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 30, 2015. |
MIDDLEBURG FINANCIAL CORPORATION | ||||
(Registrant) | ||||
Date: January 30, 2015 | By: | /s/ Gary R. Shook | ||
Gary R. Shook | ||||
President and Chief Executive Officer | ||||
Exhibit No. | Description |
99.1 | Press release dated January 30, 2015 |
• | Net income of $1.63 million or $0.23 per diluted share for the fourth quarter of 2014, an increase of 45.15% compared to $1.12 million or $0.16 per diluted share for the fourth quarter of 2013. Net income of $7.58 million or $1.06 per diluted share for 2014, an increase of 23.24% compared to $6.15 million or $0.87 per diluted share for 2013. |
• | Net interest margin for the fourth quarter of 2014 declined to 3.31% compared to 3.36% for the previous quarter and to 3.43% for the fourth quarter of 2013. Net interest margin for 2014 and 2013 was 3.40%. |
• | Cost of funds was 43 bp for the fourth quarter of 2014, a decrease of 2 bp from the previous quarter and a decrease of 12 bp from the fourth quarter of 2013. Cost of funds was 48 bp for 2014, a decrease of 12 bp from 2013. |
• | Net interest income was $9.32 million for the fourth quarter of 2014, a decrease of 2.41% compared to the previous quarter and a decrease of 3.06% compared to the fourth quarter of 2013. Net interest income was $38.08 million for 2014, an increase of 1.00% from 2013. |
• | Non-interest expense was $9.42 million for the fourth quarter of 2014, a decrease of 31.22% compared to the fourth quarter of 2013. Non-interest expense was $41.08 million for 2014, a decrease of 23.98% from 2013. |
• | Efficiency ratio of 77.53% for the fourth quarter of 2014, compared to an efficiency ratio of 88.32% for the fourth quarter of 2013. Efficiency ratio of 75.10% in 2014 compared to an efficiency ratio of 82.13% in 2013. |
• | Total assets were $1.22 billion as of December 31, 2014, a decrease of 0.40% for the full year. |
• | Total deposits were $989.12 million as of December 31, 2014, an increase of 0.68% for the full year. |
• | Loans held-for-investment were $754.85 million as of December 31, 2014, an increase of 3.62% for the full year. |
• | Nonaccrual loans were $9.94 million on December 31, 2014, a decrease of 49.66% for the full year. |
• | The ratio of nonperforming assets to total assets was 1.59% at December 31, 2014 compared to 2.33% at December 31, 2013. |
• | Capital ratios continue to be strong: Tangible Common Equity Ratio of 9.70%, Total Risk-Based Capital Ratio of 16.95%, Tier 1 Risk-Based Capital Ratio of 15.70%, and a Tier 1 Leverage Ratio of 9.90% at December 31, 2014. |
• | Yields on earning assets declined by 7 bp compared to the previous quarter, primarily due to a 12 bp decrease in loan yields and a 26 bp decrease in yields on investments. |
• | Loan yields fell even as loan balances increased during the quarter, reflecting competitive market pressures that resulted in lower yields for loans booked during the period. |
• | Yields on investment securities were impacted by an increase in premium amortization stemming from faster prepayments on mortgage backed securities accompanied by a general decline in market yields which resulted in lower book yields for securities that were added to the portfolio during the period. |
• | Cost of funds declined by 2 bp to 43 bp as the Company grew non-interest bearing deposits and paid off some maturing brokered deposits. |
• | Salaries and employee benefit expenses declined by 30.48% in the fourth quarter of 2014 and by 26.21% for all of 2014 compared to the same periods in 2013. The primary reasons for lower salary and employee benefit expenses were the sale of the Company's majority interest in Southern Trust Mortgage in the second quarter of 2014 and staff reductions at the bank. |
• | Advertising expenses decreased by 114.91% in the fourth quarter of 2014 and by 74.95% for all of 2014 compared to the same periods in 2013, as the Company streamlined its advertising campaigns and product marketing. |
• | Occupancy and equipment expense decreased by 28.06% in the fourth quarter of 2014 and by 15.02% for all of 2014 compared to the same periods in 2013. The primary reason for lower expenses in this category was the sale of Southern Trust Mortgage in the second quarter of 2014. Expenses attributable to Southern Trust Mortgage were consolidated in the Company's financial statements through the date of the sale. |
• | Costs related to other real estate owned (OREO) increased by 41.03% in the fourth quarter of 2014 and decreased by 82.41% for all of 2014 compared to the same periods in 2013. Changes in the level of OREO related expenses are determined by the volume of OREO properties recorded during the periods, valuation allowance adjustments related to estimated selling costs of new properties recorded and adjustments based on fair value of existing properties, the condition and maintenance of properties held during the periods and gains and losses incurred on the sale of properties. |
• | Other expenses declined by 36.22% in the fourth quarter of 2014 and by 17.95% for all of 2014 compared to the same periods in 2013. The primary reasons for declines in expenses in this category were the sale of the Company's majority interest in Southern Trust Mortgage in the second quarter of 2014. Significant items in this category include expenses related to deposit processing, fees for advisory services, telephone and professional fees. |
• | Loans that were delinquent for more than 90 days and still accruing declined to $30,000 as of December 31, 2014 from $808,000 as of December 31, 2013. |
• | Nonaccrual loans were $9.94 million as of December 31, 2014, compared to $19.75 million as of December 31, 2013, representing a decrease of 49.66%. |
• | Troubled debt restructurings that were performing as agreed totaled $4.30 million at December 31, 2014 compared to $4.67 million at December 31, 2013, representing a decrease of 8.11%. |
• | Total nonperforming assets were $19.45 million or 1.59% of total assets at December 31, 2014 compared to $28.66 million or 2.33% to total assets at December 31, 2013. |
• | Cash balances and deposits at other banks decreased by $12.32 million compared to December 31, 2013, as the Company paid off maturing brokered deposits and Federal Home Loan Bank advances during the third and fourth quarters of 2014. |
• | The Company deployed excess liquidity into growing its securities portfolio which increased by $21.34 million compared to December 31, 2013. |
• | Loan balances grew in the fourth quarter of the year and loans held for investment increased by $26.37 million from December 31, 2013. A reclassification of $8.64 million, previously in mortgage loans held for sale, into a single loan made to Southern Trust Mortgage was necessitated by the Company's sale of its majority interest in Southern Trust Mortgage during the second quarter of 2014. |
• | Tier 1 Leverage ratio was 9.90%, 5.90% over the regulatory minimum of 4.0%. |
• | Tier 1 Risk-Based Capital Ratio was 15.70%, 11.70% over the regulatory minimum of 4.0%. |
• | Total Risk Based Capital Ratio was 16.95%, 8.95% over the regulatory minimum of 8.0%. |
MIDDLEBURG FINANCIAL CORPORATION | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except for share and per share data) | |||||||
(Unaudited) | (Audited) | ||||||
December 31, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 7,396 | $ | 6,648 | |||
Interest-bearing deposits with other institutions | 47,626 | 60,695 | |||||
Total cash and cash equivalents | 55,022 | 67,343 | |||||
Securities held to maturity, fair value approximates $1,397 for 2014 | 1,500 | — | |||||
Securities available for sale, at fair value | 348,263 | 328,423 | |||||
Loans held for sale | — | 33,175 | |||||
Restricted securities, at cost | 5,279 | 6,780 | |||||
Loans receivable, net of allowance for loan losses of $11,786 and $13,320, respectively | 743,060 | 715,160 | |||||
Premises and equipment, net | 18,104 | 20,017 | |||||
Goodwill and identified intangibles | 3,807 | 5,346 | |||||
Other real estate owned, net of valuation allowance of $755 and $398, respectively | 4,051 | 3,424 | |||||
Bank owned life insurance | 22,617 | 21,955 | |||||
Accrued interest receivable and other assets | 21,154 | 26,130 | |||||
TOTAL ASSETS | $ | 1,222,857 | $ | 1,227,753 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest bearing demand deposits | $ | 216,912 | $ | 185,577 | |||
Savings and interest bearing demand deposits | 523,266 | 528,879 | |||||
Time deposits | 248,938 | 267,940 | |||||
Total deposits | 989,116 | 982,396 | |||||
Securities sold under agreements to repurchase | 38,515 | 34,539 | |||||
Federal Home Loan Bank borrowings | 55,000 | 80,000 | |||||
Subordinated notes | 5,155 | 5,155 | |||||
Accrued interest payable and other liabilities | 13,037 | 10,590 | |||||
Commitments and contingent liabilities | — | — | |||||
TOTAL LIABILITIES | 1,100,823 | 1,112,680 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock ($2.50 par value; 20,000,000 shares authorized, 7,131,643 and 7,080,591, issued and outstanding, respectively) | 17,494 | 17,403 | |||||
Capital surplus | 44,892 | 44,251 | |||||
Retained earnings | 55,854 | 50,689 | |||||
Accumulated other comprehensive income | 3,794 | 232 | |||||
Total Middleburg Financial Corporation shareholders' equity | 122,034 | 112,575 | |||||
Non-controlling interest in consolidated subsidiary | — | 2,498 | |||||
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 115,073 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,222,857 | $ | 1,227,753 |
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, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||
Interest and fees on loans | $ | 8,176 | $ | 8,744 | $ | 33,833 | $ | 35,248 | |||||||
Interest and dividends on securities available for sale | |||||||||||||||
Taxable | 1,728 | 1,638 | 6,900 | 6,105 | |||||||||||
Tax-exempt | 481 | 638 | 2,137 | 2,555 | |||||||||||
Dividends | 64 | 63 | 293 | 232 | |||||||||||
Interest on deposits in banks and federal funds sold | 38 | 31 | 162 | 132 | |||||||||||
Total interest and dividend income | 10,487 | 11,114 | 43,325 | 44,272 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Interest on deposits | 933 | 1,094 | 3,889 | 4,911 | |||||||||||
Interest on securities sold under agreements to repurchase | 79 | 82 | 318 | 325 | |||||||||||
Interest on short-term borrowings | — | 17 | — | 123 | |||||||||||
Interest on FHLB borrowings and other debt | 160 | 312 | 1,036 | 1,208 | |||||||||||
Total interest expense | 1,172 | 1,505 | 5,243 | 6,567 | |||||||||||
NET INTEREST INCOME | 9,315 | 9,609 | 38,082 | 37,705 | |||||||||||
Provision for loan losses | 450 | 110 | 1,960 | 109 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,865 | 9,499 | 36,122 | 37,596 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 606 | 592 | 2,422 | 2,291 | |||||||||||
Trust services income | 1,138 | 1,033 | 4,362 | 3,970 | |||||||||||
Gains on loans held for sale | 1 | 3,114 | 4,860 | 15,652 | |||||||||||
Gains on securities available for sale, net | 45 | 21 | 186 | 418 | |||||||||||
Commissions on investment sales | 132 | 107 | 611 | 470 | |||||||||||
Bank owned life insurance | 168 | 105 | 662 | 472 | |||||||||||
Gain on sale of majority interest in consolidated subsidiary | — | — | 24 | — | |||||||||||
Other operating income | 260 | 431 | 1,659 | 1,266 | |||||||||||
Total non-interest income | 2,350 | 5,403 | 14,786 | 24,539 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 5,134 | 7,385 | 22,601 | 30,627 | |||||||||||
Occupancy and equipment | 1,336 | 1,857 | 6,177 | 7,269 | |||||||||||
Advertising | (65 | ) | 436 | 365 | 1,457 | ||||||||||
Computer operations | 485 | 485 | 1,893 | 1,860 | |||||||||||
Other real estate owned | 110 | 78 | 256 | 1,455 | |||||||||||
Other taxes | 212 | 186 | 849 | 751 | |||||||||||
Federal deposit insurance | 212 | 139 | 899 | 822 | |||||||||||
Other operating expenses | 1,999 | 3,134 | 8,041 | 9,800 | |||||||||||
Total non-interest expense | 9,423 | 13,700 | 41,081 | 54,041 | |||||||||||
Income before income taxes | 1,792 | 1,202 | 9,827 | 8,094 | |||||||||||
Income tax expense | 162 | 303 | 2,341 | 1,931 | |||||||||||
NET INCOME | 1,630 | 899 | 7,486 | 6,163 | |||||||||||
Net loss (income) attributable to non-controlling interest | — | 224 | 98 | (9 | ) | ||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,630 | $ | 1,123 | $ | 7,584 | $ | 6,154 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.23 | $ | 0.16 | $ | 1.07 | $ | 0.87 | |||||||
Diluted | $ | 0.23 | $ | 0.16 | $ | 1.06 | $ | 0.87 | |||||||
Dividends per common share | $ | 0.10 | $ | 0.07 | $ | 0.34 | $ | 0.24 |
MIDDLEBURG FINANCIAL CORPORATION | |||||||||||||||||||
Quarterly Summary Statements of Income | |||||||||||||||||||
(Unaudited, Dollars In thousands, except for per share data) | |||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | |||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Interest and fees on loans | $ | 8,176 | $ | 8,357 | $ | 8,493 | $ | 8,806 | $ | 8,744 | |||||||||
Interest and dividends on securities available for sale | |||||||||||||||||||
Taxable | 1,728 | 1,763 | 1,792 | 1,617 | 1,638 | ||||||||||||||
Tax-exempt | 481 | 535 | 537 | 584 | 638 | ||||||||||||||
Dividends | 64 | 84 | 72 | 73 | 63 | ||||||||||||||
Interest on deposits in banks and federal funds sold | 38 | 51 | 47 | 26 | 31 | ||||||||||||||
Total interest and dividend income | 10,487 | 10,790 | 10,941 | 11,106 | 11,114 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Interest on deposits | 933 | 955 | 995 | 1,002 | 1,094 | ||||||||||||||
Interest on securities sold under agreements to repurchase | 79 | 81 | 81 | 80 | 82 | ||||||||||||||
Interest on short-term borrowings | — | — | — | — | 17 | ||||||||||||||
Interest on FHLB borrowings and other debt | 160 | 209 | 355 | 313 | 312 | ||||||||||||||
Total interest expense | 1,172 | 1,245 | 1,431 | 1,395 | 1,505 | ||||||||||||||
NET INTEREST INCOME | 9,315 | 9,545 | 9,510 | 9,711 | 9,609 | ||||||||||||||
Provision for loan losses | 450 | 550 | 72 | 888 | 110 | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 8,865 | 8,995 | 9,438 | 8,823 | 9,499 | ||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 606 | 635 | 622 | 557 | 592 | ||||||||||||||
Trust services income | 1,138 | 1,119 | 1,057 | 1,048 | 1,033 | ||||||||||||||
Gains on loans held for sale | 1 | 1 | 1,916 | 2,942 | 3,114 | ||||||||||||||
Gains on securities available for sale, net | 45 | 12 | 66 | 63 | 21 | ||||||||||||||
Commissions on investment sales | 132 | 193 | 146 | 140 | 107 | ||||||||||||||
Bank owned life insurance | 168 | 168 | 164 | 162 | 105 | ||||||||||||||
Gain on sale of majority interest in consolidated subsidiary | — | — | 24 | — | — | ||||||||||||||
Other operating income | 260 | 152 | 278 | 969 | 431 | ||||||||||||||
Total non-interest income | 2,350 | 2,280 | 4,273 | 5,881 | 5,403 | ||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||
Salaries and employee benefits | 5,134 | 4,441 | 5,993 | 7,033 | 7,385 | ||||||||||||||
Occupancy and equipment | 1,336 | 1,262 | 1,679 | 1,900 | 1,857 | ||||||||||||||
Advertising | (65 | ) | 136 | 131 | 163 | 436 | |||||||||||||
Computer operations | 485 | 439 | 510 | 458 | 485 | ||||||||||||||
Other real estate owned | 110 | (33 | ) | 12 | 167 | 78 | |||||||||||||
Other taxes | 212 | 220 | 220 | 197 | 186 | ||||||||||||||
Federal deposit insurance | 212 | 220 | 230 | 238 | 139 | ||||||||||||||
Other operating expenses | 1,999 | 1,706 | 2,356 | 1,979 | 3,134 | ||||||||||||||
Total non-interest expense | 9,423 | 8,391 | 11,131 | 12,135 | 13,700 | ||||||||||||||
Income before income taxes | 1,792 | 2,884 | 2,580 | 2,569 | 1,202 | ||||||||||||||
Income tax expense | 162 | 763 | 667 | 749 | 303 | ||||||||||||||
NET INCOME | 1,630 | 2,121 | 1,913 | 1,820 | 899 | ||||||||||||||
Net loss (income) attributable to non-controlling interest | — | — | (58 | ) | 157 | 224 | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,630 | $ | 2,121 | $ | 1,855 | $ | 1,977 | $ | 1,123 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.23 | $ | 0.30 | $ | 0.26 | $ | 0.28 | $ | 0.16 | |||||||||
Diluted | $ | 0.23 | $ | 0.30 | $ | 0.26 | $ | 0.28 | $ | 0.16 | |||||||||
Dividends per common share | $ | 0.10 | $ | 0.10 | $ | 0.07 | $ | 0.07 | $ | 0.07 |
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, | |||||||||||||||
2014 | 2014 | 2014 | 2014 | 2013 | |||||||||||||||
BALANCE SHEET RATIOS | |||||||||||||||||||
Loans to deposits | 76.32 | % | 73.87 | % | 72.65 | % | 76.10 | % | 74.15 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 133.54 | % | 130.14 | % | 128.37 | % | 126.80 | % | 126.87 | % | |||||||||
INCOME STATEMENT RATIOS | |||||||||||||||||||
Return on average assets (ROA) | 0.53 | % | 0.69 | % | 0.61 | % | 0.66 | % | 0.37 | % | |||||||||
Return on average equity (ROE) | 5.31 | % | 7.00 | % | 6.30 | % | 6.99 | % | 3.92 | % | |||||||||
Net interest margin (1) | 3.31 | % | 3.36 | % | 3.38 | % | 3.54 | % | 3.43 | % | |||||||||
Yield on average earning assets | 3.72 | % | 3.79 | % | 3.88 | % | 4.04 | % | 3.94 | % | |||||||||
Cost of funds | 0.43 | % | 0.45 | % | 0.52 | % | 0.52 | % | 0.55 | % | |||||||||
Efficiency ratio (6) | 77.53 | % | 68.82 | % | 78.99 | % | 75.19 | % | 88.32 | % | |||||||||
PER SHARE DATA | |||||||||||||||||||
Dividends | $ | 0.10 | $ | 0.10 | $ | 0.07 | $ | 0.07 | $ | 0.07 | |||||||||
Book value (MFC Shareholders) | 17.11 | 16.97 | 16.73 | 16.37 | 15.90 | ||||||||||||||
Tangible book value (4) | 16.58 | 16.43 | 16.19 | 15.62 | 15.13 | ||||||||||||||
SHARE PRICE DATA | |||||||||||||||||||
Closing price | $ | 18.01 | $ | 17.74 | $ | 20.00 | $ | 17.61 | $ | 18.04 | |||||||||
Diluted earnings multiple (2) | 16.99 | 14.78 | 19.23 | 15.72 | 19.61 | ||||||||||||||
Book value multiple (3) | 1.05 | 1.05 | 1.20 | 1.08 | 1.11 | ||||||||||||||
COMMON STOCK DATA | |||||||||||||||||||
Outstanding shares at end of period | 7,131,643 | 7,123,914 | 7,113,744 | 7,076,145 | 7,080,591 | ||||||||||||||
Weighted average shares O/S , basic - QTD | 7,127,164 | 7,108,450 | 7,093,788 | 7,078,470 | 7,096,260 | ||||||||||||||
Weighted average shares O/S, diluted - QTD | 7,146,140 | 7,134,262 | 7,117,826 | 7,103,785 | 7,130,272 | ||||||||||||||
Dividend payout ratio | 43.48 | % | 33.33 | % | 26.92 | % | 25.05 | % | 33.32 | % | |||||||||
CAPITAL RATIOS | |||||||||||||||||||
Capital to assets - common shareholders | 9.98 | % | 10.01 | % | 9.50 | % | 9.59 | % | 9.20 | % | |||||||||
Capital to assets - with non-controlling interest | 9.98 | % | 10.01 | % | 9.50 | % | 9.78 | % | 9.40 | % | |||||||||
Tangible common equity ratio (5) | 9.70 | % | 9.72 | % | 9.22 | % | 9.19 | % | 8.76 | % | |||||||||
Leverage ratio | 9.90 | % | 9.71 | % | 9.54 | % | 9.61 | % | 9.42 | % | |||||||||
Tier 1 risk based capital ratio | 15.70 | % | 16.04 | % | 15.63 | % | 14.67 | % | 14.62 | % | |||||||||
Total risk based capital ratio | 16.95 | % | 17.30 | % | 16.88 | % | 15.93 | % | 15.88 | % | |||||||||
CREDIT QUALITY | |||||||||||||||||||
Net charge-offs to average loans | 0.46 | % | 0.09 | % | 0.23 | % | 0.13 | % | 0.02 | % | |||||||||
Total nonperforming loans to total loans | 1.89 | % | 1.63 | % | 2.10 | % | 2.76 | % | 3.46 | % | |||||||||
Total nonperforming assets to total assets | 1.59 | % | 1.50 | % | 1.57 | % | 2.04 | % | 2.33 | % | |||||||||
Nonaccrual loans to: | |||||||||||||||||||
Total loans | 1.32 | % | 1.01 | % | 1.43 | % | 2.03 | % | 2.71 | % | |||||||||
Total assets | 0.81 | % | 0.61 | % | 0.83 | % | 1.23 | % | 1.61 | % | |||||||||
Allowance for loan losses to: | |||||||||||||||||||
Total loans | 1.56 | % | 1.57 | % | 1.58 | % | 1.81 | % | 1.83 | % | |||||||||
Nonperforming assets | 60.59 | % | 63.18 | % | 58.50 | % | 53.54 | % | 46.48 | % | |||||||||
Nonaccrual loans | 118.52 | % | 155.80 | % | 110.57 | % | 88.92 | % | 67.44 | % | |||||||||
NONPERFORMING ASSETS | |||||||||||||||||||
Loans delinquent 90+ days and still accruing | $ | 30 | $ | 30 | $ | 355 | $ | 503 | $ | 808 | |||||||||
Nonaccrual loans | 9,944 | 7,332 | 10,408 | 14,876 | 19,752 | ||||||||||||||
Restructured loans (not in nonaccrual) | 4,295 | 4,522 | 4,552 | 4,838 | 4,674 | ||||||||||||||
Other real estate owned | 4,051 | 5,064 | 4,356 | 4,491 | 3,424 | ||||||||||||||
Repossessed assets | 1,132 | 1,132 | — | — | — | ||||||||||||||
Total nonperforming assets | $ | 19,452 | $ | 18,080 | $ | 19,671 | $ | 24,708 | $ | 28,658 |
(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 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. |
(6) | 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 Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||
Three months ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate (2) | Average Balance | Income/ Expense | Yield/ Rate (2) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 292,726 | $ | 1,792 | 2.43 | % | $ | 275,208 | $ | 1,701 | 2.45 | % | |||||||||
Tax-exempt (1) | 54,275 | 729 | 5.32 | % | 64,315 | 966 | 5.96 | % | |||||||||||||
Total securities | $ | 347,001 | $ | 2,521 | 2.88 | % | $ | 339,523 | $ | 2,667 | 3.12 | % | |||||||||
Loans: | |||||||||||||||||||||
Taxable | $ | 733,090 | $ | 8,171 | 4.42 | % | $ | 759,513 | $ | 8,738 | 4.56 | % | |||||||||
Tax-exempt (1) | 617 | 8 | 5.14 | % | 655 | 9 | 5.45 | % | |||||||||||||
Total loans (3) | $ | 733,707 | $ | 8,179 | 4.42 | % | $ | 760,168 | $ | 8,747 | 4.57 | % | |||||||||
Interest on deposits in banks and federal funds sold | 63,905 | 38 | 0.24 | % | 51,671 | 31 | 0.24 | % | |||||||||||||
Total earning assets | $ | 1,144,613 | $ | 10,738 | 3.72 | % | $ | 1,151,362 | $ | 11,445 | 3.94 | % | |||||||||
Less: allowance for loan losses | (11,482 | ) | (13,267 | ) | |||||||||||||||||
Total nonearning assets | 76,475 | 81,162 | |||||||||||||||||||
Total assets | $ | 1,209,606 | $ | 1,219,257 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 332,419 | $ | 163 | 0.19 | % | $ | 329,590 | $ | 195 | 0.23 | % | |||||||||
Regular savings | 113,316 | 53 | 0.19 | % | 110,443 | 58 | 0.21 | % | |||||||||||||
Money market savings | 71,222 | 34 | 0.19 | % | 76,197 | 40 | 0.21 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 128,478 | 294 | 0.91 | % | 132,994 | 345 | 1.03 | % | |||||||||||||
Under $100,000 | 123,814 | 389 | 1.25 | % | 134,773 | 456 | 1.34 | % | |||||||||||||
Total interest-bearing deposits | $ | 769,249 | $ | 933 | 0.48 | % | $ | 783,997 | $ | 1,094 | 0.55 | % | |||||||||
Short-term borrowings | — | — | — | % | 2,022 | 16 | 3.14 | % | |||||||||||||
Securities sold under agreements to repurchase | 37,541 | 79 | 0.83 | % | 36,227 | 82 | 0.90 | % | |||||||||||||
FHLB borrowings and other debt | 50,372 | 160 | 1.26 | % | 85,264 | 312 | 1.45 | % | |||||||||||||
Federal funds purchased | — | — | — | % | — | — | — | % | |||||||||||||
Total interest-bearing liabilities | $ | 857,162 | $ | 1,172 | 0.54 | % | $ | 907,510 | $ | 1,504 | 0.66 | % | |||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | 216,402 | 185,409 | |||||||||||||||||||
Other liabilities | 14,359 | 10,023 | |||||||||||||||||||
Total liabilities | $ | 1,087,923 | $ | 1,102,942 | |||||||||||||||||
Non-controlling interest | — | 2,649 | |||||||||||||||||||
Shareholders' equity | 121,683 | 113,666 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,209,606 | $ | 1,219,257 | |||||||||||||||||
Net interest income | $ | 9,566 | $ | 9,941 | |||||||||||||||||
Interest rate spread | 3.18 | % | 3.28 | % | |||||||||||||||||
Cost of Funds | 0.43 | % | 0.55 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.41 | % | 0.52 | % | |||||||||||||||||
Net interest margin | 3.31 | % | 3.43 | % |
(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 Average Balances, Income and Expenses, Yields and Rates | |||||||||||||||||||||
Twelve months ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Average Balance | Income/ Expense | Yield/ Rate (2) | Average Balance | Income/ Expense | Yield/ Rate (2) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Taxable | $ | 282,198 | $ | 7,193 | 2.55 | % | $ | 268,954 | $ | 6,337 | 2.36 | % | |||||||||
Tax-exempt (1) | 56,729 | 3,238 | 5.71 | % | 66,396 | 3,870 | 5.83 | % | |||||||||||||
Total securities | $ | 338,927 | $ | 10,431 | 3.08 | % | $ | 335,350 | $ | 10,207 | 3.04 | % | |||||||||
Loans: | |||||||||||||||||||||
Taxable | $ | 741,028 | $ | 33,810 | 4.56 | % | $ | 755,913 | $ | 35,224 | 4.66 | % | |||||||||
Tax-exempt (1) | 643 | 34 | 5.29 | % | 679 | 37 | 5.45 | % | |||||||||||||
Total loans (3) | $ | 741,671 | $ | 33,844 | 4.56 | % | $ | 756,592 | $ | 35,261 | 4.66 | % | |||||||||
Interest on deposits in banks and federal funds sold | 71,275 | 162 | 0.23 | % | 56,436 | 132 | 0.23 | % | |||||||||||||
Total earning assets | $ | 1,151,873 | $ | 44,437 | 3.86 | % | $ | 1,148,378 | $ | 45,600 | 3.97 | % | |||||||||
Less: allowance for loan losses | (12,241 | ) | (13,643 | ) | |||||||||||||||||
Total nonearning assets | 77,834 | 80,813 | |||||||||||||||||||
Total assets | $ | 1,217,466 | $ | 1,215,548 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||
Checking | $ | 339,996 | $ | 651 | 0.19 | % | $ | 324,171 | $ | 852 | 0.26 | % | |||||||||
Regular savings | 113,363 | 212 | 0.19 | % | 110,210 | 243 | 0.22 | % | |||||||||||||
Money market savings | 73,232 | 139 | 0.19 | % | 75,899 | 171 | 0.23 | % | |||||||||||||
Time deposits: | |||||||||||||||||||||
$100,000 and over | 125,904 | 1,232 | 0.98 | % | 139,018 | 1,671 | 1.20 | % | |||||||||||||
Under $100,000 | 129,021 | 1,655 | 1.28 | % | 140,230 | 1,974 | 1.41 | % | |||||||||||||
Total interest-bearing deposits | $ | 781,516 | $ | 3,889 | 0.50 | % | $ | 789,528 | $ | 4,911 | 0.62 | % | |||||||||
Short-term borrowings | — | — | — | % | 3,565 | 123 | 3.45 | % | |||||||||||||
Securities sold under agreements to repurchase | 36,899 | 318 | 0.86 | % | 35,536 | 325 | 0.91 | % | |||||||||||||
FHLB borrowings and other debt | 70,141 | 1,036 | 1.48 | % | 86,767 | 1,208 | 1.39 | % | |||||||||||||
Federal funds purchased | 1 | — | 0.00 | % | — | — | 0.00 | % | |||||||||||||
Total interest-bearing liabilities | $ | 888,557 | $ | 5,243 | 0.59 | % | $ | 915,396 | $ | 6,567 | 0.72 | % | |||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||
Demand deposits | 199,273 | 175,942 | |||||||||||||||||||
Other liabilities | 11,059 | 7,356 | |||||||||||||||||||
Total liabilities | $ | 1,098,889 | $ | 1,098,694 | |||||||||||||||||
Non-controlling interest | — | 2,824 | |||||||||||||||||||
Shareholders' equity | 118,577 | 114,030 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,217,466 | $ | 1,215,548 | |||||||||||||||||
Net interest income | $ | 39,194 | $ | 39,033 | |||||||||||||||||
Interest rate spread | 3.27 | % | 3.25 | % | |||||||||||||||||
Cost of Funds | 0.48 | % | 0.60 | % | |||||||||||||||||
Interest expense as a percent of average earning assets | 0.46 | % | 0.57 | % | |||||||||||||||||
Net interest margin | 3.40 | % | 3.40 | % |
(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. |
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