Access National Corp (ANCX) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2015

Exhibit 99.1

Access National Annual and Quarterly Earnings Rise, Declares Dividend

RESTON, Va.--(BUSINESS WIRE)--January 21, 2016--

Fourth quarter 2015 pretax earnings rose by $586 thousand or 10.9% when compared to fourth quarter 2014 pretax earnings. Fourth quarter 2015 pretax income for the banking segment rose $376 thousand from fourth quarter 2014 due to increases in net interest income of $862 thousand and other income of $370 thousand due largely to returns on the Bank’s investments in Small Business Investment Companies. These increases were partially offset by an increase in salaries and benefits of $331 thousand and an increase in other operating expense of $525 thousand due in part to enhancements in the Bank’s online banking platform. The mortgage segment’s increase of $328 thousand over fourth quarter 2014 was due mainly to an increase in gains recorded on secondary mortgage activity, net of the hedging impact.

Pretax earnings for 2015 were $23.6 million, up $2.1 million or 9.7% from $21.5 million for the year 2014. Year over year, the banking segment pretax earnings increased $1.7 million or 9.1%. Net interest income increased $4.1 million, from $34.5 million in 2014 to $38.6 million in 2015. Offsetting this increase in net interest income were increases in salaries and employee benefits of $1.6 million, due to increased group health costs as well as additions to staffing, and other expenses of $1.5 million, due largely to the increase in operational expenses such as FDIC insurance, business and franchise taxes and data processing costs. Decreased losses in the other operating segment of $837 thousand pretax were due mainly to a nonrecurring pretax impairment recorded in third quarter 2014 of $707 thousand.

The net interest margin decreased from 3.80% to 3.68% when comparing 2014 to 2015. On a linked quarter basis, the margin decreased to 3.63% for the three months ended December 31, 2015 when compared to 3.70% for the three months ended September 30, 2015.

On a consolidated basis, the Corporation reported annualized return on average assets of 1.35% and 1.39% for the three and twelve month periods ended December 31, 2015, respectively. Meanwhile, the annualized return on average equity was 14.53% and 14.83% for the three and twelve month periods ended December 31, 2015, respectively.

Total assets were $1.2 billion at December 31, 2015 and grew $126 million when compared to December 31, 2014. An increase in loans held for investment of $110.9 million and a $35.1 million growth in investment securities was partially offset by a decrease of $21.6 million in interest-bearing balances. During the fourth quarter of 2015, commercial loan growth was the leading driver of a 14.3% annualized growth of loans held for investment.

Total deposits at December 31, 2015 were $913.7 million, an increase of $158.3 million when compared to December 31, 2014. Non-interest bearing deposits grew at a rate of 21.7%, from $252.9 million at December 31, 2014 to $307.8 million at December 31, 2015 due to management’s continued focus on expanding business banking relationships. Interest bearing deposits increased $103.4 million, from $502.6 million at December 31, 2014 to $605.9 million at December 31, 2015. A targeted marketing campaign was the majority of the reason for growth in this category which saw an increase in savings and money markets of $48.6 million and an increase in time deposits of $28.5 million.