MIDDLEBURG, Va., May 15, 2014 /PRNewswire/ -- Middleburg Financial Corporation (Nasdaq: MBRG), today announced that its wholly-owned banking subsidiary, Middleburg Bank, has finalized the sale of its membership interests in its majority-owned subsidiary, Southern Trust Mortgage.
"The sale of our interest in Southern Trust Mortgage is part of our efforts to ensure alignment with our core strategies to generate long-term shareholder value," said Gary R. Shook, president and chief executive officer, Middleburg Financial Corporation.
The Company determined to sell its interest in light of declining profitability in the mortgage business and increasing regulatory burdens on the industry. The Bank will maintain a working relationship with Southern Trust Mortgage and remains committed to providing a wide range of banking services, including mortgages, to its customers and communities.
Southern Trust Mortgage is a regional mortgage lender headquartered in Virginia Beach, Virginia and has offices in Virginia, Maryland, Georgia, North Carolina and South Carolina. Middleburg Bank owned 62.4% of the issued and outstanding membership interest units in Southern Trust Mortgage.
Caution about Forward Looking Statements
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, 2013, and other filings with the Securities and Exchange Commission.
About Middleburg Financial Corporation
Middleburg Financial Corporation is headquartered in Middleburg, Virginia and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. Middleburg Bank serves communities in Virginia with financial centers in Ashburn, Gainesville, Leesburg, Marshall, Middleburg, Purcellville, Reston, Richmond, Warrenton and Williamsburg. Middleburg Investment Group owns Middleburg Trust Company, which is headquartered in Richmond, Virginia with offices in Middleburg, Alexandria and Williamsburg.
SOURCE Middleburg Financial Corporation
