Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates in a decentralized fashion in three principal business activities: retail banking services; wealth management services; and mortgage banking services.  

• Revenue from retail banking activity consists primarily of interest earned on loans and investment securities and service charges on deposit accounts.

• Revenue from the wealth management activities is comprised of fees based upon the market value of the accounts under administration as well as commissions on investment transactions. The wealth management services are conducted by Middleburg Investment Group.

• Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The Company recognizes gains on the sale of loans as part of other income. The mortgage banking services are conducted by Southern Trust Mortgage, LLC.

Middleburg Bank and the Company have assets in custody with Middleburg Trust Company and accordingly pay Middleburg Trust Company a monthly fee. Middleburg Bank also pays interest to Middleburg Trust Company on deposit accounts with Middleburg Bank. Middleburg Bank provides a warehouse line and office space, data processing and accounting services to Southern Trust Mortgage for which it receives income. Transactions related to these relationships are eliminated to reach consolidated totals.

Information about reportable segments and reconciliation to the consolidated financial statements follows:

	2013
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	43,702	$	14	$	1,773		$	(1,217	)	$	44,272
Wealth management fees	—		4,139		—			(169		)	3,970
Other income	4,527		—		16,473			(431		)	20,569
Total operating income	48,229		4,153		18,246			(1,817		)	68,811
Expenses:
Interest expense	6,444		—		1,340			(1,217		)	6,567
Salaries and employee benefits	16,464		2,187		11,976			—			30,627
Provision for loan losses	105		—		4			—			109
Other expense	17,916		1,195		4,903			(600		)	23,414
Total operating expenses	40,929		3,382		18,223			(1,817		)	60,717
Income before income taxes and non-controlling interest	7,300		771		23			—			8,094
Income tax expense	1,608		323		—			—			1,931
Net income	5,692		448		23			—			6,163
Non-controlling interest in consolidated subsidiary	—		—		(9		)	—			(9		)
Net income attributable to Middleburg Financial Corporation	$	5,692	$	448	$	14		$	—		$	6,154
Total assets	$	1,222,837	$	5,909	$	41,745		$	(42,738	)	$	1,227,753
Capital expenditures	$	895	$	—	$	33		$	—		$	928
Goodwill and other intangibles	$	—	$	3,979	$	1,367		$	—		$	5,346

	2012
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	46,095	$	10	$	2,740		$	(1,822	)	$	47,023
Wealth management fees	—		3,891		—			(140		)	3,751
Other income	4,413		—		21,787			(497		)	25,703
Total operating income	50,508		3,901		24,527			(2,459		)	76,477
Expenses:
Interest expense	8,433		—		2,213			(1,822		)	8,824
Salaries and employee benefits	15,678		2,208		12,531			—			30,417
Provision for loan losses	3,410		—		28			—			3,438
Other expense	17,413		1,300		5,766			(637		)	23,842
Total operating expenses	44,934		3,508		20,538			(2,459		)	66,521
Income before income taxes and non-controlling interest	5,574		393		3,989			—			9,956
Income tax expense	1,593		373		—			—			1,966
Net income	3,981		20		3,989			—			7,990
Non-controlling interest in consolidated subsidiary	—		—		(1,504		)	—			(1,504		)
Net income attributable to Middleburg Financial Corporation	$	3,981	$	20	$	2,485		$	—		$	6,486
Total assets	$	1,216,813	$	6,416	$	94,282		$	(80,730	)	$	1,236,781
Capital expenditures	$	947	$	—	$	98		$	—		$	1,045
Goodwill and other intangibles	$	—	$	4,150	$	1,867		$	—		$	6,017

	2011
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	47,080	$	14	$	2,931		$	(1,389	)	$	48,636
Wealth management fees	—		3,757		—			(121		)	3,636
Other income	3,914		—		12,543			(131		)	16,326
Total operating income	50,994		3,771		15,474			(1,641		)	68,598
Expenses:
Interest expense	10,374		—		1,706			(1,389		)	10,691
Salaries and employee benefits	15,390		2,369		9,614			—			27,373
Provision for loan losses	3,141		—		(257		)	—			2,884
Other expense	15,531		1,232		5,127			(252		)	21,638
Total operating expenses	44,436		3,601		16,190			(1,641		)	62,586
Income (loss) before income taxes and non-controlling interest	6,558		170		(716		)	—			6,012
Income tax expense	1,230		120		—			—			1,350
Net income (loss)	5,328		50		(716		)	—			4,662
Non-controlling interest in consolidated subsidiary	—		—		298			—			298
Net income (loss) attributable to Middleburg Financial Corporation	$	5,328	$	50	$	(418	)	$	—		$	4,960
Total assets	$	1,262,358	$	5,975	$	101,876		$	(177,349	)	$	1,192,860
Capital expenditures	$	1,197	$	3	$	151		$	—		$	1,351
Goodwill and other intangibles	$	—	$	4,322	$	1,867		$	—		$	6,189