Access National Increases First Quarter Earnings and Dividend

Access National Corporation (NASDAQ: ANCX), parent company for Access National Bank, reported first quarter net income of $3.7 million, a $247 thousand increase over the $3.4 million recorded in the first quarter of 2012. This represents the company’s 51st consecutive quarterly profit over its 53 quarter history. Net income per diluted common share was $0.35, an increase of 6% over the $0.33 reported in the first quarter of 2012.

The Board of Directors declared a cash dividend of $0.10 per share for holders of record as of May 8, 2013 and payable on May 24, 2013. This dividend represents a steady migration towards the stated objective equal to a 40% payout ratio of core earnings. It also represents a 1 cent increase from the prior quarter and a 9 cent cumulative increase over the past 2 years.

The increase in net income between the first quarter of 2013 and 2012 is mainly attributable to a 17% increase in pretax earnings from the banking segment while the mortgage segment contribution decreased slightly in the first quarter of 2013 when compared to the first quarter of 2012.

Net interest margin for the first quarter of 2013 decreased to 3.73% from 3.91% as of the first quarter of 2012.

Annualized return on average assets was 1.66% for both the first quarter of 2013 and 2012. Annualized return on average equity was 15.95% for the quarter ended March 31, 2013 compared to 16.03% for the same period last year.

Total assets amounted to $876.4 million compared to $863.9 million at December 31, 2012. While the growth in assets was minimal, the overall distribution of assets experienced a major shift resulting from growth of the commercial banking segment and lower activity in the mortgage segment. The decrease in loans held for sale of $42.0 million was offset by a growth in investment securities of $18.7 million, interest bearing and cash balances of $14.1 million, and loans held for investment of $22.7 million. The growth in loans held for investment was highlighted by a 7.2% or $10.8 million growth in commercial and industrial loans to the bank’s target market.

Total deposits at March 31, 2013 increased $61.7 million from December 31, 2012. As a result of management’s continued focus on expanding business banking relationships, noninterest-bearing deposits increased $20.6 million or 12.56% from December 31, 2012, and comprised 25.21% of the deposit portfolio at March 31, 2013.

Non-performing assets (NPAs) decreased to $1.7 million or 0.20% of total assets at March 31, 2013, down from $2.7 million or 0.32% of assets at December 31, 2012. The Corporation did not have other real estate owned at March 31, 2013. The allowance for loan losses totaled $12.9 million or 2.01% of total loans held for investment as of March 31, 2013.

Book value per common share increased 8.7% at March 31, 2013 to $9.10, compared to $8.37 at March 31, 2012 during which time shareholders have also received $0.99 of dividends per share. The ratio of total equity to total assets for Access National Corporation and its subsidiary bank was 10.72% at March 31, 2013 and continued to exceed standards of being “Well Capitalized” as set forth under banking regulations.

The Corporation announced April 2, 2013, the closure of its Mortgage Production Branch (Branch) located in Denver, Colorado with all activities and obligations terminated as of April 30, 2013. In order to evaluate the impact of this change on the overall Corporation’s financial performance, condensed consolidated pro forma financial statements are presented at the end of this release. The pro forma information is presenting results as if the Branch, which is closing April 30, 2013, had not been in existence in the three month periods ended March 31, 2013 and 2012. The pro forma reflects year over year increases in loan volume of 7.4% and purchase loan units of 12.68% from continuing operations. Closure of the Denver Mortgage Production Branch will enable management to focus resources aimed at cultivating purchase oriented business in the Washington DC Metropolitan area consistent with the bank’s target market.

Access National Corporation is the parent company of Access National Bank, an independent, nationally chartered bank serving the business community of the greater Washington DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. Shares of Access National Corporation are traded on the NASDAQ Global Market under the symbol "ANCX".

This press release contains “forward-looking statements” within the meaning of the federal securities laws. These statements may be identified as “may”, “could”, “expect”, “believe”, anticipate”, “intend”, “plan” or variations thereof. These forward-looking statements may contain information related to those matters such as the Company’s intent, belief, or expectation with respect to matters such as financial performance. Such statements are necessarily based on assumptions and estimates and are inherently subject to a variety of risks and uncertainties concerning the Company’s operations and business environment, which are difficult to predict and beyond control of the company. Such risks and uncertainties could cause the actual results of the Company to differ materially from those matters expressed or implied in such forward-looking statements. For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to the Company’s Annual Report on Form 10-K and other SEC filings.