Access National Corp. (ANCX, Financial) filed Quarterly Report for the period ended 2012-09-30.
Access National Corporation has a market cap of $128.6 million; its shares were traded at around $12.81 with a P/E ratio of 8.8 and P/S ratio of 1.8. The dividend yield of Access National Corporation stocks is 2.6%. Access National Corporation had an annual average earning growth of 6.6% over the past 10 years.
The loan portfolio constitutes the largest component of earning assets and is comprised of commercial real estate – owner occupied, commercial real estate – non-owner occupied, residential real estate, commercial, real estate construction, and consumer loans. All lending activities of the Bank and its subsidiaries are subject to the regulations and supervision of the Comptroller. The loan portfolio does not have any pay option adjustable rate mortgages, loans with teaser rates or subprime loans or any other loans considered “high risk loans”. Loans totaled $590.6 million at September 30, 2012 compared to $569.4 million at December 31, 2011, an increase of $21.2 million. Owner occupied commercial real estate loans increased $11.2 million, non-owner occupied commercial real estate loans decreased $556 thousand, residential real estate loans increased $8.8 million and real estate construction loans decreased $1.9 million. Additionally, commercial loans increased $2.7 million and consumer loans increased $1 million. The overall increase in loans reflects a continued improvement in loan demand by local businesses, as seen through the increase in commercial segments of the loan portfolio, and is principally due to improvement in economic conditions in Northern Virginia. Please see Note 4 to the consolidated financial statements for a table that summarizes the composition of the Corporation’s loan portfolio. The following is a summary of the loan portfolio at September 30, 2012.
Net interest income, the principal source of earnings, is the amount of income generated by earning assets (primarily loans and investment securities) less the interest expense incurred on interest-bearing liabilities (primarily deposits) used to fund earning assets. Net interest income before the provision for loan losses totaled $8.0 million for the three months ended September 30, 2012 compared to $7.2 million for the same period in 2011. The increase in net interest income is primarily due to lower funding costs and changes in the composition of earning assets. The annualized yield on earning assets was 4.54% for the quarter ended September 30, 2012 when compared to 4.95% for the quarter ended September 30, 2011. The variance in the annualized yield on earning assets is primarily attributable to a $58.8 million increase in average loans held for investment, which more than offset a decrease in the rate earned by the loan portfolio from 5.89% for the quarter ended September 30, 2011 to 5.33% for the same period in 2012. The cost of interest-bearing deposits and borrowings decreased from 1.23% for the quarter ended September 30, 2011 to 0.84% for the quarter ended September 30, 2012. Net interest margin was 3.95% for the quarter ended September 30, 2012 compared to 4.02% for the same period in 2011.
Net interest income before the provision for loan losses totaled $23.6 million for the first nine months of 2012 compared to $20.6 million for the same period in 2011. The annualized yield on earning assets for the first nine months of 2012 was 4.61% compared to 4.85% for the same period in 2011. The cost of interest-bearing deposits and borrowings for the first nine months of 2012 was 0.90% compared to 1.28% for the same period in 2011 as most of the segments of deposits and borrowings bore a lower rate of interest in 2012 than in 2011. Net interest margin was 3.95% for the first nine months of 2012 compared to 3.85% for the same period in 2011.
Noninterest income consists of revenue generated from financial services and activities other than lending and investing. The mortgage segment provides the most significant contributions to noninterest income. Total noninterest income was $12.7 million for the third quarter of 2012 compared to $10.7 million for the same period in 2011. Gains on the sale of loans originated by the Banks’s mortgage segment are the largest component of noninterest income. Gains on the sale of loans totaled $17.5 million for the three month period ended September 30, 2012, compared to $11.8 million for the same period of 2011. Gains on the sale of loans fluctuate with the volume of mortgage loans originated. During the three months ended September 30, 2012, the Bank’s mortgage segment originated $284.3 million in mortgage and brokered loans, up from $236.6 million for the same period in 2011. For the three months ended September 30, 2012, other income reflected a loss of $4.9 million, as compared to a $1.3 million loss for the three months ended September 30, 2011, due mainly to a realized loss relating to hedging activities associated with loans held for sale. Our hedging activities are designed to insulate the net gain on sale margins from movements of interest rates during the mortgage loan origination and delivery process. When losses are recognized on instruments used to hedge interest rate risk, the value of the loans being hedged increase proportionately resulting in higher realized gains on sale income.
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Access National Corporation has a market cap of $128.6 million; its shares were traded at around $12.81 with a P/E ratio of 8.8 and P/S ratio of 1.8. The dividend yield of Access National Corporation stocks is 2.6%. Access National Corporation had an annual average earning growth of 6.6% over the past 10 years.
Highlight of Business Operations:
Net income for the third quarter of 2012 totaled $4.1 million compared to $3.1 million for the same period in 2011. Earnings per diluted share were $0.40 for the third quarter of 2012, compared to $0.30 per diluted share in the same period of 2011. The increase in earnings is primarily attributable to a $47.8 million increase in mortgage and brokered loan originations that increased mortgage segment pre-tax earnings from the comparable quarter by $1.0 million as well as a $278 thousand increase in interest and fees on loans coupled with a $477 thousand decrease in interest expense, due to the low rate environment and favorable changes in deposit mix.The loan portfolio constitutes the largest component of earning assets and is comprised of commercial real estate – owner occupied, commercial real estate – non-owner occupied, residential real estate, commercial, real estate construction, and consumer loans. All lending activities of the Bank and its subsidiaries are subject to the regulations and supervision of the Comptroller. The loan portfolio does not have any pay option adjustable rate mortgages, loans with teaser rates or subprime loans or any other loans considered “high risk loans”. Loans totaled $590.6 million at September 30, 2012 compared to $569.4 million at December 31, 2011, an increase of $21.2 million. Owner occupied commercial real estate loans increased $11.2 million, non-owner occupied commercial real estate loans decreased $556 thousand, residential real estate loans increased $8.8 million and real estate construction loans decreased $1.9 million. Additionally, commercial loans increased $2.7 million and consumer loans increased $1 million. The overall increase in loans reflects a continued improvement in loan demand by local businesses, as seen through the increase in commercial segments of the loan portfolio, and is principally due to improvement in economic conditions in Northern Virginia. Please see Note 4 to the consolidated financial statements for a table that summarizes the composition of the Corporation’s loan portfolio. The following is a summary of the loan portfolio at September 30, 2012.
Net interest income, the principal source of earnings, is the amount of income generated by earning assets (primarily loans and investment securities) less the interest expense incurred on interest-bearing liabilities (primarily deposits) used to fund earning assets. Net interest income before the provision for loan losses totaled $8.0 million for the three months ended September 30, 2012 compared to $7.2 million for the same period in 2011. The increase in net interest income is primarily due to lower funding costs and changes in the composition of earning assets. The annualized yield on earning assets was 4.54% for the quarter ended September 30, 2012 when compared to 4.95% for the quarter ended September 30, 2011. The variance in the annualized yield on earning assets is primarily attributable to a $58.8 million increase in average loans held for investment, which more than offset a decrease in the rate earned by the loan portfolio from 5.89% for the quarter ended September 30, 2011 to 5.33% for the same period in 2012. The cost of interest-bearing deposits and borrowings decreased from 1.23% for the quarter ended September 30, 2011 to 0.84% for the quarter ended September 30, 2012. Net interest margin was 3.95% for the quarter ended September 30, 2012 compared to 4.02% for the same period in 2011.
Net interest income before the provision for loan losses totaled $23.6 million for the first nine months of 2012 compared to $20.6 million for the same period in 2011. The annualized yield on earning assets for the first nine months of 2012 was 4.61% compared to 4.85% for the same period in 2011. The cost of interest-bearing deposits and borrowings for the first nine months of 2012 was 0.90% compared to 1.28% for the same period in 2011 as most of the segments of deposits and borrowings bore a lower rate of interest in 2012 than in 2011. Net interest margin was 3.95% for the first nine months of 2012 compared to 3.85% for the same period in 2011.
Noninterest income consists of revenue generated from financial services and activities other than lending and investing. The mortgage segment provides the most significant contributions to noninterest income. Total noninterest income was $12.7 million for the third quarter of 2012 compared to $10.7 million for the same period in 2011. Gains on the sale of loans originated by the Banks’s mortgage segment are the largest component of noninterest income. Gains on the sale of loans totaled $17.5 million for the three month period ended September 30, 2012, compared to $11.8 million for the same period of 2011. Gains on the sale of loans fluctuate with the volume of mortgage loans originated. During the three months ended September 30, 2012, the Bank’s mortgage segment originated $284.3 million in mortgage and brokered loans, up from $236.6 million for the same period in 2011. For the three months ended September 30, 2012, other income reflected a loss of $4.9 million, as compared to a $1.3 million loss for the three months ended September 30, 2011, due mainly to a realized loss relating to hedging activities associated with loans held for sale. Our hedging activities are designed to insulate the net gain on sale margins from movements of interest rates during the mortgage loan origination and delivery process. When losses are recognized on instruments used to hedge interest rate risk, the value of the loans being hedged increase proportionately resulting in higher realized gains on sale income.
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