MIDDLEBURG FINANCIAL CORP. 
By MIDDLEBURG, Va., Feb. 1 /PRNewswire-FirstCall/ -- Middleburg Financial Corporation (the "Company"), (Nasdaq: MBRG), parent company of Middleburg Bank (the "Bank"), today reported its financial results for the fourth quarter of 2009 and the year ended 2009.
Fourth Quarter and 2009 Highlights:
-- Net income of $1.1 million for quarter and $3.5 million for full year,
up 57% from 2008.
-- Quarter-to-date diluted earnings per share of $0.07 and full year
earnings per share of $0.40
-- Non performing Assets to Total Assets were 1.64% at year end, versus
1.88% at end of 3(rd) quarter.
-- Total deposit growth of $60.8 million or 8.17% for the year
-- Closed $990 million in mortgage loans in 2009, up 48% from 2008
-- Addition of $24.3 million in new capital, redeemed US Treasury preferred
stock in full
-- Tier I capital of 13.88%, leverage ratio of 10.42%
"All things considered, we are happy 2009 is behind us and that we turned in a profit of approximately $3.5 million," commented Joseph L. Boling, chairman and CEO of Middleburg Financial Corporation. He continued, "The regulatory, political and economic climates made for a challenging year on all fronts but nevertheless the company continued to show improvements in its performance. We were especially gratified with the strong support from the capital markets in 2009 with our raising $24.3 million in new capital and our subsequent redemption of the TARP Capital Purchase Program (CPP) preferred stock and the return of those funds to the Government. The CPP dividends previously paid to the United States Treasury will now inure to the benefit of our common shareholders."
Net Interest Income and Net Interest Margin
Net interest income increased $4.46 million in 2009, up 13.4% from 2008, largely driven by growth in earning assets and reduced funding costs. Interest income and fees from loans and investments increased 1.47% during 2009. We reduced our costs for deposits as well as for borrowings in 2009. The average cost of interest bearing liabilities in 2009 decreased to 2.43%, down 71 bp relative to 2008. As a result, interest expense decreased $3.6 million in 2009 or 16% from the year ending December 31, 2008 to the year ending December 31. 2009.
The net interest margin for the twelve months ended December 31, 2009 was 4.17%, up 17 bp from 2008.
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
Provisions for loan losses were $4.5 million for the year ended December 31, 2009, compared to $5.3 million for the same period in 2008, a decline of 15%. We aggressively recognized losses on non-performing loans and expenses related to other-real-estate owned (OREO) increased by $1.95 million or 217% during 2009. Given continued uncertainty in the economy, and the current nationwide credit crisis, the Company deemed it prudent to maintain its ratio of allowance for loan losses to total loans at 1.37%.
Non performing assets decreased from $18.8 million or 1.9% of total assets at September 30, 2009 to $16.0 million or 1.6% of total assets as of December 31, 2009. Given the current economic environment, it is anticipated there could be an increase in non performing loans, but we do not believe that the increase will be as dramatic as that experienced in 2009.
Non-Interest Income
Non-interest income increased $4.0 million or 23.7% when comparing the year ended December 31, 2009 to the same period in 2008, largely driven by increases in gain on sale of mortgage loans originated by Southern Trust Mortgage, our majority owned subsidiary, and gains on sales of securities. Southern Trust Mortgage closed $990 million in mortgage loans in 2009, up 48% from 2008. Gain on sale of mortgage loans increased $3.2 million or 37% from the year ending December 31, 2008 to the year ending December 31, 2009. Net gains on securities sold were $998,000 in 2009, versus a net loss of $913,000 in 2008, an increase of $1.9 million from the year prior.
The revenues and expenses of Southern Trust Mortgage for each of the three month periods ended March 31, June 30, September 30 and December 31, 2009 are reflected in the Company's financial statements on a consolidated basis, with the outstanding interest not held by the Company reported as "Net Income(Loss) Attributable to Non-controlling Interest."
Trust and investment advisory fees earned by Middleburg Trust Company ("MTC") and Middleburg Investment Advisors ("MIA") was relatively unchanged when comparing the quarter ended December 31, 2009 to the quarter ended September 30, 2009 and decreased 13.7% or $526,000 when comparing the year ended December 31, 2009 to December 31, 2008. 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 $1.085 billion at December 31, 2009, an increase of $191.3 million or 21.4% from the $893.7 million under administration at December 31, 2008. The Bank holds a large portion of its investment portfolio in custody with MTC. MTC's assets under administration were $771.5 million at December 31, 2009 and $485 million at December 31, 2008. MIA's assets under administration were $313.5 million at December 31, 2009 and $408.6 million at December 31, 2008.
Non-Interest Expense
Non-interest expense in 2009 increased $6.26 million, up 14.7% from 2008., driven primarily by commissions related to the increased production at Southern Trust Mortgage, increased FDIC insurance expense and increased legal and OREO expenses.
Salaries and employee benefit expenses increased $3.3 million during 2009, primarily due to higher commissions related to Southern Trust Mortgage. Other operating expenses increased by $4.2 million in 2009, due to increases in various other expense categories including FDIC special assessments, legal fees, and expenses associated with other real estate owned.
Total Consolidated Assets
Total assets at December 31, 2009 were $976 million, down $9 million or 0.9% relative to one year prior.
Total loans, net of allowance for loan losses, decreased by $27 million, or 4.1% when comparing December 31, 2008 to December 31, 2009. Slower loan demand was the primary reason for this decrease as loan runoff was comparable with previous years. Mortgages held for resale increased $5 million or 12.5% from December 31, 2008 to December 31, 2009.
In 2009, the Company increased its cash liquidity position by investing the proceeds of maturities and principal payments of securities into federal funds sold as a precaution against the economic uncertainties and the resulting volatility that occurred in the securities markets. As a result, cash and due from banks on December 31, 2009 increased $17 million from the year prior. The investment portfolio was at $179 million at December 31, 2009, an increase of $11 million compared to September 30, 2009 and a decline of $2 million from a year prior.
Deposits and Other Borrowings
Total deposits were at $805.6 million at December 31, 2009, up $60.8 million or 8.17% from the year prior, primarily due to an increase in savings and interest bearing demand deposits. Time deposits, including brokered deposits decreased $31 million or 9.2% when comparing December 31, 2008 to December 31, 2009. The Company has been paying off FHLB advances and brokered deposits as they mature. Brokered deposits were $64 million at December 31, 2009, down $43 million or 40% from the year prior. Long term borrowings were at $35 million at December 31, 2009, down $49 million or 58% from the year prior.
Equity
Shareholders' equity at December 31, 2009 was $103 million, an increase of $27 million or 35% from the year prior. The book value of the Company at December 31, 2009 was $14.52 per common share. New capital of $24.3 million was raised in 2009, and in December of 2009, the proceeds were used to redeem the TARP preferred stock issued to the Treasury in full. Subsequent to its redemption of the TARP preferred stock, the Company had the right to notify the Treasury within 15 days from the date of redemption whether it would make an offer to repurchase the warrant or allow the Treasury to liquidate the warrant in the open market. The Company determined that it was in its best interests not to make an offer to repurchase the warrant. As of December 31, 2009, the Tier 1 risk-based capital ratio was 13.88%, the total risk-based capital ratio was 15.07% and the leverage ratio was 10.42%
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, 2008, and other filings with the Securities and Exchange Commission.
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves Loudoun, Fairfax, and Fauquier Counties in Virginia with eight financial service centers. Middleburg Investment Group owns Middleburg Trust Company and Middleburg Investment Advisors, Inc. Middleburg Trust Company is headquartered in Richmond, Virginia with a branch office in Middleburg and Williamsburg. Middleburg Investment Advisors, Inc. is an SEC registered investment advisor located in Alexandria, Virginia.
MIDDLEBURG FINANCIAL CORPORATION
SUMMARY INCOME STATEMENT For the Three Months Ended
(Unaudited, dollars in thousands)
Dec 31, Sep 30, Jun 30,
2009 2009 2009
-------- -------- --------
INTEREST INCOME
Interest and fees on loans $11,041 $11,973 $12,870
Interest on investment
securities 1,883 1,998 1,990
TOTAL INTEREST INCOME $12,924 $13,971 $14,860
------- ------- -------
INTEREST EXPENSE
Interest on deposits $3,633 $3,866 $3,959
Interest on borrowings 577 749 991
TOTAL INTEREST EXPENSE $4,210 $4,615 $4,950
------ ------ ------
NET INTEREST INCOME $8,714 $9,356 $9,910
PROVISION FOR LOAN LOSSES 967 964 1,583
--- --- -----
NET INTEREST INCOME AFTER
PROVISION
FOR LOAN LOSSES $7,747 $8,392 $8,327
------ ------ ------
NON INTEREST INCOME
Trust and investment advisory
fee income $816 $813 $792
Service charges on deposits 487 474 490
Gain on the sale of loans 3,283 2,407 3,378
Net gains (losses) on
securities available for
sale 365 (258) 661
Commissions on investment
sales 174 148 172
Equity earnings in
unconsolidated subsidiaries 40 23 92
Bank owned life insurance 109 123 130
Other service charges,
commissions and fees 429 298 450
Other operating income (loss) 36 29 (36)
TOTAL NON INTEREST INCOME $5,739 $4,057 $6,129
------ ------ ------
NON INTEREST EXPENSE
Salaries and employee
benefits $6,187 $6,925 $7,670
Net occupancy expense of
premises 1,499 1,455 1,566
Other taxes 150 148 145
Computer operations 344 285 360
Advertising and marketing 211 184 216
Other operating expenses 3,716 2,908 3,062
TOTAL NON INTEREST EXPENSE $12,107 $11,905 $13,019
------- ------- -------
INCOME BEFORE TAXES $1,379 $544 $1,437
Income tax (benefit) expense (5) (92) 21
--- --- ---
NET INCOME $1,374 $636
$1,416
LESS: NET (INCOME) /LOSS
ATTRIBUTABLE TO NON-
CONTROLLING INTEREST (270) (26) (603)
==== === ====
MIDDLEBURG FINANCIAL
CORPORATION NET INCOME $1,104 $610 $813
AMORTIZATION OF DISCOUNT ON
WARRANTS 378 19 19
DIVIDEND ON PREFERRED STOCK 253 275 275
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS $473 $316 $519
Mar 31,
2009 2008
------ ----
INTEREST INCOME
Interest and fees on loans $12,950 $48,088
Interest on investment securities 2,041 7,834
TOTAL INTEREST INCOME $14,991 $55,922
------- -------
INTEREST EXPENSE
Interest on deposits $4,156 $15,492
Interest on borrowings 1,151 7,227
TOTAL INTEREST EXPENSE $5,307 $22,719
------ -------
NET INTEREST INCOME $9,684 $33,203
PROVISION FOR LOAN LOSSES 1,037 5,261
----- -----
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES $8,647 $27,942
------ -------
NON INTEREST INCOME
Trust and investment advisory
fee income $797 $3,737
Service charges on deposits 455 1,922
Gain on the sale of loans 2,792 8,656
Net gains (losses) on
securities available for sale 230 (913)
Commissions on investment sales 85 433
Equity earnings in
unconsolidated subsidiaries 111 -
Bank owned life insurance 127 469
Other service charges,
commissions and fees 374 1,985
Other operating income (loss) 16 615
TOTAL NON INTEREST INCOME $4,987 $16,904
------ -------
NON INTEREST EXPENSE
Salaries and employee benefits $7,260 $25,376
Net occupancy expense of premises 1,384 5,826
Other taxes 145 642
Computer operations 301 1,110
Advertising and marketing 149 917
Other operating expenses 2,593 8,728
TOTAL NON INTEREST EXPENSE $11,832 $42,599
------- -------
INCOME BEFORE TAXES $1,802 $2,247
Income tax (benefit) expense 140 444
--- ---
NET INCOME $1,662 $1,803
LESS: NET (INCOME) /LOSS
ATTRIBUTABLE TO NON-
CONTROLLING INTEREST (678) 757
==== ===
MIDDLEBURG FINANCIAL
CORPORATION NET INCOME $984 $2,560
AMORTIZATION OF DISCOUNT ON WARRANTS 13 -
DIVIDEND ON PREFERRED STOCK 183 -
NET INCOME AVAILABLE TO
COMMON SHAREHOLDERS $788 $2,560
(1) On January 1, 2009, Middleburg Financial Corporation adopted
Statement of Financial Accounting Standards No. 160 (SFAS No. 160),
"Non-controlling Interests in Consolidated Financial Statements -
an amendment of ARB No. 51," (Codified within ASC 810) the
provisions of which, among others, requires that minority interests
be renamed non-controlling interests and that a company present a
consolidated net income (loss) measure that includes the amount
attributable to such non-controlling interests for all periods
presented.
MIDDLEBURG FINANCIAL CORPORATION
BALANCE SHEET
(dollars in thousands) Unaudited Unaudited Unaudited
12/31/2009 9/30/2009 6/30/2009
---------- --------- ---------
Assets:
Cash and due from banks $41,494 $80,646 $39,721
Interest-bearing
balances in banks 1,716 2,214 2,958
Federal funds sold - - 54,600
Securities at fair value 178,924 168,049 162,355
Loans, net of allowance
for loan losses 635,094 643,293 642,883
Mortgages held for resale 45,010 36,826 74,346
Premises and equipment,
net 23,506 22,848 22,722
Other assets 50,629 43,902 44,975
------ ------ ------
Total assets $976,373 $997,777 $1,044,560
======== ======== ==========
Liabilities and
Shareholders' Equity:
Liabilities:
Deposits:
Non-interest bearing
demand deposits $106,459 $105,648 $124,472
Savings and interest-
bearing demand
deposits 396,294 380,527 347,561
Time deposits 302,895 301,453 338,100
------- ------- -------
Total deposits $805,648 $787,628 $810,133
Securities sold under
agreements to repurchase 17,199 19,808 19,505
Short term borrowings 3,538 7,112 21,278
Long-term debt 35,000 43,000 74,000
Trust preferred capital
notes 5,155 5,155 5,155
Other liabilities 6,474 9,853 10,981
----- ----- ------
Total liabilities $873,014 $872,556 $941,052
-------- -------- --------
Shareholders' Equity:
Preferred stock, par value
$1,000.00 per share - $21,622 $21,603
Common stock, par value
$2.50 per share 17,273 17,255 12,483
Capital surplus 42,807 42,702 28,310
Retained earnings 42,706 43,051 43,235
Accumulated other
comprehensive loss, net (2,474) (2,202) (5,156)
------ ------ ------
Total Middleburg Financial
Corporation shareholders'
equity $100,312 $122,428 $100,475
Non-Controlling interest 3,047 2,793 3,033
----- ----- -----
Total shareholders' equity 103,359 125,221 103,508
------- ------- -------
Total liabilities and
shareholders' equity $976,373 $997,777 $1,044,560
(dollars in thousands) Unaudited Audited
3/31/2009 12/31/2008
--------- ----------
Assets:
Cash and due from banks $21,059 $23,980
Interest-bearing
balances in banks 1,725 2,400
Federal funds sold 24,500 9,000
Securities at fair value 165,921 181,312
Loans, net of allowance
for loan losses 650,600 662,375
Mortgages held for resale 66,439 40,301
Premises and equipment, net 22,920 22,987
Other assets 45,099 42,836
------ ------
Total assets $998,263 $985,191
======== ========
Liabilities and
Shareholders' Equity:
Liabilities:
Deposits:
Non-interest bearing
demand deposits $113,130 $110,537
Savings and interest-
bearing demand deposits 329,042 300,006
Time deposits 331,075 334,239
------- -------
Total deposits $773,247 $744,782
Securities sold under
agreements to repurchase 18,989 22,678
Short term borrowings 15,340 40,944
Long-term debt 74,000 84,000
Trust preferred capital notes 5,155 5,155
Other liabilities 10,833 9,636
------ -----
Total liabilities $897,564 $907,195
-------- --------
Shareholders' Equity:
Preferred stock, par value
$1,000.00 per share $21,584 -
Common stock, par value
$2.50 per share 11,826 11,336
Capital surplus 26,083 23,967
Retained earnings 43,665 43,555
Accumulated other
comprehensive loss, net (5,026) (3,181)
------ ------
Total Middleburg Financial
Corporation shareholders' equity $98,132 $75,677
Non-Controlling interest 2,567 2,319
----- -----
Total shareholders' equity 100,699 77,996
------- ------
Total liabilities and
shareholders' equity $998,263 $985,191
MIDDLEBURG FINANCIAL CORPORATION
KEY STATISTICS
4Q09 3Q09 2Q09 1Q09
---- ---- ---- ----
Net Income (dollars in thousands) $1,114 $610 $813 $984
Earnings per share, basic $0.07 $0.05 $0.11 $0.17
Earnings per share,
diluted $0.07 $0.05 $0.11 $0.17
Return on average total
assets 0.35% 0.29% 0.19% 0.35%
Return on average total
equity 2.82% 2.51% 1.88% 3.81%
Dividend payout ratio 142.86% 200.00% 172.73% 111.76%
Fee revenue as a percent
of total revenue(1) 29.37% 23.60% 26.90% 24.09%
Net interest margin(2) 3.83% 4.13% 4.36% 4.45%
Yield on average earning
assets 5.61% 6.08% 6.46% 6.79%
Yield on average interest-
bearing liabilities 2.16% 2.35% 2.50% 2.73%
Net interest spread 3.45% 3.73% 3.96% 4.06%
Non-interest income to
average assets 2.10% 1.71% 2.15% 1.93%
Non-interest expense to
average assets 4.74% 4.71% 5.12% 4.80%
Efficiency ratio(3) 83.48% 84.26% 82.25% 79.50%
(1) Excludes gains and losses on securities available for sale
(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.
(3) 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.
MIDDLEBURG FINANCIAL CORPORATION
SELECTED FINANCIAL DATA BY QUARTER
4Q09 3Q09 2Q09 1Q09
---- ---- ---- ----
BALANCE SHEET RATIOS
Loans to deposits 80.00% 81.67% 79.36% 84.14%
Average interest-
earning assets
to average-interest
bearing liabilities 121.36% 120.32% 119.05% 116.57%
PER SHARE DATA
Dividends $0.10 $0.10 $0.19 $0.19
Book value $14.52 $14.61 $15.80 $16.14
Tangible book value $13.57 $13.65 $14.47 $14.74
SHARE PRICE DATA
Closing price $14.59 $13.05 $13.76 $11.47
Diluted earnings multiple(1) 0.97 0.67 0.66 0.53
Book value multiple(2) 1.00 0.89 0.87 0.55
COMMON STOCK DATA
Outstanding shares at end
of period 6,909,293 6,901,843 4,993,245 4,730,317
Weighted average shares
outstanding 5,635,687 5,208,624 4,675,849 4,536,495
Weighted average shares
outstanding, diluted 6,906,429 6,267,267 4,822,365 4,538,598
CAPITAL RATIOS
Total risk based
capital ratio 15.07% 18.22% 14.73% 14.51%
Tier 1 risk based
capital ratio 13.88% 16.97% 13.54% 13.28%
Leverage ratio 10.42% 12.50% 10.58% 10.52%
CREDIT QUALITY
Net charge-offs to
average loans 0.18% 0.17% 0.26% 0.19%
Total non-performing loans
to total loans 1.48% 1.57% 1.99% 1.35%
Total non-performing assets
to total assets 1.64% 1.88% 1.96% 1.73%
Non-accrual loans to:
total loans 1.34% 1.38% 1.99% 1.35%
total assets 0.88% 0.90% 1.24% 0.89%
Allowance for loan
losses to:
total loans 1.37% 1.41% 1.45% 1.48%
non-performing assets 55.92% 49.21% 46.14% 56.16%
non-accrual loans 104.11% 102.43% 72.62% 109.21%
NON-PERFORMING ASSETS:
(dollars in thousands)
Loans delinquent over
90 days $908 $1,206 $- $31
Non-accrual loans 8,608 9,008 12,985 8,888
Other real estate owned
and repossessed assets 6,511 8,537 7,455 8,367
NET LOAN CHARGE-OFFS (RECOVERIES):
(dollars in thousands)
Loans charged off $1,280 $1,216 $1,866 $1,369
(Recoveries) (48) (49) (6) (19)
Net charge-offs (recoveries) 1,232 1,167 1,860 1,350
PROVISION FOR LOAN LOSSES $967 $964 $1,583 $1,037
(dollars in thousands)
ALLOWANCE FOR LOAN LOSS SUMMARY
(dollars in thousands)
Balance at the
beginning of period $9,227 $9,430 $9,707 $10,020
STM allowance at
beginning of period - - - -
Provision 967 964 1,583 1,037
Net charge-offs (recoveries) 1,232 1,167 1,860 1,350
Balance at the end of period $8,962 $9,227 $9,430 $9,707
(1) The diluted earnings multiple (or price earnings ratio) is
calculated by dividing the period's closing market price per share
by total equity per weighted average shares outstanding, diluted
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 December 31,
2009
----
Average Income/ Yield/
Balance Expense Rate (3)
------- ------- -------
(Dollars in thousands)
Assets :
Securities:
Taxable $105,503 $1,145 4.31%
Tax-exempt (1) (2) 63,902 1,055 6.55%
------ -----
Total securities $169,405 $2,200 5.15%
Loans
Taxable $694,603 $11,041 6.31%
Tax-exempt (1) - -
--- ---
Total loans $694,603 $11,041 6.31%
Federal funds sold - -
Interest bearing deposits in
other financial institutions 75,089 42 0.22%
------ ---
Total earning assets $939,097 $13,283 5.61%
Less: allowances for
credit losses (9,177)
Total nonearning assets 86,153
------
Total assets $1,016,073
==========
Liabilities:
Interest-bearing deposits:
Checking $270,939 $666 0.98%
Regular savings 64,959 183 1.12%
Money market savings 50,796 137 1.07%
Time deposits:
$100,000 and over 140,727 1,105 3.12%
Under $100,000 166,898 1,542 3.67%
------- -----
Total interest-
bearing deposits $694,319 $3,633 2.08%
Short-term borrowings 12,662 74 2.32%
Securities sold under agreements
to repurchase 20,259 8 0.16%
Long-term debt 46,590 495 4.22%
Federal funds purchased - -
--- ---
Total interest-
bearing liabilities $773,830 $4,210 2.16%
Non-interest bearing liabilities
Demand deposits 107,160
Other liabilities 10,341
------
Total liabilities $891,331
Non-controlling interest 3,020
Shareholders' equity 121,722
Total liabilities and
shareholders' equity $1,016,073
==========
Net interest income $9,073
======
Interest rate spread 3.45%
Interest expense as a percent of
average earning assets 1.78%
Net interest margin 3.83%
Return on average assets 0.35%
Return on average equity 2.82%
2008
----
Average Income/ Yield/
Balance Expense Rate (3)
------- ------- -------
(Dollars in thousands)
Assets :
Securities:
Taxable $111,809 $1,291 4.59%
Tax-exempt (1) (2) 54,139 991 7.28%
------ ---
Total securities $165,948 $2,282 5.47%
Loans
Taxable $694,132 $12,036 6.90%
Tax-exempt (1) 5 - 0.00%
--- ---
Total loans $694,137 $12,036 6.90%
Federal funds sold 10,790 18 0.66%
Interest bearing deposits in
other financial institutions 4,452 41 3.66%
----- ---
Total earning assets $875,327 $14,377 6.53%
Less: allowances for credit
losses (10,057)
Total nonearning assets 82,952
------
Total assets $948,222
========
Liabilities:
Interest-bearing deposits:
Checking $207,411 $944 1.81%
Regular savings 49,461 187 1.50%
Money market savings 37,009 117 1.26%
Time deposits:
$100,000 and over 120,034 1,081 3.58%
Under $100,000 194,513 1,933 3.95%
------- -----
Total interest-bearing
deposits $608,428 $4,262 2.79%
Short-term borrowings 29,162 277 3.78%
Securities sold under agreements
to repurchase 24,457 47 0.76%
Long-term debt 92,090 990 4.28%
Federal funds purchased 31 - 0.00%
--- ---
Total interest-
bearing liabilities $754,168 $5,576 2.94%
Non-interest bearing liabilities
Demand deposits 112,013
Other liabilities 6,142
-----
Total liabilities $872,323
Non-controlling interest 2,418
Shareholders' equity 73,481
Total liabilities and
shareholders' equity $948,222
========
Net interest income $8,801
======
Interest rate spread 3.59%
Interest expense as a percent of
average earning assets 2.53%
Net interest margin 4.00%
Return on average assets 0.21%
Return on average equity 2.66%
(1) Income and yields are reported on tax equivalent basis assuming a
federal tax rate of 34%.
(2) Income and yields include dividends on preferred bonds which are
70% excludable for tax purposes.
(3) All yields and rates have been annualized on a 365 day year.
Middleburg Financial Corporation
Average Balances, Income and Expenses, Yields and Rates
Twelve Months Ended December 31,
2009
----
Average Income/ Yield/
Balance Expense Rate (3)
------- ------- -------
(Dollars in thousands)
Assets :
Securities:
Taxable $105,765 $4,830 4.57%
Tax-exempt (1) (2) 64,305 4,461 6.94%
------ -----
Total securities $170,070 $9,291 5.46%
Loans
Taxable $710,745 $48,834 6.87%
Tax-exempt (1) 1 - 0%
--- ---
Total loans $710,746 $48,834 6.87%
Federal funds sold 20,607 42 0.20%
Interest bearing deposits in
other financial institutions 38,485 95 0.25%
------ ---
Total earning assets $939,908 $58,262 6.20%
Less: allowances for
credit losses (9,160)
Total nonearning assets 83,697
------
Total assets $1,014,445
==========
Liabilities:
Interest-bearing deposits:
Checking $251,781 $3,091 1.23%
Regular savings 57,669 738 1.28%
Money market savings 42,985 473 1.10%
Time deposits:
$100,000 and over 135,149 4,342 3.21%
Under $100,000 188,623 6,969 3.69%
------- -----
Total interest-bearing
deposits $676,207 $15,613 2.31%
Short-term borrowings 19,424 593 3.05%
Securities sold under agreements
to repurchase 21,122 40 0.19%
Long-term debt 69,407 2,835 4.08%
Federal Funds Purchased - -
--- ---
Total interest-bearing
liabilities $786,160 $19,081 2.43%
Non-interest bearing liabilities
Demand Deposits 107,936
Other liabilities 10,537
------
Total liabilities $904,633
Non-controlling interest 2,774
Shareholders' equity 107,038
Total liabilities and
shareholders' equity $1,014,445
==========
Net interest income $39,181
=======
Interest rate spread 3.77%
Interest expense as a percent of
average earning assets 2.03%
Net interest margin 4.17%
Return on average assets 0.35%
Return on average equity 3.21%
2008
----
Average Income/ Yield/
Balance Expense Rate (3)
------- ------- -------
(Dollars in thousands)
Assets :
Securities:
Taxable $108,482 $5,348 4.93%
Tax-exempt (1) (2) 47,975 3,306 6.89%
------ -----
Total securities $156,457 $8,654 5.53%
Loans
Taxable $689,210 $48,087 6.98%
Tax-exempt (1) 9 1 11.11%
--- ---
Total loans $689,219 $48,088 6.98%
Federal funds sold 7,604 139 1.83%
Interest bearing deposits in
other financial institutions 4,097 165 4.03%
----- ---
Total earning assets $857,377 $57,046 6.65%
Less: allowances for credit
losses (9,251)
Total nonearning asset s 77,029
------
Total assets $925,155
========
Liabilities:
Interest-bearing deposits:
Checking $188,886 $3,755 1.99%
Regular savings 53,223 939 1.76%
Money market savings 39,267 465 1.18%
Time deposits:
$100,000 and over 127,398 5,021 3.94%
Under $100,000 128,781 5,311 4.12%
------- -----
Total interest-bearing
deposits $537,555 $15,491 2.88%
Short-term borrowings 44,983 1,988 4.42%
Securities sold under agreements
to repurchase 40,924 831 2.03%
Long-term debt 100,308 4,398 4.38%
Federal Funds Purchased 397 11 2.77%
--- ---
Total interest-bearing
liabilities $724,167 $22,719 3.14%
Non-interest bearing liabilities
Demand Deposits 114,466
Other liabilities 7,328
-----
Total liabilities $845,961
Non-controlling interest 3,232
Shareholders' equity 75,961
Total liabilities and
shareholders' equity $925,154
========
Net interest income $34,327
=======
Interest rate spread 3.52%
Interest expense as a percent of
average earning assets 2.65%
Net interest margin 4.00%
Return on average assets 0.28%
Return on average equity 3.37%
(1) Income and yields are reported on tax equivalent basis assuming a
federal tax rate of 34%.
(2) Income and yields include dividends on preferred bonds which are
70% excludable for tax purposes.
(3) All yields and rates have been annualized on a 365 day year.
SOURCE Middleburg Financial Corporation
