Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING DISCLOSURES

v2.4.0.8
SEGMENT REPORTING DISCLOSURES
 9 Months Ended
Sep. 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 serves to mitigate the Company’s exposure to interest rate 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 nine months ended September 30, 2013 and 2012 is 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 September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
37,465 

 

$
393 

 

$

 -

 

$
37,858 

Provision for loan losses

 
1,800 

 

 

 -

 

 

 -

 

 
1,800 

Net interest income after provision for loan losses

 
35,665 

 

 
393 

 

 

 -

 

 
36,058 

Noninterest income

 
7,322 

 

 
2,062 

 

 
(168)

 

 
9,216 

Noninterest expenses

 
29,904 

 

 
4,396 

 

 
(168)

 

 
34,132 

Income before income taxes

 
13,083 

 

 
(1,941)

 

 

 -

 

 
11,142 

Income tax expense

 
3,902 

 

 
(706)

 

 

 -

 

 
3,196 

Net income

$
9,181 

 

$
(1,235)

 

$

 -

 

$
7,946 

Total assets

$
4,041,661 

 

$
69,010 

 

$
(63,563)

 

$
4,047,108 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
38,428 

 

$
334 

 

$

 -

 

$
38,762 

Provision for loan losses

 
2,400 

 

 

 -

 

 

 -

 

 
2,400 

Net interest income after provision for loan losses

 
36,028 

 

 
334 

 

 

 -

 

 
36,362 

Noninterest income

 
5,863 

 

 
4,756 

 

 
(117)

 

 
10,502 

Noninterest expenses

 
29,709 

 

 
3,676 

 

 
(117)

 

 
33,268 

Income before income taxes

 
12,182 

 

 
1,414 

 

 

 -

 

 
13,596 

Income tax expense

 
3,415 

 

 
555 

 

 

 -

 

 
3,970 

Net income

$
8,767 

 

$
859 

 

$

 -

 

$
9,626 

Total assets

$
4,020,661 

 

$
154,181 

 

$
(146,649)

 

$
4,028,193 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
111,612 

 

$
1,402 

 

$

 -

 

$
113,014 

Provision for loan losses

 
4,850 

 

 

 -

 

 

 -

 

 
4,850 

Net interest income after provision for loan losses

 
106,762 

 

 
1,402 

 

 

 -

 

 
108,164 

Noninterest income

 
20,266 

 

 
10,586 

 

 
(503)

 

 
30,349 

Noninterest expenses

 
89,242 

 

 
13,176 

 

 
(503)

 

 
101,915 

Income before income taxes

 
37,786 

 

 
(1,188)

 

 

 -

 

 
36,598 

Income tax expense

 
10,633 

 

 
(427)

 

 

 -

 

 
10,206 

Net income

$
27,153 

 

$
(761)

 

$

 -

 

$
26,392 

Total assets

$
4,041,661 

 

$
69,010 

 

$
(63,563)

 

$
4,047,108 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$
114,258 

 

$
938 

 

$

 -

 

$
115,196 

Provision for loan losses

 
8,900 

 

 

 -

 

 

 -

 

 
8,900 

Net interest income after provision for loan losses

 
105,358 

 

 
938 

 

 

 -

 

 
106,296 

Noninterest income

 
18,228 

 

 
11,356 

 

 
(352)

 

 
29,232 

Noninterest expenses

 
89,780 

 

 
9,715 

 

 
(352)

 

 
99,143 

Income before income taxes

 
33,806 

 

 
2,579 

 

 

 -

 

 
36,385 

Income tax expense

 
9,400 

 

 
1,016 

 

 

 -

 

 
10,416 

Net income

$
24,406 

 

$
1,563 

 

$

 -

 

$
25,969 

Total assets

$
4,020,661 

 

$
154,181 

 

$
(146,649)

 

$
4,028,193