Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 22. Segment Reporting

The Company has three reportable segments: retail banking; wealth management; and mortgage banking.  Revenue from retail banking activity consists primarily of interest earned on loans and investment securities and service charges on deposit accounts.

Revenues from trust and investment advisory services are composed of fees based upon the market value of assets under administration.  The trust and investment advisory services are conducted by Middleburg Trust Company, which is a wholly owned subsidiary of the Company.

Information about reportable segments and reconciliation to the consolidated financial statements follows:

	2011
	Commercial & Retail Banking		Wealth Management		Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:	(In Thousands)
Interest income	$	47,080	$	14	$	2,931		$	(1,389	)	$	48,636
Wealth management fees		-		4,512		-			(121	)		4,391
Other income		3,521		-		18,629			(131	)		22,019
Total operating income		50,601		4,526		21,560			(1,641	)		75,046
Expenses:
Interest expense		10,374		-		1,706			(1,389	)		10,691
Salaries and employee benefits		15,390		2,731		15,700			-			33,821
Provision for loan losses		3,141		-		(257	)		-			2,884
Other expense		15,531		1,232		5,127			(252	)		21,638
Total operating expenses		44,436		3,963		22,276			(1,641	)		69,034
Income (loss) before income taxes and non-controlling interest		6,165		563		(716	)		-			6,012
Income tax expense (benefit)		1,230		120		-			-			1,350
Net income (loss)		4,935		443		(716	)		-			4,662
Non-controlling interest in consolidated subsidiary		-		-		298			-			298
Net income (loss) attributable to Middleburg Financial Corporation	$	4,935	$	443	$	(418	)	$	-		$	4,960
Total assets	$	1,262,358	$	5,975	$	101,876		$	(177,349	)	$	1,192,860
Capital expenditures		1,197		3		151						1,351
Goodwill and other intangibles		-		4,322		1,867			-			6,189

	2010
	Commercial & Retail Banking			Wealth Management			Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:	(In Thousands)
Interest income	$	47,098		$	9		$	2,315		$	(1,391	)	$	48,031
Wealth management fees		-			4,060			-			(103	)		3,957
Other income		2,703			-			19,354			(11	)		22,046
Total operating income		49,801			4,069			21,669			(1,505	)		74,034
Expenses:
Interest expense		13,783			-			1,782			(1,390	)		14,175
Salaries and employee benefits		12,887			2,866			13,841			-			29,594
Provision for loan losses		11,122			-			883			-			12,005
Other expense		17,589			1,356			4,318			(115	)		23,148
Total operating expenses		55,381			4,222			20,824			(1,505	)		78,922
Income (loss) before income taxes and non-controlling interest		(5,580	)		(153	)		845			-			(4,888	)
Income tax expense (benefit)		(2,575	)		13			-			-			(2,562	)
Net income (loss)		(3,005	)		(166	)		845			-			(2,326	)
Non-controlling interest in consolidated subsidiary		-			-			(362	)		-			(362	)
Net income (loss) attributable to Middleburg Financial Corporation	$	(3,005	)	$	(166	)	$	483		$	-		$	(2,688	)
Total assets	$	1,081,231		$	5,931		$	70,512		$	(53,107	)	$	1,104,567
Capital expenditures		852			-			87						939
Goodwill and other intangibles		-			4,493			1,867			-			6,360

	2009
	Commercial & Retail Banking		Wealth Management			Mortgage Banking			Intercompany Eliminations			Consolidated
Revenues:	(In Thousands)
Interest income	$	49,143	$	8		$	8,855		$	(1,260	)	$	56,746
Wealth management fees		-		3,873			-			(76	)		3,797
Other income		3,965		-			13,228			(78	)		17,115
Total operating income		53,108		3,881			22,083			(1,414	)		77,658
Expenses:
Interest expense		18,495		-			1,846			(1,259	)		19,082
Salaries and employee benefits		12,559		2,895			12,560			28			28,042
Provision for loan losses		4,564		-			(13	)		-			4,551
Other expense		15,492		1,500			4,011			(183	)		20,820
Total operating expenses		51,110		4,395			18,404			(1,414	)		72,495
Income (loss) before income taxes and non-controlling interest		1,998		(514	)		3,679			-			5,163
Income tax expense		255		(191	)		-			-			64
Net income (loss)		1,743		(323	)		3,679			-			5,099
Non-controlling interest in consolidated subsidiary		-		-			(1,577	)		-			(1,577	)
Net income (loss) attributable to Middleburg Financial Corporation	$	1,743	$	(323	)	$	2,102		$	-		$	3,522
Total assets	$	966,004	$	6,293		$	56,978		$	(52,901	)	$	976,374
Capital expenditures		1,922		11			46			-			1,979
Goodwill and other intangibles		-		4,664			1,867			-			6,531