MIDDLEBURG FINANCIAL CORP. 
By MIDDLEBURG, Va., July 30 /PRNewswire-FirstCall/ -- Middleburg Financial Corporation (the "Company"), (Nasdaq: MBRG), parent company of Middleburg Bank (the "Bank"), today reported its financial results for the second quarter of 2010.
Second Quarter 2010 Highlights:
-- Net income of $723,548 for the quarter;
-- Diluted earnings per share of $0.10 for the quarter;
-- Net interest margin of 3.67% for the quarter;
-- Total asset growth of $85.0 million or 8.7% for the six month period;
-- Total loans increased by $9.9 million or 1.6% for the six month period;
-- Total deposit growth of $53.4 million or 6.6% for six month period;
-- Provision for loan losses decreased 18.4% relative to the quarter ended
June 30, 2009; and
-- Tier I capital ratio of 13.33%, leverage ratio of 10.58%
"Despite continued challenges in the economy, Middleburg Financial Corporation delivered net income of $723,548 in the second quarter of 2010," said Gary R. Shook, President and Chief Executive Officer. "The increase in non performing assets in the quarter was related to previously identified loans and was expected as we continue to work through the collection process for these loans. Looking ahead, we foresee a continuation of problem loans throughout this year, which will continue to impact earnings," added Mr. Shook.
Net Interest Income and Net Interest Margin
Net interest income was $8.4 million during the three months ended June 30, 2010, a decrease of 14.9% relative to the quarter ended June 30, 2009. The average yield on earning assets was 5.22% for the quarter ended June 30, 2010 while the average cost of interest bearing liabilities was 1.82% for the same period representing a decrease of 124 basis points and 69 basis points, respectively, from the quarter ended June 30, 2009. The net interest margin for the three months ended June 30, 2010 was 3.67% compared to 4.36% for the quarter ended June 30, 2009.
The Company's net interest margin is not a measurement under accounting principles generally accepted in the United States, but it is a common measure used by the financial services industry to determine how profitably earning assets are funded. The Company's 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%. Details on the calculation of the net interest margin are included in the "Key Statistics" table.
Asset Quality and Provision for Loan Losses
The provision for loan losses was $1.3 million for the quarter ended June 30, 2010, compared to $1.6 million for the quarter ended June 30, 2009, a decline of 18.4%. The Company increased its allowance for loan losses ("ALLL") $890,000 or 9.6% during the first six months of 2010. The ALLL at June 30, 2010 was $10.1 million representing 1.54% of total portfolio loans outstanding versus 1.43% of total portfolio loans at December 31, 2009. The pace of problem loans is as expected. The Company deemed it prudent to increase its ratio of allowance for loan losses to total loans as a result of continued economic uncertainty and an increase in non-performing assets.
Non-performing assets increased from $17.2 million or 1.8% of total assets at December 31, 2009 to $26.7 million or 2.5% of total assets as of June 30, 2010. The increase was primarily due to an increase in delinquent loans over 90 days and non-accrual loans. Given the continued economic uncertainties, it is possible that we could experience further increases in non-performing assets.
Non-Interest Income
Non-interest income decreased by $72,000 or 1.2% to $6.1 million when comparing the quarter ended June 30, 2010 to the quarter ended June 30, 2009. Increases in trust and investment advisory fees and gains on sales of mortgage loans were offset by net securities losses. Trust and Investment advisory service fees earned by Middleburg Trust Company ("MTC") and Middleburg Investment Advisors ("MIA") increased $83,000 or 10.5% to $875,000 and gains on mortgage loan sales increased $466,000 or 13.8% to $3.8 million when comparing the quarter ended June 30, 2010 to the quarter ended June 30, 2009. Additionally, fees related to mortgage loan sales increased $184,000 or 63% to $476,000 from the quarter ended June 30, 2009 to the quarter ended June 30, 2010. Net securities losses were $134,000 during the quarter ended June 30, 2010 compared to net securities gains of $661,000 during the quarter ended June 30, 2009. The net securities losses during the quarter ended June 30, 2010 included $97,000 of other than temporary impairment losses related to two securities previously identified as impaired under generally accepted accounting principles. Southern Trust Mortgage, our majority owned subsidiary, originated $188.7 million in mortgage loans during the quarter ended June 30, 2010 compared to $316.9 million originated during the quarter ended June 30, 2009. Mortgage loans originated for the six months ended June 30, 2010 was $337.7 million versus $587.7 million for the six months ended June 30, 2009.
The revenues and expenses of Southern Trust Mortgage for the three and six month periods ended June 30, 2010 are reflected in the Company's financial statements on a consolidated basis following generally accepted accounting principles in the United States. The outstanding equity interest not held by the Company is reported on the Company's balance sheet as "Non-controlling interest in consolidated subsidiary" and the earnings or loss attributable to the non-controlling interest is reported on the Company's income statement as "Net (income) / loss attributable to non-controlling interest."
Trust and investment advisory fees are based primarily upon the market value of the accounts under administration/management. Total consolidated assets under administration by MTC and MIA were at $1.1 billion at June 30, 2010, an increase of 8.9% relative to June 30, 2009. The Bank holds a large portion of its investment portfolio in custody with MTC. MTC's assets under administration were $821.1 million at June 30, 2010 versus $661.3 million at June 30, 2009 representing an increase of 24.2%. MIA's assets under administration were $312.6 million at June 30, 2010 versus $379.6 million at June 30, 2009 representing a decrease of 17.7%.
Non-Interest Expense
Non-interest expense in the second quarter of 2010 decreased $753,000, down 5.8% relative to the quarter ended June 30, 2009.
Salaries and employee benefit expenses in the second quarter of 2010 decreased by $213,000 relative to the quarter ended June 30, 2009, primarily due to a decrease in mortgage loan originations and the related commission expense. Expenses and losses related to other real estate owned decreased $354,000 or 54.5% for the quarter ended June 30, 2010 compared to the same quarter in 2009. Other operating expenses increased by $201,000 or 14.9% during the second quarter of 2010 relative to the second quarter of 2009 due to increases in various other expense categories.
Total Consolidated Assets
Total assets at June 30, 2010 were $1.1 billion, an increase of $85.0 million or 8.7% over December 31, 2009.
Total portfolio loans, net of allowance for loan losses, increased by $9.1 million, or 1.4% when comparing June 30, 2010 to December 31, 2009. The investment portfolio was at $200.8 million at June 30, 2010, an increase of $28.1 million or 16.3% compared to December 31, 2009. Mortgages held for resale increased $17.4 million or 38.7% from December 31, 2009 to June 30, 2010. Cash and due from bank balances increased by $2.4 million or 13.1% from December 31, 2009 to June 30, 2010.
Deposits and Other Borrowings
Total deposits were at $859.1 million at June 30, 2010, up $53.4 million or 6.6% from December 31, 2009, primarily due to a continued increase in savings and non-interest bearing demand deposits. Time deposits, including brokered deposits increased $14.5 million or 4.8% from December 31, 2009 to June 30, 2010. Brokered deposits were $105.4 million at June 30, 2010, up $29.2 million or 38.3% from December 31, 2009. Long term borrowings from the FHLB were $52.9 million at June 30, 2010, up $17.9 million from December 31, 2009. The increase in brokered deposits and borrowings was related to the funding of commercial loans and the purchase of investment securities.
Equity
Total shareholders' equity at June 30, 2010 was $105.3 million, compared to shareholders' equity of $103.4 million as of December 31, 2009. Retained earnings at June 30, 2010 were at $42.9 million compared to $42.7 million at December 31, 2009. The book value of the Company's common stock at June 30, 2010 was $14.84 per share. As of June 30, 2010, the Tier 1 risk-based capital ratio was 13.33%, the total risk-based capital ratio was 14.58% and the leverage ratio was 10.58%
Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company's future operations and are generally identified by phrases such as "the Company expects," "the Company believes" or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For details on factors that could affect expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, and other filings with the Securities and Exchange Commission.
About Middleburg Financial Corporation
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves communities in Virginia with financial centers in Ashburn, Leesburg, Marshall, Middleburg, Purcellville, Reston, Warrenton and Williamsburg. Middleburg Investment Group owns Middleburg Trust Company and Middleburg Investment Advisors, Inc. Middleburg Trust Company is headquartered in Richmond, Virginia with offices in Williamsburg and Middleburg. Middleburg Investment Advisors, Inc. is an SEC registered investment advisor located in Alexandria, Virginia. Middleburg Financial Corporation is also the majority owner of Southern Trust Mortgage, which is based in Virginia Beach and provides mortgages through 17 offices in 11 states.
Middleburg Financial Corporation and Subsidiaries
Consolidated Statements of Income
(In Thousands, Except Per Share Data)
Unaudited Unaudited
--------- ---------
For the Six For the Three
Months Months
Ended June 30, Ended June 30,
2010 2009 2010 2009
---- ---- ---- ----
Interest and Dividend
Income
Interest and fees on
loans $20,829 $25,820 $10,384 $12,870
Interest on
securities available
for sale
Taxable 2,028 2,463 1,090 1,202
Exempt from federal
income taxes 1,293 1,474 600 746
Dividends 43 36 22 18
Interest on federal
funds sold and other 63 58 28 24
--- --- ---
Total interest and
dividend income $24,256 $29,851 $12,124 $14,860
------- ------- ------- -------
Interest Expense
Interest on deposits $6,251 $8,115 $3,077 $3,959
Interest on
securities sold
under agreements to
repurchase 80 25 60 3
Interest on short-
term borrowings 111 467 67 191
Interest on long-
term debt 926 1,650 488 797
--- ----- ---
Total interest
expense $7,368 $10,257 $3,692 $4,950
------ ------- ------ ------
Net interest income $16,888 $19,594 $8,432 $9,910
Provision for loan
losses 2,220 2,620 1,291 1,583
----- ----- ----- -----
Net interest income
after provision
for loan losses $14,668 $16,974 $7,141 $8,327
------- ------- ------ ------
Other Income
Trust and investment
advisory fee income $1,690 $1,589 $875 $792
Service charges on
deposit accounts 909 945 468 490
Net gains (losses) on
securities available
for sale 469 1,070 (37) 661
Total other-than-
temporary impairment
loss on securities (248) (179) (97) -
Commissions on
investment sales 311 257 167 172
Bank owned life
insurance 255 257 130 130
Gain on loans held
for sale 6,474 6,170 3,844 3,378
Fees on loans held
for sale 834 527 476 292
Other service
charges, commissions
and fees 256 297 143 158
Other operating
income 179 183 88 56
--- --- ---
Total other income $11,129 $11,116 $6,057 $6,129
------- ------- ------ ------
Other Expense
Salaries and employee
benefits $14,381 $14,930 $7,457 $7,670
Net occupancy expense
of premises 3,094 2,950 1,490 1,565
Other taxes 397 290 201 145
Advertising 428 365 248 216
Computer operations 668 661 340 360
Other real estate
owned 505 1,460 295 649
Audits and
examinations 277 310 162 108
Legal fees 306 299 167 176
FDIC insurance 1,153 1,057 352 777
Other operating
expenses 3,000 2,529 1,554 1,353
----- ----- -----
Total other expense $24,209 $24,851 $12,266 $13,019
------- ------- ------- -------
Income before income
taxes $1,588 $3,239 $932 $1,437
Income tax expense 162 161 75 21
---
Net income $1,426 $3,078 $857 $1,416
Less: Net (income) /
loss attributable to
non-controlling
interest 112 (1,281) (133) (603)
----
Net income
attributable to
Middleburg Financial
Corporation $1,538 $1,797 $724 $813
====== ====== ==== ====
Amortization of
discount on
preferred stock - 32 - 19
Dividend on preferred
stock - 464 - 278
Net income available
to common
shareholders $1,538 $1,301 $724 $516
====== ====== ==== ====
Net income per common
share, basic $0.22 $0.28 $0.10 $0.11
Net income per common
share, diluted $0.22 $0.28 0.10 $0.11
Dividends per share $0.20 $0.38 0.10 $0.19
See Accompanying Notes to Consolidated Financial Statements
Middleburg Financial Corporation
Consolidated Balance Sheets
(In Thousands, Except for Share Data)
(Unaudited)
December
June 30, 31,
2010 2009
---- ----
Assets:
Cash and due from banks $20,776 $18,365
Interest-bearing deposits in banks 50,448 24,845
Securities available for sale 200,786 172,699
Loans held for sale 62,442 45,010
Restricted securities, at cost 6,225 6,225
Loans, net of allowance for loan losses of
$10,075 in 2010
and $9,185 in 2009 644,181 635,094
Premises and equipment, net 23,264 23,506
Goodwill and identified intangibles 6,446 6,531
Other real estate owned, net of valuation
allowance of
$873 in 2010 and $1,121 in 2009. 8,257 6,511
Prepaid federal deposit insurance 5,837 6,923
Accrued interest receivable and other assets 32,690 30,665
------ ------
Total assets $1,061,352 $976,374
========== ========
Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Non-interest bearing demand deposits $121,504 $106,459
Savings and interest-bearing demand deposits 421,584 397,720
Time deposits 315,967 301,469
------- -------
Total deposits $859,055 $805,648
Securities sold under agreements to
repurchase 23,213 17,199
Short-term borrowings 8,851 3,538
Long-term debt 52,912 35,000
Subordinated notes 5,155 5,155
Accrued interest and other liabilities 6,874 6,475
Commitments and contingent liabilities - -
Total liabilities $956,060 $873,015
-------- --------
Shareholders' Equity:
Common stock, par value $2.50 share,
authorized 20,000,000 shares
issued and outstanding at June 30, 2010 -
6,914,687 shares
issued and outstanding at December 31, 2009 -
6,909,293 shares $17,286 $17,273
Capital surplus 42,883 42,807
Retained earnings 42,859 42,706
Accumulated other comprehensive (loss), net (434) (2,474)
Total Middleburg Financial Corporation
shareholders' equity $102,594 $100,312
-------- --------
Non-controlling interest in consolidated
subsidiary 2,698 3,047
Total shareholders' equity $105,292 $103,359
-------- --------
Total liabilities and shareholders' equity $1,061,352 $976,374
========== ========
MIDDLEBURG FINANCIAL CORPORATION
KEY STATISTICS
(Unaudited. Dollars in
thousands except per
share data) For the Three Months Ended
--------------------------
June 30 Mar 31, Dec 31, Sep 30,
2010 2010 2009 2009
---- ---- ---- ----
Net Income (dollars in
thousands) $724 $814 $1,114 $610
Earnings per share,
basic $0.10 $0.12 $0.07 $0.05
Earnings per share,
diluted $0.10 $0.12 $0.07 $0.05
Dividend per share $0.10 $0.10 $0.10 $0.10
Return on average total
assets 0.28% 0.33% 0.35% 0.29%
Return on average total
equity 2.85% 3.25% 2.82% 2.51%
Dividend payout ratio 100.00% 84.90% 142.86% 200.00%
Non-Interest income as
a percent of total
revenue 34.05% 28.00% 29.37% 23.60%
Net interest margin(1) 3.67% 3.94% 3.83% 4.13%
Yield on average earning
assets 5.22% 5.58% 5.61% 6.08%
Yield on average
interest-bearing
liabilities 1.82% 1.93% 2.16% 2.35%
Net interest spread 3.40% 3.65% 3.45% 3.73%
Non-interest income to
average assets (3) 2.39% 1.93% 2.10% 1.71%
Non-interest expense to
average assets (3) 4.73% 4.90% 4.74% 4.71%
Efficiency ratio -QTD
(2) 81.78% 87.85% 83.48% 84.26%
(1) 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.
(2) The efficiency ratio is not a measurement under accounting
principles generally accepted in the United States.
It is calculated by dividing non interest expense 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 is 34%. The Company calculates this ratio in
order to evaluate its overhead structure or how effectively it is
operating. An increase in the ratio from period to period
indicates the Company is losing a larger percentage of its income to
expenses.
(3) Ratios are computed by dividing annualized income and expense
amounts by quarterly average assets.
MIDDLEBURG FINANCIAL CORPORATION
SELECTED FINANCIAL DATA BY QUARTER
(Unaudited. Dollars in
thousands except per
share data) 2Q10 1Q10 4Q09 3Q09
---- ---- ---- ----
BALANCE SHEET RATIOS
Net loans to deposits 74.99% 78.32% 78.83% 81.67%
Average interest-
earning assets to
average-interest
bearing liabilities 117.69% 117.51% 121.36% 120.32%
PER SHARE DATA (1)
Dividends $0.10 $0.10 $0.10 $0.10
Book value $14.84 $14.65 $14.52 $14.61
Tangible book value $13.91 $13.71 $13.57 $13.65
SHARE PRICE DATA
Closing price $13.91 $15.06 $14.59 $13.05
Diluted earnings
multiple (1) 34.78 31.38 52.11 65.25
Book value multiple (2) 0.94 1.03 1.00 0.89
COMMON STOCK DATA
Outstanding shares at
end of period 6,914,687 6,909,293 6,909,293 6,901,843
Weighted average shares
O/S Basic -QTD 6,911,744 6,909,293 5,635,687 5,208,624
Weighted average shares
O/S, diluted -QTD 6,924,338 6,912,173 6,906,429 6,267,267
CAPITAL RATIOS (1)
Capital to Assets -
Common shareholders 9.67% 9.94% 10.27% 12.27%
Total risk based
capital ratio 14.58% 15.02% 15.06% 18.22%
Tier 1 risk based
capital ratio 13.33% 13.77% 13.86% 16.97%
Leverage ratio 10.58% 10.71% 10.40% 12.50%
CREDIT QUALITY
Net charge-offs to
average loans 0.15% 0.04% 0.18% 0.17%
Total non-performing
loans to total loans 2.81% 2.00% 1.48% 1.57%
Total non-performing
assets to total assets 2.51% 1.88% 1.64% 1.88%
Non-accrual loans to:
total loans 1.87% 1.46% 1.34% 1.38%
total assets 1.15% 0.94% 0.88% 0.90%
Allowance for loan
losses to:
total loans 1.54% 1.50% 1.43% 1.41%
non-performing assets 37.80% 51.43% 53.00% 49.21%
non-accrual loans 82.51% 102.67% 104.11% 102.43%
NON-PERFORMING ASSETS:
Loans delinquent over
90 days $6,188 $3,544 $908 $1,206
Non-accrual loans 12,211 9,613 8,608 9,008
Other real estate owned
and repossessed assets 8,257 6,034 6,511 8,537
Total non-performing
assets $26,656 $19,191 $16,027 $18,751
------- ------- ------- -------
NET LOAN CHARGE-OFFS:
Loans charged off $1,142 $291 $1,280 $1,216
(Recoveries) (56) (47) (48) (49)
Net charge-offs $1,086 $244 $1,232 $1,167
------ ---- ------ ------
PROVISION FOR LOAN
LOSSES $1,291 $929 $967 $964
------ ---- ---- ----
ALLOWANCE FOR LOAN LOSS
SUMMARY
Balance at the
beginning of period $9,870 $9,185 $9,227 $9,430
Provision 1,291 929 967 964
Net charge-offs /
(recoveries) 1,086 244 1,009 1,167
----- --- ----- -----
Balance at the end of
period $10,075 $9,870 $9,185 $9,227
------- ------ ------ ------
(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.
Middleburg Financial Corporation
Average Balances, Income and Expenses, Yields and Rates
-------------------------------------------------------
Three Months Ended June 30,
----------------------------
2010
----
Average Income/ Yield/
Rate
Balance Expense (2)
------- ------- -----
(Dollars in thousands)
Assets :
Securities:
Taxable $142,279 $1,112 3.13%
Tax-exempt (1) 56,248 909 6.48%
Total securities $198,527 $2,021 4.08%
Loans
Taxable $709,042 $10,383 5.87%
Tax-exempt (1) - - -
---
Total loans $709,042 $10,383 5.87%
Federal funds sold - - -
Interest on money
market investments - - -
Interest bearing
deposits in
other financial
institutions 47,566 28 0.24%
------ ---
Total earning assets $955,135 $12,432 5.22%
Less: allowances for
credit losses (9,956)
Total nonearning assets 92,346
------
Total assets $1,037,525
==========
Liabilities:
Interest-bearing
deposits:
Checking $286,485 $579 0.81%
Regular savings 77,173 188 0.98%
Money market savings 51,683 107 0.83%
Time deposits:
$100,000 and over 158,698 1,141 2.88%
Under $100,000 151,141 1,062 2.82%
------- -----
Total interest-bearing
deposits $725,180 $3,077 1.70%
Short-term borrowings 6,030 67 4.46%
Securities sold under
agreements
to repurchase 24,977 60 0.98%
Long-term debt 55,375 488 3.53%
Federal funds purchased 35 - 0.00%
--- ---
Total interest-bearing
liabilities $811,597 $3,692 1.82%
Non-interest bearing
liabilities
Demand deposits 114,953
Other liabilities 6,328
Total liabilities $932,878
Non-controlling
interest 2,671
Shareholders' equity 101,976
Total liabilities and
shareholders'
equity $1,037,525
==========
Net interest income $8,740
======
Interest rate spread 3.40%
Interest expense as a
percent of
average earning assets 1.55%
Net interest margin 3.67%
2009
----
Average Income/ Yield/
Rate
Balance Expense (2)
------- ------- -----
(Dollars in thousands)
Assets :
Securities:
Taxable $100,118 $1,221 4.89%
Tax-exempt (1) 65,100 1,131 6.97%
Total securities $165,218 $2,352 5.71%
Loans
Taxable $727,690 $12,870 7.34%
Tax-exempt (1) 1 - 0.00%
---
Total loans $727,691 $12,870 7.34%
Federal funds sold 31,720 14 0.18%
Interest on money
market investments - - -
Interest bearing
deposits in
other financial
institutions 21,876 9 0.17%
------ ---
Total earning assets $946,505 $15,245 6.79%
Less: allowances for
credit losses (8,499)
Total nonearning assets 81,352
------
Total assets $1,019,358
==========
Liabilities:
Interest-bearing
deposits:
Checking $247,303 $783 1.27%
Regular savings 54,980 176 1.28%
Money market savings 39,190 103 1.05%
Time deposits:
$100,000 and over 132,288 1,046 3.17%
Under $100,000 200,553 1,851 3.70%
------- -----
Total interest-bearing
deposits $674,314 $3,959 2.35%
Short-term borrowings 21,003 191 3.65%
Securities sold under
agreements
to repurchase 20,559 3 0.06%
Long-term debt 79,155 797 4.04%
Federal funds purchased - - -
--- ---
Total interest-bearing
liabilities $795,031 $4,950 2.50%
Non-interest bearing
liabilities
Demand deposits 110,153
Other liabilities 10,828
Total liabilities $916,012
Non-controlling
interest 2,851
Shareholders' equity 100,495
Total liabilities and
shareholders'
equity $1,019,358
==========
Net interest income $10,295
=======
Interest rate spread 3.96%
Interest expense as a
percent of
average earning assets 2.10%
Net interest margin 4.36%
(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 365 day year.
SOURCE Middleburg Financial Corporation
