Profile: Access National Corp (ANCX.A)
16 Mar 2018
Access National Corporation, incorporated on May 12, 2003, is a bank holding company. The Company operates through its subsidiary, Access National Bank (the Bank). The Bank provides credit, deposit, mortgage services and wealth management services to middle market commercial businesses and associated professionals, primarily in the Washington, District of Columbia Metropolitan Area. 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 through three segments: traditional commercial banking, mortgage banking and wealth management. Its commercial banking segment includes loans, investment securities and deposit services. Its mortgage banking segment includes mortgage loans held for sale, sales of loans in the secondary mortgage market and loan origination. Its wealth management segment includes 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 interest to the mortgage banking segment 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. Its 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 the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and is able to securitize loans that are insured by the Federal Housing Administration. As of December 31, 2016, the Bank had net loans of approximately $1,033.7 million.
Commercial real estate loans-owner occupied consists of 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 commercial real estate loans 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 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 construction of residential or commercial buildings. Consumer loans are 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 consist of residential mortgage loans extended to consumers. Its 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. Securities classified as available-for-sale are carried at fair market value. Held-to-maturity securities are carried at cost or amortized cost. As of December 31, 2016, the Company's securities available for sale had a fair value of approximately $194.1 million and securities held-to-maturity had a fair value of approximately $9.3 million.
Sources of Funds
The Bank's primary sources of funds are client deposits and loan repayments. Its deposits are the primary source of funding loan growth. Its deposits include interest-bearing demand deposits, money market deposit accounts, savings accounts and time deposits. As of December 31, 2016, its deposits amounted to $1,054.3 million. Other short-term investments, such as federal funds sold and interest-bearing deposits with other banks are its additional sources of liquidity funding.
The Company's subsidiaries include 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). ARE acquires and holds 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 provides 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
1800 Robert Fulton Dr Ste 300
RESTON VA 20191-4346