Access National Increases Dividend, Reports Second Quarter Earnings

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported second quarter net income of $3.5 million, down from the record setting $3.9 million recorded in the second quarter of 2012. This represents the Corporation’s 52nd consecutive quarterly profit over its 54 quarter history. Net income per diluted common share was $0.34 in comparison to the $0.38 reported in the second quarter of 2012.

The Board of Directors declared a cash dividend of $0.11 per share for holders of record as of August 7, 2013 and payable on August 23, 2013. This dividend represents a steady migration towards the stated objective equal to a 40% payout ratio of core earnings. It also represents a 1 cent increase over the prior quarter and a 10 cent increase over the last 9 quarters.

The second quarter of 2013 reflects a 21% increase in banking segment pretax earnings in comparison to the second quarter of 2012. With the closing of the Denver Mortgage Production Branch in April 2013 as well as an increase in mortgage loan rates, the mortgage segment’s contribution has decreased from 56% of the Corporation’s pre-tax income in the second quarter of 2012 to a contribution of 34% in the second quarter of 2013. This decrease in the mortgage division’s pre-tax contribution aligns with management’s intent, being that 70 – 80% of the Corporation’s net income is generated from the core business of the Bank.

Net interest margin for the first six months of 2013 decreased to 3.81% from 3.95% for the same period in 2012, yet on a linked quarter basis, the margin increased for the three months ended June 30, 2013 to 3.89% from 3.73% reported in the prior quarter.

Annualized return on average assets remained at 1.66% for both the first and second quarters of 2013, down slightly from the 1.80% reported for the six months ended June 30, 2012. Annualized return on average equity was 14.88% for the quarter ended June 30, 2013 compared to 17.55% for the same period last year.

Total assets amounted to $841.7 million compared to $863.9 million at December 31, 2012, an overall decline of $22.2 million. The decrease in loans held for sale of $62.6 million was offset by a growth in investment securities and cash balances of $13.3 million and loans held for investment of $24.5 million.

Total deposits at June 30, 2013 decreased $11.6 million from December 31, 2012. Management has viewed CDARS as a cost effective method of funding the mortgage division’s warehouse on loans held for sale as well as its investment portfolio. The $46.8 million reduction in CDARS was a planned response to the $62.7 million decrease in mortgage loans held for sale. Management continues to focus on expanding business banking relationships as evidenced by the increase in noninterest-bearing deposits of $56.3 million or 34.30% from December 31, 2012, which comprised 33.42% of the deposit portfolio at June 30, 2013.

Non-performing assets (NPAs) decreased to $2.3 million or 0.27% of total assets at June 30, 2013, down from $2.7 million or 0.32% of assets at December 31, 2012. The Corporation did not have other real estate owned at June 30, 2013. The allowance for loan losses totaled $13.0 million or 2.01% of total loans held for investment as of June 30, 2013.

Book value per common share increased 6.4% at June 30, 2013 to $9.20, from $8.65 at June 30, 2012. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 11.24% at June 30, 2013 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.

To better understand the impact the closing the Denver Mortgage Production Branch had on net income, included at the end of this release is pro forma information presenting results of the Corporation as if the Denver Mortgage Production Branch, which closed on April 30, 2013, had not been in existence in the three and six month periods ended June 30, 2013 and 2012.

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.