Middleburg Financial (Middleburg Financial) EV-to-EBITDA

Middleburg Financial Corp., was incorporated under Virginia law in 1993. The Company is a bank holding company that conducts its operations through two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. The Company has one other wholly owned subsidiary, MFC Capital Trust II, which is a Delaware Business Trust. The Company, through its subsidiaries, offers banking, fiduciary and investment management services to both individuals and small businesses. Middleburg Bank has 12 full service facilities and one limited service facility. Middleburg's services include checking and savings deposit accounts, and the making of business, real estate, development, mortgage, home equity, automobile and other installment, demand and term loans and also offers ATM services. Additional banking services available to the Company's clients include, but are not limited to, Internet banking, travelers' checks, money orders, safe deposit rentals, notary public and wire services. Middleburg Bank has one wholly owned subsidiary, Middleburg Bank Service Corporation, which is a partner in two limited liability companies, Bankers Title Shenandoah, LLC, which sells title insurance through its members, and Bankers Insurance, LLC, which acts as a broker for insurance sales for its member banks. Southern Trust Mortgage offers mortgage banking services to residential borrowers in five states within the southeastern United States. Southern Trust Mortgage operates as Middleburg Mortgage within all of the Company's financial service centers to provide mortgage banking services for the Company's clients. Middleburg Investment Group is a non-bank holding company that offers wealth management services through its subsidiaries and through the investment services department of Middleburg Bank. The Company operates in a decentralized fashion in three principal business activities: retail banking services; wealth management services; and mortgage banking services. Revenue from retail banking activities consists mainly of interest earned on loans and investment securities and service charges on deposit accounts. Revenue from the wealth management activities is comprised mostly of fees based upon the market value of the accounts under administration as well as commissions on investment transactions. The wealth management services are conducted by Middleburg Trust Company and the investment services department of Middleburg Bank. Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The Company recognizes gains on the sale of loans as part of other income. The mortgage banking services are conducted by Southern Trust Mortgage. The Company's commercial and retail banking segment faces significant competition for both loans and deposits. Competition for loans comes from commercial banks, savings and loan associations and savings banks, mortgage banking