Access National Corp (ANCX) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

Exhibit 99.1

Access National Declares Dividend, Reports Fourth Quarter Earnings

RESTON, Va.--(BUSINESS WIRE)--January 20, 2017--

Highlights

• Strategic merger with Middleburg announced October 24, 2016, on track to close during second quarter 2017;
• Reported earnings reflect $864 thousand in merger related costs;
• Book value per common share grew 9.5% to $11.33 at December 31, 2016 when compared to $10.35 at December 31, 2015;
• Loans held for investment grew $83.2 million or 34.4% on an annualized basis, surpassing the $1 billion dollar threshold; and
• Demand deposits account for 34.3% of total deposits at December 31, 2016, while wholesale funding was reduced by $19.0 million from third quarter 2016.

Due mainly to merger related costs of $864 thousand, fourth quarter 2016 pretax earnings declined $1.0 million or 17.3% when compared to fourth quarter 2015 pretax earnings. An increase of $459 thousand in the commercial banking segment’s salaries and employee benefits due to expansion was offset by reductions in other expenses not related to the provision that had been elevated the prior year due to enhancements in the Bank’s online banking platform. The mortgage segment’s pretax earnings increase of $313 thousand over fourth 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 3.63% to 3.46% when comparing fourth quarter 2015 to fourth quarter 2016. On a linked quarter basis, the margin decreased from 3.49% for the three months ended September 30, 2016 when compared to 3.46% for the three months ended December 31, 2016.

On a consolidated basis, the Corporation reported a return on average assets of 1.27% and a return on average equity of 14.11% for the year even after consideration of the merger related costs that impacted fourth quarter 2016 annualized return on average assets and average equity. Annualized, the fourth quarter return on average assets was 0.89% for the three month period ended December 31, 2016, while the annualized return on average equity was 9.97% for the three month period ended December 31, 2016.

Total assets were $1.4 billion at December 31, 2016 and grew $252.2 million when compared to December 31, 2015. The $252.2 million growth in assets since December 31, 2015 was due mainly to an increase in loans held for investment of $162.2 million, a $57.3 million increase in interest-bearing balances, a $28.8 million increase in investment securities, and a $13.6 million increase in other assets which was largely due to an increase in bank owned life insurance of $10.6 million. Total loans held for investment surpassed $1 billion for the first time as commercial loans grew 18.3% year over year and remain the largest portfolio segment. The growth in the loan portfolio as well as increased allowance for non-performing assets (“NPAs”) from the linked quarter was responsible for the increase of $1.3 million in the provision for loan loss.