Segment Reporting

3 Months Ended

Mar. 31, 2014

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:

	March 31, 2014
(Dollars in thousands)	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	11,013	$	4	$	287		$	(198	)	$	11,106
Trust services income	—		1,086		—			(38		)	1,048
Other income	1,746		—		3,113			(26		)	4,833
Total operating income	12,759		1,090		3,400			(262		)	16,987
Expenses:
Interest expense	1,395		—		198			(198		)	1,395
Salaries and employee benefits	3,951		569		2,513			—			7,033
Provision for (recovery of) loan losses	926		—		(38		)	—			888
Other expense	3,757		263		1,146			(64		)	5,102
Total operating expenses	10,029		832		3,819			(262		)	14,418
Income (loss) before income taxes and non-controlling interest	2,730		258		(419		)	—			2,569
Income tax expense	644		105		—			—			749
Net income (loss)	2,086		153		(419		)	—			1,820
Non-controlling interest in consolidated subsidiary	—		—		157			—			157
Net income (loss) attributable to Middleburg Financial Corporation	$	2,086	$	153	$	(262	)	$	—		$	1,977
Total assets	$	1,204,499	$	6,458	$	40,284		$	(42,829	)	$	1,208,412
Capital expenditures	$	143	$	8	$	3		$	—		$	154
Goodwill and other intangibles	$	—	$	3,936	$	1,367		$	—		$	5,303

	March 31, 2013
(Dollars in thousands)	Commercial & Retail Banking			Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	11,089		$	3	$	469		$	(349	)	$	11,212
Trust services income	—			1,001		—			(41		)	960
Other income	1,012			—		4,112			(156		)	4,968
Total operating income	12,101			1,004		4,581			(546		)	17,140
Expenses:
Interest expense	1,748			—		378			(349		)	1,777
Salaries and employee benefits	4,275			527		2,997			—			7,799
Provision for (recovery of) loan losses	(189		)	—		1			—			(188		)
Other expense	4,635			309		1,382			(197		)	6,129
Total operating expenses	10,469			836		4,758			(546		)	15,517
Income (loss) before income taxes and non-controlling interest	1,632			168		(177		)	—			1,623
Income tax expense	291			72		—			—			363
Net income (loss)	1,341			96		(177		)	—			1,260
Non-controlling interest in consolidated subsidiary	—			—		67			—			67
Net income (loss) attributable to Middleburg Financial Corporation	$	1,341		$	96	$	(110	)	$	—		$	1,327
Total assets	$	1,208,288		$	6,232	$	59,623		$	(60,387	)	$	1,213,756
Capital expenditures	$	248		$	—	$	—		$	—		$	248
Goodwill and other intangibles	$	—		$	4,108	$	1,867		$	—		$	5,975