Segment Reporting

9 Months Ended

Sep. 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 nine months ended September 30, 2016 and 2015, respectively:

	For the Three Months Ended											For the Three Months Ended
	September 30, 2016											September 30, 2015
(In Thousands)	Retail Banking			Wealth Management		Intercompany Eliminations			Consolidated			Retail Banking			Wealth Management		Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	10,803		$	3	$	(69	)	$	10,737		$	10,700		$	3	$	—		$	10,703
Trust and investment fee income	—			1,208		(40		)	1,168			—			1,210		(42		)	1,168
Other income	1,103			—		(27		)	1,076			1,003			—		—			1,003
Total operating income	11,906			1,211		(136		)	12,981			11,703			1,213		(42		)	12,874
Expenses:
Interest expense	1,189			—		(69		)	1,120			1,044			—		—			1,044
Salaries and employee benefits	4,146			581		—			4,727			4,194			599		—			4,793
Provision for (recovery of) loan losses	(297		)	—		—			(297		)	(432		)	—		—			(432		)
Other	4,286			228		(67		)	4,447			4,256			84		(42		)	4,298
Total operating expenses	9,324			809		(136		)	9,997			9,062			683		(42		)	9,703
Income before income taxes	2,582			402		—			2,984			2,641			530		—			3,171
Income tax expense	567			153		—			720			722			128		—			850
Net Income	$	2,015		$	249	$	—		$	2,264		$	1,919		$	402	$	—		$	2,321
Total assets	$	1,331,515		$	6,537	$	(3,050	)	$	1,335,002		$	1,259,205		$	6,615	$	(4,530	)	$	1,261,290
Capital expenditures	$	153		$	—	$	—		$	153		$	285		$	—	$	—		$	285
Goodwill and other intangibles	$	—		$	3,507	$	—		$	3,507		$	—		$	3,679	$	—		$	3,679

	For the Nine Months Ended									For the Nine Months Ended
	September 30, 2016									September 30, 2015
(In Thousands)	Retail Banking		Wealth Management		Intercompany Eliminations			Consolidated		Retail Banking			Wealth Management		Intercompany Eliminations			Consolidated
Revenues:
Interest income	$	32,772	$	8	$	(69	)	$	32,711	$	31,746		$	8	$	—		$	31,754
Trust and investment fee income	—		3,582		(124		)	3,458		—			3,753		(124		)	3,629
Other income	3,446		—		(82		)	3,364		3,635			—		—			3,635
Total operating income	36,218		3,590		(275		)	39,533		35,381			3,761		(124		)	39,018
Expenses:
Interest expense	3,445		—		(69		)	3,376		3,151			—		—			3,151
Salaries and employee benefits	12,483		1,669		—			14,152		12,805			1,739		—			14,544
Provision for (recovery of) loan losses	53		—		—			53		(407		)	—		—			(407		)
Other	12,299		694		(206		)	12,787		11,646			653		(124		)	12,175
Total operating expenses	28,280		2,363		(275		)	30,368		27,195			2,392		(124		)	29,463
Income before income taxes	7,938		1,227		—			9,165		8,186			1,369		—			9,555
Income tax expense	1,730		463		—			2,193		2,063			443		—			2,506
Net Income	$	6,208	$	764	$	—		$	6,972	$	6,123		$	926	$	—		$	7,049
Total assets	$	1,331,515	$	6,537	$	(3,050	)	$	1,335,002	$	1,259,205		$	6,615	$	(4,530	)	$	1,261,290
Capital expenditures	$	250	$	—	$	—		$	250	$	2,756		$	—	$	—		$	2,756
Goodwill and other intangibles	$	—	$	3,507	$	—		$	3,507	$	—		$	3,679	$	—		$	3,679