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, Dec. 31, Sep. 30, 2010 2009 2009 -------- --------- --------- INTEREST INCOME Interest and fees on loans $10,445 $11,041 $11,973 Interest on investment securities 1,687 1,883 1,998 TOTAL INTEREST INCOME $12,132 $12,924 $13,971 ------- ------- ------- INTEREST EXPENSE Interest on deposits $3,174 $3,633 $3,866 Interest on borrowings 502 577 749 TOTAL INTEREST EXPENSE $3,676 $4,210 $4,615 ------ ------ ------ NET INTEREST INCOME $8,456 $8,714 $9,356 PROVISION FOR LOAN LOSSES 929 967 964 --- --- --- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $7,527 $7,747 $8,392 ------ ------ ------ NON INTEREST INCOME Trust and investment advisory fee income $815 $816 $813 Service charges on deposits 441 486 474 Gain on the sale of loans 2,630 3,283 2,407 Net (losses) gains on securities available for sale including OTTI adjustments 355 365 (258) Commissions on investment sales 144 175 148 Equity earnings in unconsolidated subsidiaries 37 40 23 Bank owned life insurance 125 109 123 Other service charges, commissions and fees 471 429 298 Other operating income 54 36 29 TOTAL NON INTEREST INCOME $5,072 $5,739 $4,057 ------ ------ ------ NON INTEREST EXPENSE Salaries and employee benefits $6,924 $6,187 $6,925 Net occupancy expense of premises 1,604 1,500 1,455 Other taxes 196 149 148 Computer operations 328 344 285 Advertising and marketing 180 211 184 Other operating expenses 2,711 3,715 2,908 TOTAL NON INTEREST EXPENSE $11,943 $12,106 $11,905 ------- ------- ------- INCOME BEFORE TAXES $656 $1,380 $544 Income tax expense (benefit) 87 (5) (92) --- --- --- NET INCOME $569 $1,385 $636 NONCONTROLLING INTEREST NET (INCOME) LOSS 245 (270) (26) --- ---- --- MIDDLEBURG FINANCIAL CORPORATION NET INCOME $814 $1,115 $610 ==== ====== ====
For the Three Months Ended Jun. 30, Mar. 31, 2009 2009 --------- --------- INTEREST INCOME Interest and fees on loans $12,870 $12,950 Interest on investment securities 1,990 2,041 TOTAL INTEREST INCOME $14,860 $14,991 ------- ------- INTEREST EXPENSE Interest on deposits $3,959 $4,156 Interest on borrowings 991 1,151 TOTAL INTEREST EXPENSE $4,950 $5,307 ------ ------ NET INTEREST INCOME $9,910 $9,684 PROVISION FOR LOAN LOSSES 1,583 1,037 ----- ----- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $8,327 $8,647 ------ ------ NON INTEREST INCOME Trust and investment advisory fee income $792 $797 Service charges on deposits 490 455 Gain on the sale of loans 3,378 2,792 Net (losses) gains on securities available for sale including OTTI adjustments 661 230 Commissions on investment sales 172 85 Equity earnings in unconsolidated subsidiaries 92 111 Bank owned life insurance 130 127 Other service charges, commissions and fees 450 374 Other operating income (36) 16 TOTAL NON INTEREST INCOME $6,129 $4,987 ------ ------ NON INTEREST EXPENSE Salaries and employee benefits $7,670 $7,260 Net occupancy expense of premises 1,566 1,384 Other taxes 145 145 Computer operations 360 301 Advertising and marketing 216 149 Other operating expenses 3,062 2,593 TOTAL NON INTEREST EXPENSE $13,019 $11,832 ------- ------- INCOME BEFORE TAXES $1,437 $1,802 Income tax expense (benefit) 21 140 --- --- NET INCOME $1,416 $1,662 NONCONTROLLING INTEREST NET (INCOME) LOSS (603) (678) ---- ---- MIDDLEBURG FINANCIAL CORPORATION NET INCOME $813 $984 ==== ====
MIDDLEBURG FINANCIAL CORPORATION BALANCE SHEET
(dollars in thousands) Unaudited Audited Unaudited 3/31/2010 12/31/2009 9/30/2009 --------- ---------- --------- Assets: Cash and due from banks $20,333 $18,365 $80,646 Interest-bearing balances in banks 48,568 24,845 2,214 Federal funds sold - - - Securities at fair value 185,978 178,924 168,049 Loans, net of allowance for loan losses 648,009 635,094 643,293 Mortgages held for resale 42,836 45,010 36,826 Bank premises and equipment, net 23,152 23,506 22,848 Other assets 49,752 50,630 43,902 ------ ------ ------ Total assets $1,018,628 $976,374 $997,777 ========== ======== ======== Liabilities: Deposits: Non-interest bearing demand deposits $117,146 $106,459 $105,648 Savings and interest-bearing demand deposits 412,185 397,720 380,527 Time deposits 298,057 301,469 301,453 ------- ------- ------- Total deposits $827,388 $805,648 $787,628 Securities sold under agreements to repurchase 24,286 17,199 19,808 Short term borrowings 3,390 3,538 7,112 Long-term debt 47,912 35,000 43,000 Trust preferred capital notes 5,155 5,155 5,155 Other liabilities 6,606 6,475 9,853 Total liabilities $914,737 $873,015 $872,556 -------- -------- -------- Shareholders' Equity: Middleburg Financial Corporation shareholders' equity: Preferred stock, par value $1,000.00 per share $- $- $21,597 Common stock, par value $2.50 per share 17,273 17,273 17,255 Capital surplus 42,826 42,807 42,703 Retained earnings 42,828 42,706 43,076 Accumulated other comprehensive income (loss), net (1,703) (2,474) (2,203) Total Middleburg Financial Corporation shareholders' equity 101,224 100,312 122,428 ------- ------- ------- Non-controlling interest in consolidated subsidiary 2,666 3,047 2,793 Total shareholders' equity $103,890 $103,359 $125,221 Total liabilities and shareholders' equity $1,018,627 $976,374 $997,777 ---------- -------- --------
(dollars in thousands) Unaudited Unaudited 6/30/2009 3/31/2009 --------- --------- Assets: Cash and due from banks $39,721 $21,059 Interest-bearing balances in banks 2,958 1,725 Federal funds sold 54,600 24,500 Securities at fair value 162,355 165,921 Loans, net of allowance for loan losses 642,883 650,600 Mortgages held for resale 74,346 66,439 Bank premises and equipment, net 22,722 22,920 Other assets 44,975 45,099 ------ ------ Total assets $1,044,560 $998,263 ========== ======== Liabilities: Deposits: Non-interest bearing demand deposits $124,472 $113,131 Savings and interest-bearing demand deposits 347,561 329,042 Time deposits 338,100 331,075 ------- ------- Total deposits $810,133 $773,248 Securities sold under agreements to repurchase 19,505 18,989 Short term borrowings 21,278 15,340 Long-term debt 74,000 74,000 Trust preferred capital notes 5,155 5,155 Other liabilities 10,981 10,832 Total liabilities $941,052 $897,564 -------- -------- Shareholders' Equity: Middleburg Financial Corporation shareholders' equity: Preferred stock, par value $1,000.00 per share $21,603 $21,584 Common stock, par value $2.50 per share 12,483 11,826 Capital surplus 28,310 26,083 Retained earnings 43,235 43,665 Accumulated other comprehensive income (loss), net (5,156) (5,026) Total Middleburg Financial Corporation shareholders' equity 100,475 98,132 ------- ------ Non-controlling interest in consolidated subsidiary 3,033 2,567 Total shareholders' equity $103,508 $100,699 Total liabilities and shareholders' equity $1,044,560 $998,263 ---------- --------
MIDDLEBURG FINANCIAL CORPORATION
KEY STATISTICS For the Three Months Ended Mar 31, Dec 31, Sep 30, Jun 30, 2010 2009 2009 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 ---- Average Income/ Yield/ Rate Balance Expense (2) ------- ------- ----- (Dollars in thousands) Assets : Securities: Taxable $119,744 $959 3.25% Tax-exempt (1) 63,929 1,050 6.66% Total securities $183,673 $2,009 4.44% Loans Taxable $678,854 $10,445 6.24% Tax-exempt (1) - - - --- Total loans $678,854 $10,445 6.24% Federal funds sold - - - Interest on money market investments - - - Interest bearing deposits in other financial institutions 44,677 35 0.32% ------ --- Total earning assets $907,204 $12,489 5.58% Less: allowances for credit losses (9,104) Total nonearning assets 90,757 ------ Total assets $988,857 ======== Liabilities: Interest-bearing deposits: Checking $279,655 $601 0.87% Regular savings 70,393 183 1.05% Money market savings 50,957 115 0.92% Time deposits: $100,000 and over 161,447 1,152 2.89% Under $100,000 136,953 1,123 3.33% ------- ----- Total interest- bearing deposits $699,405 $3,174 1.84% Short-term borrowings 4,843 44 3.68% Securities sold under agreements to repurchase 21,644 20 0.37% Long-term debt 46,136 438 3.85% Federal funds purchased - - - --- --- Total interest- bearing liabilities $772,028 $3,676 1.93% Non-interest bearing liabilities Demand deposits 105,994 Other liabilities 6,562 Total liabilities $884,584 Non-controlling interest 2,725 Shareholders' equity 101,548 Total liabilities and shareholders' equity $988,857 ======== Net interest income $8,813 ====== Interest rate spread 3.65% Interest expense as a percent of average earning assets 1.64% Net interest margin 3.94% Return on average assets 0.33% Return on average equity 3.25%
Three Months Ended March 31, ---------------------------- 2009 ---- Average Income/ Yield/ Rate Balance Expense (2) ------- ------- ----- (Dollars in thousands) Assets : Securities: Taxable $115,468 $1,279 4.49% Tax-exempt (1) 62,031 1,103 7.21% Total securities $177,499 $2,382 5.44% Loans Taxable $715,438 $12,950 7.34% Tax-exempt (1) 3 - 0.00% --- Total loans $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 3,541 22 2.52% ----- --- Total earning assets $917,682 $15,366 6.79% Less: allowances for credit losses (9,843) Total nonearning assets 91,382 ------ Total assets $999,221 ======== Liabilities: Interest-bearing deposits: Checking $224,570 $811 1.46% Regular savings 51,960 184 1.44% Money market savings 35,876 109 1.23% Time deposits: $100,000 and over 130,201 1,119 3.49% Under $100,000 205,424 1,933 3.82% ------- ----- Total interest- bearing deposits $648,031 $4,156 2.60% Short-term borrowings 31,735 276 3.53% Securities sold under agreements to repurchase 23,099 22 0.39% Long-term debt 84,377 853 4.10% Federal funds purchased - - - --- --- Total interest- bearing liabilities $787,242 $5,307 2.73% Non-interest bearing liabilities Demand deposits 107,326 Other liabilities 10,462 Total liabilities $905,030 Non-controlling interest 2,316 Shareholders' equity 91,875 Total liabilities and shareholders' equity $999,221 ======== Net interest income $10,059 ======= Interest rate spread 4.06% Interest expense as a percent of average earning assets 2.35% Net interest margin 4.45% Return on average assets 0.40% Return on average equity 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