Market Overview

Access National Announces Second Quarter 2017 Earnings

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Access National Corporation (NASDAQ:ANCX) (the "Corporation" or
"Access"), parent company for Access National Bank (the "Bank") and
Middleburg Investment Group, reported second quarter 2017 net income of
$3.85 million, or $0.19 per common share. Excluding merger related
one-time charges, net income was $7.46 million or $0.37 per diluted
share. This represents the Corporation's 68th consecutive
quarterly profit over its 70 quarter history. Consistent with
management's stated objective of a 40% to 50% dividend payout ratio
against core earnings, the Board of Directors declared a dividend of
$0.15 per share for common shareholders of record as of August 14, 2017
and payable on August 25, 2017.

Highlights

  • Strategic merger with Middleburg Financial Corporation (NASDAQ:MBRG)
    closed on schedule April 1, 2017 and data/office integrations remain
    on schedule for August 4, 2017;
  • Reported second quarter earnings of $3.85 million or $0.19 per diluted
    share. Excluding $5.2 million in pre-tax merger related costs ($3.6
    million after-tax), earnings were $7.46 million or $0.37 per diluted
    share;
  • Tangible book value1 per common share was $11.32 at June
    30, 2017, an increase of $0.09 from the prior period after considering
    merger costs;
  • Loans held for investment were $1.93 billion at June 30, 2017 compared
    to $943 million at June 30, 2016, a year-over-year growth of 204.5%.
    Exclusive of purchased loans, linked quarter growth was $38 million or
    7.8% annualized; and
  • Non-interest bearing demand deposits of $660 million were 30.2% of
    total deposits at June 30, 2017 compared to $392 million at June 30,
    2016, a year-over-year growth of 168.4%.

The transformative combination of Access National with Middleburg
Financial was consummated on April 1, 2017 as announced October 24,
2016. "While most of the expected overhead efficiencies have yet to be
realized, management's excitement and confidence over the financial
benefits of this combination strengthen daily. The evidence of our
confidence is best illustrated by the organic growth in the loan
portfolio and the positive quality migration of core deposits in spite
of significant management distraction towards integration and conversion
activities," said Michael Clarke, President and Chief Executive Officer
of Access. He continued, "We remain committed to delivering the base
line economic assumptions behind the merger and are confident that
future financial results will fortify and advance shareholder interests."

Second quarter 2017 pre-tax earnings were $5.9 million, up $1.8 million
from first quarter 2017, and included pre-tax merger related costs of
$5.2 million. The commercial banking segment's net interest income grew
$12.5 million when compared to the first quarter of 2017 and was offset
by an increase in salaries and employee benefits of $3.8 million. The
mortgage banking segment has been relatively unaffected by the merger,
contributing pre-tax earnings of $1.2 million or 20% of the consolidated
total. The wealth services segment saw a $1.1 million increase in
revenue which was offset by an increase in operating expenses of $849
thousand when comparing the second quarter of 2017 to the first quarter
of 2017. The earnings contributions from wealth services will be
developing over the next few quarters as the unprofitable operations of
the legacy Access segment are integrated with and suppress the
profitable operations of Middleburg Investment Group. Departure of
underperforming personnel and loss of select underpriced accounts during
the second quarter transition will result in reduced overhead of a
greater magnitude than loss of revenue contribution from associated lost
business. The leadership of Middleburg Investment Group and the expanded
capabilities resulting from the merger are enhancing the client value
proposition in a way that will produce consistent and growing fee income.

The net interest margin increased to 3.91% from 3.46% when comparing
second quarter to first quarter 2017. Second quarter net interest margin
exclusive of the $1.9 million credit mark accretion for the acquired
loan portfolio and the $34 thousand in liability discount amortization
was 3.61% for the three months ended June 30, 2017.

Total assets were $2.8 billion at June 30, 2017, up from $1.4 billion at
March 31, 2017. Organic growth in loans held for investment excluding
the growth attributed to the acquired loan portfolio was $38.0 million
on a linked quarter basis due mainly to growth in commercial real estate
of $29.7 million and commercial of $10.3 million. The organic growth
from the linked period reflects intended migration as the residential
and consumer loan categories decreased while commercial, commercial real
estate and construction categories grew.

Total deposits at June 30, 2017 were $2.2 billion, an increase of $1.0
billion when compared to March 31, 2017. At June 30, 2017, non-interest
bearing deposits which represent 30.2% of the deposit portfolio were
$660.5 million, an increase of $283.8 million from the linked quarter.
While non-interest bearing demand deposits remain the largest and most
attractive source of funding for the Corporation, the combination of
legacy Middleburg's significant low cost interest-bearing demand
deposits and legacy Access' non-interest bearing demand deposits
accounted for $1.1 billion or 51.0% of total deposits at June 30, 2017.
Interest-bearing deposits increased to $1.5 billion at June 30, 2017, an
increase of $746.4 million from the prior quarter. Brokered deposits as
a percentage of the deposit portfolio decreased quarter over quarter,
from 9.5% of the portfolio at March 31, 2017 to 4.6% at June 30, 2017.
Exclusive of purchased deposits, wholesale deposits declined $52.8
million on a linked quarter basis. The go-forward strategy places a high
priority on the maintenance and expansion of core deposits, particularly
high value demand deposit relationships.

As a result of the strategic merger, the loan to deposit ratio dropped
to 88.2% at June 30, 2017 from 92.7% in the prior period. Appropriately
leveraging the loan to deposit ratio in future periods represents an
earnings growth opportunity.

Non-performing assets ("NPAs") increased to $9.0 million at June 30,
2017 from $5.2 million at March 31, 2017, representing 0.32% and 0.37%
of total assets, respectively. Included in the NPAs total is $2.4
million in other real estate owned. The allowance for loan loss was
$14.7 million and $13.7 million at June 30, 2017 and March 31, 2017,
respectively, and represented 0.76% of total loans held for investment
at June 30, 2017 and 1.28% of total loans held for investment at March
31, 2017. The remaining credit and fair value marks on the loans
acquired in the merger totaled $16.0 million at June 30, 2017.

Tangible book value2 per common share increased from $11.23
at March 31, 2017 to $11.32 at June 30, 2017. The tangible common equity
ratio for Access National Corporation and its subsidiary bank was 8.97%
at June 30, 2017, within the Corporation's target range of 8.00% to
10.50%.

Access National Corporation is the parent company of Access National
Bank and Middleburg Investment Group serving Northern and Central
Virginia. 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".

Forward-Looking Statements

The information presented herein contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995 regarding expectations or predictions of future financial or
business performance or conditions. Forward-looking statements may be
identified by words such as "may," "could," "will," "expect," "believe,"
"anticipate," "forecast," "intend," "plan," "prospects," "estimate,"
"potential," or by variations of such words or by similar expressions.
These forward-looking statements are subject to numerous assumptions,
risks and uncertainties which change over time. Forward-looking
statements in this report may include, but are not limited to,
statements about projected impacts of and financial results generated by
the merger of Access and Middleburg Financial Corporation
("Middleburg"). Forward-looking statements speak only as of the date
they are made and Access assumes no duty to update forward-looking
statements.

In addition to factors previously disclosed in Access's reports filed
with the SEC and those identified elsewhere in this release, the
following factors, among others, could cause actual results to differ
materially from the results expressed in or implied by forward-looking
statements and historical performance: changes in asset quality and
credit risk; changes in interest rates and capital markets; the
introduction, timing and success of business initiatives; competitive
conditions; and the inability to recognize cost savings or revenues or
to implement integration plans associated with the merger of Access and
Middleburg.

 

1   Non-GAAP financial information.
2 Non-GAAP financial information.
 
 
Access National Corporation
Consolidated Balance Sheet
 
  June 30   December 31,   June 30,
2017 2016 2016
(In Thousands Except for Share and Per Share Data)   (Unaudited)       (Unaudited)
 
ASSETS
 
Cash and due from banks $ 19,772 $ 9,186 $ 14,994
 
Interest-bearing balances and federal funds sold 46,889 81,873 66,541
 
Investment securities:
Available-for-sale, at fair value 402,557 194,090 173,558
Held-to-maturity, at amortized cost (fair value of $16,449, $9,293
and $9,487, respectively)
  15,786     9,200     9,228
Total investment securities 418,343 203,290 182,786
 
Restricted Stock, at amortized cost 8,742 10,092 7,159
 
Loans held for sale - at fair value 34,954 35,676 55,116
 

Loans held for investment net of allowance for loan losses of
$14,671, $16,008 and $13,834, respectively

1,913,674 1,033,690 928,895
 
Premises, equipment and land, net 29,363 7,084 6,822
 
Goodwill and intangible assets 184,194 1,833 1,857
 
Other assets 101,059 47,984 40,701
     
Total assets $ 2,756,990   $ 1,430,708   $ 1,304,871
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
LIABILITIES
Noninterest-bearing deposits $ 660,481 $ 362,036 $ 392,269
 
Interest-bearing demand deposits 454,675 126,189 123,638
 
Savings and money market deposits 611,708 314,396 242,026
 
Time deposits   460,342     251,706     286,612
 
Total deposits 2,187,206 1,054,327 1,044,545
 
Short-term borrowings 55,429 186,009 56,763
 
Long-term borrowings 80,000 60,000 75,000
 
Trust Preferred Debentures 3,843 - -
 
Other liabilities and accrued expenses 15,644 9,842 10,177
     
Total Liabilities   2,342,122     1,310,178     1,186,485
 
SHAREHOLDERS' EQUITY

Common stock $0.835 par value; 60,000,000 authorized; issued and
outstanding, 20,378,994, 10,636,242 and 10,583,594, respectively

17,016 8,881 8,837
 
Additional paid in capital 303,997 21,779 20,625
 
Retained earnings 94,664 91,439 87,188
 
Accumulated other comprehensive income (loss), net (809 ) (1,569 ) 1,736
     
Total shareholders' equity   414,868     120,530     118,386
     
Total liabilities and shareholders' equity $ 2,756,990   $ 1,430,708   $ 1,304,871
 
 
Access National Corporation
Consolidated Statement of Operations
 
    Three Months Ended     Six Months Ended
June 30, 2017     June 30, 2016 June 30, 2017     June 30, 2016
(In Thousands Except for Share and Per Share Data)     (unaudited)     (unaudited)
 
INTEREST INCOME
Interest and fees on loans $ 23,746 $ 11,354 $ 35,945 $ 22,230
 
Interest on federal funds sold and bank balances 221 96 352 166
 
Interest and dividends on securities   3,172   886   4,396   1,921
Total interest income 27,139 12,336 40,693 24,317
 
INTEREST EXPENSE
Interest on deposits 2,419 1,274 3,921 2,425
 
Interest on other borrowings   545   301   907   581
Total interest expense   2,964   1,575   4,828   3,006
Net interest income 24,175 10,761 35,865 21,311
 
Provision for loan losses   900   120   2,300   120
Net interest income after provision for loan losses 23,275 10,641 33,565 21,191
 
NONINTEREST INCOME
Service charges and fees 669 239 949 499
 
Gain on sale of loans 6,046 7,273 9,391 11,103
 
Other Income   2,170   1,661   4,548   4,390
Total noninterest income 8,885 9,173 14,888 15,992
 
NONINTEREST EXPENSE
Salaries and benefits 12,660 8,407 20,700 16,075
 
Occupancy and equipment 1,981 749 2,801 1,510
 
Other operating expense   11,585   3,147   14,920   5,847
Total noninterest expense   26,226   12,303   38,421   23,432
Income before income tax 5,934 7,511 10,032 13,751
 
Income tax expense   2,088   2,633   3,579   4,778
NET INCOME $ 3,846 $ 4,878 $ 6,453 $ 8,973
 
Earnings per common share:
Basic $ 0.19 $ 0.46 $ 0.42 $ 0.85
Diluted $ 0.19 $ 0.46 $ 0.41 $ 0.84
 
Average outstanding shares:
Basic 20,335,070 10,576,516 15,529,934 10,564,833
Diluted 20,453,991 10,639,167 15,655,613 10,622,763
 
         
Performance and Capital Ratios
                     
Three Months Three Months Six Months Six Months Twelve Months
Ended Ended Ended Ended Ended
June 30, March 31, June 30, June 30, December 31,
(Dollars In Thousands)   2017   2017   2017   2016   2016
 
Return on average assets (annualized) 0.55 % 0.74 % 0.62 % 1.45 % 1.27 %
Return on average equity (annualized) 3.73 % 8.57 % 4.83 % 15.89 % 14.11 %
Net interest margin 3.91 % 3.46 % 3.75 % 3.56 % 3.52 %
Efficiency ratio - Bank only 59.23 % 53.26 % 57.30 % 50.64 % 49.59 %
Total average equity to earning assets 16.68 % 8.99 % 13.95 % 9.43 % 9.36 %
Tangible common equity ratio (1) 8.97 % 8.65 % 8.97 % 8.94 % 8.31 %
 
Averages
Assets $ 2,789,088 $ 1,401,652 $ 2,096,372 $ 1,238,662 $ 1,288,582
Loans held for investment 1,896,824 1,052,167 1,474,551 910,300 939,837
Loans held for sale 28,254 24,461 26,368 39,982 47,060
Interest-bearing deposits & federal funds sold 121,572 64,628 94,174 68,435 67,457
Investment securities 422,792 209,533 316,345 179,600 189,585
Earning assets 2,471,036 1,353,360 1,913,515 1,197,547 1,242,923
Interest-bearing deposits 1,523,997 761,075 1,143,566 634,692 662,271
Total deposits 2,163,567 1,096,309 1,631,078 962,973 1,021,624
Repurchase agreements & federal funds purchased 53,949 28,369 41,148 15,712 16,270
FHLB short term borrowings 57,824 86,200 71,934 68,791 56,522
FHLB long-term borrowings 79,892 59,556 69,698 69,478 68,525
Trust Preferred debt 3,824 - 1,919 - -
Equity $ 412,146 $ 121,724 $ 266,951 $ 112,908 $ 116,296
 
Allowance for loan losses/loans held for investment 0.76 % 1.28 % 0.76 % 1.47 % 1.53 %
Total NPA $

8,954

$ 5,244 $ 6,506 $ 1,866 $ 6,922
NPA to total assets

0.32

% 0.37 % 0.24 % 0.14 % 0.48 %
 
Mortgage loan originations and brokered loans $ 116,958 $ 94,500 $ 211,458 $ 260,644 $ 544,866
Gain on sale of mortgage loans net hedging activity $ 5,421 $ 3,416 $ 8,837 $ 9,814 $ 23,835
Allowance for losses on mortgage loans sold $ 1,029 $ 1,029 $ 1,029 $ 1,029 $ 1,029
 
Wealth Services segment - assets under management $ 1,927,629 $ 676,865 $ 1,927,629 $ 625,000 $ 667,300
 
Book value per common share $ 20.36 $ 11.40 $ 20.36 $ 11.19 $ 11.33
 
Tangible book value per common share (1) $ 11.32 $ 11.23 $ 11.32 $ 11.01 $ 11.16
                     
 
(1) Non-GAAP financial information.
 
 
Composition of Loan Portfolio
                                                   
    June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016   June 30, 2016

 

    Percentage     Percentage     Percentage     Percentage     Percentage

(Dollars In Thousands)

  Amount   of Total   Amount   of Total   Amount   of Total   Amount   of Total   Amount   of Total
 

Commercial real estate - owner occupied

$ 401,853 20.84 % $ 262,431 23.87 % $ 250,440 23.87 % $ 238,224 24.65 % $ 235,735 25.01 %
Commercial real estate - non-owner occupied 377,037 19.55 205,452 17.59 184,688 17.59 174,342 18.04 153,206 16.25
Residential real estate 525,649 27.26 212,007 19.47 204,413 19.47 202,605 20.96 208,311 22.10
Commercial 476,055 24.69 294,451 29.67 311,486 29.67 264,794 27.40 257,139 27.28
Real estate construction 124,186 6.44 91,614 8.75 91,822 8.75 79,621 8.24 79,200 8.39
Consumer   23,565   1.22     6,836   0.65     6,849   0.65     6,959   0.71     9,138   0.97  
Total loans $ 1,928,345 100.00 % $ 1,072,791 100.00 % $ 1,049,698 100.00 % $ 966,545 100.00 % $ 942,729 100.00 %
Less allowance for loan losses   14,671   13,727   16,008   14,696   13,834
$ 1,913,674 $ 1,059,064 $ 1,033,690 $ 951,849 $ 928,895
 
 
Composition of Deposits
                                                   
    June 30, 2017   March 31, 2017   December 31, 2016   September 30, 2016   June 30, 2016

 

    Percentage     Percentage     Percentage     Percentage    

Percentage

(Dollars In Thousands)

  Amount   of Total   Amount   of Total   Amount   of Total   Amount   of Total   Amount  

of Total

 
Demand deposits $ 660,481 30.20 % $ 376,674 32.56 % $ 362,036 34.34 % $ 409,558 36.73 % $ 392,269 37.55 %
Interest-bearing demand deposits 454,675 20.79 141,981 12.27 126,189 11.97 124,856 11.20 123,638 11.84
Savings and money market 562,581 25.72 284,182 24.56 270,310 25.64 265,308 23.79 206,566 19.78
CDARS time deposits 39,746 1.82 41,369 3.58 34,290 3.25 36,948 3.31 53,212 5.09
CDARS/ICS non-maturity deposits 44,009 2.01 42,960 3.71 40,925 3.88 46,156 4.14 35,247 3.37
Brokered deposits 101,419 4.64 110,254 9.53 57,389 5.44 68,483 6.14 69,139 6.62
Time deposits   324,295   14.82       159,570   13.79       163,188   15.48       163,744   14.69       164,474   15.75  
Total Deposits $ 2,187,206   100.00 %   $ 1,156,990   100.00 %   $ 1,054,327   100.00 %   $ 1,115,053   100.00 %   $ 1,044,545   100.00 %
 
 
Yield on Average Earning Assets and Rates on Average
Interest-Bearing Liabilities
Three Months Ended
           
                         
    June 30, 2017   June 30, 2016
Average Income / Yield / Average Income / Yield /
(Dollars In Thousands)   Balance   Expense   Rate   Balance   Expense   Rate
 
Assets:
Interest-earning assets:
Securities $ 424,387 $ 3,172 2.99 % $ 181,327 $ 886 1.95 %
Loans held for sale 28,254 297 4.20 % 45,357 437 3.85 %
Loans(1) 1,896,824 23,449 4.94 % 915,218 10,917 4.77 %
Interest-bearing balances and federal funds sold   121,572       221   0.73 %   84,007       96   0.46 %
Total interest-earning assets 2,471,037 27,139 4.39 % 1,225,909 12,336 4.03 %
Noninterest-earning assets:
Cash and due from banks 17,131 12,513
Premises, land and equipment 29,459 6,959
Other assets 285,518 36,775
Less: allowance for loan losses   (14,057 )   (13,652 )
Total noninterest-earning assets   318,051     42,595  
Total Assets $ 2,789,088   $ 1,268,504  
 
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
Interest-bearing demand deposits $ 472,065 $ 345 0.29 % $ 133,147 $ 126 0.38 %
Money market deposit accounts 367,590 478 0.52 % 190,324 166 0.35 %
Savings accounts 191,409 212 0.44 % 32,520 43 0.53 %
Time deposits   492,932       1,384   1.12 %   301,372       939   1.25 %
Total interest-bearing deposits 1,523,996 2,419 0.63 % 657,363 1,274 0.78 %
Borrowings:
FHLB short-term borrowings and subordinated debt 61,649 332 2.15 % 51,154 88 0.69 %
Securities sold under agreements to repurchase and fed funds
purchased
53,949 26 0.19 % 13,981 4 0.11 %
FHLB long-term borrowings   79,892       188   0.94 %   74,341       209   1.12 %
Total borrowings   195,490       546   1.12 %   139,476       301   0.86 %
Total interest-bearing deposits and borrowings 1,719,486 2,965 0.69 % 796,839 1,575 0.79 %
Noninterest-bearing liabilities:
Demand deposits 639,570 348,056
Other liabilities   17,886     8,861  
Total liabilities 2,376,942 1,153,756
Shareholders' Equity   412,146     114,748  
Total Liabilities and Shareholders' Equity $ 2,789,088   $ 1,268,504  
 
Interest Spread(2) 3.70 % 3.23 %
 
Net Interest Margin(3) $ 24,174   3.91 % $ 10,761   3.51 %
 
     

(1)

 

Loans placed on nonaccrual status are included in loan balances.

(2)

Interest spread is the average yield earned on earning assets,
less the average rate incurred on interest-bearing liabilities.

(3)

 

Net interest margin is net interest income, expressed as a
percentage of average earning assets.

 
                       
Yield on Average Earning Assets and Rates on Average
Interest-Bearing Liabilities
Six Months Ended
 
 
      June 30, 2017     June 30, 2016
Average Income / Yield / Average Income / Yield /
(Dollars In Thousands)     Balance     Expense     Rate     Balance     Expense     Rate
 
Assets:
Interest-earning assets:
Securities $ 318,422 $ 4,396 2.76 % $ 179,600 $ 1,921 2.14 %
Loans held for sale 26,368 547 4.15 % 39,982 781 3.91 %
Loans(1) 1,474,551 35,398 4.80 % 910,300 21,449 4.71 %
Interest-bearing balances and federal funds sold   94,174         352     0.75 %   68,435         166     0.49 %
Total interest-earning assets 1,913,515 40,693 4.25 % 1,198,317 24,317 4.06 %
Noninterest-earning assets:
Cash and due from banks 14,416 12,110
Premises, land and equipment 18,280 6,843
Other assets 164,945 35,008
Less: allowance for loan losses   (14,784 )   (13,616 )
Total noninterest-earning assets   182,857     40,345  
Total Assets $ 2,096,372   $ 1,238,662  
 
Liabilities and Shareholders' Equity:
Interest-bearing deposits:
Interest-bearing demand deposits $ 307,685 $ 498 0.32 % $ 129,064 $ 233 0.36 %
Money market deposit accounts 313,339 823 0.53 % 166,273 265 0.32 %
Savings accounts 126,103 302 0.48 % 33,609 90 0.54 %
Time deposits   396,439         2,298     1.16 %   305,746         1,837     1.20 %
Total interest-bearing deposits 1,143,566 3,921 0.69 % 634,692 2,425 0.76 %
Borrowings:
FHLB short-term borrowings and subordinated debt 73,853 498 1.35 % 68,791 211 0.61 %
Securities sold under agreements to repurchase and fed funds
purchased
41,148 42 0.20 % 15,712 7 0.09 %
FHLB long-term borrowings   69,698         368     1.06 %   69,478         363     1.04 %
Total borrowings   184,699         908     0.98 %   153,981         581     0.75 %
Total interest-bearing deposits and borrowings 1,328,265 4,829 0.73 % 788,673 3,006 0.76 %
Noninterest-bearing liabilities:
Demand deposits 487,511 328,281
Other liabilities   13,645     8,800  
Total liabilities 1,829,421 1,125,754
Shareholders' Equity   266,951     112,908  
Total Liabilities and Shareholders' Equity $ 2,096,372   $ 1,238,662  
 
Interest Spread(2) 3.53 % 3.30 %
 
Net Interest Margin(3) $ 35,864     3.75 % $ 21,311     3.56 %
 
 

(1) Loans placed on nonaccrual status are included in
loan balances.

(2) Interest spread is the average yield earned on
earning assets, less the average rate incurred on interest-bearing
liabilities.

(3) Net interest margin is net interest income,
expressed as a percentage of average earning assets.

 
 
Segment Reporting
                       
Three Months Ended Commercial Mortgage Trust & Wealth Consolidated
June 30, 2017     Banking Banking Management Other Eliminations Totals
(In Thousands)
Revenues:
Interest income $ 26,917 $ 297 $ 3 $ 6 $ (84 ) $ 27,139
Gain on sale of loans - 6,046 - - - 6,046
Other revenues   1,703   (692 )   1,824     328     (323 )   2,840
Total revenues   28,620   5,651     1,827     334     (407 )   36,025
 
Expenses:
Interest expense 2,854 16 - 179 (84 ) 2,965
Salaries and employee benefits 8,240 3,193 1,227 - - 12,660
Other expenses   7,922   1,256     452     5,160     (323 )   14,467
Total operating expenses   19,016   4,465     1,679     5,339     (407 )   30,092
 
Income (loss) before income taxes $ 9,604 $ 1,186   $ 148   $ (5,005 ) $ -   $ 5,933
 
Total assets $ 2,685,238     $ 37,923       $ 41,437       $ 418,877       $ (426,485 ) $ 2,756,990
 
 
Three Months Ended Commercial Mortgage Wealth Consolidated
June 30, 2016     Banking Banking Management Other Eliminations Totals
(In Thousands)
Revenues:
Interest income $ 12,092 $ 437 $ - $ 6 $ (199 ) $ 12,336
Gain on sale of loans - 7,273 - - - 7,273
Other revenues   1,290   (134 )   718     342     (316 )   1,900
Total revenues   13,382   7,576     718     348     (515 )   21,509
 
Expenses:
Interest expense 1,580 127 - 67 (199 ) 1,575
Salaries and employee benefits 4,165 3,714 528 - - 8,407
Other expenses   1,867   1,567     259     639     (316 )   4,016
Total operating expenses   7,612   5,408     787     706     (515 )   13,998
 
Income (loss) before income taxes $ 5,770 $ 2,168   $ (69 ) $ (358 ) $ -   $ 7,511
 
Total assets $ 1,245,441 $ 60,831   $ 2,861   $ 17,772   $ (22,034 ) $ 1,304,871
 
 
Segment Reporting
                       
Six Months Ended Commercial Mortgage Trust & Wealth Consolidated
June 30, 2017     Banking Banking Management Other Eliminations Totals
(In Thousands)
Revenues:
Interest income $ 40,311 $ 547 $ 3 $ 12 $ (180 ) $ 40,693
Gain on sale of loans - 9,391 - - - 9,391
Other revenues   2,468   434   2,578     664     (646 )   5,498
Total revenues   42,779   10,372   2,581     676     (826 )   55,582
 
Expenses:
Interest expense 4,724 43 - 242 (180 ) 4,829
Salaries and employee benefits 12,658 6,224 1,818 - - 20,700
Other expenses   11,449   2,097   691     6,431     (646 )   20,022
Total operating expenses   28,831   8,364   2,509     6,673     (826 )   45,551
 
Income (loss) before income taxes $ 13,948 $ 2,008 $ 72   $ (5,997 ) $ -   $ 10,031
 
Total assets $ 2,685,238     $ 37,923     $ 41,437       $ 418,877       $ (426,485 ) $ 2,756,990
 
 
Six Months Ended Commercial Mortgage Wealth Consolidated
June 30, 2016     Banking Banking Management Other Eliminations Totals
(In Thousands)
Revenues:
Interest income $ 23,848 $ 781 $ - $ 10 $ (322 ) $ 24,317
Gain on sale of loans - 11,103 - - - 11,103
Other revenues   2,226   1,113   1,496     689     (635 )   4,889
Total revenues   26,074   12,997   1,496     699     (957 )   40,309
 
Expenses:
Interest expense 3,016 178 - 134 (322 ) 3,006
Salaries and employee benefits 8,088 6,899 1,088 - - 16,075
Other expenses   3,707   2,636   550     1,219     (635 )   7,477
Total operating expenses   14,811   9,713   1,638     1,353     (957 )   26,558
 
Income (loss) before income taxes $ 11,263 $ 3,284 $ (142 ) $ (654 ) $ -   $ 13,751
 
Total assets $ 1,245,441 $ 60,831 $ 2,861   $ 17,772   $ (22,034 ) $ 1,304,871
 

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