Access National Reports Earnings and Declares Dividend

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank (Bank), reported fourth quarter 2013 net income of $3.2 million, or $0.31 per share. This represents the Corporation’s 54th consecutive quarterly profit over its 56 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 $0.11 per share for holders of record as of February 6, 2014 and payable on February 25, 2014. This cash dividend is in addition to a $0.70 special cash dividend paid to shareholders in the fourth quarter of 2013.

Net income for 2013 was $13.2 million or $1.27 per diluted share. Importantly, the banking segment pretax earnings increased 18% during 2013 in comparison to 2012. The mortgage segment contribution declined significantly in 2013 when compared with 2012 due to various factors including a reduction in volume and gain on sale margin. During the third quarter of 2013, management was able to align overhead with expected production which enabled the mortgage division to record income before taxes of $234 thousand for the fourth quarter of 2013 compared to a near break-even performance in the third quarter of 2013. For the year, the mortgage division’s pre-tax contribution was 24% which 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 2013 decreased to 3.85% from 3.94% for 2012. On a linked quarter basis, the margin improved slightly to 3.89% for the three months ended December 31, 2013 from 3.88% reported in the prior quarter.

On a consolidated basis, the Corporation reported annualized return on average assets of 1.50% and 1.55% for the three and twelve month periods ended December 31, 2013, respectively. Meanwhile, the annualized return on average equity was 13.34% and 14.00% for the three and twelve month periods ended December 31, 2013, respectively.

Total assets at December 31, 2013 amounted to $847.2 million compared to $863.9 million at December 31, 2012, an overall decline of $16.7 million. Growth in loans held for investment of $70.1 million and a $12.1 million increase in investments was offset by a decrease in loans held for sale of $87.2 million. Loans held for investment increased at an annualized rate of 19.70% or $32.2 million on a linked quarter basis lead by a notable increase in the commercial loan base.

The decrease in total deposits at December 31, 2013 of $98.5 million when compared to December 31, 2012 was due mainly to a $138.5 million planned reduction in brokered and Certificate of Deposit Account Registry Service (CDARS) deposits which was offset by an increase in demand deposits of $40.5 million or 17.21%. Management continues to focus on expanding business banking relationships as evidenced by the growth in demand deposits and was able to utilize more cost effective borrowing avenues thereby reducing the Corporation’s need for brokered and CDARS deposits during 2013.

Non-performing assets (NPAs) decreased to $2.5 million or 0.30% of total assets at December 31, 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 December 31, 2013. The allowance for loan losses totaled $13.1 million or 1.91% of total loans held for investment as of December 31, 2013.

During the fourth quarter of 2013, the Corporation declared a special cash dividend of $0.70 per share. This was the impetus for the decrease in book value per common share at December 31, 2013 to $8.79 from $8.85 at December 31, 2012. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 10.76% at December 31, 2013 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.

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.