Access Announces Q2 Results.RESTON Reston, uninc. city (1990 pop. 48,556), Fairfax co., N Va., a planned community established in 1961. A suburb of Washington, D.C., Reston is organized in a series of residential villages and commercial areas. , Va. -- Access National Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANCX) reported its operating results today for the quarter ended June June: see month. 30, 2004. As of June 30, 2004, total assets were $343 million, a 16% increase over the prior year. Loans held for investment grew 76% over 2003 to $247 million in 2004 while deposits grew more modestly at 4% over the prior year. Net income for the second quarter of 2004 was $1.0 million compared to $1.1 million in 2003, a decline of 9.7%. This modest decline came as the increased interest rate environment contributed towards a 40% year to date drop in mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume. The reduced profitability resulting from the smaller mortgage volume was made up by core growth in the commercial bank. Growth in the core bank and the associated earnings stream was driven by a 76% increase in the portfolio of Loans Held for Investment. Primary earnings per share declined 12.5% to $0.28 for the quarter ended June 30, 2004 from $0.32 for the same period of 2003. The more pronounced decrease in EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. over corporate earnings was due to the issuance of 473,253 shares of common stock during the quarter that contributed $3.1 million of equity. Net interest income increased to $2.88 million for the second quarter 2004, an increase of 25.5% over the $2.29 million in 2004. Non-interest income declined 31% percent in 2004 over the same period in 2003 while non-interest expense declined 20%. Complete summaries of the unaudited financial results are attached.
Access National Corporation serves as the holding company for:
-- Access National Bank 703-871-2100
-- Access National Mortgage Corporation 703-448-5900
-- Access National Leasing Corporation 703-871-2100
This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such forward-looking statements. For an explanation of certain risks and uncertainties associated with forward-looking statements, please refer to then Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other SEC filings.
Access National Corporation
Selected Financial Data
(in thousands, except for share data)
June 30, June 30, Percent
At period end (unaudited) 2004 2003 Change
----------------------------------------------------------------------
Assets $ 343,519 $ 295,720 16%
Average assets (LTM) 294,289 230,656 28%
Loans held for investment 247,424 140,759 76%
Loans held for sale 42,548 110,407 -61%
Mortgage loan originations 388,526 653,697 -41%
Investment securities 22,896 11,649 97%
Earning assets 333,731 284,611 17%
Deposits 247,949 238,838 4%
Stockholders' equity 24,278 18,165 34%
Average stockholders equity (LTM) 20,130 17,947 12%
Net income this period 1,550 2,121 -27%
Net income (LTM) 1,983 1,571 26%
Common shares outstanding 3,950,613 3,484,500 13%
Book value $ 6.15 $ 5.21 18%
Basic earnings per share (average) -
3,556,236 shares and 3,505,750 shares,
respectively $ 0.44 $ 0.60 -27%
Diluted earnings per share - 4,465,392
shares and 4,299,218 shares,
respectively $ 0.35 $ 0.49 -29%
Return on average assets (LTM) 1.05% 1.84% -43%
Return on average equity (LTM) 15.40% 23.63% -35%
Allowance for loan losses $ 2,944 $ 2,430 21%
Allowance for loan losses / Loans held
for investment 1.19% 1.73% -31%
Non-performing assets $ 1,528 $ 198 672%
Non-performing assets to loans 0.62% 0.14% 339%
Net charge-offs to average loans 0.00% 0.00% 0%
(LTM - last twelve months)
Access National Corporation
Consolidated Balance Sheet
June 30, 2004 December 31, 2003
(in thousands) (unaudited)
----------------------------------------------------------------------
ASSETS
Cash and due from banks $ 12,550 $ 5,808
Interest bearing balances 8,312 286
Federal funds sold - -
Securities available for sale, at
fair value 22,896 23,178
Loans held for sale 42,548 29,756
Loans held for investment net of
allowance for loan losses of $2,944
and $2,565 respectively 244,480 186,755
Premises and equipment 8,375 7,993
Other assets 4,358 3,303
------------- -----------------
Total assets $ 343,519 $ 257,079
============= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Non-interest bearing deposits $ 91,083 $ 60,219
Savings and Interest bearing
deposits 44,369 28,528
Time Deposits 112,496 109,436
------------- -----------------
Total deposits $ 247,948 $ 198,183
Short-Term Borrowings $ 29,575 $ 11,056
Long-Term Borrowings 29,107 14,965
Trust Preferred Debt 10,000 10,000
Other liabilities and accrued
expenses 2,611 3,120
Commitments and contingent
liabilities - -
------------- -----------------
Total Liabilities $ 319,241 $ 237,324
============= =================
SHAREHOLDERS' EQUITY
Common stock $1.67 par value;
30,000,000 authorized, 3,950,613
shares issued and outstanding $ 6,586 $ 5,796
Surplus 9,222 6,856
Accumulated other comprehensive
income 1,454 88
Retained earnings 7,016 7,015
------------- -----------------
Total shareholders' equity $ 24,278 $ 19,755
------------- -----------------
------------- -----------------
Total liabilities and
shareholders' equity $ 343,519 $ 257,079
============= =================
Access National Corporation
Consolidated Statement of Operations
Three Months Six Months Six Months
Ended Ended Ended
(in thousands except for per 6/30/04 6/30/04 6/30/03
share data) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $ 4,098 $ 7,481 $ 6,561
Interest on federal funds sold
& bank balances 16 30 54
Interest on securities 187 388 210
------------------------------------
Total interest income $ 4,301 $ 7,899 $ 6,826
INTEREST EXPENSE
Interest on deposits $ 970 $ 1,829 $ 2,034
Interest on other borrowings 449 771 399
------------------------------------
Total interest expense $ 1,419 $ 2,600 $ 2,433
------------------------------------
Net interest income $ 2,881 $ 5,299 $ 4,393
Provision for loan losses 204 379 382
------------------------------------
Net interest income after
provision for loan losses $ 2,677 $ 4,920 $ 4,011
NON-INTEREST INCOME
Service charges and fees $ 47 $ 106 $ 124
Fees on Loans Held For Sale 4,709 9,046 14,034
Other Income 2,024 3,889 3,758
------------------------------------
Total non-interest income $ 6,780 $ 13,041 $ 17,916
NON-INTEREST EXPENSE
Salaries and benefits $ 4,659 $ 9,357 $ 10,562
Occupancy and equipment 664 1,192 893
Other operating expense 2,613 5,021 6,889
------------------------------------
Total non-interest expense $ 7,936 $ 15,570 $ 18,344
Income before income tax $ 1,521 $ 2,391 $ 3,584
Income tax expense 513 841 1,463
------------------------------------
Net income $ 1,008 $ 1,550 $ 2,121
====================================
Basic Earnings per common share $ 0.28 $ 0.44 $ 0.60
Weighted average common shares
outstanding 3,635,111 3,556,236 3,505,750
Diluted earnings per common share $ 0.23 $ 0.35 $ 0.49
Weighted average common shares
outstanding 4,415,593 4,465,392 4,299,218
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