Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates in a decentralized fashion in the following 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.

• 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. On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage.

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.

The following tables represent reportable segment information for the three and six months ended June 30, 2014 and 2013, respectively:

	For the Three Months Ended													For the Three Months Ended
	June 30, 2014													June 30, 2013
(In Thousands)	Retail Banking		Wealth Management		Mortgage Banking			Elimina-tions			Consolidated			Retail Banking		Wealth Management		Mortgage Banking			Elimina-tions			Consolidated
Revenues:
Interest income	$	10,865	$	3	$	163		$	(90	)	$	10,941		$	10,903	$	4	$	409		$	(324	)	$	10,992
Trust and investment fee income	146		1,095		—			(38		)	$	1,203		110		1,051		—			(37		)	1,124
Other income	1,083		—		2,008			(21		)	$	3,070		1,342		—		4,691			(77		)	5,956
Total operating income	12,094		1,098		2,171			(149		)	15,214			12,355		1,055		5,100			(438		)	18,072
Expenses:
Interest expense	1,415		—		106			(90		)	$	1,431		1,634		—		341			(324		)	1,651
Salaries and employee benefits	4,168		566		1,259			—			$	5,993		4,198		531		2,963			—			7,692
Provision for loan losses	—		—		72			—			$	72		180		—		4			—			184
Other	4,334		287		576			(59		)	$	5,138		4,056		378		1,096			(114		)	5,416
Total operating expenses	9,917		853		2,013			(149		)	12,634			10,068		909		4,404			(438		)	14,943
Income before income taxes and non-controlling interest	2,177		245		158			—			2,580			2,287		146		696			—			3,129
Income tax expense	568		99		—			—			667			672		102		—			—			774
Net Income	1,609		146		158			—			1,913			1,615		44		696			—			2,355
Non-controlling interest in income of consolidated subsidiary	—		—		(58		)	—			(58		)	—		—		(262		)	—			(262		)
Net income attributable to Middleburg Financial Corporation	$	1,609	$	146	$	100		$	—		$	1,855		$	1,615	$	44	$	434		$	—		$	2,093
Total assets	$	1,365,914	$	12,547	$	—		$	(125,726	)	$	1,252,735		$	1,203,277	$	6,355	$	75,257		$	(67,689	)	$	1,217,200
Capital expenditures	$	298	$	2	$	3		$	—		$	303		$	203	$	—	$	9		$	—		$	212
Goodwill and other intangibles	$	—	$	3,893	$	—		$	—		$	3,893		$	—	$	4,065	$	1,867		$	—		$	5,932

	For the Six Months Ended												For the Six Months Ended
	June 30, 2014												June 30, 2013
(In Thousands)	Retail Banking		Wealth Management		Mortgage Banking			Elimina-tions			Consolidated		Retail Banking			Wealth Management		Mortgage Banking			Elimina-tions			Consolidated
Revenues:
Interest income	$	21,879	$	7	$	450		$	(288	)	$	22,048	$	21,992		$	7	$	878		$	(673	)	$	22,204
Trust and investment fee income	286		2,181		—			(76		)	2,391		204			2,052		—			(78		)	2,178
Other income	2,690		—		5,121			(47		)	7,764		2,260			—		8,803			(233		)	10,830
Total operating income	24,855		2,188		5,571			(411		)	32,203		24,456			2,059		9,681			(984		)	35,212
Expenses:
Interest expense	2,810		—		304			(288		)	$	2,826	3,382			—		719			(673		)	3,428
Salaries and employee benefits	8,119		1,135		3,772			—			13,026		8,474			1,058		5,960			—			15,492
Provision for (recovery of) loan losses	926		—		34			—			960		(9		)	—		5			—			(4		)
Other	8,092		550		1,722			(123		)	10,241		8,690			687		2,478			(311		)	11,544
Total operating expenses	19,947		1,685		5,832			(411		)	27,053		20,537			1,745		9,162			(984		)	30,460
Income before income taxes and non-controlling interest	4,908		503		(261		)	—			5,150		3,919			314		519			—			4,752
Income tax expense	1,211		204		—			—			1,415		963			174		—			—			1,137
Net Income	3,697		299		(261		)	—			3,735		2,956			140		519			—			3,615
Non-controlling interest in income of consolidated subsidiary	—		—		98			—			98		—			—		(195		)	—			(195		)
Net income attributable to Middleburg Financial Corporation	$	3,697	$	299	$	(163	)	$	—		$	3,833	$	2,956		$	140	$	324		—			$	3,420
Total assets	$	1,365,914	$	12,547	$	—		$	(125,726	)	$	1,252,735	$	1,203,277		$	6,355	$	75,257		$	(67,689	)	$	1,217,200
Capital expenditures	$	441	$	10	$	3		$	—		$	454	$	451		$	—	$	9		$	—		$	460
Goodwill and other intangibles	$	—	$	3,893	$	—		$	—		$	3,893	$	—		$	4,065	$	1,867		$	—		$	5,932