Profile: Access National Corp (ANCX.O)
5 Oct 2015
Access National Corporation, incorporated on May 12, 2003, is a bank holding company. The Company operates through its wholly owned subsidiary Access National Bank (the Bank). The Bank offers a range of financial services and products and specializes in providing customized financial services to small and medium sized businesses, professionals and associated individuals. The Company operates in three segments: traditional commercial banking, mortgage banking and wealth management. Commercial banking operating revenues consist of interest earned on loans and investment securities and fees from deposit services. Mortgage banking operating revenues consist of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market and loan origination fee income. Wealth management operating revenues consist of transactional fees charged to clients, as well as fees for portfolio asset management. The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on a premium over their cost to borrow funds.
The Bank's lending activities include commercial real estate loans both owner occupied and non-owner occupied, residential real estate loans, commercial loans, commercial and real estate construction loans, home equity loans and consumer loans. These lending activities provide access to credit to small and medium sized businesses, professionals and consumers. Loans originated by the Bank are classified as loans held for investment. The Mortgage Division originates residential mortgages and home equity loans that are held on average 15 to 45 days pending their sale primarily to mortgage banking subsidiaries of financial institutions. The Bank is also approved to sell loans directly to Fannie Mae and Freddie Mac and is able to securitize loans that are insured by the Federal Housing Administration. As of December 31, 2014, loans held for investment totaled $776.6 million.
Commercial real estate loans-owner occupied represents loans supporting an owner occupied commercial property. Commercial real estate loans non-owner occupied includes loans secured by commercial property that is leased to third parties and loans to non-profit organizations, such as churches and schools. Also included in this category are loans secured by farmland and multifamily properties. Residential real estate loans include loans secured by first or second mortgages on one- to four-family residential properties. Commercial loans are to businesses or individuals within its target market for business purposes. Real estate construction loans include loans to construct owner occupied commercial buildings, loans to individuals that are ultimately used to acquire property and construct an owner occupied residence, loans to builders for the purpose of acquiring property and constructing homes for sale to consumers and loans to developers for the purpose of acquiring land that is developed into finished lots for the ultimate construction of residential or commercial buildings. Consumer loans are well secured with assets other than real estate, such as marketable securities or automobiles. Loans Held for Sale (LHFS) are originated by the Mortgage Division and consists of residential mortgage loans extended to consumers. Brokered loans are underwritten and closed by a third party lender.
The Company's investment securities portfolio consists of the United States Government Agency securities, municipal securities, Community Reinvestment Act (CRA) mutual fund, mortgage backed securities issued by the United States government sponsored agencies, corporate bonds and other asset backed securities. The investment portfolio is used to provide liquidity and as a tool for managing interest sensitivity in the balance sheet, while generating income. As of December 31, 2014, securities totaled $139.4 million and the securities portfolio consisted of $125.1 million in securities classified as available-for-sale and $14.3 million in securities classified as held-to-maturity. Securities classified as available-for-sale are carried at fair market value. Unrealized gains and losses are recorded directly to a separate component of shareholders' equity. Held-to-maturity securities are carried at cost or amortized cost.
Sources of Funds
Deposits are the primary source of funding loan growth and as of December 31, 2014, deposits totaled $755.4 million. The Company's primary sources of funds are client deposits and loan repayments. Other short-term investments, such as federal funds sold and interest-bearing deposits with other banks are additional sources of liquidity funding. As of December 31, 2014, overnight interest-bearing balances totaled $46.2 million.
The Company's subsidiaries include Access National Corporation (ANC), Access Real Estate L.L.C. (ARE), Access Capital Management Holding, L.L.C. (ACM), Capital Fiduciary Advisors, L.L.C. (CFA), Access Investment Services, L.L.C. (AIS) and ACME Real Estate, L.L.C. (ACME). ANC's primary purpose is to hold the common stock of the commercial bank subsidiary and support related capital activities. ARE was formed to acquire and hold title to real estate for the Company. ACM provides a full range of wealth management services to individuals. CFA is a registered investment advisor with the Securities and Exchange Commission (SEC) and provides wealth management services to individuals, businesses and institutions. AIS provide financial planning services to clients along with access to a full range of investment products. ACME is a real estate holding company, which holds title to the properties acquired by the Bank.
Access National Corp
14006 LEE JACKSON MEMORIAL HWY
CHANTILLY VA 20151-1602