Virginia
(State or other jurisdiction
of incorporation)
|
0-24159
(Commission File Number)
|
54-1696103
(I.R.S. Employer
Identification No.)
|
|
111 West Washington Street
Middleburg, Virginia
(Address of principal executive offices)
|
20117
(Zip Code)
|
99.1
|
Press release dated July 31, 2012.
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||
(Registrant)
|
||||
Date: July 31, 2012
|
By:
|
/s/ Gary R. Shook
|
||
Gary R. Shook
|
||||
President and Chief Executive Officer
|
||||
|
99.1
|
Press release dated July 31, 2012.
|
Press Contacts:
|
Gary R. Shook, President & CEO
|
540-687-4801 or
|
pres@middleburgbank.com
|
||
Raj Mehra, EVP & CFO
|
540-687-4816 or
|
|
cfo@middleburgbank.com
|
||
Jeffrey H. Culver, EVP & COO
|
703-737-3470 or
|
|
coo@middleburgbank.com
|
·
|
Net income of $1.8 million or $0.25 per diluted share, compared to $1.2 million or $0.17 per diluted share for the second quarter of 2011;
|
·
|
Net interest margin of 3.57%, compared to 3.78% for the second quarter of 2011;
|
·
|
Gain-on-sale revenue from mortgages increased 89.7% compared to the second quarter of 2011;
|
·
|
Total revenue of $16.8 million, an increase of 20.2% over the second quarter of 2011;
|
·
|
Total assets of $1.2 billion, an increase of 2.2% over December 31, 2011;
|
·
|
Deposits increased by $45.4 million or 4.9% since December 31, 2011;
|
·
|
Provision for loan losses decreased by 32.8% compared to second quarter of 2011; and
|
·
|
Capital ratios continue to be strong: Tangible Common Equity Ratio of 8.6%, Total Risk-Based Capital Ratio of 14.9%, Tier 1 Risk-Based Capital Ratio of 13.7%, and a Tier 1 Leverage Ratio of 9.0% at June 30, 2012.
|
MIDDLEBURG FINANCIAL CORPORATION | |||||
Risk-Based Capital Ratios | |||||
June 30, 2012 | |||||
(1)
|
MFC
|
||||
Regulatory
|
Excess
|
||||
Minimum
|
MFC
|
over
|
|||
Requirement
|
Ratios
|
Minimum
|
|||
Tier 1 Leverage Ratio
|
4.0%
|
9.0%
|
5.0%
|
||
Tier 1 Risk-Based Capital Ratio
|
4.0%
|
13.7%
|
9.7%
|
||
Total Risk-Based Capital Ratio
|
8.0%
|
14.9%
|
6.9%
|
||
(1) Under the regulatory framework for prompt corrective action. |
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||
Consolidated Balance Sheets
|
||||||||||||
(In thousands, except for share and per share data)
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||
June 30,
|
March 31,
|
December 31,
|
||||||||||
2012
|
2012
|
2011
|
||||||||||
ASSETS
|
||||||||||||
Cash and due from banks
|
$ | 5,934 | $ | 6,514 | $ | 6,163 | ||||||
Interest-bearing deposits with other institutions
|
72,877 | 38,523 | 45,107 | |||||||||
Total cash and cash equivalents
|
78,811 | 45,037 | 51,270 | |||||||||
Securities available for sale
|
314,530 | 323,584 | 308,242 | |||||||||
Loans held for sale
|
67,965 | 81,027 | 92,514 | |||||||||
Restricted securities, at cost
|
7,167 | 7,665 | 7,117 | |||||||||
Loans receivable, net of allowance for loan losses of $14,969 at June 30,
|
||||||||||||
2012, $14,861 at March 31, 2012, and $14,623 at December 31, 2011
|
670,941 | 667,508 | 656,770 | |||||||||
Premises and equipment, net
|
21,021 | 21,099 | 21,306 | |||||||||
Goodwill and identified intangibles
|
6,103 | 6,146 | 6,189 | |||||||||
Other real estate owned, net of valuation allowance of $1,982 at June 30,
|
||||||||||||
2012, $1,492 at March 31, 2012, and $1,522 at December 31, 2011
|
13,335 | 12,095 | 8,535 | |||||||||
Prepaid federal deposit insurance
|
3,510 | 3,753 | 3,993 | |||||||||
Accrued interest receivable and other assets
|
35,467 | 35,297 | 36,924 | |||||||||
TOTAL ASSETS
|
$ | 1,218,850 | $ | 1,203,211 | $ | 1,192,860 | ||||||
LIABILITIES
|
||||||||||||
Deposits:
|
||||||||||||
Non-interest-bearing demand deposits
|
$ | 154,838 | $ | 150,385 | $ | 143,398 | ||||||
Savings and interest-bearing demand deposits
|
509,291 | 475,138 | 460,576 | |||||||||
Time deposits
|
311,156 | 326,249 | 325,895 | |||||||||
Total deposits
|
975,285 | 951,772 | 929,869 | |||||||||
Securities sold under agreements to repurchase
|
33,034 | 32,154 | 31,686 | |||||||||
Short-term borrowings
|
8,393 | 14,166 | 28,331 | |||||||||
FHLB borrowings
|
77,912 | 82,912 | 82,912 | |||||||||
Subordinated notes
|
5,155 | 5,155 | 5,155 | |||||||||
Accrued interest payable and other liabilities
|
7,066 | 7,457 | 6,894 | |||||||||
Commitments and contingent liabilities
|
- | - | - | |||||||||
TOTAL LIABILITIES
|
1,106,845 | 1,093,616 | 1,084,847 | |||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||
Common stock ($2.50 par value; 20,000,000 shares authorized,
|
||||||||||||
7,052,554, 7,005,315 and 6,996,932 issued and outstanding at
|
||||||||||||
June 30, 2012, March 31, 2012, and December 31, 2011, respectively)
|
17,364 | 17,359 | 17,331 | |||||||||
Capital surplus
|
43,616 | 43,551 | 43,498 | |||||||||
Retained earnings
|
43,805 | 42,389 | 41,157 | |||||||||
Accumulated other comprehensive income
|
5,100 | 4,582 | 3,926 | |||||||||
Total Middleburg Financial Corporation shareholders' equity
|
109,885 | 107,881 | 105,912 | |||||||||
Non-controlling interest in consolidated subsidiary
|
2,120 | 1,714 | 2,101 | |||||||||
TOTAL SHAREHOLDERS' EQUITY
|
112,005 | 109,595 | 108,013 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 1,218,850 | $ | 1,203,211 | $ | 1,192,860 | ||||||
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||
(In thousands, except for per share data)
|
||||||||||||||||
|
||||||||||||||||
Unaudited
|
Unaudited
|
|||||||||||||||
For the Six Months
|
For the Three Months
|
|||||||||||||||
Ended June 30,
|
Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
INTEREST AND DIVIDEND INCOME
|
||||||||||||||||
Interest and fees on loans
|
$ | 19,547 | $ | 19,466 | $ | 9,616 | $ | 9,731 | ||||||||
Interest and dividends on securities available for sale
|
||||||||||||||||
Taxable
|
3,439 | 3,150 | 1,704 | 1,751 | ||||||||||||
Tax-exempt
|
1,203 | 1,165 | 596 | 604 | ||||||||||||
Dividends
|
89 | 72 | 45 | 36 | ||||||||||||
Interest on deposits in banks and federal funds sold
|
49 | 60 | 25 | 33 | ||||||||||||
Total interest and dividend income
|
24,327 | 23,913 | 11,986 | 12,155 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest on deposits
|
3,739 | 4,640 | 1,846 | 2,332 | ||||||||||||
Interest on securities sold under agreements to
|
||||||||||||||||
repurchase
|
167 | 125 | 84 | 69 | ||||||||||||
Interest on short-term borrowings
|
237 | 116 | 89 | 53 | ||||||||||||
Interest on FHLB borrowings and other debt
|
584 | 602 | 287 | 306 | ||||||||||||
Total interest expense
|
4,727 | 5,483 | 2,306 | 2,760 | ||||||||||||
NET INTEREST INCOME
|
19,600 | 18,430 | 9,680 | 9,395 | ||||||||||||
Provision for loan losses
|
1,522 | 1,541 | 730 | 1,087 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION
|
||||||||||||||||
FOR LOAN LOSSES
|
18,078 | 16,889 | 8,950 | 8,308 | ||||||||||||
NONINTEREST INCOME
|
||||||||||||||||
Service charges on deposit accounts
|
1,068 | 1,015 | 538 | 526 | ||||||||||||
Trust services income
|
1,900 | 1,850 | 979 | 983 | ||||||||||||
Gains on loans held for sale
|
8,822 | 6,785 | 5,053 | 3,938 | ||||||||||||
Gains on securities available for sale, net
|
288 | 122 | 148 | 87 | ||||||||||||
Total other-than-temporary impairment losses
|
(46 | ) | (17 | ) | (36 | ) | - | |||||||||
Portion of loss recognized in other
|
||||||||||||||||
comprehensive income
|
46 | 16 | 36 | - | ||||||||||||
Net other than temporary impairment losses
|
- | (1 | ) | - | - | |||||||||||
Commissions on investment sales
|
272 | 365 | 125 | 185 | ||||||||||||
Fees on mortgages held for sale
|
106 | 241 | 64 | 87 | ||||||||||||
Other service charges, commissions and fees
|
271 | 249 | 121 | 134 | ||||||||||||
Bank-owned life insurance
|
245 | 262 | 123 | 139 | ||||||||||||
Other operating income (expense)
|
12 | 105 | (2 | ) | (55 | ) | ||||||||||
Total noninterest income
|
12,984 | 10,993 | 7,149 | 6,024 | ||||||||||||
NONINTEREST EXPENSE
|
||||||||||||||||
Salaries and employees' benefits
|
14,863 | 15,129 | 7,506 | 7,813 | ||||||||||||
Net occupancy and equipment expense
|
3,533 | 3,316 | 1,755 | 1,640 | ||||||||||||
Advertising
|
747 | 441 | 447 | 285 | ||||||||||||
Computer operations
|
779 | 708 | 394 | 343 | ||||||||||||
Other real estate owned
|
1,160 | 950 | 874 | 606 | ||||||||||||
Other taxes
|
408 | 402 | 205 | 205 | ||||||||||||
Federal deposit insurance expense
|
519 | 765 | 261 | 358 | ||||||||||||
Other operating expenses
|
4,616 | 3,478 | 1,869 | 1,703 | ||||||||||||
Total noninterest expense
|
26,625 | 25,189 | 13,311 | 12,953 | ||||||||||||
Income before income taxes
|
4,437 | 2,693 | 2,788 | 1,379 | ||||||||||||
Income tax expense
|
1,014 | 618 | 598 | 301 | ||||||||||||
NET INCOME
|
3,423 | 2,075 | 2,190 | 1,078 | ||||||||||||
Net (income) loss attributable to non-
|
||||||||||||||||
controlling interest
|
(72 | ) | 351 | (421 | ) | 121 | ||||||||||
Net income attributable to Middleburg
|
||||||||||||||||
Financial Corporation
|
$ | 3,351 | $ | 2,426 | $ | 1,769 | $ | 1,199 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 0.48 | $ | 0.35 | $ | 0.25 | $ | 0.17 | ||||||||
Diluted
|
$ | 0.48 | $ | 0.35 | $ | 0.25 | $ | 0.17 | ||||||||
Dividends per common share
|
$ | 0.10 | $ | 0.10 | $ | 0.05 | $ | 0.05 |
QUARTERLY SUMMARY STATEMENTS OF INCOME
|
||||||||||||||||||||
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||
(Unaudited. Dollars in thousands except per share data)
|
||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
||||||||||||||||
Interest and Dividend Income
|
||||||||||||||||||||
Interest and fees on loans
|
$ | 9,616 | $ | 9,931 | $ | 10,014 | $ | 9,912 | $ | 9,731 | ||||||||||
Interest on tax-exempt investment securities
|
- | - | - | - | - | |||||||||||||||
Interest and dividends on securities available for sale
|
||||||||||||||||||||
Taxable
|
1,704 | 1,735 | 1,750 | 1,727 | 1,751 | |||||||||||||||
Tax Exempt
|
596 | 607 | 606 | 592 | 604 | |||||||||||||||
Dividends
|
45 | 44 | 36 | 36 | 36 | |||||||||||||||
Interest on deposits in banks and federal funds sold
|
25 | 24 | 20 | 30 | 33 | |||||||||||||||
Total interest and dividend income
|
$ | 11,986 | $ | 12,341 | $ | 12,426 | $ | 12,297 | $ | 12,155 | ||||||||||
Interest Expense
|
||||||||||||||||||||
Interest on deposits
|
$ | 1,846 | $ | 1,893 | $ | 1,940 | $ | 2,287 | $ | 2,332 | ||||||||||
Interest on securities sold under agreements to repurchase
|
84 | 83 | 84 | 84 | 69 | |||||||||||||||
Interest on short-term borrowings
|
89 | 148 | 144 | 58 | 53 | |||||||||||||||
Interest on FHLB borrowings and other debt
|
287 | 297 | 299 | 312 | 306 | |||||||||||||||
Total interest expense
|
$ | 2,306 | $ | 2,421 | $ | 2,467 | $ | 2,741 | $ | 2,760 | ||||||||||
Net interest income
|
$ | 9,680 | $ | 9,920 | $ | 9,959 | $ | 9,556 | $ | 9,395 | ||||||||||
Provision for loan losses
|
730 | 792 | 319 | 1,024 | 1,087 | |||||||||||||||
Net interest income after provision
|
||||||||||||||||||||
for loan losses
|
$ | 8,950 | $ | 9,128 | $ | 9,640 | $ | 8,532 | $ | 8,308 | ||||||||||
Non-Interest Income
|
||||||||||||||||||||
Trust services income
|
$ | 979 | $ | 921 | $ | 911 | $ | 932 | $ | 926 | ||||||||||
Service charges on deposit accounts
|
538 | 530 | 542 | 538 | 526 | |||||||||||||||
Net gains on securities available for sale (1)
|
148 | 140 | 197 | 141 | 87 | |||||||||||||||
Total other-than-temporary impairment gain (loss) on securities
|
(36 | ) | (10 | ) | 6 | (16 | ) | - | ||||||||||||
Portion of (gain) loss recognized in other comprehensive income
|
36 | 10 | (9 | ) | (5 | ) | - | |||||||||||||
Net other-than-temporary impairment loss
|
- | - | (3 | ) | (21 | ) | - | |||||||||||||
Commissions on investment sales (1)
|
125 | 147 | 101 | 100 | 98 | |||||||||||||||
Bank owned life insurance
|
123 | 122 | 101 | 123 | 139 | |||||||||||||||
Gains on loans held for sale
|
5,053 | 3,769 | 4,294 | 3,780 | 2,664 | |||||||||||||||
Fees on mortgages held for sale
|
64 | 42 | 8 | 84 | 87 | |||||||||||||||
Other operating income
|
119 | 164 | 220 | 104 | 79 | |||||||||||||||
Total non-interest income
|
$ | 7,149 | $ | 5,835 | $ | 6,371 | $ | 5,781 | $ | 4,606 | ||||||||||
Non-Interest Expense
|
||||||||||||||||||||
Salaries and employee benefits (2)
|
$ | 7,506 | $ | 7,357 | $ | 8,470 | $ | 6,900 | $ | 6,452 | ||||||||||
Net occupancy and equipment expense
|
1,755 | 1,778 | 1,732 | 1,700 | 1,640 | |||||||||||||||
Other taxes
|
205 | 203 | 205 | 205 | 205 | |||||||||||||||
Advertising
|
447 | 300 | 512 | 446 | 285 | |||||||||||||||
Computer operations
|
394 | 385 | 428 | 365 | 343 | |||||||||||||||
Other real estate owned
|
874 | 286 | 925 | 689 | 606 | |||||||||||||||
Audits and examinations
|
||||||||||||||||||||
Legal fees
|
||||||||||||||||||||
Federal deposit insurance expense
|
261 | 258 | 251 | 244 | 358 | |||||||||||||||
Other operating expenses
|
1,869 | 2,747 | 2,244 | 1,689 | 1,646 | |||||||||||||||
Total non-interest expense
|
$ | 13,311 | $ | 13,314 | $ | 14,767 | $ | 12,238 | $ | 11,535 | ||||||||||
|
||||||||||||||||||||
Income before income taxes
|
$ | 2,788 | $ | 1,649 | $ | 1,244 | $ | 2,075 | $ | 1,379 | ||||||||||
Income tax expense
|
598 | 416 | 278 | 454 | 301 | |||||||||||||||
Net income
|
$ | 2,190 | $ | 1,233 | $ | 966 | $ | 1,621 | $ | 1,078 | ||||||||||
Less: Net (income) loss attributable to non-controlling interest
|
(421 | ) | 349 | 170 | (223 | ) | 121 | |||||||||||||
Net income attributable to Middleburg Financial Corporation
|
$ | 1,769 | $ | 1,582 | $ | 1,136 | $ | 1,398 | $ | 1,199 | ||||||||||
Net income per common share, basic
|
$ | 0.25 | $ | 0.23 | $ | 0.16 | $ | 0.20 | $ | 0.17 | ||||||||||
Net income per common share, diluted
|
$ | 0.25 | $ | 0.23 | $ | 0.16 | $ | 0.20 | $ | 0.17 | ||||||||||
Dividends per common share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
(1)
|
As of March 31, 2012, amounts presented are net of commissions paid to generate these revenue sources. Prior periods have been restated to conform to this presentation.
|
(2)
|
As of March 31, 2012, salaries and employee benefit expenses exclude commissions paid on mortgage loan originations and investment sales. These commissions are netted against their respective revenue amounts in the statements of income. Prior periods have been restated to reflect this presentation.
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||
KEY STATISTICS
|
||||||||||||||||||||
(Unaudited. Dollars in thousands except per share data)
|
For the Three Months Ended
|
|||||||||||||||||||
Jun 30, 2012
|
Mar 31, 2012
|
Dec 31, 2011
|
Sep 30, 2011
|
Jun 30, 2011
|
||||||||||||||||
Net income
|
$ | 1,769 | $ | 1,582 | $ | 1,136 | $ | 1,398 | $ | 1,199 | ||||||||||
Earnings per share, basic
|
$ | 0.25 | $ | 0.23 | $ | 0.16 | $ | 0.20 | $ | 0.17 | ||||||||||
Earnings per share, diluted
|
$ | 0.25 | $ | 0.23 | $ | 0.16 | $ | 0.20 | $ | 0.17 | ||||||||||
Dividend per share
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
Return on average total assets - Year to Date
|
0.57 | % | 0.54 | % | 0.44 | % | 0.46 | % | 0.45 | % | ||||||||||
Return on average total equity - Year to Date
|
6.21 | % | 5.95 | % | 4.87 | % | 5.07 | % | 4.95 | % | ||||||||||
Dividend payout ratio
|
19.87 | % | 22.11 | % | 30.80 | % | 25.00 | % | 29.41 | % | ||||||||||
Non-interest revenue to total revenue (1)
|
41.97 | % | 36.47 | % | 38.27 | % | 37.12 | % | 32.48 | % | ||||||||||
Net interest margin (2)
|
3.57 | % | 3.69 | % | 3.67 | % | 3.64 | % | 3.78 | % | ||||||||||
Yield on average earning assets
|
4.40 | % | 4.56 | % | 4.55 | % | 4.66 | % | 4.86 | % | ||||||||||
Yield on average interest-bearing liabilities
|
1.00 | % | 1.06 | % | 1.07 | % | 1.21 | % | 1.26 | % | ||||||||||
Net interest spread
|
3.40 | % | 3.50 | % | 3.48 | % | 3.45 | % | 3.60 | % | ||||||||||
Non-interest income to average assets (3)
|
2.35 | % | 1.93 | % | 2.10 | % | 1.97 | % | 1.63 | % | ||||||||||
Non-interest expense to average assets (3)
|
4.47 | % | 4.50 | % | 5.03 | % | 4.28 | % | 4.16 | % | ||||||||||
Efficiency ratio - QTD (Tax Equiv) (4)
|
72.68 | % | 77.24 | % | 83.64 | % | 73.92 | % | 76.51 | % | ||||||||||
(1)
|
Excludes securities gains and losses including OTTI adjustments.
|
(2)
|
The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34%. The Company’s net interest margin is a common measure used by the financial service industry to determine how profitably earning assets are funded. Because the Company earns a fair amount of non taxable interest income due to the mix of securities in its investment security portfolio, net interest income for the ratio is calculated on a tax equivalent basis as described above. This calculation excludes net securities gains and losses.
|
(3)
|
Ratios are computed by dividing annualized income and expense amounts by quarterly average assets.
|
(4)
|
The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non interest expense (adjusted for amortization of intangibles, other real estate expenses, and non-recurring one-time charges) by the sum of tax equivalent net interest income and non interest income excluding gains and losses on the investment portfolio. The tax rate utilized in calculating tax equivalent amounts is 34%. The Company calculates and reviews this ratio as a means of evaluating operational efficiency. Prior to March 31, 2012, the Company did not exclude amortization of intangibles and other real estate expenses from total non-interest expense. The efficiency ratios for the periods ended December 31, 2011and prior have been restated for consistency of presentation purposes.
|
MIDDLEBURG FINANCIAL CORPORATION
|
||||||||||||||||||||
SELECTED FINANCIAL DATA BY QUARTER
|
||||||||||||||||||||
(Unaudited. Dollars in thousands except per share data)
|
Jun 30, 2012
|
Mar 31, 2012
|
Dec 31, 2011
|
Sep 30, 2011
|
Jun 30, 2011
|
|||||||||||||||
BALANCE SHEET RATIOS
|
||||||||||||||||||||
Loans to deposits (Including HFS)
|
77.30 | % | 80.21 | % | 82.15 | % | 81.65 | % | 80.02 | % | ||||||||||
Portfolio loans to deposits
|
70.33 | % | 71.69 | % | 72.20 | % | 74.29 | % | 74.66 | % | ||||||||||
Average interest-earning assets to
|
||||||||||||||||||||
average-interest bearing liabilities
|
121.73 | % | 120.99 | % | 121.22 | % | 119.85 | % | 117.42 | % | ||||||||||
PER SHARE DATA
|
||||||||||||||||||||
Dividends
|
$ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
Book value (MFC Shareholders)
|
$ | 15.57 | $ | 15.40 | $ | 15.13 | $ | 15.04 | $ | 14.68 | ||||||||||
Tangible book value (3)
|
$ | 14.71 | $ | 14.52 | $ | 14.24 | $ | 14.15 | $ | 13.78 | ||||||||||
SHARE PRICE DATA
|
||||||||||||||||||||
Closing price
|
$ | 17.00 | $ | 15.71 | $ | 14.25 | $ | 15.00 | $ | 14.94 | ||||||||||
Diluted earnings multiple (1)
|
17.00 | 17.08 | 22.27 | 18.75 | 21.97 | |||||||||||||||
Book value multiple(2)
|
1.09 | 1.02 | 0.94 | 1.00 | 1.02 | |||||||||||||||
COMMON STOCK DATA
|
||||||||||||||||||||
Outstanding shares at end of period
|
7,052,554 | 7,005,315 | 6,996,932 | 6,996,932 | 6,996,932 | |||||||||||||||
Weighted average shares O/S Basic - QTD
|
7,030,639 | 6,994,858 | 6,996,932 | 6,996,932 | 6,977,503 | |||||||||||||||
Weighted average shares O/S, diluted - QTD
|
7,042,111 | 7,000,169 | 6,998,019 | 6,998,494 | 6,980,331 | |||||||||||||||
CAPITAL RATIOS
|
||||||||||||||||||||
Capital to Assets - Common shareholders
|
9.02 | % | 8.97 | % | 8.88 | % | 9.13 | % | 8.97 | % | ||||||||||
Capital to Assets - with Noncontrolling Interest
|
9.19 | % | 9.11 | % | 9.05 | % | 9.32 | % | 9.16 | % | ||||||||||
Tangible common equity ratio (4)
|
8.56 | % | 8.50 | % | 8.40 | % | 8.63 | % | 8.47 | % | ||||||||||
Leverage ratio
|
8.99 | % | 8.89 | % | 8.81 | % | 8.97 | % | 9.12 | % | ||||||||||
Tier 1 risk based capital ratio
|
13.66 | % | 13.57 | % | 13.46 | % | 12.87 | % | 12.90 | % | ||||||||||
Total risk based capital ratio
|
14.92 | % | 14.83 | % | 14.72 | % | 14.13 | % | 14.16 | % | ||||||||||
CREDIT QUALITY
|
||||||||||||||||||||
Net charge-offs to average total loans
|
0.08 | % | 0.07 | % | 0.11 | % | 0.13 | % | 0.08 | % | ||||||||||
Total non-performing loans to total portfolio loans
|
3.57 | % | 3.88 | % | 4.53 | % | 4.80 | % | 5.25 | % | ||||||||||
Total non-performing assets to total assets
|
3.10 | % | 3.21 | % | 3.27 | % | 3.34 | % | 3.66 | % | ||||||||||
Non-accrual loans to:
|
||||||||||||||||||||
total portfolio loans
|
2.74 | % | 3.26 | % | 3.78 | % | 4.51 | % | 4.76 | % | ||||||||||
total assets
|
1.54 | % | 1.85 | % | 2.12 | % | 2.64 | % | 2.82 | % | ||||||||||
Allowance for loan losses to:
|
||||||||||||||||||||
total portfolio loans
|
2.18 | % | 2.18 | % | 2.18 | % | 2.24 | % | 2.22 | % | ||||||||||
non-performing assets
|
39.56 | % | 38.53 | % | 37.53 | % | 39.24 | % | 35.98 | % | ||||||||||
non-accrual loans
|
79.61 | % | 66.80 | % | 57.69 | % | 49.61 | % | 46.67 | % | ||||||||||
NON-PERFORMING ASSETS:
|
||||||||||||||||||||
Loans delinquent over 90 days and still accruing
|
$ | 1,372 | $ | 167 | $ | 1,233 | $ | 1,561 | $ | 3,230 | ||||||||||
Non-accrual loans
|
18,802 | 22,247 | 25,346 | 30,485 | 32,298 | |||||||||||||||
Restructured loans (Not in non accrual)
|
4,334 | 4,056 | 3,853 | 404 | 112 | |||||||||||||||
Other real estate owned and repossessed assets
|
13,335 | 12,095 | 8,535 | 6,096 | 6,255 | |||||||||||||||
Total non-performing assets
|
$ | 37,843 | $ | 38,565 | $ | 38,967 | $ | 38,546 | $ | 41,895 | ||||||||||
NET LOAN CHARGE-OFFS:
|
||||||||||||||||||||
Loans charged off (QTD)
|
$ | 694 | $ | 700 | $ | 893 | $ | 1,017 | $ | 621 | ||||||||||
Recoveries (QTD)
|
(72 | ) | (146 | ) | (73 | ) | (44 | ) | (32 | ) | ||||||||||
Net charge-offs (QTD)
|
$ | 622 | $ | 554 | $ | 820 | $ | 973 | $ | 589 | ||||||||||
PROVISION FOR LOAN LOSSES
|
$ | 730 | $ | 792 | $ | 319 | $ | 1,024 | $ | 1,087 | ||||||||||
ALLOWANCE FOR LOAN LOSS SUMMARY
|
||||||||||||||||||||
Balance at the beginning of period
|
$ | 14,861 | $ | 14,623 | $ | 15,124 | $ | 15,073 | $ | 14,575 | ||||||||||
Provision
|
730 | 792 | 319 | 1,024 | 1,087 | |||||||||||||||
Net charge-offs
|
(622 | ) | (554 | ) | (820 | ) | (973 | ) | (589 | ) | ||||||||||
Balance at the end of period
|
$ | 14,969 | $ | 14,861 | $ | 14,623 | $ | 15,124 | $ | 15,073 |
(1)
|
The diluted earnings multiple is calculated by dividing the period’s closing market price per share by the annualized diluted earnings per share for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company’s earnings.
|
(2)
|
The book value multiple (or price to book ratio) is calculated by dividing the period’s closing market price per share by the period’s book value per share. The book value multiple is a measure used to compare the Company’s market value per share to its book value per share.
|
(3)
|
Tangible book value is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders’ equity and then dividing the result by the number of shares of common stock issued and outstanding at the end of the accounting period.
|
(4)
|
The tangible common equity ratio is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders’ equity and total assets and then dividing the adjusted shareholders’ equity balance by the adjusted total asset balance.
|
MIDDLEBURG FINANCIAL CORPORATION |
Average Balances, Income and Expenses, Yields and Rates |
Three Months Ended June 30,
|
||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate (2)
|
Balance
|
Expense
|
Rate (2)
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Assets :
|
||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
$ | 264,106 | $ | 1,749 | 2.66 | % | $ | 225,332 | $ | 1,787 | 3.18 | % | ||||||||||||
Tax-exempt (1)
|
61,813 | 903 | 5.88 | % | 55,400 | 915 | 6.62 | % | ||||||||||||||||
Total securities
|
$ | 325,919 | $ | 2,652 | 3.27 | % | $ | 280,732 | $ | 2,702 | 3.86 | % | ||||||||||||
Loans
|
||||||||||||||||||||||||
Taxable
|
$ | 749,834 | $ | 9,616 | 5.16 | % | $ | 701,701 | $ | 9,731 | 5.56 | % | ||||||||||||
Tax-exempt (1)
|
- | - | - | - | - | - | ||||||||||||||||||
Total loans (3)
|
$ | 749,834 | $ | 9,616 | 5.16 | % | $ | 701,701 | $ | 9,731 | 5.56 | % | ||||||||||||
Federal funds sold
|
- | - | - | - | - | - | ||||||||||||||||||
Interest on money market investments
|
- | - | - | - | - | - | ||||||||||||||||||
Interest bearing deposits in
|
||||||||||||||||||||||||
other financial institutions
|
48,025 | 25 | 0.21 | % | 47,222 | 32 | 0.27 | % | ||||||||||||||||
Total earning assets
|
$ | 1,123,778 | $ | 12,293 | 4.40 | % | $ | 1,029,655 | $ | 12,465 | 4.86 | % | ||||||||||||
Less: allowances for credit losses
|
(15,138 | ) | (14,672 | ) | ||||||||||||||||||||
Total nonearning assets
|
83,781 | 94,479 | ||||||||||||||||||||||
Total assets
|
$ | 1,192,421 | $ | 1,109,462 | ||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 310,262 | $ | 334 | 0.43 | % | $ | 294,374 | $ | 490 | 0.67 | % | ||||||||||||
Regular savings
|
106,725 | 96 | 0.36 | % | 96,570 | 205 | 0.85 | % | ||||||||||||||||
Money market savings
|
57,566 | 49 | 0.34 | % | 58,046 | 94 | 0.65 | % | ||||||||||||||||
Time deposits:
|
||||||||||||||||||||||||
$100,000 and over
|
140,233 | 560 | 1.61 | % | 139,718 | 633 | 1.82 | % | ||||||||||||||||
Under $100,000
|
180,961 | 807 | 1.79 | % | 167,780 | 910 | 2.17 | % | ||||||||||||||||
Total interest-bearing deposits
|
$ | 795,747 | $ | 1,846 | 0.93 | % | $ | 756,488 | $ | 2,332 | 1.24 | % | ||||||||||||
Short-term borrowings
|
7,687 | 88 | 4.60 | % | 5,840 | 53 | 3.64 | % | ||||||||||||||||
Securities sold under agreements
|
||||||||||||||||||||||||
to repurchase
|
32,268 | 83 | 1.03 | % | 32,956 | 69 | 0.84 | % | ||||||||||||||||
FHLB borrowings and other debt
|
87,463 | 288 | 1.32 | % | 81,638 | 306 | 1.50 | % | ||||||||||||||||
Federal funds purchased
|
3 | - | 0.00 | % | 3 | - | 0.00 | % | ||||||||||||||||
Total interest-bearing liabilities
|
$ | 923,168 | $ | 2,305 | 1.00 | % | $ | 876,925 | $ | 2,760 | 1.26 | % | ||||||||||||
Non-interest bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
150,689 | 122,380 | ||||||||||||||||||||||
Other liabilities
|
6,822 | 7,863 | ||||||||||||||||||||||
Total liabilities
|
$ | 1,080,679 | $ | 1,007,168 | ||||||||||||||||||||
Non-controlling interest
|
2,231 | 1,999 | ||||||||||||||||||||||
Shareholders' equity
|
109,511 | 100,295 | ||||||||||||||||||||||
Total liabilities and shareholders'
|
||||||||||||||||||||||||
equity
|
$ | 1,192,421 | $ | 1,109,462 | ||||||||||||||||||||
Net interest income
|
$ | 9,988 | $ | 9,705 | ||||||||||||||||||||
Interest rate spread
|
3.40 | % | 3.60 | % | ||||||||||||||||||||
Cost of Funds
|
0.86 | % | 1.11 | % | ||||||||||||||||||||
Interest expense as a percent of
|
||||||||||||||||||||||||
average earning assets
|
0.82 | % | 1.07 | % | ||||||||||||||||||||
Net interest margin
|
3.57 | % | 3.78 | % | ||||||||||||||||||||
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%.
|
||||||||||||||||||||||||
(2) All yields and rates have been annualized on a 366 day year.
|
||||||||||||||||||||||||
(3) Total average loans include loans on non-accrual status.
|
MIDDLEBURG FINANCIAL CORPORATION |
Average Balances, Income and Expenses, Yields and Rates |
Six Months Ended June 30,
|
||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
Balance
|
Expense
|
Rate (2)
|
Balance
|
Expense
|
Rate (2)
|
|||||||||||||||||||
(Dollars in thousands)
|
Assets :
|
||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
$ | 263,757 | $ | 3,528 | 2.69 | % | $ | 215,085 | $ | 3,222 | 3.02 | % | ||||||||||||
Tax-exempt (1)
|
61,808 | 1,823 | 5.93 | % | 54,691 | 1,765 | 6.51 | % | ||||||||||||||||
Total securities
|
$ | 325,565 | $ | 5,351 | 3.31 | % | $ | 269,776 | $ | 4,987 | 3.73 | % | ||||||||||||
Loans
|
||||||||||||||||||||||||
Taxable
|
$ | 747,647 | $ | 19,547 | 5.26 | % | $ | 698,183 | $ | 19,466 | 5.62 | % | ||||||||||||
Tax-exempt (1)
|
- | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Total loans (3)
|
$ | 747,647 | $ | 19,547 | 5.26 | % | $ | 698,183 | $ | 19,466 | 5.62 | % | ||||||||||||
Federal funds sold
|
- | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Interest on money market investments
|
- | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||||||
Interest bearing deposits in
|
||||||||||||||||||||||||
other financial institutions
|
47,174 | 49 | 0.21 | % | 44,619 | 60 | 0.27 | % | ||||||||||||||||
Total earning assets
|
$ | 1,120,386 | $ | 24,947 | 4.48 | % | $ | 1,012,578 | $ | 24,513 | 4.88 | % | ||||||||||||
Less: allowances for credit losses
|
(15,005 | ) | (14,710 | ) | ||||||||||||||||||||
Total nonearning assets
|
82,625 | 94,830 | ||||||||||||||||||||||
Total assets
|
$ | 1,188,006 | $ | 1,092,698 | ||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 306,953 | $ | 717 | 0.47 | % | $ | 290,710 | $ | 976 | 0.68 | % | ||||||||||||
Regular savings
|
105,867 | 211 | 0.40 | % | 93,129 | 392 | 0.85 | % | ||||||||||||||||
Money market savings
|
57,095 | 106 | 0.37 | % | 59,451 | 195 | 0.66 | % | ||||||||||||||||
Time deposits:
|
||||||||||||||||||||||||
$100,000 and over
|
141,460 | 1,132 | 1.61 | % | 135,205 | 1,238 | 1.85 | % | ||||||||||||||||
Under $100,000
|
180,568 | 1,573 | 1.75 | % | 168,156 | 1,838 | 2.20 | % | ||||||||||||||||
Total interest-bearing deposits
|
$ | 791,943 | $ | 3,739 | 0.95 | % | $ | 746,651 | $ | 4,639 | 1.25 | % | ||||||||||||
Short-term borrowings
|
10,542 | 236 | 4.50 | % | 5,789 | 117 | 4.08 | % | ||||||||||||||||
Securities sold under agreements
|
||||||||||||||||||||||||
to repurchase
|
33,196 | 167 | 1.01 | % | 31,141 | 125 | 0.81 | % | ||||||||||||||||
FHLB borrowings and other debt
|
87,627 | 585 | 1.34 | % | 78,205 | 602 | 1.55 | % | ||||||||||||||||
Federal Funds Purchased
|
2 | - | 0.00 | % | 2 | - | 0.00 | % | ||||||||||||||||
Total interest-bearing liabilities
|
$ | 923,310 | $ | 4,727 | 1.03 | % | $ | 861,788 | $ | 5,483 | 1.28 | % | ||||||||||||
Non-interest bearing liabilities
|
||||||||||||||||||||||||
Demand Deposits
|
147,411 | 122,370 | ||||||||||||||||||||||
Other liabilities
|
6,536 | 7,250 | ||||||||||||||||||||||
Total liabilities
|
$ | 1,077,257 | $ | 991,408 | ||||||||||||||||||||
Non-controlling interest
|
2,293 | 2,397 | ||||||||||||||||||||||
Shareholders' equity
|
108,456 | 98,893 | ||||||||||||||||||||||
Total liabilities and shareholders'
|
||||||||||||||||||||||||
equity
|
$ | 1,188,006 | $ | 1,092,698 | ||||||||||||||||||||
Net interest income
|
$ | 20,220 | $ | 19,030 | ||||||||||||||||||||
Interest rate spread
|
3.45 | % | 3.60 | % | ||||||||||||||||||||
Cost of Funds
|
0.89 | % | 1.12 | % | ||||||||||||||||||||
Interest expense as a percent of
|
||||||||||||||||||||||||
average earning assets
|
0.85 | % | 1.09 | % | ||||||||||||||||||||
Net interest margin
|
3.63 | % | 3.79 | % | ||||||||||||||||||||
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%.
|
||||||||||||||||||||||||
(2) All yields and rates have been annualized on a 366 day year.
|
||||||||||||||||||||||||
(3) Total average loans include loans on non-accrual status.
|
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