Overview of Middleburg Financial Corporation’s 2010 Performance
Middleburg Financial Corporation recently hosted its annual shareholder meeting and Gary Shook provides an overview of the company's performance during 2010.
Today we released our earnings report for the first quarter of 2011 and overall the results are indicative of an economy on the mend. While neither the Bank nor our local economy is out of the woods yet, there does seem to be reason for cautious optimism.
We also held Middleburg Financial Corporation's annual shareholder meeting this week and reviewed our accomplishments from 2010 as well as some of the steps we will take in 2011 and beyond to ensure the Company's long-term health and stability. (Click here if you'd like to view the entire presentation.)
Throughout 2010, the company continued to deal with the impact of the economic downturn, balancing the short-term needs of the business with the long-term goals of the company and its shareholders. As we made difficult decisions throughout the year, we focused on balancing the expectations of our four key constituencies - clients, communities, employees and shareholders. We believe we achieved that balance and, in doing so, have taken steps that position the organization for a bright and prosperous future.
This last year brought significant changes for your company. Each of these in their own way help lay the foundation for strong, consistent financial performance as the country and the financial services industry emerge from the current recession. There were four significant changes during 2010:
- In May, as part of a Board-initiated transition plan that began in 2007, I was named President and Chief Executive Officer of the company following Joe Boling's retirement as CEO. Joe continues to serve as our chairman.
- During the third quarter, the company made the difficult decision to take a nearly $12 million pre-tax charge to earnings, which resulted in a loss of $5.8 million for the quarter and a loss of $2.7 million for the full year.
- In December, we hired Dwight Lampley as Chief Revenue Officer. This is a new position for the company and is indicative of our renewed focus on improving top-line performance.
- At the end of the year, we completed the consolidation of our investment services companies into a single entity - Middleburg Investment Group - and named David L. Hartley as President and CEO of MIG. This reorganization will provide greater efficiencies while allowing us to provide clients with an ever-broader set of financial solutions.
The actions we took during 2010 continue to help us post positive results. In the first quarter of 2011, the company delivered net income of $1.2 million, or 18 cents per share. This is up 50% from the first quarter last year. We also saw an improvement in net interest margin compared to the 4th quarter of last year and we experienced growth in total revenue compared to Q1 2010. Although there is still work to be done, we are pleased with the company's performance during the quarter.
As we look ahead, we will continue to focus on providing our clients the products, services and trusted advice they have come to expect from us. At the same time, we will redouble our efforts to attract new clients to the organization. At the same time, we will work hard to make the company as efficient as possible and to make doing business with us as easy as possible.
I thank you for your continued support of Middleburg Bank and for continuing to make us one of the top banks in the area.
Gary R. Shook
President & CEO