Attached files
| file | filename |
|---|---|
| 8-K - ACCESS NATIONAL CORPORATION 8-K - ACCESS NATIONAL CORP | a50967823.htm |
Exhibit 99.1
Access National Surpasses $1 Billion in Assets, Reports Third Quarter Earnings and Increases Dividend
RESTON, Va.--(BUSINESS WIRE)--October 17, 2014--Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported third quarter 2014 net income of $4.9 million, or $0.47 per common share. This represents the Corporation’s 57th consecutive quarterly profit over its 59 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 $0.14 per share for holders of record as of November 03, 2014 and payable on November 25, 2014. This 7th increase in routine dividends over the last 2-years reflects Management’s continued favorable outlook on performance and capital.
Michael Clarke, CEO, is quoted as saying: “We take great satisfaction in having our 15-year old start-up successfully turn $10 million into $1 billion of assets. More importantly, our leadership and hard-working associates have touched the lives of thousands of business owners who provide real jobs and run successful businesses throughout the capital region. Our bank is about quality, not quantity. However, this ’quantity’ measure signals a validation that our value proposition is sustainable and resonates loudly with mid-sized businesses in our market. We are very grateful for and value our client relationships.”
Third quarter 2014 pretax earnings were impacted by two nonrecurring items, one being a $3.25 million release in the mortgage segment’s loan loss reserve while the other was a $707 thousand impairment recorded in connection with land held by Access Real Estate (ARE). The net impact of these two items created an increase in pretax earnings of $2.5 million and added $0.15 to the after-tax earnings per common share. The release in reserves was in connection with management’s on-going analysis of reserve requirements as well as information obtained by management during the third quarter of 2014 which led management to determine the amount of reserves on hand for the repurchase of mortgage loans sold in the secondary market was over funded. The write-down of the ARE property was in response to management’s intent to sell land that had originally been bought back in 2007 as a potential banking center. The impairment was effective upon receipt of an appraisal received in the third quarter of 2014.
Excluding the release of mortgage reserves and the write-down of the ARE property, net income before taxes increased $1.2 million when comparing the three months ended September 30, 2014 to the same period in 2013. This is the result of an increase in the banking segment pretax earnings of $698 thousand and an increase in mortgage segment pretax earnings of $533 thousand. The increase in the banking segment was due mainly to an increase in net interest income after provision for loan losses of $1.5 million when comparing the three month period ended September 30, 2014 to the same period in 2013. This increase in net interest income was offset by a decrease of $720 thousand in noninterest income due mainly to the gain on sale of SBA loans of $926 thousand that occurred in the third quarter 2013. The mortgage segment recorded pretax earnings of $482 thousand in the third quarter of 2014 excluding the mortgage reserve release compared to near breakeven performance in the third quarter of 2013.
Net interest margin for the first nine months of 2014 decreased from 3.83% to 3.78% when compared to the same period in 2013. On a linked quarter basis, the margin decreased to 3.78% for the three months ended September 30, 2014 compared to 3.80% for the three months ended June 30, 2014.
On a consolidated basis, the Corporation reported annualized return on average assets of 1.98% and 1.48% for the three and nine month periods ended September 30, 2014, respectively. Meanwhile, the annualized return on average equity was 20.37% and 14.65% for the three and nine months ended September 30, 2014, respectively.
Total assets at September 30, 2014 amounted to $1.02 billion compared to $847.2 million at December 31, 2013, an overall increase of $167.8 million. An increase in loans held for investment of $40.0 million, a $45.2 million increase in interest-bearing balances, a $48.9 million growth in investment securities, a growth in loans held for sale of $17.9 million, and a $17.5 million increase in other assets due to a $15 million BOLI purchase accounted for the majority of this increase. The third quarter of 2014 reflected loan growth in the commercial real estate – owner occupied, commercial real estate – non-owner occupied, and residential real estate categories of the loans held for investment portfolio.
Total deposits at September 30, 2014 increased $159.1 million from December 31, 2013 due mainly to an increase in demand deposits of $81.3 million, an increase in interest-bearing demand deposits of $41.2 million, and an increase in Certificate of Deposit Account Registry Service (CDARS) deposits totaling $49.2 million. Management continues to focus on expanding business banking relationships as evidenced by the 44.44% year-to-date growth in demand deposits.
Non-performing assets (NPAs) decreased 28.0% to $1.8 million at September 30, 2014 from $2.5 million at December 31, 2013, representing 0.18% and 0.30% of total assets, respectively. The Bank did not have other real estate owned at September 30, 2014 while ARE, as previously mentioned, had other real estate owned with a fair market value less costs to sell of $500 thousand. The allowance for loan losses was $13.2 million and $13.1 million or 1.82% and 1.91% of total loans held for investment as of September 30, 2014 and December 31, 2013, respectively.
Book value per common share increased from $8.79 at December 31, 2013 to $9.55 at September 30, 2014. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 9.8% at September 30, 2014, 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 | ||||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| (In Thousands Except for Share and Per Share Data) | (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 8,227 | $ | 8,117 | $ | 9,556 | ||||||
| Interest-bearing balances and federal funds sold | 60,480 | 15,302 | 62,221 | |||||||||
| Investment securities: | ||||||||||||
| Available-for-sale, at fair value | 127,422 | 76,552 | 72,692 | |||||||||
|
Held-to-maturity, at amortized cost (fair value of $14,248, $15,662 and $15,426) |
14,315 | 16,277 | 15,856 | |||||||||
| Total investment securities | 141,737 | 92,829 | 88,548 | |||||||||
| Restricted Stock, at amortized cost | 8,286 | 8,559 | 3,834 | |||||||||
| Loans held for sale - at fair value | 42,283 | 24,353 | 16,376 | |||||||||
|
Loans held for investment net of allowance for loan losses of $13,244, $13,136 and $13,025, respectively |
713,868 | 673,919 | 641,782 | |||||||||
| Premises, equipment and land, net | 7,036 | 8,389 | 8,401 | |||||||||
| Other assets | 33,176 | 15,714 | 15,846 | |||||||||
| Total assets | $ | 1,015,093 | $ | 847,182 | $ | 846,564 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| LIABILITIES | ||||||||||||
| Noninterest-bearing deposits | $ | 271,251 | $ | 189,908 | $ | 215,711 | ||||||
| Savings and interest-bearing deposits | 243,259 | 200,196 | 213,304 | |||||||||
| Time deposits | 217,561 | 182,868 | 246,309 | |||||||||
| Total deposits | 732,071 | 572,972 | 675,324 | |||||||||
| Short-term borrowings | 175,592 | 172,855 | 64,030 | |||||||||
| Other liabilities and accrued expenses | 7,690 | 10,221 | 10,792 | |||||||||
| Total Liabilities | 915,353 | 756,048 | 750,146 | |||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
|
Common stock $0.835 par value; 60,000,000 authorized; issued and outstanding,10,448,819, 10,369,420 and 10,321,858 shares, respectively |
8,725 | 8,659 | 8,619 | |||||||||
| Additional paid in capital | 18,260 | 17,320 | 16,973 | |||||||||
| Retained earnings | 73,781 | 67,121 | 72,324 | |||||||||
| Accumulated other comprehensive income (loss), net | (1,026 | ) | (1,966 | ) | (1,498 | ) | ||||||
| Total shareholders' equity | 99,740 | 91,134 | 96,418 | |||||||||
| Total liabilities and shareholders' equity | $ | 1,015,093 | $ | 847,182 | $ | 846,564 | ||||||
| Access National Corporation | ||||||||||||
| Consolidated Statement of Operations | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||
| (In Thousands Except for Share and Per Share Data) | (unaudited) | (unaudited) | ||||||||||
| INTEREST INCOME | ||||||||||||
| Interest and fees on loans | $ | 9,133 | $ | 8,262 | $ | 26,446 | $ | 25,468 | ||||
| Interest on federal funds sold and bank balances | 27 | 22 | 72 | 76 | ||||||||
| Interest on securities | 755 | 457 | 1,844 | 1,439 | ||||||||
| Total interest income | 9,915 | 8,741 | 28,362 | 26,983 | ||||||||
| INTEREST EXPENSE | ||||||||||||
| Interest on deposits | 757 | 799 | 2,272 | 2,766 | ||||||||
| Interest on other borrowings | 74 | 31 | 202 | 165 | ||||||||
| Total interest expense | 831 | 830 | 2,474 | 2,931 | ||||||||
| Net interest income | 9,084 | 7,911 | 25,888 | 24,052 | ||||||||
| Provision for loan losses | - | 450 | - | 675 | ||||||||
| Net interest income after provision for loan losses | 9,084 | 7,461 | 25,888 | 23,377 | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Service charges and fees | 167 | 188 | 525 | 495 | ||||||||
| Gain on sale of loans | 4,799 | 3,179 | 10,314 | 18,180 | ||||||||
| Other Income | 247 | 1,712 | 2,946 | 5,271 | ||||||||
| Total noninterest income | 5,213 | 5,079 | 13,785 | 23,946 | ||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and benefits | 5,860 | 5,672 | 16,699 | 20,540 | ||||||||
| Occupancy and equipment | 715 | 641 | 2,082 | 1,961 | ||||||||
| Other operating expense | 108 | 2,324 | 4,777 | 9,324 | ||||||||
| Total noninterest expense | 6,683 | 8,637 | 23,558 | 31,825 | ||||||||
| Income before income tax | 7,614 | 3,903 | 16,115 | 15,498 | ||||||||
| Income tax expense | 2,682 | 1,098 | 5,705 | 5,485 | ||||||||
| NET INCOME | 4,932 | 2,805 | 10,410 | 10,013 | ||||||||
| Earnings per common share: | ||||||||||||
| Basic | $ | 0.47 | $ | 0.27 | $ | 0.99 | $ | 0.97 | ||||
| Diluted | $ | 0.47 | $ | 0.27 | $ | 0.99 | $ | 0.96 | ||||
| Average outstanding shares: | ||||||||||||
| Basic | 10,440,986 | 10,306,865 | 10,414,384 | 10,312,017 | ||||||||
| Diluted | 10,476,050 | 10,389,064 | 10,459,283 | 10,402,178 | ||||||||
| Performance and Capital Ratios | ||||||||||||||||||||||||
| Three Months | Three Months | Three Months | Nine Months | Nine Months | Twelve Months | |||||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
| September 30, | June 30, | March 31, | September 30, | September 30, | December 31, | |||||||||||||||||||
| (Dollars In Thousands Except for Share and Per Share Data) | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | ||||||||||||||||||
| Return on average assets (annualized) | 1.98 | % | 1.30 | % | 1.10 | % | 1.48 | % | 1.56 | % | 1.55 | % | ||||||||||||
| Return on average equity (annualized) | 20.37 | % | 12.93 | % | 10.43 | % | 14.65 | % | 14.22 | % | 14.00 | % | ||||||||||||
| Net interest margin | 3.78 | % | 3.80 | % | 3.78 | % | 3.78 | % | 3.83 | % | 3.85 | % | ||||||||||||
| Efficiency ratio - Bank only | 47.37 | % | 48.44 | % | 50.98 | % | 48.86 | % | 50.78 | % | 49.50 | % | ||||||||||||
| Total average equity to earning assets | 10.08 | % | 10.38 | % | 10.75 | % | 10.39 | % | 11.22 | % | 11.28 | % | ||||||||||||
| Averages | ||||||||||||||||||||||||
| Assets | $ | 997,080 | $ | 944,452 | $ | 879,984 | $ | 940,934 | $ | 856,483 | $ | 854,572 | ||||||||||||
| Loans held for investment | 726,985 | 720,634 | 698,429 | 715,454 | 642,543 | 648,744 | ||||||||||||||||||
| Loans held for sale | 40,780 | 27,502 | 18,708 | 29,077 | 50,128 | 42,667 | ||||||||||||||||||
| Interest-bearing deposits & federal funds sold | 51,134 | 42,055 | 39,251 | 44,190 | 45,456 | 46,217 | ||||||||||||||||||
| Investment securities | 141,649 | 121,080 | 102,398 | 121,853 | 97,707 | 97,260 | ||||||||||||||||||
| Earning assets | 960,912 | 912,889 | 861,170 | 912,289 | 836,767 | 836,129 | ||||||||||||||||||
| Interest-bearing deposits | 499,967 | 499,435 | 441,757 | 480,599 | 512,009 | 485,860 | ||||||||||||||||||
| Total deposits | 747,780 | 743,037 | 638,211 | 710,077 | 699,076 | 678,531 | ||||||||||||||||||
| Repurchase agreements & federal funds purchased | 19,955 | 20,082 | 23,374 | 21,125 | 25,652 | 25,524 | ||||||||||||||||||
| Short term borrowings | 121,141 | 76,978 | 115,944 | 104,707 | 28,379 | 46,212 | ||||||||||||||||||
| Equity | $ | 96,862 | $ | 94,800 | $ | 92,593 | $ | 94,768 | $ | 93,876 | $ | 94,352 | ||||||||||||
| Banking segment - income before taxes | $ | 5,066 | $ | 4,704 | $ | 4,181 | $ | 13,951 | $ | 12,393 | $ | 17,330 | ||||||||||||
| Mortgage segment - income before taxes | $ | 3,732 | $ | 583 | $ | 3 | $ | 4,318 | $ | 4,645 | $ | 4,879 | ||||||||||||
| Wealth Management segment - loss before taxes | $ | (108 | ) | $ | (148 | ) | $ | (8 | ) | $ | (264 | ) | $ | (562 | ) | $ | (751 | ) | ||||||
| Other segments - loss before taxes | $ | (1,076 | ) | $ | (378 | ) | $ | (436 | ) | $ | (1,890 | ) | $ | (978 | ) | $ | (1,017 | ) | ||||||
| Allowance for loan losses/loans held for investment | 1.82 | % | 1.78 | % | 1.84 | % | 1.82 | % | 1.99 | % | 1.91 | % | ||||||||||||
| Total NPA | 1,826 | 1,872 | 2,510 | 1,826 | 2,902 | 2,535 | ||||||||||||||||||
| NPA to total assets | 0.18 | % | 0.19 | % | 0.27 | % | 0.18 | % | 0.34 | % | 0.30 | % | ||||||||||||
| Mortgage loan originations and brokered loans | $ | 115,338 | $ | 109,250 | $ | 70,570 | $ | 295,158 | $ | 492,221 | $ | 574,951 | ||||||||||||
| Gain on sale of mortgage loans net hedging activity | $ | 4,280 | $ | 3,059 | $ | 1,384 | $ | 8,723 | $ | 21,380 | $ | 23,998 | ||||||||||||
| Allowance for losses on mortgage loans sold | $ | 1,193 | $ | 4,633 | $ | 4,645 | $ | 1,193 | $ | 4,645 | $ | 4,645 | ||||||||||||
| Wealth Management segment - assets under management | $ | 444,000 | $ | 454,000 | $ | 432,000 | $ | 444,000 | $ | 204,000 | $ | 257,000 | ||||||||||||
| Book value per common share | $ | 9.55 | $ | 9.22 | $ | 9.00 | $ | 9.55 | $ | 9.34 | $ | 8.79 | ||||||||||||
| Dividends paid per share | $ | 0.13 | $ | 0.12 | $ | 0.11 | $ | 0.36 | $ | 0.30 | $ | 1.11 | ||||||||||||
| Composition of Loan Portfolio | ||||||||||||||||||||||||
| September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
| Percentage | Percentage | Percentage | Percentage | |||||||||||||||||||||
| (Dollars In Thousands) | Amount | of Total | Amount | of Total | Amount | of Total | Amount | of Total | ||||||||||||||||
| Commercial real estate - owner occupied | $ | 195,104 | 26.83 | % | $ | 190,895 | 25.79 | % | $ | 204,725 | 28.56 | % | $ | 196,804 | 28.65 | % | ||||||||
| Commercial real estate - non-owner occupied | 115,488 | 15.88 | 110,968 | 14.99 | 93,366 | 13.02 | 90,676 | 13.20 | ||||||||||||||||
| Residential real estate | 191,658 | 26.36 | 179,018 | 24.19 | 176,914 | 24.68 | 173,639 | 25.27 | ||||||||||||||||
| Commercial | 186,715 | 25.68 | 211,742 | 28.61 | 192,890 | 26.91 | 182,220 | 26.52 | ||||||||||||||||
| Real estate construction | 31,463 | 4.33 | 40,520 | 5.47 | 42,766 | 5.97 | 38,842 | 5.65 | ||||||||||||||||
| Consumer | 6,684 | 0.92 | 6,982 | 0.95 | 6,196 | 0.86 | 4,874 | 0.71 | ||||||||||||||||
| Total loans | $ | 727,112 | 100.00 | % | $ | 740,125 | 100.00 | % | $ | 716,857 | 100.00 | % | $ | 687,055 | 100.00 | % | ||||||||
| Less allowance for loan losses | 13,244 | 13,211 | 13,171 | 13,136 | ||||||||||||||||||||
| $ | 713,868 | $ | 726,914 | $ | 703,686 | $ | 673,919 | |||||||||||||||||
| Composition of Deposits | ||||||||||||||||||||||||
| September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||
| Percentage of | Percentage of | Percentage of | Percentage of | |||||||||||||||||||||
| (Dollars In Thousands) | Amount | Total | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||
| Demand deposits | $ | 271,251 | 37.05 | % | $ | 271,225 | 34.26 | % | $ | 229,059 | 28.44 | % | $ | 189,908 | 33.14 | % | ||||||||
| Interest-bearing demand deposits | 126,898 | 17.33 | 120,122 | 15.17 | 116,195 | 14.43 | 85,735 | 14.96 | ||||||||||||||||
| Savings and money market | 116,361 | 15.90 | 115,365 | 14.57 | 123,358 | 15.32 | 114,169 | 19.93 | ||||||||||||||||
| CDARS-time deposits | 96,703 | 13.21 | 155,480 | 19.64 | 200,142 | 24.85 | 47,535 | 8.30 | ||||||||||||||||
| Brokered deposits | 11,830 | 1.62 | 13,334 | 1.68 | 13,709 | 1.69 | 14,103 | 2.46 | ||||||||||||||||
| Time deposits | 109,028 | 14.89 | 116,227 | 14.68 | 122,961 | 15.27 | 121,522 | 21.21 | ||||||||||||||||
| Total Deposits | $ | 732,071 | 100.00 | % | $ | 791,753 | 100.00 | % | $ | 805,424 | 100.00 | % | $ | 572,972 | 100.00 | % | ||||||||
| Yield on Average Earning Assets and Rates on Average Interest-Bearing Liabilities | |||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| September 30, 2014 | September 30, 2013 | ||||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | ||||||||||||||||
| (Dollars In Thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Securities | $ | 142,013 | $ | 755 | 2.13 | % | $ | 94,993 | $ | 457 | 1.92 | % | |||||||||
| Loans held for sale | 40,780 | 410 | 4.02 | % | 26,335 | 264 | 4.01 | % | |||||||||||||
| Loans(1) | 726,985 | 8,723 | 4.80 | % | 655,162 | 7,998 | 4.88 | % | |||||||||||||
| Interest-bearing balances and federal funds sold | 51,134 | 27 | 0.21 | % | 39,337 | 22 | 0.22 | % | |||||||||||||
| Total interest-earning assets | 960,912 | 9,915 | 4.13 | % | 815,827 | 8,741 | 4.29 | % | |||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||
| Cash and due from banks | 9,499 | 8,602 | |||||||||||||||||||
| Premises, land and equipment | 8,232 | 8,433 | |||||||||||||||||||
| Other assets | 31,664 | 11,258 | |||||||||||||||||||
| Less: allowance for loan losses | (13,227 | ) | (13,033 | ) | |||||||||||||||||
| Total noninterest-earning assets | 36,168 | 15,260 | |||||||||||||||||||
| Total Assets | $ | 997,080 | $ | 831,087 | |||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||
| Interest-bearing demand deposits | $ | 121,737 | $ | 69 | 0.23 | % | $ | 74,105 | $ | 38 | 0.21 | % | |||||||||
| Money market deposit accounts | 115,144 | 58 | 0.20 | % | 118,330 | 59 | 0.20 | % | |||||||||||||
| Savings accounts | 3,824 | 4 | 0.42 | % | 2,341 | 1 | 0.17 | % | |||||||||||||
| Time deposits | 259,262 | 626 | 0.97 | % | 258,076 | 701 | 1.09 | % | |||||||||||||
| Total interest-bearing deposits | 499,967 | 757 | 0.61 | % | 452,852 | 799 | 0.71 | % | |||||||||||||
| Borrowings: | |||||||||||||||||||||
| FHLB Advances | 121,141 | 69 | 0.23 | % | 50,000 | 27 | 0.22 | % | |||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 19,955 | 5 | 0.10 | % | 23,378 | 7 | 0.12 | % | |||||||||||||
| Subordinated Debentures | - | - | 0.00 | % | 269 | (3 | ) | -4.46 | % | ||||||||||||
| Total borrowings | 141,096 | 74 | 0.21 | % | 73,647 | 31 | 0.17 | % | |||||||||||||
| Total interest-bearing deposits and borrowings | 641,063 | 831 | 0.52 | % | 526,499 | 830 | 0.63 | % | |||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 247,814 | 200,881 | |||||||||||||||||||
| Other liabilities | 11,341 | 9,171 | |||||||||||||||||||
| Total liabilities | 900,218 | 736,551 | |||||||||||||||||||
| Shareholders' Equity | 96,862 | 94,536 | |||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 997,080 | $ | 831,087 | |||||||||||||||||
| Interest Spread(2) | 3.61 | % | 3.66 | % | |||||||||||||||||
| Net Interest Margin(3) | $ | 9,084 | 3.78 | % | $ | 7,911 | 3.88 | % | |||||||||||||
|
(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 | ||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||
| September 30, 2014 | September 30, 2013 | |||||||||||||||||||
| Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||
| (Dollars In Thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||
| Assets: | ||||||||||||||||||||
| Interest earning assets: | ||||||||||||||||||||
| Securities | $ | 123,301 | $ | 1,844 | 1.99 | % | $ | 98,640 | $ | 1,439 | 1.95 | % | ||||||||
| Loans held for sale | 29,077 | 909 | 4.17 | % | 50,128 | 1,308 | 3.48 | % | ||||||||||||
| Loans(1) | 715,454 | 25,537 | 4.76 | % | 642,543 | 24,160 | 5.01 | % | ||||||||||||
| Interest-bearing balances and federal funds sold | 44,190 | 72 | 0.22 | % | 45,456 | 76 | 0.22 | % | ||||||||||||
| Total interest earning assets | 912,022 | 28,362 | 4.15 | % | 836,767 | 26,983 | 4.30 | % | ||||||||||||
| Noninterest earning assets: | ||||||||||||||||||||
| Cash and due from banks | 8,784 | 10,629 | ||||||||||||||||||
| Premises, land and equipment | 8,331 | 8,491 | ||||||||||||||||||
| Other assets | 24,994 | 13,456 | ||||||||||||||||||
| Less: allowance for loan losses | (13,197 | ) | (12,860 | ) | ||||||||||||||||
| Total noninterest earning assets | 28,912 | 19,716 | ||||||||||||||||||
| Total Assets | $ | 940,934 | $ | 856,483 | ||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Interest-bearing demand deposits | $ | 112,443 | $ | 189 | 0.22 | % | $ | 73,751 | $ | 105 | 0.19 | % | ||||||||
| Money market deposit accounts | 114,876 | 173 | 0.20 | % | 119,906 | 221 | 0.25 | % | ||||||||||||
| Savings accounts | 3,352 | 9 | 0.36 | % | 2,428 | 3 | 0.16 | % | ||||||||||||
| Time deposits | 249,928 | 1,901 | 1.01 | % | 315,924 | 2,437 | 1.03 | % | ||||||||||||
| Total interest-bearing deposits | 480,599 | 2,272 | 0.63 | % | 512,009 | 2,766 | 0.72 | % | ||||||||||||
| Borrowings: | ||||||||||||||||||||
| FHLB Advances | 104,707 | 186 | 0.24 | % | 24,187 | 42 | 0.23 | % | ||||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 21,125 | 16 | 0.10 | % | 25,652 | 20 | 0.10 | % | ||||||||||||
| Subordinated Debentures | - | - | 0.00 | % | 4,192 | 103 | 3.28 | % | ||||||||||||
| Total borrowings | 125,832 | 202 | 0.21 | % | 54,031 | 165 | 0.41 | % | ||||||||||||
| Total interest-bearing deposits and borrowings | 606,431 | 2,474 | 0.54 | % | 566,040 | 2,931 | 0.69 | % | ||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Demand deposits | 229,478 | 187,067 | ||||||||||||||||||
| Other liabilities | 10,257 | 9,500 | ||||||||||||||||||
| Total liabilities | 846,166 | 762,607 | ||||||||||||||||||
| Shareholders' Equity | 94,768 | 93,876 | ||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 940,934 | $ | 856,483 | ||||||||||||||||
| Interest Spread(2) | 3.60 | % | 3.61 | % | ||||||||||||||||
| Net Interest Margin(3) | $ | 25,888 | 3.78 | % | $ | 24,052 | 3.83 | % | ||||||||||||
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(1) |
Loans placed on nonaccrual status are included in loan balances. |
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(2) |
Interest spread is the average yield earned on earning assets, less the average rate incurred on interest-bearing liabilities. |
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(3) |
Net interest margin is net interest income, expressed as a percentage of average earning assets. |
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CONTACT:
Access National Corporation
Michael Clarke, 703-871-2100