Segment Reporting

6 Months Ended

Jun. 30, 2015

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 recognized 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 and as a result, any mortgage banking activity for the Company subsequent to the sale date is included with the results of the retail banking segment. Any activity since the sale of Southern Trust Mortgage is considered to be immaterial and incidental to the Company's retail banking activities. The mortgage banking activities will continue to be evaluated and will be separately reported as a distinguishable segment if determined to be of significance to the reader of these financial statements or if the related operating results are believed to meet the quantitative tests for disclosure. Mortgage banking activities for the three and six months ended June 30, 2014 are the result of Southern Trust Mortgage activity that was consolidated with the Company through the date of sale.

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 provided a warehouse line, office space, data processing and accounting services to Southern Trust Mortgage for which it received 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, 2015 and 2014, respectively:

	For the Three Months Ended													For the Three Months Ended
	June 30, 2015													June 30, 2014
(In Thousands)	Retail Banking			Wealth Management		Mortgage Banking		Intercompany Eliminations			Consolidated			Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	10,350		$	2	$	—	$	—		$	10,352		$	10,865	$	3	$	163		$	(90	)	$	10,941
Trust and investment fee income	155			1,284		—		(41		)	1,398			146		1,095		—			(38		)	1,203
Other income	1,029			—		—		—			1,029			1,083		—		2,008			(21		)	3,070
Total operating income	11,534			1,286		—		(41		)	12,779			12,094		1,098		2,171			(149		)	15,214
Expenses:
Interest expense	1,039			—		—		—			1,039			1,415		—		106			(90		)	1,431
Salaries and employee benefits	4,367			606		—		—			4,973			4,168		566		1,259			—			5,993
Provision for (recovery of) loan losses	(425		)	—		—		—			(425		)	—		—		72			—			72
Other	3,850			288		—		(41		)	4,097			4,334		287		576			(59		)	5,138
Total operating expenses	8,831			894		—		(41		)	9,684			9,917		853		2,013			(149		)	12,634
Income before income taxes and non-controlling interest	2,703			392		—		—			3,095			2,177		245		158			—			2,580
Income tax expense	667			148		—		—			815			568		99		—			—			667
Net Income	2,036			244		—		—			2,280			1,609		146		158			—			1,913
Non-controlling interest in income of consolidated subsidiary	—			—		—		—			—			—		—		(58		)	—			(58		)
Net income attributable to Middleburg Financial Corporation	$	2,036		$	244	$	—	$	—		$	2,280		$	1,609	$	146	$	100		$	—		$	1,855
Total assets	$	1,238,148		$	6,532	$	—	$	(2,695	)	$	1,241,985		$	1,365,914	$	12,547	$	—		$	(125,726	)	$	1,252,735
Capital expenditures	$	2,320		$	—	$	—	$	—		$	2,320		$	298	$	2	$	3		$	—		$	303
Goodwill and other intangibles	$	—		$	3,722	$	—	$	—		$	3,722		$	—	$	3,893	$	—		$	—		$	3,893

	For the Six Months Ended											For the Six Months Ended
	June 30, 2015											June 30, 2014
(In Thousands)	Retail Banking		Wealth Management		Mortgage Banking		Intercompany Eliminations			Consolidated		Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	21,046	$	5	$	—	$	—		$	21,051	$	21,879	$	7	$	450		$	(288	)	$	22,048
Trust and investment fee income	284		2,543		—		(82		)	2,745		286		2,181		—			(76		)	2,391
Other income	2,689		—		—		—			2,689		2,690		—		5,121			(47		)	7,764
Total operating income	24,019		2,548		—		(82		)	26,485		24,855		2,188		5,571			(411		)	32,203
Expenses:
Interest expense	2,107		—		—		—			2,107		2,810		—		304			(288		)	2,826
Salaries and employee benefits	8,681		1,140		—		—			9,821		8,119		1,135		3,772			—			13,026
Provision for loan losses	25		—		—		—			25		926		—		34			—			960
Other	7,661		569		—		(82		)	8,148		8,092		550		1,722			(123		)	10,241
Total operating expenses	18,474		1,709		—		(82		)	20,101		19,947		1,685		5,832			(411		)	27,053
Income before income taxes and non-controlling interest	5,545		839		—		—			6,384		4,908		503		(261		)	—			5,150
Income tax expense	1,341		315		—		—			1,656		1,211		204		—			—			1,415
Net Income	4,204		524		—		—			4,728		3,697		299		(261		)	—			3,735
Non-controlling interest in income of consolidated subsidiary	—		—		—		—			—		—		—		98			—			98
Net income attributable to Middleburg Financial Corporation	$	4,204	$	524	$	—	$	—		$	4,728	$	3,697	$	299	$	(163	)	$	—		$	3,833
Total assets	$	1,238,148	$	6,532	$	—	$	(2,695	)	$	1,241,985	$	1,365,914	$	12,547	$	—		$	(125,726	)	$	1,252,735
Capital expenditures	$	2,471	$	—	$	—	$	—		$	2,471	$	441	$	10	$	3		$	—		$	454
Goodwill and other intangibles	$	—	$	3,722	$	—	$	—		$	3,722	$	—	$	3,893	$	—		$	—		$	3,893