Middleburg Financial Corporation Announces Fourth Quarter Earnings and 2009 Earnings
MIDDLEBURG, Va., Feb. 1 /PRNewswire-FirstCall/ -- Middleburg Financial Corporation (the "Company"), (Nasdaq: MBRG), parent company of Middleburg Bank (the "Bank"), today reported its financial results for the fourth quarter of 2009 and the year ended 2009.
Fourth Quarter and 2009 Highlights:
- Net income of $1.1 million for quarter and $3.5 million for full year, up 57% from 2008.
- Quarter-to-date diluted earnings per share of $0.07 and full year earnings per share of $0.40
- Non performing Assets to Total Assets were 1.64% at year end, versus 1.88% at end of 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 Mortgage closed $990 million in mortgage loans in 2009, up 48% from 2008. Gain on sale of mortgage loans increased $3.2 million or 37% from the year ending December 31, 2008 to the year ending December 31, 2009. Net gains on securities sold were $998,000 in 2009, versus a net loss of $913,000 in 2008, an increase of $1.9 million from the year prior.
The revenues and expenses of Southern Trust Mortgage for each of the three month periods ended March 31, June 30, September 30 and December 31, 2009 are reflected in the Company's financial statements on a consolidated basis, with the outstanding interest not held by the Company reported as "Net Income(Loss) Attributable to Non-controlling Interest."
Trust and investment advisory fees earned by Middleburg Trust Company ("MTC") and Middleburg Investment Advisors ("MIA") was relatively unchanged when comparing the quarter ended December 31, 2009 to the quarter ended September 30, 2009 and decreased 13.7% or $526,000 when comparing the year ended December 31, 2009 to December 31, 2008. Trust and investment advisory fees are based primarily upon the market value of the accounts under administration/management. Total consolidated assets under administration by MTC and MIA were at $1.085 billion at December 31, 2009, an increase of $191.3 million or 21.4% from the $893.7 million under administration at December 31, 2008. The Bank holds a large portion of its investment portfolio in custody with MTC. MTC's assets under administration were $771.5 million at December 31, 2009 and $485 million at December 31, 2008. MIA's assets under administration were $313.5 million at December 31, 2009 and $408.6 million at December 31, 2008.
Non-Interest Expense
Non-interest expense in 2009 increased $6.26 million, up 14.7% from 2008., driven primarily by commissions related to the increased production at Southern Trust Mortgage, increased FDIC insurance expense and increased legal and OREO expenses.
Salaries and employee benefit expenses increased $3.3 million during 2009, primarily due to higher commissions related to Southern Trust Mortgage. Other operating expenses increased by $4.2 million in 2009, due to increases in various other expense categories including FDIC special assessments, legal fees, and expenses associated with other real estate owned.
Total Consolidated Assets
Total assets at December 31, 2009 were $976 million, down $9 million or 0.9% relative to one year prior.
Total loans, net of allowance for loan losses, decreased by $27 million, or 4.1% when comparing December 31, 2008 to December 31, 2009. Slower loan demand was the primary reason for this decrease as loan runoff was comparable with previous years. Mortgages held for resale increased $5 million or 12.5% from December 31, 2008 to December 31, 2009.
In 2009, the Company increased its cash liquidity position by investing the proceeds of maturities and principal payments of securities into federal funds sold as a precaution against the economic uncertainties and the resulting volatility that occurred in the securities markets. As a result, cash and due from banks on December 31, 2009 increased $17 million from the year prior. The investment portfolio was at $179 million at December 31, 2009, an increase of $11 million compared to September 30, 2009 and a decline of $2 million from a year prior.
Deposits and Other Borrowings
Total deposits were at $805.6 million at December 31, 2009, up $60.8 million or 8.17% from the year prior, primarily due to an increase in savings and interest bearing demand deposits. Time deposits, including brokered deposits decreased $31 million or 9.2% when comparing December 31, 2008 to December 31, 2009. The Company has been paying off FHLB advances and brokered deposits as they mature. Brokered deposits were $64 million at December 31, 2009, down $43 million or 40% from the year prior. Long term borrowings were at $35 million at December 31, 2009, down $49 million or 58% from the year prior.
Equity
Shareholders' equity at December 31, 2009 was $103 million, an increase of $27 million or 35% from the year prior. The book value of the Company at December 31, 2009 was $14.52 per common share. New capital of $24.3 million was raised in 2009, and in December of 2009, the proceeds were used to redeem the TARP preferred stock issued to the Treasury in full. Subsequent to its redemption of the TARP preferred stock, the Company had the right to notify the Treasury within 15 days from the date of redemption whether it would make an offer to repurchase the warrant or allow the Treasury to liquidate the warrant in the open market. The Company determined that it was in its best interests not to make an offer to repurchase the warrant. As of December 31, 2009, the Tier 1 risk-based capital ratio was 13.88%, the total risk-based capital ratio was 15.07% and the leverage ratio was 10.42%
Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company's future operations and are generally identified by phrases such as "the Company expects," "the Company believes" or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For details on factors that could affect expectations, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and other filings with the Securities and Exchange Commission.
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves Loudoun, Fairfax, and Fauquier Counties in Virginia with eight financial service centers. Middleburg Investment Group owns Middleburg Trust Company and Middleburg Investment Advisors, Inc. Middleburg Trust Company is headquartered in Richmond, Virginia with a branch office in Middleburg and Williamsburg. Middleburg Investment Advisors, Inc. is an SEC registered investment advisor located in Alexandria, Virginia.
MIDDLEBURG FINANCIAL CORPORATION SUMMARY INCOME STATEMENT For the Three Months Ended (Unaudited, dollars in thousands) Dec 31, Sep 30, Jun 30, 2009 2009 2009 -------- -------- -------- INTEREST INCOME Interest and fees on loans $11,041 $11,973 $12,870 Interest on investment securities 1,883 1,998 1,990 TOTAL INTEREST INCOME $12,924 $13,971 $14,860 ------- ------- ------- INTEREST EXPENSE Interest on deposits $3,633 $3,866 $3,959 Interest on borrowings 577 749 991 TOTAL INTEREST EXPENSE $4,210 $4,615 $4,950 ------ ------ ------ NET INTEREST INCOME $8,714 $9,356 $9,910 PROVISION FOR LOAN LOSSES 967 964 1,583 --- --- ----- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $7,747 $8,392 $8,327 ------ ------ ------ NON INTEREST INCOME Trust and investment advisory fee income $816 $813 $792 Service charges on deposits 487 474 490 Gain on the sale of loans 3,283 2,407 3,378 Net gains (losses) on securities available for sale 365 (258) 661 Commissions on investment sales 174 148 172 Equity earnings in unconsolidated subsidiaries 40 23 92 Bank owned life insurance 109 123 130 Other service charges, commissions and fees 429 298 450 Other operating income (loss) 36 29 (36) TOTAL NON INTEREST INCOME $5,739 $4,057 $6,129 ------ ------ ------ NON INTEREST EXPENSE Salaries and employee benefits $6,187 $6,925 $7,670 Net occupancy expense of premises 1,499 1,455 1,566 Other taxes 150 148 145 Computer operations 344 285 360 Advertising and marketing 211 184 216 Other operating expenses 3,716 2,908 3,062 TOTAL NON INTEREST EXPENSE $12,107 $11,905 $13,019 ------- ------- ------- INCOME BEFORE TAXES $1,379 $544 $1,437 Income tax (benefit) expense (5) (92) 21 --- --- --- NET INCOME $1,374 $636 $1,416 LESS: NET (INCOME) /LOSS ATTRIBUTABLE TO NON- CONTROLLING INTEREST (270) (26) (603) ==== === ==== MIDDLEBURG FINANCIAL CORPORATION NET INCOME $1,104 $610 $813 AMORTIZATION OF DISCOUNT ON WARRANTS 378 19 19 DIVIDEND ON PREFERRED STOCK 253 275 275 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $473 $316 $519 Mar 31, 2009 2008 ------ ---- INTEREST INCOME Interest and fees on loans $12,950 $48,088 Interest on investment securities 2,041 7,834 TOTAL INTEREST INCOME $14,991 $55,922 ------- ------- INTEREST EXPENSE Interest on deposits $4,156 $15,492 Interest on borrowings 1,151 7,227 TOTAL INTEREST EXPENSE $5,307 $22,719 ------ ------- NET INTEREST INCOME $9,684 $33,203 PROVISION FOR LOAN LOSSES 1,037 5,261 ----- ----- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $8,647 $27,942 ------ ------- NON INTEREST INCOME Trust and investment advisory fee income $797 $3,737 Service charges on deposits 455 1,922 Gain on the sale of loans 2,792 8,656 Net gains (losses) on securities available for sale 230 (913) Commissions on investment sales 85 433 Equity earnings in unconsolidated subsidiaries 111 - Bank owned life insurance 127 469 Other service charges, commissions and fees 374 1,985 Other operating income (loss) 16 615 TOTAL NON INTEREST INCOME $4,987 $16,904 ------ ------- NON INTEREST EXPENSE Salaries and employee benefits $7,260 $25,376 Net occupancy expense of premises 1,384 5,826 Other taxes 145 642 Computer operations 301 1,110 Advertising and marketing 149 917 Other operating expenses 2,593 8,728 TOTAL NON INTEREST EXPENSE $11,832 $42,599 ------- ------- INCOME BEFORE TAXES $1,802 $2,247 Income tax (benefit) expense 140 444 --- --- NET INCOME $1,662 $1,803 LESS: NET (INCOME) /LOSS ATTRIBUTABLE TO NON- CONTROLLING INTEREST (678) 757 ==== === MIDDLEBURG FINANCIAL CORPORATION NET INCOME $984 $2,560 AMORTIZATION OF DISCOUNT ON WARRANTS 13 - DIVIDEND ON PREFERRED STOCK 183 - NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $788 $2,560 (1) On January 1, 2009, Middleburg Financial Corporation adopted Statement of Financial Accounting Standards No. 160 (SFAS No. 160), "Non-controlling Interests in Consolidated Financial Statements – an amendment of ARB No. 51," (Codified within ASC 810) the provisions of which, among others, requires that minority interests be renamed non-controlling interests and that a company present a consolidated net income (loss) measure that includes the amount attributable to such non-controlling interests for all periods presented.
MIDDLEBURG FINANCIAL CORPORATION BALANCE SHEET (dollars in thousands) Unaudited Unaudited Unaudited 12/31/2009 9/30/2009 6/30/2009 ---------- --------- --------- Assets: Cash and due from banks $41,494 $80,646 $39,721 Interest-bearing balances in banks 1,716 2,214 2,958 Federal funds sold - - 54,600 Securities at fair value 178,924 168,049 162,355 Loans, net of allowance for loan losses 635,094 643,293 642,883 Mortgages held for resale 45,010 36,826 74,346 Premises and equipment, net 23,506 22,848 22,722 Other assets 50,629 43,902 44,975 ------ ------ ------ Total assets $976,373 $997,777 $1,044,560 ======== ======== ========== Liabilities and Shareholders' Equity: Liabilities: Deposits: Non-interest bearing demand deposits $106,459 $105,648 $124,472 Savings and interest- bearing demand deposits 396,294 380,527 347,561 Time deposits 302,895 301,453 338,100 ------- ------- ------- Total deposits $805,648 $787,628 $810,133 Securities sold under agreements to repurchase 17,199 19,808 19,505 Short term borrowings 3,538 7,112 21,278 Long-term debt 35,000 43,000 74,000 Trust preferred capital notes 5,155 5,155 5,155 Other liabilities 6,474 9,853 10,981 ----- ----- ------ Total liabilities $873,014 $872,556 $941,052 -------- -------- -------- Shareholders' Equity: Preferred stock, par value $1,000.00 per share - $21,622 $21,603 Common stock, par value $2.50 per share 17,273 17,255 12,483 Capital surplus 42,807 42,702 28,310 Retained earnings 42,706 43,051 43,235 Accumulated other comprehensive loss, net (2,474) (2,202) (5,156) ------ ------ ------ Total Middleburg Financial Corporation shareholders' equity $100,312 $122,428 $100,475 Non-Controlling interest 3,047 2,793 3,033 ----- ----- ----- Total shareholders' equity 103,359 125,221 103,508 ------- ------- ------- Total liabilities and shareholders' equity $976,373 $997,777 $1,044,560 (dollars in thousands) Unaudited Audited 3/31/2009 12/31/2008 --------- ---------- Assets: Cash and due from banks $21,059 $23,980 Interest-bearing balances in banks 1,725 2,400 Federal funds sold 24,500 9,000 Securities at fair value 165,921 181,312 Loans, net of allowance for loan losses 650,600 662,375 Mortgages held for resale 66,439 40,301 Premises and equipment, net 22,920 22,987 Other assets 45,099 42,836 ------ ------ Total assets $998,263 $985,191 ======== ======== Liabilities and Shareholders' Equity: Liabilities: Deposits: Non-interest bearing demand deposits $113,130 $110,537 Savings and interest- bearing demand deposits 329,042 300,006 Time deposits 331,075 334,239 ------- ------- Total deposits $773,247 $744,782 Securities sold under agreements to repurchase 18,989 22,678 Short term borrowings 15,340 40,944 Long-term debt 74,000 84,000 Trust preferred capital notes 5,155 5,155 Other liabilities 10,833 9,636 ------ ----- Total liabilities $897,564 $907,195 -------- -------- Shareholders' Equity: Preferred stock, par value $1,000.00 per share $21,584 - Common stock, par value $2.50 per share 11,826 11,336 Capital surplus 26,083 23,967 Retained earnings 43,665 43,555 Accumulated other comprehensive loss, net (5,026) (3,181) ------ ------ Total Middleburg Financial Corporation shareholders' equity $98,132 $75,677 Non-Controlling interest 2,567 2,319 ----- ----- Total shareholders' equity 100,699 77,996 ------- ------ Total liabilities and shareholders' equity $998,263 $985,191
MIDDLEBURG FINANCIAL CORPORATION KEY STATISTICS 4Q09 3Q09 2Q09 1Q09 ---- ---- ---- ---- Net Income (dollars in thousands) $1,114 $610 $813 $984 Earnings per share, basic $0.07 $0.05 $0.11 $0.17 Earnings per share, diluted $0.07 $0.05 $0.11 $0.17 Return on average total assets 0.35% 0.29% 0.19% 0.35% Return on average total equity 2.82% 2.51% 1.88% 3.81% Dividend payout ratio 142.86% 200.00% 172.73% 111.76% Fee revenue as a percent of total revenue(1) 29.37% 23.60% 26.90% 24.09% Net interest margin(2) 3.83% 4.13% 4.36% 4.45% Yield on average earning assets 5.61% 6.08% 6.46% 6.79% Yield on average interest- bearing liabilities 2.16% 2.35% 2.50% 2.73% Net interest spread 3.45% 3.73% 3.96% 4.06% Non-interest income to average assets 2.10% 1.71% 2.15% 1.93% Non-interest expense to average assets 4.74% 4.71% 5.12% 4.80% Efficiency ratio(3) 83.48% 84.26% 82.25% 79.50% (1) Excludes gains and losses on securities available for sale (2) The net interest margin is calculated by dividing tax equivalent net interest income by total average earning assets. Tax equivalent net interest income is calculated by grossing up interest income for the amounts that are non taxable (i.e., municipal income) then subtracting interest expense. The tax rate utilized is 34%. The Company's net interest margin is a common measure used by the financial service industry to determine how profitably earning assets are funded. Because the Company earns a fair amount of non taxable interest income due to the mix of securities in its investment security portfolio, net interest income for the ratio is calculated on a tax equivalent basis as described above. (3) The efficiency ratio is not a measurement under accounting principles generally accepted in the United States. It is calculated by dividing non interest expense by the sum of tax equivalent net interest income and non interest income excluding gains and losses on the investment portfolio. The tax rate utilized is 34%. The Company calculates this ratio in order to evaluate its overhead structure or how effectively it is operating. An increase in the ratio from period to period indicates the Company is losing a larger percentage of its income to expenses.
MIDDLEBURG FINANCIAL CORPORATION SELECTED FINANCIAL DATA BY QUARTER 4Q09 3Q09 2Q09 1Q09 ---- ---- ---- ---- BALANCE SHEET RATIOS Loans to deposits 80.00% 81.67% 79.36% 84.14% Average interest- earning assets to average-interest bearing liabilities 121.36% 120.32% 119.05% 116.57% PER SHARE DATA Dividends $0.10 $0.10 $0.19 $0.19 Book value $14.52 $14.61 $15.80 $16.14 Tangible book value $13.57 $13.65 $14.47 $14.74 SHARE PRICE DATA Closing price $14.59 $13.05 $13.76 $11.47 Diluted earnings multiple(1) 0.97 0.67 0.66 0.53 Book value multiple(2) 1.00 0.89 0.87 0.55 COMMON STOCK DATA Outstanding shares at end of period 6,909,293 6,901,843 4,993,245 4,730,317 Weighted average shares outstanding 5,635,687 5,208,624 4,675,849 4,536,495 Weighted average shares outstanding, diluted 6,906,429 6,267,267 4,822,365 4,538,598 CAPITAL RATIOS Total risk based capital ratio 15.07% 18.22% 14.73% 14.51% Tier 1 risk based capital ratio 13.88% 16.97% 13.54% 13.28% Leverage ratio 10.42% 12.50% 10.58% 10.52% CREDIT QUALITY Net charge-offs to average loans 0.18% 0.17% 0.26% 0.19% Total non-performing loans to total loans 1.48% 1.57% 1.99% 1.35% Total non-performing assets to total assets 1.64% 1.88% 1.96% 1.73% Non-accrual loans to: total loans 1.34% 1.38% 1.99% 1.35% total assets 0.88% 0.90% 1.24% 0.89% Allowance for loan losses to: total loans 1.37% 1.41% 1.45% 1.48% non-performing assets 55.92% 49.21% 46.14% 56.16% non-accrual loans 104.11% 102.43% 72.62% 109.21% NON-PERFORMING ASSETS: (dollars in thousands) Loans delinquent over 90 days $908 $1,206 $- $31 Non-accrual loans 8,608 9,008 12,985 8,888 Other real estate owned and repossessed assets 6,511 8,537 7,455 8,367 NET LOAN CHARGE-OFFS (RECOVERIES): (dollars in thousands) Loans charged off $1,280 $1,216 $1,866 $1,369 (Recoveries) (48) (49) (6) (19) Net charge-offs (recoveries) 1,232 1,167 1,860 1,350 PROVISION FOR LOAN LOSSES $967 $964 $1,583 $1,037 (dollars in thousands) ALLOWANCE FOR LOAN LOSS SUMMARY (dollars in thousands) Balance at the beginning of period $9,227 $9,430 $9,707 $10,020 STM allowance at beginning of period - - - - Provision 967 964 1,583 1,037 Net charge-offs (recoveries) 1,232 1,167 1,860 1,350 Balance at the end of period $8,962 $9,227 $9,430 $9,707 (1) The diluted earnings multiple (or price earnings ratio) is calculated by dividing the period's closing market price per share by total equity per weighted average shares outstanding, diluted for the period. The diluted earnings multiple is a measure of how much an investor may be willing to pay for $1.00 of the Company's earnings. (2) The book value multiple ( or price to book ratio) is calculated by dividing the period's closing market price per share by the period's book value per share. The book value multiple is a measure used to compare the Company's market value per share to its book value per share.
Middleburg Financial Corporation Average Balances, Income and Expenses, Yields and Rates Three Months Ended December 31, 2009 ---- Average Income/ Yield/ Balance Expense Rate (3) ------- ------- ------- (Dollars in thousands) Assets : Securities: Taxable $105,503 $1,145 4.31% Tax-exempt (1) (2) 63,902 1,055 6.55% ------ ----- Total securities $169,405 $2,200 5.15% Loans Taxable $694,603 $11,041 6.31% Tax-exempt (1) - - --- --- Total loans $694,603 $11,041 6.31% Federal funds sold - - Interest bearing deposits in other financial institutions 75,089 42 0.22% ------ --- Total earning assets $939,097 $13,283 5.61% Less: allowances for credit losses (9,177) Total nonearning assets 86,153 ------ Total assets $1,016,073 ========== Liabilities: Interest-bearing deposits: Checking $270,939 $666 0.98% Regular savings 64,959 183 1.12% Money market savings 50,796 137 1.07% Time deposits: $100,000 and over 140,727 1,105 3.12% Under $100,000 166,898 1,542 3.67% ------- ----- Total interest- bearing deposits $694,319 $3,633 2.08% Short-term borrowings 12,662 74 2.32% Securities sold under agreements to repurchase 20,259 8 0.16% Long-term debt 46,590 495 4.22% Federal funds purchased - - --- --- Total interest- bearing liabilities $773,830 $4,210 2.16% Non-interest bearing liabilities Demand deposits 107,160 Other liabilities 10,341 ------ Total liabilities $891,331 Non-controlling interest 3,020 Shareholders' equity 121,722 Total liabilities and shareholders' equity $1,016,073 ========== Net interest income $9,073 ====== Interest rate spread 3.45% Interest expense as a percent of average earning assets 1.78% Net interest margin 3.83% Return on average assets 0.35% Return on average equity 2.82% 2008 ---- Average Income/ Yield/ Balance Expense Rate (3) ------- ------- ------- (Dollars in thousands) Assets : Securities: Taxable $111,809 $1,291 4.59% Tax-exempt (1) (2) 54,139 991 7.28% ------ --- Total securities $165,948 $2,282 5.47% Loans Taxable $694,132 $12,036 6.90% Tax-exempt (1) 5 - 0.00% --- --- Total loans $694,137 $12,036 6.90% Federal funds sold 10,790 18 0.66% Interest bearing deposits in other financial institutions 4,452 41 3.66% ----- --- Total earning assets $875,327 $14,377 6.53% Less: allowances for credit losses (10,057) Total nonearning assets 82,952 ------ Total assets $948,222 ======== Liabilities: Interest-bearing deposits: Checking $207,411 $944 1.81% Regular savings 49,461 187 1.50% Money market savings 37,009 117 1.26% Time deposits: $100,000 and over 120,034 1,081 3.58% Under $100,000 194,513 1,933 3.95% ------- ----- Total interest-bearing deposits $608,428 $4,262 2.79% Short-term borrowings 29,162 277 3.78% Securities sold under agreements to repurchase 24,457 47 0.76% Long-term debt 92,090 990 4.28% Federal funds purchased 31 - 0.00% --- --- Total interest- bearing liabilities $754,168 $5,576 2.94% Non-interest bearing liabilities Demand deposits 112,013 Other liabilities 6,142 ----- Total liabilities $872,323 Non-controlling interest 2,418 Shareholders' equity 73,481 Total liabilities and shareholders' equity $948,222 ======== Net interest income $8,801 ====== Interest rate spread 3.59% Interest expense as a percent of average earning assets 2.53% Net interest margin 4.00% Return on average assets 0.21% Return on average equity 2.66% (1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. (2) Income and yields include dividends on preferred bonds which are 70% excludable for tax purposes. (3) All yields and rates have been annualized on a 365 day year.
Middleburg Financial Corporation Average Balances, Income and Expenses, Yields and Rates Twelve Months Ended December 31, 2009 ---- Average Income/ Yield/ Balance Expense Rate (3) ------- ------- ------- (Dollars in thousands) Assets : Securities: Taxable $105,765 $4,830 4.57% Tax-exempt (1) (2) 64,305 4,461 6.94% ------ ----- Total securities $170,070 $9,291 5.46% Loans Taxable $710,745 $48,834 6.87% Tax-exempt (1) 1 - 0% --- --- Total loans $710,746 $48,834 6.87% Federal funds sold 20,607 42 0.20% Interest bearing deposits in other financial institutions 38,485 95 0.25% ------ --- Total earning assets $939,908 $58,262 6.20% Less: allowances for credit losses (9,160) Total nonearning assets 83,697 ------ Total assets $1,014,445 ========== Liabilities: Interest-bearing deposits: Checking $251,781 $3,091 1.23% Regular savings 57,669 738 1.28% Money market savings 42,985 473 1.10% Time deposits: $100,000 and over 135,149 4,342 3.21% Under $100,000 188,623 6,969 3.69% ------- ----- Total interest-bearing deposits $676,207 $15,613 2.31% Short-term borrowings 19,424 593 3.05% Securities sold under agreements to repurchase 21,122 40 0.19% Long-term debt 69,407 2,835 4.08% Federal Funds Purchased - - --- --- Total interest-bearing liabilities $786,160 $19,081 2.43% Non-interest bearing liabilities Demand Deposits 107,936 Other liabilities 10,537 ------ Total liabilities $904,633 Non-controlling interest 2,774 Shareholders' equity 107,038 Total liabilities and shareholders' equity $1,014,445 ========== Net interest income $39,181 ======= Interest rate spread 3.77% Interest expense as a percent of average earning assets 2.03% Net interest margin 4.17% Return on average assets 0.35% Return on average equity 3.21% 2008 ---- Average Income/ Yield/ Balance Expense Rate (3) ------- ------- ------- (Dollars in thousands) Assets : Securities: Taxable $108,482 $5,348 4.93% Tax-exempt (1) (2) 47,975 3,306 6.89% ------ ----- Total securities $156,457 $8,654 5.53% Loans Taxable $689,210 $48,087 6.98% Tax-exempt (1) 9 1 11.11% --- --- Total loans $689,219 $48,088 6.98% Federal funds sold 7,604 139 1.83% Interest bearing deposits in other financial institutions 4,097 165 4.03% ----- --- Total earning assets $857,377 $57,046 6.65% Less: allowances for credit losses (9,251) Total nonearning asset s 77,029 ------ Total assets $925,155 ======== Liabilities: Interest-bearing deposits: Checking $188,886 $3,755 1.99% Regular savings 53,223 939 1.76% Money market savings 39,267 465 1.18% Time deposits: $100,000 and over 127,398 5,021 3.94% Under $100,000 128,781 5,311 4.12% ------- ----- Total interest-bearing deposits $537,555 $15,491 2.88% Short-term borrowings 44,983 1,988 4.42% Securities sold under agreements to repurchase 40,924 831 2.03% Long-term debt 100,308 4,398 4.38% Federal Funds Purchased 397 11 2.77% --- --- Total interest-bearing liabilities $724,167 $22,719 3.14% Non-interest bearing liabilities Demand Deposits 114,466 Other liabilities 7,328 ----- Total liabilities $845,961 Non-controlling interest 3,232 Shareholders' equity 75,961 Total liabilities and shareholders' equity $925,154 ======== Net interest income $34,327 ======= Interest rate spread 3.52% Interest expense as a percent of average earning assets 2.65% Net interest margin 4.00% Return on average assets 0.28% Return on average equity 3.37% (1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. (2) Income and yields include dividends on preferred bonds which are 70% excludable for tax purposes. (3) All yields and rates have been annualized on a 365 day year.
SOURCE Middleburg Financial Corporation
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