Middleburg Financial Corporation Announces 2006 Third Quarter Earnings
Contact:
Joseph L. Boling, Chairman & CEO
540-687-6377 or
ceo@middleburgbank.com
Alice P. Frazier, EVP & COO
540-687-4801 or
coo@middleburgbank.com
Kate J. Chappell, SVP & CFO
540-687-4816 or
cfo@middleburgbank.com
MIDDLEBURG, VIRGINIA(October 23, 2006) – Middleburg Financial Corporation (NASDAQ –MBRG)
reported net income of $2.3 million, or $0.52 per diluted share, for the quarter ended September 30, 2006. This represents an increase of 11.0% or $234,000 from the $2.1 million, or $0.54 per diluted share, for quarter ended June 30, 2006. Much of this increase resulted from fewer operating expenses incurred during the quarter. When compared to the quarter ended September 30, 2005, net income for the quarter ended September 30, 2006 decreased by 3.0% or $73,000. Much of this decrease resulted from decreased earnings from mortgage operations.
Total consolidated assets were $772.6 million at September 30, 2006. Increased funding costs continue to negatively impact the net interest margin, bringing it to 3.93% for the quarter ended September 30, 2006 from 3.96% for the quarter ended June 30, 2006 and 4.05% for the quarter ended September 30, 2005. However, cost savings during the third quarter 2006 have helped to improve the Company’s return on average assets and its efficiency ratio. Return on average assets was 1.21% for the quarter ended September 30, 2006 compared to 1.11% for the quarter ended June 30, 2006. Return on average assets was 1.27% for the quarter ended September 30, 2005.
The Company’s efficiency ratio was 60.42% for the quarter ended September 30, 2006 compared to 63.71% and 60.12% for the quarters ended June 30, 2006 and September 30, 2005, respectively. See the “Key Statistics” table toward the end of this press release for a discussion of the calculation of the efficiency ratio, which is not a measurement under accounting principles generally accepted in the United States.
As expected with both reduced earnings from mortgage operations and the issuance of additional equity in July 2006, the Company’s return on average equity considerably declined for the quarter ended September 30, 2006 when compared to the quarters ended June 30, 2006 and September 30, 2005. Return on average equity was 12.47% for the quarter ended September 30, 2006 compared to 15.29% for the quarter ended June 30, 2006. Return on average equity was 16.92% for the quarter ended September 30, 2005.
Net income for the nine months ended September 30, 2006 increased 16.8% to $6.5 million, or $1.58 per diluted share, from $5.5 million, or $1.42 per diluted share, for the same time period in 2005. The net interest margin for the nine months ended September 30, 2006 decreased 18 basis points to 3.98% from 4.16% for the nine months ended September 30, 2005. The return on average assets was 1.14% and 1.11% for the nine months ended September 30, 2006 and 2005, respectively. The return on average equity was 14.09% and 14.07% for the nine months ended September 30, 2006 and 2005, respectively. The efficiency ratios for the nine months ended September 30, 2006 and 2005 were 62.02% and 62.05%, respectively.
The components of net income per diluted share are summarized below:
| For the Three Months Ended |
| For the Nine Months Ended | ||||
| September 30, |
| September 30, | ||||
| 2006 |
| 2005 |
| 2006 |
| 2005 |
Core Banking | $ 0.45 |
| $ 0.47 |
| $ 1.38 |
| $ 1.11 |
Mortgage | 0.05 |
| 0.12 |
| 0.13 |
| 0.22 |
Wealth Management | 0.02 |
| 0.02 |
| 0.07 |
| 0.09 |
| $ 0.52 |
| $ 0.62 |
| $ 1.58 |
| $ 1.42 |
Earnings from core banking operations increased 24.9% to $1.38 per diluted share when comparing the nine months ended September 30, 2006 to September 30, 2005. The increase in earnings year-to-date from core banking operations resulted from increases in interest income driven by the Company’s record 2005 loan growth. However, earnings from core banking operations have been negatively impacted during 2006 by the Company’s reduced loan production and the compression of the net interest margin. Considering the current interest rate and competitive market environment, the Company has been diligent about maintaining its credit quality and thereby cautious about the growth it has added to the loan portfolio.
Earnings from mortgage operations of the Company decreased 43.0% from $0.22 per diluted share for the nine months ended September 30, 2005 to $0.13 per diluted share for the nine months ended September 30, 2006. Although overall production has declined for Southern Trust Mortgage, LLC (STM), some of this decrease was attributed to narrowed margins resulting from shifts in the mix of retail and wholesale loan volume. Earnings from wealth management operations declined 22.5% to $0.07 per diluted share for the nine months ended September 30, 2006 when compared to $0.09 per diluted share for the same time period in 2005. Earnings from wealth management operations consists of net income of the Middleburg Investment Group, the non-bank subsidiary of the Company that generates revenues from trust and investment advisory activities through Middleburg Trust Company (MTC), a wholly owned trust subsidiary, Middleburg Investment Advisors, Inc. (MIA), a wholly owned registered investment advisor focused on fixed income investments, and Middleburg Bank Investment Sales, which is a division of Middleburg Bank. Much of the 22.5% decrease in net earnings was related to the decrease in net income generated by Middleburg Bank Investment Sales. Middleburg Bank Investment Sales net income decreased 64.7% when comparing the nine months ended September 30, 2005 to September 30, 2006 due to decreased sales resulting from fewer financial consultants employed during the nine months ended September 30, 2006. Additionally, the resignation of a top producer in July 2006 heavily impacted the production for the quarter ended September 30, 2006. The Company is in the process of recruiting additional financial consultants.
Net Interest Income and Net Interest Margin
The net interest margin declined from 4.16% for the nine months ended September 30, 2005 to 3.98% for the same time period in 2006. The decline in the net interest margin was mostly attributed to the steady rise in interest rates on deposits and borrowings to fund the earning asset growth.
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 footnote (1) following the “Key Statistics” table below.
Net interest income increased 6.8% when comparing the quarter ended September 30, 2006 to the same time period in 2005. Net interest income increased 11.2% from $18.1 million for the nine months ended September 30, 2005 to $20.1 million for the nine months ended September 30, 2006. Interest income increased 29.4% while interest expense increased 71.0% when comparing the nine months ended September 30, 2006 to the same time period in 2005. The significant increase in interest expense resulted from both the increase in the average amount of short and long term funding from the nine months ended September 30, 2005 to the same period in 2006 and the 200 basis point increase in the Federal Funds rate and the 100 plus basis point increase in the three month LIBOR rate during that same period.
Interest income from loans increased $2.1 million or 26.3% when comparing the quarter ended September 30, 2006 to the same time period in 2005. Interest income from loans increased $7.7 million or 37.8% when comparing the nine months ended September 30, 2006 to the same time period in September 30, 2005. While the yield on the loan portfolio increased by 59 basis points from September 30, 2005 to September 30, 2006, the majority of the increase in interest income from loans was attributable to the increased volume of the loan portfolio. Average net loans increased $76.2 million from the nine months ended September 30, 2005 to the nine months ended September 30, 2006. Interest income from the investment portfolio decreased $95,000 from the nine months ended September 30, 2005 to the same period in 2006 while the tax equivalent yield on the investment portfolio increased 50 basis points over that same time period. The average balance of the investment portfolio decreased $19.3 million or 11.6% from the nine months ended September 30, 2005 to the nine months ended September 30, 2006.
With large pay downs of short term funding afforded by the proceeds received in July 2006 from the Company’s common stock offering, the Company’s near term exposure to a rising rate environment has been reduced and the balance sheet shows a more asset sensitive profile. The expected decrease in net interest income could be approximately 1.17% or $27,000 in a 12-month period of rising rates of 200 basis points, based on modeling results at August 31, 2006.
Non Interest Income
Non interest income decreased $688,000 or 23.7% when comparing the quarter ended September 30, 2006 to the same time period in 2005. Non interest income decreased $585,000 or 8.2% when comparing the nine months ended September 30, 2006 to the same time period in 2005. These decreases result from both a decrease in earnings from STM and fewer gains on sales of investment securities.
Trust and investment advisory fees earned by MTC and MIA increased 0.3% or $3,000 when comparing the quarter ended September 30, 2006 to the same time period in 2005 and 5.5% or $158,000 when comparing the nine months ended September 30, 2006 to the same time period in 2005. 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 remained unchanged at $1.1 billion at September 30, 2005 and 2006.
Service charges on deposits increased 1.5% from the quarter ended September 30, 2005 to the same time period in 2006. Service charges on deposits increased $79,000 or 6.1% to $1.4 million for the nine months ended September 30, 2006, compared to $1.3 million for the same time period in 2005. In particular, ATM and Visa check card fees have increased approximately $56,000 for the nine months ended September 30, 2006 when compared to the same period in 2005.
Investment sales fees decreased 30.8% or $45,000 from the quarter ended September 30, 2005 to the same time period in 2006. Investment sales fees decreased 10.1% to $462,000 for the nine months ended September 30, 2006, compared to $513,000 for the same time period in 2005. During July 2006, one of Middleburg Investment Sales’ top producers resigned from the company. Middleburg Bank owns an interest in BI Investments Group, LLC (BI), which is a consortium of 32 community banks primarily based in Virginia. This ownership interest allows the Company to use BI as its full-service broker-dealer.
Equity in earnings from affiliate, which reflects the 41.8% ownership interest in STM, decreased 49.1% or $346,000 from the quarter ended September 30, 2005 to the same time period in 2006. STM closed $238.9 million in loans for the quarter ended September 30, 2006 with 58.5% of its production attributable to purchase money financings. For the quarter ended September 30, 2005, STM closed $304.5 million in loans with 56.2% of its production attributable to purchase money financings. Equity in earnings from affiliate decreased 39.7% or $520,000 from $1.3 million for the nine months ended September 30, 2005 to $789,000 for the same time period in 2006. STM closed $681.4 million in loans for the nine months ended September 30, 2006 with 61.7% of its production attributable to purchase money financings. For the nine months ended September 30, 2005, STM closed $801.2 million in loans with 63.0% of its production attributable to purchase money financings. STM’s 2006 production levels have been negatively impacted by the tightening of the housing market and the impact that the increase in mortgage rates has had on the volume of refinance loans. Additionally, narrowed margins from the shift in production mix has negatively impacted its 2006 earnings.
Income earned from the Bank’s $10.8 million investment in Bank Owned Life Insurance (BOLI) contributed $111,000 and $122,000 for the quarters ended September 30, 2006 and 2005, respectively. Income earned from BOLI contributed $324,000 to total other income for the nine months ended September 30, 2006 and $354,000 for the same time period in 2005. The Company purchased BOLI in 2004 to help subsidize increasing employee benefit costs and expenses related to the restructure of its supplemental retirement plans.
Other service charges, including fees from loans and other service fees, decreased $20,000 or 12.7% from the quarter ended September 30, 2005 to the same time period in 2006. This decrease was driven mostly by reduced loan processing fees resulting from lower loan production levels during the third quarter of 2006. Other service charges increased $52,000 or 13.1% from the nine months ended September 30, 2005 to the same time period in 2006. The increase was mostly attributed to the increase related to both additional safe deposit boxes that became available for rent and an increase in the safe deposit box rental fees in mid-year 2005.
Non Interest Expense
Non interest expense increased $30,000 or 0.5% from the quarter ended September 30, 2005 to the same time period in 2006. Non interest expense increased $1.0 million for the nine months ended September 30, 2006 when compared to the same time period in 2005. Salary and employee benefit expense increased 4.4% or $141,000 for the quarter ended September 30, 2006 when compared to the same time period in 2005. This increase results mostly from increases in the cost of health insurance. Salary and employee benefit expense increased 6.9% or $634,000 from the nine months ended September 30, 2005 to the same time period in 2006. Mid year 2005, two experienced commercial lenders were hired to support business development efforts related to the Warrenton financial service center, which opened in October 2005. Additionally, various retail staff positions were added to the Company’s payroll in efforts to prepare for opening of the Warrenton facility. $245,000 of the $634,000 increase in salary and employee benefit expense relates to the Company’s Warrenton financial service center.
Net occupancy and equipment expense increased $37,000 or 5.3% when comparing the quarter ended September 30, 2005 to the quarter ended September 30, 2006. This increase is driven mostly by the additional depreciation expense related to the Warrenton financial service center, which opened in October 2005. Net occupancy and equipment expense increased $191,000 or 9.2% to $2.3 million for the nine months ended
September 30, 2006 compared to $2.1 million for the same time period in 2005. The Company’s Warrenton location accounted for $157,000 to the net increase in occupancy expenses, due mostly to additional depreciation costs related to that facility.
Other taxes, which is comprised of mostly bank franchise tax, increased 7.6% or $9,000 from the quarter ended September 30, 2005 to the same time period in 2006. Other taxes increased 7.9% to $375,000 for the nine months ended September 30, 2006. Computer operations expense increased $34,000 or 15.5% from the quarter ended September 30, 2005 to the quarter ended September 30, 2006. Computer operations expense increased $70,000 or 10.7% from the nine months ended September 30, 2005 to the same time period in 2006. These increases are related to increased maintenance costs of in-house core operating and support systems resulting mostly from the Company’s growth. Additional maintenance costs have also been incurred with coverage of the Company’s recently installed customer relationship management software.
Other operating expenses decreased $191,000 or 14.9% when comparing the quarter ended September 30, 2006 to the same time period in 2005. Other operating expenses decreased 2.0% or $62,000 from $3.1 million for the nine months ended September 30, 2005 to $3.0 million for the same time period in 2006. The decreases resulted from decreases in various other expense categories including advisory, legal, educational, and travel.
Total Consolidated Assets
Total assets increased 6.8% to $772.6 million at September 30, 2006 from $723.3 million at September 30, 2005. Total loans, net of allowance for loan losses, increased 13.2% or $64.9 million to $557.8 million at September 30, 2006 from $492.9 million at September 30, 2005. Considering the current interest rate and competitive market environment, the Company has been diligent about maintaining its credit quality and thereby cautious about the growth it has added to the loan portfolio. Additional staff, a solid local economy, the relationship with STM, and success of the business model, which focuses on high quality financial solutions to clients and increasing client introductions across business lines, are all believed to have contributed to the strong loan growth experienced.
At September 30, 2006, there were no non performing loans, representing a decrease of $92,000 from September 30, 2005. Total loans past due 90 days or more were less than $1,000 at September 30, 2006 and declined slightly from the $1,000 at September 30, 2005. The loan loss provision was $418,000 for the nine months ended September 30, 2006. The allowance for loan losses was $5.5 million or 0.98% of total loans outstanding at September 30, 2006. Net charge offs were $48,000 for the nine months ended September 30, 2006, compared to net charge offs of $6,000 for the same time period in 2005. Based upon internal analysis by the Company’s credit administration department, which factors, among other things, the credit quality of the portfolio, the allowance for loan losses was deemed adequate at 0.98% of total loans outstanding.
The investment portfolio decreased $13.1 million or 8.3% to $144.5 million at September 30, 2006 compared to $157.6 million at September 30, 2005. During 2005 and 2006, management elected to utilize cash received from principal pay downs, maturities and calls in its investment portfolio to fund loan growth rather than re-invest into the investment portfolio. This strategy decreased the size of the investment portfolio. In anticipation of rising interest rates, the Company has also held to an investment strategy that focuses on keeping the portfolio relatively short by purchasing securities with weighted average lives that typically do not exceed three years.
Deposits and Other Borrowings
Total deposits, which includes brokered deposits, increased 7.7% to $560.3 million at September 30, 2006 from $520.1 million at September 30, 2005. Total retail deposits, which excludes brokered deposits, increased 5.7% from $506.2 million at September 30, 2005 to $535.0 million at September 30, 2006. At September 30, 2006,
$25.2 million of the brokered certificates remained outstanding. The Company had $13.9 million in brokered certificates of deposits at September 30, 2005.
Securities sold under agreements to repurchase with commercial checking account clients decreased by $9.2 million or 22.0% from September 30, 2005 to $32.6 million at September 30, 2006. Federal Home Loan Bank advances and overnight borrowings decreased $6.4 million or 7.3% to $81.7 million at September 30, 2006 from $88.1 million at September 30, 2005. During the third quarter of 2006, FHLB overnight borrowings were decreased with a portion of the proceeds received by the Company from its common stock issuance.
Equity
In July 2006, the Company issued 676,552 shares of its common stock in an underwritten public offering, including the exercise of the underwriter’s over-allotment option. The public price of $31.00 per share, less the underwriters’ commissions and expenses of the offering, resulted in net proceeds of $19.7 million to the Company. The Company used the proceeds to increase its equity and to provide additional equity capital to the Bank to support the growth of operations.
Stockholders’ equity increased 44.9% from $53.6 million at September 30, 2005 to $77.6 million at September 30, 2006. The book value of the Company at September 30, 2006 was $17.22 per common share. Total common shares outstanding were 4,505,605 at September 30, 2006.
Joseph L. Boling, Chairman and CEO stated, “We are pleased with our performance given both the pause in the real estate market and the flat yield curve. The capital we raised combined with our business model will allow us to continue our measured growth in this outstanding market.”
On September 20, 2006, the board of directors declared a $0.19 per common share cash dividend for shareholders of record as of September 27, 2006 and payable on October 20, 2006.
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, 2005, 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 Investment Group owns Middleburg Trust Company and Middleburg Investment Advisors, Inc. Middleburg Bank serves Loudoun, Fairfax, and Fauquier Counties in Virginia with seven financial service centers. Middleburg Trust Company is headquartered in Richmond, Virginia with a branch office in Middleburg. Middleburg Investment Advisors, Inc. is a SEC registered investment advisor located in Alexandria, Virginia.
MIDDLEBURG FINANCIAL CORPORATION |
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SUMMARY INCOME STATEMENT |
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( Unaudited, dollars in thousands) |
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| For the Nine Months | ||
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| Ended September 30, | ||
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| 2006 |
| 2005 |
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INTEREST INCOME |
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| Interest and fees on loans | $ 28,217 |
| $ 20,471 |
| Interest on investment securities | 5,431 |
| 5,526 |
| Interest on short term investments | - |
| - |
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TOTAL INTEREST INCOME | $ 33,648 |
| $ 25,997 | |
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INTEREST EXPENSE |
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| Interest on deposits | $ 8,320 |
| $ 4,298 |
| Interest on borrowings | 5,214 |
| 3,616 |
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TOTAL INTEREST EXPENSE | $ 13,534 |
| $ 7,915 | |
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NET INTEREST INCOME | $ 20,113 |
| $ 18,082 | |
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PROVISION FOR LOAN LOSSES | 418 |
| 1,458 | |
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NET INTEREST INCOME AFTER PROVISION |
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| FOR LOAN LOSSES | $ 19,695 |
| $ 16,624 |
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NON INTEREST INCOME |
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| Trust and investment advisory fee income | $ 3,060 |
| $ 2,902 |
| Service charges on deposits | 1,381 |
| 1,302 |
| Net gains on securities available for sale | 1 |
| 252 |
| Commissions on investment sales | 462 |
| 513 |
| Equity in earnings from affiliate | 789 |
| 1,309 |
| Bank owned life insurance | 324 |
| 354 |
| Other service charges, commissions and fees | 452 |
| 400 |
| Other operating income | 87 |
| 109 |
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TOTAL NON INTEREST INCOME | $ 6,556 |
| $ 7,141 | |
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NON INTEREST EXPENSE |
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| Salaries and employee benefits | $ 10,195 |
| $ 9,510 |
| Net occupancy expense of premises | 2,274 |
| 2,083 |
| Other taxes | 375 |
| 347 |
| Computer operations | 726 |
| 655 |
| Other operating expenses | 3,435 |
| 3,399 |
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TOTAL NON INTEREST EXPENSE | $ 17,004 |
| $ 15,995 | |
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INCOME BEFORE TAXES | $ 9,248 |
| $ 7,771 | |
| Income tax expense | 2,762 |
| 2,216 |
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NET INCOME | $ 6,486 |
| $ 5,555 |
MIDDLEBURG FINANCIAL CORPORATION |
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SUMMARY INCOME STATEMENT |
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( Unaudited, dollars in thousands) |
| For the Three Months Ended | |||||||||
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| 3Q06 |
| 2Q06 |
| 1Q06 |
| 4Q05 |
| 3Q05 |
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INTEREST INCOME |
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| Interest and fees on loans |
| $ 9,843 |
| $ 9,508 |
| $ 8,866 |
| $ 8,478 |
| $ 7,793 |
| Interest on investment securities |
| 1,850 |
| 1,794 |
| 1,787 |
| 1,737 |
| 1,754 |
| Interest on short term investments |
| - |
| - |
| - |
| - |
| 5 |
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TOTAL INTEREST INCOME |
| $ 11,692 |
| $ 11,302 |
| $ 10,653 |
| $ 10,215 |
| $ 9,552 | |
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INTEREST EXPENSE |
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| Interest on deposits |
| $ 3,154 |
| $ 2,641 |
| $ 2,525 |
| $ 2,226 |
| $ 1,943 |
| Interest on borrowings |
| 1,753 |
| 1,944 |
| 1,517 |
| 1,455 |
| 1,257 |
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TOTAL INTEREST EXPENSE |
| $ 4,907 |
| $ 4,585 |
| $ 4,042 |
| $ 3,681 |
| $ 3,200 | |
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NET INTEREST INCOME |
| $ 6,785 |
| $ 6,717 |
| $ 6,611 |
| $ 6,534 |
| $ 6,352 | |
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PROVISION FOR LOAN LOSSES |
| 55 |
| 113 |
| 250 |
| 286 |
| 317 | |
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NET INTEREST INCOME AFTER PROVISION |
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| FOR LOAN LOSSES |
| $ 6,731 |
| $ 6,604 |
| $ 6,361 |
| $ 6,248 |
| $ 6,035 |
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NON INTEREST INCOME |
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| Trust and investment advisory fee income |
| $ 985 |
| $ 1,004 |
| $ 1,071 |
| $ 1,038 |
| $ 982 |
| Service charges on deposits |
| 471 |
| 474 |
| 436 |
| 481 |
| 464 |
| Net gains on securities available for sale |
| - |
| 1 |
| - |
| (176) |
| 273 |
| Commissions on investment sales |
| 102 |
| 167 |
| 193 |
| 162 |
| 147 |
| Equity in earnings from affiliate |
| 358 |
| 328 |
| 103 |
| 220 |
| 704 |
| Bank owned life insurance |
| 111 |
| 109 |
| 104 |
| 104 |
| 122 |
| Other service charges, commissions and fees |
| 140 |
| 153 |
| 160 |
| 136 |
| 160 |
| Other operating income |
| 46 |
| 16 |
| 24 |
| (85) |
| 49 |
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TOTAL NON INTEREST INCOME |
| $ 2,213 |
| $ 2,252 |
| $ 2,091 |
| $ 1,880 |
| $ 2,901 | |
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NON INTEREST EXPENSE |
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| Salaries and employee benefits |
| $ 3,371 |
| $ 3,347 |
| $ 3,477 |
| $ 3,610 |
| $ 3,230 |
| Net occupancy expense of premises |
| 743 |
| 790 |
| 741 |
| 715 |
| 706 |
| Other taxes |
| 125 |
| 125 |
| 125 |
| 118 |
| 116 |
| Computer operations |
| 257 |
| 235 |
| 233 |
| 210 |
| 223 |
| Other operating expenses |
| 1,093 |
| 1,372 |
| 970 |
| 1,273 |
| 1,284 |
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TOTAL NON INTEREST EXPENSE |
| $ 5,589 |
| $ 5,869 |
| $ 5,546 |
| $ 5,926 |
| $ 5,559 | |
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INCOME BEFORE TAXES |
| $ 3,354 |
| $ 2,987 |
| $ 2,906 |
| $ 2,202 |
| $ 3,377 | |
| Income tax expense |
| 1,019 |
| 885 |
| 858 |
| 583 |
| 968 |
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NET INCOME |
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| $ 2,336 |
| $ 2,102 |
| $ 2,048 |
| $ 1,619 |
| $ 2,409 |
MIDDLEBURG FINANCIAL CORPORATION |
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BALANCE SHEET |
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(dollars in thousands) | Unaudited |
| Unaudited |
| Unaudited |
| Audited |
| Unaudited |
| 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
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Assets: |
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|
|
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|
|
|
|
Cash and due from banks | $ 14,624 |
| $ 17,551 |
| $ 13,813 |
| $ 15,465 |
| $ 19,606 |
Interest-bearing balances in banks | 273 |
| 563 |
| 288 |
| 160 |
| 191 |
Securities at fair value | 144,540 |
| 145,910 |
| 149,967 |
| 149,591 |
| 157,612 |
Loans, net of allowance for loan losses | 557,803 |
| 551,825 |
| 543,399 |
| 520,511 |
| 492,900 |
Bank premises and equipment, net | 18,214 |
| 18,402 |
| 18,638 |
| 18,656 |
| 17,861 |
Other assets | 37,099 |
| 36,772 |
| 35,912 |
| 35,528 |
| 35,130 |
|
|
|
|
|
|
|
|
|
|
Total assets | $ 772,553 |
| $ 771,024 |
| $ 762,017 |
| $ 739,911 |
| $ 723,300 |
|
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|
|
Liabilities and Shareholders' Equity: |
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|
|
Liabilities: |
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|
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|
|
Deposits: |
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|
|
|
|
Non-interest bearing demand deposits | $ 123,508 |
| $ 140,019 |
| $ 121,809 |
| $ 128,641 |
| $ 128,697 |
Savings and interest-bearing demand deposits | 249,246 |
| 256,182 |
| 287,881 |
| 273,570 |
| 251,789 |
Time deposits | 187,235 |
| 165,367 |
| 136,138 |
| 149,221 |
| 139,579 |
Total deposits | $ 559,989 |
| $ 561,568 |
| $ 545,828 |
| $ 551,432 |
| $ 520,065 |
|
|
|
|
|
|
|
|
|
|
Federal funds purchased | - |
| - |
| - |
| - |
| 1,050 |
Securities sold under agreements to repurchase | 32,906 |
| 36,939 |
| 34,902 |
| 34,317 |
| 41,818 |
Federal Home Loan Bank advances | 26,700 |
| 44,000 |
| 51,275 |
| 24,100 |
| 30,600 |
Long-term debt | 55,000 |
| 55,000 |
| 55,000 |
| 57,500 |
| 57,500 |
Trust preferred capital notes | 15,465 |
| 15,465 |
| 15,465 |
| 15,465 |
| 15,465 |
Other liabilities | 4,894 |
| 3,372 |
| 5,014 |
| 3,621 |
| 3,232 |
Commitment and contingent liabilities | - |
| - |
| - |
| - |
| - |
Total liabilities | $ 694,954 |
| $ 716,344 |
| $ 707,484 |
| $ 686,435 |
| $ 669,730 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
Common stock, par value $2.50 per share | $ 11,264 |
| $ 9,523 |
| $ 9,523 |
| $ 9,515 |
| $ 9,515 |
Capital surplus | 23,667 |
| 5,459 |
| 5,459 |
| 5,431 |
| 5,376 |
Retained earnings | 43,463 |
| 41,984 |
| 40,605 |
| 39,281 |
| 38,385 |
Accumulated other comprehensive income (loss), net | (796) |
| (2,285) |
| (1,054) |
| (751) |
| 294 |
Total shareholders' equity | $ 77,598 |
| $ 54,681 |
| $ 54,533 |
| $ 53,476 |
| $ 53,570 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity | $ 772,553 |
| $ 771,024 |
| $ 762,017 |
| $ 739,911 |
| $ 723,300 |
MIDDLEBURG FINANCIAL CORPORATION |
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| |
KEY STATISTICS |
| For the Three Months Ended | |||||||||
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| 3Q06 |
| 2Q06 |
| 1Q06 |
| 4Q05 |
| 3Q05 |
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| Net Income(dollars in thousands) |
| $ 2,336 |
| $ 2,102 |
| $ 2,048 |
| $ 1,619 |
| $ 2,409 |
| Earnings per share, basic |
| $ 0.53 |
| $ 0.55 |
| $ 0.54 |
| $ 0.43 |
| $ 0.63 |
| Earnings per share, diluted |
| $ 0.52 |
| $ 0.54 |
| $ 0.52 |
| $ 0.41 |
| $ 0.62 |
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| Return on average total assets |
| 1.21% |
| 1.11% |
| 1.11% |
| 0.89% |
| 1.27% |
| Return on average total equity |
| 12.47% |
| 15.29% |
| 15.17% |
| 12.26% |
| 16.92% |
| Dividend payout ratio |
| 35.75% |
| 34.43% |
| 35.33% |
| 44.19% |
| 30.16% |
| Fee revenue as a percent of total revenue |
| 15.91% |
| 16.62% |
| 16.41% |
| 16.75% |
| 21.58% |
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| Net interest margin(1) |
| 3.93% |
| 3.96% |
| 4.05% |
| 3.99% |
| 4.05% |
| Yield on average earning assets |
| 6.69% |
| 6.59% |
| 6.45% |
| 6.18% |
| 6.03% |
| Yield on average interest-bearing liabilities |
| 3.46% |
| 3.21% |
| 2.94% |
| 2.68% |
| 2.42% |
| Net interest spread |
| 3.24% |
| 3.38% |
| 3.51% |
| 3.50% |
| 3.61% |
| Tax equivalent adjustment to net interest income (dollars in thousands) | $ 195 |
| $ 191 |
| $ 192 |
| $ 196 |
| $ 205 | |
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| Non-interest income to average assets |
| 1.14% |
| 1.18% |
| 1.13% |
| 1.11% |
| 1.47% |
| Non-interest expense to average assets |
| 2.89% |
| 3.09% |
| 2.93% |
| 3.19% |
| 3.11% |
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| Efficiency ratio(2) |
| 60.42% |
| 63.71% |
| 61.95% |
| 65.49% |
| 60.12% |
(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%. For the quarters ended September 30, 2006 and 2005, net interest income on a tax equivalent basis was $7.0 million and $6.6 million, respectively. See the table below for a reconciliation of net interest income to tax equivalent net interest income. 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 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%. For the quarters ended September 30, 2006 and 2005, tax equivalent net interest income was $7.0 million and $6.6 million, respectively. See the table below for a reconciliation of net interest income to tax equivalent net interest income. Total non interest income, excluding gains and losses on the investment portfolio, for the quarters ended September 30, 2006 and 2005, was $2.2 million and $2.6 million, respectively. 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. The Company believes that the efficiency ratio is a reasonable measure of profitability.
MIDDLEBURG FINANCIAL CORPORATION |
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SELECTED FINANCIAL DATA BY QUARTER |
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| |
|
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| 3Q06 |
| 2Q06 |
| 1Q06 |
| 4Q05 |
| 3Q05 |
BALANCE SHEET RATIOS |
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| |
| Loans to deposits |
| 100.59% |
| 99.24% |
| 100.54% |
| 95.31% |
| 95.53% |
| Average interest-earning assets to |
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|
|
| average-interest bearing liabilities |
| 123.22% |
| 122.27% |
| 122.35% |
| 123.58% |
| 123.94% |
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PER SHARE DATA |
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| |
| Dividends |
| $ 0.19 |
| $ 0.19 |
| $ 0.19 |
| $ 0.19 |
| $ 0.19 |
| Book value |
| $ 17.22 |
| $ 14.36 |
| $ 14.32 |
| $ 14.07 |
| $ 14.09 |
| Tangible book value |
| $ 15.97 |
| $ 12.85 |
| $ 12.79 |
| $ 12.50 |
| $ 12.51 |
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SHARE PRICE DATA |
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| Closing price |
| $ 34.05 |
| $ 30.83 |
| $ 35.00 |
| $ 30.75 |
| $ 34.35 |
| Diluted earnings multiple |
| 1.80 |
| 2.31 |
| 2.51 |
| 2.24 |
| 2.50 |
| Book value multiple |
| 1.98 |
| 2.15 |
| 2.44 |
| 2.19 |
| 2.44 |
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COMMON STOCK DATA |
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| |
| Outstanding shares at end of period |
| 4,505,605 |
| 3,809,053 |
| 3,809,053 |
| 3,806,053 |
| 3,806,053 |
| Weighted average shares outstanding |
| 4,394,724 |
| 3,809,053 |
| 3,807,786 |
| 3,803,075 |
| 3,802,082 |
| Weighted average shares outstanding, diluted |
| 4,482,970 |
| 3,899,198 |
| 3,904,965 |
| 3,906,443 |
| 3,906,146 |
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CAPITAL RATIOS |
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| |
| Total equity to total assets |
| 10.04% |
| 7.09% |
| 7.16% |
| 7.23% |
| 7.41% |
| Total risk based capital ratio |
| 15.20% |
| 11.16% |
| 11.70% |
| 11.79% |
| 12.31% |
| Tier 1 risk based capital ratio |
| 14.30% |
| 10.27% |
| 10.80% |
| 10.89% |
| 11.42% |
| Leverage ratio |
| 11.52% |
| 8.29% |
| 8.76% |
| 8.60% |
| 8.93% |
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CREDIT QUALITY |
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| |
| Net charge-offs to average loans |
| 0.00% |
| 0.01% |
| 0.00% |
| 0.00% |
| 0.00% |
| Total non-performing loans to total loans |
| 0.00% |
| 0.00% |
| 0.00% |
| 0.02% |
| 0.02% |
| Total non-performing assets to total assets |
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| Non-accrual loans to: |
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| total loans |
| 0.00% |
| 0.05% |
| 0.00% |
| 0.02% |
| 0.02% |
| total assets |
| 0.00% |
| 0.03% |
| 0.00% |
| 0.01% |
| 0.01% |
| Allowance for loan losses to: |
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| total loans |
| 0.98% |
| 0.98% |
| 0.98% |
| 0.98% |
| 0.98% |
| non-performing loans |
| 0.00% |
| 2130.08% |
| 33562.50% |
| 4321.85% |
| 5236.56% |
| non-accrual loans |
| 0.00% |
| 2138.43% |
| 48818.18% |
| 5844.32% |
| 5293.48% |
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NON-PERFORMING ASSETS: |
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| |
(dollars in thousands) |
|
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| |
| Loans delinquent over 90 days |
| $ - |
| $ 1 |
| $ 5 |
| $ 31 |
| $ 1 |
| Non-accrual loans |
| - |
| 255 |
| 11 |
| 88 |
| 92 |
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NET LOAN CHARGE-OFFS (RECOVERIES): |
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| |
(dollars in thousands) |
|
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| |
| Loans charged off |
| $ 14 |
| $ 36 |
| $ 47 |
| $ 21 |
| $ 15 |
| (Recoveries) |
| (19) |
| (6) |
| (24) |
| (8) |
| (5) |
| Net charge-offs (recoveries) |
| (5) |
| 30 |
| 23 |
| 13 |
| 10 |
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PROVISION FOR LOAN LOSSES (dollars in thousands) |
| $ 55 |
| $ 113 |
| $ 250 |
| $ 1,744 |
| $ 1,458 | |
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ALLOWANCE FOR LOAN LOSS SUMMARY |
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(dollars in thousands) |
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| Balance at the beginning of period |
| $ 5,453 |
| $ 5,370 |
| $ 5,143 |
| $ 4,870 |
| $ 4,563 |
| Provision |
| 55 |
| 113 |
| 250 |
| 286 |
| 317 |
| Net charge-offs (recoveries) |
| (5) |
| 30 |
| 23 |
| 13 |
| 10 |
| Balance at the end of period |
| 5,513 |
| 5,453 |
| 5,370 |
| 5,143 |
| 4,870 |
| Average Balances, Income and Expenses, Yields and Rates | ||||||||||
| Three Months Ended September 30, | ||||||||||
|
|
| 2006 |
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| 2005 |
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| Average |
| Income/ |
| Yield/ |
| Average |
| Income/ |
| Yield/ |
| Balance |
| Expense |
| Rate (3) |
| Balance |
| Expense |
| Rate (3) |
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| (Dollars in thousands) |
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Assets : |
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Securities: |
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|
|
Taxable | $ 113,922 |
| $ 1,455 |
| 5.07% |
| $ 127,872 |
| $ 1,358 |
| 4.21% |
Tax-exempt (1) (2) | 31,337 |
| 575 |
| 7.28% |
| 32,591 |
| 600 |
| 7.30% |
Total securities | $ 145,259 |
| $ 2,030 |
| 5.54% |
| $ 160,463 |
| $ 1,958 |
| 4.84% |
Loans |
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|
|
|
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|
|
|
Taxable | $ 558,223 |
| $ 9,841 |
| 6.99% |
| $ 481,191 |
| $ 7,791 |
| 6.42% |
Tax-exempt (1) | 89 |
| 2 |
| 8.92% |
| 113 |
| 2 |
| 7.02% |
Total loans | $ 558,312 |
| $ 9,843 |
| 6.99% |
| $ 481,304 |
| $ 7,793 |
| 6.42% |
Federal funds sold | 738 |
| 11 |
| 5.91% |
| 558 |
| 4 |
| 2.84% |
Interest on money market investments | - |
| - |
| - |
| - |
| - |
| - |
Interest bearing deposits in |
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|
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|
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|
|
other financial institutions | 329 |
| 4 |
| 4.82% |
| 129 |
| 1 |
| 3.08% |
Total earning assets | $ 704,638 |
| $ 11,888 |
| 6.69% |
| $ 642,454 |
| $ 9,756 |
| 6.02% |
Less: allowances for credit losses | (5,461) |
|
|
|
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| (4,670) |
|
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|
|
Total nonearning assets | 68,247 |
|
|
|
|
| 65,830 |
|
|
|
|
Total assets | $ 767,424 |
|
|
|
|
| $ 703,614 |
|
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|
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Liabilities: |
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|
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|
|
Interest-bearing deposits: |
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|
|
|
|
|
|
|
|
|
|
Checking | $ 133,169 |
| $ 794 |
| 2.37% |
| $ 92,444 |
| $ 254 |
| 1.09% |
Regular savings | 52,463 |
| 230 |
| 1.74% |
| 54,301 |
| 212 |
| 1.55% |
Money market savings | 64,398 |
| 157 |
| 0.97% |
| 93,926 |
| 189 |
| 0.80% |
Time deposits: |
|
|
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|
|
|
|
|
|
|
|
$100,000 and over | 110,030 |
| 1,340 |
| 4.83% |
| 82,016 |
| 683 |
| 3.30% |
Under $100,000 | 64,209 |
| 633 |
| 3.91% |
| 75,765 |
| 604 |
| 3.16% |
Total interest-bearing deposits | $ 424,269 |
| $ 3,154 |
| 2.95% |
| $ 398,452 |
| $ 1,942 |
| 1.93% |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank Advances | 32,190 |
| 451 |
| 5.56% |
| 30,637 |
| 298 |
| 3.86% |
Securities sold under agreements |
|
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|
|
|
|
|
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|
|
|
to repurchase | 35,290 |
| 390 |
| 4.38% |
| 34,235 |
| 238 |
| 2.76% |
Long-term debt | 70,465 |
| 899 |
| 5.06% |
| 60,356 |
| 706 |
| 4.64% |
Federal Funds Purchased | 1,046 |
| 13 |
| 4.93% |
| 1,004 |
| 10 |
| 3.95% |
Total interest-bearing liabilities | $ 563,260 |
| $ 4,907 |
| 3.46% |
| $ 524,684 |
| $ 3,194 |
| 2.42% |
Non-interest bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits | 126,106 |
|
|
|
|
| 124,673 |
|
|
|
|
Other liabilities | 3,756 |
|
|
|
|
| 1,021 |
|
|
|
|
Total liabilities | $ 693,122 |
|
|
|
|
| $ 650,378 |
|
|
|
|
Shareholders' equity | 74,302 |
|
|
|
|
| 53,236 |
|
|
|
|
Total liabilities and shareholders'equity | $ 767,424 |
|
|
|
|
| $ 703,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
| $ 6,981 |
|
|
|
|
| $ 6,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
| 3.24% |
|
|
|
|
| 3.61% |
Interest expense as a percent of |
|
|
|
|
|
|
|
|
|
|
|
average earning assets |
|
|
|
| 2.76% |
|
|
|
|
| 1.97% |
Net interest margin |
|
|
|
| 3.93% |
|
|
|
|
| 4.05% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. |
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| |||||||
(2) Income and yields include dividends on preferred bonds which are 70% excludable for tax purposes. |
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(3) All yields and rates have been annualized on a 365 day year. |
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| Average Balances, Income and Expenses, Yields and Rates | ||||||||||
| Nine Months Ended September 30, | ||||||||||
|
|
| 2006 |
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|
|
| 2005 |
|
|
| Average |
| Income/ |
| Yield/ |
| Average |
| Income/ |
| Yield/ |
| Balance |
| Expense |
| Rate (3) |
| Balance |
| Expense |
| Rate (3) |
|
|
|
|
| (Dollars in thousands) |
|
| ||||
Assets : |
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|
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|
|
Securities: |
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|
|
|
|
|
|
|
Taxable | $ 116,480 |
| $ 4,274 |
| 4.91% |
| $ 133,584 |
| $ 4,299 |
| 4.30% |
Tax-exempt (1) (2) | 30,900 |
| 1,699 |
| 7.35% |
| 33,124 |
| 1,830 |
| 7.39% |
Total securities | $ 147,380 |
| $ 5,973 |
| 5.42% |
| $ 166,708 |
| $ 6,129 |
| 4.92% |
Loans |
|
|
|
|
|
|
|
|
|
|
|
Taxable | $ 546,830 |
| $ 28,213 |
| 6.90% |
| $ 433,702 |
| $ 20,463 |
| 6.31% |
Tax-exempt (1) | 95 |
| 6 |
| 8.44% |
| 182 |
| 11 |
| 8.08% |
Total loans | $ 546,925 |
| $ 28,219 |
| 6.90% |
| $ 433,884 |
| $ 20,474 |
| 6.31% |
Federal funds sold | 777 |
| 28 |
| 4.82% |
| 532 |
| 11 |
| 2.76% |
Interest on money market investments | - |
| - |
| - |
| - |
| - |
| - |
Interest bearing deposits in |
|
|
|
|
|
|
|
|
|
|
|
other financial institutions | 210 |
| 8 |
| 5.09% |
| 267 |
| 5 |
| 2.50% |
Total earning assets | $ 695,292 |
| $ 34,228 |
| 6.58% |
| $ 601,391 |
| $ 26,619 |
| 5.92% |
Less: allowances for credit losses | (5,337) |
|
|
|
|
| (4,115) |
|
|
|
|
Total nonearning assets | 68,428 |
|
|
|
|
| 63,695 |
|
|
|
|
Total assets | $ 758,383 |
|
|
|
|
| $ 660,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
Checking | $ 141,633 |
| $ 2,414 |
| 2.28% |
| $ 85,800 |
| $ 531 |
| 0.83% |
Regular savings | 55,893 |
| 713 |
| 1.71% |
| 40,078 |
| 296 |
| 0.99% |
Money market savings | 69,362 |
| 496 |
| 0.96% |
| 91,794 |
| 442 |
| 0.64% |
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
$100,000 and over | 89,805 |
| 2,968 |
| 4.42% |
| 75,987 |
| 1,695 |
| 2.98% |
Under $100,000 | 62,241 |
| 1,730 |
| 3.72% |
| 61,710 |
| 1,334 |
| 2.89% |
Total interest-bearing deposits | $ 418,934 |
| $ 8,321 |
| 2.66% |
| $ 355,369 |
| $ 4,298 |
| 1.62% |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank Advances | 37,119 |
| 1,452 |
| 5.23% |
| 31,400 |
| 784 |
| 3.34% |
Securities sold under agreements |
|
|
|
|
|
|
|
|
|
|
|
to repurchase | 36,760 |
| 1,119 |
| 4.07% |
| 33,696 |
| 619 |
| 2.46% |
Long-term debt | 70,483 |
| 2,607 |
| 4.95% |
| 63,569 |
| 2,185 |
| 4.60% |
Federal Funds Purchased | 961 |
| 36 |
| 5.01% |
| 1,123 |
| 28 |
| 3.33% |
Total interest-bearing liabilities | $ 564,257 |
| $ 13,535 |
| 3.21% |
| $ 485,157 |
| $ 7,914 |
| 2.18% |
Non-interest bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits | 128,933 |
|
|
|
|
| 121,052 |
|
|
|
|
Other liabilities | 3,633 |
|
|
|
|
| 2,376 |
|
|
|
|
Total liabilities | $ 696,823 |
|
|
|
|
| $ 608,585 |
|
|
|
|
Shareholders' equity | 61,560 |
|
|
|
|
| 52,386 |
|
|
|
|
Total liabilities and shareholders'equity | $ 758,383 |
|
|
|
|
| $ 660,971 |
|
|
|
|
|
|
|
|
|
| �� |
|
|
|
|
|
Net interest income |
|
| $ 20,693 |
|
|
|
|
| $ 18,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
| 3.37% |
|
|
|
|
| 3.74% |
Interest expense as a percent of |
|
|
|
|
|
|
|
|
|
|
|
average earning assets |
|
|
|
| 2.60% |
|
|
|
|
| 1.76% |
Net interest margin |
|
|
|
| 3.98% |
|
|
|
|
| 4.16% |
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INTEREST INCOME TO |
|
|
|
|
|
|
|
|
|
TAX EQUIVALENT NET INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AT PERIOD END |
|
|
|
|
|
|
|
|
|
(dollars in thousands) | 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
GAAP measures: |
|
|
|
|
|
|
|
|
|
Interest Income - Loans | $ 28,217 |
| $ 18,374 |
| $ 8,867 |
| $ 28,949 |
| $ 20,471 |
Interest Income - Investments & Other | 5,431 |
| 3,581 |
| 1,786 |
| 7,263 |
| 5,526 |
Interest Expense - Deposits | 8,320 |
| 5,166 |
| 2,525 |
| 6,525 |
| 4,298 |
Interest Expense - Other Borrowings | 5,214 |
| 3,461 |
| 1,517 |
| 5,071 |
| 3,617 |
Total Net Interest Income | $ 20,113 |
| $ 13,328 |
| $ 6,611 |
| $ 24,616 |
| $ 18,082 |
Plus: |
|
|
|
|
|
|
|
|
|
NON-GAAP measures: |
|
|
|
|
|
|
|
|
|
Tax Benefit Realized on Non- Taxable Interest Income - Loans | $ 1 |
| $ 1 |
| $ 1 |
| $ 5 |
| $ 8 |
Tax Benefit Realized on Non- Taxable Interest Income - Municipal Securities | 577 |
| 382 |
| 191 |
| 807 |
| 612 |
Tax Benefit Realized on Non- Taxable Interest Income - Corporate Securities | - |
| - |
| - |
| 8 |
| 4 |
Total Tax Benefit Realized on Non- Taxable Interest Income | $ 578 |
| $ 383 |
| $ 192 |
| $ 820 |
| $ 624 |
|
|
|
|
|
|
|
|
|
|
Total Tax Equivalent Net Interest Income | $ 20,691 |
| $ 13,711 |
| $ 6,803 |
| $ 25,436 |
| $ 18,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTH PERIOD ENDED |
|
|
|
|
|
|
|
|
|
(dollars in thousands) | 9/30/2006 |
| 6/30/2006 |
| 3/31/2006 |
| 12/31/2005 |
| 9/30/2005 |
GAAP measures: |
|
|
|
|
|
|
|
|
|
Interest Income - Loans | $ 9,843 |
| $ 9,507 |
| $ 8,867 |
| $ 8,478 |
| $ 7,793 |
Interest Income - Investments & Other | 1,850 |
| 1,795 |
| 1,786 |
| 1,737 |
| 1,759 |
Less: Interest Expense - Deposits | 3,154 |
| 2,641 |
| 2,525 |
| 2,226 |
| 1,942 |
Less: Interest Expense - Other Borrowings | 1,753 |
| 1,944 |
| 1,517 |
| 1,455 |
| 1,258 |
Total Net Interest Income | $ 6,785 |
| $ 6,717 |
| $ 6,611 |
| $ 6,534 |
| $ 6,352 |
Plus: |
|
|
|
|
|
|
|
|
|
NON-GAAP measures: |
|
|
|
|
|
|
|
|
|
Tax Benefit Realized on Non- Taxable Interest Income - Loans | $ - |
| $ - |
| $ 1 |
| $ 1 |
| $ 1 |
Tax Benefit Realized on Non- Taxable Interest Income - Municipal Securities | 195 |
| 191 |
| 191 |
| 195 |
| 202 |
Tax Benefit Realized on Non- Taxable Interest Income - Corporate Securities | - |
| - |
| - |
| - |
| 2 |
Total Tax Benefit Realized on Non- Taxable Interest Income | $ 195 |
| $ 191 |
| $ 192 |
| $ 196 |
| $ 205 |
|
|
|
|
|
|
|
|
|
|
Total Tax Equivalent Net Interest Income | $ 6,981 |
| $ 6,908 |
| $ 6,803 |
| $ 6,730 |
| $ 6,557 |