Middleburg Financial Corporation Announces First Quarter 2014 Results
MIDDLEBURG, Va., April 30, 2014 /PRNewswire/ -- Middleburg Financial Corporation (the "Company") (Nasdaq: MBRG), today announced net income of $1.98 million for the quarter ended March 31, 2014, or $0.28 per diluted share.
"Middleburg Financial Corporation had a strong first quarter with positive momentum in earnings, which were driven by expansion in the net interest margin as we grew loans, strong fee income from wealth management which offset a decline in mortgage revenue and good expense control across the bank and its subsidiaries" commented Gary R. Shook, president and CEO of the Company. "Asset quality continues to improve steadily and in the first quarter we saw a decline in non-accrual loans and an improvement in delinquencies. Additionally, on March 26, we announced that Middleburg Bank, our wholly owned banking subsidiary had agreed to sell its majority ownership in Southern Trust Mortgage. The sale is expected to close in the first half of 2014, following the receipt of regulatory approval."
First Quarter 2014 Highlights:
- Net income of $1.98 million or $0.28 per diluted share for the quarter ended March 31, 2014, an increase of 48.98% compared to net income of $1.33 million or $0.19 per diluted share for the first quarter of 2013;
- Net interest margin expanded to 3.54%, compared to 3.43% for the fourth quarter of 2013 and 3.45% for the quarter ended March 31, 2013;
- Total revenue increased 1.49% to $15.59 million compared to the quarter ended March 31, 2013;
- Non-interest expenses declined by 12.87% to $12.14 million compared to the quarter ended March 31, 2013;
- The efficiency ratio declined to 75.19% compared to 88.32% in the previous quarter and 80.96% for the quarter ended March 31, 2013;
- Total assets were $1.21 billion as of quarter end, a decrease of 1.58% since December 31, 2013;
- Total deposits were $961.25 million as of quarter end, a decrease of 2.15% since December 31, 2013;
- Loans held-for-investment increased by $2.98 million to $731.46 million as of quarter end, an increase of 0.41% since December 31, 2013;
- Credit quality improved with nonaccrual loans declining by 24.69% since December 31, 2013;
- Nonperforming assets to total assets was 2.04% at March 31, 2014 compared to 2.33% at December 31, 2013;
- Capital ratios continue to be strong: Tangible Common Equity Ratio of 9.19%, Total Risk-Based Capital Ratio of 15.93%, Tier 1 Risk-Based Capital Ratio of 14.67%, and a Tier 1 Leverage Ratio of 9.61% at March 31, 2014.
- In light of the declining profitability of its majority-owned mortgage subsidiary resulting from reduced loan volumes and increased compliance costs from the implementation of rules related to the Dodd-Frank Wall Street Reform Act, on March 26, 2014, the Company announced an agreement to sell its membership interests in Southern Trust Mortgage to a consortium of banks and the President of Southern Trust Mortgage. The sale is expected to close in the second quarter of 2014, and is subject to regulatory approval.
Total Revenue
Total revenue, which is comprised of net interest income (before the provision for loan losses) and non-interest income, was $15.59 million for the quarter ended March 31, 2014, representing an increase of 1.49% compared to the quarter ended March 31, 2013.
The increase in revenue in the first quarter was driven by an expanding net interest margin. The net interest margin for the quarter ended March 31, 2014 was 3.54% compared to 3.43% for the quarter ended December 31, 2013 and 3.45% for the quarter ended March 31, 2013. Margin expansion during the quarter was principally due to the following:
- Loan growth accompanied by sales of lower yielding securities.
- Yields on earning assets increased by 10 basis points compared to the previous quarter primarily due to an increase in loan yields and higher yields on securities as premium amortization slowed and we sold some lower yielding investments.
- Cost of funds declined by 3 basis points compared to the previous quarter as we paid off maturing wholesale borrowings, reduced interest costs for NOW, money market and savings accounts and added non-interest bearing demand deposits.
Non-Interest Income
Non-interest income was lower by 0.79% compared to the quarter ended March 31, 2013 as our mortgage revenue declined in response to lower origination volumes, stemming from higher mortgage rates and severe weather during the first quarter which slowed borrower activity and impacted loan closings. The drop in mortgage revenue was partially offset by higher fees from our wealth management subsidiary. A more detailed discussion of non-interest income follows:
- Gains on mortgage loan sales decreased by 24.43% compared to the quarter ended March 31, 2013. We originated $109.36 million in mortgage loans during the quarter ended March 31, 2014 compared to $138.49 million during the previous quarter, and $191.10 million during the quarter ended March 31, 2013, a decrease of 21.03% compared to the previous quarter and a decrease of 42.77% compared to the quarter ended March 31, 2013.
- Total revenue generated by our wealth management group, Middleburg Investment Group ("MIG") was $1.19 million for the quarter ended March 31, 2014, an increase of 12.71% from the quarter ended March 31, 2013. Fee income is based primarily upon the market value of the accounts under administration which were $1.56 billion at March 31, 2014 compared to $1.55 billion at March 31, 2013.
- Other operating income was $941,000 for the quarter ended March 31, 2014, compared to $263,000 for the quarter ended March 31, 2013. Most of the other operating income during the first quarter of 2014 was related to the recovery of expenses related to one loan workout charged-off in a prior period.
Non-Interest Expense
Non-interest expense declined as actions to cut costs during 2013 took effect during the first quarter of 2014. Non-interest expense fell by 12.87% compared to the quarter ended March 31, 2013. Principal categories of non-interest expense that improved as a result of management's cost cutting initiatives were the following:
- Since March 31, 2013, management has reduced staffing levels at the bank and the mortgage company by 55 full-time equivalent employees. These changes were across the board and several senior management positions were eliminated as part of the reduction in force. Salaries and employee benefit expenses decreased by 9.82% compared to the quarter ended March 31, 2013. The ratio of salaries and benefits expense to total revenue was 45.11% compared to 50.76% for the quarter ended March 31, 2013.
- We streamlined campaign and product promotions, which reduced advertising expenses significantly. Advertising expenses for the quarter declined by 39.18% compared to the quarter ended March 31, 2013.
- Costs related to other real estate owned (OREO) declined during the quarter as our OREO balances fell and ongoing expenses to maintain the properties fell. Expenses related to OREO decreased by 79.63% compared to the quarter ended March 31, 2013. For the first quarter of 2014, there was one property transferred to OREO for $1.04 million compared to five properties transferred in the first quarter of 2013 for $1.85 million.
- Other operating expenses have declined 14.62% compared to the quarter ended March 31, 2013 primarily due to lower mortgage banking related expenses.
As operating expenses declined and revenue increased, the Company's efficiency ratio improved to 75.19% for the quarter ended March 31, 2014 compared to 88.32% for the previous quarter and 80.96% for the quarter ended March 31, 2013.
Asset Quality and Provision for Loan Losses
Nonperforming asset balances fell as nonaccrual loans and delinquencies declined. Net loan charge-offs during the first quarter of $980,000 exceeded the provision for loan losses of $888,000, which resulted in a slightly lower allowance for loan losses (ALLL) at the end of the quarter. The ALLL was $13.23 million representing 1.81% of total loans at March 31, 2014 compared to $13.32 million or 1.83% of total loans at the end of the previous quarter and $13.51 million or 1.89% of total loans at March 31, 2013.
- Total nonperforming assets were $24.71 million or 2.04% of total assets at March 31, 2014 compared to $28.66 million or 2.33% to total assets at December 31, 2013 and $33.59 million or 2.77% of total assets at March 31, 2013.
- Loans that were delinquent for more than 90 days and still accruing declined to $503,000 as of March 31, 2014 from $808,000 as of December 31, 2013 and $812,000 as of March 31, 2013.
- Nonaccrual loans declined to $14.88 million as of March 31, 2014 from $19.75 million as of December 31, 2013 and $20.02 million as of March 31, 2013, representing a decrease of 24.69% and 25.69%, respectively.
- Troubled debt restructurings that were performing as agreed were $4.84 million at March 31, 2014 compared to $4.67 million at December 31, 2013 and $4.85 million at March 31, 2013, representing an increase of 3.51% and a decrease of .33%, respectively.
Consolidated Assets
Total consolidated assets were relatively unchanged when compared to December 31, 2013. Total consolidated assets at March 31, 2014 were $1.21 billion, a decrease of 1.58% compared to December 31, 2013. Changes in major asset categories were as follows:
- Cash balances and deposits at other banks decreased by $14.28 million compared to December 31, 2013.
- Securities available for sale decreased by $2.90 million compared to December 31, 2013.
- Loans held for investment increased by $2.98 million during the first quarter compared December 31, 2013.
- Balances of mortgages held for sale decreased by $1.40 million compared to December 31, 2013.
- Other real estate owned (OREO) increased $1.07 million during the first quarter.
Consolidated Liabilities
Total consolidated liabilities at March 31, 2014 were $1.09 billion, a decrease of 2.01% compared to December 31, 2013. The most significant change in liabilities was the change in total deposits. Total deposits decreased by $21.15 million from December 31, 2013 to $961.25 million as of quarter end March 31, 2014, primarily due to seasonal activity and maturing wholesale deposits that we elected not to renew.
Shareholders' Equity and Capital
Shareholders' equity attributable to Middleburg Financial Corporation shareholders at March 31, 2014 was $115.84 million, compared to $112.58 million at December 31, 2013. Retained earnings at March 31, 2014 were $52.17 million compared to $50.69 million at December 31, 2013. The book value of the Company's common stock at March 31, 2014 was $16.37 per share versus $15.90 per share at December 31, 2013.
The Company's capital ratios remain well above regulatory minimum capital ratios as of March 31, 2014:
- Tier 1 Leverage ratio was 9.61%, 5.61% over the regulatory minimum of 4.0%
- Tier 1 Risk-Based Capital Ratio was 14.67%, 10.67% over the regulatory minimum of 4.0%
- Total Risk Based Capital Ratio was 15.93%, 7.93% over the regulatory minimum of 8.0%.
Caution about Forward Looking Statements
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, 2013, and other filings with the Securities and Exchange Commission.
About Middleburg Financial Corporation
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves communities in Virginia with financial centers in Ashburn, Gainesville, Leesburg, Marshall, Middleburg, Purcellville, Reston, Richmond, Warrenton and Williamsburg. Middleburg Investment Group owns Middleburg Trust Company, which is headquartered in Richmond, Virginia with offices in Middleburg, Alexandria and Williamsburg. Middleburg Financial Corporation is also the majority owner of Southern Trust Mortgage, which is based in Virginia Beach and provides mortgages through offices in Virginia, Maryland, Georgia, North Carolina, and South Carolina.
MIDDLEBURG FINANCIAL CORPORATION |
|||||||
Consolidated Balance Sheets |
|||||||
(In thousands, except for share and per share data) |
|||||||
(Unaudited) |
(Audited) |
||||||
March 31, 2014 |
December 31, 2013 |
||||||
ASSETS |
|||||||
Cash and due from banks |
$ |
6,238 |
$ |
6,648 |
|||
Interest-bearing deposits with other institutions |
46,824 |
60,695 |
|||||
Total cash and cash equivalents |
53,062 |
67,343 |
|||||
Securities available for sale, at fair value |
325,520 |
328,423 |
|||||
Loans held for sale |
31,771 |
33,175 |
|||||
Restricted securities, at cost |
6,404 |
6,780 |
|||||
Loans receivable, net of allowance for loan losses of $13,228 and $13,320, respectively |
718,236 |
715,160 |
|||||
Premises and equipment, net |
19,688 |
20,017 |
|||||
Goodwill and identified intangibles |
5,303 |
5,346 |
|||||
Other real estate owned, net of valuation allowance of $514 and $398, respectively |
4,491 |
3,424 |
|||||
Bank owned life insurance |
22,117 |
21,955 |
|||||
Accrued interest receivable and other assets |
21,820 |
26,130 |
|||||
TOTAL ASSETS |
$ |
1,208,412 |
$ |
1,227,753 |
|||
LIABILITIES |
|||||||
Deposits: |
|||||||
Non-interest bearing demand deposits |
$ |
188,651 |
$ |
185,577 |
|||
Savings and interest bearing demand deposits |
517,380 |
528,879 |
|||||
Time deposits |
255,220 |
267,940 |
|||||
Total deposits |
961,251 |
982,396 |
|||||
Securities sold under agreements to repurchase |
32,617 |
34,539 |
|||||
Federal Home Loan Bank borrowings |
80,000 |
80,000 |
|||||
Subordinated notes |
5,155 |
5,155 |
|||||
Accrued interest payable and other liabilities |
11,237 |
10,590 |
|||||
Commitments and contingent liabilities |
— |
— |
|||||
TOTAL LIABILITIES |
1,090,260 |
1,112,680 |
|||||
SHAREHOLDERS' EQUITY |
|||||||
Common stock ($2.50 par value; 20,000,000 shares authorized, 7,076,145 and 7,080,591, issued and outstanding, respectively) |
17,415 |
17,403 |
|||||
Capital surplus |
44,426 |
44,251 |
|||||
Retained earnings |
52,171 |
50,689 |
|||||
Accumulated other comprehensive income |
1,828 |
232 |
|||||
Total Middleburg Financial Corporation shareholders' equity |
115,840 |
112,575 |
|||||
Non-controlling interest in consolidated subsidiary |
2,312 |
2,498 |
|||||
TOTAL SHAREHOLDERS' EQUITY |
118,152 |
115,073 |
|||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,208,412 |
$ |
1,227,753 |
MIDDLEBURG FINANCIAL CORPORATION |
|||||||
Consolidated Statements of Income |
|||||||
(In thousands, except for per share data) |
|||||||
(Unaudited) |
|||||||
For the Three Months Ended |
|||||||
2014 |
2013 |
||||||
INTEREST AND DIVIDEND INCOME |
|||||||
Interest and fees on loans |
$ |
8,806 |
$ |
8,965 |
|||
Interest and dividends on securities available for sale |
|||||||
Taxable |
1,617 |
1,531 |
|||||
Tax-exempt |
584 |
630 |
|||||
Dividends |
73 |
56 |
|||||
Interest on deposits in banks and federal funds sold |
26 |
30 |
|||||
Total interest and dividend income |
11,106 |
11,212 |
|||||
INTEREST EXPENSE |
|||||||
Interest on deposits |
1,002 |
1,373 |
|||||
Interest on securities sold under agreements to repurchase |
80 |
80 |
|||||
Interest on short-term borrowings |
— |
29 |
|||||
Interest on FHLB borrowings and other debt |
313 |
295 |
|||||
Total interest expense |
1,395 |
1,777 |
|||||
NET INTEREST INCOME |
9,711 |
9,435 |
|||||
Provision for (recovery of) loan losses |
888 |
(188) |
|||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES |
8,823 |
9,623 |
|||||
NON-INTEREST INCOME |
|||||||
Service charges on deposit accounts |
557 |
534 |
|||||
Trust services income |
1,048 |
960 |
|||||
Gains on loans held for sale |
2,942 |
3,893 |
|||||
Gains on securities available for sale, net |
63 |
47 |
|||||
Commissions on investment sales |
140 |
94 |
|||||
Fees on mortgages held for sale |
28 |
17 |
|||||
Bank owned life insurance |
162 |
120 |
|||||
Other operating income |
941 |
263 |
|||||
Total non-interest income |
5,881 |
5,928 |
|||||
NON-INTEREST EXPENSE |
|||||||
Salaries and employee benefits |
7,033 |
7,799 |
|||||
Occupancy and equipment |
1,900 |
1,805 |
|||||
Advertising |
163 |
268 |
|||||
Computer operations |
458 |
461 |
|||||
Other real estate owned |
167 |
820 |
|||||
Other taxes |
197 |
192 |
|||||
Federal deposit insurance |
238 |
265 |
|||||
Other operating expenses |
1,979 |
2,318 |
|||||
Total non-interest expense |
12,135 |
13,928 |
|||||
Income before income taxes |
2,569 |
1,623 |
|||||
Income tax expense |
749 |
363 |
|||||
NET INCOME |
1,820 |
1,260 |
|||||
Net loss attributable to non-controlling interest |
157 |
67 |
|||||
Net income attributable to Middleburg Financial Corporation |
$ |
1,977 |
$ |
1,327 |
|||
Earnings per share: |
|||||||
Basic |
$ |
0.28 |
$ |
0.19 |
|||
Diluted |
$ |
0.28 |
$ |
0.19 |
|||
Dividends per common share |
$ |
0.07 |
$ |
0.05 |
MIDDLEBURG FINANCIAL CORPORATION |
|||||||||||||||||||
Quarterly Summary Statements of Income |
|||||||||||||||||||
(Unaudited, Dollars In thousands, except for per share data) |
|||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||
March 31, 2014 |
December 31, 2013 |
September 30, 2013 |
June 30, 2013 |
March 31, 2013 |
|||||||||||||||
INTEREST AND DIVIDEND INCOME |
|||||||||||||||||||
Interest and fees on loans |
$ |
8,806 |
$ |
8,744 |
$ |
8,744 |
$ |
8,795 |
$ |
8,965 |
|||||||||
Interest and dividends on securities available for sale |
|||||||||||||||||||
Taxable |
1,617 |
1,638 |
1,468 |
1,468 |
1,531 |
||||||||||||||
Tax-exempt |
584 |
638 |
640 |
646 |
630 |
||||||||||||||
Dividends |
73 |
63 |
59 |
54 |
56 |
||||||||||||||
Interest on deposits in banks and federal funds sold |
26 |
31 |
43 |
29 |
30 |
||||||||||||||
Total interest and dividend income |
11,106 |
11,114 |
10,954 |
10,992 |
11,212 |
||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||
Interest on deposits |
1,002 |
1,094 |
1,190 |
1,253 |
1,373 |
||||||||||||||
Interest on securities sold under agreements to repurchase |
80 |
82 |
82 |
81 |
80 |
||||||||||||||
Interest on short-term borrowings |
— |
17 |
59 |
18 |
29 |
||||||||||||||
Interest on FHLB borrowings and other debt |
313 |
311 |
303 |
299 |
295 |
||||||||||||||
Total interest expense |
1,395 |
1,504 |
1,634 |
1,651 |
1,777 |
||||||||||||||
NET INTEREST INCOME |
9,711 |
9,610 |
9,320 |
9,341 |
9,435 |
||||||||||||||
Provision for (recovery of) loan losses |
888 |
110 |
3 |
184 |
(188) |
||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES |
8,823 |
9,500 |
9,317 |
9,157 |
9,623 |
||||||||||||||
NON-INTEREST INCOME |
|||||||||||||||||||
Service charges on deposit accounts |
557 |
593 |
590 |
574 |
534 |
||||||||||||||
Trust services income |
1,048 |
1,033 |
963 |
1,014 |
960 |
||||||||||||||
Gains on loans held for sale |
2,942 |
3,114 |
4,162 |
4,483 |
3,893 |
||||||||||||||
Gains on securities available for sale, net |
63 |
22 |
23 |
326 |
47 |
||||||||||||||
Commissions on investment sales |
140 |
107 |
159 |
110 |
94 |
||||||||||||||
Fees on mortgages held for sale |
28 |
— |
28 |
58 |
17 |
||||||||||||||
Bank owned life insurance |
162 |
105 |
125 |
123 |
120 |
||||||||||||||
Other operating income |
941 |
431 |
78 |
392 |
263 |
||||||||||||||
Total non-interest income |
5,881 |
5,405 |
6,128 |
7,080 |
5,928 |
||||||||||||||
NON-INTEREST EXPENSE |
|||||||||||||||||||
Salaries and employee benefits |
7,033 |
7,385 |
7,750 |
7,692 |
7,799 |
||||||||||||||
Occupancy and equipment |
1,900 |
1,857 |
1,820 |
1,787 |
1,805 |
||||||||||||||
Advertising |
163 |
436 |
318 |
435 |
268 |
||||||||||||||
Computer operations |
458 |
485 |
456 |
458 |
461 |
||||||||||||||
Other real estate owned |
167 |
78 |
416 |
142 |
820 |
||||||||||||||
Other taxes |
197 |
186 |
186 |
187 |
192 |
||||||||||||||
Federal deposit insurance |
238 |
139 |
149 |
270 |
265 |
||||||||||||||
Other operating expenses |
1,979 |
3,134 |
2,210 |
2,137 |
2,318 |
||||||||||||||
Total non-interest expense |
12,135 |
13,700 |
13,305 |
13,108 |
13,928 |
||||||||||||||
Income before income taxes |
2,569 |
1,205 |
2,140 |
3,129 |
1,623 |
||||||||||||||
Income tax expense |
749 |
303 |
491 |
774 |
363 |
||||||||||||||
NET INCOME |
1,820 |
902 |
1,649 |
2,355 |
1,260 |
||||||||||||||
Net loss (income) attributable to non-controlling interest |
157 |
224 |
(38) |
(262) |
67 |
||||||||||||||
Net income attributable to Middleburg Financial Corporation |
$ |
1,977 |
$ |
1,126 |
$ |
1,611 |
$ |
2,093 |
$ |
1,327 |
|||||||||
Earnings per share: |
|||||||||||||||||||
Basic |
$ |
0.28 |
$ |
0.16 |
$ |
0.23 |
$ |
0.30 |
$ |
0.19 |
|||||||||
Diluted |
$ |
0.28 |
$ |
0.16 |
$ |
0.23 |
$ |
0.29 |
$ |
0.19 |
|||||||||
Dividends per common share |
$ |
0.07 |
$ |
0.07 |
$ |
0.07 |
$ |
0.05 |
$ |
0.05 |
MIDDLEBURG FINANCIAL CORPORATION |
|||||||||||||||||||
Selected Financial Data by Quarter |
|||||||||||||||||||
(Unaudited, Dollars in thousands, except for per share data) |
|||||||||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||||||||||
2014 |
2013 |
2013 |
2013 |
2013 |
|||||||||||||||
BALANCE SHEET RATIOS |
|||||||||||||||||||
Loans to deposits |
76.10 |
% |
74.15 |
% |
74.71 |
% |
73.50 |
% |
73.97 |
% |
|||||||||
Average interest-earning assets to average interest-bearing liabilities |
126.80 |
% |
126.87 |
% |
126.23 |
% |
125.09 |
% |
123.60 |
% |
|||||||||
INCOME STATEMENT RATIOS |
|||||||||||||||||||
Return on average assets (ROA) |
0.66 |
% |
0.37 |
% |
0.52 |
% |
0.69 |
% |
0.44 |
% |
|||||||||
Return on average equity (ROE) |
6.99 |
% |
3.92 |
% |
5.71 |
% |
7.25 |
% |
4.71 |
% |
|||||||||
Net interest margin (1) |
3.54 |
% |
3.43 |
% |
3.33 |
% |
3.40 |
% |
3.45 |
% |
|||||||||
Yield on average earning assets |
4.04 |
% |
3.94 |
% |
3.89 |
% |
3.97 |
% |
4.08 |
% |
|||||||||
Cost of funds |
0.52 |
% |
0.55 |
% |
0.59 |
% |
0.61 |
% |
0.66 |
% |
|||||||||
Efficiency ratio |
75.19 |
% |
88.32 |
% |
81.19 |
% |
78.35 |
% |
80.96 |
% |
|||||||||
PER SHARE DATA |
|||||||||||||||||||
Dividends |
$ |
0.07 |
$ |
0.07 |
$ |
0.07 |
$ |
0.05 |
$ |
0.05 |
|||||||||
Book value (MFC Shareholders) |
16.37 |
15.90 |
15.86 |
15.93 |
16.28 |
||||||||||||||
Tangible book value (4) |
15.62 |
15.13 |
15.03 |
15.09 |
15.41 |
||||||||||||||
SHARE PRICE DATA |
|||||||||||||||||||
Closing price |
$ |
17.61 |
$ |
18.04 |
$ |
19.28 |
$ |
19.10 |
$ |
19.41 |
|||||||||
Diluted earnings multiple (2) |
15.72 |
19.61 |
20.96 |
16.47 |
25.54 |
||||||||||||||
Book value multiple (3) |
1.08 |
1.11 |
1.21 |
1.20 |
1.19 |
||||||||||||||
COMMON STOCK DATA |
|||||||||||||||||||
Outstanding shares at end of period |
7,076,145 |
7,080,591 |
7,089,091 |
7,089,598 |
7,051,587 |
||||||||||||||
Weighted average shares O/S , basic - QTD |
7,078,470 |
7,096,260 |
7,080,244 |
7,072,587 |
7,051,009 |
||||||||||||||
Weighted average shares O/S, diluted - QTD |
7,103,785 |
7,130,272 |
7,118,208 |
7,102,670 |
7,082,354 |
||||||||||||||
Dividend payout ratio |
25.05 |
% |
33.32 |
% |
30.43 |
% |
16.88 |
% |
26.57 |
% |
|||||||||
CAPITAL RATIOS |
|||||||||||||||||||
Capital to assets - common shareholders |
9.59 |
% |
9.20 |
% |
9.25 |
% |
9.28 |
% |
9.46 |
% |
|||||||||
Capital to assets - with non-controlling interest |
9.78 |
% |
9.40 |
% |
9.48 |
% |
9.50 |
% |
9.70 |
% |
|||||||||
Tangible common equity ratio (5) |
9.19 |
% |
8.76 |
% |
8.81 |
% |
8.83 |
% |
9.01 |
% |
|||||||||
Leverage ratio |
9.61 |
% |
9.42 |
% |
9.36 |
% |
9.32 |
% |
9.11 |
% |
|||||||||
Tier 1 risk based capital ratio |
14.67 |
% |
14.62 |
% |
14.58 |
% |
14.15 |
% |
14.35 |
% |
|||||||||
Total risk based capital ratio |
15.93 |
% |
15.88 |
% |
15.83 |
% |
15.41 |
% |
15.60 |
% |
|||||||||
CREDIT QUALITY |
|||||||||||||||||||
Net charge-offs to average loans |
0.13 |
% |
0.02 |
% |
0.03 |
% |
0.01 |
% |
0.08 |
% |
|||||||||
Total nonperforming loans to total loans |
2.76 |
% |
3.46 |
% |
3.63 |
% |
3.76 |
% |
3.59 |
% |
|||||||||
Total nonperforming assets to total assets |
2.04 |
% |
2.33 |
% |
2.51 |
% |
2.80 |
% |
2.77 |
% |
|||||||||
Nonaccrual loans to: |
|||||||||||||||||||
Total loans |
2.03 |
% |
2.71 |
% |
2.87 |
% |
2.88 |
% |
2.80 |
% |
|||||||||
Total assets |
1.23 |
% |
1.61 |
% |
1.69 |
% |
1.67 |
% |
1.65 |
% |
|||||||||
Allowance for loan losses to: |
|||||||||||||||||||
Total loans |
1.81 |
% |
1.83 |
% |
1.87 |
% |
1.93 |
% |
1.89 |
% |
|||||||||
Nonperforming assets |
53.54 |
% |
46.48 |
% |
43.86 |
% |
39.88 |
% |
40.22 |
% |
|||||||||
Nonaccrual loans |
88.92 |
% |
67.44 |
% |
65.20 |
% |
66.82 |
% |
67.48 |
% |
|||||||||
NONPERFORMING ASSETS |
|||||||||||||||||||
Loans delinquent 90+ days and still accruing |
$ |
503 |
$ |
808 |
$ |
636 |
$ |
829 |
$ |
812 |
|||||||||
Nonaccrual loans |
14,876 |
19,752 |
20,525 |
20,376 |
20,019 |
||||||||||||||
Restructured loans (not in non-accrual) |
4,838 |
4,674 |
4,820 |
5,366 |
4,854 |
||||||||||||||
Other Real Estate Owned |
4,491 |
3,424 |
4,530 |
7,570 |
7,904 |
||||||||||||||
Total nonperforming assets |
$ |
24,708 |
$ |
28,658 |
$ |
30,511 |
$ |
34,141 |
$ |
33,589 |
(1) |
The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34%. The Company's net interest margin is a common measure used by the financial service industry to determine how profitably earning assets are funded. Because the Company earns non taxable interest income due to the mix in its investment and loan portfolios, net interest income for the ratio is calculated on a tax equivalent basis as described above. This calculation excludes net securities gains and losses. |
(2) |
The diluted earnings multiple is calculated by dividing the period's closing market price per share by the annualized diluted earnings per share for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company's earnings. |
(3) |
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. |
(4) |
Tangible book value is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders' equity and then dividing the result by the number of shares of common stock issued and outstanding at the end of the accounting period. |
(5) |
The tangible common equity ratio is not a measurement under accounting principles generally accepted in the United States. It is computed by subtracting identified intangible assets and goodwill from total Middleburg Financial Corporation shareholders' equity and total assets and then dividing the adjusted shareholders' equity balance by the adjusted total asset balance. |
SOURCE Middleburg Financial Corporation
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