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Access National Corp (ANCX) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2017

Access National Corp

CIK: 1176316 Ticker: ANCX
Exhibit 99.1

Access National Announces Third Quarter 2017 Earnings

RESTON, Va.--(BUSINESS WIRE)--October 25, 2017--

Access National Corporation (NASDAQ: ANCX) (the “Corporation” or “Access”), parent company for Access National Bank (the “Bank”) and Middleburg Investment Group, reported third quarter 2017 net income of $7.0 million, or $0.34 per diluted share. Excluding merger related one-time charges and impairment charges, net income was $8.62 million or $0.42 per diluted share. This represents the Corporation’s 69th consecutive quarterly profit over its 71 quarter history. Consistent with management’s stated objective of a 40% to 50% dividend payout ratio against core earnings, the Board of Directors declared a dividend of $0.15 per share for common shareholders of record as of November 9, 2017 and payable on November 24, 2017.

Highlights

  • Strategic merger with Middleburg Financial Corporation (NASDAQ: MBRG) closed on schedule April 1, 2017 and data/office integrations completed on schedule as of August 4, 2017;
  • Reported third quarter earnings of $7.0 million or $0.34 per diluted share. Excluding $993 thousand in pre-tax merger related costs ($646 thousand after-tax and $0.03 per diluted share) and $1.5 million of pre-tax impairment charges ($969 thousand after-tax and $0.05 per diluted share), earnings were $8.6 million or $0.42 per diluted share;
  • Tangible book value1 per common share was $11.64 at September 30, 2017, an increase of $0.32 from the prior period after considering merger costs;
  • Loans held for investment were $1.97 billion at September 30, 2017 compared to $967 million at September 30, 2016, a year-over-year growth of 204.0%. Linked quarter growth was $43.0 million or 8.9% annualized; and
  • Non-interest bearing demand deposits of $711 million were 31.1% of total deposits at September 30, 2017 compared to $410 million at September 30, 2016, a year-over-year growth of 173.5%.

The transformative combination of Access National with Middleburg Financial continues on a successful progression. “While the recent quarter contained many integration related distractions, we are pleased to report meaningful organic growth in loans and core deposits that generate long-term value. The positive migration of the acquired customer base is best reflected in the deposit growth and composition. We will continue to sharpen our retail focus on the consumer market that values a relationship based approach to private banking,” said Michael Clarke, President and Chief Executive Officer of Access. He continued, “While realization of expected cost savings is choppy, we remain confident in fulfilling our objectives for 2017 and 2018 such that we meet or exceed EPS accretion estimates in 2018 and beyond.”

Third quarter 2017 pre-tax earnings were $9.4 million, up $3.5 million from second quarter 2017, and included pre-tax merger related costs of $993 thousand. The commercial banking segment’s net interest income grew $294 thousand when compared to the second quarter of 2017 while other revenues grew by $274 thousand due mainly to an increase in miscellaneous loan fees. An increase in the commercial banking segment’s other expense of $802 thousand when compared to the second quarter of 2017 was due mainly to accelerated amortization on abandoned leasehold improvements related to branch restructuring, and was complimented by a decrease in salaries and employee benefits of $906 thousand when compared to the second quarter of 2017.

The earnings and balance sheet impact of departed wealth services personnel and loss of select underpriced accounts was reflected in the current quarter’s financial results. When comparing the third quarter of 2017 to the second quarter of 2017, the wealth services segment saw a $206 thousand decrease in revenue as well as a $359 thousand decrease in salaries and employee benefits which was offset by an increase in operating expenses of $1.4 million due to a $1.5 million impairment of goodwill connected with the unprofitable operations of the legacy Access segment. While management believes the full impact from these changes is reflected in this reporting period, continued analysis of goodwill impairment will be made to determine if the complete write-off remains warranted and will make any recapture adjustments in the fourth quarter. According to Access CEO Michael Clarke, “The loss of subject wealth services personnel and related accounts enables a sharper focus of the organization on the go-forward strategy, closely aligning the marketing and delivery of wealth and banking services to a common target market. The leadership of Middleburg Investment Group and the expanded capabilities resulting from the merger are enhancing the client value proposition in a way that management expects will produce consistent and growing fee income in future periods.”

The net interest margin on a fully tax equivalent (non-GAAP) basis decreased to 3.86% from 3.97% when comparing third quarter to second quarter 2017. Third quarter net interest margin on a fully tax equivalent (non-GAAP) basis exclusive of the $1.2 million credit mark accretion for the acquired loan portfolio and the $19 thousand in liability discount amortization was 3.68% for the three months ended September 30, 2017.

Total assets were $2.9 billion at September 30, 2017, up from $2.8 billion at June 30, 2017 due mainly to growth in the interest-bearing balances of $70.3 million and loans held for investment portfolio of $40.3 million. Organic growth in loans held for investment was $42.7 million on a linked quarter basis due mainly to growth in commercial real estate.


The following information was filed by Access National Corp (ANCX) on Wednesday, November 1, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Changes In Shareholders' Equity
Consolidated Statements Of Changes In Shareholders' Equity (parenthetical)
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Operations
Allowance For Loan Losses
Allowance For Loan Losses (details)
Allowance For Loan Losses (tables)
Allowance For Loan Losses - Narrative (details)
Bank Owned Life Insurance
Bank Owned Life Insurance (details)
Basis Of Presentation
Basis Of Presentation - Additional Information (details)
Commitments And Contingent Liabilities
Commitments And Contingent Liabilities - Narrative (details)
Derivatives
Derivatives - Narrative (details)
Derivatives - Derivatives Designated As Cash Flow Hedges (details)
Derivatives - Interest Rate Cap Agreement (details)
Derivatives - Two-way Client Interest Rate Swaps Not Designated As Either Fair Value Or Cash Flow Hedges (details)
Derivatives (tables)
Earnings Per Share
Earnings Per Share (details)
Earnings Per Share (tables)
Fair Value Measurements
Fair Value Measurements (tables)
Fair Value Measurements - Changes In Level 3 Assets And Liabilities Measured At Fair Value (details)
Fair Value Measurements - Difference Between Fair Value And Carrying Amount Of Residential Mortgage Loans Held For Sale (details)
Fair Value Measurements - Estimated Fair Values And Related Carrying Values Of Financial Instruments (details)
Fair Value Measurements - Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis (details)
Fair Value Measurements - Quantitative Information About Level Iii Fair Value Measurements (details)
Financial Instruments With Off-balance Sheet Risk
Financial Instruments With Off-balance Sheet Risk - Narrative (details)
Financial Instruments With Off-balance Sheet Risk (tables)
Financial Instruments With Off-balance Sheet Risk - Changes In Allowance For Losses On Mortgage Loans Sold (details)
Goodwill And Intangible Assets
Goodwill And Intangible Assets (tables)
Goodwill And Intangible Assets - Narrative (details)
Goodwill And Intangible Assets - Schedule Of Changes In Carrying Amount Of Goodwill (details)
Goodwill And Intangible Assets - Summary Of Carrying Amount Of Intangible Assets (details)
Loans
Loans (tables)
Loans - Composition Of Loans Held For Investment (details)
Loans - Impaired Loans By Average Recorded Investment (details)
Loans - Loans Identified As Impaired By Class Of Loan (details)
Loans - Narrative (details)
Loans - Non-accrual Loans Past Due (details)
Loans - Risk Profile Based Upon Payment Activity (details)
Loans - Schedule Of Changes In Accretable Yield For Purchased Impaired Loans (details)
Loans - Summary Of Loan Classifications By Class Of Loan (details)
Low Income Housing Tax Credits
Low Income Housing Tax Credits (details)
Mergers And Acquisitions
Mergers And Acquisitions (tables)
Mergers And Acquisitions - Loans Identified As Impaired At Acquisition Date (details)
Mergers And Acquisitions - Narrative (details)
Mergers And Acquisitions - Pro Forma Information (details)
Mergers And Acquisitions - Schedule Of Fair Value Of Identifiable Assets Acquired And Liabilities Assumed (details)
Other Income And Other Operating Expenses
Other Income And Other Operating Expenses (tables)
Other Income And Other Operating Expenses - Schedule Of Other Expenses (details)
Other Income And Other Operating Expenses - Schedule Of Other Income (details)
Recent Accounting Pronouncements
Recent Accounting Pronouncements (policies)
Securities
Securities (tables)
Securities - Amortized Cost And Fair Value Of Securities Available For Sale By Contractual Maturity (details)
Securities - Amortized Cost And Fair Value Of Securities Held To Maturity By Contractual Maturity (details)
Securities - Amortized Costs And Fair Values Of Securities Available For Sale (details)
Securities - Amortized Costs And Fair Values Of Securities Held To Maturity (details)
Securities - Investments In Unrealized Loss Position (details)
Securities - Narrative (details)
Segment Reporting
Segment Reporting (details)
Segment Reporting (tables)
Stock-based Compensation Plan
Stock-based Compensation Plan (tables)
Stock-based Compensation Plan - Narrative (details)
Stock-based Compensation Plan - Schedule Of Fair Value Assumptions Stock Options (details)
Stock-based Compensation Plan - Stock Options Outstanding Activity (details)

Material Contracts, Statements, Certifications & more

Access National Corp provided additional information to their SEC Filing as exhibits

Ticker: ANCX
CIK: 1176316
Form Type: 10-Q Quarterly Report
Accession Number: 0001176316-17-000021
Submitted to the SEC: Thu Nov 09 2017 5:20:15 PM EST
Accepted by the SEC: Thu Nov 09 2017
Period: Saturday, September 30, 2017
Industry: Savings Institution Federally Chartered

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