Access National Corp (ANCX) SEC Filing 10-Q Quarterly report for the period ending Saturday, March 31, 2018

Exhibit 99.1

Access National Announces First Quarter 2018 Earnings

RESTON, Va.--(BUSINESS WIRE)--April 26, 2018--

Highlights

• First quarter net income of $8.1 million or $0.39 per diluted share;
• Tangible book value¹ per common share was $11.65 at March 31, 2018, an increase of $0.13 from the linked quarter;
• Loans held for investment were $1.92 billion at March 31, 2018 compared to $1.07 billion at March 31, 2017, a year-over-year increase of 79.4%; and
• Non-interest bearing demand deposits of $706.1 million were 32.1% of total deposits at March 31, 2018 compared to $376.7 million at March 31, 2017, a year-over-year increase of 87.5%.

The period ended March 31, 2018 represented the first quarter of operations free of material merger and integration costs related to the acquisition of Middleburg Financial Corporation. According to Access CEO Michael Clarke, “We are encouraged by our earnings in this first quarter of 2018 but have room for improvement. The earnings are directionally consistent with the metric upon which the acquisition was structured. However, we are disappointed in the lack of growth in total loans and deposits on a linked quarter basis. We attribute the lack of growth to seasonal factors. We are confident in executing our strategy and ability to deliver against our stated strategic financial targets.

Total deposits dropped $37.2 million or 1.7% from December 31, 2017 to March 31, 2018; however, demand deposits, savings and money market accounts grew $12.3 million. Strength and focus on core deposits are evidenced by the steady 55.0% contribution of demand deposits to total deposits.

Comparing March 31, 2018 figures to the linked quarter, total loans held for investment declined $54.0 million. Seasonal reductions of $37.6 million in revolving commercial lines of credit as well as reductions in commercial mortgage loans totaling $21.7 million account for the decrease. The reductions in these loan balances did not reflect the loss of any valued, targeted relationships.”

Mr. Clarke concluded, “The hard work of conversion is behind us. The focus now is on expanding the existing valued client relationships and acquiring new targeted clients on an accelerated basis. Continued execution of our plan should translate into improved operating efficiencies and improved relative performance that builds shareholder value.”

First quarter 2018 pre-tax earnings were $9.9 million, up from the $9.0 million reported in the fourth quarter of 2017. The commercial banking segment’s net interest income declined $728 thousand from the linked quarter, from $23.7 million to $23.0 million, due mainly to the decrease in average balances of loans held for investment coupled with the decrease in yield on earnings assets. During the fourth quarter of 2017, management planned for and made a strategic sale and disposition of $25.7 million in loans. The commercial banking segment’s other expense reflected a decrease of $1.5 million when compared to the prior quarter as fourth quarter 2017 included a pre-tax impairment charge of $3.1 million.

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¹ Non-GAAP financial information. See “Reconciliation of Non-GAAP Financial Measures” at end of release.