MIDDLEBURG, Va., Oct. 30, 2015 /PRNewswire/ -- Middleburg
Financial Corporation (the "Company") (Nasdaq: MBRG), today
announced net income of $2.32
million, or $0.32 per diluted
share, for the quarter ended September 30,
2015.
Gary R. Shook, president and CEO
commented: "The third quarter reflected the results of management's
methodical approach to a return to higher performance. The
increased loan growth seen this year has continued through the
third quarter with loan pipelines remaining strong as we move into
the fourth quarter of 2015. The net interest margin showed
signs of stabilizing during the quarter which bodes well for net
interest income going forward. Continued improvement in asset
quality has allowed the Company greater flexibility with the
adjustment of reserve levels. Record corporate annual
earnings of $8.2 million, achieved in
2003, are now within our sight as we move toward year's end.
Finally, we were again gratified to be rated as a Five Star
Bank by BauerFinancial, Inc."
Third Quarter 2015 Highlights:
- Net income increased to $2.32
million or $0.32 per diluted
share, higher by 9.43% compared to $2.12
million or $0.30 per diluted
share for the third quarter of 2014. Net income for the nine
months ended September 30, 2015 was
$7.05 million or $0.98 per diluted share compared to $5.95 million or $0.84 per diluted share for the same period in
2014.
- Net interest margin increased to 3.28%, higher by 4 basis
points ("bp") compared to the previous quarter and lower by 8 bp
compared to the third quarter of 2014.
- Cost of funds declined to 37 bp, a decrease of 1 bp compared to
the previous quarter and 8 bp lower than the third quarter of
2014.
- Total revenue increased to $12.01
million for the third quarter of 2015, higher by 2.26%
compared to the previous quarter and an increase of 1.59% compared
to the third quarter of 2014.
- Net interest income increased to $9.66
million, higher by 3.72% compared to the previous quarter
and 1.19% higher than the third quarter of 2014. Net interest
income was $28.60 million for the
nine months ended September 30, 2015,
a decrease of 0.57% from net interest income reported for the same
period for 2014.
- Non-interest income declined by 3.33% compared to the previous
quarter and was higher by 3.25% compared to the third quarter of
2014.
- Non-interest expense increased slightly to $9.27 million, higher by 2.16% compared to the
previous quarter and higher by 10.52% compared to the third quarter
of 2014. Non-interest expense for the nine months ended
September 30, 2015 fell by 13.91%
compared to the nine months ended September
30, 2014, primarily due to the sale of the Company's
majority interest in Southern Trust Mortgage in the second quarter
of 2014.
- The efficiency ratio improved to 73.30%, compared to 74.88% for
the previous quarter and 68.82% for the third quarter of
2014. The year to date efficiency ratio of 72.11% compared to
74.41% for the same period in 2014.
- Total assets were $1.26 billion,
an increase of 3.14% since December 31,
2014.
- Total deposits were $1.03
billion, an increase of 4.38% since December 31, 2014.
- Loan momentum increased with loans held-for-investment growing
to $780.87 million as of September 30, 2015 compared to $754.85 million on December 31, 2014 and $728.75 million on September 30, 2014, representing an annualized
growth rate of 4.6% for 2015 through the end of the third quarter
and a 7.1% growth rate comparing calendar quarters.
- The allowance for loan losses declined by $494,000 compared to the previous quarter as a
result of net charge-offs of $62,000
and a recovery of the provision for loan losses of $432,000. The allowance for loan losses was
1.46% of total loans compared to 1.54% for the previous quarter and
1.56% at year-end 2014.
- Capital ratios continue to be strong: Total Risk-Based Capital
Ratio of 18.25%, Tier 1 Risk-Based Capital Ratio of 16.99%, Common
Equity Tier 1 Ratio of 16.31% and Tier 1 Leverage Ratio of 9.84% at
September 30,
2015.
TOTAL REVENUE
Total revenue was $12.01 million
for the third quarter of 2015, higher by 2.26% compared to the
previous quarter and an increase of 1.59% compared to the third
quarter of 2014.
Net Interest Income
The Company recorded net interest income of $9.66 million for the third quarter of 2015, an
increase of 3.72% compared to the previous quarter and higher by
1.19% compared to the quarter ended September 30, 2014. The net interest margin
was 3.28%, higher by 4 bp compared to the previous quarter and 8 bp
lower than the quarter ended September 30,
2014.
The following factors contributed to the increase in net
interest margin during the third quarter of 2015, compared to the
previous quarter:
- Yields on earning assets increased by 4 bp compared to the
previous quarter, primarily due to a 9 bp increase in yields on
investments.
- Yields on investment securities increased as we added
securities with reduced prepayment sensitivity and premium
amortization slowed during the quarter.
- A combination of robust loan growth and reduced payoff activity
resulted in no change to loan yields compared to the previous
quarter.
- Cost of funds was 37 bp, lower by 1 bp compared to the previous
quarter.
The following table analyzes changes in net interest income
comparing the third quarter of 2015 to the previous quarter and to
the quarter ended September 30,
2014.
|
|
Quarters Ended
(Annualized)
|
(Dollars in
thousands)
|
|
September 30, 2015
vs. June 30, 2015
Increase (Decrease) Due to Changes in:
|
|
September 30, 2015
vs. September 30, 2014
Increase (Decrease) Due to Changes in:
|
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
Earning
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
114
|
|
|
$
|
485
|
|
|
$
|
599
|
|
|
$
|
923
|
|
|
$
|
(280)
|
|
|
$
|
643
|
|
Tax-exempt
(1)
|
|
3
|
|
|
(35)
|
|
|
(32)
|
|
|
(179)
|
|
|
(372)
|
|
|
(551)
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
541
|
|
|
304
|
|
|
845
|
|
|
3,107
|
|
|
(3,619)
|
|
|
(512)
|
|
Tax-exempt
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(3)
|
|
|
(4)
|
|
Interest on deposits
with other banks
and federal funds sold
|
|
(10)
|
|
|
(22)
|
|
|
(32)
|
|
|
(88)
|
|
|
(23)
|
|
|
(111)
|
|
Total earning
assets
|
|
$
|
648
|
|
|
$
|
732
|
|
|
$
|
1,380
|
|
|
$
|
3,762
|
|
|
$
|
(4,297)
|
|
|
$
|
(535)
|
|
Interest-Bearing
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
|
$
|
(4)
|
|
|
$
|
16
|
|
|
$
|
12
|
|
|
$
|
(18)
|
|
|
$
|
70
|
|
|
$
|
52
|
|
Regular
savings
|
|
3
|
|
|
1
|
|
|
4
|
|
|
12
|
|
|
—
|
|
|
12
|
|
Money market
savings
|
|
—
|
|
|
4
|
|
|
4
|
|
|
(11)
|
|
|
3
|
|
|
(8)
|
|
Time
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
$100,000 and
over
|
|
166
|
|
|
(24)
|
|
|
142
|
|
|
204
|
|
|
(105)
|
|
|
99
|
|
Under
$100,000
|
|
(38)
|
|
|
(9)
|
|
|
(47)
|
|
|
(298)
|
|
|
(166)
|
|
|
(464)
|
|
Total
interest-bearing deposits
|
|
$
|
127
|
|
|
$
|
(12)
|
|
|
$
|
115
|
|
|
$
|
(111)
|
|
|
$
|
(198)
|
|
|
$
|
(309)
|
|
Securities sold under
agreements to
repurchase
|
|
(1)
|
|
|
(59)
|
|
|
(60)
|
|
|
(67)
|
|
|
(247)
|
|
|
(314)
|
|
FHLB borrowings and
other debt
|
|
(63)
|
|
|
27
|
|
|
(36)
|
|
|
137
|
|
|
(311)
|
|
|
(174)
|
|
Total
interest-bearing liabilities
|
|
$
|
63
|
|
|
$
|
(44)
|
|
|
$
|
19
|
|
|
$
|
(41)
|
|
|
$
|
(756)
|
|
|
$
|
(797)
|
|
Change in net
interest income
|
|
$
|
585
|
|
|
$
|
776
|
|
|
$
|
1,361
|
|
|
$
|
3,803
|
|
|
$
|
(3,541)
|
|
|
$
|
262
|
|
Comparing the third quarter of 2015 to the previous quarter, the
table shows the increase in interest income for investments was
largely driven by rate changes, as premium amortization slowed
causing yields to increase. The increase in interest income from
loans was mostly due to volume as higher loan balances helped
stabilize loan yields during the quarter.
Non-Interest Income
Non-interest income decreased by 3.33% compared to the previous
quarter and increased by 3.25% compared to the quarter ended
September 30, 2014.
- Total revenue generated by our wealth management group,
Middleburg Investment Group ("MIG") was $1.17 million for the quarter ended September 30, 2015, a decrease of 6.03% compared
to the previous quarter and higher by 4.38% compared to the quarter
ended September 30, 2014. The
decline in fee income during the third quarter of 2015 was largely
due to changes in market value of assets under administration
during the quarter. Fee income is based primarily upon the
market value of assets under administration which were $1.91 billion at September
30, 2015, $1.87 billion at
December 31, 2014 and $1.78 billion at September
30, 2014.
- Other operating income was $266,000 for the quarter ended September 30, 2015, an increase of 19.28%
compared to the previous quarter and higher by 75.00% compared to
the quarter ended September 30,
2014. Most of the increase in other operating income during
the periods stem from rental income received and prepayment
penalties on certain investment securities.
NON-INTEREST EXPENSE
Non-interest expense increased slightly by 2.16% compared to the
previous quarter and by 10.52% compared to the the quarter ended
September 30, 2014. Principal
categories of non-interest expense that changed were the
following:
- Salaries and employee benefit expenses decreased by 2.97% when
compared to the previous quarter and increased by 8.85% when
compared to the quarter ended September
30, 2014. The decline in salary and benefit expenses
compared to the previous quarter was primarily due to lower
incentive accruals as we aligned compensation to the achievement of
growth targets. The increase in salary and benefit expenses
compared to the third quarter of 2014 resulted from staffing
changes related to our mortgage division.
- Costs related to other real estate owned (OREO) increased,
primarily driven by a valuation adjustment for one property
resulting from an updated appraisal received during the current
quarter.
- Other operating expenses increased by 8.41% compared to the
previous quarter and by 14.83% compared to the same period in 2014.
Most of the increase in other expenses in the third quarter of 2015
was due to expenses related to a fraud loss and advisory fees that
were non-recurring in nature.
ASSET QUALITY
While total non performing assets increased in the first nine
months of 2015, the increase was primarily due to the
restructuring of two loans that are part of a single
relationship. During the second quarter of 2015, two loans
from a single relationship totaling $9.93
million underwent a restructuring and one of the loans was
downgraded that quarter, which resulted in total nonperforming
assets increasing to $26.07 million
at September 30, 2015 compared to
$19.45 million at December 31, 2014. This also increased
troubled debt restructurings ("TDR's") to $15.94 million at September 30, 2015 compared to $6.90 million at December
31, 2014. While this loan was restructured and
downgraded during 2015, the Company had properly classified this
loan as impaired at December 31,
2014. The loan is also an accruing TDR.
With the exception of the increase in TDR's discussed earlier,
there were declines in past due, nonaccrual and loans risk rated as
special mention, substandard, doubtful or loss during the nine
months ended September 30, 2015.
- Total past due loans have declined 36.21% to $3.09 million as of September 30, 2015 from $4.85 million as of December 31, 2014.
- Nonaccrual loans have declined 11.23% to $8.83 million as of September 30, 2015 from $9.94 million as of December 31, 2014.
- Loans that were risk rated as special mention, substandard,
doubtful, and loss declined by 23.46% to $42.12 million as of September 30, 2015 from $55.03 million as of December 31, 2014.
In a continuing effort to enhance asset quality, the Company
also sold $1.02 million of
nonperforming loans in the second quarter of 2015.
The improvement in asset quality resulted in the allowance for
loans losses declining to $11.40
million or 1.46% of total loans at September 30, 2015 compared to $11.79 million or 1.56% of total loans at
December 31, 2014.
CONSOLIDATED ASSETS
Total consolidated assets increased to September 30, 2015 were $1.26 billion, higher by 3.14% since December 31, 2014. Changes in major asset
categories were as follows:
- Cash balances and deposits with other banks decreased by
$15.24 million compared to
December 31, 2014.
- The Company deployed some of its excess liquidity into growing
its securities portfolio which increased by $24.52 million compared to December 31, 2014.
- Loan momentum increased with loans held-for-investment growing
to $780.87 million as of September 30, 2015 compared to $754.85 million on December 31, 2014, an increase of $26.02 million from December 31, 2014. Gross loans were
$728.75 million on September 30, 2014. This represents an
annualized growth rate of 4.6% for 2015 through the end of the
third quarter and a 7.1% growth rate comparing calendar
quarters. Our mortgage division contributed $4.66 million and $6.06
million to total loan growth during the three and nine month
periods ended September 30, 2015,
respectively.
CONSOLIDATED LIABILITIES
Total consolidated liabilities at September 30, 2015 were $1.13 billion, an increase of 3.09% compared to
December 31, 2014. Deposit
growth continues to be strong with total deposits increasing by
$43.27 million from December 31, 2014 to $1.03
billion as of September 30,
2015. Federal Home Loan Bank borrowings increased by
$5.00 million from December 31, 2014 to $60.00 million at September 30, 2015.
SHAREHOLDERS' EQUITY AND CAPITAL
Shareholders' equity at September 30,
2015 was $126.41 million,
compared to $122.03 million at
December 31, 2014. Retained
earnings at September 30, 2015 were
$60.54 million compared to
$55.85 million at December 31, 2014. The book value of the
Company's common stock at September 30,
2015 was $17.65 per share
versus $17.11 per share at
December 31, 2014.
The Company's capital ratios remain well above regulatory
minimum capital ratios as of September 30,
2015:
- Tier 1 Leverage ratio was 9.84%, 5.84% over the regulatory
minimum of 4.00%.
- Common Equity Tier 1 Ratio was 16.31%, 9.31% over the
regulatory minimum of 7.00%.
- Tier 1 Risk-Based Capital Ratio was 16.99%, 8.49% over the
regulatory minimum of 8.50%.
- Total Risk Based Capital Ratio was 18.25%, 7.75% over the
regulatory minimum of 10.50%.
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, 2014, 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 AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(In thousands, except
for share and per share data)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
September 30,
2015
|
|
June 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
|
|
Cash and due from
banks
|
$
|
6,498
|
|
|
$
|
5,001
|
|
|
$
|
7,396
|
|
Interest bearing
deposits with other banks
|
33,281
|
|
|
44,406
|
|
|
47,626
|
|
Total cash and cash
equivalents
|
39,779
|
|
|
49,407
|
|
|
55,022
|
|
Securities held to
maturity, fair value of $1,375, $1,374 and $1,397,
respectively
|
1,500
|
|
|
1,500
|
|
|
1,500
|
|
Securities available
for sale, at fair value
|
372,779
|
|
|
351,990
|
|
|
348,263
|
|
Restricted
securities, at cost
|
5,349
|
|
|
5,774
|
|
|
5,279
|
|
Loans, net of
allowance for loan losses of $11,400, $11,894 and $11,786,
respectively
|
769,467
|
|
|
761,196
|
|
|
743,060
|
|
Premises and
equipment, net
|
19,787
|
|
|
19,888
|
|
|
18,104
|
|
Goodwill and
identified intangibles, net
|
3,679
|
|
|
3,722
|
|
|
3,807
|
|
Other real estate
owned, net of valuation allowance of $890, $663 and $755,
respectively
|
3,871
|
|
|
3,402
|
|
|
4,051
|
|
Bank owned life
insurance
|
23,107
|
|
|
22,940
|
|
|
22,617
|
|
Accrued interest
receivable and other assets
|
21,972
|
|
|
22,166
|
|
|
21,154
|
|
TOTAL
ASSETS
|
$
|
1,261,290
|
|
|
$
|
1,241,985
|
|
|
$
|
1,222,857
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Non-interest bearing
demand deposits
|
$
|
242,890
|
|
|
$
|
235,246
|
|
|
$
|
216,912
|
|
Savings and interest
bearing demand deposits
|
539,972
|
|
|
526,985
|
|
|
523,230
|
|
Time
deposits
|
249,491
|
|
|
243,221
|
|
|
248,938
|
|
Total
deposits
|
1,032,353
|
|
|
1,005,452
|
|
|
989,080
|
|
Securities sold under
agreements to repurchase
|
24,468
|
|
|
24,049
|
|
|
38,551
|
|
Federal Home Loan
Bank borrowings
|
60,000
|
|
|
70,000
|
|
|
55,000
|
|
Subordinated
notes
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
Accrued interest
payable and other liabilities
|
12,902
|
|
|
12,539
|
|
|
13,037
|
|
TOTAL
LIABILITIES
|
1,134,878
|
|
|
1,117,195
|
|
|
1,100,823
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Common stock ($2.50
par value; 20,000,000 shares authorized, 7,162,716, 7,163,255 and
7,131,643, issued and outstanding, respectively)
|
17,522
|
|
|
17,521
|
|
|
17,494
|
|
Capital
surplus
|
45,224
|
|
|
45,063
|
|
|
44,892
|
|
Retained
earnings
|
60,542
|
|
|
59,152
|
|
|
55,854
|
|
Accumulated other
comprehensive income
|
3,124
|
|
|
3,054
|
|
|
3,794
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
126,412
|
|
|
124,790
|
|
|
122,034
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
1,261,290
|
|
|
$
|
1,241,985
|
|
|
$
|
1,222,857
|
|
MIDDLEBURG
FINANCIAL CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Income
|
(In thousands, except
for per share data)
|
|
(Unaudited)
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
8,227
|
|
|
$
|
8,357
|
|
|
$
|
24,484
|
|
|
$
|
25,656
|
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
Taxable
|
1,938
|
|
|
1,763
|
|
|
5,636
|
|
|
5,173
|
|
Tax-exempt
|
444
|
|
|
535
|
|
|
1,354
|
|
|
1,656
|
|
Dividends
|
71
|
|
|
84
|
|
|
196
|
|
|
230
|
|
Interest on deposits
with other banks and federal funds sold
|
23
|
|
|
51
|
|
|
84
|
|
|
123
|
|
Total interest and
dividend income
|
10,703
|
|
|
10,790
|
|
|
31,754
|
|
|
32,838
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
Interest on
deposits
|
877
|
|
|
955
|
|
|
2,580
|
|
|
2,952
|
|
Interest on
securities sold under agreements to repurchase
|
2
|
|
|
81
|
|
|
64
|
|
|
243
|
|
Interest on FHLB
borrowings and other debt
|
165
|
|
|
209
|
|
|
507
|
|
|
876
|
|
Total interest
expense
|
1,044
|
|
|
1,245
|
|
|
3,151
|
|
|
4,071
|
|
NET INTEREST
INCOME
|
9,659
|
|
|
9,545
|
|
|
28,603
|
|
|
28,767
|
|
(Recovery of)
provision for loan losses
|
(432)
|
|
|
550
|
|
|
(407)
|
|
|
1,510
|
|
NET INTEREST INCOME
AFTER (RECOVERY OF) PROVISION
FOR LOAN LOSSES
|
10,091
|
|
|
8,995
|
|
|
29,010
|
|
|
27,257
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
622
|
|
|
635
|
|
|
1,792
|
|
|
1,815
|
|
Trust services
income
|
1,168
|
|
|
1,119
|
|
|
3,629
|
|
|
3,224
|
|
Gains on sales of
loans held for sale
|
—
|
|
|
1
|
|
|
3
|
|
|
4,859
|
|
Gains on sales of
securities available for sale, net
|
—
|
|
|
12
|
|
|
138
|
|
|
141
|
|
Commissions on
investment sales
|
132
|
|
|
193
|
|
|
415
|
|
|
479
|
|
Bank owned life
insurance
|
166
|
|
|
168
|
|
|
489
|
|
|
494
|
|
Gain on sale of
majority interest in consolidated subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Other operating
income
|
266
|
|
|
152
|
|
|
1,331
|
|
|
1,399
|
|
Total non-interest
income
|
2,354
|
|
|
2,280
|
|
|
7,797
|
|
|
12,435
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
4,834
|
|
|
4,441
|
|
|
14,664
|
|
|
17,467
|
|
Occupancy and
equipment
|
1,248
|
|
|
1,262
|
|
|
3,813
|
|
|
4,841
|
|
Advertising
|
98
|
|
|
136
|
|
|
332
|
|
|
430
|
|
Computer
operations
|
524
|
|
|
439
|
|
|
1,536
|
|
|
1,408
|
|
Other real estate
owned
|
193
|
|
|
(33)
|
|
|
285
|
|
|
145
|
|
Other
taxes
|
230
|
|
|
220
|
|
|
684
|
|
|
637
|
|
Federal deposit
insurance
|
188
|
|
|
220
|
|
|
583
|
|
|
687
|
|
Other operating
expenses
|
1,959
|
|
|
1,706
|
|
|
5,355
|
|
|
6,042
|
|
Total non-interest
expense
|
9,274
|
|
|
8,391
|
|
|
27,252
|
|
|
31,657
|
|
Income before income
taxes
|
3,171
|
|
|
2,884
|
|
|
9,555
|
|
|
8,035
|
|
Income tax
expense
|
850
|
|
|
763
|
|
|
2,506
|
|
|
2,179
|
|
NET INCOME
|
2,321
|
|
|
2,121
|
|
|
7,049
|
|
|
5,856
|
|
Net loss attributable
to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
Net income
attributable to Middleburg Financial Corporation
|
$
|
2,321
|
|
|
$
|
2,121
|
|
|
$
|
7,049
|
|
|
$
|
5,954
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
0.99
|
|
|
$
|
0.84
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
0.98
|
|
|
$
|
0.84
|
|
Dividends per common
share
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
$
|
0.33
|
|
|
$
|
0.24
|
|
MIDDLEBURG
FINANCIAL CORPORATION AND SUBSIDIARIES
|
Quarterly Summary
Statements of Income
|
(Unaudited, Dollars
In thousands, except for per share data)
|
|
For the Three
Months Ended
|
|
September
30,
2015
|
|
June
30,
2015
|
|
March
31,
2015
|
|
December
31,
2014
|
|
September
30,
2014
|
INTEREST AND DIVIDEND
INCOME
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
8,227
|
|
|
$
|
8,014
|
|
|
$
|
8,243
|
|
|
$
|
8,176
|
|
|
$
|
8,357
|
|
Interest and
dividends on securities
|
|
|
|
|
|
|
|
|
|
Taxable
|
1,938
|
|
|
1,792
|
|
|
1,906
|
|
|
1,728
|
|
|
1,763
|
|
Tax-exempt
|
444
|
|
|
449
|
|
|
461
|
|
|
481
|
|
|
535
|
|
Dividends
|
71
|
|
|
66
|
|
|
59
|
|
|
64
|
|
|
84
|
|
Interest on deposits
with other banks and federal funds sold
|
23
|
|
|
31
|
|
|
30
|
|
|
38
|
|
|
51
|
|
Total interest and
dividend income
|
10,703
|
|
|
10,352
|
|
|
10,699
|
|
|
10,487
|
|
|
10,790
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
877
|
|
|
848
|
|
|
855
|
|
|
933
|
|
|
955
|
|
Interest on
securities sold under agreements to
repurchase
|
2
|
|
|
17
|
|
|
45
|
|
|
79
|
|
|
81
|
|
Interest on FHLB
borrowings and other debt
|
165
|
|
|
174
|
|
|
168
|
|
|
160
|
|
|
209
|
|
Total interest
expense
|
1,044
|
|
|
1,039
|
|
|
1,068
|
|
|
1,172
|
|
|
1,245
|
|
NET INTEREST
INCOME
|
9,659
|
|
|
9,313
|
|
|
9,631
|
|
|
9,315
|
|
|
9,545
|
|
(Recovery of)
provision for loan losses
|
(432)
|
|
|
(425)
|
|
|
450
|
|
|
450
|
|
|
550
|
|
NET INTEREST INCOME
AFTER (RECOVERY OF) PROVISION FOR LOAN LOSSES
|
10,091
|
|
|
9,738
|
|
|
9,181
|
|
|
8,865
|
|
|
8,995
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
622
|
|
|
612
|
|
|
558
|
|
|
606
|
|
|
635
|
|
Trust services
income
|
1,168
|
|
|
1,243
|
|
|
1,218
|
|
|
1,138
|
|
|
1,119
|
|
Gains on sales of
loans held for sale
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Gains on sales of
securities available for sale, net
|
—
|
|
|
37
|
|
|
101
|
|
|
45
|
|
|
12
|
|
Commissions on
investment sales
|
132
|
|
|
154
|
|
|
129
|
|
|
132
|
|
|
193
|
|
Bank owned life
insurance
|
166
|
|
|
163
|
|
|
160
|
|
|
168
|
|
|
168
|
|
Other operating
income
|
266
|
|
|
223
|
|
|
842
|
|
|
260
|
|
|
152
|
|
Total non-interest
income
|
2,354
|
|
|
2,435
|
|
|
3,008
|
|
|
2,350
|
|
|
2,280
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
4,834
|
|
|
4,982
|
|
|
4,848
|
|
|
5,134
|
|
|
4,441
|
|
Occupancy and
equipment
|
1,248
|
|
|
1,226
|
|
|
1,339
|
|
|
1,336
|
|
|
1,262
|
|
Advertising
|
98
|
|
|
101
|
|
|
133
|
|
|
(65)
|
|
|
136
|
|
Computer
operations
|
524
|
|
|
522
|
|
|
490
|
|
|
485
|
|
|
439
|
|
Other real estate
owned
|
193
|
|
|
25
|
|
|
67
|
|
|
110
|
|
|
(33)
|
|
Other
taxes
|
230
|
|
|
231
|
|
|
223
|
|
|
212
|
|
|
220
|
|
Federal deposit
insurance
|
188
|
|
|
184
|
|
|
211
|
|
|
212
|
|
|
220
|
|
Other operating
expenses
|
1,959
|
|
|
1,807
|
|
|
1,589
|
|
|
1,999
|
|
|
1,706
|
|
Total non-interest
expense
|
9,274
|
|
|
9,078
|
|
|
8,900
|
|
|
9,423
|
|
|
8,391
|
|
Income before income
taxes
|
3,171
|
|
|
3,095
|
|
|
3,289
|
|
|
1,792
|
|
|
2,884
|
|
Income tax
expense
|
850
|
|
|
815
|
|
|
841
|
|
|
162
|
|
|
763
|
|
NET INCOME
|
$
|
2,321
|
|
|
$
|
2,280
|
|
|
$
|
2,448
|
|
|
$
|
1,630
|
|
|
$
|
2,121
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.23
|
|
|
$
|
0.30
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.23
|
|
|
$
|
0.30
|
|
Dividends per common
share
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
MIDDLEBURG
FINANCIAL CORPORATION AND SUBSIDIARIES
|
Selected Financial
Data by Quarter
|
(Unaudited, Dollars
in thousands, except for per share data)
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
BALANCE SHEET
RATIOS
|
|
|
|
|
|
|
|
|
|
Loans to
deposits
|
75.64
|
%
|
|
76.89
|
%
|
|
74.60
|
%
|
|
76.32
|
%
|
|
73.87
|
%
|
Average
interest-earning assets to average
interest-bearing liabilities
|
135.94
|
%
|
|
135.72
|
%
|
|
136.04
|
%
|
|
133.54
|
%
|
|
130.14
|
%
|
INCOME STATEMENT
RATIOS
|
|
|
|
|
|
|
|
|
|
Return on average
assets (ROA)
|
0.73
|
%
|
|
0.73
|
%
|
|
0.80
|
%
|
|
0.53
|
%
|
|
0.69
|
%
|
Return on average
equity (ROE)
|
7.33
|
%
|
|
7.31
|
%
|
|
8.01
|
%
|
|
5.31
|
%
|
|
7.00
|
%
|
Net interest margin
(1)
|
3.28
|
%
|
|
3.24
|
%
|
|
3.40
|
%
|
|
3.31
|
%
|
|
3.36
|
%
|
Yield on average
earning assets
|
3.63
|
%
|
|
3.59
|
%
|
|
3.77
|
%
|
|
3.72
|
%
|
|
3.79
|
%
|
Yield on
securities
|
2.86
|
%
|
|
2.77
|
%
|
|
2.98
|
%
|
|
2.87
|
%
|
|
3.13
|
%
|
Yield on
loans
|
4.20
|
%
|
|
4.20
|
%
|
|
4.45
|
%
|
|
4.42
|
%
|
|
4.54
|
%
|
Cost of
funds
|
0.37
|
%
|
|
0.38
|
%
|
|
0.39
|
%
|
|
0.43
|
%
|
|
0.45
|
%
|
Efficiency ratio
(5)
|
73.30
|
%
|
|
74.88
|
%
|
|
68.35
|
%
|
|
77.53
|
%
|
|
68.82
|
%
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
Dividends
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
Book value
|
17.65
|
|
|
17.42
|
|
|
17.51
|
|
|
17.11
|
|
|
16.97
|
|
Tangible book value
(4)
|
17.13
|
|
|
16.90
|
|
|
16.99
|
|
|
16.58
|
|
|
16.43
|
|
SHARE PRICE
DATA
|
|
|
|
|
|
|
|
|
|
Closing
price
|
$
|
17.61
|
|
|
$
|
18.00
|
|
|
$
|
18.30
|
|
|
$
|
18.01
|
|
|
$
|
17.74
|
|
Diluted earnings
multiple (2)
|
13.76
|
|
|
14.06
|
|
|
13.45
|
|
|
16.99
|
|
|
14.78
|
|
Book value multiple
(3)
|
1.00
|
|
|
1.03
|
|
|
1.04
|
|
|
1.05
|
|
|
1.05
|
|
COMMON STOCK
DATA
|
|
|
|
|
|
|
|
|
|
Outstanding shares at
end of period
|
7,162,716
|
|
|
7,163,255
|
|
|
7,127,105
|
|
|
7,131,643
|
|
|
7,123,914
|
|
Weighted average
shares O/S , basic - QTD
|
7,162,930
|
|
|
7,145,929
|
|
|
7,127,910
|
|
|
7,127,164
|
|
|
7,108,450
|
|
Weighted average
shares O/S, diluted - QTD
|
7,181,183
|
|
|
7,167,165
|
|
|
7,148,702
|
|
|
7,146,140
|
|
|
7,134,262
|
|
Dividend payout
ratio
|
40.63
|
%
|
|
31.25
|
%
|
|
29.41
|
%
|
|
43.48
|
%
|
|
33.33
|
%
|
CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
Capital to assets -
common shareholders
|
10.02
|
%
|
|
10.05
|
%
|
|
9.86
|
%
|
|
9.98
|
%
|
|
10.01
|
%
|
Leverage
ratio
|
9.84
|
%
|
|
9.85
|
%
|
|
9.76
|
%
|
|
9.90
|
%
|
|
9.71
|
%
|
Common equity tier 1
ratio
|
16.31
|
%
|
|
16.35
|
%
|
|
16.49
|
%
|
|
N/A
|
|
N/A
|
Tier 1 risk based
capital ratio
|
16.99
|
%
|
|
17.04
|
%
|
|
17.20
|
%
|
|
15.70
|
%
|
|
16.04
|
%
|
Total risk based
capital ratio
|
18.25
|
%
|
|
18.28
|
%
|
|
18.45
|
%
|
|
16.95
|
%
|
|
17.30
|
%
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans
|
(0.002)%
|
|
|
(0.04)%
|
|
|
0.03
|
%
|
|
0.46
|
%
|
|
0.09
|
%
|
Total nonperforming
loans to total loans
|
2.71
|
%
|
|
2.63
|
%
|
|
1.83
|
%
|
|
1.89
|
%
|
|
1.63
|
%
|
Total nonperforming
assets to total assets
|
2.07
|
%
|
|
1.99
|
%
|
|
1.46
|
%
|
|
1.59
|
%
|
|
1.50
|
%
|
Nonaccrual loans
to:
|
|
|
|
|
|
|
|
|
|
Total
loans
|
1.13
|
%
|
|
1.04
|
%
|
|
1.26
|
%
|
|
1.32
|
%
|
|
1.01
|
%
|
Total
assets
|
0.70
|
%
|
|
0.64
|
%
|
|
0.76
|
%
|
|
0.81
|
%
|
|
0.61
|
%
|
Allowance for loan
losses to:
|
|
|
|
|
|
|
|
|
|
Total
loans
|
1.46
|
%
|
|
1.54
|
%
|
|
1.58
|
%
|
|
1.56
|
%
|
|
1.57
|
%
|
Nonperforming assets
|
43.73
|
%
|
|
48.03
|
%
|
|
65.23
|
%
|
|
60.59
|
%
|
|
63.18
|
%
|
Nonaccrual loans
|
129.15
|
%
|
|
148.53
|
%
|
|
124.92
|
%
|
|
118.52
|
%
|
|
155.80
|
%
|
NONPERFORMING
ASSETS
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90+
days and still accruing
|
$
|
224
|
|
|
$
|
173
|
|
|
$
|
74
|
|
|
$
|
30
|
|
|
$
|
30
|
|
Nonaccrual
loans
|
8,827
|
|
|
8,008
|
|
|
9,625
|
|
|
9,944
|
|
|
7,332
|
|
Restructured loans
(not in nonaccrual)
|
12,106
|
|
|
12,138
|
|
|
4,262
|
|
|
4,295
|
|
|
4,522
|
|
Other real estate
owned
|
3,871
|
|
|
3,402
|
|
|
3,402
|
|
|
4,051
|
|
|
5,064
|
|
Repossessed
assets
|
1,044
|
|
|
1,044
|
|
|
1,070
|
|
|
1,132
|
|
|
1,132
|
|
Total nonperforming
assets
|
$
|
26,072
|
|
|
$
|
24,765
|
|
|
$
|
18,433
|
|
|
$
|
19,452
|
|
|
$
|
18,080
|
|
(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 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 AND SUBSIDIARIES
Average Balances,
Income and Expenses, Yields and Rates
(Unaudited)
|
|
Three months ended
September 30,
|
|
2015
|
|
2014
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
320,684
|
|
|
$
|
2,009
|
|
|
2.49
|
%
|
|
$
|
282,860
|
|
|
$
|
1,847
|
|
|
2.59
|
%
|
Tax-exempt
(1)
|
51,252
|
|
|
672
|
|
|
5.20
|
%
|
|
54,410
|
|
|
811
|
|
|
5.91
|
%
|
Total
securities
|
$
|
371,936
|
|
|
$
|
2,681
|
|
|
2.86
|
%
|
|
$
|
337,270
|
|
|
$
|
2,658
|
|
|
3.13
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
777,039
|
|
|
$
|
8,222
|
|
|
4.20
|
%
|
|
$
|
730,006
|
|
|
$
|
8,351
|
|
|
4.54
|
%
|
Tax-exempt (1)
|
630
|
|
|
8
|
|
|
5.04
|
%
|
|
652
|
|
|
9
|
|
|
5.48
|
%
|
Total loans
(3)
|
$
|
777,669
|
|
|
$
|
8,230
|
|
|
4.20
|
%
|
|
$
|
730,658
|
|
|
$
|
8,360
|
|
|
4.54
|
%
|
Interest on deposits
with other banks and
federal funds sold
|
46,671
|
|
|
23
|
|
|
0.20
|
%
|
|
90,463
|
|
|
51
|
|
|
0.22
|
%
|
Total earning
assets
|
$
|
1,196,276
|
|
|
$
|
10,934
|
|
|
3.63
|
%
|
|
$
|
1,158,391
|
|
|
$
|
11,069
|
|
|
3.79
|
%
|
Less: allowance for
loan losses
|
(11,870)
|
|
|
|
|
|
|
(11,309)
|
|
|
|
|
|
Total nonearning
assets
|
77,155
|
|
|
|
|
|
|
74,477
|
|
|
|
|
|
Total
assets
|
$
|
1,261,561
|
|
|
|
|
|
|
$
|
1,221,559
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$
|
343,584
|
|
|
$
|
176
|
|
|
0.20
|
%
|
|
$
|
354,080
|
|
|
$
|
163
|
|
|
0.18
|
%
|
Regular
savings
|
120,104
|
|
|
56
|
|
|
0.18
|
%
|
|
113,607
|
|
|
53
|
|
|
0.19
|
%
|
Money market
savings
|
66,144
|
|
|
32
|
|
|
0.19
|
%
|
|
72,034
|
|
|
34
|
|
|
0.19
|
%
|
Time
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
$100,000 and
over
|
148,998
|
|
|
322
|
|
|
0.86
|
%
|
|
121,274
|
|
|
297
|
|
|
0.97
|
%
|
Under
$100,000
|
103,897
|
|
|
291
|
|
|
1.11
|
%
|
|
129,578
|
|
|
408
|
|
|
1.25
|
%
|
Total
interest-bearing deposits
|
$
|
782,727
|
|
|
$
|
877
|
|
|
0.45
|
%
|
|
$
|
790,573
|
|
|
$
|
955
|
|
|
0.48
|
%
|
Securities sold under
agreements to
repurchase
|
28,859
|
|
|
2
|
|
|
0.03
|
%
|
|
39,142
|
|
|
81
|
|
|
0.82
|
%
|
FHLB borrowings and
other debt
|
68,416
|
|
|
165
|
|
|
0.96
|
%
|
|
60,372
|
|
|
209
|
|
|
1.37
|
%
|
Total
interest-bearing liabilities
|
$
|
880,002
|
|
|
$
|
1,044
|
|
|
0.47
|
%
|
|
$
|
890,087
|
|
|
$
|
1,245
|
|
|
0.55
|
%
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
242,983
|
|
|
|
|
|
|
200,768
|
|
|
|
|
|
Other
liabilities
|
12,815
|
|
|
|
|
|
|
10,539
|
|
|
|
|
|
Total
liabilities
|
$
|
1,135,800
|
|
|
|
|
|
|
$
|
1,101,394
|
|
|
|
|
|
Non-controlling
interest
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Shareholders'
equity
|
125,761
|
|
|
|
|
|
|
120,165
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,261,561
|
|
|
|
|
|
|
$
|
1,221,559
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
9,890
|
|
|
|
|
|
|
$
|
9,824
|
|
|
|
Interest rate
spread
|
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.24
|
%
|
Cost of
Funds
|
|
|
|
|
0.37
|
%
|
|
|
|
|
|
0.45
|
%
|
Interest expense as a
percent of average
earning assets
|
|
|
|
|
0.35
|
%
|
|
|
|
|
|
0.43
|
%
|
Net interest
margin
|
|
|
|
|
3.28
|
%
|
|
|
|
|
|
3.36
|
%
|
|
(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 AND SUBSIDIARIES
Average Balances,
Income and Expenses, Yields and Rates
(Unaudited)
|
|
Nine months ended
September 30,
|
|
2015
|
|
2014
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
Average
Balance
|
|
Income/
Expense
|
|
Yield/
Rate (2)
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
315,507
|
|
|
$
|
5,832
|
|
|
2.47
|
%
|
|
$
|
278,650
|
|
|
$
|
5,403
|
|
|
2.59
|
%
|
Tax-exempt
(1)
|
51,680
|
|
|
2,051
|
|
|
5.31
|
%
|
|
57,556
|
|
|
2,509
|
|
|
5.83
|
%
|
Total
securities
|
$
|
367,187
|
|
|
$
|
7,883
|
|
|
2.87
|
%
|
|
$
|
336,206
|
|
|
$
|
7,912
|
|
|
3.15
|
%
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
$
|
764,337
|
|
|
$
|
24,468
|
|
|
4.28
|
%
|
|
$
|
743,703
|
|
|
$
|
25,639
|
|
|
4.61
|
%
|
Tax-exempt (1)
|
620
|
|
|
25
|
|
|
5.39
|
%
|
|
652
|
|
|
26
|
|
|
5.33
|
%
|
Total loans
(3)
|
$
|
764,957
|
|
|
$
|
24,493
|
|
|
4.28
|
%
|
|
$
|
744,355
|
|
|
$
|
25,665
|
|
|
4.61
|
%
|
Interest on deposits
with other banks and
federal funds sold
|
52,858
|
|
|
84
|
|
|
0.21
|
%
|
|
73,759
|
|
|
123
|
|
|
0.22
|
%
|
Total earning
assets
|
$
|
1,185,002
|
|
|
$
|
32,460
|
|
|
3.66
|
%
|
|
$
|
1,154,320
|
|
|
$
|
33,700
|
|
|
3.90
|
%
|
Less: allowance for
loan losses
|
(11,894)
|
|
|
|
|
|
|
(12,497)
|
|
|
|
|
|
Total nonearning
assets
|
76,703
|
|
|
|
|
|
|
78,292
|
|
|
|
|
|
Total
assets
|
$
|
1,249,811
|
|
|
|
|
|
|
$
|
1,220,115
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Checking
|
$
|
342,184
|
|
|
$
|
517
|
|
|
0.20
|
%
|
|
$
|
342,551
|
|
|
$
|
485
|
|
|
0.19
|
%
|
Regular
savings
|
117,981
|
|
|
164
|
|
|
0.19
|
%
|
|
113,378
|
|
|
158
|
|
|
0.19
|
%
|
Money market
savings
|
67,314
|
|
|
95
|
|
|
0.19
|
%
|
|
73,910
|
|
|
105
|
|
|
0.19
|
%
|
Time
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
$100,000 and
over
|
136,980
|
|
|
900
|
|
|
0.88
|
%
|
|
125,036
|
|
|
937
|
|
|
1.00
|
%
|
Under
$100,000
|
107,181
|
|
|
904
|
|
|
1.13
|
%
|
|
130,776
|
|
|
1,267
|
|
|
1.30
|
%
|
Total
interest-bearing deposits
|
$
|
771,640
|
|
|
$
|
2,580
|
|
|
0.45
|
%
|
|
$
|
785,651
|
|
|
$
|
2,952
|
|
|
0.50
|
%
|
Securities sold under
agreements to
repurchase
|
30,578
|
|
|
64
|
|
|
0.28
|
%
|
|
36,682
|
|
|
243
|
|
|
0.88
|
%
|
FHLB borrowings and
other debt
|
69,752
|
|
|
507
|
|
|
0.97
|
%
|
|
76,803
|
|
|
876
|
|
|
1.52
|
%
|
Federal funds
purchased
|
2
|
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
—
|
|
|
—
|
%
|
Total
interest-bearing liabilities
|
$
|
871,972
|
|
|
$
|
3,151
|
|
|
0.48
|
%
|
|
$
|
899,137
|
|
|
$
|
4,071
|
|
|
0.61
|
%
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
239,791
|
|
|
|
|
|
|
193,501
|
|
|
|
|
|
Other
liabilities
|
13,126
|
|
|
|
|
|
|
9,947
|
|
|
|
|
|
Total
liabilities
|
$
|
1,124,889
|
|
|
|
|
|
|
$
|
1,102,585
|
|
|
|
|
|
Non-controlling
interest
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Shareholders'
equity
|
124,922
|
|
|
|
|
|
|
117,530
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
1,249,811
|
|
|
|
|
|
|
$
|
1,220,115
|
|
|
|
|
|
Net interest
income
|
|
|
$
|
29,309
|
|
|
|
|
|
|
$
|
29,629
|
|
|
|
Interest rate
spread
|
|
|
|
|
3.18
|
%
|
|
|
|
|
|
3.29
|
%
|
Cost of
Funds
|
|
|
|
|
0.38
|
%
|
|
|
|
|
|
0.50
|
%
|
Interest expense as a
percent of average
earning assets
|
|
|
|
|
0.36
|
%
|
|
|
|
|
|
0.47
|
%
|
Net interest
margin
|
|
|
|
|
3.31
|
%
|
|
|
|
|
|
3.43
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/middleburg-financial-corporation-announces-third-quarter-2015-results-300169485.html
SOURCE Middleburg Financial Corporation