Attached files
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| 8-K - ACCESS NATIONAL CORPORATION 8-K - ACCESS NATIONAL CORP | a51385194.htm |
Exhibit 99.1
Access National Reports Record Earnings, Declares Dividend
RESTON, Va.--(BUSINESS WIRE)--July 15, 2016--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 Months Ended June 30, 2016 |
Three Months Ended March 31, 2016 |
Six Months 2016 |
Six Months 2015 |
Twelve Months 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. |
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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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| 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. |
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(3) Net interest margin is net interest income, expressed as a percentage of average earning assets. |
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| 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 | ||||||||
CONTACT:
Access National Corporation
Michael Clarke, 703-871-2100