Access National Earns $1.1 Million, YTD EPS Rise 13%.RESTON, 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), holding company for Access National Bank, reported net income for the second quarter of 2008 of $1.1 million, or $.10 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to $1.5 million or $.13 per diluted share for the same period of the prior year and $1.7 million or $.16 per diluted share in the first quarter of 2008. For the six months ended June 30, 2008, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 13% to $0.26 compared to $0.23 in 2007. Although the company has experienced strong improvement in its net interest margin, 2008 earnings have been impacted by a cautionary approach to guard against credit risk. The company continues to exceed regulatory thresholds to be regarded as "Well Capitalized". During the second quarter, the allowance for loan losses was strengthened by charging $1.4 million to the provision for loan losses to increase the total allowance to $9.3 million, or 1.87% of loans held for investment. Although there have been no loan losses thus far in 2008, the company has taken this precautionary pre·cau·tion·ar·y also pre·cau·tion·al adj. Of, relating to, or constituting a precaution: taking precautionary measures; gave precautionary advice. Adj. 1. measure in light of continued uncertainties associated with the real estate market. Non-performing assets (NPA (1) (Numbering Plan Area) The Bellcore/Telcordia telephone area code system in use in the U.S., Canada, Alaska, Hawaii and islands in the Caribbean. See NPA code. (2) (Network Professional Association, San Diego, CA, www.npanet. ) totaled $7.9 million or 1.46% of loans held for investment and loans held for sale plus real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . NPA dollar volume was unchanged from the first quarter and consists of commercial real estate loans in the amounts of $6.2 million and $267 thousand, one commercial loan in the amount of $159 thousand, two residential real estate loans totaling $1.0 million and one foreclosed residential property in the amount of $187 thousand. Subsequent to June 30, 2008, one commercial loan in the amount of $267 thousand and the foreclosed residential property have liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. , reducing NPA to $7.4 million. Following these transactions, the loan loss reserve coverage of NPAs is 125.7%. Assets totaled $649 million at June 30, 2008 compared to $622 million at December 31, 2007. Loans held for investment increased approximately $19.9 million from $477.6 million at December 31, 2007 to $497.5 million at June 30, 2008. Total interest bearing deposits at June 30, 2008 decreased from December 31, 2007 by $41.8 million and was partially offset by a $17.8 million increase in non-interest bearing deposits, driven by an expansion in the number of core business depositors. The remainder of the decrease in interest bearing deposits was offset by increases in both short and long term borrowings. The 30% year to date increase in non-interest bearing deposits reversed a decline recorded in the second half of 2007 and was a major contributing factor to expansion of the net interest margin to 3.55% from 3.02% for the three months ended June 30, 2008 compared to 2007. For the 6 month period, the margin improved to 3.36% in 2008 compared to 3.11% in 2007. The company's mortgage banking segment reported year to date 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 of $455 million, a 30% decline over volume of $653 million in the first six months of 2007. After having made substantive adjustments in 2007, the mortgage banking segment has been profitable in each of the first two quarters of 2008 and management believes that trend will continue. During the first six months of 2008, the Corporation purchased 808,411 shares of its common stock under a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. As of June 30, 2008 a total of 2,054,035 shares have been purchased under the share repurchase program that began on March 21, 2007 at an average cost of $7.47. Following the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. activity, the Corporation exceeds all regulatory standards to be regarded as "Well Capitalized". Access National Corporation is the parent company of Access National Bank, an independent nationally chartered bank Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission . The Bank, established in December 1999, serves the business community in the greater DC Metropolitan area. Additional information is available on our website at www.AccessNationalBank.com. The shares of Access National Corporation are traded on the NASDAQ National Market under the symbol "ANCX". 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 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 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 files. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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