Exhibit 99.1
Middleburg Financial Corporation Announces Fourth Quarter Earnings and 2009 Earnings
Contact: |
| Gary R. Shook, President | 540-687-4801 or |
| pres@middleburgbank.com |
| Raj Mehra, EVP & CFO | 540-687-4816 or |
| Cfo@midleburgbank.com |
| Jeffrey H. Culver, EVP & COO | 703-737-3470 or |
| coo@middleburgbank.com |
MIDDLEBURG, VIRGINIA (February 1, 2010) – 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 3rd 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 Mortgageclosed $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 |
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SUMMARY INCOME STATEMENT | For the Three Months Ended |
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( Unaudited, dollars in thousands) |
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| Dec 31, 2009 |
| Sep 30, 2009 |
| Jun 30, 2009 |
| Mar 31, 2009 | 2008 |
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INTEREST INCOME |
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Interest and fees on loans | $ 11,041 |
| $ 11,973 |
| $ 12,870 |
| $ 12,950 | $ 48,088 |
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Interest on investment securities | 1,883 |
| 1,998 |
| 1,990 |
| 2,041 | 7,834 |
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TOTAL INTEREST INCOME | $ 12,924 |
| $ 13,971 |
| $ 14,860 |
| $ 14,991 | $ 55,922 |
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INTEREST EXPENSE |
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Interest on deposits | $ 3,633 |
| $ 3,866 |
| $ 3,959 |
| $ 4,156 | $ 15,492 |
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Interest on borrowings | 577 |
| 749 |
| 991 |
| 1,151 | 7,227 |
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TOTAL INTEREST EXPENSE | $ 4,210 |
| $ 4,615 |
| $ 4,950 |
| $ 5,307 | $ 22,719 |
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NET INTEREST INCOME | $ 8,714 |
| $ 9,356 |
| $ 9,910 |
| $ 9,684 | $ 33,203 |
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PROVISION FOR LOAN LOSSES | 967 |
| 964 |
| 1,583 |
| 1,037 | 5,261 |
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NET INTEREST INCOME AFTER PROVISION |
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FOR LOAN LOSSES | $ 7,747 |
| $ 8,392 |
| $ 8,327 |
| $ 8,647 | $ 27,942 |
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NON INTEREST INCOME |
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Trust and investment advisory fee income | $ 816 |
| $ 813 |
| $ 792 |
| $ 797 | $ 3,737 |
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Service charges on deposits | 487 |
| 474 |
| 490 |
| 455 | 1,922 |
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Gain on the sale of loans | 3,283 |
| 2,407 |
| 3,378 |
| 2,792 | 8,656 |
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Net gains (losses) on securities available for sale | 365 |
| (258) |
| 661 |
| 230 | (913) |
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Commissions on investment sales | 174 |
| 148 |
| 172 |
| 85 | 433 |
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Equity earnings in unconsolidated subsidiaries | 40 |
| 23 |
| 92 |
| 111 | - |
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Bank owned life insurance | 109 |
| 123 |
| 130 |
| 127 | 469 |
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Other service charges, commissions and fees | 429 |
| 298 |
| 450 |
| 374 | 1,985 |
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Other operating income (loss) | 36 |
| 29 |
| (36) |
| 16 | 615 |
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TOTAL NON INTEREST INCOME | $ 5,739 |
| $ 4,057 |
| $ 6,129 |
| $ 4,987 | $ 16,904 |
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NON INTEREST EXPENSE |
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Salaries and employee benefits | $ 6,187 |
| $ 6,925 |
| $ 7,670 |
| $ 7,260 | $ 25,376 |
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Net occupancy expense of premises | 1,499 |
| 1,455 |
| 1,566 |
| 1,384 | 5,826 |
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Other taxes | 150 |
| 148 |
| 145 |
| 145 | 642 |
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Computer operations | 344 |
| 285 |
| 360 |
| 301 | 1,110 |
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Advertising and marketing | 211 |
| 184 |
| 216 |
| 149 | 917 |
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Other operating expenses | 3,716 |
| 2,908 |
| 3,062 |
| 2,593 | 8,728 |
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TOTAL NON INTEREST EXPENSE | $ 12,107 |
| $ 11,905 |
| $ 13,019 |
| $ 11,832 | $ 42,599 |
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INCOME BEFORE TAXES | $ 1,379 |
| $ 544 |
| $ 1,437 |
| $ 1,802 | $ 2,247 |
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Income tax (benefit) expense | (5) |
| (92) |
| 21 |
| 140 | 444 |
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NET INCOME | $ 1,374 |
| $ 636 |
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$ 1,416 |
| $ 1,662 | $ 1,803 |
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LESS: NET (INCOME) / LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (270) |
| (26) |
| (603) |
| (678) | 757 |
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MIDDLEBURG FINANCIAL CORPORATION NET INCOME | $ 1,104 |
| $ 610 |
| $ 813 |
| $ 984 | $ 2,560 |
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AMORTIZATION OF DISCOUNT ON WARRANTS | 378 |
| 19 |
| 19 |
| 13 | - |
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DIVIDEND ON PREFERRED STOCK | 253 |
| 275 |
| 275 |
| 183 | - |
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NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 473 |
| $ 316 |
| $ 519 |
| $ 788 | $ 2,560 |
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(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 |
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BALANCE SHEET |
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(dollars in thousands) | Unaudited |
| Unaudited |
| Unaudited |
| Unaudited |
| Audited |
| 12/31/2009 |
| 9/30/2009 |
| 6/30/2009 |
| 3/31/2009 |
| 12/31/2008 |
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Assets: |
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Cash and due from banks | $ 41,494 |
| $ 80,646 |
| $ 39,721 |
| $ 21,059 |
| $ 23,980 |
Interest-bearing balances in banks | 1,716 |
| 2,214 |
| 2,958 |
| 1,725 |
| 2,400 |
Federal funds sold | - |
| - |
| 54,600 |
| 24,500 |
| 9,000 |
Securities at fair value | 178,924 |
| 168,049 |
| 162,355 |
| 165,921 |
| 181,312 |
Loans, net of allowance for loan losses | 635,094 |
| 643,293 |
| 642,883 |
| 650,600 |
| 662,375 |
Mortgages held for resale | 45,010 |
| 36,826 |
| 74,346 |
| 66,439 |
| 40,301 |
Premises and equipment, net | 23,506 |
| 22,848 |
| 22,722 |
| 22,920 |
| 22,987 |
Other assets | 50,629 |
| 43,902 |
| 44,975 |
| 45,099 |
| 42,836 |
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Total assets | $ 976,373 |
| $ 997,777 |
| $ 1,044,560 |
| $ 998,263 |
| $ 985,191 |
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Liabilities and Shareholders' Equity: |
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Liabilities: |
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Deposits: |
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Non-interest bearing demand deposits | $ 106,459 |
| $ 105,648 |
| $ 124,472 |
| $ 113,130 |
| $ 110,537 |
Savings and interest-bearing demand deposits | 396,294 |
| 380,527 |
| 347,561 |
| 329,042 |
| 300,006 |
Time deposits | 302,895 |
| 301,453 |
| 338,100 |
| 331,075 |
| 334,239 |
Total deposits | $ 805,648 |
| $ 787,628 |
| $ 810,133 |
| $ 773,247 |
| $ 744,782 |
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Securities sold under agreements to repurchase | 17,199 |
| 19,808 |
| 19,505 |
| 18,989 |
| 22,678 |
Short term borrowings | 3,538 |
| 7,112 |
| 21,278 |
| 15,340 |
| 40,944 |
Long-term debt | 35,000 |
| 43,000 |
| 74,000 |
| 74,000 |
| 84,000 |
Trust preferred capital notes | 5,155 |
| 5,155 |
| 5,155 |
| 5,155 |
| 5,155 |
Other liabilities | 6,474 |
| 9,853 |
| 10,981 |
| 10,833 |
| 9,636 |
Total liabilities | $ 873,014 |
| $ 872,556 |
| $ 941,052 |
| $ 897,564 |
| $ 907,195 |
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Shareholders' Equity: |
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Preferred stock, par value $1,000.00 per share | - |
| $ 21,622 |
| $ 21,603 |
| $ 21,584 |
| - |
Common stock, par value $2.50 per share | 17,273 |
| 17,255 |
| 12,483 |
| 11,826 |
| 11,336 |
Capital surplus | 42,807 |
| 42,702 |
| 28,310 |
| 26,083 |
| 23,967 |
Retained earnings | 42,706 |
| 43,051 |
| 43,235 |
| 43,665 |
| 43,555 |
Accumulated other comprehensive loss, net | (2,474) |
| (2,202) |
| (5,156) |
| (5,026) |
| (3,181) |
Total Middleburg Financial Corporation shareholders' equity | $ 100,312 |
| $ 122,428 |
| $ 100,475 |
| $ 98,132 |
| $ 75,677 |
Non-Controlling interest | 3,047 |
| 2,793 |
| 3,033 |
| 2,567 |
| 2,319 |
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Total shareholders' equity | 103,359 |
| 125,221 |
| 103,508 |
| 100,699 |
| 77,996 |
Total liabilities and shareholders' equity | $ 976,373 |
| $ 997,777 |
| $ 1,044,560 |
| $ 998,263 |
| $ 985,191 |
MIDDLEBURG FINANCIAL CORPORATION |
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KEY STATISTICS |
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| 4Q09 |
| 3Q09 |
| 2Q09 |
| 1Q09 |
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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 |
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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% |
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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% |
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Non-interest income to average assets |
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Non-interest expense to average assets | 2.10% |
| 1.71% |
| 2.15% |
| 1.93% |
| 4.74% |
| 4.71% |
| 5.12% |
| 4.80% |
Efficiency ratio(3) |
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| 83.48% |
| 84.26% |
| 82.25% |
| 79.50% |
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| (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 |
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SELECTED FINANCIAL DATA BY QUARTER |
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| 4Q09 |
| 3Q09 |
| 2Q09 |
| 1Q09 |
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BALANCE SHEET RATIOS |
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Loans to deposits | 80.00% |
| 81.67% |
| 79.36% |
| 84.14% |
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Average interest-earning assets to average-interest bearing liabilities | 121.36% |
| 120.32% |
| 119.05% |
| 116.57% |
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PER SHARE DATA |
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Dividends | $ 0.10 |
| $ 0.10 |
| $ 0.19 |
| $ 0.19 |
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Book value | $ 14.52 |
| $ 14.61 |
| $ 15.80 |
| $ 16.14 |
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Tangible book value | $ 13.57 |
| $ 13.65 |
| $ 14.47 |
| $ 14.74 |
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SHARE PRICE DATA |
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Closing price | $ 14.59 |
| $ 13.05 |
| $ 13.76 |
| $ 11.47 |
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Diluted earnings multiple(1) | 0.97 |
| 0.67 |
| 0.66 |
| 0.53 |
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Book value multiple(2) | 1.00 |
| 0.89 |
| 0.87 |
| 0.55 |
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COMMON STOCK DATA |
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Outstanding shares at end of period | 6,909,293 |
| 6,901,843 |
| 4,993,245 |
| 4,730,317 |
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Weighted average shares outstanding | 5,635,687 |
| 5,208,624 |
| 4,675,849 |
| 4,536,495 |
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Weighted average shares outstanding, diluted | 6,906,429 |
| 6,267,267 |
| 4,822,365 |
| 4,538,598 |
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CAPITAL RATIOS |
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|
|
|
|
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 |
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|
|
|
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: |
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|
|
|
|
|
|
|
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: |
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|
|
|
|
|
|
|
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: |
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|
|
|
(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): |
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(dollars in thousands) |
|
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|
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|
|
|
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 (dollars in thousands) | $ 967 |
| $ 964 |
| $ 1,583 |
| $ 1,037 |
|
ALLOWANCE FOR LOAN LOSS SUMMARY |
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(dollars in thousands) |
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|
|
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|
|
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|
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 |
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|
| 2008 |
|
|
| 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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|
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|
Securities: |
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|
|
|
|
|
|
|
|
|
Taxable | $ 105,503 |
| $ 1,145 |
| 4.31% |
| $ 111,809 |
| $ 1,291 |
| 4.59% |
Tax-exempt (1) (2) | 63,902 |
| 1,055 |
| 6.55% |
| 54,139 |
| 991 |
| 7.28% |
Total securities | $ 169,405 |
| $ 2,200 |
| 5.15% |
| $ 165,948 |
| $ 2,282 |
| 5.47% |
Loans |
|
|
|
|
|
|
|
|
|
|
|
Taxable | $ 694,603 |
| $ 11,041 |
| 6.31% |
| $ 694,132 |
| $ 12,036 |
| 6.90% |
Tax-exempt (1) | - |
| - |
|
|
| 5 |
| - |
| 0.00% |
Total loans | $ 694,603 |
| $ 11,041 |
| 6.31% |
| $ 694,137 |
| $ 12,036 |
| 6.90% |
Federal funds sold | - |
| - |
|
|
| 10,790 |
| 18 |
| 0.66% |
Interest bearing deposits in |
|
|
|
|
|
|
|
|
|
|
|
other financial institutions | 75,089 |
| 42 |
| 0.22% |
| 4,452 |
| 41 |
| 3.66% |
Total earning assets | $ 939,097 |
| $ 13,283 |
| 5.61% |
| $ 875,327 |
| $ 14,377 |
| 6.53% |
Less: allowances for credit losses | (9,177) |
|
|
|
|
| (10,057) |
|
|
|
|
Total nonearning assets | 86,153 |
|
|
|
|
| 82,952 |
|
|
|
|
Total assets | $ 1,016,073 |
|
|
|
|
| $ 948,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
Checking | $ 270,939 |
| $ 666 |
| 0.98% |
| $ 207,411 |
| $ 944 |
| 1.81% |
Regular savings | 64,959 |
| 183 |
| 1.12% |
| 49,461 |
| 187 |
| 1.50% |
Money market savings | 50,796 |
| 137 |
| 1.07% |
| 37,009 |
| 117 |
| 1.26% |
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
$100,000 and over | 140,727 |
| 1,105 |
| 3.12% |
| 120,034 |
| 1,081 |
| 3.58% |
Under $100,000 | 166,898 |
| 1,542 |
| 3.67% |
| 194,513 |
| 1,933 |
| 3.95% |
Total interest-bearing deposits | $ 694,319 |
| $ 3,633 |
| 2.08% |
| $ 608,428 |
| $ 4,262 |
| 2.79% |
|
|
|
|
|
|
|
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|
|
|
|
Short-term borrowings | 12,662 |
| 74 |
| 2.32% |
| 29,162 |
| 277 |
| 3.78% |
Securities sold under agreements |
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|
|
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|
|
|
to repurchase | 20,259 |
| 8 |
| 0.16% |
| 24,457 |
| 47 |
| 0.76% |
Long-term debt | 46,590 |
| 495 |
| 4.22% |
| 92,090 |
| 990 |
| 4.28% |
Federal funds purchased | - |
| - |
|
|
| 31 |
| - |
| 0.00% |
Total interest-bearing liabilities | $ 773,830 |
| $ 4,210 |
| 2.16% |
| $ 754,168 |
| $ 5,576 |
| 2.94% |
Non-interest bearing liabilities |
|
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|
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|
|
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|
|
|
Demand deposits | 107,160 |
|
|
|
|
| 112,013 |
|
|
|
|
Other liabilities | 10,341 |
|
|
|
|
| 6,142 |
|
|
|
|
Total liabilities | $ 891,331 |
|
|
|
|
| $ 872,323 |
|
|
|
|
Non-controlling interest | 3,020 |
|
|
|
|
| 2,418 |
|
|
|
|
Shareholders' equity | 121,722 |
|
|
|
|
| 73,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity | $ 1,016,073 |
|
|
|
|
| $ 948,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
| $ 9,073 |
|
|
|
|
| $ 8,801 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
Interest rate spread |
|
|
|
| 3.45% |
|
|
|
|
| 3.59% |
Interest expense as a percent of |
|
|
|
|
|
|
|
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|
|
|
average earning assets |
|
|
|
| 1.78% |
|
|
|
|
| 2.53% |
Net interest margin |
|
|
|
| 3.83% |
|
|
|
|
| 4.00% |
Return on average assets |
|
|
|
| 0.35% |
|
|
|
|
| 0.21% |
Return on average equity |
|
|
|
| 2.82% |
|
|
|
|
| 2.66% |
(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. |
| Middleburg Financial Corporation | ||||||||||
| Average Balances, Income and Expenses, Yields and Rates | ||||||||||
| Twelve Months Ended December 31, | ||||||||||
|
|
| 2009 |
|
|
|
|
| 2008 |
|
|
| Average |
| Income/ |
| Yield/ |
| Average |
| Income/ |
| Yield/ |
| Balance |
| Expense |
| Rate (3) |
| Balance |
| Expense |
| Rate (3) |
| (Dollars in thousands) | ||||||||||
Assets : |
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable | $ 105,765 |
| $ 4,830 |
| 4.57% |
| $ 108,482 |
| $ 5,348 |
| 4.93% |
Tax-exempt (1) (2) | 64,305 |
| 4,461 |
| 6.94% |
| 47,975 |
| 3,306 |
| 6.89% |
Total securities | $ 170,070 |
| $ 9,291 |
| 5.46% |
| $ 156,457 |
| $ 8,654 |
| 5.53% |
Loans |
|
|
|
|
|
|
|
|
|
|
|
Taxable | $ 710,745 |
| $ 48,834 |
| 6.87% |
| $ 689,210 |
| $ 48,087 |
| 6.98% |
Tax-exempt (1) | 1 |
| - |
| 0% |
| 9 |
| 1 |
| 11.11% |
Total loans | $ 710,746 |
| $ 48,834 |
| 6.87% |
| $ 689,219 |
| $ 48,088 |
| 6.98% |
Federal funds sold | 20,607 |
| 42 |
| 0.20% |
| 7,604 |
| 139 |
| 1.83% |
Interest bearing deposits in |
|
|
|
|
|
|
|
|
|
|
|
other financial institutions | 38,485 |
| 95 |
| 0.25% |
| 4,097 |
| 165 |
| 4.03% |
Total earning assets | $ 939,908 |
| $ 58,262 |
| 6.20% |
| $ 857,377 |
| $ 57,046 |
| 6.65% |
Less: allowances for credit losses | (9,160) |
|
|
|
|
| (9,251) |
|
|
|
|
Total nonearning assets | 83,697 |
|
|
|
|
| 77,029 |
|
|
|
|
Total assets | $ 1,014,445 |
|
|
|
|
| $ 925,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
Checking | $ 251,781 |
| $ 3,091 |
| 1.23% |
| $ 188,886 |
| $ 3,755 |
| 1.99% |
Regular savings | 57,669 |
| 738 |
| 1.28% |
| 53,223 |
| 939 |
| 1.76% |
Money market savings | 42,985 |
| 473 |
| 1.10% |
| 39,267 |
| 465 |
| 1.18% |
Time deposits: |
|
|
|
|
|
|
|
|
|
|
|
$100,000 and over | 135,149 |
| 4,342 |
| 3.21% |
| 127,398 |
| 5,021 |
| 3.94% |
Under $100,000 | 188,623 |
| 6,969 |
| 3.69% |
| 128,781 |
| 5,311 |
| 4.12% |
Total interest-bearing deposits | $ 676,207 |
| $ 15,613 |
| 2.31% |
| $ 537,555 |
| $ 15,491 |
| 2.88% |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings | 19,424 |
| 593 |
| 3.05% |
| 44,983 |
| 1,988 |
| 4.42% |
Securities sold under agreements |
|
|
|
|
|
|
|
|
|
|
|
to repurchase | 21,122 |
| 40 |
| 0.19% |
| 40,924 |
| 831 |
| 2.03% |
Long-term debt | 69,407 |
| 2,835 |
| 4.08% |
| 100,308 |
| 4,398 |
| 4.38% |
Federal Funds Purchased | - |
| - |
|
|
| 397 |
| 11 |
| 2.77% |
Total interest-bearing liabilities | $ 786,160 |
| $ 19,081 |
| 2.43% |
| $ 724,167 |
| $ 22,719 |
| 3.14% |
Non-interest bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
Demand Deposits | 107,936 |
|
|
|
|
| 114,466 |
|
|
|
|
Other liabilities | 10,537 |
|
|
|
|
| 7,328 |
|
|
|
|
Total liabilities | $ 904,633 |
|
|
|
|
| $ 845,961 |
|
|
|
|
Non-controlling interest | 2,774 |
|
|
|
|
| 3,232 |
|
|
|
|
Shareholders' equity | 107,038 |
|
|
|
|
| 75,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity | $ 1,014,445 |
|
|
|
|
| $ 925,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
| $ 39,181 |
|
|
|
|
| $ 34,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
|
|
|
| 3.77% |
|
|
|
|
| 3.52% |
Interest expense as a percent of |
|
|
|
|
|
|
|
|
|
|
|
average earning assets |
|
|
|
| 2.03% |
|
|
|
|
| 2.65% |
Net interest margin |
|
|
|
| 4.17% |
|
|
|
|
| 4.00% |
Return on average assets |
|
|
|
| 0.35% |
|
|
|
|
| 0.28% |
Return on average equity |
|
|
|
| 3.21% |
|
|
|
|
| 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. |
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|