Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 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 nine months ended September 30, 2015 and 2014, respectively:

	For the Three Months Ended														For the Three Months Ended
	September 30, 2015														September 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	$	10,700		$	3		$	—	$	—		$	10,703		$	10,876	$	4	$	—	$	(90	)	$	10,790
Trust and investment fee income	132			1,209			—		(41		)	1,300			193		1,157		—		(38		)	1,312
Other income	1,054			—			—		—			1,054			989		—		—		(21		)	968
Total operating income	11,886			1,212			—		(41		)	13,057			12,058		1,161		—		(149		)	13,070
Expenses:
Interest expense	1,044			—			—		—			1,044			1,335		—		—		(90		)	1,245
Salaries and employee benefits	4,355			479			—		—			4,834			3,877		564		—		—			4,441
Provision for (recovery of) loan losses	(432		)	—			—		—			(432		)	550		—		—		—			550
Other	2,465			2,016			—		(41		)	4,440			3,722		287		—		(59		)	3,950
Total operating expenses	7,432			2,495			—		(41		)	9,886			9,484		851		—		(149		)	10,186
Income before income taxes and non-controlling interest	4,454			(1,283		)	—		—			3,171			2,574		310		—		—			2,884
Income tax expense	722			128			—		—			850			635		128		—		—			763
Net Income	3,732			(1,411		)	—		—			2,321			1,939		182		—		—			2,121
Non-controlling interest in income of consolidated subsidiary	—			—			—		—			—			—		—		—		—			—
Net income attributable to Middleburg Financial Corporation	$	3,732		$	(1,411	)	$	—	$	—		$	2,321		$	1,939	$	182	$	—	$	—		$	2,121
Total assets	$	1,259,205		$	6,615		$	—	$	(4,530	)	$	1,261,290		$	1,322,493	$	12,505	$	—	$	(127,271	)	$	1,207,727
Capital expenditures	$	285		$	—		$	—	$	—		$	285		$	307	$	1	$	3	$	—		$	311
Goodwill and other intangibles	$	—		$	3,679		$	—	$	—		$	3,679		$	—	$	3,850	$	—	$	—		$	3,850

	For the Nine Months Ended														For the Nine Months Ended
	September 30, 2015														September 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	$	31,746		$	8		$	—	$	—		$	31,754		$	32,665	$	11	$	450		$	(288	)	$	32,838
Trust and investment fee income	415			3,752			—		(123		)	4,044			479		3,339		—			(115		)	3,703
Other income	3,753			—			—		—			3,753			3,657		—		5,121			(46		)	8,732
Total operating income	35,914			3,760			—		(123		)	39,551			36,801		3,350		5,571			(449		)	45,273
Expenses:
Interest expense	3,151			—			—		—			3,151			4,055		—		304			(288		)	4,071
Salaries and employee benefits	13,045			1,619			—		—			14,664			11,996		1,699		3,772			—			17,467
Provision for (recovery of) loan losses	(407		)	—			—		—			(407		)	1,476		—		34			—			1,510
Other	10,126			2,585			—		(123		)	12,588			11,792		837		1,722			(161		)	14,190
Total operating expenses	25,915			4,204			—		(123		)	29,996			29,319		2,536		5,832			(449		)	37,238
Income before income taxes and non-controlling interest	9,999			(444		)	—		—			9,555			7,482		814		(261		)	—			8,035
Income tax expense	2,063			443			—		—			2,506			1,847		332		—			—			2,179
Net Income	7,936			(887		)	—		—			7,049			5,635		482		(261		)	—			5,856
Non-controlling interest in (income) loss of consolidated subsidiary	—			—			—		—			—			—		—		98			—			98
Net income attributable to Middleburg Financial Corporation	$	7,936		$	(887	)	$	—	$	—		$	7,049		$	5,635	$	482	$	(163	)	$	—		$	5,954
Total assets	$	1,259,205		$	6,615		$	—	$	(4,530	)	$	1,261,290		$	1,322,493	$	12,505	$	—		$	(127,271	)	$	1,207,727
Capital expenditures	$	2,756		$	—		$	—	$	—		$	2,756		$	748	$	11	$	3		$	—		$	762
Goodwill and other intangibles	$	—		$	3,679		$	—	$	—		$	3,679		$	—	$	3,850	$	—		$	—		$	3,850