Virginia (State or other jurisdiction of incorporation) | 0-24159 (Commission File Number) | 54-1696103 (I.R.S. Employer Identification No.) | |
111 West Washington Street Middleburg, Virginia (Address of principal executive offices) | 20117 (Zip Code) |
Exhibit No. | Description |
99.1 | Press release dated January 31, 2014. |
MIDDLEBURG FINANCIAL CORPORATION | ||||
(Registrant) | ||||
Date: January 31, 2014 | By: | /s/ Gary R. Shook | ||
Gary R. Shook | ||||
President and Chief Executive Officer | ||||
Exhibit No. | Description |
99.1 | Press release dated January 31, 2014. |
• | Net income of $1.49 million or $0.21 per diluted share for the quarter ended December 31, 2013, an increase of 4.79% compared to the fourth quarter of 2012 and $6.52 million or $0.92 per diluted share for 2013, an increase of 0.54% over the previous year; |
• | Net interest margin of 3.43%, compared to 3.33% for the previous quarter and 3.42% for the fourth quarter of 2012; |
• | Total revenue decreased 2.85% to $15.01 million for the fourth quarter 2013 compared to the previous quarter and decreased 14.37% compared to the fourth quarter of 2012; |
• | Total assets were $1.23 billion as of December 31, 2013, relatively unchanged from December 31, 2012; |
• | Total deposits were $982.40 million as of December 31, 2013, an increase of 0.05% compared to December 31, 2012; |
• | Loans held-for-investment were $728.48 million as of December 31, 2013, an increase of 1.73% compared to September 30, 2013 and an increase of 2.68% compared to December 31, 2012; |
• | Southern Trust Mortgage closed $138.49 million in mortgage loans during the fourth quarter 2013 compared to $249.20 million in mortgage loans closed during the fourth quarter 2012, a decrease of 44.43%; |
• | Asset quality continues to improve with a ratio of non-performing assets to total assets of 2.33% at December 31, 2013 compared to 2.51% at September 30, 2013 and 3.05% at December 31, 2012; |
• | Capital ratios continue to be strong: Tangible Common Equity Ratio of 8.76%, Total Risk-Based Capital Ratio of 15.88%, Tier 1 Risk-Based Capital Ratio of 14.62%, and a Tier 1 Leverage Ratio of 9.42% at December 31, 2013. |
Non-Interest Income | ||||||||||||
(in thousands) | ||||||||||||
For the three months ended | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Service charges on deposit accounts | $ | 593 | $ | 590 | $ | 572 | ||||||
Trust service income | 1,033 | 963 | 923 | |||||||||
Gains on loans held for sale | 3,114 | 4,162 | 5,926 | |||||||||
Net gains (losses) on securities available for sale | 22 | 23 | (7 | ) | ||||||||
Commissions on investment sales | 107 | 159 | 129 | |||||||||
Fees on mortgages held for sale | — | 28 | 43 | |||||||||
Bank owned life insurance | 104 | 125 | 96 | |||||||||
Other operating income | 430 | 78 | 299 | |||||||||
Total non-interest income | $ | 5,403 | $ | 6,128 | $ | 7,981 |
Non-Interest Expense | ||||||||||||
(in thousands) | ||||||||||||
For the three months ended | ||||||||||||
December 31, | September | December 31, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Salaries and employee benefits | $ | 7,385 | $ | 7,750 | $ | 8,278 | ||||||
Net occupancy and equipment expense | 1,857 | 1,820 | 1,785 | |||||||||
Advertising | 436 | 318 | 635 | |||||||||
Computer operations | 485 | 456 | 471 | |||||||||
Other real estate owned | 79 | 416 | 55 | |||||||||
Other taxes | 186 | 186 | 202 | |||||||||
Federal deposit insurance expense | 139 | 149 | 269 | |||||||||
Other operating expenses | 2,635 | 2,210 | 2,103 | |||||||||
Total non-interest expense | $ | 13,202 | $ | 13,305 | $ | 13,798 |
Risk-Based Capital Ratios | |||||
December 31, 2013 | |||||
(1) | |||||
Regulatory Minimum Requirement | MFC Ratios | MFC Excess over Minimum | |||
Tier 1 Leverage Ratio | 4.0% | 9.42% | 5.42% | ||
Tier 1 Risk-Based Capital Ratio | 4.0% | 14.62% | 10.62% | ||
Total Risk-Based Capital Ratio | 8.0% | 15.88% | 7.88% | ||
(1) Under the regulatory framework for prompt corrective action. |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||
Consolidated Balance Sheets | |||||||||||
(In thousands, except for share and per share data) | |||||||||||
(Unaudited) | (Unaudited) | (Audited) | |||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 6,648 | $ | 9,417 | $ | 7,139 | |||||
Interest-bearing deposits with other institutions | 60,695 | 53,228 | 47,276 | ||||||||
Total cash and cash equivalents | 67,343 | 62,645 | 54,415 | ||||||||
Securities available for sale, at fair value | 328,423 | 328,378 | 319,457 | ||||||||
Loans held for sale | 33,175 | 41,855 | 82,114 | ||||||||
Restricted securities, at cost | 6,780 | 7,005 | 6,990 | ||||||||
Loans receivable, net of allowance for loan losses of $13,320, $13,382 and $14,311 respectively | 715,160 | 702,724 | 695,166 | ||||||||
Premises and equipment, net | 20,017 | 20,465 | 20,587 | ||||||||
Goodwill and identified intangibles | 5,846 | 5,889 | 6,017 | ||||||||
Other real estate owned, net of valuation allowances of $398, $603 and $1,707, respectively | 3,424 | 4,530 | 9,929 | ||||||||
Prepaid federal deposit insurance | — | — | 3,015 | ||||||||
Bank owned life insurance | 21,955 | 16,851 | 16,484 | ||||||||
Accrued interest receivable and other assets | 26,130 | 24,985 | 22,607 | ||||||||
TOTAL ASSETS | $ | 1,228,253 | $ | 1,215,327 | $ | 1,236,781 | |||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Non-interest bearing demand deposits | $ | 185,577 | $ | 190,680 | $ | 167,137 | |||||
Savings and interest bearing demand deposits | 528,879 | 495,348 | 522,740 | ||||||||
Time deposits | 267,940 | 272,538 | 292,023 | ||||||||
Total deposits | 982,396 | 958,566 | 981,900 | ||||||||
Securities sold under agreements to repurchase | 34,539 | 35,005 | 33,975 | ||||||||
Short-term borrowings | — | 5,451 | 11,873 | ||||||||
FHLB borrowings | 80,000 | 85,000 | 77,912 | ||||||||
Subordinated notes | 5,155 | 5,155 | 5,155 | ||||||||
Accrued interest payable and other liabilities | 10,723 | 10,967 | 8,844 | ||||||||
Commitments and contingent liabilities | — | — | — | ||||||||
TOTAL LIABILITIES | 1,112,813 | 1,100,144 | 1,119,659 | ||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common stock ($2.50 par value; 20,000,000 shares authorized, 7,080,591, 7,089,091 and 7,052,554 issued and outstanding, respectively) | 17,403 | 17,403 | 17,357 | ||||||||
Capital surplus | 44,251 | 44,139 | 43,869 | ||||||||
Retained earnings | 51,056 | 50,063 | 46,235 | ||||||||
Accumulated other comprehensive income | 232 | 833 | 6,467 | ||||||||
Total Middleburg Financial Corporation shareholders' equity | 112,942 | 112,438 | 113,928 | ||||||||
Non-controlling interest in consolidated subsidiary | 2,498 | 2,745 | 3,194 | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 115,440 | 115,183 | 117,122 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,228,253 | $ | 1,215,327 | $ | 1,236,781 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(In thousands, except for per share data) | |||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||
Interest and fees on loans | $ | 8,744 | $ | 9,330 | $ | 35,248 | $ | 37,895 | |||||||
Interest and dividends on securities available for sale | |||||||||||||||
Taxable | 1,638 | 1,432 | 6,105 | 6,408 | |||||||||||
Tax-exempt | 638 | 604 | 2,555 | 2,403 | |||||||||||
Dividends | 63 | 58 | 232 | 193 | |||||||||||
Interest on deposits in banks and federal funds sold | 31 | 36 | 132 | 124 | |||||||||||
Total interest and dividend income | 11,114 | 11,460 | 44,272 | 47,023 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Interest on deposits | 1,094 | 1,449 | 4,911 | 6,916 | |||||||||||
Interest on securities sold under agreements to repurchase | 82 | 82 | 325 | 332 | |||||||||||
Interest on short-term borrowings | 17 | 81 | 123 | 392 | |||||||||||
Interest on FHLB borrowings and other debt | 311 | 295 | 1,208 | 1,184 | |||||||||||
Total interest expense | 1,504 | 1,907 | 6,567 | 8,824 | |||||||||||
NET INTEREST INCOME | 9,610 | 9,553 | 37,705 | 38,199 | |||||||||||
Provision for loan losses | 110 | 1,281 | 109 | 3,438 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,500 | 8,272 | 37,596 | 34,761 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 593 | 572 | 2,291 | 2,197 | |||||||||||
Trust services income | 1,033 | 923 | 3,970 | 3,751 | |||||||||||
Gains on loans held for sale | 3,114 | 5,926 | 15,652 | 21,014 | |||||||||||
Gains (losses) on securities available for sale, net | 22 | (7 | ) | 418 | 445 | ||||||||||
Total other-than-temporary impairment losses | — | — | — | (46 | ) | ||||||||||
Portion of loss recognized in other comprehensive income | — | — | — | 46 | |||||||||||
Net impairment losses | — | — | — | — | |||||||||||
Commissions on investment sales | 107 | 129 | 470 | 518 | |||||||||||
Fees on mortgages held for sale | — | 43 | 103 | 186 | |||||||||||
Bank owned life insurance | 104 | 96 | 472 | 459 | |||||||||||
Other operating income | 430 | 299 | 1,163 | 884 | |||||||||||
Total non-interest income | 5,403 | 7,981 | 24,539 | 29,454 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 7,385 | 8,278 | 30,627 | 30,417 | |||||||||||
Net occupancy and equipment expense | 1,857 | 1,785 | 7,269 | 7,050 | |||||||||||
Advertising | 436 | 635 | 1,457 | 2,034 | |||||||||||
Computer operations | 485 | 471 | 1,860 | 1,572 | |||||||||||
Other real estate owned | 79 | 55 | 1,455 | 2,721 | |||||||||||
Other taxes | 186 | 202 | 751 | 813 | |||||||||||
Federal deposit insurance expense | 139 | 269 | 822 | 1,050 | |||||||||||
Other operating expenses | 2,635 | 2,103 | 9,300 | 8,602 | |||||||||||
Total non-interest expense | 13,202 | 13,798 | 53,541 | 54,259 | |||||||||||
Income before income taxes | 1,701 | 2,455 | 8,594 | 9,956 | |||||||||||
Income tax expense | 436 | 387 | 2,064 | 1,966 | |||||||||||
NET INCOME | 1,265 | 2,068 | 6,530 | 7,990 | |||||||||||
Net (income) loss attributable to non-controlling interest | 224 | (647 | ) | (9 | ) | (1,504 | ) | ||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,489 | $ | 1,421 | $ | 6,521 | $ | 6,486 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.21 | $ | 0.20 | $ | 0.92 | $ | 0.92 | |||||||
Diluted | $ | 0.21 | $ | 0.20 | $ | 0.92 | $ | 0.92 | |||||||
Dividends per common share | $ | 0.07 | $ | 0.05 | $ | 0.24 | $ | 0.20 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||||||
Quarterly Summary Statements of Income | |||||||||||||||||||
(In thousands, except for per share data) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Interest and fees on loans | $ | 8,744 | $ | 8,744 | $ | 8,795 | $ | 8,965 | $ | 9,330 | |||||||||
Interest and dividends on securities available for sale | |||||||||||||||||||
Taxable | 1,638 | 1,468 | 1,468 | 1,531 | 1,432 | ||||||||||||||
Tax-exempt | 638 | 640 | 646 | 630 | 604 | ||||||||||||||
Dividends | 63 | 59 | 54 | 56 | 58 | ||||||||||||||
Interest on deposits in banks and federal funds sold | 31 | 43 | 29 | 30 | 36 | ||||||||||||||
Total interest and dividend income | 11,114 | 10,954 | 10,992 | 11,212 | 11,460 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Interest on deposits | 1,094 | 1,190 | 1,253 | 1,373 | 1,449 | ||||||||||||||
Interest on securities sold under agreements to repurchase | 82 | 82 | 81 | 80 | 82 | ||||||||||||||
Interest on short-term borrowings | 17 | 59 | 18 | 29 | 81 | ||||||||||||||
Interest on FHLB borrowings and other debt | 311 | 303 | 299 | 295 | 295 | ||||||||||||||
Total interest expense | 1,504 | 1,634 | 1,651 | 1,777 | 1,907 | ||||||||||||||
NET INTEREST INCOME | 9,610 | 9,320 | 9,341 | 9,435 | 9,553 | ||||||||||||||
Provision for (recovery of) loan losses | 110 | 3 | 184 | (188 | ) | 1,281 | |||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES | 9,500 | 9,317 | 9,157 | 9,623 | 8,272 | ||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 593 | 590 | 574 | 534 | 572 | ||||||||||||||
Trust services income | 1,033 | 963 | 1,014 | 960 | 923 | ||||||||||||||
Gains on loans held for sale | 3,114 | 4,162 | 4,483 | 3,893 | 5,926 | ||||||||||||||
Gains (losses) on securities available for sale, net | 22 | 23 | 326 | 47 | (7 | ) | |||||||||||||
Commissions on investment sales | 107 | 159 | 110 | 94 | 129 | ||||||||||||||
Fees on mortgages held for sale | — | 28 | 58 | 17 | 43 | ||||||||||||||
Bank owned life insurance | 104 | 125 | 123 | 120 | 96 | ||||||||||||||
Other operating income | 430 | 78 | 392 | 263 | 299 | ||||||||||||||
Total non-interest income | 5,403 | 6,128 | 7,080 | 5,928 | 7,981 | ||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||
Salaries and employee benefits | 7,385 | 7,750 | 7,692 | 7,799 | 8,278 | ||||||||||||||
Net occupancy and equipment expense | 1,857 | 1,820 | 1,787 | 1,805 | 1,785 | ||||||||||||||
Advertising | 436 | 318 | 435 | 268 | 635 | ||||||||||||||
Computer operations | 485 | 456 | 458 | 461 | 471 | ||||||||||||||
Other real estate owned | 79 | 416 | 142 | 820 | 55 | ||||||||||||||
Other taxes | 186 | 186 | 187 | 192 | 202 | ||||||||||||||
Federal deposit insurance expense | 139 | 149 | 270 | 265 | 269 | ||||||||||||||
Other operating expenses | 2,635 | 2,210 | 2,137 | 2,318 | 2,103 | ||||||||||||||
Total non-interest expense | 13,202 | 13,305 | 13,108 | 13,928 | 13,798 | ||||||||||||||
Income before income taxes | 1,701 | 2,140 | 3,129 | 1,623 | 2,455 | ||||||||||||||
Income tax expense | 436 | 491 | 774 | 363 | 387 | ||||||||||||||
NET INCOME | 1,265 | 1,649 | 2,355 | 1,260 | 2,068 | ||||||||||||||
Net (income) loss attributable to non-controlling interest | 224 | (38 | ) | (262 | ) | 67 | (647 | ) | |||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,489 | $ | 1,611 | $ | 2,093 | $ | 1,327 | $ | 1,421 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||||||
Key Statistics | |||||||||||||||||||
(Unaudited, Dollars in thousands, except for per share data) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||
Net Income | $ | 1,489 | $ | 1,611 | $ | 2,093 | $ | 1,327 | $ | 1,421 | |||||||||
Earnings per share, basic | $ | 0.21 | $ | 0.23 | $ | 0.30 | $ | 0.19 | $ | 0.20 | |||||||||
Earnings per share, diluted | $ | 0.21 | $ | 0.23 | $ | 0.29 | $ | 0.19 | $ | 0.20 | |||||||||
Dividend per share | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||||||||
Return on average total assets - QTD | 0.48 | % | 0.52 | % | 0.69 | % | 0.44 | % | 0.46 | % | |||||||||
Return on average total equity - QTD | 5.20 | % | 5.71 | % | 7.25 | % | 4.71 | % | 4.96 | % | |||||||||
Dividend payout ratio | 33.32 | % | 30.43 | % | 16.88 | % | 26.57 | % | 24.82 | % | |||||||||
Non-interest revenue to total revenue (1) | 35.89 | % | 39.58 | % | 41.96 | % | 38.40 | % | 45.54 | % | |||||||||
Net interest margin (2) | 3.43 | % | 3.33 | % | 3.40 | % | 3.45 | % | 3.42 | % | |||||||||
Yield on average earning assets | 3.94 | % | 3.89 | % | 3.97 | % | 4.08 | % | 4.08 | % | |||||||||
Cost of average interest-bearing liabilities | 0.66 | % | 0.71 | % | 0.72 | % | 0.78 | % | 0.82 | % | |||||||||
Net interest spread | 3.28 | % | 3.18 | % | 3.25 | % | 3.30 | % | 3.26 | % | |||||||||
Non-interest income to average assets (3) | 1.76 | % | 2.00 | % | 2.23 | % | 1.93 | % | 2.62 | % | |||||||||
Non-interest expense to average assets (3) | 4.33 | % | 4.33 | % | 4.34 | % | 4.57 | % | 4.53 | % | |||||||||
Efficiency ratio - QTD (Tax Equivalent) (4) | 85.06 | % | 81.19 | % | 78.35 | % | 80.96 | % | 76.51 | % |
(1) | Excludes securities gains and losses. |
(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. |
(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 for per share data) | |||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | |||||||||||||||
BALANCE SHEET RATIOS | |||||||||||||||||||
Loans to deposits (including HFS) | 77.53 | % | 79.07 | % | 80.29 | % | 79.01 | % | 80.62 | % | |||||||||
Portfolio loans to deposits | 74.15 | % | 74.71 | % | 73.50 | % | 73.97 | % | 72.26 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 126.87 | % | 126.23 | % | 125.09 | % | 123.60 | % | 124.17 | % | |||||||||
PER SHARE DATA | |||||||||||||||||||
Dividends | $ | 0.07 | $ | 0.07 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||||||||
Book value (MFC Shareholders) | 15.95 | 15.86 | 15.93 | 16.28 | 16.15 | ||||||||||||||
Tangible book value (3) | 15.13 | 15.03 | 15.09 | 15.41 | 15.30 | ||||||||||||||
SHARE PRICE DATA | |||||||||||||||||||
Closing price | $ | 18.04 | $ | 19.28 | $ | 19.10 | $ | 19.41 | $ | 17.66 | |||||||||
Diluted earnings multiple (1) | 19.61 | 20.96 | 16.47 | 25.54 | 22.08 | ||||||||||||||
Book value multiple (2) | 1.11 | 1.21 | 1.20 | 1.19 | 1.09 | ||||||||||||||
COMMON STOCK DATA | |||||||||||||||||||
Outstanding shares at end of period | 7,080,591 | 7,089,091 | 7,089,598 | 7,051,587 | 7,052,554 | ||||||||||||||
Weighted average shares O/S , basic - QTD | 7,096,260 | 7,080,244 | 7,072,587 | 7,051,009 | 7,052,554 | ||||||||||||||
Weighted average shares O/S, diluted - QTD | 7,130,272 | 7,118,208 | 7,102,670 | 7,082,354 | 7,069,603 | ||||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
Capital to assets - common shareholders | 9.20 | % | 9.25 | % | 9.28 | % | 9.46 | % | 9.21 | % | |||||||||
Capital to assets - w/non-controlling interest | 9.40 | % | 9.48 | % | 9.50 | % | 9.70 | % | 9.47 | % | |||||||||
Tangible common equity ratio (4) | 8.76 | % | 8.81 | % | 8.83 | % | 9.01 | % | 8.77 | % | |||||||||
Leverage ratio | 9.42 | % | 9.36 | % | 9.32 | % | 9.11 | % | 9.10 | % | |||||||||
Tier 1 risk based capital ratio | 14.62 | % | 14.58 | % | 14.15 | % | 14.35 | % | 14.09 | % | |||||||||
Total risk based capital ratio | 15.88 | % | 15.83 | % | 15.41 | % | 15.60 | % | 15.35 | % | |||||||||
CREDIT QUALITY | |||||||||||||||||||
Net charge-offs to average total loans | 0.02 | % | 0.03 | % | 0.01 | % | 0.08 | % | 0.12 | % | |||||||||
Total non-performing loans to total portfolio loans | 3.46 | % | 3.63 | % | 3.76 | % | 3.59 | % | 3.92 | % | |||||||||
Total non-performing assets to total assets | 2.33 | % | 2.51 | % | 2.80 | % | 2.77 | % | 3.05 | % | |||||||||
Non-accrual loans to: | |||||||||||||||||||
total portfolio loans | 2.71 | % | 2.87 | % | 2.88 | % | 2.80 | % | 3.05 | % | |||||||||
total assets | 1.61 | % | 1.69 | % | 1.67 | % | 1.65 | % | 1.75 | % | |||||||||
Allowance for loan losses to: | |||||||||||||||||||
total portfolio loans | 1.83 | % | 1.87 | % | 1.93 | % | 1.89 | % | 2.02 | % | |||||||||
non-performing assets | 46.48 | % | 43.86 | % | 39.88 | % | 40.22 | % | 37.89 | % | |||||||||
non-accrual loans | 67.44 | % | 65.20 | % | 66.82 | % | 67.48 | % | 66.06 | % | |||||||||
NON-PERFORMING ASSETS | |||||||||||||||||||
Loans delinquent 90+ days and still accruing | $ | 808 | $ | 636 | $ | 829 | $ | 812 | $ | 1,044 | |||||||||
Non-accrual loans | 19,752 | 20,525 | 20,376 | 20,019 | 21,664 | ||||||||||||||
Restructured loans (not in non-accrual) | 4,674 | 4,820 | 5,366 | 4,854 | 5,132 | ||||||||||||||
OREO and repossessed assets | 3,424 | 4,530 | 7,570 | 7,904 | 9,929 | ||||||||||||||
Total non-performing assets | $ | 28,658 | $ | 30,511 | $ | 34,141 | $ | 33,589 | $ | 37,769 | |||||||||
ALLOWANCE FOR LOAN LOSS SUMMARY | |||||||||||||||||||
Balance at the beginning of the period | $ | 13,382 | $ | 13,616 | $ | 13,508 | $ | 14,311 | $ | 13,941 | |||||||||
Loans charged off - QTD | 241 | 291 | 128 | 721 | 1,060 | ||||||||||||||
Recoveries - QTD | (69 | ) | (54 | ) | (52 | ) | (106 | ) | (149 | ) | |||||||||
Net charge-off loans - QTD | 172 | 237 | 76 | 615 | 911 | ||||||||||||||
Provision for (recovery of) loan losses | 110 | 3 | 184 | (188 | ) | 1,281 | |||||||||||||
Balance at the end of the period | $ | 13,320 | $ | 13,382 | $ | 13,616 | $ | 13,508 | $ | 14,311 |
(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 | |||||||||||||||||||||
For the Three Months Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate (2) | Average Balance | Income/Expense | Yield/Rate (2) | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 275,208 | $ | 1,701 | 2.45 | % | $ | 260,039 | $ | 1,490 | 2.28 | % | |||||||||
Tax-exempt (1) | 64,315 | 966 | 5.96 | % | 63,839 | 915 | 5.70 | % | |||||||||||||
Total securities | $ | 339,523 | $ | 2,667 | 3.12 | % | $ | 323,878 | $ | 2,405 | 2.95 | % | |||||||||
Loans: | |||||||||||||||||||||
Taxable | $ | 759,513 | $ | 8,738 | 4.56 | % | $ | 767,248 | $ | 9,325 | 4.84 | % | |||||||||
Tax-exempt (1) | 655 | 9 | 5.45 | % | 537 | 8 | 5.93 | % | |||||||||||||
Total loans (3) | $ | 760,168 | $ | 8,747 | 4.57 | % | $ | 767,785 | $ | 9,333 | 4.84 | % | |||||||||
Interest-bearing deposits with other institutions | 51,671 | 31 | 0.24 | % | 56,262 | 36 | 0.25 | % | |||||||||||||
Total earning assets | $ | 1,151,362 | $ | 11,445 | 3.94 | % | $ | 1,147,925 | $ | 11,774 | 4.08 | % | |||||||||
Less: allowance for loan losses | (13,267 | ) | (14,112 | ) | |||||||||||||||||
Total non-earning assets | 81,162 | 84,132 | |||||||||||||||||||
Total assets | $ | 1,219,257 | $ | 1,217,945 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 329,590 | $ | 195 | 0.23 | % | $ | 335,174 | $ | 255 | 0.30 | % | |||||||||
Regular savings | 110,443 | 58 | 0.21 | % | 105,625 | 60 | 0.23 | % | |||||||||||||
Money market savings | 76,197 | 40 | 0.21 | % | 72,503 | 48 | 0.26 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 132,994 | 345 | 1.03 | % | 147,214 | 533 | 1.44 | % | |||||||||||||
Under $100,000 | 134,773 | 456 | 1.34 | % | 142,305 | 553 | 1.55 | % | |||||||||||||
Total interest-bearing deposits | $ | 783,997 | $ | 1,094 | 0.55 | % | $ | 802,821 | $ | 1,449 | 0.72 | % | |||||||||
Short-term borrowings | 2,022 | 16 | 3.14 | % | 7,326 | 81 | 4.40 | % | |||||||||||||
Securities sold under agreements to repurchase | 36,227 | 82 | 0.90 | % | 34,563 | 82 | 0.94 | % | |||||||||||||
FHLB borrowings and subordinated debt | 85,264 | 312 | 1.45 | % | 79,752 | 295 | 1.47 | % | |||||||||||||
Total interest-bearing liabilities | $ | 907,510 | $ | 1,504 | 0.66 | % | $ | 924,462 | $ | 1,907 | 0.82 | % | |||||||||
Non-interest bearing liabilities | |||||||||||||||||||||
Demand deposits | 185,409 | 169,313 | |||||||||||||||||||
Other liabilities | 10,023 | 6,341 | |||||||||||||||||||
Total liabilities | $ | 1,102,942 | $ | 1,100,116 | |||||||||||||||||
Non-controlling interest | 2,649 | 3,792 | |||||||||||||||||||
Shareholders' equity | 113,666 | 114,037 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,219,257 | $ | 1,217,945 | |||||||||||||||||
Net interest income (1) | $ | 9,941 | $ | 9,867 | |||||||||||||||||
Interest rate spread | 3.28 | % | 3.26 | % | |||||||||||||||||
Cost of funds | 0.55 | % | 0.69 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.52 | % | 0.66 | % | |||||||||||||||||
Net interest margin | 3.43 | % | 3.42 | % |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||||||||
Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate (2) | Average Balance | Income/Expense | Yield/Rate (2) | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 268,954 | $ | 6,337 | 2.36 | % | $ | 262,991 | $ | 6,601 | 2.51 | % | |||||||||
Tax-exempt (1) | 66,396 | 3,870 | 5.83 | % | 62,363 | 3,642 | 5.84 | % | |||||||||||||
Total securities | $ | 335,350 | $ | 10,207 | 3.04 | % | $ | 325,354 | $ | 10,243 | 3.15 | % | |||||||||
Loans: | |||||||||||||||||||||
Taxable | $ | 755,913 | $ | 35,224 | 4.66 | % | $ | 755,790 | $ | 37,890 | 5.01 | % | |||||||||
Tax-exempt (1) | 679 | 37 | 5.45 | % | 135 | 8 | 5.93 | % | |||||||||||||
Total loans (3) | $ | 756,592 | $ | 35,261 | 4.66 | % | $ | 755,925 | $ | 37,898 | 5.01 | % | |||||||||
Interest-bearing deposits with other institutions | 56,436 | 132 | 0.23 | % | 54,237 | 124 | 0.23 | % | |||||||||||||
Total earning assets | $ | 1,148,378 | $ | 45,600 | 3.97 | % | $ | 1,135,516 | $ | 48,265 | 4.25 | % | |||||||||
Less: allowance for loan losses | (13,643 | ) | (14,830 | ) | |||||||||||||||||
Total non-earning assets | 80,856 | 84,279 | |||||||||||||||||||
Total assets | $ | 1,215,591 | $ | 1,204,965 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 324,171 | $ | 852 | 0.26 | % | $ | 322,715 | $ | 1,271 | 0.39 | % | |||||||||
Regular savings | 110,210 | 243 | 0.22 | % | 105,768 | 350 | 0.33 | % | |||||||||||||
Money market savings | 75,899 | 171 | 0.23 | % | 64,517 | 204 | 0.32 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 139,018 | 1,671 | 1.20 | % | 143,687 | 2,200 | 1.53 | % | |||||||||||||
Under $100,000 | 140,230 | 1,974 | 1.41 | % | 165,703 | 2,891 | 1.74 | % | |||||||||||||
Total interest-bearing deposits | $ | 789,528 | $ | 4,911 | 0.62 | % | $ | 802,390 | $ | 6,916 | 0.86 | % | |||||||||
Short-term borrowings | 3,565 | 123 | 3.45 | % | 8,725 | 392 | 4.49 | % | |||||||||||||
Securities sold under agreements to repurchase | 35,536 | 325 | 0.91 | % | 34,177 | 332 | 0.97 | % | |||||||||||||
FHLB borrowings and subordinated debt | 86,767 | 1,208 | 1.39 | % | 83,655 | 1,184 | 1.42 | % | |||||||||||||
Total interest-bearing liabilities | $ | 915,396 | $ | 6,567 | 0.72 | % | $ | 928,947 | $ | 8,824 | 0.95 | % | |||||||||
Non-interest bearing liabilities | |||||||||||||||||||||
Demand deposits | 175,942 | 156,057 | |||||||||||||||||||
Other liabilities | 7,357 | 6,503 | |||||||||||||||||||
Total liabilities | $ | 1,098,695 | $ | 1,091,507 | |||||||||||||||||
Non-controlling interest | 2,824 | 2,828 | |||||||||||||||||||
Shareholders' equity | 114,072 | 110,630 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,215,591 | $ | 1,204,965 | |||||||||||||||||
Net interest income (1) | $ | 39,033 | $ | 39,441 | |||||||||||||||||
Interest rate spread | 3.25 | % | 3.30 | % | |||||||||||||||||
Cost of funds | 0.60 | % | 0.81 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.57 | % | 0.78 | % | |||||||||||||||||
Net interest margin | 3.40 | % | 3.47 | % |
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