Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates its principal business activities of retail banking services and wealth management services in a decentralized fashion. Revenue from retail banking activity consists primarily of interest and fees earned on loans, including mortgage banking activity, interest earned on 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.

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 Trust Company pays rental and other miscellaneous occupancy expenses to Middleburg Bank. 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, 2016 and 2015, respectively:

	For the Three Months Ended											For the Three Months Ended
	June 30, 2016											June 30, 2015
(In Thousands)	Retail Banking			Wealth Management		Intercompany Eliminations			Consolidated			Retail Banking			Wealth Management		Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	11,099		$	3	$	—		$	11,102		$	10,350		$	2	$	—		$	10,352
Trust and investment fee income	—			1,173		(41		)	1,132			—			1,284		(41		)	1,243
Other income	1,266			—		(28		)	1,238			995			—		—			995
Total operating income	12,365			1,176		(69		)	13,472			11,345			1,286		(41		)	12,590
Expenses:
Interest expense	1,133			—		—			1,133			1,039			—		—			1,039
Salaries and employee benefits	4,052			561		—			4,613			4,367			606		—			4,973
Provision for (recovery of) loan losses	50			—		—			50			(425		)	—		—			(425		)
Other	4,028			179		(69		)	4,138			3,661			288		(41		)	3,908
Total operating expenses	9,263			740		(69		)	9,934			8,642			894		(41		)	9,495
Income before income taxes	3,102			436		—			3,538			2,703			392		—			3,095
Income tax expense	722			163		—			885			667			148		—			815
Net Income	$	2,380		$	273	$	—		$	2,653		$	2,036		$	244	$	—		$	2,280
Total assets	$	1,310,589		$	6,336	$	(2,589	)	$	1,314,336		$	1,238,148		$	6,532	$	(2,695	)	$	1,241,985
Capital expenditures	$	(28	)	$	—	$	—		$	(28	)	$	2,320		$	—	$	—		$	2,320
Goodwill and other intangibles	$	—		$	3,550	$	—		$	3,550		$	—		$	3,722	$	—		$	3,722

	For the Six Months Ended									For the Six Months Ended
	June 30, 2016									June 30, 2015
(In Thousands)	Retail Banking		Wealth Management		Intercompany Eliminations			Consolidated		Retail Banking		Wealth Management		Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	21,969	$	5	$	—		$	21,974	$	21,046	$	5	$	—		$	21,051
Trust and investment fee income	—		2,374		(84		)	2,290		—		2,543		(82		)	2,461
Other income	2,343		—		(55		)	2,288		2,632		—		—			2,632
Total operating income	24,312		2,379		(139		)	26,552		23,678		2,548		(82		)	26,144
Expenses:
Interest expense	2,256		—		—			2,256		2,107		—		—			2,107
Salaries and employee benefits	8,337		1,088		—			9,425		8,681		1,140		—			9,821
Provision for loan losses	350		—		—			350		25		—		—			25
Other	8,013		466		(139		)	8,340		7,320		569		(82		)	7,807
Total operating expenses	18,956		1,554		(139		)	20,371		18,133		1,709		(82		)	19,760
Income before income taxes	5,356		825		—			6,181		5,545		839		—			6,384
Income tax expense	1,163		310		—			1,473		1,341		315		—			1,656
Net Income	$	4,193	$	515	$	—		$	4,708	$	4,204	$	524	$	—		$	4,728
Total assets	$	1,310,589	$	6,336	$	(2,589	)	$	1,314,336	$	1,238,148	$	6,532	$	(2,695	)	$	1,241,985
Capital expenditures	$	97	$	—	$	—		$	97	$	2,471	$	—	$	—		$	2,471
Goodwill and other intangibles	$	—	$	3,550	$	—		$	3,550	$	—	$	3,722	$	—		$	3,722