Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MIDDLEBURG FINANCIAL CORP | f8kmbrg08022013.htm |
| EX-99.2 - SECOND QUARTER 2013 DIVIDEND RELEASE - MIDDLEBURG FINANCIAL CORP | ex992.htm |
Exhibit 99.1
E A R N I N G S R E L E A S E
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Press Contacts:
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Gary R. Shook, President & CEO
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540-687-4801 or
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pres@middleburgbank.com
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Raj Mehra, EVP & CFO
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540-687-4816 or
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cfo@middleburgbank.com
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Jeffrey H. Culver, EVP & COO
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703-737-3470 or
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coo@middleburgbank.com
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MIDDLEBURG FINANCIAL CORPORATION ANNOUNCES SECOND QUARTER 2013 RESULTS
MIDDLEBURG, VA. – August 2, 2013 – Middleburg Financial Corporation (the “Company”) (Nasdaq: MBRG), today announced net income of $2.1 million or $0.29 per diluted share for the second quarter of 2013.
“The second quarter showed the results of our priorities which are loan growth, problem assets reduction and expense control, commented Gary R. Shook, president and Chief Executive Officer of Middleburg Financial Corporation. “All of those factors contributed to our best quarterly net income since 2006. With that said, we understand that we still have more to do as we endeavor to achieve best in class performance. We are pleased with the strength of our loan pipeline and the growth in our wealth management operations. Mortgage lending rebounded from the first quarter, amid strong purchase loan originations.” Mr. Shook continued, “We are pleased to see economic momentum beginning to return to our primary Loudoun and Northern Virginia markets coupled with loan and deposit growth in the Richmond marketplace. Problem assets are still somewhat elevated; however, we are making progress in reducing levels of problem loans and OREO.”
Second Quarter 2013 Highlights:
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·
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Net income of $2.1 million or $0.29 per diluted share, compared to $1.8 million or $0.25 per diluted share for the second quarter of 2012, an increase of 18.3% when comparing calendar quarters;
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·
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Net interest margin of 3.40%, compared to 3.45% for the previous quarter and 3.57% for the second quarter of 2012;
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·
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Total revenue of $16.4 million, an increase of 6.9% compared to the first quarter of 2013;
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·
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Total assets of $1.2 billion, unchanged compared to March 31, 2013;
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·
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Deposits decreased by $4.2 million or 0.4% since March 31, 2013;
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·
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Loans held-for-investment decreased by $7.6 million or 1.0% since March 31, 2013, primarily due to elevated levels of payoffs;
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·
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The ratio of Non Performing Assets to Total Assets was 2.80% as of June 30, 2013 compared to 2.77% at March 31, 2013 and 3.10% at June 30, 2012;
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·
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Capital ratios continue to be strong: Tangible Common Equity Ratio of 8.8%, Total Risk-Based Capital Ratio of 15.4%, Tier 1 Risk-Based Capital Ratio of 14.2%, and a Tier 1 Leverage Ratio of 9.3% at June 30, 2013.
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Total Revenue
Total revenue which is comprised of Net Interest Income (before a provision for loan losses) and Non Interest Income was $16.4 million in the quarter ended June 30, 2013, representing an increase of 6.9% compared to the previous quarter and a decrease of $408,000 or 2.4% from the quarter ended June 30, 2012.
Net interest income was $9.3 million during the three months ended June 30, 2013, which was 1.0% lower than the quarter ended March 31, 2013 and a decrease of 3.3% compared to the quarter ended June 30, 2012. The yield on average earning assets was 3.97% for the quarter ended June 30, 2013 compared to 4.08% for the previous quarter and 4.40% for the quarter ended June 30, 2012, representing a decrease of 11 basis points from the previous quarter and a decrease of 43 basis points from the quarter ended June 30, 2012. Loan yields decreased by 16 basis points while the yield for the securities portfolio decreased by 12 basis points from the previous quarter. The primary reasons for the decline in loan yields were elevated levels of loan payoffs and lower yields on new loans.
The average annualized cost of interest bearing liabilities was 0.72% for the quarter ended June 30, 2013, compared to 0.78% in the previous quarter, and 1.00% for the quarter ended June 30, 2012, representing a decrease of 6 basis points from the previous quarter and a decrease of 28 basis points from the quarter ended June 30, 2012. Annualized costs for interest bearing retail deposits decreased by 5 basis points from the previous quarter to 0.64% from 0.69% and decreased by 29 basis points from the same quarter last year. The decline in the annualized cost of interest bearing retail deposits from both the previous quarter and the same quarter last year was due to reduced interest expenses broadly across deposit categories, including interest checking, savings and time deposits. An annualized cost for wholesale borrowings (excluding brokered deposits) was 1.33%, a decrease of 14 basis points compared to the previous quarter and higher by 1 basis point compared to the quarter ended June 30, 2012.
Cost of funds is calculated by dividing annualized total interest expense by the sum of average interest bearing liabilities and average demand deposits. Cost of funds was 0.61% for the quarter ended June 30, 2013 compared to 0.66% for the quarter ended March 31, 2013, a decrease of 5 basis points. Cost of funds decreased 25 basis points compared to the quarter ended June 30, 2012.
The net interest margin for the three months ended June 30, 2013 was 3.40%, compared to 3.45% for the previous quarter, and 3.57% for the quarter ended June 30, 2012, representing a decrease of 5 basis points from the previous quarter and a decrease of 17 basis points compared to the quarter ended June 30, 2012.
The Company’s net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitably earning assets are funded. The Company’s net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non-taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34.0%. Details on the calculation of the net interest margin are included in the “Key Statistics” table.
Non-interest income increased by $1.1 million or 19.4% when comparing the quarter ended June 30, 2013 to the previous quarter and decreased by 1.3% compared to the quarter ended June 30, 2012. Gains on mortgage loan sales increased by 15.2% when comparing the quarter ended June 30, 2013 to the previous quarter and decreased by 11.7% when compared to the quarter ended June 30, 2012. Gains on mortgage loan sales included in the accompanying statements of income are presented net of originator commissions incurred to originate the loans.
Southern Trust Mortgage closed $209.8 million in mortgage loans during the quarter ended June 30, 2013 compared to $191.1 million closed during the previous quarter, and $233.5 million closed during the quarter ended June 30, 2012, an increase of 9.8% compared to the previous quarter and a decrease of 10.2% when comparing the same calendar quarters.
The revenues and expenses of Southern Trust Mortgage are reflected in the Company’s financial statements on a consolidated basis following generally accepted accounting principles in the United States. The outstanding equity interest not held by the Company is reported on the Company’s balance sheets as “Non-controlling interest in consolidated subsidiary” and the earnings or loss attributable to the non-controlling interest is reported on the Company’s statements of income as “Net (income) / loss attributable to non-controlling interest.”
Total revenue generated by our wealth management group, Middleburg Investment Group (“MIG”) was $1.2 million for the quarter ended June 30, 2013 compared to $1.0 million in the previous quarter and $1.1 million in the quarter ended June 30, 2012. Middleburg Investment Group is comprised of Middleburg Trust Company, a wholly owned subsidiary of the Company and Middleburg Investment Services, which is a division of Middleburg Bank. Fee income is based primarily upon the market value of the accounts under administration. Total consolidated assets under administration by MIG were $1.5 billion at June 30, 2013 and June 30, 2012.
Net gains on securities available for sale were $326,000 during the quarter ended June 30, 2013 compared to gains of $47,000 during the previous quarter and gains of $148,000 during the quarter ended June 30, 2012.
Other operating income was $392,000 during the quarter ended June 30, 2013 compared to $263,000 during the previous quarter and $119,000 during the quarter ended June 30, 2012. The primary reason for the increase in other operating income during the second quarter was related to an adjustment to fair market value of certain mortgage loans. Other operating income includes credit card fees, data processing fees and other miscellaneous income during the reporting period.
The following table presents dollar and percentage changes in components of non-interest income for the periods ended June 30, 2013 and June 30, 2012:
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MIDDLEBURG FINANCIAL CORPORATION
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Non-Interest Income
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(in thousands)
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For the three months ended
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Dollar
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Percent
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6/30/2013
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6/30/2012
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Change
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Change
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Service charges on deposit accounts
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$ | 574 | $ | 538 | $ | 36 | 6.7 | % | ||||||||
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Trust services income
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1,014 | 979 | 35 | 3.6 | % | |||||||||||
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Net gains on loans held for sale
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4,483 | 5,075 | (592 | ) | -11.7 | % | ||||||||||
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Net gains on securities available for sale
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326 | 148 | 178 | 120.3 | % | |||||||||||
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Net commissions on investment sales
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110 | 125 | (15 | ) | -12.0 | % | ||||||||||
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Fees on mortgages held for sale
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58 | 64 | (6 | ) | -9.4 | % | ||||||||||
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Bank-owned life insurance
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123 | 123 | - | 0.0 | % | |||||||||||
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Other operating income
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392 | 119 | 274 | 230.0 | % | |||||||||||
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Total non-interest income
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$ | 7,080 | $ | 7,171 | $ | (91 | ) | -1.3 | % | |||||||
Non-Interest Expense
Total non-interest expense in the second quarter of 2013 was 5.9% lower compared to the previous quarter and decreased by $203,000 or 1.5% compared to the quarter ended June 30, 2012.
Salaries and employee benefit expenses decreased by $107,000 or 1.4% when comparing the second quarter of 2013 to the previous quarter. Salaries and employee benefits increased by $186,000 or 2.5% versus the second quarter of 2012.
Expenses related to Other Real Estate Owned (“OREO”) decreased by $678,000 when comparing the second quarter of 2013 to the previous quarter and decreased by $732,000 versus the quarter ended June 30, 2012. The decrease in this expense relative to the previous quarter was primarily related to losses incurred on the sale of two large OREO properties during the first quarter of 2013 and fewer losses in the second quarter.
Advertising expense was higher by 62.3% compared to the previous quarter and decreased by $12,000 or 2.7% from the quarter ended June 30, 2012. The primary reason for higher advertising expenses during the quarter was new product and service promotions and expenses related to the bank’s entrance into the Richmond market. Advertising expenses are cyclical and affected by spending on promotions.
Other operating expenses decreased by $181,000 or 7.8% from the previous quarter and increased by $268,000 or 14.3% compared to the quarter ended June 30, 2012.
The following table presents dollar and percentage changes in components of non-interest expense for the periods ended June 30, 2013 and June 30, 2012:
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MIDDLEBURG FINANCIAL CORPORATION
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Non-Interest Expense
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(in thousands)
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For the three months ended
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Dollar
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Percent
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6/30/2013
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6/30/2012
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Change
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Change
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Salaries and employees' benefits
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$ | 7,692 | $ | 7,506 | $ | 186 | 2.5 | % | ||||||||
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Net occupancy and equipment expense
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1,787 | 1,755 | 32 | 1.8 | % | |||||||||||
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Advertising
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435 | 447 | (12 | ) | -2.7 | % | ||||||||||
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Computer operations
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458 | 394 | 64 | 16.2 | % | |||||||||||
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Other real estate owned
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142 | 874 | (732 | ) | -83.8 | % | ||||||||||
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Other taxes
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187 | 205 | (18 | ) | -8.8 | % | ||||||||||
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Federal deposit insurance expense
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270 | 261 | 9 | 3.4 | % | |||||||||||
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Other operating expenses
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2,137 | 1,869 | 268 | 14.3 | % | |||||||||||
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Total non-interest expense
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$ | 13,108 | $ | 13,311 | $ | (203 | ) | -1.5 | % | |||||||
The Company’s efficiency ratio was 78.4% for the second quarter of 2013, compared to an efficiency ratio of 72.7% for the second quarter of 2012. The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. The Company calculates its efficiency ratio by dividing non interest expense (adjusted for amortization of intangibles, other real estate expenses, and non-recurring one-time charges) by the sum of tax equivalent net interest income and non interest income excluding gains and losses on the investment portfolio. The tax rate utilized in calculating tax equivalent amounts is 34%. The Company calculates and reviews this ratio as a means of evaluating operational efficiency.
Asset Quality and Provision for Loan Losses
The Company recorded a provision for loan losses of $184,000 in the second quarter compared to a negative provision of $188,000 for the previous quarter and a provision of $730,000 for the quarter ended June 30, 2012 The Allowance for Loan and Lease Losses (ALLL) was $13.6 million representing 1.93% of loans held for investment at June 30, 2013 compared to $13.5 million representing 1.89% of loans held for investment at March 31, 2013.
Loans that were delinquent for more than 90 days and still accruing were $829,000 as of June 30, 2013 compared to $812,000 as of March 31, 2013, and $1.4 million as of June 30, 2012, representing an increase of 2.1% compared to the previous quarter and a 40.8% decrease compared to the quarter ended June 30, 2012.
Non-accrual loans were $20.4 million at the end of the second quarter of 2013 compared to $20.0 million as of March 31, 2013 and $18.8 million at June 30, 2012, representing an increase of 1.8% during the second quarter of 2013 and an increase of 8.4% since June 30, 2012. Troubled debt restructurings that were performing as agreed were $5.4 million at the end of the second quarter of 2013, compared to $4.9 million for the quarter ended March 31, 2013, representing an increase of 10.2% during the quarter. Other Real Estate Owned (OREO) was $7.6 million as of June 30, 2013 compared to $7.9 million as of March 31, 2013, representing a decrease of 4.2% during the second quarter of 2013. Total non-performing assets were $34.1 million or 2.80% of total assets at June 30, 2013, compared to $33.6 million or 2.77% of total assets as of March 31, 2013 and $37.8 million or 3.10% of total assets as of June 30, 2012.
The net loan charge-offs during the second quarter of 2013 were $76,000 compared to net charge-offs of $615,000 for the previous quarter and $622,000 in net loan charge-offs for the quarter ended June 30, 2012.
Total Consolidated Assets
Total assets at June 30, 2013 were $1.2 billion, lower by $19.6 million or 1.6% from December 31, 2012 and unchanged from June 30, 2012.
Total loans held for investment decreased by $7.6 million or 1.1% in the second quarter of 2013 compared to the previous quarter. The primary reason for the weakness was elevated levels of payoffs of existing loans. Loans held for investment increased by $21.1 million or 3.1% from June 30, 2012. The securities portfolio (excluding restricted stock) decreased by $11.5 million or 3.5% in the second quarter of 2013 relative to the previous quarter. Balances of mortgages held for sale increased by $16.6 million or 34.1% at June 30, 2013 compared to the previous quarter end balance. Cash balances and deposits at other banks increased by 15.9% at the end of the second quarter of 2013 compared to the previous quarter.
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Deposits and Other Borrowings
Total deposits decreased by $4.2 million or 0.4% from the previous quarter. Brokered deposits, including CDARS program funds, were $74.4 million at June 30, 2013, up 3.4% from the previous quarter. FHLB advances were $85.0 million at June 30, 2013, unchanged compared to the previous quarter.
Equity and Capital
Shareholders’ equity attributable to Middleburg Financial Corporation shareholders at June 30, 2013 was $112.9 million, compared to $114.8 million as of March 31, 2013 and $109.9 million at June 30, 2012. Retained earnings at June 30, 2013 were $48.9 million compared to $47.2 million at March 31, 2013 and $43.8 million at June 30, 2012. The book value of the Company’s common stock at June 30, 2013 was $15.93 per share versus $16.28 per share at March 31, 2013. The decline in shareholders equity during the second quarter was primarily due to a decrease in accumulated other comprehensive income (AOCI) of $3.7 million resulting from unrealized losses in available for sale securities.
The Company’s total risk-based capital ratio decreased to 15.4% as of June 30, 2013 from 15.6% at March 31, 2013 and remained unchanged from December 31, 2012. The Tier 1 risk-based capital ratio decreased from 14.4% at March 31, 2013 to 14.2% at June 30, 2013 and increased from 14.1% at December 31, 2012. The Tier 1 Leverage Ratio increased to 9.3% at June 30, 2013 from 9.1% at March 31, 2013 and December 31, 2012.
As depicted in the following table, the Company’s risk-based capital ratios remain well above regulatory minimum capital ratios:
| MIDDLEBURG FINANCIAL CORPORATION | ||||||||||||
| Risk-Based Capital Ratios | ||||||||||||
| June 30, 2013 | ||||||||||||
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MFC
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Regulatory
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Excess
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Minimum
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MFC
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over
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Requirement
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Ratios
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Minimum
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Tier 1 Leverage Ratio
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4.0 | % | 9.3 | % | 5.3 | % | ||||||
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Tier 1 Risk-Based Capital Ratio
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4.0 | % | 14.2 | % | 10.2 | % | ||||||
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Total Risk-Based Capital Ratio
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8.0 | % | 15.4 | % | 7.4 | % | ||||||
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(1) Under the regulatory framework for prompt corrective action.
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Caution about Forward Looking Statements
Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s future operations and are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For details on factors that could affect expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and other filings with the Securities and Exchange Commission.
About Middleburg Financial Corporation
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves communities in Virginia with financial centers in Ashburn, Gainesville, Leesburg, Marshall, Middleburg, Purcellville, Reston, Richmond, Warrenton and Williamsburg. Middleburg Investment Group owns Middleburg Trust Company, which is headquartered in Richmond, Virginia with offices in Middleburg, Alexandria and Williamsburg. Middleburg Financial Corporation is also the majority owner of Southern Trust Mortgage, which is based in Virginia Beach and provides mortgages through offices in Virginia, Maryland, Georgia, North Carolina, and South Carolina.
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MIDDLEBURG FINANCIAL CORPORATION
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Consolidated Balance Sheets
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(In thousands, except for share and per share data)
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(Unaudited)
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(Unaudited)
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(Audited)
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June 30,
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March 31,
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December 31,
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2013
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2013
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2012
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ASSETS
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Cash and due from banks
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$ | 7,312 | $ | 6,697 | $ | 7,139 | ||||||
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Interest-bearing deposits with other institutions
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51,164 | 43,753 | 47,276 | |||||||||
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Total cash and cash equivalents
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58,476 | 50,450 | 54,415 | |||||||||
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Securities available for sale
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320,132 | 331,650 | 319,457 | |||||||||
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Loans held for sale
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65,322 | 48,721 | 82,114 | |||||||||
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Restricted securities, at cost
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7,005 | 7,005 | 6,990 | |||||||||
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Loans receivable, net of allowance for loan losses of $13,616 at June 30,
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2013, $13,508 at Mar. 31, 2013, and $14,311 at Dec.31, 2012
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693,383 | 701,078 | 695,166 | |||||||||
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Premises and equipment, net
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20,208 | 20,418 | 20,587 | |||||||||
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Goodwill and identified intangibles
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5,932 | 5,975 | 6,017 | |||||||||
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Other real estate owned, net of valuation allowance of $348 at June 30,
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2013, $348 at Mar. 31, 2013, and $1,707 at Dec. 31, 2012
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7,570 | 7,904 | 9,929 | |||||||||
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Prepaid federal deposit insurance
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- - | 2,768 | 3,015 | |||||||||
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Accrued interest receivable and other assets
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39,172 | 37,787 | 39,091 | |||||||||
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TOTAL ASSETS
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$ | 1,217,200 | $ | 1,213,756 | $ | 1,236,781 | ||||||
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LIABILITIES
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Deposits:
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Non-interest-bearing demand deposits
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$ | 174,459 | $ | 163,611 | $ | 167,137 | ||||||
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Savings and interest-bearing demand deposits
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496,394 | 515,082 | 522,740 | |||||||||
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Time deposits
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291,021 | 287,383 | 292,023 | |||||||||
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Total deposits
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961,874 | 966,076 | 981,900 | |||||||||
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Securities sold under agreements to repurchase
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35,783 | 31,880 | 33,975 | |||||||||
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Short-term borrowings
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5,688 | 519 | 11,873 | |||||||||
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FHLB borrowings
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85,000 | 85,000 | 77,912 | |||||||||
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Subordinated notes
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5,155 | 5,155 | 5,155 | |||||||||
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Accrued interest payable and other liabilities
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8,043 | 7,426 | 8,844 | |||||||||
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Commitments and contingent liabilities
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- | - | - | |||||||||
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TOTAL LIABILITIES
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1,101,543 | 1,096,056 | 1,119,659 | |||||||||
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SHAREHOLDERS' EQUITY
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Common stock ($2.50 par value; 20,000,000 shares authorized,
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7,089,598, 7,051,587 and 7,052,554 issued and outstanding at
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June 30, 2013, Mar. 31, 2013, and December 31, 2012, respectively)
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17,397 | 17,365 | 17,357 | |||||||||
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Capital surplus
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44,000 | 43,946 | 43,869 | |||||||||
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Retained earnings
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48,947 | 47,209 | 46,235 | |||||||||
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Accumulated other comprehensive income
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2,600 | 6,260 | 6,467 | |||||||||
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Total Middleburg Financial Corporation shareholders' equity
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112,944 | 114,780 | 113,928 | |||||||||
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Non-controlling interest in consolidated subsidiary
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2,713 | 2,920 | 3,194 | |||||||||
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TOTAL SHAREHOLDERS' EQUITY
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115,657 | 117,700 | 117,122 | |||||||||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 1,217,200 | $ | 1,213,756 | $ | 1,236,781 | ||||||
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MIDDLEBURG FINANCIAL CORPORATION
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Consolidated Statements of Income
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(In thousands, except for per share data)
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Unaudited
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Unaudited
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For the three months
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For the six months
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ended June 30,
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ended June 30,
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2013
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2012
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2013
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2012
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INTEREST AND DIVIDEND INCOME
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Interest and fees on loans
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$ | 8,795 | $ | 9,594 | $ | 17,760 | $ | 19,376 | ||||||||
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Interest and dividends on securities available for sale
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Taxable
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1,468 | 1,704 | 2,999 | 3,439 | ||||||||||||
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Tax-exempt
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646 | 596 | 1,276 | 1,203 | ||||||||||||
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Dividends
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54 | 45 | 110 | 89 | ||||||||||||
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Interest on deposits in other banks
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29 | 25 | 59 | 49 | ||||||||||||
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Total interest and dividend income
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10,992 | 11,964 | 22,204 | 24,156 | ||||||||||||
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INTEREST EXPENSE
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Interest on deposits
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1,253 | 1,846 | 2,626 | 3,739 | ||||||||||||
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Interest on securities sold under agreements to
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repurchase
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81 | 84 | 161 | 167 | ||||||||||||
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Interest on short-term borrowings
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18 | 89 | 47 | 237 | ||||||||||||
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Interest on FHLB borrowings and other debt
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299 | 287 | 594 | 584 | ||||||||||||
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Total interest expense
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1,651 | 2,306 | 3,428 | 4,727 | ||||||||||||
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NET INTEREST INCOME
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9,341 | 9,658 | 18,776 | 19,429 | ||||||||||||
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Provision for (recovery of) loan losses
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184 | 730 | (4 | ) | 1,522 | |||||||||||
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NET INTEREST INCOME AFTER PROVISION
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FOR (RECOVERY OF) LOAN LOSSES
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9,157 | 8,928 | 18,780 | 17,907 | ||||||||||||
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NONINTEREST INCOME
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Service charges on deposit accounts
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574 | 538 | 1,108 | 1,068 | ||||||||||||
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Trust services income
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1,014 | 979 | 1,974 | 1,900 | ||||||||||||
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Net gains on loans held for sale
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4,483 | 5,075 | 8,376 | 8,927 | ||||||||||||
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Net gains (losses) on securities available for sale
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326 | 148 | 373 | 288 | ||||||||||||
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Total other-than-temporary impairment losses
|
- | (36 | ) | - | (46 | ) | ||||||||||
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Portion of loss recognized in other
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comprehensive income
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- | 36 | - | 46 | ||||||||||||
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Net other than temporary impairment losses
|
- | - | - | - | ||||||||||||
|
Net commissions on investment sales
|
110 | 125 | 204 | 272 | ||||||||||||
|
Fees on mortgages held for sale
|
58 | 64 | 75 | 106 | ||||||||||||
|
Bank-owned life insurance
|
123 | 123 | 243 | 245 | ||||||||||||
|
Other operating income
|
392 | 119 | 655 | 349 | ||||||||||||
|
Total noninterest income
|
7,080 | 7,171 | 13,008 | 13,155 | ||||||||||||
|
NONINTEREST EXPENSE
|
||||||||||||||||
|
Salaries and employees' benefits
|
7,692 | 7,506 | 15,492 | 14,863 | ||||||||||||
|
Net occupancy and equipment expense
|
1,787 | 1,755 | 3,592 | 3,533 | ||||||||||||
|
Advertising
|
435 | 447 | 703 | 747 | ||||||||||||
|
Computer operations
|
458 | 394 | 919 | 779 | ||||||||||||
|
Other real estate owned
|
142 | 874 | 961 | 1,160 | ||||||||||||
|
Other taxes
|
187 | 205 | 379 | 408 | ||||||||||||
|
Federal deposit insurance expense
|
270 | 261 | 535 | 519 | ||||||||||||
|
Other operating expenses
|
2,137 | 1,869 | 4,455 | 4,616 | ||||||||||||
|
Total noninterest expense
|
13,108 | 13,311 | 27,036 | 26,625 | ||||||||||||
|
Income before income taxes
|
3,129 | 2,788 | 4,752 | 4,437 | ||||||||||||
|
Income tax expense
|
774 | 598 | 1,137 | 1,014 | ||||||||||||
|
NET INCOME
|
2,355 | 2,190 | 3,615 | 3,423 | ||||||||||||
|
Net (income) attributable to non-
|
||||||||||||||||
|
controlling interest
|
(262 | ) | (421 | ) | (195 | ) | (72 | ) | ||||||||
|
Net income attributable to Middleburg
|
||||||||||||||||
|
Financial Corporation
|
$ | 2,093 | $ | 1,769 | $ | 3,420 | $ | 3,351 | ||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic
|
$ | 0.30 | $ | 0.25 | $ | 0.48 | $ | 0.48 | ||||||||
|
Diluted
|
$ | 0.29 | $ | 0.25 | $ | 0.48 | $ | 0.48 | ||||||||
|
Dividends per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.10 | $ | 0.10 | ||||||||
|
QUARTERLY SUMMARY STATEMENTS OF INCOME
|
||
|
MIDDLEBURG FINANCIAL CORPORATION
|
||
|
(Unaudited. Dollars in thousands except per share data)
|
||
|
For the Three Months Ended
|
||||||||||||||||||||
|
June 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
|
June 30, 2012
|
||||||||||||||||
|
Interest and Dividend Income
|
||||||||||||||||||||
|
Interest and fees on loans
|
$ | 8,795 | $ | 8,965 | $ | 9,330 | $ | 9,189 | $ | 9,594 | ||||||||||
|
Interest and dividends on securities available for sale
|
||||||||||||||||||||
|
Taxable
|
1,468 | 1,531 | 1,432 | 1,537 | 1,704 | |||||||||||||||
|
Tax Exempt
|
646 | 630 | 604 | 596 | 596 | |||||||||||||||
|
Dividends
|
54 | 56 | 58 | 46 | 45 | |||||||||||||||
|
Interest on deposits in banks
|
29 | 30 | 36 | 39 | 25 | |||||||||||||||
|
Total interest and dividend income
|
$ | 10,992 | $ | 11,212 | $ | 11,460 | $ | 11,407 | $ | 11,964 | ||||||||||
|
Interest Expense
|
||||||||||||||||||||
|
Interest on deposits
|
$ | 1,253 | $ | 1,373 | $ | 1,449 | $ | 1,728 | $ | 1,846 | ||||||||||
|
Interest on securities sold under agreements to repurchase
|
81 | 80 | 82 | 83 | 84 | |||||||||||||||
|
Interest on short-term borrowings
|
18 | 29 | 81 | 74 | 89 | |||||||||||||||
|
Interest on FHLB borrowings and other debt
|
299 | 295 | 295 | 305 | 287 | |||||||||||||||
|
Total interest expense
|
$ | 1,651 | $ | 1,777 | $ | 1,907 | $ | 2,190 | $ | 2,306 | ||||||||||
|
Net interest income
|
$ | 9,341 | $ | 9,435 | $ | 9,553 | $ | 9,217 | $ | 9,658 | ||||||||||
|
Provision for loan losses
|
184 | (188 | ) | 1,281 | 635 | 730 | ||||||||||||||
|
Net interest income after provision
|
||||||||||||||||||||
|
for loan losses
|
$ | 9,157 | $ | 9,623 | $ | 8,272 | $ | 8,582 | $ | 8,928 | ||||||||||
|
Non-Interest Income
|
||||||||||||||||||||
|
Trust services income
|
$ | 1,014 | $ | 960 | $ | 923 | $ | 928 | $ | 979 | ||||||||||
|
Service charges on deposit accounts
|
574 | 534 | 572 | 557 | 538 | |||||||||||||||
|
Net gains (losses) on securities available for sale
|
326 | 47 | (7 | ) | 164 | 148 | ||||||||||||||
|
Total other-than-temporary impairment gain (loss) on securities
|
- | - | - | - | (36 | ) | ||||||||||||||
|
Portion of (gain) loss recognized in other comprehensive income
|
- | - | - | - | 36 | |||||||||||||||
|
Net other-than-temporary impairment loss
|
- | - | - | - | - | |||||||||||||||
|
Commissions on investment sales
|
110 | 94 | 129 | 117 | 125 | |||||||||||||||
|
Bank owned life insurance
|
123 | 120 | 96 | 118 | 123 | |||||||||||||||
|
Gains on loans held for sale
|
4,483 | 3,893 | 5,926 | 6,161 | 5,075 | |||||||||||||||
|
Fees on mortgages held for sale
|
58 | 17 | 43 | 37 | 64 | |||||||||||||||
|
Other operating income
|
392 | 263 | 299 | 236 | 119 | |||||||||||||||
|
Total non-interest income
|
$ | 7,080 | $ | 5,928 | $ | 7,981 | $ | 8,318 | $ | 7,171 | ||||||||||
|
Non-Interest Expense
|
||||||||||||||||||||
|
Salaries and employee benefits
|
$ | 7,692 | $ | 7,799 | $ | 8,278 | $ | 7,276 | $ | 7,506 | ||||||||||
|
Net occupancy and equipment expense
|
1,787 | 1,805 | 1,785 | 1,732 | 1,755 | |||||||||||||||
|
Other taxes
|
187 | 192 | 202 | 203 | 205 | |||||||||||||||
|
Advertising
|
435 | 268 | 635 | 652 | 447 | |||||||||||||||
|
Computer operations
|
458 | 461 | 471 | 322 | 394 | |||||||||||||||
|
Other real estate owned
|
142 | 820 | 55 | 1,506 | 874 | |||||||||||||||
|
Federal deposit insurance expense
|
270 | 265 | 269 | 262 | 261 | |||||||||||||||
|
Other operating expenses
|
2,137 | 2,318 | 2,103 | 1,883 | 1,869 | |||||||||||||||
|
Total non-interest expense
|
$ | 13,108 | $ | 13,928 | $ | 13,798 | $ | 13,836 | $ | 13,311 | ||||||||||
|
|
||||||||||||||||||||
|
Income before income taxes
|
$ | 3,129 | $ | 1,623 | $ | 2,455 | $ | 3,064 | $ | 2,788 | ||||||||||
|
Income tax expense
|
774 | 363 | 387 | 565 | 598 | |||||||||||||||
|
Net income
|
$ | 2,355 | $ | 1,260 | $ | 2,068 | $ | 2,499 | $ | 2,190 | ||||||||||
|
Less: Net (income) loss attributable to non-controlling interest
|
(262 | ) | 67 | (647 | ) | (785 | ) | (421 | ) | |||||||||||
|
Net income attributable to Middleburg Financial Corporation
|
$ | 2,093 | $ | 1,327 | $ | 1,421 | $ | 1,714 | $ | 1,769 | ||||||||||
|
Net income per common share, basic
|
$ | 0.30 | $ | 0.19 | $ | 0.20 | $ | 0.24 | $ | 0.25 | ||||||||||
|
Net income per common share, diluted
|
$ | 0.29 | $ | 0.19 | $ | 0.20 | $ | 0.24 | $ | 0.25 | ||||||||||
|
Dividends per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
MIDDLEBURG FINANCIAL CORPORATION
KEY STATISTICS
(Unaudited. Dollars in thousands except per share data)
|
For the Three Months Ended
|
||||||||||||||||||||
|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
||||||||||||||||
|
Net income
|
$ | 2,093 | $ | 1,327 | $ | 1,421 | $ | 1,714 | $ | 1,769 | ||||||||||
|
Earnings per share, basic
|
$ | 0.30 | $ | 0.19 | $ | 0.20 | $ | 0.24 | $ | 0.25 | ||||||||||
|
Earnings per share, diluted
|
$ | 0.29 | $ | 0.19 | $ | 0.20 | $ | 0.24 | $ | 0.25 | ||||||||||
|
Dividend per share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
|
Return on average total assets - QTD
|
0.69 | % | 0.44 | % | 0.46 | % | 0.55 | % | 0.60 | % | ||||||||||
|
Return on average total equity - QTD
|
7.25 | % | 4.71 | % | 4.96 | % | 6.11 | % | 6.50 | % | ||||||||||
|
Dividend payout ratio
|
16.88 | % | 26.57 | % | 24.82 | % | 20.53 | % | 19.87 | % | ||||||||||
|
Non-interest revenue to total revenue (1)
|
41.96 | % | 38.40 | % | 45.54 | % | 46.94 | % | 41.97 | % | ||||||||||
|
Net interest margin (2)
|
3.40 | % | 3.45 | % | 3.42 | % | 3.28 | % | 3.57 | % | ||||||||||
|
Yield on average earning assets
|
3.97 | % | 4.08 | % | 4.08 | % | 4.03 | % | 4.40 | % | ||||||||||
|
Cost of average interest-bearing liabilities
|
0.72 | % | 0.78 | % | 0.82 | % | 0.93 | % | 1.00 | % | ||||||||||
|
Net interest spread
|
3.25 | % | 3.30 | % | 3.26 | % | 3.10 | % | 3.40 | % | ||||||||||
|
Non-interest income to average assets (3)
|
2.23 | % | 1.93 | % | 2.62 | % | 2.66 | % | 2.35 | % | ||||||||||
|
Non-interest expense to average assets (3)
|
4.34 | % | 4.57 | % | 4.53 | % | 4.52 | % | 4.47 | % | ||||||||||
|
Efficiency ratio - QTD (Tax Equiv) (4)
|
78.35 | % | 80.96 | % | 76.51 | % | 69.27 | % | 72.68 | % | ||||||||||
|
(1)
|
Excludes securities gains and losses including OTTI adjustments.
|
|
(2)
|
The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitably earning assets are funded. Because the Company earns non taxable interest income due to the mix in its investment and loan portfolios, net interest income for the ratio is calculated on a tax equivalent basis as described above. This calculation excludes net securities gains and losses.
|
|
(3)
|
Ratios are computed by dividing annualized income and expense amounts by quarterly average assets. Excludes securities gains and losses including OTTI adjustments.
|
|
(4)
|
The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non-interest expense (adjusted for amortization of intangibles, other real estate expenses, and non-recurring one-time charges) by the sum of tax equivalent net interest income and non-interest income excluding gains and losses on the investment portfolio. The tax rate utilized in calculating tax equivalent amounts is 34%. The Company calculates and reviews this ratio as a means of evaluating operational efficiency.
|
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||
|
SELECTED FINANCIAL DATA BY QUARTER
|
||||||||||||||||||||
|
(Unaudited. Dollars in thousands except per share data)
|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Sep. 30, 2012
|
June 30, 2012
|
|||||||||||||||
|
BALANCE SHEET RATIOS
|
||||||||||||||||||||
|
Loans to deposits (Including HFS)
|
80.29 | % | 79.01 | % | 80.62 | % | 79.73 | % | 77.30 | % | ||||||||||
|
Portfolio loans to deposits
|
73.50 | % | 73.97 | % | 72.26 | % | 70.33 | % | 70.33 | % | ||||||||||
|
Average interest-earning assets to
|
||||||||||||||||||||
|
average-interest bearing liabilities
|
125.09 | % | 123.60 | % | 124.17 | % | 123.02 | % | 121.73 | % | ||||||||||
|
PER SHARE DATA
|
||||||||||||||||||||
|
Dividends
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
|
Book value (MFC Shareholders)
|
$ | 15.93 | $ | 16.28 | $ | 16.15 | $ | 15.96 | $ | 15.57 | ||||||||||
|
Tangible book value (3)
|
$ | 15.09 | $ | 15.41 | $ | 15.30 | $ | 15.10 | $ | 14.71 | ||||||||||
|
SHARE PRICE DATA
|
||||||||||||||||||||
|
Closing price
|
$ | 19.10 | $ | 19.41 | $ | 17.66 | $ | 17.76 | $ | 17.00 | ||||||||||
|
Diluted earnings multiple (1)
|
16.47 | 25.54 | 22.08 | 18.50 | 17.00 | |||||||||||||||
|
Book value multiple(2)
|
1.20 | 1.19 | 1.09 | 1.11 | 1.09 | |||||||||||||||
|
COMMON STOCK DATA
|
||||||||||||||||||||
|
Outstanding shares at end of period
|
7,089,598 | 7,051,587 | 7,052,554 | 7,052,554 | 7,052,554 | |||||||||||||||
|
Weighted average shares O/S Basic - QTD
|
7,072,587 | 7,051,009 | 7,052,554 | 7,036,536 | 7,030,639 | |||||||||||||||
|
Weighted average shares O/S, diluted - QTD
|
7,102,670 | 7,082,354 | 7,069,603 | 7,051,860 | 7,042,111 | |||||||||||||||
|
CAPITAL RATIOS
|
||||||||||||||||||||
|
Capital to Assets - Common shareholders
|
9.28 | % | 9.46 | % | 9.21 | % | 9.10 | % | 9.02 | % | ||||||||||
|
Capital to Assets - with Noncontrolling Interest
|
9.50 | % | 9.70 | % | 9.47 | % | 9.34 | % | 9.19 | % | ||||||||||
|
Tangible common equity ratio (4)
|
8.83 | % | 9.01 | % | 8.77 | % | 8.66 | % | 8.56 | % | ||||||||||
|
Leverage ratio
|
9.32 | % | 9.11 | % | 9.10 | % | 8.92 | % | 8.99 | % | ||||||||||
|
Tier 1 risk based capital ratio
|
14.15 | % | 14.35 | % | 14.09 | % | 13.98 | % | 13.66 | % | ||||||||||
|
Total risk based capital ratio
|
15.41 | % | 15.60 | % | 15.35 | % | 15.23 | % | 14.92 | % | ||||||||||
|
CREDIT QUALITY
|
||||||||||||||||||||
|
Net charge-offs to average total loans
|
0.01 | % | 0.08 | % | 0.12 | % | 0.22 | % | 0.08 | % | ||||||||||
|
Total non-performing loans to total portfolio loans
|
3.76 | % | 3.59 | % | 3.92 | % | 4.02 | % | 3.57 | % | ||||||||||
|
Total non-performing assets to total assets
|
2.80 | % | 2.77 | % | 3.05 | % | 3.22 | % | 3.10 | % | ||||||||||
|
Non-accrual loans to:
|
||||||||||||||||||||
|
total portfolio loans
|
2.88 | % | 2.80 | % | 3.05 | % | 3.28 | % | 2.74 | % | ||||||||||
|
total assets
|
1.67 | % | 1.65 | % | 1.75 | % | 1.84 | % | 1.54 | % | ||||||||||
|
Allowance for loan losses to:
|
||||||||||||||||||||
|
total portfolio loans
|
1.93 | % | 1.89 | % | 2.02 | % | 2.01 | % | 2.18 | % | ||||||||||
|
non-performing assets
|
39.88 | % | 40.22 | % | 37.89 | % | 35.05 | % | 39.56 | % | ||||||||||
|
non-accrual loans
|
66.82 | % | 67.48 | % | 66.06 | % | 61.46 | % | 79.61 | % | ||||||||||
|
NON-PERFORMING ASSETS:
|
||||||||||||||||||||
|
Loans delinquent over 90 days and still accruing
|
$ | 829 | $ | 812 | $ | 1,044 | $ | 860 | $ | 1,372 | ||||||||||
|
Non-accrual loans
|
20,376 | 20,019 | 21,664 | 22,683 | 18,802 | |||||||||||||||
|
Restructured loans (Not in non accrual)
|
5,366 | 4,854 | 5,132 | 4,302 | 4,334 | |||||||||||||||
|
Other real estate owned and repossessed assets
|
7,570 | 7,904 | 9,929 | 11,933 | 13,335 | |||||||||||||||
|
Total non-performing assets
|
$ | 34,141 | $ | 33,589 | $ | 37,769 | $ | 39,778 | $ | 37,843 | ||||||||||
|
NET LOAN CHARGE-OFFS:
|
||||||||||||||||||||
|
Loans charged off (QTD)
|
$ | 128 | $ | 721 | $ | 1,060 | $ | 1,817 | $ | 694 | ||||||||||
|
Recoveries (QTD)
|
(52 | ) | (106 | ) | (149 | ) | (154 | ) | (72 | ) | ||||||||||
|
Net charge-offs (QTD)
|
$ | 76 | $ | 615 | $ | 911 | $ | 1,663 | $ | 622 | ||||||||||
|
PROVISION FOR LOAN LOSSES
|
$ | 184 | $ | (188 | ) | $ | 1,281 | $ | 635 | $ | 730 | |||||||||
|
ALLOWANCE FOR LOAN LOSS SUMMARY
|
||||||||||||||||||||
|
Balance at the beginning of period
|
$ | 13,508 | $ | 14,311 | $ | 13,941 | $ | 14,969 | $ | 14,861 | ||||||||||
|
Provision
|
184 | (188 | ) | 1,281 | 635 | 730 | ||||||||||||||
|
Net charge-offs
|
(76 | ) | (615 | ) | (911 | ) | (1,663 | ) | (622 | ) | ||||||||||
|
Balance at the end of period
|
$ | 13,616 | $ | 13,508 | $ | 14,311 | $ | 13,941 | $ | 14,969 | ||||||||||
|
(1)
|
The diluted earnings multiple is calculated by dividing the period’s closing market price per share by the annualized diluted earnings per share for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings.
|
|
(2)
|
The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share.
|
|
(3)
|
Tangible book value is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders’ equity and then dividing the result by the number of shares of common stock issued and outstanding at the end of the accounting period.
|
|
(4)
|
The tangible common equity ratio is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders’ equity and total assets and then dividing the adjusted shareholders’ equity balance by the adjusted total asset balance.
|
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||||||
|
Average Balances, Income and Expenses, Yields and Rates
|
||||||||||||||||||||||||
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Expense
|
Rate (2)
|
Balance
|
Expense
|
Rate (2)
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Assets :
|
||||||||||||||||||||||||
|
Securities:
|
||||||||||||||||||||||||
|
Taxable
|
$ | 268,369 | $ | 1,523 | 2.28 | % | $ | 264,106 | $ | 1,749 | 2.66 | % | ||||||||||||
|
Tax-exempt (1)
|
69,390 | 978 | 5.65 | % | 61,813 | 903 | 5.88 | % | ||||||||||||||||
|
Total securities
|
$ | 337,759 | $ | 2,501 | 2.97 | % | $ | 325,919 | $ | 2,652 | 3.27 | % | ||||||||||||
|
Loans
|
||||||||||||||||||||||||
|
Taxable
|
$ | 759,360 | $ | 8,789 | 4.64 | % | $ | 749,834 | $ | 9,616 | 5.16 | % | ||||||||||||
|
Tax-exempt (1)
|
687 | 9 | 5.25 | % | - | - | - | |||||||||||||||||
|
Total loans (3)
|
$ | 760,047 | $ | 8,798 | 4.64 | % | $ | 749,834 | $ | 9,616 | 5.16 | % | ||||||||||||
|
Interest bearing deposits in
|
||||||||||||||||||||||||
|
other financial institutions
|
45,371 | 29 | 0.26 | % | 48,025 | 25 | 0.21 | % | ||||||||||||||||
|
Total earning assets
|
$ | 1,143,177 | $ | 11,328 | 3.97 | % | $ | 1,123,778 | $ | 12,293 | 4.40 | % | ||||||||||||
|
Less: allowances for credit losses
|
(13,550 | ) | (15,138 | ) | ||||||||||||||||||||
|
Total nonearning assets
|
79,748 | 83,781 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,209,375 | $ | 1,192,421 | ||||||||||||||||||||
|
Liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
Checking
|
$ | 319,704 | $ | 210 | 0.26 | % | $ | 310,262 | $ | 334 | 0.43 | % | ||||||||||||
|
Regular savings
|
110,713 | 63 | 0.23 | % | 106,725 | 96 | 0.36 | % | ||||||||||||||||
|
Money market savings
|
75,733 | 43 | 0.23 | % | 57,566 | 49 | 0.34 | % | ||||||||||||||||
|
Time deposits:
|
||||||||||||||||||||||||
|
$100,000 and over
|
139,073 | 432 | 1.25 | % | 140,233 | 560 | 1.61 | % | ||||||||||||||||
|
Under $100,000
|
142,217 | 505 | 1.42 | % | 180,961 | 807 | 1.79 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
$ | 787,440 | $ | 1,253 | 0.64 | % | $ | 795,747 | $ | 1,846 | 0.93 | % | ||||||||||||
|
Short-term borrowings
|
2,090 | 18 | 3.45 | % | 7,687 | 89 | 4.60 | % | ||||||||||||||||
|
Securities sold under agreements
|
||||||||||||||||||||||||
|
to repurchase
|
34,204 | 81 | 0.95 | % | 32,268 | 84 | 1.03 | % | ||||||||||||||||
|
FHLB borrowings and other debt
|
90,155 | 299 | 1.33 | % | 87,463 | 287 | 1.32 | % | ||||||||||||||||
|
Federal funds purchased
|
- | - | - | 3 | - | 0.00 | % | |||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 913,889 | $ | 1,651 | 0.72 | % | $ | 923,168 | $ | 2,305 | 1.00 | % | ||||||||||||
|
Non-interest bearing liabilities
|
||||||||||||||||||||||||
|
Demand deposits
|
169,894 | 150,689 | ||||||||||||||||||||||
|
Other liabilities
|
6,917 | 6,822 | ||||||||||||||||||||||
|
Total liabilities
|
$ | 1,090,700 | $ | 1,080,679 | ||||||||||||||||||||
|
Non-controlling interest
|
2,835 | 2,231 | ||||||||||||||||||||||
|
Shareholders' equity
|
115,840 | 109,511 | ||||||||||||||||||||||
|
Total liabilities and shareholders'
|
||||||||||||||||||||||||
|
equity
|
$ | 1,209,375 | $ | 1,192,421 | ||||||||||||||||||||
|
Net interest income
|
$ | 9,677 | $ | 9,987 | ||||||||||||||||||||
|
Interest rate spread
|
3.25 | % | 3.40 | % | ||||||||||||||||||||
|
Cost of Funds
|
0.61 | % | 0.86 | % | ||||||||||||||||||||
|
Interest expense as a percent of
|
||||||||||||||||||||||||
|
average earning assets
|
0.58 | % | 0.82 | % | ||||||||||||||||||||
|
Net interest margin
|
3.40 | % | 3.57 | % | ||||||||||||||||||||
|
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%.
|
||||||||||||||||||||||||
|
(2) All yields and rates have been annualized on a 365 day year for 2013 and a 366 day year for 2012.
|
||||||||||||||||||||||||
|
(3) Total average loans include loans on non-accrual status.
|
||||||||||||||||||||||||
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||||||
|
Average Balances, Income and Expenses, Yields and Rates
|
||||||||||||||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
|
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Expense
|
Rate (2)
|
Balance
|
Expense
|
Rate (2)
|
|||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||
|
Assets :
|
||||||||||||||||||||||||
|
Securities:
|
||||||||||||||||||||||||
|
Taxable
|
$ | 267,177 | $ | 3,109 | 2.35 | % | $ | 263,757 | $ | 3,528 | 2.69 | % | ||||||||||||
|
Tax-exempt (1)
|
68,327 | 1,933 | 5.70 | % | 61,808 | 1,823 | 5.93 | % | ||||||||||||||||
|
Total securities
|
$ | 335,504 | $ | 5,042 | 3.03 | % | $ | 325,565 | $ | 5,351 | 3.31 | % | ||||||||||||
|
Loans
|
||||||||||||||||||||||||
|
Taxable
|
$ | 757,913 | $ | 17,748 | 4.72 | % | $ | 747,647 | $ | 19,547 | 5.26 | % | ||||||||||||
|
Tax-exempt (1)
|
687 | 18 | 5.28 | % | - | - | 0.00 | % | ||||||||||||||||
|
Total loans (3)
|
$ | 758,600 | $ | 17,766 | 4.72 | % | $ | 747,647 | $ | 19,547 | 5.26 | % | ||||||||||||
|
Interest bearing deposits in
|
||||||||||||||||||||||||
|
other financial institutions
|
51,603 | 59 | 0.23 | % | 47,174 | 49 | 0.21 | % | ||||||||||||||||
|
Total earning assets
|
$ | 1,145,707 | $ | 22,867 | 4.03 | % | $ | 1,120,386 | $ | 24,947 | 4.48 | % | ||||||||||||
|
Less: allowances for credit losses
|
(13,905 | ) | (15,005 | ) | ||||||||||||||||||||
|
Total nonearning assets
|
82,346 | 82,625 | ||||||||||||||||||||||
|
Total assets
|
$ | 1,214,148 | $ | 1,188,006 | ||||||||||||||||||||
|
Liabilities:
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
Checking
|
$ | 326,329 | $ | 445 | 0.28 | % | $ | 306,953 | $ | 717 | 0.47 | % | ||||||||||||
|
Regular savings
|
109,740 | 123 | 0.23 | % | 105,867 | 211 | 0.40 | % | ||||||||||||||||
|
Money market savings
|
76,903 | 90 | 0.24 | % | 57,095 | 106 | 0.37 | % | ||||||||||||||||
|
Time deposits:
|
||||||||||||||||||||||||
|
$100,000 and over
|
143,242 | 939 | 1.32 | % | 141,460 | 1,132 | 1.61 | % | ||||||||||||||||
|
Under $100,000
|
142,795 | 1,029 | 1.45 | % | 180,568 | 1,573 | 1.75 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
$ | 799,009 | $ | 2,626 | 0.66 | % | $ | 791,943 | $ | 3,739 | 0.95 | % | ||||||||||||
|
Short-term borrowings
|
2,372 | 47 | 4.00 | % | 10,542 | 236 | 4.50 | % | ||||||||||||||||
|
Securities sold under agreements
|
||||||||||||||||||||||||
|
to repurchase
|
34,153 | 161 | 0.95 | % | 33,196 | 167 | 1.01 | % | ||||||||||||||||
|
FHLB borrowings and other debt
|
85,810 | 594 | 1.40 | % | 87,627 | 585 | 1.34 | % | ||||||||||||||||
|
Federal Funds Purchased
|
- | - | 0.00 | % | 2 | - | 0.00 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 921,344 | $ | 3,428 | 0.75 | % | $ | 923,310 | $ | 4,727 | 1.03 | % | ||||||||||||
|
Non-interest bearing liabilities
|
||||||||||||||||||||||||
|
Demand Deposits
|
167,268 | 147,411 | ||||||||||||||||||||||
|
Other liabilities
|
7,249 | 6,536 | ||||||||||||||||||||||
|
Total liabilities
|
$ | 1,095,861 | $ | 1,077,257 | ||||||||||||||||||||
|
Non-controlling interest
|
2,941 | 2,293 | ||||||||||||||||||||||
|
Shareholders' equity
|
115,346 | 108,456 | ||||||||||||||||||||||
|
Total liabilities and shareholders'
|
||||||||||||||||||||||||
|
equity
|
$ | 1,214,148 | $ | 1,188,006 | ||||||||||||||||||||
|
Net interest income
|
$ | 19,439 | $ | 20,220 | ||||||||||||||||||||
|
Interest rate spread
|
3.28 | % | 3.45 | % | ||||||||||||||||||||
|
Cost of Funds
|
0.64 | % | 0.89 | % | ||||||||||||||||||||
|
Interest expense as a percent of
|
||||||||||||||||||||||||
|
average earning assets
|
0.60 | % | 0.85 | % | ||||||||||||||||||||
|
Net interest margin
|
3.42 | % | 3.63 | % | ||||||||||||||||||||
|
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%.
|
||||||||||||||||||||||||
|
(2) All yields and rates have been annualized on a 365 day year for 2013 and a 366 day year for 2012.
|
||||||||||||||||||||||||
|
(3) Total average loans include loans on non-accrual status.
|
||||||||||||||||||||||||