Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING DISCLOSURES

v2.4.0.8
SEGMENT REPORTING DISCLOSURES
 6 Months Ended
Jun. 30, 2013
SEGMENT REPORTING DISCLOSURES [Abstract]  
SEGMENT REPORTING DISCLOSURES

12.            SEGMENT REPORTING DISCLOSURES

 

The Company has two reportable segments: a traditional full service community bank and a mortgage loan origination business. The community bank business for 2013 includes one subsidiary bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 90 retail locations in Virginia. The mortgage segment includes one mortgage company, which provides a variety of mortgage loan products principally in Virginia, North Carolina, South Carolina, Maryland, and the Washington D.C. metro area. These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which subject the Company to only de minimus risk.

Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process.

Both of the Company’s reportable segments are service-based. The mortgage business is a fee-based business while the bank is driven principally by net interest income. The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business. The mortgage segment offers a more limited referral network for the bank segment, due largely to the minimal degree of overlapping geographic markets.

The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest at the three month LIBOR rate plus 1.5%, floor of 2%. These transactions are eliminated in the consolidation process. A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals.

 

Information about reportable segments and reconciliation of such information to the consolidated financial statements for three and six months ended June  30, 2013 and 2012 was as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNION FIRST MARKET BANKSHARES CORPORATION AND SUBSIDIARIES

SEGMENT FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Community Bank

 

Mortgage

 

Eliminations

 

Consolidated

Three Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
36,960 

 

$
443 

 

$

 -

 

$
37,403 

Provision for loan losses

 
1,000 

 

 

 -

 

 

 -

 

 
1,000 

Net interest income after provision for loan losses

 
35,960 

 

 
443 

 

 

 -

 

 
36,403 

Noninterest income

 
6,798 

 

 
4,668 

 

 
(167)

 

 
11,299 

Noninterest expenses

 
29,793 

 

 
4,657 

 

 
(167)

 

 
34,283 

Income before income taxes

 
12,965 

 

 
454 

 

 

 -

 

 
13,419 

Income tax expense

 
3,796 

 

 
160 

 

 

 -

 

 
3,956 

Net income

$
9,169 

 

$
294 

 

$

 -

 

$
9,463 

Total assets

$
4,045,163 

 

$
121,392 

 

$
(109,998)

 

$
4,056,557 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2012

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
37,792 

 

$
295 

 

$

 -

 

$
38,087 

Provision for loan losses

 
3,000 

 

 

 -

 

 

 -

 

 
3,000 

Net interest income after provision for loan losses

 
34,792 

 

 
295 

 

 

 -

 

 
35,087 

Noninterest income

 
6,537 

 

 
3,833 

 

 
(117)

 

 
10,253 

Noninterest expenses

 
30,386 

 

 
3,338 

 

 
(117)

 

 
33,607 

Income before income taxes

 
10,943 

 

 
790 

 

 

 -

 

 
11,733 

Income tax expense

 
2,993 

 

 
320 

 

 

 -

 

 
3,313 

Net income

$
7,950 

 

$
470 

 

$

 -

 

$
8,420 

Total assets

$
3,967,690 

 

$
110,374 

 

$
(95,776)

 

$
3,982,288 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
74,147 

 

$
1,010 

 

$

 -

 

$
75,157 

Provision for loan losses

 
3,050 

 

 

 -

 

 

 -

 

 
3,050 

Net interest income after provision for loan losses

 
71,097 

 

 
1,010 

 

 

 -

 

 
72,107 

Noninterest income

 
12,945 

 

 
8,522 

 

 
(334)

 

 
21,133 

Noninterest expenses

 
59,338 

 

 
8,779 

 

 
(334)

 

 
67,783 

Income before income taxes

 
24,704 

 

 
753 

 

 

 -

 

 
25,457 

Income tax expense

 
6,731 

 

 
280 

 

 

 -

 

 
7,011 

Net income

$
17,973 

 

$
473 

 

$

 -

 

$
18,446 

Total assets

$
4,045,163 

 

$
121,392 

 

$
(109,998)

 

$
4,056,557 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2012

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
75,830 

 

$
604 

 

$

 -

 

$
76,434 

Provision for loan losses

 
6,500 

 

 

 -

 

 

 -

 

 
6,500 

Net interest income after provision for loan losses

 
69,330 

 

 
604 

 

 

 -

 

 
69,934 

Noninterest income

 
12,363 

 

 
6,600 

 

 
(234)

 

 
18,729 

Noninterest expenses

 
60,069 

 

 
6,039 

 

 
(234)

 

 
65,874 

Income before income taxes

 
21,624 

 

 
1,165 

 

 

 -

 

 
22,789 

Income tax expense

 
5,985 

 

 
461 

 

 

 -

 

 
6,446 

Net income

$
15,639 

 

$
704 

 

$

 -

 

$
16,343 

Total assets

$
3,967,690 

 

$
110,374 

 

$
(95,776)

 

$
3,982,288