0000883948-20-000006.txt : 20200121 0000883948-20-000006.hdr.sgml : 20200121 20200121074031 ACCESSION NUMBER: 0000883948-20-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20200121 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200121 DATE AS OF CHANGE: 20200121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Atlantic Union Bankshares Corp CENTRAL INDEX KEY: 0000883948 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 540412820 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20293 FILM NUMBER: 20535090 BUSINESS ADDRESS: STREET 1: 1051 EAST CARY STREET STREET 2: SUITE 1200 CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 800-990-4828 MAIL ADDRESS: STREET 1: 1051 EAST CARY STREET STREET 2: SUITE 1200 CITY: RICHMOND STATE: VA ZIP: 23219 FORMER COMPANY: FORMER CONFORMED NAME: Union Bankshares Corp DATE OF NAME CHANGE: 20140430 FORMER COMPANY: FORMER CONFORMED NAME: UNION FIRST MARKET BANKSHARES CORP DATE OF NAME CHANGE: 20140424 FORMER COMPANY: FORMER CONFORMED NAME: Union Bankshares Corp DATE OF NAME CHANGE: 20140424 8-K 1 aub-20200121x8k.htm 8-K
0000883948false00008839482020-01-212020-01-21

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 21, 2020

 

ATLANTIC UNION BANKSHARES CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Virginia

0-20293

54-1598552

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

 

 

 

1051 East Cary Street

Suite 1200

Richmond, Virginia 23219

(Address of principal executive offices, including Zip Code)

 

Registrant’s telephone number, including area code: (804) 633-5031

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading Symbol(s)

  

Name of each exchange on which registered

Common Stock, par value $1.33 per share

AUB

The NASDAQ Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On January 21, 2020, Atlantic Union Bankshares Corporation (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2019. A copy of the press release is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference. 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.

 

Description of Exhibit

99.1

 

Press release dated January 21, 2020 regarding fourth quarter and full year results.

104

Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document

 

1

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

ATLANTIC UNION BANKSHARES CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

Date: January 21, 2020

By:

/s/ Robert M. Gorman

 

 

 

Robert M. Gorman

 

 

 

Executive Vice President and

 

 

 

Chief Financial Officer

 

2

EX-99.1 2 aub-20200121ex9911a3df0.htm EX-99.1 aub_Earnings Release_Ex99_1

Exhibit 99.1

Picture 5

Contact:              Robert M. Gorman - (804) 523‑7828

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS FOURTH QUARTER AND FULL YEAR  RESULTS

Richmond, Va., January 21, 2020 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income of $55.8 million and earnings per share of $0.69 for its fourth quarter ended December 31, 2019. Net operating earnings(1) were $57.3 million and operating earnings per share(1) were $0.71  for its fourth quarter ended December 31, 2019; these operating results exclude $709,000 in after-tax merger and $713,000 in after-tax rebranding-related costs.

Net income was $193.5 million and earnings per share were $2.41 for the year ended December 31, 2019. Net operating earnings(1) were $220.9 million and operating earnings per share(1) were $2.75 for the year ended December 31, 2019; these operating results exclude $22.3 million in after-tax merger and $5.1 million in after-tax rebranding-related costs but include after tax losses from discontinued operations of $170,000 and approximately $1.0 million in after-tax expenses related to branch closure costs.

Atlantic Union closed out an eventful 2019 with a solid fourth quarter - continuing to execute on our strategic plan and further improving performance against our key financial metrics despite the challenging interest rate environment,” said John C. Asbury, CEO of Atlantic Union Bankshares.  “As we begin 2020 we continue to believe we have a great opportunity before us to create something uniquely valuable for our shareholders and the communities we serve and remain keenly focused on reaching the full potential of this powerful franchise.”

 

Select highlights for the fourth quarter of 2019

o

Return on Average Assets (“ROA”) was 1.27% compared to 1.23% in the third quarter of 2019. Operating ROA(1) was 1.30% compared to 1.29% in the third quarter of 2019.

o

Return on Average Equity (“ROE”) was 8.81% compared to 8.35% in the third quarter of 2019. Operating ROE(1) was 9.03% compared to 8.80% in the third quarter of 2019.

o

Operating Return on Average Tangible Common Equity (“ROTCE”)(1) was 16.01% compared to 15.64% in the third quarter of 2019.

o

Efficiency ratio improved to 57.40% from 60.47% in the third quarter of 2019. Operating efficiency ratio (FTE)(1) improved to 52.65% from 55.12% in the third quarter of 2019.

 

Select highlights for the full year 2019

 

o

ROA was 1.15% compared to 1.11% for the year ended 2018. Operating ROA(1) was 1.31% compared to 1.35% for the year ended 2018.

o

ROE was 7.89% compared to 7.85% for the year ended 2018. Operating ROE(1) was 9.01% compared to 9.57% for the year ended 2018.

o

Operating ROTCE(1) was 16.14% compared to 17.35% for the year ended 2018.

o

Efficiency ratio improved to 62.37% from 63.62% for the year ended 2018. Operating efficiency ratio (FTE)(1) increased to 53.61% from 52.90%  for the year ended 2018.  

 

(1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

 

 

NET INTEREST INCOME

For the fourth quarter of 2019, net interest income was $135.1 million, a decrease of $1.5 million from the third quarter of 2019. Net interest income (FTE)(1) was $137.8 million in the fourth quarter of 2019, a decrease of $1.6 million from the third quarter of 2019. The decreases in both net interest income and net interest income (FTE) were primarily driven by lower earning asset yields during the three months ended December 31, 2019 compared to the three months ended September 30, 2019. The fourth quarter net interest margin decreased 9 basis points to 3.48% from 3.57% in the previous quarter, while the net interest margin (FTE)(1) decreased 9 basis points to 3.55% from 3.64% during the same periods. The decreases in the net interest margin and net interest margin (FTE) were principally due to an 18 basis point decrease in the yield on earning assets, partially offset by a 9 basis point decrease in the cost of funds.

The Company’s net interest margin (FTE) includes the impact of acquisition accounting fair value adjustments. During the fourth quarter of 2019, net accretion related to acquisition accounting increased $1.5 million from the prior quarter to $6.6 million for the quarter ended December 31, 2019. The third and fourth quarters of 2019, and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit 

 

 

 

 

 

 

 

 

Loan

 

Accretion

 

Borrowings

 

 

 

 

    

Accretion

    

(Amortization)

    

Amortization

    

Total

For the quarter ended September 30, 2019

 

$

5,018

 

$

179

 

$

(97)

 

$

5,100

For the quarter ended December 31, 2019

 

 

6,612

 

 

148

 

 

(123)

 

 

6,637

For the year ended December 31, 2019

 

 

24,846

 

 

833

 

 

(360)

 

 

25,319

For the years ending (estimated): (2)

 

 

  

 

 

  

 

 

  

 

 

  

2020

 

 

14,253

 

 

132

 

 

(633)

 

 

13,752

2021

 

 

10,823

 

 

14

 

 

(807)

 

 

10,030

2022

 

 

8,911

 

 

(43)

 

 

(829)

 

 

8,039

2023

 

 

6,302

 

 

(32)

 

 

(852)

 

 

5,418

2024

 

 

4,817

 

 

(4)

 

 

(877)

 

 

3,936

Thereafter

 

 

20,084

 

 

(1)

 

 

(10,773)

 

 

9,310

 

 

ASSET QUALITY/LOAN LOSS PROVISION

Overview

During the fourth quarter of 2019, the Company experienced decreases  in nonperforming assets (“NPA”) primarily due to nonaccrual customer payments and sales of foreclosed properties. Past due loan levels as a percentage of total loans held for investment at December 31, 2019 were higher than past due loan levels at September 30, 2019 and down from past due loan levels at December 31, 2018. The increase in past due loans from the prior quarter was primarily driven by a seasonal increase related to residential 1-4 family – consumer loans that were 30 days past due as of year-end of which the majority subsequently became current. Net charge-off levels  decreased from the third quarter of 2019 and were primarily related to the third party consumer loan portfolio; as a result, the provision for loan losses decreased from the third quarter of 2019.

All nonaccrual and past due loan metrics discussed below exclude purchased credit impaired (“PCI”) loans totaling $86.7 million  (net of fair value mark of $18.2 million) at December 31, 2019.

 


(1)

For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

(2)

Estimated loan accretion presented is prior to the adoption of Accounting Standard Codification (ASC) 326 – Financial Instruments – Credit Losses  (CECL).

 

Nonperforming Assets

At December 31, 2019, NPAs totaled $32.9 million, a decrease of $3.5 million or 9.6%, from September 30, 2019 and a decrease of $735,000 or 2.2%, from December 31, 2018. NPAs as a percentage of total outstanding loans at December 31, 2019 were 0.26%, a decline of 4 basis points from 0.30% at September 30, 2019 and a  decline of 9 basis points from 0.35% at December 31, 2018. As the Company’s NPAs have been at or near historic lows over the last several quarters, certain changes from quarter to quarter might stand out in comparison to one another but do not have a significant impact on the Company’s overall asset quality position. 

 

The following table shows a summary of nonperforming asset balances at the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

 

 

2019

 

2019

 

2019

 

2019

 

2018

Nonaccrual loans

 

$

28,232

 

$

30,032

 

$

27,462

 

$

24,841

 

$

26,953

Foreclosed properties

 

 

4,708

 

 

6,385

 

 

6,506

 

 

7,353

 

 

6,722

Total nonperforming assets

 

$

32,940

 

$

36,417

 

$

33,968

 

$

32,194

 

$

33,675

 

The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

 

 

2019

 

2019

 

2019

 

2019

 

2018

Beginning Balance

 

$

30,032

 

$

27,462

 

$

24,841

 

$

26,953

 

$

28,110

Net customer payments

 

 

(5,741)

 

 

(3,612)

 

 

(3,108)

 

 

(2,314)

 

 

(3,077)

Additions

 

 

5,631

 

 

8,327

 

 

6,321

 

 

3,297

 

 

4,659

Charge-offs

 

 

(1,690)

 

 

(884)

 

 

(592)

 

 

(1,626)

 

 

(2,069)

Loans returning to accruing status

 

 

 —

 

 

(1,103)

 

 

 —

 

 

(952)

 

 

(420)

Transfers to foreclosed property

 

 

 —

 

 

(158)

 

 

 —

 

 

(517)

 

 

(250)

Ending Balance

 

$

28,232

 

$

30,032

 

$

27,462

 

$

24,841

 

$

26,953

 

The following table shows the activity in foreclosed properties for the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

 

 

2019

 

2019

 

2019

 

2019

 

2018

Beginning Balance

 

$

6,385

 

$

6,506

 

$

7,353

 

$

6,722

 

$

6,800

Additions of foreclosed property

 

 

62

 

 

645

 

 

271

 

 

900

 

 

432

Valuation adjustments

 

 

(375)

 

 

(62)

 

 

(433)

 

 

(51)

 

 

(140)

Proceeds from sales

 

 

(1,442)

 

 

(737)

 

 

(638)

 

 

(171)

 

 

(286)

Gains (losses) from sales

 

 

78

 

 

33

 

 

(47)

 

 

(47)

 

 

(84)

Ending Balance

 

$

4,708

 

$

6,385

 

$

6,506

 

$

7,353

 

$

6,722

 

Past Due Loans

Past due loans still accruing interest totaled $76.6 million or 0.61% of total loans held for investment at December 31, 2019,  compared to $55.1 million or 0.45% of total loans held for investment at September 30, 2019, and $61.9 million or 0.64% of total loans held for investment at December 31, 2018.  Of the total past due loans still accruing interest $13.4 million or 0.11% of total loans held for investment were loans past due 90 days or more at December 31, 2019, compared to $12.0 million or 0.10% of total loans held for investment at September 30, 2019, and $8.9 million or 0.09% of total loans held for investment at December 31, 2018. The increase in past due loans was primarily driven by a seasonal increase related to residential 1-4 family - consumer loans that were 30 days past due as of year-end of which the majority subsequently became current.

Net Charge-offs

For the fourth quarter of 2019, net charge-offs were $4.6 million or 0.15% of total average loans on an annualized basis, compared to $7.7 million or 0.25% for the prior quarter, and $5.0 million or 0.21% for the fourth quarter last year. The majority of net charge-offs in the fourth quarter of 2019 were related to consumer loans. For the year ended December 31, 2019, net charge-offs were $20.9 million or 0.17% of total average loans compared to $11.1 million or 0.12%, for the year ended 2018.

Provision for Loan Losses

The provision for loan losses for the fourth quarter of 2019 was $3.1 million, a decrease of $6.0 million compared to the previous quarter and  a decrease of $1.7 million compared to the fourth quarter in 2018. The decrease in the provision for loan losses from the previous quarter and from the prior year were primarily driven by lower levels of net charge-offs.

Allowance for Loan Losses (“ALL”)

The ALL decreased $1.5 million from September 30, 2019 to $42.3 million at  December 31, 2019, primarily due to lower incurred losses embedded in the third party consumer portfolio as it continues to pay down and an improved economic environment, partially offset by loan growth during the quarter. The ALL as a percentage of the total loan portfolio was 0.34% at December 31, 2019, 0.36% at September 30, 2019, and 0.42% at December 31, 2018.  

The ratio of the ALL to nonaccrual loans was 149.8% at December 31, 2019, compared to 145.9% at September 30, 2019 and 152.3% at December 31, 2018.  The current level of the allowance for loan losses reflects specific reserves related to nonperforming loans, current risk ratings on loans, net charge-off activity, loan growth, delinquency trends, and other credit risk factors that the Company considers important in assessing the adequacy of the allowance for loan losses.

NONINTEREST INCOME

Noninterest income decreased $18.9 million to $29.2 million for the quarter ended December 31, 2019 from $48.1 million in the prior quarter. The decrease from prior quarter was primarily driven by approximately $9.3 million in life insurance proceeds received during the third quarter related to a Xenith-acquired loan that had been charged off prior to the Company’s acquisition of Xenith and a gain on sale of investment securities of approximately $7.1 million recorded during the third quarter. In addition, the fourth quarter noninterest income included a decline of approximately $2.0 million in loan related interest rate swap income due to lower transaction volumes and seasonally lower mortgage banking revenue of $685,000.  

NONINTEREST EXPENSE

Noninterest expense decreased $17.4 million for the quarter ended December 31, 2019 from $111.7 million in the prior quarter. Excluding merger-related costs, amortization of intangible assets, and rebranding-related costs, operating noninterest expense(1) decreased $15.4 million or 14.9%, in the fourth quarter of 2019. The decrease in operating noninterest expense was primarily due to the recognition of approximately $16.4 million loss on debt extinguishment in the third quarter resulting from the repayment of approximately $140.0 million in FHLB advances and the termination of the related cash flow hedges. Salaries and benefits declined by $2.5 million, primarily due to lower incentive compensation expense and higher deferred costs related to new loan originations.  These decreases were partially offset by increases in marketing expense of approximately $1.1 million, professional fees of $955,000 related to higher consulting costs, FDIC and other insurance expenses of $873,000 primarily due to a lower FDIC small bank assessment credit earned in the fourth quarter, and OREO and credit-related expense of approximately $542,000 due to OREO valuation adjustments driven by updated appraisals received during the quarter.  

 


(1) For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results

 

 

INCOME TAXES

The effective tax rate for the three months ended December 31, 2019 was 16.7% compared to 16.8% for the three months ended September 30, 2019.  

BALANCE SHEET

At December 31, 2019, total assets were $17.6 billion, an increase of $122.0 million, or approximately 2.8% (annualized), from September 30, 2019, and an increase of $3.8 billion, or approximately 27.6% from December 31, 2018. The increase in assets from the previous quarter was primarily due to loan growth during the fourth quarter of 2019. The increase from the prior year was primarily a result of the Access acquisition and loan growth.

At December 31, 2019, loans held for investment (net of deferred fees and costs) were $12.6 billion, an increase of $303.9 million, or 9.9% (annualized), from September 30, 2019, while average loans increased $87.4 million, or 2.9% (annualized), from the prior quarter. Loans held for investment increased $2.9 billion, or 29.8% from December 31, 2018, while quarterly average loans increased $2.8 billion, or 29.0% from the prior year. The increase from the prior year was primarily a result of the Access acquisition.

 

At December 31, 2019, total deposits were $13.3 billion, an increase of $260.3 million, or approximately 8.0% (annualized), from September 30, 2019, while average deposits increased $490.7 million, or 15.3% (annualized), from prior quarter.  Deposits increased $3.3 billion, or 33.4% from December 31, 2018, while quarterly average deposits increased $3.4 billion, or 33.7% from the prior year. The increase from the prior year was primarily a result of the Access acquisition.

The following table shows the Company’s capital ratios at the quarters ended:

 

 

 

 

 

 

 

 

 

    

December 31, 

    

September 30, 

    

December 31, 

 

 

 

2019

 

2019

 

2018

 

Common equity Tier 1 capital ratio (2)

 

10.24

%  

10.48

%  

9.93

%

Tier 1 capital ratio (2)

 

10.24

%  

10.48

%  

11.09

%

Total capital ratio (2)

 

12.64

%  

12.93

%  

12.88

%

Leverage ratio (Tier 1 capital to average assets) (2)

 

8.79

%  

8.94

%  

9.71

%

Common equity to total assets

 

14.31

%  

14.48

%  

13.98

%

Tangible common equity to tangible assets (1)

 

9.08

%  

9.23

%  

8.84

%


(1)

For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results

(2)

All ratios at December 31, 2019 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

 

During the fourth quarter of 2019, the Company declared and paid cash dividends of $0.25 per common share, consistent with the third quarter of 2019 and an increase of $0.02, or 8.7% compared to the fourth quarter of 2018. On July 10, 2019, the Company announced that its Board of Directors has authorized a share repurchase program to purchase up to $150 million of the Company’s common stock through June 30, 2021 in open market transactions or privately negotiated transactions. As of December 31, 2019, authority remained to repurchase approximately $70 million of the Company’s common stock.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 149 branches and approximately 170 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Middleburg Financial is a brand name used by Atlantic Union Bank and certain affiliates when providing trust, wealth management, private banking, and investment advisory products and services. Certain non-bank affiliates of Atlantic Union Bank include: Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., Dixon, Hubard, Feinour, & Brown, Inc., and Middleburg Investment Services, LLC, which provide investment advisory and/or brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

FOURTH QUARTER AND FULL YEAR 2019 EARNINGS RELEASE CONFERENCE CALL

Atlantic Union Bank will hold a conference call on Tuesday,  January 21, 2020 at 9:00 a.m. Eastern Time during which management will review the fourth quarter and full year 2019 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (877) 668‑4908; international callers wishing to participate may do so by dialing (973) 453‑3058. The conference ID number is 2394624.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

NON-GAAP FINANCIAL MEASURES

In reporting the results of the quarter and full year ended December 31, 2019, the Company has provided supplemental performance measures on a tax-equivalent, tangible, or operating basis.  These non-GAAP financial measures are a

supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP.  In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies.  The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance.  For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.  Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events.  Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.  Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to:

·

changes in interest rates;

·

general economic and financial market conditions in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels, and slowdowns in economic growth,

·

the Company’s ability to manage its growth or implement its growth strategy;

·

the introduction of new lines of business or new products and services;

·

the possibility that any of the anticipated benefits of the acquisition of Access will not be realized or will not be realized within the expected time period, the expected revenue synergies and cost savings from the acquisition may not be fully realized or realized within the expected time frame, revenues following the acquisition may be lower than expected, or customer and employee relationships and business operations may be disrupted by the acquisition;

·

the Company’s ability to recruit and retain key employees;

·

the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;

·

real estate values in the Bank’s lending area;

·

an insufficient allowance for loan losses;

·

the quality or composition of the loan or investment portfolios;

·

concentrations of loans secured by real estate, particularly commercial real estate;

·

the effectiveness of the Company’s credit processes and management of the Company’s credit risk;

·

demand for loan products and financial services in the Company’s market area;

·

the Company’s ability to compete in the market for financial services;

·

technological risks and developments, and cyber threats, attacks, or events;

·

performance by the Company’s counterparties or vendors;

·

deposit flows;

·

the availability of financing and the terms thereof;

·

the level of prepayments on loans and mortgage-backed securities;

·

legislative or regulatory changes and requirements;

·

the effects of changes in federal, state or local tax laws and regulations;

·

monetary and fiscal policies of the U.S. government including policies of the U.S. Department of the Treasury and the Federal Reserve;

·

changes to applicable accounting principles and guidelines; and

·

other factors, many of which are beyond the control of the Company.

Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018 and comparable “Risk Factors” sections of the Company’s Quarterly Reports on Form 10‑Q and related disclosures in other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

    

12/31/19

    

09/30/19

    

12/31/18

 

12/31/19

 

12/31/18

 

Results of Operations

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

Interest and dividend income

 

$

174,211

 

$

178,345

 

$

140,636

 

$

699,332

 

$

528,788

 

Interest expense

 

 

39,081

 

 

41,744

 

 

31,547

 

 

161,460

 

 

102,097

 

Net interest income

 

 

135,130

 

 

136,601

 

 

109,089

 

 

537,872

 

 

426,691

 

Provision for credit losses

 

 

2,900

 

 

9,100

 

 

4,725

 

 

21,092

 

 

13,736

 

Net interest income after provision for credit losses

 

 

132,230

 

 

127,501

 

 

104,364

 

 

516,780

 

 

412,955

 

Noninterest income

 

 

29,193

 

 

48,106

 

 

23,487

 

 

132,815

 

 

104,241

 

Noninterest expenses

 

 

94,318

 

 

111,687

 

 

74,533

 

 

418,340

 

 

337,767

 

Income before income taxes

 

 

67,105

 

 

63,920

 

 

53,318

 

 

231,255

 

 

179,429

 

Income tax expense

 

 

11,227

 

 

10,724

 

 

9,041

 

 

37,557

 

 

30,016

 

Income from continuing operations

 

 

55,878

 

 

53,196

 

 

44,277

 

 

193,698

 

 

149,413

 

Discontinued operations, net of tax

 

 

(42)

 

 

42

 

 

(192)

 

 

(170)

 

 

(3,165)

 

Net income

 

$

55,836

 

$

53,238

 

$

44,085

 

$

193,528

 

$

146,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

 

$

176,868

 

$

181,149

 

$

142,970

 

$

710,453

 

$

536,981

 

Net interest income (FTE) (1)

 

 

137,787

 

 

139,405

 

 

111,424

 

 

548,993

 

 

434,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

 

$

0.69

 

$

0.65

 

$

0.67

 

$

2.41

 

$

2.22

 

Return on average assets (ROA)

 

 

1.27

%  

 

1.23

%  

 

1.29

%

 

1.15

%  

 

1.11

%

Return on average equity (ROE)

 

 

8.81

%  

 

8.35

%  

 

9.21

%

 

7.89

%  

 

7.85

%

Efficiency ratio

 

 

57.40

%  

 

60.47

%  

 

56.22

%

 

62.37

%  

 

63.62

%

Net interest margin

 

 

3.48

%  

 

3.57

%  

 

3.62

%

 

3.61

%  

 

3.67

%

Net interest margin (FTE) (1)

 

 

3.55

%  

 

3.64

%  

 

3.70

%

 

3.69

%  

 

3.74

%

Yields on earning assets (FTE) (1)

 

 

4.55

%  

 

4.73

%  

 

4.74

%

 

4.77

%  

 

4.62

%

Cost of interest-bearing liabilities

 

 

1.33

%  

 

1.45

%  

 

1.34

%

 

1.43

%  

 

1.12

%

Cost of deposits

 

 

0.92

%  

 

0.95

%  

 

0.76

%

 

0.92

%  

 

0.61

%

Cost of funds

 

 

1.00

%  

 

1.09

%  

 

1.04

%

 

1.08

%  

 

0.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating earnings

 

$

57,258

 

$

56,057

 

$

46,248

 

$

220,923

 

$

178,313

 

Operating earnings per share, diluted

 

$

0.71

 

$

0.69

 

$

0.70

 

$

2.75

 

$

2.71

 

Operating ROA

 

 

1.30

%  

 

1.29

%  

 

1.36

%

 

1.31

%  

 

1.35

%

Operating ROE

 

 

9.03

%  

 

8.80

%  

 

9.66

%

 

9.01

%  

 

9.57

%

Operating ROTCE (2) (3)

 

 

16.01

%  

 

15.64

%  

 

17.18

%

 

16.14

%  

 

17.35

%

Operating efficiency ratio (FTE) (1)(6)

 

 

52.65

%  

 

55.12

%  

 

51.34

%

 

53.61

%  

 

52.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.69

 

$

0.65

 

$

0.67

 

$

2.41

 

$

2.22

 

Earnings per common share, diluted

 

 

0.69

 

 

0.65

 

 

0.67

 

 

2.41

 

 

2.22

 

Cash dividends paid per common share

 

 

0.25

 

 

0.25

 

 

0.23

 

 

0.96

 

 

0.88

 

Market value per share

 

 

37.55

 

 

37.25

 

 

28.23

 

 

37.55

 

 

28.23

 

Book value per common share

 

 

31.58

 

 

31.29

 

 

29.34

 

 

31.58

 

 

29.34

 

Tangible book value per common share (2)

 

 

18.90

 

 

18.80

 

 

17.51

 

 

18.90

 

 

17.51

 

Price to earnings ratio, diluted

 

 

13.72

 

 

14.44

 

 

10.62

 

 

15.58

 

 

12.72

 

Price to book value per common share ratio

 

 

1.19

 

 

1.19

 

 

0.96

 

 

1.19

 

 

0.96

 

Price to tangible book value per common share ratio (2)

 

 

1.99

 

 

1.98

 

 

1.61

 

 

1.99

 

 

1.61

 

Weighted average common shares outstanding, basic

 

 

80,439,007

 

 

81,769,193

 

 

65,982,304

 

 

80,200,950

 

 

65,859,165

 

Weighted average common shares outstanding, diluted

 

 

80,502,269

 

 

81,832,868

 

 

66,013,326

 

 

80,263,557

 

 

65,908,573

 

Common shares outstanding at end of period

 

 

80,001,185

 

 

81,147,896

 

 

65,977,149

 

 

80,001,185

 

 

65,977,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

    

12/31/19

    

09/30/19

    

12/31/18

 

12/31/19

 

12/31/18

 

Capital Ratios

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

Common equity Tier 1 capital ratio (5)

 

 

10.24

%  

 

10.48

%  

 

9.93

%

 

10.24

%  

 

9.93

%

Tier 1 capital ratio (5)

 

 

10.24

%  

 

10.48

%  

 

11.09

%

 

10.24

%  

 

11.09

%

Total capital ratio (5)

 

 

12.64

%  

 

12.93

%  

 

12.88

%

 

12.64

%  

 

12.88

%

Leverage ratio (Tier 1 capital to average assets) (5)

 

 

8.79

%  

 

8.94

%  

 

9.71

%

 

8.79

%  

 

9.71

%

Common equity to total assets

 

 

14.31

%  

 

14.48

%  

 

13.98

%

 

14.31

%  

 

13.98

%

Tangible common equity to tangible assets (2)

 

 

9.08

%  

 

9.23

%  

 

8.84

%

 

9.08

%  

 

8.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Assets

 

$

17,562,990

 

$

17,441,035

 

$

13,765,599

 

$

17,562,990

 

$

13,765,599

 

Loans held for investment

 

 

12,610,936

 

 

12,306,997

 

 

9,716,207

 

 

12,610,936

 

 

9,716,207

 

Securities

 

 

2,631,437

 

 

2,607,748

 

 

2,391,695

 

 

2,631,437

 

 

2,391,695

 

Earning Assets

 

 

15,576,208

 

 

15,365,753

 

 

12,202,023

 

 

15,576,208

 

 

12,202,023

 

Goodwill

 

 

935,560

 

 

929,815

 

 

727,168

 

 

935,560

 

 

727,168

 

Amortizable intangibles, net

 

 

73,669

 

 

78,241

 

 

48,685

 

 

73,669

 

 

48,685

 

Deposits

 

 

13,304,981

 

 

13,044,712

 

 

9,970,960

 

 

13,304,981

 

 

9,970,960

 

Borrowings

 

 

1,513,748

 

 

1,549,181

 

 

1,756,278

 

 

1,513,748

 

 

1,756,278

 

Stockholders' equity

 

 

2,513,102

 

 

2,525,031

 

 

1,924,581

 

 

2,513,102

 

 

1,924,581

 

Tangible common equity (2)

 

 

1,503,873

 

 

1,516,975

 

 

1,148,728

 

 

1,503,873

 

 

1,148,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment, net of deferred fees and costs

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Construction and land development

 

$

1,250,924

 

$

1,201,149

 

$

1,194,821

 

$

1,250,924

 

$

1,194,821

 

Commercial real estate - owner occupied

 

 

2,041,243

 

 

1,979,052

 

 

1,337,345

 

 

2,041,243

 

 

1,337,345

 

Commercial real estate - non-owner occupied

 

 

3,286,098

 

 

3,198,580

 

 

2,467,410

 

 

3,286,098

 

 

2,467,410

 

Multifamily real estate

 

 

633,743

 

 

659,946

 

 

548,231

 

 

633,743

 

 

548,231

 

Commercial & Industrial

 

 

2,114,033

 

 

2,058,133

 

 

1,317,135

 

 

2,114,033

 

 

1,317,135

 

Residential 1-4 Family - Commercial

 

 

724,337

 

 

721,185

 

 

640,419

 

 

724,337

 

 

640,419

 

Residential 1-4 Family - Consumer

 

 

890,503

 

 

913,245

 

 

673,909

 

 

890,503

 

 

673,909

 

Residential 1-4 Family - Revolving

 

 

659,504

 

 

660,963

 

 

613,383

 

 

659,504

 

 

613,383

 

Auto

 

 

350,419

 

 

328,456

 

 

301,943

 

 

350,419

 

 

301,943

 

Consumer

 

 

372,853

 

 

386,848

 

 

379,694

 

 

372,853

 

 

379,694

 

Other Commercial

 

 

287,279

 

 

199,440

 

 

241,917

 

 

287,279

 

 

241,917

 

Total loans held for investment

 

$

12,610,936

 

$

12,306,997

 

$

9,716,207

 

$

12,610,936

 

$

9,716,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

NOW accounts

 

$

2,905,713

 

$

2,515,777

 

$

2,288,523

 

$

2,905,713

 

$

2,288,523

 

Money market accounts

 

 

3,951,856

 

 

3,737,426

 

 

2,875,301

 

 

3,951,856

 

 

2,875,301

 

Savings accounts

 

 

727,847

 

 

739,505

 

 

622,823

 

 

727,847

 

 

622,823

 

Time deposits of $250,000 and over

 

 

684,797

 

 

717,090

 

 

292,224

 

 

684,797

 

 

292,224

 

Other time deposits

 

 

2,064,628

 

 

2,179,740

 

 

1,797,482

 

 

2,064,628

 

 

1,797,482

 

Time deposits

 

 

2,749,425

 

 

2,896,830

 

 

2,089,706

 

 

2,749,425

 

 

2,089,706

 

Total interest-bearing deposits

 

$

10,334,841

 

$

9,889,538

 

$

7,876,353

 

$

10,334,841

 

$

7,876,353

 

Demand deposits

 

 

2,970,140

 

 

3,155,174

 

 

2,094,607

 

 

2,970,140

 

 

2,094,607

 

Total deposits

 

$

13,304,981

 

$

13,044,712

 

$

9,970,960

 

$

13,304,981

 

$

9,970,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Assets

 

$

17,437,552

 

$

17,203,328

 

$

13,538,160

 

$

16,840,310

 

$

13,181,609

 

Loans held for investment

 

 

12,327,692

 

 

12,240,254

 

 

9,557,160

 

 

11,949,171

 

 

9,584,785

 

Loans held for sale

 

 

75,038

 

 

75,558

 

 

 —

 

 

53,390

 

 

21,085

 

Securities

 

 

2,608,942

 

 

2,660,270

 

 

2,340,051

 

 

2,663,184

 

 

1,877,018

 

Earning assets

 

 

15,418,605

 

 

15,191,792

 

 

11,961,234

 

 

14,881,142

 

 

11,620,893

 

Deposits

 

 

13,302,955

 

 

12,812,211

 

 

9,951,983

 

 

12,515,552

 

 

9,717,663

 

Time deposits

 

 

2,847,366

 

 

2,769,574

 

 

2,083,270

 

 

2,627,987

 

 

2,078,073

 

Interest-bearing deposits

 

 

10,265,986

 

 

9,803,624

 

 

7,789,642

 

 

9,624,396

 

 

7,617,174

 

Borrowings

 

 

1,369,035

 

 

1,623,681

 

 

1,575,173

 

 

1,656,426

 

 

1,489,542

 

Interest-bearing liabilities

 

 

11,635,021

 

 

11,427,305

 

 

9,364,815

 

 

11,280,822

 

 

9,106,716

 

Stockholders' equity

 

 

2,515,303

 

 

2,528,435

 

 

1,899,249

 

 

2,451,435

 

 

1,863,216

 

Tangible common equity (2)

 

 

1,509,001

 

 

1,517,400

 

 

1,121,788

 

 

1,459,509

 

 

1,086,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

    

12/31/19

    

09/30/19

    

12/31/18

 

12/31/19

 

12/31/18

 

Asset Quality

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

Allowance for Loan Losses (ALL)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Beginning balance

 

$

43,820

 

$

42,463

 

$

41,294

 

$

41,045

 

$

38,208

 

Add: Recoveries

 

 

2,292

 

 

1,574

 

 

1,086

 

 

7,232

 

 

5,168

 

Less: Charge-offs

 

 

6,918

 

 

9,317

 

 

6,131

 

 

28,108

 

 

16,230

 

Add: Provision for loan losses

 

 

3,100

 

 

9,100

 

 

4,800

 

 

22,125

 

 

14,084

 

Add: Provision for loan losses included in discontinued operations

 

 

 —

 

 

 —

 

 

(4)

 

 

 —

 

 

(185)

 

Ending balance

 

$

42,294

 

$

43,820

 

$

41,045

 

$

42,294

 

$

41,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALL / total outstanding loans

 

 

0.34

%  

 

0.36

%  

 

0.42

%

 

0.34

%  

 

0.42

%

Net charge-offs / total average loans

 

 

0.15

%  

 

0.25

%  

 

0.21

%

 

0.17

%  

 

0.12

%

Provision / total average loans

 

 

0.10

%  

 

0.29

%  

 

0.20

%

 

0.19

%  

 

0.15

%

 

`

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total PCI loans, net of fair value mark

 

$

86,681

 

$

89,735

 

$

90,221

 

$

86,681

 

$

90,221

 

Remaining fair value mark on purchased performing loans

 

 

50,067

 

 

54,067

 

 

30,281

 

 

50,067

 

 

30,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Construction and land development

 

$

3,703

 

$

7,785

 

$

8,018

 

$

3,703

 

$

8,018

 

Commercial real estate - owner occupied

 

 

6,003

 

 

5,684

 

 

3,636

 

 

6,003

 

 

3,636

 

Commercial real estate - non-owner occupied

 

 

381

 

 

381

 

 

1,789

 

 

381

 

 

1,789

 

Commercial & Industrial

 

 

1,735

 

 

1,585

 

 

1,524

 

 

1,735

 

 

1,524

 

Residential 1-4 Family - Commercial

 

 

4,301

 

 

3,879

 

 

2,481

 

 

4,301

 

 

2,481

 

Residential 1-4 Family - Consumer

 

 

9,292

 

 

8,292

 

 

7,276

 

 

9,292

 

 

7,276

 

Residential 1-4 Family - Revolving

 

 

2,080

 

 

1,641

 

 

1,518

 

 

2,080

 

 

1,518

 

Auto

 

 

563

 

 

604

 

 

576

 

 

563

 

 

576

 

Consumer and all other

 

 

174

 

 

181

 

 

135

 

 

174

 

 

135

 

Nonaccrual loans

 

$

28,232

 

$

30,032

 

$

26,953

 

$

28,232

 

$

26,953

 

Foreclosed property

 

 

4,708

 

 

6,385

 

 

6,722

 

 

4,708

 

 

6,722

 

Total nonperforming assets (NPAs)

 

$

32,940

 

$

36,417

 

$

33,675

 

$

32,940

 

$

33,675

 

Construction and land development

 

$

189

 

$

171

 

$

180

 

$

189

 

$

180

 

Commercial real estate - owner occupied

 

 

1,062

 

 

2,571

 

 

3,193

 

 

1,062

 

 

3,193

 

Commercial real estate - non-owner occupied

 

 

1,451

 

 

36

 

 

 —

 

 

1,451

 

 

 —

 

Multifamily real estate

 

 

474

 

 

1,212

 

 

 —

 

 

474

 

 

 —

 

Commercial & Industrial

 

 

449

 

 

265

 

 

132

 

 

449

 

 

132

 

Residential 1-4 Family - Commercial

 

 

674

 

 

916

 

 

1,409

 

 

674

 

 

1,409

 

Residential 1-4 Family - Consumer

 

 

4,515

 

 

3,815

 

 

2,437

 

 

4,515

 

 

2,437

 

Residential 1-4 Family - Revolving

 

 

3,357

 

 

1,674

 

 

440

 

 

3,357

 

 

440

 

Auto

 

 

272

 

 

183

 

 

195

 

 

272

 

 

195

 

Consumer and all other

 

 

953

 

 

1,193

 

 

870

 

 

953

 

 

870

 

Loans ≥ 90 days and still accruing

 

$

13,396

 

$

12,036

 

$

8,856

 

$

13,396

 

$

8,856

 

Total NPAs and loans ≥ 90 days

 

$

46,336

 

$

48,453

 

$

42,531

 

$

46,336

 

$

42,531

 

NPAs / total outstanding loans

 

 

0.26

%  

 

0.30

%  

 

0.35

%

 

0.26

%  

 

0.35

%

NPAs / total assets

 

 

0.19

%  

 

0.21

%  

 

0.24

%

 

0.19

%  

 

0.24

%

ALL / nonaccrual loans

 

 

149.81

%  

 

145.91

%  

 

152.28

%

 

149.81

%  

 

152.28

%

ALL / nonperforming assets

 

 

128.40

%  

 

120.33

%  

 

121.89

%

 

128.40

%  

 

121.89

%

Past Due Detail

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Construction and land development

 

$

4,563

 

$

1,062

 

$

759

 

$

4,563

 

$

759

 

Commercial real estate - owner occupied

 

 

3,482

 

 

4,977

 

 

8,755

 

 

3,482

 

 

8,755

 

Commercial real estate - non-owner occupied

 

 

457

 

 

5,757

 

 

338

 

 

457

 

 

338

 

Multifamily real estate

 

 

223

 

 

107

 

 

 —

 

 

223

 

 

 —

 

Commercial & Industrial

 

 

8,698

 

 

2,079

 

 

3,353

 

 

8,698

 

 

3,353

 

Residential 1-4 Family - Commercial

 

 

1,479

 

 

1,842

 

 

6,619

 

 

1,479

 

 

6,619

 

Residential 1-4 Family - Consumer

 

 

16,244

 

 

1,527

 

 

12,049

 

 

16,244

 

 

12,049

 

Residential 1-4 Family - Revolving

 

 

10,190

 

 

4,965

 

 

4,611

 

 

10,190

 

 

4,611

 

Auto

 

 

2,525

 

 

1,787

 

 

3,320

 

 

2,525

 

 

3,320

 

Consumer and all other

 

 

2,592

 

 

2,579

 

 

1,630

 

 

2,592

 

 

1,630

 

Loans 30-59 days past due

 

$

50,453

 

$

26,682

 

$

41,434

 

$

50,453

 

$

41,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

    

12/31/19

    

09/30/19

    

12/31/18

 

12/31/19

 

12/31/18

 

Past Due Detail cont'd

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

Construction and land development

 

$

482

 

$

351

 

$

 6

 

$

482

 

$

 6

 

Commercial real estate - owner occupied

 

 

2,184

 

 

 —

 

 

1,142

 

 

2,184

 

 

1,142

 

Commercial real estate - non-owner occupied

 

 

 —

 

 

1,878

 

 

41

 

 

 —

 

 

41

 

Multifamily real estate

 

 

 —

 

 

164

 

 

146

 

 

 —

 

 

146

 

Commercial & Industrial

 

 

1,598

 

 

1,946

 

 

389

 

 

1,598

 

 

389

 

Residential 1-4 Family - Commercial

 

 

2,207

 

 

3,081

 

 

1,577

 

 

2,207

 

 

1,577

 

Residential 1-4 Family - Consumer

 

 

3,072

 

 

5,182

 

 

5,143

 

 

3,072

 

 

5,143

 

Residential 1-4 Family - Revolving

 

 

1,784

 

 

1,747

 

 

1,644

 

 

1,784

 

 

1,644

 

Auto

 

 

236

 

 

407

 

 

403

 

 

236

 

 

403

 

Consumer and all other

 

 

1,233

 

 

1,675

 

 

1,096

 

 

1,233

 

 

1,096

 

Loans 60-89 days past due

 

$

12,796

 

$

16,431

 

$

11,587

 

$

12,796

 

$

11,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled Debt Restructurings

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Performing

 

$

15,686

 

$

15,156

 

$

19,201

 

$

15,686

 

$

19,201

 

Nonperforming

 

 

3,810

 

 

3,582

 

 

7,397

 

 

3,810

 

 

7,397

 

Total troubled debt restructurings

 

$

19,496

 

$

18,738

 

$

26,598

 

$

19,496

 

$

26,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net interest income (FTE)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net interest income (GAAP)

 

$

135,130

 

$

136,601

 

$

109,089

 

$

537,872

 

$

426,691

 

FTE adjustment

 

 

2,657

 

 

2,804

 

 

2,335

 

 

11,121

 

 

8,193

 

Net interest income (FTE) (non-GAAP) (1)

 

$

137,787

 

$

139,405

 

$

111,424

 

$

548,993

 

$

434,884

 

Average earning assets

 

 

15,418,605

 

 

15,191,792

 

 

11,961,234

 

 

14,881,142

 

 

11,620,893

 

Net interest margin

 

 

3.48

%  

 

3.57

%  

 

3.62

%

 

3.61

%  

 

3.67

%

Net interest margin (FTE) (1)

 

 

3.55

%  

 

3.64

%  

 

3.70

%

 

3.69

%  

 

3.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Ending assets (GAAP)

 

$

17,562,990

 

$

17,441,035

 

$

13,765,599

 

$

17,562,990

 

$

13,765,599

 

Less: Ending goodwill

 

 

935,560

 

 

929,815

 

 

727,168

 

 

935,560

 

 

727,168

 

Less: Ending amortizable intangibles

 

 

73,669

 

 

78,241

 

 

48,685

 

 

73,669

 

 

48,685

 

Ending tangible assets (non-GAAP)

 

$

16,553,761

 

$

16,432,979

 

$

12,989,746

 

$

16,553,761

 

$

12,989,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Ending equity (GAAP)

 

$

2,513,102

 

$

2,525,031

 

$

1,924,581

 

$

2,513,102

 

$

1,924,581

 

Less: Ending goodwill

 

 

935,560

 

 

929,815

 

 

727,168

 

 

935,560

 

 

727,168

 

Less: Ending amortizable intangibles

 

 

73,669

 

 

78,241

 

 

48,685

 

 

73,669

 

 

48,685

 

Ending tangible common equity (non-GAAP)

 

$

1,503,873

 

$

1,516,975

 

$

1,148,728

 

$

1,503,873

 

$

1,148,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,515,303

 

$

2,528,435

 

$

1,899,249

 

$

2,451,435

 

$

1,863,216

 

Less: Average goodwill

 

 

930,457

 

 

930,525

 

 

727,544

 

 

912,521

 

 

725,597

 

Less: Average amortizable intangibles

 

 

75,845

 

 

80,510

 

 

49,917

 

 

79,405

 

 

51,347

 

Average tangible common equity (non-GAAP)

 

$

1,509,001

 

$

1,517,400

 

$

1,121,788

 

$

1,459,509

 

$

1,086,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Net income (GAAP)

 

$

55,836

 

$

53,238

 

$

44,085

 

$

193,528

 

$

146,248

 

Plus: Merger and rebranding-related costs, net of tax

 

 

1,422

 

 

2,819

 

 

2,163

 

 

27,395

 

 

32,065

 

Net operating earnings (non-GAAP)

 

$

57,258

 

$

56,057

 

$

46,248

 

$

220,923

 

$

178,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

94,318

 

$

111,687

 

$

74,533

 

$

418,340

 

$

337,767

 

Less: Merger Related Costs

 

 

896

 

 

2,435

 

 

2,314

 

 

27,824

 

 

39,728

 

Less: Rebranding Costs

 

 

902

 

 

1,133

 

 

 —

 

 

6,455

 

 

 —

 

Less: Amortization of intangible assets

 

 

4,603

 

 

4,764

 

 

2,954

 

 

18,521

 

 

12,839

 

Operating noninterest expense (non-GAAP)

 

$

87,917

 

$

103,355

 

$

69,265

 

$

365,540

 

$

285,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (non-GAAP) (1)

 

$

137,787

 

$

139,405

 

$

111,424

 

$

548,993

 

$

434,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

29,193

 

 

48,106

 

 

23,487

 

 

132,815

 

 

104,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

57.40

%  

 

60.47

%  

 

56.22

%

 

62.37

%  

 

63.62

%

Operating efficiency ratio (FTE)(6)

 

 

52.65

%  

 

55.12

%  

 

51.34

%

 

53.61

%  

 

52.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

  

12/31/19

   

09/30/19

  

12/31/18

  

12/31/19

  

12/31/18

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

Operating ROTCE (2)(3)

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Operating Net Income (non-GAAP)

 

$

57,258

 

$

56,057

 

$

46,248

 

$

220,923

 

$

178,313

 

Plus: Amortization of intangibles, tax effected

 

 

3,636

 

 

3,764

 

 

2,334

 

 

14,632

 

 

10,143

 

Net Income before amortization of intangibles (non-GAAP)

 

$

60,894

 

$

59,821

 

$

48,582

 

$

235,555

 

$

188,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

 

$

1,509,001

 

$

1,517,400

 

$

1,121,788

 

$

1,459,509

 

$

1,086,272

 

Operating return on average tangible common equity (non-GAAP)

 

 

16.01

%  

 

15.64

%  

 

17.18

%

 

16.14

%  

 

17.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Volume

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Refinance Volume

 

$

50,555

 

$

62,230

 

$

 —

 

$

152,624

 

$

35,599

 

Construction Volume

 

 

14,571

 

 

3,915

 

 

 —

 

 

18,846

 

 

13,867

 

Purchase Volume

 

 

63,836

 

 

78,113

 

 

 —

 

 

258,282

 

 

43,082

 

Total Mortgage loan originations

 

$

128,962

 

$

144,258

 

$

 —

 

$

429,752

 

$

92,548

 

% of originations that are refinances

 

 

39.2

%  

 

43.1

%  

 

0.00

%

 

35.5

%  

 

38.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Assets under management ("AUM")

 

$

5,650,757

 

$

5,451,796

 

$

3,379,340

 

$

5,650,757

 

$

3,379,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

End of period full-time employees

 

 

1,989

 

 

1,946

 

 

1,609

 

 

1,989

 

 

1,609

 

Number of full-service branches

 

 

149

 

 

149

 

 

140

 

 

149

 

 

140

 

Number of full automatic transaction machines ("ATMs")

 

 

169

 

 

169

 

 

188

 

 

169

 

 

188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)

These are non-GAAP financial measures. Net interest income (FTE), which is used in computing net interest margin (FTE) and operating efficiency ratio (FTE), provides valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.

(2)

These are non-GAAP financial measures. Tangible common equity is used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.

(3)

These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.

In periods prior to December 31, 2018, the Company has not added amortization of intangibles, tax effected to operating net income (non-GAAP) when calculating operating ROTCE. The Company has adjusted its presentation for all periods in this release.

(4)

These are non-GAAP financial measures. Operating measures exclude merger and rebranding-related costs unrelated to the Company’s normal operations. The Company believes these measures are useful to investors as they exclude certain costs resulting from acquisition activity and allow investors to more clearly see the combined economic results of the organization’s operations.

(5)

All ratios at December 31, 2019 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed.

(6)

The operating efficiency ratio (FTE) excludes the amortization of intangible assets and merger-related costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this measure is useful to investors as it excludes certain costs resulting from acquisition activity allowing for greater comparability with others in the industry and allowing investors to more clearly see the combined economic results of the organization’s operations.

In prior periods, the Company has not excluded the amortization of intangibles from noninterest expense when calculating the operating efficiency ratio (FTE). The Company has adjusted its presentation for all periods in this release to exclude the amortization of intangibles from noninterest expense.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

2019

 

2019

    

2018

ASSETS

 

(unaudited)

 

 

(unaudited)

 

 

(audited)

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash and due from banks

$

163,050

 

$

218,584

 

$

166,927

Interest-bearing deposits in other banks

 

234,810

 

 

370,673

 

 

94,056

Federal funds sold

 

38,172

 

 

2,663

 

 

216

Total cash and cash equivalents

 

436,032

 

 

591,920

 

 

261,199

Securities available for sale, at fair value

 

1,945,445

 

 

1,918,859

 

 

1,774,821

Securities held to maturity, at carrying value

 

555,144

 

 

556,579

 

 

492,272

Restricted stock, at cost

 

130,848

 

 

132,310

 

 

124,602

Loans held for sale, at fair value

 

55,405

 

 

72,208

 

 

 —

Loans held for investment, net of deferred fees and costs

 

12,610,936

 

 

12,306,997

 

 

9,716,207

Less allowance for loan losses

 

42,294

 

 

43,820

 

 

41,045

Total loans held for investment, net

 

12,568,642

 

 

12,263,177

 

 

9,675,162

Premises and equipment, net

 

161,073

 

 

168,122

 

 

146,967

Goodwill

 

935,560

 

 

929,815

 

 

727,168

Amortizable intangibles, net

 

73,669

 

 

78,241

 

 

48,685

Bank owned life insurance

 

322,917

 

 

320,779

 

 

263,034

Other assets

 

377,587

 

 

408,162

 

 

250,210

Assets of discontinued operations

 

668

 

 

863

 

 

1,479

Total assets

$

17,562,990

 

$

17,441,035

 

$

13,765,599

LIABILITIES

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

2,970,139

 

$

3,155,174

 

$

2,094,607

Interest-bearing deposits

 

10,334,842

 

 

9,889,538

 

 

7,876,353

Total deposits

 

13,304,981

 

 

13,044,712

 

 

9,970,960

Securities sold under agreements to repurchase

 

66,053

 

 

67,260

 

 

39,197

Other short-term borrowings

 

370,200

 

 

344,600

 

 

1,048,600

Long-term borrowings

 

1,077,495

 

 

1,137,321

 

 

668,481

Other liabilities

 

230,519

 

 

321,348

 

 

112,093

Liabilities of discontinued operations

 

640

 

 

763

 

 

1,687

Total liabilities

 

15,049,888

 

 

14,916,004

 

 

11,841,018

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, $1.33 par value, shares authorized of 200,000,000 at both December 31, 2019 and September 30, 2019, and 100,000,000 at December 31, 2018, respectively; shares issued and outstanding of 80,001,185 at December 31, 2019, 81,147,896 at September 30, 2019, and 65,977,149 at December 31, 2018.

 

105,827

 

 

107,330

 

 

87,250

Additional paid-in capital

 

1,790,305

 

 

1,831,667

 

 

1,380,259

Retained earnings

 

581,395

 

 

545,665

 

 

467,345

Accumulated other comprehensive income (loss)

 

35,575

 

 

40,369

 

 

(10,273)

Total stockholders' equity

 

2,513,102

 

 

2,525,031

 

 

1,924,581

Total liabilities and stockholders' equity

$

17,562,990

 

$

17,441,035

 

$

13,765,599

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME 

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2019

    

2019

    

2018

    

2019

    

2018

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Audited)

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

152,513

 

$

156,651

 

$

121,846

 

$

612,115

 

$

469,856

Interest on deposits in other banks

 

1,686

 

 

1,030

 

 

309

 

 

3,733

 

 

2,125

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

12,378

 

 

12,625

 

 

11,623

 

 

51,437

 

 

36,851

Nontaxable

 

7,634

 

 

8,039

 

 

6,858

 

 

32,047

 

 

19,956

Total interest and dividend income

 

174,211

 

 

178,345

 

 

140,636

 

 

699,332

 

 

528,788

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

30,884

 

 

30,849

 

 

19,149

 

 

114,972

 

 

59,336

Interest on short-term borrowings

 

1,166

 

 

2,200

 

 

5,663

 

 

15,479

 

 

18,458

Interest on long-term borrowings

 

7,031

 

 

8,695

 

 

6,735

 

 

31,009

 

 

24,303

Total interest expense

 

39,081

 

 

41,744

 

 

31,547

 

 

161,460

 

 

102,097

Net interest income

 

135,130

 

 

136,601

 

 

109,089

 

 

537,872

 

 

426,691

Provision for credit losses

 

2,900

 

 

9,100

 

 

4,725

 

 

21,092

 

 

13,736

Net interest income after provision for credit losses

 

132,230

 

 

127,501

 

 

104,364

 

 

516,780

 

 

412,955

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

7,871

 

 

7,675

 

 

6,873

 

 

30,202

 

 

25,439

Other service charges and fees

 

1,544

 

 

1,513

 

 

1,467

 

 

6,423

 

 

5,603

Interchange fees, net

 

1,854

 

 

2,108

 

 

4,640

 

 

14,619

 

 

18,803

Fiduciary and asset management fees

 

6,531

 

 

6,082

 

 

4,643

 

 

23,365

 

 

16,150

Mortgage banking income, net

 

2,689

 

 

3,374

 

 

 —

 

 

10,303

 

 

 —

Gains (losses) on securities transactions, net

 

369

 

 

7,104

 

 

161

 

 

7,675

 

 

383

Bank owned life insurance income

 

2,119

 

 

2,062

 

 

2,072

 

 

8,311

 

 

7,198

Loan-related interest rate swap fees, net

 

3,470

 

 

5,480

 

 

1,376

 

 

14,126

 

 

3,554

Gain on Shore Premier sale

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

19,966

Other operating income

 

2,746

 

 

12,708

 

 

2,255

 

 

17,791

 

 

7,145

Total noninterest income

 

29,193

 

 

48,106

 

 

23,487

 

 

132,815

 

 

104,241

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

47,233

 

 

49,718

 

 

38,581

 

 

195,349

 

 

159,378

Occupancy expenses

 

7,366

 

 

7,493

 

 

6,590

 

 

29,793

 

 

25,368

Furniture and equipment expenses

 

3,559

 

 

3,719

 

 

2,967

 

 

14,216

 

 

11,991

Printing, postage, and supplies

 

1,293

 

 

1,268

 

 

1,125

 

 

5,056

 

 

4,650

Technology and data processing

 

6,483

 

 

5,787

 

 

4,675

 

 

23,686

 

 

18,397

Professional services

 

3,636

 

 

2,681

 

 

2,183

 

 

11,905

 

 

10,283

Marketing and advertising expense

 

3,675

 

 

2,600

 

 

2,211

 

 

11,566

 

 

10,043

FDIC assessment premiums and other insurance

 

1,254

 

 

381

 

 

1,214

 

 

6,874

 

 

6,644

Other taxes

 

3,970

 

 

3,971

 

 

2,882

 

 

15,749

 

 

11,542

Loan-related expenses

 

2,793

 

 

2,566

 

 

2,109

 

 

10,043

 

 

7,206

OREO and credit-related expenses

 

1,547

 

 

1,005

 

 

1,026

 

 

4,708

 

 

4,131

Amortization of intangible assets

 

4,603

 

 

4,764

 

 

2,954

 

 

18,521

 

 

12,839

Training and other personnel costs

 

2,136

 

 

1,618

 

 

1,104

 

 

6,376

 

 

4,259

Merger-related costs

 

896

 

 

2,435

 

 

2,314

 

 

27,824

 

 

39,728

Rebranding expense

 

902

 

 

1,133

 

 

 —

 

 

6,455

 

 

 —

Loss on debt extinguishment

 

 —

 

 

16,397

 

 

 —

 

 

16,397

 

 

 —

Other expenses

 

2,972

 

 

4,151

 

 

2,598

 

 

13,822

 

 

11,308

Total noninterest expenses

 

94,318

 

 

111,687

 

 

74,533

 

 

418,340

 

 

337,767

Income from continuing operations before income taxes

 

67,105

 

 

63,920

 

 

53,318

 

 

231,255

 

 

179,429

Income tax expense

 

11,227

 

 

10,724

 

 

9,041

 

 

37,557

 

 

30,016

Income from continuing operations

$

55,878

 

$

53,196

 

$

44,277

 

$

193,698

 

$

149,413

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Income (loss) from operations of discontinued mortgage
segment

$

(56)

 

$

56

 

$

(509)

 

$

(230)

 

$

(4,280)

       Income tax expense (benefit)

 

(14)

 

 

14

 

 

(317)

 

 

(60)

 

 

(1,115)

Income (loss) on discontinued operations

 

(42)

 

 

42

 

 

(192)

 

 

(170)

 

 

(3,165)

Net income

 

55,836

 

 

53,238

 

 

44,085

 

 

193,528

 

 

146,248

Basic earnings per common share

$

0.69

 

$

0.65

 

$

0.67

 

$

2.41

 

$

2.22

Diluted earnings per common share

$

0.69

 

$

0.65

 

$

0.67

 

$

2.41

 

$

2.22

 

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

December 31, 2019

 

September 30, 2019

 

Average
Balance

    

Interest
Income /
Expense
(1)

    

Yield /
Rate 
(1)(2)

    

Average
Balance

    

Interest
Income /
Expense
(1)

    

Yield /
Rate 
(1)(2)

 

(unaudited)

 

 

(unaudited)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

1,666,082

 

$

12,378

 

2.95%

 

$

1,670,270

 

$

12,625

 

3.00%

Tax-exempt

 

942,860

 

 

9,663

 

4.07%

 

 

990,000

 

 

10,181

 

4.08%

Total securities

 

2,608,942

 

 

22,041

 

3.35%

 

 

2,660,270

 

 

22,806

 

3.40%

Loans, net (3) (4)

 

12,327,692

 

 

152,345

 

4.90%

 

 

12,240,254

 

 

156,471

 

5.07%

Other earning assets

 

481,971

 

 

2,482

 

2.04%

 

 

291,268

 

 

1,872

 

2.55%

Total earning assets

 

15,418,605

 

$

176,868

 

4.55%

 

 

15,191,792

 

$

181,149

 

4.73%

Allowance for loan losses

 

(44,739)

 

 

 

 

 

 

 

(46,229)

 

 

 

 

 

Total non-earning assets

 

2,063,686

 

 

 

 

 

 

 

2,057,765

 

 

 

 

 

Total assets

$

17,437,552

 

 

 

 

 

 

$

17,203,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction and money market accounts

$

6,683,093

 

$

16,042

 

0.95%

 

$

6,290,112

 

$

16,389

 

1.03%

Regular savings

 

735,527

 

 

190

 

0.10%

 

 

743,938

 

 

266

 

0.14%

Time deposits (5)

 

2,847,366

 

 

14,652

 

2.04%

 

 

2,769,574

 

 

14,194

 

2.03%

Total interest-bearing deposits

 

10,265,986

 

 

30,884

 

1.19%

 

 

9,803,624

 

 

30,849

 

1.25%

Other borrowings (6)

 

1,369,035

 

 

8,197

 

2.38%

 

 

1,623,681

 

 

10,895

 

2.66%

Total interest-bearing liabilities

 

11,635,021

 

 

39,081

 

1.33%

 

 

11,427,305

 

$

41,744

 

1.45%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

3,036,969

 

 

 

 

 

 

 

3,008,587

 

 

 

 

 

Other liabilities

 

250,259

 

 

 

 

 

 

 

239,001

 

 

 

 

 

Total liabilities

 

14,922,249

 

 

 

 

 

 

 

14,674,893

 

 

 

 

 

Stockholders' equity

 

2,515,303

 

 

 

 

 

 

 

2,528,435

 

 

 

 

 

Total liabilities and stockholders' equity

$

17,437,552

 

 

 

 

 

 

$

17,203,328

 

 

 

 

 

Net interest income

 

 

 

$

137,787

 

 

 

 

 

 

$

139,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

3.22%

 

 

 

 

 

 

 

3.28%

Cost of funds

 

 

 

 

 

 

1.00%

 

 

 

 

 

 

 

1.09%

Net interest margin

 

 

 

 

 

 

3.55%

 

 

 

 

 

 

 

3.64%

(1)

Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.

(2)

Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.

(3)

Nonaccrual loans are included in average loans outstanding.

(4)

Interest income on loans includes $6.6 million and $5.0 million for the three months ended December  31, 2019 and September 30, 2019, respectively, in accretion of the fair market value adjustments related to acquisitions.

(5)

Interest expense on time deposits includes $148,000 and $179,000 for the three months ended December  31, 2019 and September 30, 2019, respectively, in accretion of the fair market value adjustments related to acquisitions.

(6)

Interest expense on borrowings includes $123,000 and $97,000 for the three months ended December 31, 2019 and September 30, 2019, in amortization of the fair market value adjustments related to acquisitions.

 

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Document and Entity Information
Jan. 21, 2020
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Jan. 21, 2020
Entity File Number 0-20293
Entity Registrant Name ATLANTIC UNION BANKSHARES CORPORATION
Entity Incorporation, State or Country Code VA
Entity Tax Identification Number 54-1598552
Entity Address, Address Line One 1051 East Cary Street
Entity Address, Adress Line Two Suite 1200
Entity Address, State or Province VA
Entity Address, City or Town Richmond
Entity Address, Postal Zip Code 23219
City Area Code (804)
Local Phone Number 633-5031
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $1.33 per share
Trading Symbol AUB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000883948
Amendment Flag false

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