Long-term borrowings | 52,673 | 39,524 | ||||
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Subordinated debentures | 6,186 | 6,186 | ||||
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Other liabilities and accrued expenses | 10,688 | 3,611 | ||||
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Total Liabilities |  | 600,591 |  | 564,415 | ||
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SHAREHOLDERS' EQUITY | ||||||
Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding, 10,212,169 and 10,840,730 shares respectively | 8,527 | 9,052 | ||||
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Surplus | 17,278 | 21,833 | ||||
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Retained earnings | 30,037 | 26,846 | ||||
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Accumulated other comprehensive income (loss) | 28 | 230 | ||||
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Total shareholders' equity |  | 55,870 |  | 57,961 | ||
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Total liabilities and shareholders' equity | $ | 656,461 | $ | 622,376 |
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Access National Corporation | |||||||||
Consolidated Statement of Operations | |||||||||
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Three Months | Nine Months | Nine Months | |||||||
Ended 09/30/08 | Ended 09/30/08 | Ended 09/30/07 | |||||||
(In Thousands Except for Share Data) | (unaudited) | (unaudited) | (unaudited) | ||||||
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INTEREST INCOME | |||||||||
Interest and fees on loans | $ | 8,849 | $ | 26,378 | $ | 30,568 | |||
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Interest on federal funds sold & bank balances | 82 | 443 | 527 | ||||||
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Interest on securities |  | 796 |  | 2,436 |  | 3,294 | |||
Total interest income | 9,727 | 29,257 | 34,389 | ||||||
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INTEREST EXPENSE | |||||||||
Interest on deposits | 3,243 | 10,812 | 13,465 | ||||||
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Interest on other borrowings |  | 929 |  | 2,859 |  | 5,872 | |||
Total interest expense |  | 4,172 |  | 13,671 |  | 19,337 | |||
Net interest income | 5,555 | 15,586 | 15,052 | ||||||
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Provision for loan losses |  | 1,855 |  | 3,662 |  | 1,698 | |||
Net interest income after provision for loan losses | 3,700 | 11,924 | 13,354 | ||||||
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NONINTEREST INCOME | |||||||||
Service charges and fees | 106 | 322 | 278 | ||||||
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Gain on sale of loans | 4,828 | 17,921 | 15,283 | ||||||
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Other Income |  | 706 |  | 3,861 |  | 6,637 | |||
Total noninterest income | 5,640 | 22,104 | 22,198 | ||||||
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NONINTEREST EXPENSE | |||||||||
Salaries and benefits | 4,490 | 15,928 | 15,572 | ||||||
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Occupancy and equipment | 677 | 1,881 | 1,844 | ||||||
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Other operating expense |  | 2,980 |  | 10,734 |  | 13,667 | |||
Total noninterest expense |  | 8,147 |  | 28,543 |  | 31,083 | |||
Income before income tax | 1,193 | 5,485 | 4,469 | ||||||
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Income tax expense |  | 424 |  | 1,963 |  | 1,392 | |||
NET INCOME | $ | 769 | $ | 3,522 | $ | 3,077 | |||
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Earnings per common share: | |||||||||
Basic | $ | 0.08 | $ | 0.34 | $ | 0.26 | |||
Diluted | $ | 0.07 | $ | 0.34 | $ | 0.25 | |||
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Average outstanding shares: | |||||||||
Basic | 10,179,177 | 10,323,060 | 11,830,506 | ||||||
Diluted | 10,278,763 | 10,463,230 | 12,104,525 |