MIDDLEBURG, Va., Oct. 30,
2014 /PRNewswire/ -- Middleburg Financial Corporation (the
"Company") (Nasdaq: MBRG), today announced net income of
$2.12 million for the quarter ended
September 30, 2014, or $0.30 per diluted share.
"The performance in the third quarter was a product of several
positive trends at the Company," commented Gary R. Shook, President and CEO of Middleburg
Financial Corporation. He continued, "Net interest income
increased despite the challenging yield environment as we lowered
borrowing costs and added non-interest bearing deposits.
Additionally, non-interest expenses fell as we eliminated
substantial fixed costs related to Southern Trust Mortgage and
implemented expense control discipline at the bank.
Nonperforming assets declined 36.91% from December 2013 and delinquent loans fell by 96.29%
over the same period. Middleburg Investment Group's assets
under management increased by 5.88% during the quarter and the fee
income will help offset any margin compression.
"As we approach a century of
providing financial services to the communities in which we
operate, we are committed to profitable growth and to delivering
results for our shareholders."
Third Quarter 2014 Highlights:
- Net income of $2.12 million or
$0.30 per diluted share for the
quarter ended September 30, 2014, an
increase of 14.34% compared to net income of $1.86 million or $0.26 per diluted share for the previous quarter
and an increase of 31.66% compared to net income of $1.61 million or $0.23 per diluted share for the third quarter of
2013;
- Net interest margin of 3.36% compared to 3.38% for the previous
quarter and 3.33% for the quarter ended September 30, 2013;
- Cost of funds of 45 bp for the quarter, a decrease of 7 bp from
the previous quarter and a decrease of 14 bp from the quarter ended
September 30, 2013;
- Net interest income was $9.55
million for the quarter ended September 30, 2014, an increase of 0.37% compared
to the previous quarter and an increase of 2.41% compared to the
quarter ended September 30,
2013;
- Non-interest expenses of $8.39
million for the quarter ended September 30, 2014, a decrease of 24.62% compared
to the previous quarter and a decrease of 36.93% compared to the
quarter ended September 30,
2013;
- Efficiency ratio of 68.82% for the quarter compared to 78.99%
for the previous quarter and 81.19% for the quarter ended
September 30, 2013;
- Total assets were $1.21 billion
as of quarter end, a decrease of 3.59% compared to the previous
quarter and a decrease of 1.63% from December 31, 2013;
- Total deposits were $986.57
million as of quarter end, a decrease of 1.69% compared to
the previous quarter and an increase of 0.42% from December 31, 2013;
- Loans held-for-investment were $728.75
million as of quarter end, a decrease of 0.05% compared to
the previous quarter and an increase of 0.04% from December 31, 2013;
- Credit quality improved with nonaccrual loans totaling
$7.33 million as of September 30, 2014, a decrease of 29.55% compared
to the previous quarter and a decrease of 62.88% from December 31, 2013;
- The ratio of nonperforming assets to total assets was 1.50% at
September 30, 2014 compared to 1.57%
at June 30, 2014, 2.33% at
December 31, 2013 and 2.51% at
September 30, 2013;
- Capital ratios continue to be strong: Tangible Common Equity
Ratio of 9.72%, Total Risk-Based Capital Ratio of 17.30%, Tier 1
Risk-Based Capital Ratio of 16.04%, and a Tier 1 Leverage Ratio of
9.71% at September 30, 2014.
TOTAL REVENUE
Total revenue, which is comprised of net
interest income (before provision for loan losses) and non-interest
income, was $11.83 million for the
quarter ended September 30, 2014,
representing a decrease of 14.21% compared to the previous quarter
and a decrease of 23.45% compared to the quarter ended September 30, 2013.
Net Interest Income
The Company recorded net interest
income of $9.55 million for the
quarter ended September 30, 2014,
representing an increase of 0.37% compared to the previous quarter
and an increase of 2.41% compared to the quarter ended September 30, 2013. The net interest margin
declined to 3.36%, compared to 3.38% for the previous quarter and
an increase compared to 3.33% for the quarter ended September 30, 2013.
The following factors contributed to the changes in the net
interest margin for the quarter:
- Yields on earning assets declined by 9 bp compared to the
previous quarter primarily due to a 4 bp decrease in loan yields
and a 9 bp decrease in yields on investments.
- Loan yields were lower, primarily as a result of:
- continued decline in mortgage loans held for sale and;
- payoffs in commercial and 1-4 family loans and lower yields on
loans booked during the quarter, which had the collective effect of
lowering the effective yield on the loan portfolio.
- Yields on investments decreased as some fixed rate securities
were sold and lower yielding floating rate securities were added in
a continuing effort to increase the asset sensitivity of the
balance sheet.
- Cost of funds declined by 7 bp to 45 bp as the Company paid off
$35.00 million of maturing FHLB
advances and added non-interest bearing deposits.
The decline in yields on earning assets resulted in total
interest income of $10.79 million for
the quarter, lower by 1.38% compared to the previous quarter.
The decrease in interest income was more than offset by a 13.00%
decline in interest expense for the quarter compared to the
previous quarter. This led to slightly higher net interest
income during the third quarter.
Total interest income for the quarter declined by 1.50% compared
to the quarter ended September 30,
2013 due to lower yields on earning assets. Loan
yields were lower by 9 bp while yields on securities were higher by
14 bp with yields on earning assets lower by 10 bp across quarters.
The decline in interest income was more than offset by a 23.81%
decrease in interest expense. Average earning assets during
the third quarter of 2014 were slightly higher compared to the same
quarter in 2013. Despite the slightly higher levels of
average earning assets, the greater net interest income for the
quarter resulted in a net interest margin that was 3 bp higher than
in the third quarter of 2013.
Non-Interest Income
Non-interest income was lower by
46.64% and 62.79% compared to the previous quarter and the quarter
ended September 30, 2013,
respectively. The primary reason for the decline in
non-interest income compared to the prior quarter and the quarter
ended September 30, 2013 was reduced
revenue from the sale of mortgage loans. The Company sold its
majority interest in Southern Trust Mortgage during the second
quarter of 2014. The drop in mortgage revenue was partially
offset by fees generated by the Company's wealth management
group. Fees earned by Middleburg Investment Group ("MIG")
increased by 9.06% compared to the previous quarter and were higher
by 16.93% compared to the quarter ended September 30, 2013. Fee income is based
primarily upon the market value of the accounts under
administration which were $1.78
billion at September 30, 2014
compared to $1.50 billion at
September 30, 2013.
NON-INTEREST EXPENSE
Non-interest expense fell by
24.62% compared to the previous quarter and declined by 36.93%
compared to the quarter ended September
30, 2013. Principal categories of non-interest expense
that changed were the following:
- Salaries and employee benefit expense decreased by 25.90%
compared to the previous quarter and was lower by 42.70% compared
to the quarter ended September 30,
2013. The primary reasons for lower salary and employee
benefit expenses were the sale of the Company's majority interest
in Southern Trust Mortgage on May 15,
2014 and staff reductions at the bank.
- Advertising expenses increased by 3.82% compared to the
previous quarter and decreased by 57.23% compared to the quarter
ended September 30, 2013. The Company
continues to streamline campaign and product promotions.
- Costs related to other real estate owned (OREO) declined by
375.00% compared to the previous quarter and by 107.93% compared to
the quarter ended September 30, 2013
as ongoing expenses to maintain the properties fell and net gains
of $238,000 were recognized on OREO
in 2014.
- Occupancy and equipment expense decreased by 24.84% compared to
the previous quarter and was lower by 30.66% compared to the
quarter ended September 30, 2013. The
primary reason for lower expenses in this category was the sale of
Southern Trust Mortgage on May 15,
2014. Expenses attributable to Southern Trust Mortgage were
consolidated in the Company's financial statements through the date
of the sale.
- Other expenses decreased by 27.59% compared to the previous
quarter and were lower by 22.81% compared to the quarter ended
September 30, 2013. Primary reasons
for declines in expenses in this category were the sale of Southern
Trust Mortgage on May 15, 2014. The
significant components in this category include expenses related to
deposit processing, fees for advisory services, telephone and
professional fees.
Although the sale of Southern Trust Mortgage reduced the
Company's revenue, the decline in non-interest expenses was greater
and the efficiency ratio for the third quarter of 2014 improved to
68.82% compared to 78.99% for the previous quarter.
ASSET QUALITY
Asset quality continued to improve
during the third quarter. The provision increased to
$550,000 for the quarter compared to
$72,000 for the previous quarter and
a provision of $3,000 for the quarter
ended September 30, 2013 as the
Company added to specific reserves for certain loans in the third
quarter of 2014.
- Loans that were delinquent for more than 90 days and still
accruing declined to $30,000 as of
September 30, 2014 from $808,000 as of December
31, 2013 and $636,000 as of
September 30, 2013.
- Nonaccrual loans declined to $7.33
million as of September 30,
2014 from $19.75 million as of
December 31, 2013 and $20.53 million as of September 30, 2013, representing a decrease of
62.88% and 64.28%, respectively.
- Troubled debt restructurings that were performing as agreed
totaled $4.52 million at September 30, 2014 compared to $4.67 million at December
31, 2013 and $4.82 million at
September 30, 2013, representing a
decrease of 3.25% and 6.18%, respectively.
- Other real estate owned (OREO) balances were $5.06 million at September
30, 2014 compared to $3.42
million at December 31, 2013
and $4.53 million at September 30, 2013 representing an increase of
47.90% and 11.79%, respectively. Other repossessed assets were
$1.13 million at September 30, 2014.
- Total nonperforming assets were $18.08
million or 1.50% of total assets at September 30, 2014 compared to $28.66 million or 2.33% to total assets at
December 31, 2013 and $30.51 million or 2.51% of total assets at
September 30, 2013.
The allowance for loans losses was $11.42
million or 1.57% of total loans at September 30, 2014 compared to $11.51 million or 1.58% of total loans at the end
of the previous quarter and $13.38
million or 1.87% of total loans at September 30, 2013.
CONSOLIDATED ASSETS
Total consolidated assets at
September 30, 2014 were $1.21 billion, a decrease of 1.63% since
December 31, 2013. Changes in
major asset categories were as follows:
- Cash balances and deposits at other banks increased by
$11.78 million compared to
December 31, 2013.
- Securities increased by $6.61
million compared to December 31,
2013.
- Loans held for investment increased by $272,000 from December 31,
2013.
CONSOLIDATED LIABILITIES
Total consolidated
liabilities at September 30, 2014
were $1.09 billion, a decrease of
2.33% compared to December 31,
2013. The most significant change in liabilities was the
decrease of $35.00 million in Federal
Home Loan Bank borrowings. Total deposits increased by
$4.17 million from December 31, 2013 to $986.57 million as of quarter end September 30, 2014.
SHAREHOLDERS' EQUITY AND CAPITAL
Shareholders' equity
attributable to Middleburg Financial Corporation shareholders at
September 30, 2014 was $120.92 million, compared to $112.58 million at December 31, 2013. Retained earnings at
September 30, 2014 were $54.94 million compared to $50.69 million at December
31, 2013. The book value of the Company's common stock at
September 30, 2014 was $16.97 per share versus $15.90 per share at December 31, 2013.
The Company's capital ratios remain well above regulatory
minimum capital ratios as of September 30,
2014:
- Tier 1 Leverage ratio was 9.71%, 5.71% over the regulatory
minimum of 4.0%.
- Tier 1 Risk-Based Capital Ratio was 16.04%, 12.04% over the
regulatory minimum of 4.0%.
- Total Risk Based Capital Ratio was 17.30%, 9.30% over the
regulatory minimum of 8.0%.
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, 2013, 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
|
Consolidated
Balance Sheets
|
(In thousands, except
for share and per share data)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
September 30,
2014
|
|
December 31,
2013
|
ASSETS
|
|
|
|
|
|
Cash and due from
banks
|
$
|
5,861
|
|
|
$
|
6,648
|
|
Interest-bearing
deposits with other institutions
|
73,264
|
|
|
60,695
|
|
Total cash and cash
equivalents
|
79,125
|
|
|
67,343
|
|
Securities available
for sale, at fair value
|
335,034
|
|
|
328,423
|
|
Loans held for
sale
|
—
|
|
|
33,175
|
|
Restricted
securities, at cost
|
4,829
|
|
|
6,780
|
|
Loans receivable, net
of allowance for loan losses of $11,423 and $13,320,
respectively
|
717,329
|
|
|
715,160
|
|
Premises and
equipment, net
|
17,796
|
|
|
20,017
|
|
Goodwill and
identified intangibles
|
3,850
|
|
|
5,346
|
|
Other real estate
owned, net of valuation allowance of $867 and $398,
respectively
|
5,064
|
|
|
3,424
|
|
Bank owned life
insurance
|
22,450
|
|
|
21,955
|
|
Accrued interest
receivable and other assets
|
22,250
|
|
|
26,130
|
|
TOTAL
ASSETS
|
$
|
1,207,727
|
|
|
$
|
1,227,753
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Non-interest bearing
demand deposits
|
$
|
210,112
|
|
|
$
|
185,577
|
|
Savings and interest
bearing demand deposits
|
528,229
|
|
|
528,879
|
|
Time
deposits
|
248,225
|
|
|
267,940
|
|
Total
deposits
|
986,566
|
|
|
982,396
|
|
Securities sold under
agreements to repurchase
|
36,469
|
|
|
34,539
|
|
Federal Home Loan
Bank borrowings
|
45,000
|
|
|
80,000
|
|
Subordinated
notes
|
5,155
|
|
|
5,155
|
|
Accrued interest
payable and other liabilities
|
13,615
|
|
|
10,590
|
|
Commitments and
contingent liabilities
|
—
|
|
|
—
|
|
TOTAL
LIABILITIES
|
1,086,805
|
|
|
1,112,680
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Common stock ($2.50
par value; 20,000,000 shares authorized, 7,123,914 and 7,080,591,
issued and outstanding, respectively)
|
17,480
|
|
|
17,403
|
|
Capital
surplus
|
44,683
|
|
|
44,251
|
|
Retained
earnings
|
54,937
|
|
|
50,689
|
|
Accumulated other
comprehensive income
|
3,822
|
|
|
232
|
|
Total Middleburg
Financial Corporation shareholders' equity
|
120,922
|
|
|
112,575
|
|
Non-controlling
interest in consolidated subsidiary
|
—
|
|
|
2,498
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
120,922
|
|
|
115,073
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
1,207,727
|
|
|
$
|
1,227,753
|
|
MIDDLEBURG
FINANCIAL CORPORATION
|
Consolidated
Statements of Income
|
(In thousands, except
for per share data)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
For the Three
Months
Ended September
30,
|
|
For the Nine
Months
Ended September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
8,357
|
|
|
$
|
8,744
|
|
|
$
|
25,656
|
|
|
$
|
26,504
|
|
Interest and
dividends on securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
1,763
|
|
|
1,468
|
|
|
5,173
|
|
|
4,467
|
|
Tax-exempt
|
535
|
|
|
640
|
|
|
1,656
|
|
|
1,917
|
|
Dividends
|
84
|
|
|
59
|
|
|
230
|
|
|
169
|
|
Interest on deposits
in banks and federal funds sold
|
51
|
|
|
43
|
|
|
123
|
|
|
101
|
|
Total interest and
dividend income
|
10,790
|
|
|
10,954
|
|
|
32,838
|
|
|
33,158
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
955
|
|
|
1,190
|
|
|
2,952
|
|
|
3,817
|
|
Interest on
securities sold under agreements to repurchase
|
81
|
|
|
82
|
|
|
243
|
|
|
243
|
|
Interest on
short-term borrowings
|
—
|
|
|
59
|
|
|
—
|
|
|
106
|
|
Interest on FHLB
borrowings and other debt
|
209
|
|
|
303
|
|
|
876
|
|
|
896
|
|
Total interest
expense
|
1,245
|
|
|
1,634
|
|
|
4,071
|
|
|
5,062
|
|
NET INTEREST
INCOME
|
9,545
|
|
|
9,320
|
|
|
28,767
|
|
|
28,096
|
|
Provision for
(recovery of) loan losses
|
550
|
|
|
3
|
|
|
1,510
|
|
|
(1)
|
|
NET INTEREST INCOME
AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES
|
8,995
|
|
|
9,317
|
|
|
27,257
|
|
|
28,097
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
635
|
|
|
590
|
|
|
1,815
|
|
|
1,699
|
|
Trust services
income
|
1,119
|
|
|
963
|
|
|
3,224
|
|
|
2,937
|
|
Gains on loans held
for sale
|
1
|
|
|
4,162
|
|
|
4,859
|
|
|
12,538
|
|
Gains on securities
available for sale, net
|
12
|
|
|
23
|
|
|
141
|
|
|
397
|
|
Commissions on
investment sales
|
193
|
|
|
159
|
|
|
479
|
|
|
363
|
|
Bank owned life
insurance
|
168
|
|
|
125
|
|
|
494
|
|
|
367
|
|
Gain on sale of
majority interest in consolidated subsidiary
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
Other operating
income
|
152
|
|
|
106
|
|
|
1,399
|
|
|
835
|
|
Total non-interest
income
|
2,280
|
|
|
6,128
|
|
|
12,435
|
|
|
19,136
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
4,441
|
|
|
7,750
|
|
|
17,467
|
|
|
23,242
|
|
Occupancy and
equipment
|
1,262
|
|
|
1,820
|
|
|
4,841
|
|
|
5,412
|
|
Advertising
|
136
|
|
|
318
|
|
|
430
|
|
|
1,021
|
|
Computer
operations
|
439
|
|
|
456
|
|
|
1,408
|
|
|
1,375
|
|
Other real estate
owned
|
(33)
|
|
|
416
|
|
|
145
|
|
|
1,377
|
|
Other
taxes
|
220
|
|
|
186
|
|
|
637
|
|
|
565
|
|
Federal deposit
insurance
|
220
|
|
|
149
|
|
|
687
|
|
|
683
|
|
Other operating
expenses
|
1,706
|
|
|
2,210
|
|
|
6,042
|
|
|
6,666
|
|
Total non-interest
expense
|
8,391
|
|
|
13,305
|
|
|
31,657
|
|
|
40,341
|
|
Income before income
taxes
|
2,884
|
|
|
2,140
|
|
|
8,035
|
|
|
6,892
|
|
Income tax
expense
|
763
|
|
|
491
|
|
|
2,179
|
|
|
1,628
|
|
NET INCOME
|
2,121
|
|
|
1,649
|
|
|
5,856
|
|
|
5,264
|
|
Net loss (income)
attributable to non-controlling interest
|
—
|
|
|
(38)
|
|
|
98
|
|
|
(233)
|
|
Net income
attributable to Middleburg Financial Corporation
|
$
|
2,121
|
|
|
$
|
1,611
|
|
|
$
|
5,954
|
|
|
$
|
5,031
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.84
|
|
|
$
|
0.71
|
|
Diluted
|
$
|
0.30
|
|
|
$
|
0.23
|
|
|
$
|
0.84
|
|
|
$
|
0.71
|
|
Dividends per common
share
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
$
|
0.17
|
|
MIDDLEBURG
FINANCIAL CORPORATION
|
Quarterly Summary
Statements of Income
|
(Unaudited, Dollars
In thousands, except for per share data)
|
|
|
For the Three
Months Ended
|
|
September
30,
2014
|
|
June
30,
2014
|
|
March
31,
2014
|
|
December
31,
2013
|
|
September
30,
2013
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
8,357
|
|
|
$
|
8,493
|
|
|
$
|
8,806
|
|
|
$
|
8,744
|
|
|
$
|
8,744
|
|
Interest and
dividends on securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
1,763
|
|
|
1,792
|
|
|
1,617
|
|
|
1,638
|
|
|
1,468
|
|
Tax-exempt
|
535
|
|
|
537
|
|
|
584
|
|
|
638
|
|
|
640
|
|
Dividends
|
84
|
|
|
72
|
|
|
73
|
|
|
63
|
|
|
59
|
|
Interest on deposits
in banks and federal funds sold
|
51
|
|
|
47
|
|
|
26
|
|
|
31
|
|
|
43
|
|
Total interest and
dividend income
|
10,790
|
|
|
10,941
|
|
|
11,106
|
|
|
11,114
|
|
|
10,954
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
955
|
|
|
995
|
|
|
1,002
|
|
|
1,094
|
|
|
1,190
|
|
Interest on
securities sold under agreements to repurchase
|
81
|
|
|
81
|
|
|
80
|
|
|
82
|
|
|
82
|
|
Interest on
short-term borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
59
|
|
Interest on FHLB
borrowings and other debt
|
209
|
|
|
355
|
|
|
313
|
|
|
311
|
|
|
303
|
|
Total interest
expense
|
1,245
|
|
|
1,431
|
|
|
1,395
|
|
|
1,504
|
|
|
1,634
|
|
NET INTEREST
INCOME
|
9,545
|
|
|
9,510
|
|
|
9,711
|
|
|
9,610
|
|
|
9,320
|
|
Provision for loan
losses
|
550
|
|
|
72
|
|
|
888
|
|
|
110
|
|
|
3
|
|
NET INTEREST INCOME
AFTER PROVISION FOR LOAN LOSSES
|
8,995
|
|
|
9,438
|
|
|
8,823
|
|
|
9,500
|
|
|
9,317
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
635
|
|
|
622
|
|
|
557
|
|
|
593
|
|
|
590
|
|
Trust services
income
|
1,119
|
|
|
1,057
|
|
|
1,048
|
|
|
1,033
|
|
|
963
|
|
Gains on loans held
for sale
|
1
|
|
|
1,916
|
|
|
2,942
|
|
|
3,114
|
|
|
4,162
|
|
Gains on securities
available for sale, net
|
12
|
|
|
66
|
|
|
63
|
|
|
22
|
|
|
23
|
|
Commissions on
investment sales
|
193
|
|
|
146
|
|
|
140
|
|
|
107
|
|
|
159
|
|
Bank owned life
insurance
|
168
|
|
|
164
|
|
|
162
|
|
|
105
|
|
|
125
|
|
Gain on sale of
majority interest in consolidated subsidiary
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other operating
income
|
152
|
|
|
278
|
|
|
969
|
|
|
431
|
|
|
106
|
|
Total non-interest
income
|
2,280
|
|
|
4,273
|
|
|
5,881
|
|
|
5,405
|
|
|
6,128
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
4,441
|
|
|
5,993
|
|
|
7,033
|
|
|
7,385
|
|
|
7,750
|
|
Occupancy and
equipment
|
1,262
|
|
|
1,679
|
|
|
1,900
|
|
|
1,857
|
|
|
1,820
|
|
Advertising
|
136
|
|
|
131
|
|
|
163
|
|
|
436
|
|
|
318
|
|
Computer
operations
|
439
|
|
|
510
|
|
|
458
|
|
|
485
|
|
|
456
|
|
Other real estate
owned
|
(33)
|
|
|
12
|
|
|
167
|
|
|
78
|
|
|
416
|
|
Other
taxes
|
220
|
|
|
220
|
|
|
197
|
|
|
186
|
|
|
186
|
|
Federal deposit
insurance
|
220
|
|
|
230
|
|
|
238
|
|
|
139
|
|
|
149
|
|
Other operating
expenses
|
1,706
|
|
|
2,356
|
|
|
1,979
|
|
|
3,134
|
|
|
2,210
|
|
Total non-interest
expense
|
8,391
|
|
|
11,131
|
|
|
12,135
|
|
|
13,700
|
|
|
13,305
|
|
Income before income
taxes
|
2,884
|
|
|
2,580
|
|
|
2,569
|
|
|
1,205
|
|
|
2,140
|
|
Income tax
expense
|
763
|
|
|
667
|
|
|
749
|
|
|
303
|
|
|
491
|
|
NET INCOME
|
2,121
|
|
|
1,913
|
|
|
1,820
|
|
|
902
|
|
|
1,649
|
|
Net loss (income)
attributable to non-controlling interest
|
—
|
|
|
(58)
|
|
|
157
|
|
|
224
|
|
|
(38)
|
|
Net income
attributable to Middleburg Financial Corporation
|
$
|
2,121
|
|
|
$
|
1,855
|
|
|
$
|
1,977
|
|
|
$
|
1,126
|
|
|
$
|
1,611
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.30
|
|
|
$
|
0.26
|
|
|
$
|
0.28
|
|
|
$
|
0.16
|
|
|
$
|
0.23
|
|
Diluted
|
$
|
0.30
|
|
|
$
|
0.26
|
|
|
$
|
0.28
|
|
|
$
|
0.16
|
|
|
$
|
0.23
|
|
Dividends per common
share
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
MIDDLEBURG
FINANCIAL CORPORATION
|
Selected Financial
Data by Quarter
|
(Unaudited, Dollars
in thousands, except for per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
BALANCE SHEET
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to
deposits
|
73.87
|
%
|
|
72.65
|
%
|
|
76.10
|
%
|
|
74.15
|
%
|
|
74.71
|
%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
130.14
|
%
|
|
128.37
|
%
|
|
126.80
|
%
|
|
126.87
|
%
|
|
126.23
|
%
|
INCOME STATEMENT
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (ROA)
|
0.69
|
%
|
|
0.61
|
%
|
|
0.66
|
%
|
|
0.37
|
%
|
|
0.52
|
%
|
Return on average
equity (ROE)
|
7.00
|
%
|
|
6.30
|
%
|
|
6.99
|
%
|
|
3.92
|
%
|
|
5.71
|
%
|
Net interest margin
(1)
|
3.36
|
%
|
|
3.38
|
%
|
|
3.54
|
%
|
|
3.43
|
%
|
|
3.33
|
%
|
Yield on average
earning assets
|
3.79
|
%
|
|
3.88
|
%
|
|
4.04
|
%
|
|
3.94
|
%
|
|
3.89
|
%
|
Cost of
funds
|
0.45
|
%
|
|
0.52
|
%
|
|
0.52
|
%
|
|
0.55
|
%
|
|
0.59
|
%
|
Efficiency ratio
(6)
|
68.82
|
%
|
|
78.99
|
%
|
|
75.19
|
%
|
|
88.32
|
%
|
|
81.19
|
%
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
$
|
0.10
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
Book value (MFC
Shareholders)
|
16.97
|
|
|
16.73
|
|
|
16.37
|
|
|
15.90
|
|
|
15.86
|
|
Tangible book value
(4)
|
16.43
|
|
|
16.19
|
|
|
15.62
|
|
|
15.13
|
|
|
15.03
|
|
SHARE PRICE
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing
price
|
$
|
17.74
|
|
|
$
|
20.00
|
|
|
$
|
17.61
|
|
|
$
|
18.04
|
|
|
$
|
19.28
|
|
Diluted earnings
multiple (2)
|
14.78
|
|
|
19.23
|
|
|
15.72
|
|
|
19.61
|
|
|
20.96
|
|
Book value multiple
(3)
|
1.05
|
|
|
1.20
|
|
|
1.08
|
|
|
1.11
|
|
|
1.21
|
|
COMMON STOCK
DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares at
end of period
|
7,123,914
|
|
|
7,113,744
|
|
|
7,076,145
|
|
|
7,080,591
|
|
|
7,089,091
|
|
Weighted average
shares O/S , basic - QTD
|
7,108,450
|
|
|
7,093,788
|
|
|
7,078,470
|
|
|
7,096,260
|
|
|
7,080,244
|
|
Weighted average
shares O/S, diluted - QTD
|
7,134,262
|
|
|
7,117,826
|
|
|
7,103,785
|
|
|
7,130,272
|
|
|
7,118,208
|
|
Dividend payout
ratio
|
33.33
|
%
|
|
26.92
|
%
|
|
25.05
|
%
|
|
33.32
|
%
|
|
30.43
|
%
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital to assets -
common shareholders
|
10.01
|
%
|
|
9.50
|
%
|
|
9.59
|
%
|
|
9.20
|
%
|
|
9.25
|
%
|
Capital to assets -
with non-controlling interest
|
10.01
|
%
|
|
9.50
|
%
|
|
9.78
|
%
|
|
9.40
|
%
|
|
9.48
|
%
|
Tangible common
equity ratio (5)
|
9.72
|
%
|
|
9.22
|
%
|
|
9.19
|
%
|
|
8.76
|
%
|
|
8.81
|
%
|
Leverage
ratio
|
9.71
|
%
|
|
9.54
|
%
|
|
9.61
|
%
|
|
9.42
|
%
|
|
9.36
|
%
|
Tier 1 risk based
capital ratio
|
16.04
|
%
|
|
15.63
|
%
|
|
14.67
|
%
|
|
14.62
|
%
|
|
14.58
|
%
|
Total risk based
capital ratio
|
17.30
|
%
|
|
16.88
|
%
|
|
15.93
|
%
|
|
15.88
|
%
|
|
15.83
|
%
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans
|
0.09
|
%
|
|
0.23
|
%
|
|
0.13
|
%
|
|
0.02
|
%
|
|
0.03
|
%
|
Total nonperforming
loans to total loans
|
1.63
|
%
|
|
2.10
|
%
|
|
2.76
|
%
|
|
3.46
|
%
|
|
3.63
|
%
|
Total nonperforming
assets to total assets
|
1.50
|
%
|
|
1.57
|
%
|
|
2.04
|
%
|
|
2.33
|
%
|
|
2.51
|
%
|
Nonaccrual loans
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
1.01
|
%
|
|
1.43
|
%
|
|
2.03
|
%
|
|
2.71
|
%
|
|
2.87
|
%
|
Total
assets
|
0.61
|
%
|
|
0.83
|
%
|
|
1.23
|
%
|
|
1.61
|
%
|
|
1.69
|
%
|
Allowance for loan
losses to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans
|
1.57
|
%
|
|
1.58
|
%
|
|
1.81
|
%
|
|
1.83
|
%
|
|
1.87
|
%
|
Nonperforming
assets
|
63.18
|
%
|
|
58.50
|
%
|
|
53.54
|
%
|
|
46.48
|
%
|
|
43.86
|
%
|
Nonaccrual
loans
|
155.80
|
%
|
|
110.57
|
%
|
|
88.92
|
%
|
|
67.44
|
%
|
|
65.20
|
%
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90+
days and still accruing
|
$
|
30
|
|
|
$
|
355
|
|
|
$
|
503
|
|
|
$
|
808
|
|
|
$
|
636
|
|
Nonaccrual
loans
|
7,332
|
|
|
10,408
|
|
|
14,876
|
|
|
19,752
|
|
|
20,525
|
|
Restructured loans
(not in nonaccrual)
|
4,522
|
|
|
4,552
|
|
|
4,838
|
|
|
4,674
|
|
|
4,820
|
|
Other real estate
owned
|
5,064
|
|
|
4,356
|
|
|
4,491
|
|
|
3,424
|
|
|
4,530
|
|
Repossessed
assets
|
1,132
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total nonperforming
assets
|
$
|
18,080
|
|
|
$
|
19,671
|
|
|
$
|
24,708
|
|
|
$
|
28,658
|
|
|
$
|
30,511
|
|
(1)
|
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.
|
(2)
|
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.
|
(3)
|
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.
|
(4)
|
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.
|
(5)
|
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.
|
(6)
|
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
Average Balances,
Income and Expenses, Yields and Rates
|
|
Three months ended
September 30,
|
|
2014
|
|
2013
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
282,860
|
|
|
$
|
1,847
|
|
|
2.59
|
%
|
|
$
|
266,197
|
|
|
$
|
1,527
|
|
|
2.28
|
%
|
Tax-exempt
(1)
|
54,410
|
|
|
811
|
|
|
5.91
|
%
|
|
64,678
|
|
|
970
|
|
|
5.95
|
%
|
Total
securities
|
$
|
337,270
|
|
|
$
|
2,658
|
|
|
3.13
|
%
|
|
$
|
330,875
|
|
|
$
|
2,497
|
|
|
2.99
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
730,006
|
|
|
$
|
8,351
|
|
|
4.54
|
%
|
|
$
|
748,145
|
|
|
$
|
8,738
|
|
|
4.63
|
%
|
Tax-exempt (1)
|
652
|
|
|
9
|
|
|
5.48
|
%
|
|
687
|
|
|
9
|
|
|
5.20
|
%
|
Total loans
(3)
|
$
|
730,658
|
|
|
$
|
8,360
|
|
|
4.54
|
%
|
|
$
|
748,832
|
|
|
$
|
8,747
|
|
|
4.63
|
%
|
Interest on deposits
in banks and federal funds sold
|
90,463
|
|
|
51
|
|
|
0.22
|
%
|
|
70,710
|
|
|
43
|
|
|
0.24
|
%
|
Total earning
assets
|
$
|
1,158,391
|
|
|
$
|
11,069
|
|
|
3.79
|
%
|
|
$
|
1,150,417
|
|
|
$
|
11,287
|
|
|
3.89
|
%
|
Less: allowance for
loan losses
|
(11,309)
|
|
|
|
|
|
|
|
|
(13,555)
|
|
|
|
|
|
|
|
Total nonearning
assets
|
74,477
|
|
|
|
|
|
|
|
|
81,287
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,221,559
|
|
|
|
|
|
|
|
|
$
|
1,218,149
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$
|
354,080
|
|
|
$
|
163
|
|
|
0.18
|
%
|
|
$
|
314,504
|
|
|
$
|
210
|
|
|
0.26
|
%
|
Regular
savings
|
113,607
|
|
|
53
|
|
|
0.19
|
%
|
|
110,904
|
|
|
63
|
|
|
0.23
|
%
|
Money market
savings
|
72,034
|
|
|
34
|
|
|
0.19
|
%
|
|
73,625
|
|
|
41
|
|
|
0.22
|
%
|
Time
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$100,000 and
over
|
121,274
|
|
|
297
|
|
|
0.97
|
%
|
|
136,730
|
|
|
388
|
|
|
1.13
|
%
|
Under
$100,000
|
129,578
|
|
|
408
|
|
|
1.25
|
%
|
|
140,643
|
|
|
489
|
|
|
1.38
|
%
|
Total
interest-bearing deposits
|
$
|
790,573
|
|
|
$
|
955
|
|
|
0.48
|
%
|
|
$
|
776,406
|
|
|
$
|
1,191
|
|
|
0.61
|
%
|
Short-term
borrowings
|
—
|
|
|
—
|
|
|
—
|
%
|
|
7,217
|
|
|
59
|
|
|
3.24
|
%
|
Securities sold under
agreements to repurchase
|
39,142
|
|
|
81
|
|
|
0.82
|
%
|
|
37,566
|
|
|
82
|
|
|
0.87
|
%
|
FHLB borrowings and
other debt
|
60,372
|
|
|
209
|
|
|
1.37
|
%
|
|
90,155
|
|
|
302
|
|
|
1.33
|
%
|
Federal funds
purchased
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
Total
interest-bearing liabilities
|
$
|
890,087
|
|
|
$
|
1,245
|
|
|
0.55
|
%
|
|
$
|
911,344
|
|
|
$
|
1,634
|
|
|
0.71
|
%
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
200,768
|
|
|
|
|
|
|
|
|
183,539
|
|
|
|
|
|
|
|
Other
liabilities
|
10,539
|
|
|
|
|
|
|
|
|
8,467
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
1,101,394
|
|
|
|
|
|
|
|
|
$
|
1,103,350
|
|
|
|
|
|
|
|
Non-controlling
interest
|
—
|
|
|
|
|
|
|
|
|
2,766
|
|
|
|
|
|
|
|
Shareholders'
equity
|
120,165
|
|
|
|
|
|
|
|
|
112,033
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,221,559
|
|
|
|
|
|
|
|
|
$
|
1,218,149
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
9,824
|
|
|
|
|
|
|
|
|
$
|
9,653
|
|
|
|
|
Interest rate
spread
|
|
|
|
|
|
|
3.24
|
%
|
|
|
|
|
|
|
|
3.18
|
%
|
Cost of
Funds
|
|
|
|
|
|
|
0.45
|
%
|
|
|
|
|
|
|
|
0.59
|
%
|
Interest expense as a
percent of average earning assets
|
|
|
|
|
|
|
0.43
|
%
|
|
|
|
|
|
|
|
0.56
|
%
|
Net interest
margin
|
|
|
|
|
|
|
3.36
|
%
|
|
|
|
|
|
|
|
3.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(3) Total average
loans include loans on non-accrual status.
|
MIDDLEBURG
FINANCIAL CORPORATION
Average Balances,
Income and Expenses, Yields and Rates
|
|
Nine months ended
September 30,
|
|
2014
|
|
2013
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
278,650
|
|
|
$
|
5,403
|
|
|
2.59
|
%
|
|
$
|
266,847
|
|
|
$
|
4,636
|
|
|
2.32
|
%
|
Tax-exempt
(1)
|
57,556
|
|
|
2,509
|
|
|
5.83
|
%
|
|
67,097
|
|
|
2,904
|
|
|
5.79
|
%
|
Total
securities
|
$
|
336,206
|
|
|
$
|
7,912
|
|
|
3.15
|
%
|
|
$
|
333,944
|
|
|
$
|
7,540
|
|
|
3.02
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
743,703
|
|
|
$
|
25,639
|
|
|
4.61
|
%
|
|
$
|
754,621
|
|
|
$
|
26,486
|
|
|
4.69
|
%
|
Tax-exempt (1)
|
652
|
|
|
26
|
|
|
5.33
|
%
|
|
687
|
|
|
27
|
|
|
5.25
|
%
|
Total loans
(3)
|
$
|
744,355
|
|
|
$
|
25,665
|
|
|
4.61
|
%
|
|
$
|
755,308
|
|
|
$
|
26,513
|
|
|
4.69
|
%
|
Interest on deposits
in banks and federal funds sold
|
73,759
|
|
|
123
|
|
|
0.22
|
%
|
|
58,042
|
|
|
101
|
|
|
0.23
|
%
|
Total earning
assets
|
$
|
1,154,320
|
|
|
$
|
33,700
|
|
|
3.90
|
%
|
|
$
|
1,147,294
|
|
|
$
|
34,154
|
|
|
3.98
|
%
|
Less: allowance for
loan losses
|
(12,497)
|
|
|
|
|
|
|
|
|
(13,770)
|
|
|
|
|
|
|
|
Total nonearning
assets
|
78,292
|
|
|
|
|
|
|
|
|
81,990
|
|
|
|
|
|
|
|
Total
assets
|
$
|
1,220,115
|
|
|
|
|
|
|
|
|
$
|
1,215,514
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$
|
342,551
|
|
|
$
|
485
|
|
|
0.19
|
%
|
|
$
|
322,344
|
|
|
$
|
656
|
|
|
0.27
|
%
|
Regular
savings
|
113,378
|
|
|
158
|
|
|
0.19
|
%
|
|
110,132
|
|
|
185
|
|
|
0.22
|
%
|
Money market
savings
|
73,910
|
|
|
105
|
|
|
0.19
|
%
|
|
75,798
|
|
|
131
|
|
|
0.23
|
%
|
Time
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$100,000 and
over
|
125,036
|
|
|
937
|
|
|
1.00
|
%
|
|
141,048
|
|
|
1,327
|
|
|
1.26
|
%
|
Under
$100,000
|
130,776
|
|
|
1,267
|
|
|
1.30
|
%
|
|
142,070
|
|
|
1,518
|
|
|
1.43
|
%
|
Total
interest-bearing deposits
|
$
|
785,651
|
|
|
$
|
2,952
|
|
|
0.50
|
%
|
|
$
|
791,392
|
|
|
$
|
3,817
|
|
|
0.64
|
%
|
Short-term
borrowings
|
—
|
|
|
—
|
|
|
—
|
%
|
|
4,005
|
|
|
106
|
|
|
3.54
|
%
|
Securities sold under
agreements to repurchase
|
36,682
|
|
|
243
|
|
|
0.88
|
%
|
|
35,303
|
|
|
243
|
|
|
0.92
|
%
|
FHLB borrowings and
other debt
|
76,803
|
|
|
876
|
|
|
1.52
|
%
|
|
87,274
|
|
|
896
|
|
|
1.37
|
%
|
Federal funds
purchased
|
1
|
|
|
—
|
|
|
0.00
|
%
|
|
—
|
|
|
—
|
|
|
0.00
|
%
|
Total
interest-bearing liabilities
|
$
|
899,137
|
|
|
$
|
4,071
|
|
|
0.61
|
%
|
|
$
|
917,974
|
|
|
$
|
5,062
|
|
|
0.74
|
%
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
193,501
|
|
|
|
|
|
|
|
|
172,751
|
|
|
|
|
|
|
|
Other
liabilities
|
9,947
|
|
|
|
|
|
|
|
|
7,691
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
1,102,585
|
|
|
|
|
|
|
|
|
$
|
1,098,416
|
|
|
|
|
|
|
|
Non-controlling
interest
|
—
|
|
|
|
|
|
|
|
|
2,882
|
|
|
|
|
|
|
|
Shareholders'
equity
|
117,530
|
|
|
|
|
|
|
|
|
114,216
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,220,115
|
|
|
|
|
|
|
|
|
$
|
1,215,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
29,629
|
|
|
|
|
|
|
|
|
$
|
29,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
|
|
|
3.29
|
%
|
|
|
|
|
|
|
|
3.24
|
%
|
Cost of
Funds
|
|
|
|
|
|
|
0.50
|
%
|
|
|
|
|
|
|
|
0.62
|
%
|
Interest expense as a
percent of average earning assets
|
|
|
|
|
|
|
0.47
|
%
|
|
|
|
|
|
|
|
0.59
|
%
|
Net interest
margin
|
|
|
|
|
|
|
3.43
|
%
|
|
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(3) Total average
loans include loans on non-accrual status.
|
SOURCE Middleburg Financial Corporation