Middleburg Financial Corporation Announces 2010 First Quarter Earnings
MIDDLEBURG, Va., April 30 /PRNewswire-FirstCall/ -- Middleburg Financial Corporation (the "Company"), (Nasdaq: MBRG), parent company of Middleburg Bank (the "Bank"), today reported its financial results for the first quarter of 2010.
First Quarter 2010 Highlights:
- Net income of $813,844 for the quarter;
- Diluted earnings per share of $0.12 for the quarter;
- Net interest margin of 3.94% for the quarter;
- Total asset growth of $42.3 million or 4.3% for the quarter;
- Total loans increased by $13.8 million or 2.1% for the quarter;
- Total deposit growth of $22.7 million or 2.7% for the quarter;
- Provision for loan losses decreased 3.5% relative to the previous quarter; and
- Tier I capital ratio of 13.8%, leverage ratio of 10.7%.
"Based on the first quarter of 2010 we are cautiously optimistic," said Gary R. Shook, president of Middleburg Financial Corporation. "There is evidence that loan and deposit growth is accelerating and we are seeing growth in our wealth management business as well. We attribute much of this growth to improved economic conditions in our primary markets. However, we foresee a continuation of problem loans throughout this year, which will continue to impact earnings."
Net Interest Income and Net Interest Margin
Net interest income was $8.5 million during the three months ended March 31, 2010, a decrease of 3.0% relative to the quarter ended December 31, 2009. The average yield on earning assets was 5.58% for the quarter ended March 31, 2010, down 62 basis points relative to the quarter ended December 31, 2009. We reduced our costs for deposits as well as for borrowings in the first quarter of 2010. The average cost of interest bearing liabilities during the quarter decreased to 1.93%, down 40.0 basis points relative to the quarter ended December 31, 2009.
The net interest margin for the three months ended March 31, 2010 was 3.94% compared to 4.17% for the quarter ended December 31, 2009.
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 $929,000 for the quarter ended March 31, 2010, compared to $967,000 for the quarter ended December 31, 2009, a decline of 3.9%. Even with this decrease, Company was able to increase its allowance for loan losses by $643,000 or from 1.33% of total loans to 1.50% of total loans. The pace of problem loans is as expected, however, given the continued uncertainty in the economy, the Company deemed it prudent to increase its ratio of allowance for loan losses to total loans.
Non performing assets increased from $17.2 million or 1.8% of total assets at December 31, 2009 to $19.0 million or 1.9% of total assets as of March 31, 2010. 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 decreased by $670,000 or 11.7% to $5.07 million when comparing the quarter ended March 31, 2010 to the quarter ended December 31, 2009, largely driven by decreases in gains on sales of mortgage loans originated by Southern Trust Mortgage, our majority owned subsidiary, and gains on sales of securities. Southern Trust Mortgage closed $149 million in mortgage loans in the quarter ended March 31, 2010, down 31% from the quarter ended December 31, 2009. Gain on sale of mortgage loans was $2.6 million for the quarter ended March 31, 2010, a decrease of 20% compared to the quarter ended December 31, 2009.
The revenues and expenses of Southern Trust Mortgage for the three month period ended March 31, 2010 are reflected in the Company's financial statements on a consolidated basis, with the outstanding interest not held by the Company reported as "Non-controlling Interest Net (Income) Loss."
Trust and investment advisory fees earned by Middleburg Trust Company ("MTC") and Middleburg Investment Advisors ("MIA") were relatively unchanged when comparing the quarter ended March 31, 2010 to the quarter ended December 31, 2009 and increased 2.3% when compared to the quarter ended March 31, 2009. 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 $1.2 billion at March 31, 2010, an increase of 8.1% relative to December 31, 2009 and an increase of 44.5% relative to March 31, 2009. The Bank holds a large portion of its investment portfolio in custody with MTC. MTC's assets under administration were $854.8 million at March 31, 2010 and $771.5 million at December 31, 2009. MIA's assets under administration were $318.7 million at March 31, 2010 and $313.5 million at December 31, 2009.
Non-Interest Expense
Non-interest expense in the first quarter of 2010 decreased $163,000, down 1.4% relative to the quarter ended December 31, 2009.
Salaries and employee benefit expenses in the first quarter of 2010 increased by $737,000 relative to the quarter ended December 31, 2009, primarily due to incentive accrual for 2010 and benefit payouts. Other operating expenses in the first quarter of 2010 decreased by $1.0 million, down 27.0% relative to the previous quarter due to decreases in various other expense categories including professional fees and expenses associated with other real estate owned.
Total Consolidated Assets
Total assets at March 31, 2010 were $1.0 billion, an increase of $42.2 million or 4.3% during the quarter.
Total loans, net of allowance for loan losses, increased by $12.9 million, or 2.0% when comparing March 31, 2010 to December 31, 2009. The investment portfolio was at $186 million at March 31, 2010, an increase of $7 million or 3.9% compared to December 31, 2009. Mortgages held for resale decreased $2.2 million or 4.8% from December 31, 2009 to March 31, 2010. Cash and due and interest-bearing balances at banks increased by $25.7 million or 59.4% from December 31, 2009 to March 31, 2010.
Deposits and Other Borrowings
Total deposits were at $827.4 million at March 31, 2010, up $21.7 million or 2.7% from December 31, 2009, primarily due to an increase in savings and non-interest bearing demand deposits. Time deposits, including brokered deposits decreased $3.0 million or 4.6% when comparing December 31, 2009 to March 31, 2010. The Company has been paying off brokered deposits as they mature. Brokered deposits were $62.0 million at March 31, 2010, down $3.0 million or 40.0% from the year prior. Long term borrowings from the FHLB were $47.9 million at March 31, 2010, up $12.9 million from December 31, 2009. The increase in borrowings was related to the funding of commercial loans.
Equity
Total shareholders' equity at March 31, 2010 was $103.9 million, compared to shareholders' equity of $103.4 million as of December 31, 2009. Retained earnings at March 31, 2010 were at $42.8 million compared to $42.7 million at December 31, 2009. The book value of the Company at March 31, 2010 was $14.65 per common share. As of March 31, 2010, the Tier 1 risk-based capital ratio was 13.77%, the total risk-based capital ratio was 15.02% and the leverage ratio was 10.71%.
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, 2009, 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 | ||||||||||||
( Unaudited, dollars in thousands) | ||||||||||||
For the Three Months Ended | ||||||||||||
Mar 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009 | Jun. 30, 2009 | Mar. 31, 2009 | ||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans | $ 10,445 | $ 11,041 | $ 11,973 | $ 12,870 | $ 12,950 | |||||||
Interest on investment securities | 1,687 | 1,883 | 1,998 | 1,990 | 2,041 | |||||||
TOTAL INTEREST INCOME | $ 12,132 | $ 12,924 | $ 13,971 | $ 14,860 | $ 14,991 | |||||||
INTEREST EXPENSE | ||||||||||||
Interest on deposits | $ 3,174 | $ 3,633 | $ 3,866 | $ 3,959 | $ 4,156 | |||||||
Interest on borrowings | 502 | 577 | 749 | 991 | 1,151 | |||||||
TOTAL INTEREST EXPENSE | $ 3,676 | $ 4,210 | $ 4,615 | $ 4,950 | $ 5,307 | |||||||
NET INTEREST INCOME | $ 8,456 | $ 8,714 | $ 9,356 | $ 9,910 | $ 9,684 | |||||||
PROVISION FOR LOAN LOSSES | 929 | 967 | 964 | 1,583 | 1,037 | |||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||||||
FOR LOAN LOSSES | $ 7,527 | $ 7,747 | $ 8,392 | $ 8,327 | $ 8,647 | |||||||
NON INTEREST INCOME | ||||||||||||
Trust and investment advisory fee income | $ 815 | $ 816 | $ 813 | $ 792 | $ 797 | |||||||
Service charges on deposits | 441 | 486 | 474 | 490 | 455 | |||||||
Gain on the sale of loans | 2,630 | 3,283 | 2,407 | 3,378 | 2,792 | |||||||
Net (losses) gains on securities available for sale including OTTI adjustments | 355 | 365 | (258) | 661 | 230 | |||||||
Commissions on investment sales | 144 | 175 | 148 | 172 | 85 | |||||||
Equity earnings in unconsolidated subsidiaries | 37 | 40 | 23 | 92 | 111 | |||||||
Bank owned life insurance | 125 | 109 | 123 | 130 | 127 | |||||||
Other service charges, commissions and fees | 471 | 429 | 298 | 450 | 374 | |||||||
Other operating income | 54 | 36 | 29 | (36) | 16 | |||||||
TOTAL NON INTEREST INCOME | $ 5,072 | $ 5,739 | $ 4,057 | $ 6,129 | $ 4,987 | |||||||
NON INTEREST EXPENSE | ||||||||||||
Salaries and employee benefits | $ 6,924 | $ 6,187 | $ 6,925 | $ 7,670 | $ 7,260 | |||||||
Net occupancy expense of premises | 1,604 | 1,500 | 1,455 | 1,566 | 1,384 | |||||||
Other taxes | 196 | 149 | 148 | 145 | 145 | |||||||
Computer operations | 328 | 344 | 285 | 360 | 301 | |||||||
Advertising and marketing | 180 | 211 | 184 | 216 | 149 | |||||||
Other operating expenses | 2,711 | 3,715 | 2,908 | 3,062 | 2,593 | |||||||
TOTAL NON INTEREST EXPENSE | $ 11,943 | $ 12,106 | $ 11,905 | $ 13,019 | $ 11,832 | |||||||
INCOME BEFORE TAXES | $ 656 | $ 1,380 | $ 544 | $ 1,437 | $ 1,802 | |||||||
Income tax expense (benefit) | 87 | (5) | (92) | 21 | 140 | |||||||
NET INCOME | $ 569 | $ 1,385 | $ 636 | $ 1,416 | $ 1,662 | |||||||
NONCONTROLLING INTEREST NET (INCOME) LOSS | 245 | (270) | (26) | (603) | (678) | |||||||
MIDDLEBURG FINANCIAL CORPORATION NET INCOME | $ 814 | $ 1,115 | $ 610 | $ 813 | $ 984 | |||||||
MIDDLEBURG FINANCIAL CORPORATION | ||||||||||
BALANCE SHEET | ||||||||||
(dollars in thousands) | Unaudited | Audited | Unaudited | Unaudited | Unaudited | |||||
3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | ||||||
Assets: | ||||||||||
Cash and due from banks | $ 20,333 | $ 18,365 | $ 80,646 | $ 39,721 | $ 21,059 | |||||
Interest-bearing balances in banks | 48,568 | 24,845 | 2,214 | 2,958 | 1,725 | |||||
Federal funds sold | - | - | - | 54,600 | 24,500 | |||||
Securities at fair value | 185,978 | 178,924 | 168,049 | 162,355 | 165,921 | |||||
Loans, net of allowance for loan losses | 648,009 | 635,094 | 643,293 | 642,883 | 650,600 | |||||
Mortgages held for resale | 42,836 | 45,010 | 36,826 | 74,346 | 66,439 | |||||
Bank premises and equipment, net | 23,152 | 23,506 | 22,848 | 22,722 | 22,920 | |||||
Other assets | 49,752 | 50,630 | 43,902 | 44,975 | 45,099 | |||||
Total assets | $ 1,018,628 | $ 976,374 | $ 997,777 | $ 1,044,560 | $ 998,263 | |||||
Liabilities: | ||||||||||
Deposits: | ||||||||||
Non-interest bearing demand deposits | $ 117,146 | $ 106,459 | $ 105,648 | $ 124,472 | $ 113,131 | |||||
Savings and interest-bearing demand deposits | 412,185 | 397,720 | 380,527 | 347,561 | 329,042 | |||||
Time deposits | 298,057 | 301,469 | 301,453 | 338,100 | 331,075 | |||||
Total deposits | $ 827,388 | $ 805,648 | $ 787,628 | $ 810,133 | $ 773,248 | |||||
Securities sold under agreements to repurchase | 24,286 | 17,199 | 19,808 | 19,505 | 18,989 | |||||
Short term borrowings | 3,390 | 3,538 | 7,112 | 21,278 | 15,340 | |||||
Long-term debt | 47,912 | 35,000 | 43,000 | 74,000 | 74,000 | |||||
Trust preferred capital notes | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||
Other liabilities | 6,606 | 6,475 | 9,853 | 10,981 | 10,832 | |||||
Total liabilities | $ 914,737 | $ 873,015 | $ 872,556 | $ 941,052 | $ 897,564 | |||||
Shareholders' Equity: | ||||||||||
Middleburg Financial Corporation shareholders' equity: | ||||||||||
Preferred stock, par value $1,000.00 per share | $ - | $ - | $ 21,597 | $ 21,603 | $ 21,584 | |||||
Common stock, par value $2.50 per share | 17,273 | 17,273 | 17,255 | 12,483 | 11,826 | |||||
Capital surplus | 42,826 | 42,807 | 42,703 | 28,310 | 26,083 | |||||
Retained earnings | 42,828 | 42,706 | 43,076 | 43,235 | 43,665 | |||||
Accumulated other comprehensive income (loss), net | (1,703) | (2,474) | (2,203) | (5,156) | (5,026) | |||||
Total Middleburg Financial Corporation shareholders' equity | 101,224 | 100,312 | 122,428 | 100,475 | 98,132 | |||||
Non-controlling interest in consolidated subsidiary | 2,666 | 3,047 | 2,793 | 3,033 | 2,567 | |||||
Total shareholders' equity | $ 103,890 | $ 103,359 | $ 125,221 | $ 103,508 | $ 100,699 | |||||
Total liabilities and shareholders' equity | $ 1,018,627 | $ 976,374 | $ 997,777 | $ 1,044,560 | $ 998,263 | |||||
MIDDLEBURG FINANCIAL CORPORATION | ||||||||||
KEY STATISTICS | For the Three Months Ended | |||||||||
Mar 31, 2010 | Dec 31, 2009 | Sep 30, 2009 | Jun 30, 2009 | |||||||
Net Income (dollars in thousands) | $ 814 | $ 1,114 | $ 610 | $ 813 | ||||||
Earnings per share, basic | $ 0.12 | $ 0.07 | $ 0.05 | $ 0.11 | ||||||
Earnings per share, diluted | $ 0.12 | $ 0.07 | $ 0.05 | $ 0.11 | ||||||
Dividend per share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.19 | ||||||
Return on average total assets | 0.33% | 0.35% | 0.29% | 0.19% | ||||||
Return on average total equity | 3.25% | 2.82% | 2.51% | 1.88% | ||||||
Dividend payout ratio | 84.90% | 142.86% | 200.00% | 172.73% | ||||||
Fee revenue as a percent of total revenue | 28.00% | 29.37% | 23.60% | 26.90% | ||||||
Net interest margin(1) | 3.94% | 3.83% | 4.13% | 4.36% | ||||||
Yield on average earning assets | 5.58% | 5.61% | 6.08% | 6.46% | ||||||
Yield on average interest-bearing liabilities | 1.93% | 2.16% | 2.35% | 2.50% | ||||||
Net interest spread | 3.65% | 3.45% | 3.73% | 3.96% | ||||||
Non-interest income to average assets | 1.93% | 2.10% | 1.71% | 2.15% | ||||||
Non-interest expense to average assets | 4.90% | 4.74% | 4.71% | 5.12% | ||||||
Efficiency ratio(2) | 87.85% | 83.48% | 84.26% | 82.25% | ||||||
(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 a fair amount of non taxable interest income due to the mix of securities in its investment security portfolio, net interest income for the ratio is calculated on a tax equivalent basis as described above. (2) The efficiency ratio is 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 | ||||||||||
1Q10 | 4Q09 | 3Q09 | 2Q09 | |||||||
BALANCE SHEET RATIOS | ||||||||||
Net loans to deposits | 78.32% | 78.83% | 81.67% | 79.36% | ||||||
Average interest-earning assets to | ||||||||||
average-interest bearing liabilities | 117.51% | 121.36% | 120.32% | 119.05% | ||||||
PER SHARE DATA | ||||||||||
Dividends | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.19 | ||||||
Book value | $ 14.65 | $ 14.52 | $ 14.61 | $ 15.80 | ||||||
Tangible book value | $ 13.71 | $ 13.57 | $ 13.65 | $ 14.47 | ||||||
SHARE PRICE DATA | ||||||||||
Closing price | $ 15.06 | $ 14.59 | $ 13.05 | $ 13.76 | ||||||
Diluted earnings multiple(1) | 1.03 | 0.97 | 0.67 | 0.66 | ||||||
Book value multiple(2) | 1.03 | 1.00 | 0.89 | 0.87 | ||||||
COMMON STOCK DATA | ||||||||||
Outstanding shares at end of period | 6,909,293 | 6,909,293 | 6,901,843 | 4,993,245 | ||||||
Weighted average shares outstanding | 6,909,293 | 5,635,687 | 5,208,624 | 4,675,849 | ||||||
Weighted average shares outstanding, diluted | 6,912,173 | 6,906,429 | 6,267,267 | 4,822,365 | ||||||
CAPITAL RATIOS | ||||||||||
Total parent equity to total assets | 9.94% | 10.59% | 12.27% | 9.62% | ||||||
Total risk based capital ratio | 15.02% | 15.06% | 18.22% | 14.73% | ||||||
Tier 1 risk based capital ratio | 13.77% | 13.86% | 16.97% | 13.54% | ||||||
Leverage ratio | 10.71% | 10.40% | 12.50% | 10.58% | ||||||
CREDIT QUALITY | ||||||||||
Net charge-offs to average loans | 0.04% | 0.18% | 0.17% | 0.26% | ||||||
Total non-performing loans to total loans | 2.00% | 1.48% | 1.57% | 1.99% | ||||||
Total non-performing assets to total assets | 1.87% | 1.64% | 1.88% | 1.96% | ||||||
Non-accrual loans to: | ||||||||||
total loans | 1.46% | 1.34% | 1.38% | 1.99% | ||||||
total assets | 0.94% | 0.88% | 0.90% | 1.24% | ||||||
Allowance for loan losses to: | ||||||||||
total loans | 1.50% | 1.33% | 1.41% | 1.45% | ||||||
non-performing assets | 51.88% | 53.00% | 49.21% | 46.14% | ||||||
non-accrual loans | 102.67% | 104.11% | 102.43% | 72.62% | ||||||
NON-PERFORMING ASSETS: | ||||||||||
(dollars in thousands) | ||||||||||
Loans delinquent over 90 days | $ 3,544 | $ 908 | $ 1,206 | $ - | ||||||
Non-accrual loans | 9,613 | 8,608 | 9,008 | 12,985 | ||||||
Other real estate owned and repossessed assets | 5,869 | 6,511 | 8,537 | 7,455 | ||||||
Total non-performing assets | 19,026 | 16,027 | 18,751 | 20,440 | ||||||
NET LOAN CHARGE-OFFS (RECOVERIES): | ||||||||||
(dollars in thousands) | ||||||||||
Loans charged off | $ 291 | $ 1,280 | $ 1,216 | $ 1,866 | ||||||
(Recoveries) | (47) | (48) | (49) | (6) | ||||||
Net charge-offs | $ 244 | $ 1,232 | $ 1,167 | $ 1,860 | ||||||
PROVISION FOR LOAN LOSSES (dollars in thousands) | $ 929 | $ 967 | $ 964 | $ 1,583 | ||||||
ALLOWANCE FOR LOAN LOSS SUMMARY | ||||||||||
(dollars in thousands) | ||||||||||
Balance at the beginning of period | $ 9,185 | $ 9,227 | $ 9,430 | $ 9,707 | ||||||
Provision | 929 | 967 | 964 | 1,583 | ||||||
Net charge-offs (recoveries) | 244 | 1,009 | 1,167 | 1,860 | ||||||
Balance at the end of period | $ 9,870 | $ 9,185 | $ 9,227 | $ 9,430 | ||||||
(1) The diluted earnings multiple 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. | ||||||||||
Average Balances, Income and Expenses, Yields and Rates | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2010 | 2009 | |||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||
Balance | Expense | Rate (2) | Balance | Expense | Rate (2) | |||||||
(Dollars in thousands) | ||||||||||||
Assets : | ||||||||||||
Securities: | ||||||||||||
Taxable | $ 119,744 | $ 959 | 3.25% | $ 115,468 | $ 1,279 | 4.49% | ||||||
Tax-exempt (1) | 63,929 | 1,050 | 6.66% | 62,031 | 1,103 | 7.21% | ||||||
Total securities | $ 183,673 | $ 2,009 | 4.44% | $ 177,499 | $ 2,382 | 5.44% | ||||||
Loans | ||||||||||||
Taxable | $ 678,854 | $ 10,445 | 6.24% | $ 715,438 | $ 12,950 | 7.34% | ||||||
Tax-exempt (1) | - | - | - | 3 | - | 0.00% | ||||||
Total loans | $ 678,854 | $ 10,445 | 6.24% | $ 715,441 | $ 12,950 | 7.34% | ||||||
Federal funds sold | - | - | - | 21,201 | 12 | 0.23% | ||||||
Interest on money market investments | - | - | - | - | - | - | ||||||
Interest bearing deposits in | ||||||||||||
other financial institutions | 44,677 | 35 | 0.32% | 3,541 | 22 | 2.52% | ||||||
Total earning assets | $ 907,204 | $ 12,489 | 5.58% | $ 917,682 | $ 15,366 | 6.79% | ||||||
Less: allowances for credit losses | (9,104) | (9,843) | ||||||||||
Total nonearning assets | 90,757 | 91,382 | ||||||||||
Total assets | $ 988,857 | $ 999,221 | ||||||||||
Liabilities: | ||||||||||||
Interest-bearing deposits: | ||||||||||||
Checking | $ 279,655 | $ 601 | 0.87% | $ 224,570 | $ 811 | 1.46% | ||||||
Regular savings | 70,393 | 183 | 1.05% | 51,960 | 184 | 1.44% | ||||||
Money market savings | 50,957 | 115 | 0.92% | 35,876 | 109 | 1.23% | ||||||
Time deposits: | ||||||||||||
$100,000 and over | 161,447 | 1,152 | 2.89% | 130,201 | 1,119 | 3.49% | ||||||
Under $100,000 | 136,953 | 1,123 | 3.33% | 205,424 | 1,933 | 3.82% | ||||||
Total interest-bearing deposits | $ 699,405 | $ 3,174 | 1.84% | $ 648,031 | $ 4,156 | 2.60% | ||||||
Short-term borrowings | 4,843 | 44 | 3.68% | 31,735 | 276 | 3.53% | ||||||
Securities sold under agreements to repurchase | 21,644 | 20 | 0.37% | 23,099 | 22 | 0.39% | ||||||
Long-term debt | 46,136 | 438 | 3.85% | 84,377 | 853 | 4.10% | ||||||
Federal funds purchased | - | - | - | - | - | - | ||||||
Total interest-bearing liabilities | $ 772,028 | $ 3,676 | 1.93% | $ 787,242 | $ 5,307 | 2.73% | ||||||
Non-interest bearing liabilities | ||||||||||||
Demand deposits | 105,994 | 107,326 | ||||||||||
Other liabilities | 6,562 | 10,462 | ||||||||||
Total liabilities | $ 884,584 | $ 905,030 | ||||||||||
Non-controlling interest | 2,725 | 2,316 | ||||||||||
Shareholders' equity | 101,548 | 91,875 | ||||||||||
Total liabilities and shareholders' equity | $ 988,857 | $ 999,221 | ||||||||||
Net interest income | $ 8,813 | $ 10,059 | ||||||||||
Interest rate spread | 3.65% | 4.06% | ||||||||||
Interest expense as a percent of average earning assets | 1.64% | 2.35% | ||||||||||
Net interest margin | 3.94% | 4.45% | ||||||||||
Return on average assets | 0.33% | 0.40% | ||||||||||
Return on average equity | 3.25% | 4.24% | ||||||||||
(1) Income and yields are reported on tax equivalent basis assuming a federal tax rate of 34%. | ||||||||||||
(2) All yields and rates have been annualized on a 365 day year. | ||||||||||||
SOURCE Middleburg Financial Corporation
Share this article