PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY FINANCIAL INFORMATION

PARENT COMPANY FINANCIAL INFORMATION

The primary source of funds for the dividends paid by Union Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2016, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $37.1 million, or 3.71%, of the consolidated net assets.

Financial information for the Parent Company is as follows:

PARENT COMPANY

CONDENSED BALANCE SHEETS

AS OF DECEMBER 31, 2016 and 2015

(Dollars in thousands)

	2016		2015
ASSETS
Cash	$	10,681	$	10,386
Premises and equipment, net	11,470		11,875
Other assets	10,864		8,462
Investment in subsidiaries	1,213,484		1,067,611
Total assets	$	1,246,499	$	1,098,334
LIABILITIES AND STOCKHOLDERS' EQUITY
Long-term borrowings	148,000		7,500
Trust preferred capital notes	86,559		86,312
Other liabilities	10,908		9,155
Total liabilities	245,467		102,967
Total stockholders' equity	1,001,032		995,367
Total liabilities and stockholders' equity	$	1,246,499	$	1,098,334

PARENT COMPANY

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2016, 2015, and 2014

(Dollars in thousands)

	2016		2015		2014
Income:
Interest and dividend income	$	23	$	8	$	5
Dividends received from subsidiaries	51,439		51,496		75,470
Equity in (distributed) undistributed net income from subsidiaries	31,984		20,800		(15,909		)
Other operating income	1,314		1,228		1,393
Total income	84,760		73,532		60,959
Expenses:
Interest expense	5,656		4,697		4,581
Occupancy expenses	549		556		573
Furniture and equipment expenses	18		9		20
Other operating expenses	1,061		1,191		3,621
Total expenses	7,284		6,453		8,795
Net income	$	77,476	$	67,079	$	52,164
Comprehensive income	$	67,415	$	61,076	$	66,609

PARENT COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2016, 2015, and 2014

(Dollars in thousands)

	2016			2015			2014
Operating activities:
Net income	$	77,476		$	67,079		$	52,164
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in distributed (undistributed) net income of subsidiaries	(31,984		)	(20,800		)	15,909
Depreciation of premises and equipment	438			435			464
Acquisition accounting amortization, net	247			235			224
Issuance of common stock grants for services	533			564			713
Net (increase) decrease in other assets	(2,402		)	902			2,964
Net (decrease) increase in other liabilities	5,533			6,124			(7,286		)
Net cash and cash equivalents provided by operating activities	49,841			54,539			65,152
Investing activities:
Net decrease (increase) in premises and equipment	(33		)	(35		)	863
Payments for equity method investment	—			(355		)	(60		)
Payments for investments in and advances to subsidiaries	(125,000		)	—			—
Repayment of investments in and advances to subsidiaries	540			—			—
Cash received in acquisitions	—			—			4,735
Net cash and cash equivalents provided by (used in) investing activities	(124,493		)	(390		)	5,538
Financing activities:
Advances (repayments) of short-term borrowings	—			(8,000		)	8,000
Repayments of long-term borrowings	(7,500		)	(625		)	(625		)
Proceeds from issuance of long-term borrowings	148,000			—			—
Cash dividends paid	(33,672		)	(29,082		)	(25,494		)
Net Issuance (repurchase) of common stock	(31,881		)	(15,748		)	(52,971		)
Net cash and cash equivalents provided by (used in) financing activities	74,947			(53,455		)	(71,090		)
Net increase (decrease) in cash and cash equivalents	295			694			(400		)
Cash and cash equivalents at beginning of the period	10,386			9,692			10,092
Cash and cash equivalents at end of the period	$	10,681		$	10,386		$	9,692
Supplemental schedule of noncash investing and financing activities
Issuance of common stock in exchange for net assets in acquisition	$	—		$	—		$	549,523
Transactions related to bank acquisition
Assets acquired	—			—			2,957,521
Liabilities assumed	—			—			2,642,120