Middleburg Financial Corporation (MBRG) has reported a 2.46 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $2.26 million, or $0.32 a share in the quarter, compared with $2.32 million, or $0.32 a share for the same period last year.
Revenue during the quarter went down marginally by 0.85 percent to $12.16 million from $12.26 million in the previous year period. Net interest income for the quarter dropped 0.43 percent over the prior year period to $9.62 million. Non-interest income for the quarter rose 3.36 percent over the last year period to $2.24 million.
Middleburg Financial Corporation has made negative provision of $0.30 million for loan losses during the quarter, compared with a negative provision of $0.43 million in the same period last year.
Net interest margin contracted 17 basis points to 3.11 percent in the quarter from 3.28 percent in the last year period. Efficiency ratio for the quarter deteriorated to 74.43 percent from 72.90 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
“As you most likely already know, on October 24, 2016 we announced a definitive agreement to combine in a strategic merger of equals with Access National Corporation (NASDAQ: ANCX). We believe this combination creates Virginia's premier bank, with enhanced scale, improved efficiency and a well-diversified business model. The two companies have highly complementary businesses and geographic footprints with a greater market reach enabling significant opportunities for growth. As a result of our past success, both companies will retain their branding as we move forward. Access National's expertise in business banking, commercial and industrial (C&I) lending and mortgage origination complements Middleburg’s 92-year history with core strengths of driving deposits, trust and wealth management income. The new institution will rank fifth in deposit market share among Virginia-based banks under $10 billion in assets. Future performance is expected to be strong with accretive earnings per share greater than 7.5% in 2017 and greater than 10.0% in 2018,” said Gary R. Shook, president and chief executive officer of Middleburg Financial Corporation. “The extensive due diligence that is required by merging two like sized financial institutions is costly. As noted here, those expenses will weigh on earnings for the next several quarters as we move toward settlement.”
Liabilities outpace assets growth
Total assets stood at $1,335 million as on Sep. 30, 2016, up 5.84 percent compared with $1,261.29 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,206.08 million as on Sep. 30, 2016, up 6.27 percent from $1,134.88 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $834.69 million as on Sep. 30, 2016, up 8.48 percent compared with $769.47 million on Sep. 30, 2015. Deposits stood at $1,091.50 million as on Sep. 30, 2016, up 5.73 percent compared with $1,032.35 million on Sep. 30, 2015.
Investments stood at $363.34 million as on Sep. 30, 2016, down 2.92 percent or $10.93 million from year-ago. Shareholders equity stood at $128.92 million as on Sep. 30, 2016, up 1.98 percent or $2.51 million from year-ago.
Return on average assets moved down 5 basis points to 0.68 percent in the quarter from 0.73 percent in the last year period. At the same time, return on average equity decreased 32 basis points to 7.01 percent in the quarter from 7.33 percent in the last year period.
Nonperforming assets stood at $23.77 million as on Sep. 30, 2016. Meanwhile, nonperforming assets to total assets was 1.78 percent in the quarter.
Book value per share was $18.15 for the quarter.
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