e11vk
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
|
|
|
þ |
|
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2006
OR
|
|
|
o |
|
TRANSITION REPORT PUSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 333-118771
A. |
|
Full title of the plan and the address of the plan, if different from that of the issuer
named below: |
Access National Corporation 401(k) Profit Sharing Plan
(As Restated February 4, 2004)
B. |
|
Name of issuer of the securities held pursuant to the plan and the address of its principal
executive office: |
Access National Corporation
1800 Robert Fulton Drive, Suite 300
Reston, Virginia 20191
ACCESS NATIONAL CORPORATION
401(k) PROFIT SHARING PLAN
RESTON VA, 20191
REQUIRED INFORMATION
|
|
|
The Access National Corporation 401(k) Profit Sharing Plan (as restated February 4, 2004) (the
Plan) is subject to the Employee Retirement Income Security Act
of 1974 (ERISA).
Therefore, in lieu of the requirements of Items 1-3 of Form 11-K, the following financial
statements and schedules of the Plan as of December 31, 2006 and 2005, and for the year
ending December 31, 2006, which have been prepared in accordance with the financial
reporting requirements of ERISA, are provided: |
|
|
|
|
|
|
|
Page |
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
|
|
3 |
|
|
|
|
|
|
FINANCIAL STATEMENTS |
|
|
|
|
|
|
|
|
|
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS |
|
|
4 |
|
|
|
|
|
|
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS |
|
|
5 |
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS |
|
|
6 |
|
|
|
|
|
|
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES |
|
|
10 |
|
|
|
|
|
|
SCHEDULE OF DELINQUENT PARTICIPANT CONTRIBUTIONS |
|
|
11 |
|
|
|
|
|
|
SIGNATURE |
|
|
12 |
|
|
|
|
|
|
EXHIBITS |
|
|
|
|
|
|
|
|
|
(23) CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
|
|
13 |
|
2
Report of Independent Registered Public Accounting Firm
Access National Corporation
401(k) Profit Sharing Plan
Reston, Virginia
We have
audited the accompanying statements of net assets available for
benefits of the Access National
Corporation 401(k) Profit Sharing Plan (the Plan) as of December 31, 2006 and 2005 and the related
statement of changes in net assets available for benefits for the year ended December 31, 2006.
These financial statements are the responsibility of the Plans management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plans internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005 and
the changes in net assets available for benefits for the year ended December 31, 2006 in conformity
with accounting principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements
taken as a whole. The supplemental schedules of assets held for investment purposes at the end of
the year and delinquent participant contributions are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are supplementary
information required by the Department of Labors Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules
are the responsibility of the Plans management. The supplemental schedules have been subjected to
the auditing procedures applied in the audit of the basic 2006 financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic 2006 financial
statements taken as a whole.
As discussed in Note 2, the Plan adopted Financial Accounting Standards Board Staff Position AAG
INV-1 and SOP 94-4-1, Reporting of Fully Benefit Responsive Investment Contracts Held by Certain
Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health
and Welfare and Pension Plans, as of December 31, 2006 and 2005.
|
|
|
|
|
|
BDO Seidman, LLP |
|
|
Richmond, Virginia |
|
|
June 28, 2007 |
|
|
3
ACCESS NATIONAL CORPORATION 401(k) PLAN
Statements of Net Assets Available for Benefits
December 31, 2006 and 2005
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
|
2005 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at fair value: |
|
|
|
|
|
|
|
|
Mutual funds |
|
$ |
3,794,949 |
|
|
$ |
2,772,909 |
|
Self-directed brokerage accounts |
|
|
687,049 |
|
|
|
460,451 |
|
Metropolitan Life Ins Co GIC |
|
|
327,325 |
|
|
|
220,201 |
|
Participant loans |
|
|
33,675 |
|
|
|
11,507 |
|
|
|
|
|
|
|
|
Total Investments |
|
|
4,842,998 |
|
|
|
3,465,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables: |
|
|
|
|
|
|
|
|
Employer contribution |
|
|
10,587 |
|
|
|
9,706 |
|
Employee deferrals |
|
|
23,002 |
|
|
|
24,063 |
|
|
|
|
|
|
|
|
Total receivables |
|
|
33,589 |
|
|
|
33,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
549 |
|
|
|
472 |
|
|
|
|
|
|
|
|
Net assets available for benefits at fair value |
|
|
4,877,136 |
|
|
|
3,499,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment from fair value to contract value for
fully benefit responsive investment contract |
|
|
4,434 |
|
|
|
2,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits |
|
$ |
4,881,570 |
|
|
$ |
3,501,492 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
4
ACCESS NATIONAL CORPORATION 401(k) PLAN
Statement of Changes in Net Assets
Available for Benefits
For the Year Ended December 31, 2006
|
|
|
|
|
|
|
2006 |
|
Additions to net assets attributed to: |
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
Mutual funds |
|
$ |
483,421 |
|
Self-directed brokerage accounts |
|
|
(131,968 |
) |
Interest and dividends |
|
|
1,105 |
|
|
|
|
|
|
|
|
352,558 |
|
|
|
|
|
|
Contributions: |
|
|
|
|
Employer |
|
|
408,097 |
|
Participant |
|
|
834,874 |
|
Rollover and other contributions |
|
|
34,215 |
|
|
|
|
|
|
|
|
1,277,186 |
|
|
|
|
|
Total additions |
|
|
1,629,744 |
|
|
|
|
|
|
Deductions from net assets attributed to: |
|
|
|
|
Benefits paid to participants |
|
|
208,786 |
|
Administrative expenses |
|
|
40,880 |
|
|
|
|
|
Total deductions |
|
|
249,666 |
|
|
|
|
|
Net increase |
|
|
1,380,078 |
|
|
|
|
|
|
Net assets available for benefits: |
|
|
|
|
Beginning of period |
|
|
3,501,492 |
|
|
|
|
|
|
|
|
|
|
End of period |
|
$ |
4,881,570 |
|
|
|
|
|
See accompanying notes to financial statements.
5
ACCESS NATIONAL CORPORATION
401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
NOTE 1 DESCRIPTION OF PLAN
The following description of the Access National Corporation 401(k) Profit Sharing Plan (the
Plan) provides only general information. Participants should refer to the Plan agreement for a
more complete description of the Plans provisions.
General: The Plan is a Profit Sharing Plan pursuant to the provisions of Section 401(k) of
the Internal Revenue Code (Code) and covers eligible employees of Access National Bank and its
subsidiaries. The Plan was originally established in 2000 and last amended as of 2004. The Plan
provides for retirement, death, and disability benefits. The Plan is subject to the applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
Contributions: Eligible employees may elect to make contributions up to a maximum dollar
amount prescribed by law. Any participant who has attained age 50 by the end of the Plan year may
make catch-up contributions in accordance with Code Section 414(v). Participants direct the investment of their
contributions into various investment options offered by the Plan. Access National Corporation
(the Company) may contribute, at its discretion, a percentage of the
participants salary deferral
contribution, to be determined each year (the employer match). An employer matching contribution
of 50% of the compensation deferred was made in 2006 for all participants.
Participant Accounts: Each participants account is credited with the participants
contribution, the employers contributions and an allocation of Plan earnings. Allocations are
based on participant account balances, as defined. The benefit to which a participant is entitled
is the benefit that can be provided from the participants vested account.
Vesting: Participants are immediately vested in their voluntary and rollover contributions
plus actual earnings thereon. Vesting in the remainder of the accounts is based on years of
service. Participants become 100% vested in the employer match and
earnings thereon after completion of three years of credited service.
|
|
|
|
|
Number of Years of |
|
|
Vesting Service |
|
Vested Interest |
Less than 3 years |
|
|
0 |
% |
3 years |
|
|
100 |
% |
Payment of Benefits: Upon termination of service, death, disability or retirement,
a participant may elect to receive an amount equal to the value of the participants vested
interest in his or her account. Benefit payments are distributed in one of the following forms: a
joint and survivor annuity, a lump sum payment or installment payments.
6
ACCESS NATIONAL CORPORATION
401(k) PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
NOTE 1 DESCRIPTION OF PLAN (Continued)
Investment Options: All assets in the Plan are directed by individual participants.
Participants are given the option to direct account balances and all contributions into mutual
funds, money market funds and personal brokerage accounts. The Companys common stock is not a
direct investment option and can only be acquired through the personal brokerage account.
Loans:
Loans secured by participants Plan accounts shall be permitted under the Plan.
Loans are limited to the lesser of $50,000 or 50% of the participants vested interest in the Plan
and not to exceed a term of more than five years, unless the loan is for the purchase of a
principal residence. Loan principal and interest payments are made in accordance with the notes
amortization schedule, and made via payroll deductions.
Forfeitures: Forfeitures represent the non-vested portion of the participants account
plus earnings thereon that are not fully distributable to participants who terminate employment
before they are 100% vested. Forfeitures are used to reduce the future contributions to the Plan.
As of December 31, 2006 forfeitures of $52,601 were available. No forfeitures were used to reduce
the employer matching contribution for the plan year ended December 31, 2006.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method: The Plans financial statements are prepared on the accrual basis of
accounting in conformity with U.S. generally accepted accounting principles.
Investments: The investments held by the Plan are shown at fair value with an adjustment
to contract value for fully benefit responsive guaranteed investment contracts. The Plans
investments in mutual funds are valued based on quoted market prices as of the end of the plan
year. The self-directed brokerage accounts consist of common stock and mutual funds, stated at
fair value, based on quoted market prices. Loans to participants are valued at their outstanding
balances, which approximates fair value. Purchases and sales are recorded on a trade date basis.
As of December 31, 2006, the Plan adopted Financial Accounting Standards Board (FASB) Staff
Position FSP AAG INV-1 and Statement of Position No. 94-4-1, Reporting of Fully Benefit-Responsive
Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company
Guide and Defined-Contribution Health and Welfare and Pension Plans (the FSP). The FSP requires the
Statement of Net Assets Available for Benefits present the fair value of the Plans investments as
well as the adjustment from fair value to contract value for the fully benefit-responsive
investment contracts. The Statement of Changes in Net Assets Available for Benefits is prepared on
a contract value basis for the fully benefit-responsive investment contracts. The FSP was applied
retroactively to the prior period presented on the Statement of Net Assets Available for Benefits
as of December 31, 2005.
Contract
value for the fully benefit-responsive guaranteed investment contract represents
contributions plus earnings, less withdrawals by participants. The average crediting interest rate
for 2006 was 4.4% and the average yield was 4.55%. The crediting interest rate may be reset
quarterly and is determined by the issuer based on several agreed upon criteria, but cannot be less
than 0%.
7
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Payment of Benefits: Benefits are recorded when paid.
Risk and Uncertainties: The Plan provides for various investment options including any
combination of certain mutual funds, common stock of the Company, or common/collective trust funds.
The underlying investment securities are exposed to various risks, such as interest rate, market
and credit risks. Due to the level of risk associated with certain investment securities and the
level of uncertainty related to changes in the value of investment securities, it is at least
reasonably possible that changes in the values of investment securities will occur in the near term
and that such changes could materially affect the amounts reported in the statement of net assets
available for benefits and participants individual account balances.
Reclassifications: Certain reclassifications have been made to the prior year to conform to
current year presentation.
Use of Estimates: The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires the plan administrator to make estimates and
assumptions that affect certain reported amounts and disclosures, and actual results may differ
from these estimates.
NOTE 3 RIGHTS UPON PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right under the Plan to
discontinue its contributions at any time and to terminate the Plan subject to the provisions of
ERISA. In the event of Plan termination, participants would become 100% vested in their accounts.
NOTE 4 INVESTMENTS
The following presents investments that represent 5 percent or more of the Plans net assets at
December 31, 2006 and 2005:
|
|
|
|
|
|
|
|
|
|
|
2006 |
|
2005 |
American Funds Wash Mutual Invest R5 |
|
$ |
303,900 |
|
|
$ |
213,372 |
|
American Funds Cap World Growth & Income R5 |
|
|
833,664 |
|
|
|
549,949 |
|
Dodge Cox Income Fund |
|
|
256,737 |
|
|
|
188,844 |
|
Metropolitan Life Ins Co GIC |
|
|
331,759 |
|
|
|
222,384 |
|
Vanguard 500 Index Fund |
|
|
875,749 |
|
|
|
652,661 |
|
Vanguard small Cap Growth Index |
|
|
291,428 |
|
|
|
237,355 |
|
Vanguard Mid-Cap Index Fund Investor Shares |
|
|
356,884 |
|
|
|
261,863 |
|
Self-directed brokerage accounts |
|
|
687,049 |
|
|
|
460,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,937,170 |
|
|
$ |
2,786,879 |
|
|
|
|
8
NOTE 4 INVESTMENTS (Continued)
During 2006 the Plans investments (including gains and losses on investments bought and sold, as
well as held during the year) appreciated in value by $351,453 as follows:
|
|
|
|
|
|
|
December 31, |
|
|
|
2006 |
|
Mutual Funds |
|
$ |
483,421 |
|
Self-directed brokerage accounts |
|
|
(131,968 |
) |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
351,453 |
|
|
|
|
|
NOTE 5 PARTIES-IN-INTEREST
Parties-in-interest are defined under Department of Labor Regulations as any fiduciary of the Plan,
and party rendering services to the Plan, the employer, and certain others. Certain professional
fees for the administration of the Plan were paid by the Company. Fees paid by the Plan to
Columbia Benefits Consultants Inc., the Plan record keeper, and Mid-Atlantic Trust Company, the
Custodian, totaled $40,880 for 2006.
NOTE 6 TAX STATUS
The Internal Revenue Service has determined and informed the Company, by a letter dated February
12, 2003, that the Plan and related trust are designed in accordance with applicable sections of
the Code.
The Plan has been amended since receiving the determination letter. However, the Plan
administrator believes that the Plan is designed and is currently being operated in compliance with
the applicable requirements of the Code.
9
SUPPLEMENTAL SCHEDULE
ACCESS NATIONAL CORPORATION 401(k) PLAN
EIN 82-0545425, Plan 002
Schedule of Assets Held for Investment Purposes
As of December 31, 2006
|
|
|
|
|
|
|
|
|
|
|
Current |
|
Description of Asset/Identity of Issue |
|
Value |
|
|
|
Mutual Funds |
|
|
|
|
|
|
American Funds Cap World Growth & Income R5 |
|
$ |
833,664 |
|
|
|
Dodge & Cox Balanced Fund |
|
|
87,538 |
|
|
|
Dodge & Cox Income Fund |
|
|
256,737 |
|
|
|
Fidelity Comwlth Tr Sml Cp Stk |
|
|
71,969 |
|
|
|
Fidelity Mid-Cap Stock Fund |
|
|
123,862 |
|
|
|
American Funds Growth Fund of America R5 |
|
|
139,251 |
|
|
|
American Funds Income Fund of America R5 |
|
|
12,368 |
|
|
|
T Rowe Price Equity Income |
|
|
51,524 |
|
|
|
T Rowe Price Blue Chip Growth |
|
|
96,746 |
|
|
|
T Rowe Price Mid Cap Value |
|
|
88,714 |
|
|
|
Royce Special Equity Fund |
|
|
18,947 |
|
|
|
Vanguard Short Term Federal Fund |
|
|
1,731 |
|
|
|
Vanguard 500 Index Fund |
|
|
875,749 |
|
|
|
Vanguard Small Cap Growth Index |
|
|
291,428 |
|
|
|
Vanguard Mid-Cap Index Fund Investor Shares |
|
|
356,884 |
|
|
|
American Funds Wash Mutual Invest R5 |
|
|
303,900 |
|
|
|
Pioneer High Yield Fund A |
|
|
20,090 |
|
|
|
Vanguard Short Term Bond Index Fund Investor Shares |
|
|
163,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mutual Funds |
|
|
3,794,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Metropolitan Life Ins Co - GIC |
|
|
331,759 |
|
** |
|
Self-directed brokerage accounts |
|
|
687,049 |
|
*** |
|
Participant Loans with interest from 6% to 9.25% |
|
|
33,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets held for investment purposes |
|
$ |
4,847,432 |
|
|
|
|
|
|
|
|
|
|
* |
|
Indicates Guaranteed investment contract. |
|
** |
|
Self-directed brokerage accounts include stock of the
Plan sponsor, Access National Corporation, a party-in-interest to the Plan. |
|
*** |
|
Indicates a party-in-interest to the Plan. |
10
Access National Corporation 401(k) Plan
EIN 82-0545425, Plan 002
Schedule of Delinquent Participant Contributions
December 31, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total That Constitute |
|
|
Participant Contributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Exempt |
|
|
Transferred Late to |
|
Not |
|
|
|
|
|
Pending |
|
Prohibited |
|
|
Plan During Year |
|
Corrected |
|
Corrected |
|
Correction |
|
Transactions |
|
2006 |
|
$ |
283.27 |
|
|
|
0 |
|
|
$ |
283.27 |
|
|
|
0 |
|
|
$ |
283.27 |
|
|
11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the administrators of
the Access National Corporation 401(k) Profit Sharing Plan have duly caused this annual report to
be signed by the undersigned hereunto duly authorized.
|
|
|
|
|
Date: June 29, 2007 |
ACCESS NATIONAL CORPORATION
401(k) PROFIT SHARING PLAN
|
|
|
By: |
/s/
Michael W. Clarke
|
|
|
|
Michael W. Clarke |
|
|
|
President and Chief Executive Officer
Access National Corporation,
Trustee |
|
12