Atlantic Union Bankshares Corporation (the “Company” or “Atlantic
Union”) (Nasdaq: AUB) today reported net income available to common
shareholders of $56.5 million and basic and diluted earnings per
common share of $0.72 for the fourth quarter ended December
31, 2020. Adjusted operating earnings available to common
shareholders(1) were $72.9 million, diluted operating earnings per
common share(1) were $0.93, and pre-tax pre-provision adjusted
operating earnings(1) were $77.0 million for the fourth quarter
ended December 31, 2020.
Net income available to common shareholders was $152.6 million
and basic and diluted earnings per common share were $1.93 for the
twelve months ended December 31, 2020. Adjusted operating earnings
available to common shareholders(1) were $168.8 million, diluted
operating earnings per common share(1) were $2.14, and pre-tax
pre-provision adjusted operating earnings(1) were $294.0 million,
for the twelve months ended December 31, 2020.
“Despite the continued economic disruption caused by the
pandemic in 2020, Atlantic Union delivered solid financial results
in the fourth quarter and for the full year while demonstrating the
flexibility and agility needed for success,” said John C. Asbury,
president and chief executive officer of Atlantic Union. “Operating
under the mantra of soundness, profitability and growth – in that
order of priority - Atlantic Union remains in a strong financial
position with ample liquidity and a well-fortified capital
base.
“Our conservative credit culture is serving us well as we help
our clients weather the storm. While we continue to face near-term
uncertainty, as a result of benign credit quality metrics to date
and a more optimistic economic outlook due to the roll-out of
COVID-19 vaccines and additional government stimulus inclusive of
more PPP funding, we are more confident that credit losses will not
be as severe as initially feared.
“Looking forward, we are optimistic that the challenges of
COVID-19 will ease as 2021 progresses and that Atlantic Union will
emerge as a stronger company that is well positioned to generate
sustainable, profitable growth and build long term value for our
shareholders.”
Small Business Administration (“SBA”) Paycheck
Protection Program (“PPP”)
During 2020, the Company participated in the SBA PPP under the
Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which
was intended to provide economic relief to small businesses that
have been adversely impacted by the COVID-19 global pandemic
(“COVID-19”). The Company processed over 11,000 PPP loans pursuant
to the CARES Act, which totaled $1.7 billion with a recorded
investment of $1.2 billion and unamortized deferred fees of $17.6
million, each as of December 31, 2020. The loans carry a 1%
interest rate. In addition to an insignificant amount of PPP loan
pay offs, the Company processed approximately $429.3 million of
loan forgiveness on approximately 3,100 PPP loans during the fourth
quarter of 2020.
Certain provisions of the CARES Act, including additional PPP
funding, were extended as a result of the Consolidated
Appropriations Act, 2021 (the “CAA”), which was signed into law on
December 27, 2020. The Company began accepting applications on
January 19, 2021 for additional PPP loans pursuant to the CAA.
_________________________
(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 ResultsExpense
Reduction Measures
During 2020, the Company launched several initiatives to reduce
expenses in light of the current and expected operating
environment, including the consolidation of certain branch
locations.
The Company completed the consolidation of 14 branches in
September 2020 and one branch in December 2020, and five branches
are expected to be consolidated in February 2021. These actions
resulted in expenses of approximately $6.8 million for the twelve
months ended December 31, 2020 with approximately $3.4 million
recognized in the second quarter of 2020, approximately $2.6
million in the third quarter of 2020 and approximately $790,000 in
the fourth quarter of 2020, primarily related to lease termination
costs, severance costs and real estate write-downs.
Additionally, in response to the current rate environment, the
Company prepaid certain long-term Federal Home Loan Bank (“FHLB”)
advances, which resulted in a prepayment penalty of $20.8 million
in the fourth quarter of 2020.
NET INTEREST INCOME
For the fourth quarter of 2020, net interest income was $145.6
million, an increase from $137.4 million reported in the third
quarter of 2020. Net interest income (FTE)(1) was $148.7
million in the fourth quarter of 2020, an increase of $8.4 million
from the third quarter of 2020. The fourth quarter net interest
margin increased 17 basis points to 3.25% from 3.08% in the
previous quarter, while the net interest margin (FTE)(1)
increased 18 basis points to 3.32% from 3.14% during the same
period. The increases in the net interest margin and net interest
margin (FTE) were principally due to the increase in PPP loan
accretion to $15.0 million in the fourth quarter of 2020 from $9.9
million in the third quarter of 2020 driven by PPP loan forgiveness
approved by the SBA during the fourth quarter.
The Company’s net interest margin (FTE) includes the impact of
acquisition accounting fair value adjustments. Net accretion
related to acquisition accounting increased $702,000 from the prior
quarter to $4.4 million for the quarter ended December
31, 2020. The four quarters of 2020, 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 March 31, 2020 |
$ |
9,528 |
|
50 |
|
|
|
(138 |
) |
|
$ |
9,440 |
For the quarter ended
June 30, 2020 |
|
6,443 |
|
34 |
|
|
|
(140 |
) |
|
|
6,337 |
For the quarter ended
September 30, 2020 |
|
3,814 |
|
26 |
|
|
|
(167 |
) |
|
|
3,673 |
For the quarter ended
December 31, 2020 |
|
4,541 |
|
22 |
|
|
|
(188 |
) |
|
|
4,375 |
For the years ending
(estimated): |
|
|
|
|
|
|
|
|
|
|
2021 |
|
8,625 |
|
14 |
|
|
|
(807 |
) |
|
|
7,832 |
2022 |
|
7,096 |
|
(43 |
) |
|
|
(829 |
) |
|
|
6,224 |
2023 |
|
5,213 |
|
(32 |
) |
|
|
(852 |
) |
|
|
4,329 |
2024 |
|
4,221 |
|
(4 |
) |
|
|
(877 |
) |
|
|
3,340 |
2025 |
|
3,160 |
|
(1 |
) |
|
|
(900 |
) |
|
|
2,259 |
Thereafter |
|
13,780 |
|
— |
|
|
|
(9,873 |
) |
|
|
3,907 |
Total remaining acquisition accounting fair value adjustments at
December 31, 2020 |
|
42,095 |
|
(66 |
) |
|
|
(14,138 |
) |
|
|
27,891 |
ASSET QUALITY
OverviewDuring the fourth quarter of 2020, the Company’s asset
quality metrics remained relatively stable. Nonperforming assets
(“NPAs”) as a percentage of loans increased slightly, but, remained
low at 0.32% at December 31, 2020. Accruing past due loan levels as
a percentage of total loans held for investment at December
31, 2020 remained consistent with a 1 basis point increase as
compared to September 30, 2020 and lower than accruing past due
loan levels at December 31, 2019. Net charge-off levels
remained low at 0.05% of average loans for the fourth quarter 2020,
which is a 1 basis point increase from the third quarter of 2020
and a 10 basis point decrease from the fourth quarter 2019.
_________________________
(1) These are financial measures not calculated in accordance
with GAAP. For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results
The allowance for credit losses (“ACL”) decreased from September
30, 2020 due to improvements in the macroeconomic outlook which
resulted in a decline in the provision for credit losses for the
fourth quarter of 2020, as compared to the third quarter of
2020.
Loan Modifications for Borrowers Affected by COVID-19On March
22, 2020, the five federal bank regulatory agencies and the
Conference of State Bank Supervisors issued jointguidance
(subsequently revised on April 7, 2020) with respect to loan
modifications for borrowers affected by COVID-19 (the “March 22
Joint Guidance”). The March 22 Joint Guidance encourages banks,
savings associations, and credit unions to make loan modifications
for borrowers affected by COVID-19 and, importantly, assures those
financial institutions that they will not (i) receive supervisory
criticism for such prudent loan modifications and (ii) be required
by examiners to automatically categorize COVID-19-related loan
modifications as TDRs. The federal banking regulators have
confirmed with the Financial Accounting Standards Board (or FASB)
that short-term loan modifications made on a good faith basis in
response to COVID-19 to borrowers who were current (i.e., less than
30 days past due on contractual payments) when the modification
program was implemented are not considered TDRs.
In addition, Section 4013 of the CARES Act, as amended by the
CAA, provides banks, savings associations, and credit unions with
the ability to make loan modifications related to COVID-19 without
categorizing the loan as a TDR or conducting the analysis to make
the determination, which is intended to streamline the loan
modification process. Any such suspension is effective for the term
of the loan modification; however, the suspension is only permitted
for loan modifications made during the effective period of Section
4013 and only for those loans that were not more than thirty days
past due as of December 31, 2019. The relief afforded by Section
4013 of the CARES Act, as amended by the CAA, is available to loans
modified between March 1, 2020 and the earlier of 60 days after the
date of termination of the COVID-19 national emergency and January
1, 2022.
The Company has made certain loan modifications pursuant to the
March 22 Joint Guidance and Section 4013 of the CARES Act (as
amended by the CAA), and as of December 31, 2020 approximately
$146.1 million remain under their modified terms, a decline of
$623.5 million as compared to September 30, 2020. The majority of
the Company’s modifications as of December 31, 2020 were in the
commercial real estate portfolios.
Nonperforming AssetsAt December 31, 2020, NPAs totaled
$45.2 million, an increase of $2.0 million from September 30, 2020.
NPAs as a percentage of total outstanding loans at December
31, 2020 were 0.32%, an increase of 2 basis points from 0.30%
at September 30, 2020. Excluding the impact of the PPP
loans(1), NPAs as a percentage of total outstanding loans were
0.35%, an increase of 1 basis point from September 30, 2020.
The Company’s adoption of current expected credit loss (“CECL”)
on January 1, 2020 resulted in a change in the accounting and
reporting related to purchased credit impaired (“PCI”) loans, which
are now defined as purchased credit deteriorated (“PCD”) and
evaluated at the loan level instead of being evaluated in pools
under PCI accounting. All prior period nonaccrual and
past due loan metrics discussed herein have not been restated for
CECL accounting and exclude PCI-related loan balances.
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, |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Nonaccrual loans |
$ |
42,448 |
|
$ |
39,023 |
|
$ |
39,624 |
|
$ |
44,022 |
|
$ |
28,232 |
Foreclosed properties |
|
2,773 |
|
|
4,159 |
|
|
4,397 |
|
|
4,444 |
|
|
4,708 |
Total nonperforming
assets |
$ |
45,221 |
|
$ |
43,182 |
|
$ |
44,021 |
|
$ |
48,466 |
|
$ |
32,940 |
_________________________
(1) These are financial measures not calculated in accordance
with GAAP. For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results
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, |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Beginning Balance |
$ |
39,023 |
|
|
$ |
39,624 |
|
|
$ |
44,022 |
|
|
$ |
28,232 |
|
|
$ |
30,032 |
|
Net customer payments |
|
(4,640 |
) |
|
|
(2,803 |
) |
|
|
(6,524 |
) |
|
|
(3,451 |
) |
|
|
(5,741 |
) |
Additions |
|
8,211 |
|
|
|
2,790 |
|
|
|
3,206 |
|
|
|
6,059 |
|
|
|
5,631 |
|
Impact of CECL adoption |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,381 |
|
|
|
— |
|
Charge-offs |
|
(146 |
) |
|
|
(588 |
) |
|
|
(1,088 |
) |
|
|
(1,199 |
) |
|
|
(1,690 |
) |
Loans returning to accruing status |
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
Ending Balance |
$ |
42,448 |
|
|
$ |
39,023 |
|
|
$ |
39,624 |
|
|
$ |
44,022 |
|
|
$ |
28,232 |
|
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, |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Beginning Balance |
$ |
4,159 |
|
|
$ |
4,397 |
|
|
$ |
4,444 |
|
|
$ |
4,708 |
|
|
$ |
6,385 |
|
Additions of foreclosed property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
615 |
|
|
|
62 |
|
Valuation adjustments |
|
(35 |
) |
|
|
— |
|
|
|
— |
|
|
|
(44 |
) |
|
|
(375 |
) |
Proceeds from sales |
|
(1,357 |
) |
|
|
(254 |
) |
|
|
(55 |
) |
|
|
(854 |
) |
|
|
(1,442 |
) |
Gains (losses) from sales |
|
6 |
|
|
|
16 |
|
|
|
8 |
|
|
|
19 |
|
|
|
78 |
|
Ending Balance |
$ |
2,773 |
|
|
$ |
4,159 |
|
|
$ |
4,397 |
|
|
$ |
4,444 |
|
|
$ |
4,708 |
|
Past Due LoansPast due loans still accruing interest totaled
$49.8 million or 0.36% of total loans held for investment at
December 31, 2020, compared to $50.9 million or 0.35% of total
loans held for investment at September 30, 2020, and $76.6 million
or 0.61% of total loans held for investment at December
31, 2019. Excluding the impact of the PPP loans(1), past due
loans still accruing interest were 0.39% of total adjusted loans
held for investment at December 31, 2020, compared to 0.40% of
total adjusted loans held for investment at September 30, 2020. Of
the total past due loans still accruing interest, $13.6 million or
0.10% of total loans held for investment were loans past due
90 days or more at December 31, 2020, compared to $15.7
million or 0.11% of total loans held for investment at September
30, 2020, and $13.4 million or 0.11% of total loans held for
investment at December 31, 2019.
Net Charge-offsFor the fourth quarter of 2020, net charge-offs
were $1.8 million or 0.05% of total average loans on an annualized
basis, compared to $1.4 million or 0.04% for the third quarter of
2020 and $4.6 million or 0.15% for the fourth quarter last year.
Excluding the impact of the PPP loans(1), net charge-offs were
0.06% of total adjusted average loans on an annualized basis,
compared to 0.04% for the third quarter of 2020. The majority of
net charge-offs in the fourth quarter of 2020 were related to the
third-party consumer loan portfolio.
For the year ended December 31, 2020, net charge-offs were $11.4
million or 0.08% of total average loans, compared to $20.9 million
or 0.17% for the year ended December 31, 2019. Excluding the impact
of the PPP loans(1), net charge-offs were 0.09% of total average
loans on an annualized basis, compared to 0.17% for the year ended
December 31, 2019. The majority of net charge-offs for the year
ended December 31, 2020 were related to the third-party consumer
loan portfolio.
Provision for Credit LossesThe provision for credit losses
decreased $20.4 million for the fourth quarter of 2020 compared to
the previous quarter and decreased $16.7 million compared to the
same quarter in 2019. The provision for credit losses for the
fourth quarter of 2020 reflected a negative provision of $11.8
million in provision for loan losses and a negative provision of
$2.0 million in provision for unfunded commitments. The decrease in
the provision for credit losses was driven by the improvement in
the economic forecast utilized in estimating the final allowance
for credit losses (“ACL”) as of December 31, 2020.
_________________________
(1) These are financial measures not calculated in accordance
with GAAP. For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results.
Allowance for Credit Losses At December 31, 2020, the ACL was
$170.5 million and included an allowance for loan and lease losses
(“ALLL”) of $160.5 million and a reserve for unfunded commitments
(“RUC”) of $10.0 million. The ACL decreased $15.6 million from
September 30, 2020, due to lower expected losses than
previously estimated as a result of improvements in Virginia’s
unemployment rate, benign credit quality metrics to date, and an
improved economic forecast due to the roll-out of COVID-19 vaccines
and additional government stimulus inclusive of more PPP
funding.
The ALLL decreased $13.6 million and the RUC decreased $2.0
million from September 30, 2020. The ALLL as a percentage of
the total loan portfolio was 1.14% at December 31, 2020 and
1.21% at September 30, 2020. The ACL as percentage of total
loans was 1.22% at December 31, 2020 and 1.29% at September 30,
2020. When excluding PPP loans(1), which are 100% guaranteed by the
SBA, the ALLL as a percentage of adjusted loans decreased 11 basis
points to 1.25% from the prior quarter and the ACL as a percentage
of adjusted loans decreased 13 basis points to 1.33% from the prior
quarter. The ratio of the ALLL to nonaccrual loans was 378.2% at
December 31, 2020, compared to 446.2% at September 30,
2020.
NONINTEREST INCOME
Noninterest income decreased $2.2 million to $32.2 million for
the quarter ended December 31, 2020 from $34.4 million in the
prior quarter, primarily driven by a decline in bank owned life
insurance income due to $1.4 million in death benefit proceeds
received during the third quarter of 2020, lower insurance related
income of approximately $530,000, reduced level of unrealized gains
of approximately $550,000 related to the Company’s SBIC
investments, and lower loan-related interest rate swap income of
$460,000 due to lower transaction volumes. These quarterly declines
were partially offset by increases in several other non-interest
income categories including an increase in service charges on
deposit accounts of $661,000, primarily due to higher NSF and
overdraft fees.
NONINTEREST EXPENSE
Noninterest expense increased $28.5 million to $121.7 million
for the quarter ended December 31, 2020 from $93.2 million in
the prior quarter, primarily driven by the recognition of an
approximately $20.8 million loss on debt extinguishment in the
fourth quarter, resulting from the prepayment of approximately
$350.0 million in long-term FHLB advances. In addition, during the
fourth quarter of 2020, there was an increase of approximately $8.6
million in salaries and benefits, driven primarily by performance
based variable incentive compensation and profit-sharing expenses
of $7.4 million, including a $1.2 million contribution to the
Company’s Employee Stock Ownership Plan (“ESOP”), as well as third
party expenses of approximately $716,000 incurred to process PPP
loans for SBA forgiveness. Other increases from the third quarter
of 2020 included approximately $883,000 in professional services
driven by higher consulting fees due to LIBOR transition and other
projects, and an increase in FDIC assessment premiums of
approximately $582,000, driven by the impact of lower PPP loan
balances on the Company’s assessment rate. Noninterest expense for
the fourth quarter of 2020 also included approximately $790,000 in
costs related to the Company’s plans to close five branches in
February 2021 and approximately $450,000 in costs related to the
Company’s response to the COVID-19 pandemic.
INCOME TAXES
The effective tax rate for the three months ended December
31, 2020 was 15.1% compared to 15.3% for the three months
ended September 30, 2020.
BALANCE SHEET
At December 31, 2020, total assets were $19.6 billion,
a decrease of $302.2 million or approximately 6.0% (annualized)
from September 30, 2020, and an increase of $2.1 billion or
approximately 11.8% from December 31, 2019. The decrease
in assets from the prior quarter was driven by PPP loan
forgiveness, partially offset by organic loan growth while growth
from the prior year was primarily a result of growth in both
organic and PPP loans.
_________________________
(1) These are financial measures not calculated in accordance
with GAAP. For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results.
At December 31, 2020, loans held for investment (net of deferred
fees and costs) were $14.0 billion, a decrease of $361.9 million or
10.0% (annualized) from September 30, 2020, while average loans
decreased $170.0 million or 4.7% (annualized), from the prior
quarter. Excluding the effects of the PPP(1), loans held for
investment (net of deferred fees and costs) increased $59.2
million, or 1.8% (annualized), while average loans increased $22.6
million, or 0.7% (annualized) during this period. Loans held for
investment (net of deferred fees and costs) increased $1.4 billion
or 11.2% from December 31, 2019, while quarterly average loans
increased $1.9 billion or 15.1% from the prior year. Excluding the
effects of the PPP(1), loans held for investment (net of deferred
fees and costs) at December 31, 2020 increased $230.9 million or
1.8% from the prior year, while quarterly average loans during the
fourth quarter of 2020 increased $415.4 million or 3.4% from the
prior year. In addition to an insignificant amount of PPP loan
payoffs, the Company processed $429.3 million of loan forgiveness
on approximately 3,100 PPP loans during the fourth quarter of
2020.
At December 31, 2020, total deposits were $15.7
billion, an increase of $146.7 million or approximately 3.7%
(annualized) from September 30, 2020, while average
deposits increased $315.7 million or 8.1% (annualized) from the
prior quarter. Deposits increased $2.4 billion or 18.2% from
December 31, 2019, while quarterly average deposits
increased $2.6 billion or 19.5% from the prior year. The increase
in deposits from the prior year was primarily due to the impact of
PPP loan related deposits and government stimulus.
The following table shows the Company’s capital ratios at the
quarters ended:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
Common equity Tier 1 capital
ratio (2) |
10.26 |
% |
|
10.05 |
% |
|
10.24 |
% |
Tier 1 capital ratio (2) |
11.39 |
% |
|
11.18 |
% |
|
10.24 |
% |
Total capital ratio (2) |
14.00 |
% |
|
13.93 |
% |
|
12.63 |
% |
Leverage ratio (Tier 1 capital
to average assets) (2) |
8.95 |
% |
|
8.82 |
% |
|
8.79 |
% |
Common equity to total
assets |
12.95 |
% |
|
12.52 |
% |
|
14.31 |
% |
Tangible common equity to
tangible assets (1) |
8.31 |
% |
|
7.91 |
% |
|
9.08 |
% |
_________________________
(1) These are financial measures not calculated
in accordance with GAAP. For a reconciliation of these non-GAAP
financial measures, see Alternative Performance Measures (non-GAAP)
section of the Key Financial Results.(2) All
ratios at December 31, 2020 are estimates and subject to
change pending the Company’s filing of its FR Y9-C. All other
periods are presented as filed.
On June 9, 2020, the Company issued and sold 6,900,000
depositary shares, each representing a 1/400th ownership interest
in a share of the Company’s 6.875% Perpetual Non-Cumulative
Preferred Stock, Series A (“Series A Preferred Stock”), par value
$10.00 per share of Series A Preferred Stock with a liquidation
preference of $10,000 per share of Series A Preferred Stock. The
net proceeds received from the issuance of the Series A Preferred
Stock was approximately $166.4 million after deducting the
underwriting discount and other offering expenses payable by the
Company. The Series A Preferred Stock is included in Tier 1
capital.
_________________________
(1) These are financial measures not calculated in accordance
with GAAP. For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results.
During the fourth quarter of 2020, the Company declared and paid
cash dividends of $0.25 per common share, consistent with the third
quarter of 2020 and the fourth quarter of 2019. During the fourth
quarter of 2020, the Company also declared and paid a quarterly
dividend on the outstanding shares of Series A Preferred Stock of
$171.88 per share (equivalent to $0.43 per outstanding depositary
share).
On July 10, 2019, the Company announced that its Board of
Directors had authorized a share repurchase program (effective July
8, 2019) to purchase up to $150 million of the Company’s common
stock through June 30, 2021 in open market transactions or
privately negotiated transactions. On March 20, 2020, the Company
suspended its share repurchase program, which had $20 million
remaining in the authorization when it was suspended. The Company
repurchased an aggregate of approximately 3.7 million shares, at an
average price of $35.48, per share under the authorization prior to
the suspension.
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 134 branches and approximately 155
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., and Dixon, Hubard,
Feinour, & Brown, Inc., which provide investment
advisory services; Middleburg Investment Services, LLC, which
provides brokerage services; and Union Insurance Group, LLC, which
offers various lines of insurance products.
FOURTH QUARTER AND FISCAL YEAR 2020 EARNINGS RELEASE
CONFERENCE CALL
The Company will hold a conference call and webcast for analysts
on Tuesday, January 26, 2021 at 9:00 a.m. Eastern Time during
which management will review the fourth quarter and fiscal year
2020 financial results and provide an update on recent activities.
Interested parties may participate in the call toll-free by dialing
(866) 2204170; international callers wishing to participate may do
so by dialing (864) 6635235. The conference ID number is 2886812.
Management will conduct a listen-only webcast with accompanying
slides, which can be found at:
https://edge.media-server.com/mmc/p/ze3ax9o8.
A replay of the webcast, and the accompanying slides, will be
available on the Company’s website for 90 days at:
https://investors.atlanticunionbank.com/.
NON-GAAP FINANCIAL MEASURES
In reporting the results of the quarter and fiscal year ended
December 31, 2020, the Company has provided supplemental
performance measures on a tax-equivalent, tangible, operating,
adjusted or pre-tax pre-provision 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, including without limitation, statements made in Mr.
Asbury’s quotes and statements regarding the Company’s planned
branch consolidations and statements regarding the impact of
additional PPP funding on the Company, are statements that include,
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, some of which
cannot be predicted or quantified, 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, including as
a result of COVID-19;
- the quality or composition of the loan or investment portfolios
and changes therein;
- demand for loan products and financial services in the
Company’s market area;
- the Company’s ability to manage its growth or implement its
growth strategy;
- the effectiveness of expense reduction plans;
- the introduction of new lines of business or new products and
services;
- 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 ACL;
- changes in accounting principles relating to loan loss
recognition (CECL);
- the Company’s liquidity and capital positions;
- 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;
- the Company’s ability to compete in the market for financial
services and increased competition relating to fintech;
- technological risks and developments, and cyber threats,
attacks, or events;
- the potential adverse effects of unusual and infrequently
occurring events, such as weather-related disasters, terrorist acts
or public health events (such as COVID-19), and of governmental and
societal responses thereto; these potential adverse effects may
include, without limitation, adverse effects on the ability of the
Company's borrowers to satisfy their obligations to the Company, on
the value of collateral securing loans, on the demand for the
Company's loans or its other products and services, on incidents of
cyberattack and fraud, on the Company’s liquidity or capital
positions, on risks posed by reliance on third-party service
providers, on other aspects of the Company's business operations
and on financial markets and economic growth;
- the effect of steps the Company takes in response to COVID-19,
the severity and duration of the pandemic, the speed and efficacy
of vaccine and treatment developments, the impact of loosening or
tightening of government restrictions, the pace of recovery when
the pandemic subsides and the heightened impact it has on many of
the risks described herein;
- 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, including
the impact of the CARES Act, as amended by the CAA, and other
legislative and regulatory reactions to COVID-19;
- potential claims, damages, and fines related to litigation or
government actions, including litigation or actions arising from
the Company’s participation in and administration of programs
related to COVID-19, including, among other things, the CARES Act,
as amended by the CAA;
- 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 10K for
the year ended December 31, 2019 and comparable
“Risk Factors” sections of the Company’s Quarterly Reports on
Form 10Q 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
SUBSIDIARIESKEY FINANCIAL RESULTS(Dollars
in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
Results of
Operations |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Interest and dividend income |
$ |
161,847 |
|
|
$ |
157,414 |
|
$ |
174,211 |
|
|
$ |
653,454 |
|
$ |
699,332 |
|
|
Interest expense |
|
16,243 |
|
|
|
20,033 |
|
|
39,081 |
|
|
|
98,156 |
|
|
161,460 |
|
|
Net interest income |
|
145,604 |
|
|
|
137,381 |
|
|
135,130 |
|
|
|
555,298 |
|
|
537,872 |
|
|
Provision for credit losses |
|
(13,813 |
) |
|
|
6,558 |
|
|
2,900 |
|
|
|
87,141 |
|
|
21,092 |
|
|
Net interest income after provision for credit losses |
|
159,417 |
|
|
|
130,823 |
|
|
132,230 |
|
|
|
468,157 |
|
|
516,780 |
|
|
Noninterest income |
|
32,241 |
|
|
|
34,407 |
|
|
29,193 |
|
|
|
131,486 |
|
|
132,815 |
|
|
Noninterest expenses |
|
121,668 |
|
|
|
93,222 |
|
|
94,318 |
|
|
|
413,349 |
|
|
418,340 |
|
|
Income before income taxes |
|
69,990 |
|
|
|
72,008 |
|
|
67,105 |
|
|
|
186,294 |
|
|
231,255 |
|
|
Income tax expense |
|
10,560 |
|
|
|
11,008 |
|
|
11,227 |
|
|
|
28,066 |
|
|
37,557 |
|
|
Income from continuing operations |
|
59,430 |
|
|
|
61,000 |
|
|
55,878 |
|
|
|
158,228 |
|
|
193,698 |
|
|
Discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
(42 |
) |
|
|
— |
|
|
(170 |
) |
|
Net income |
|
59,430 |
|
|
|
61,000 |
|
|
55,836 |
|
|
|
158,228 |
|
|
193,528 |
|
|
Dividends on preferred stock |
|
2,967 |
|
|
|
2,691 |
|
|
— |
|
|
|
5,658 |
|
|
— |
|
|
Net income available to common shareholders |
$ |
56,463 |
|
|
$ |
58,309 |
|
$ |
55,836 |
|
|
$ |
152,570 |
|
$ |
193,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earned on earning assets (FTE) (1) |
$ |
164,931 |
|
|
$ |
160,315 |
|
$ |
176,868 |
|
|
$ |
665,001 |
|
$ |
710,453 |
|
|
Net interest income (FTE) (1) |
|
148,688 |
|
|
|
140,282 |
|
|
137,787 |
|
|
|
566,845 |
|
|
548,993 |
|
|
Total revenue (FTE) (1) |
|
180,929 |
|
|
|
174,689 |
|
|
166,980 |
|
|
|
698,331 |
|
|
681,808 |
|
|
Pre-tax pre-provision operating earnings (8) |
|
76,987 |
|
|
|
78,548 |
|
|
71,392 |
|
|
|
294,026 |
|
|
295,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share, diluted |
$ |
0.72 |
|
|
$ |
0.74 |
|
$ |
0.69 |
|
|
$ |
1.93 |
|
$ |
2.41 |
|
|
Return on average assets (ROA) |
|
1.19 |
|
% |
|
1.23 |
% |
|
1.27 |
|
% |
|
0.83 |
% |
|
1.15 |
|
% |
Return on average equity (ROE) |
|
8.82 |
|
% |
|
9.16 |
% |
|
8.81 |
|
% |
|
6.14 |
% |
|
7.89 |
|
% |
Return on average tangible common equity (ROTCE) (2) (3) |
|
15.60 |
|
% |
|
16.49 |
% |
|
15.64 |
|
% |
|
11.18 |
% |
|
14.26 |
|
% |
Efficiency ratio |
|
68.41 |
|
% |
|
54.27 |
% |
|
57.40 |
|
% |
|
60.19 |
% |
|
62.37 |
|
% |
Net interest margin |
|
3.25 |
|
% |
|
3.08 |
% |
|
3.48 |
|
% |
|
3.26 |
% |
|
3.61 |
|
% |
Net interest margin (FTE) (1) |
|
3.32 |
|
% |
|
3.14 |
% |
|
3.55 |
|
% |
|
3.32 |
% |
|
3.69 |
|
% |
Yields on earning assets (FTE) (1) |
|
3.69 |
|
% |
|
3.59 |
% |
|
4.55 |
|
% |
|
3.90 |
% |
|
4.77 |
|
% |
Cost of interest-bearing liabilities |
|
0.52 |
|
% |
|
0.64 |
% |
|
1.33 |
|
% |
|
0.80 |
% |
|
1.43 |
|
% |
Cost of deposits |
|
0.30 |
|
% |
|
0.39 |
% |
|
0.92 |
|
% |
|
0.51 |
% |
|
0.92 |
|
% |
Cost of funds |
|
0.37 |
|
% |
|
0.45 |
% |
|
1.00 |
|
% |
|
0.58 |
% |
|
1.08 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Measures (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating earnings |
$ |
75,870 |
|
|
$ |
60,986 |
|
$ |
56,966 |
|
|
$ |
174,495 |
|
$ |
227,813 |
|
|
Adjusted operating earnings available to common shareholders |
|
72,903 |
|
|
|
58,295 |
|
|
56,966 |
|
|
|
168,837 |
|
|
227,813 |
|
|
Adjusted operating earnings per share, diluted |
$ |
0.93 |
|
|
$ |
0.74 |
|
$ |
0.71 |
|
|
$ |
2.14 |
|
$ |
2.84 |
|
|
Adjusted operating ROA |
|
1.52 |
|
% |
|
1.23 |
% |
|
1.30 |
|
% |
|
0.91 |
% |
|
1.35 |
|
% |
Adjusted operating ROE |
|
11.27 |
|
% |
|
9.16 |
% |
|
8.99 |
|
% |
|
6.77 |
% |
|
9.29 |
|
% |
Adjusted operating ROTCE (2) (3) |
|
19.91 |
|
% |
|
16.49 |
% |
|
15.93 |
|
% |
|
12.28 |
% |
|
16.61 |
|
% |
Adjusted operating efficiency ratio (FTE) (1)(7) |
|
53.59 |
|
% |
|
51.05 |
% |
|
52.77 |
|
% |
|
53.16 |
% |
|
51.79 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share, basic |
$ |
0.72 |
|
|
$ |
0.74 |
|
$ |
0.69 |
|
|
$ |
1.93 |
|
$ |
2.41 |
|
|
Earnings per common share, diluted |
|
0.72 |
|
|
|
0.74 |
|
|
0.69 |
|
|
|
1.93 |
|
|
2.41 |
|
|
Cash dividends paid per common share |
|
0.25 |
|
|
|
0.25 |
|
|
0.25 |
|
|
|
1.00 |
|
|
0.96 |
|
|
Market value per share |
|
32.94 |
|
|
|
21.37 |
|
|
37.55 |
|
|
|
32.94 |
|
|
37.55 |
|
|
Book value per common share |
|
32.46 |
|
|
|
31.86 |
|
|
31.58 |
|
|
|
32.46 |
|
|
31.58 |
|
|
Tangible book value per common share (2) |
|
19.78 |
|
|
|
19.13 |
|
|
18.90 |
|
|
|
19.78 |
|
|
18.90 |
|
|
Price to earnings ratio, diluted |
|
11.50 |
|
|
|
7.26 |
|
|
13.72 |
|
|
|
17.07 |
|
|
15.58 |
|
|
Price to book value per common share ratio |
|
1.01 |
|
|
|
0.67 |
|
|
1.19 |
|
|
|
1.01 |
|
|
1.19 |
|
|
Price to tangible book value per common share ratio (2) |
|
1.67 |
|
|
|
1.12 |
|
|
1.99 |
|
|
|
1.67 |
|
|
1.99 |
|
|
Weighted average common shares outstanding, basic |
|
78,721,530 |
|
|
|
78,714,353 |
|
|
80,439,007 |
|
|
|
78,858,726 |
|
|
80,200,950 |
|
|
Weighted average common shares outstanding, diluted |
|
78,740,351 |
|
|
|
78,725,346 |
|
|
80,502,269 |
|
|
|
78,875,668 |
|
|
80,263,557 |
|
|
Common shares outstanding at end of period |
|
78,729,212 |
|
|
|
78,718,850 |
|
|
80,001,185 |
|
|
|
78,729,212 |
|
|
80,001,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
Capital
Ratios |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Common equity Tier 1 capital ratio (5) |
|
10.26 |
% |
|
10.05 |
% |
|
10.24 |
% |
|
10.26 |
% |
|
10.24 |
% |
Tier 1 capital ratio (5) |
|
11.39 |
% |
|
11.18 |
% |
|
10.24 |
% |
|
11.39 |
% |
|
10.24 |
% |
Total capital ratio (5) |
|
14.00 |
% |
|
13.93 |
% |
|
12.63 |
% |
|
14.00 |
% |
|
12.63 |
% |
Leverage ratio (Tier 1 capital to average assets) (5) |
|
8.95 |
% |
|
8.82 |
% |
|
8.79 |
% |
|
8.95 |
% |
|
8.79 |
% |
Common equity to total assets |
|
12.95 |
% |
|
12.52 |
% |
|
14.31 |
% |
|
12.95 |
% |
|
14.31 |
% |
Tangible common equity to tangible assets (2) |
|
8.31 |
% |
|
7.91 |
% |
|
9.08 |
% |
|
8.31 |
% |
|
9.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Condition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,628,449 |
|
$ |
19,930,650 |
|
$ |
17,562,990 |
|
$ |
19,628,449 |
|
$ |
17,562,990 |
|
Loans held for investment |
|
14,021,314 |
|
|
14,383,215 |
|
|
12,610,936 |
|
|
14,021,314 |
|
|
12,610,936 |
|
Securities |
|
3,180,052 |
|
|
3,102,217 |
|
|
2,631,437 |
|
|
3,180,052 |
|
|
2,631,437 |
|
Earning Assets |
|
17,624,618 |
|
|
17,885,975 |
|
|
15,576,208 |
|
|
17,624,618 |
|
|
15,576,208 |
|
Goodwill |
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
Amortizable intangibles, net |
|
57,185 |
|
|
61,068 |
|
|
73,669 |
|
|
57,185 |
|
|
73,669 |
|
Deposits |
|
15,722,765 |
|
|
15,576,098 |
|
|
13,304,981 |
|
|
15,722,765 |
|
|
13,304,981 |
|
Borrowings |
|
840,717 |
|
|
1,314,322 |
|
|
1,513,748 |
|
|
840,717 |
|
|
1,513,748 |
|
Stockholders' equity |
|
2,708,490 |
|
|
2,660,885 |
|
|
2,513,102 |
|
|
2,708,490 |
|
|
2,513,102 |
|
Tangible common equity (2) |
|
1,549,388 |
|
|
1,497,900 |
|
|
1,503,873 |
|
|
1,549,388 |
|
|
1,503,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment, net of deferred fees and costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
925,798 |
|
$ |
1,207,190 |
|
$ |
1,250,924 |
|
$ |
925,798 |
|
$ |
1,250,924 |
|
Commercial real estate - owner occupied |
|
2,128,909 |
|
|
2,107,333 |
|
|
2,041,243 |
|
|
2,128,909 |
|
|
2,041,243 |
|
Commercial real estate - non-owner occupied |
|
3,657,562 |
|
|
3,497,929 |
|
|
3,286,098 |
|
|
3,657,562 |
|
|
3,286,098 |
|
Multifamily real estate |
|
814,745 |
|
|
731,582 |
|
|
633,743 |
|
|
814,745 |
|
|
633,743 |
|
Commercial & Industrial |
|
3,263,460 |
|
|
3,536,249 |
|
|
2,114,033 |
|
|
3,263,460 |
|
|
2,114,033 |
|
Residential 1-4 Family - Commercial |
|
671,949 |
|
|
696,944 |
|
|
724,337 |
|
|
671,949 |
|
|
724,337 |
|
Residential 1-4 Family - Consumer |
|
822,866 |
|
|
830,144 |
|
|
890,503 |
|
|
822,866 |
|
|
890,503 |
|
Residential 1-4 Family - Revolving |
|
596,996 |
|
|
618,320 |
|
|
659,504 |
|
|
596,996 |
|
|
659,504 |
|
Auto |
|
401,324 |
|
|
387,417 |
|
|
350,419 |
|
|
401,324 |
|
|
350,419 |
|
Consumer |
|
247,730 |
|
|
276,023 |
|
|
372,853 |
|
|
247,730 |
|
|
372,853 |
|
Other Commercial |
|
489,975 |
|
|
494,084 |
|
|
287,279 |
|
|
489,975 |
|
|
287,279 |
|
Total loans held for investment |
$ |
14,021,314 |
|
$ |
14,383,215 |
|
$ |
12,610,936 |
|
$ |
14,021,314 |
|
$ |
12,610,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
3,621,181 |
|
$ |
3,460,480 |
|
$ |
2,905,714 |
|
$ |
3,621,181 |
|
$ |
2,905,714 |
|
Money market accounts |
|
4,248,335 |
|
|
4,269,696 |
|
|
3,951,856 |
|
|
4,248,335 |
|
|
3,951,856 |
|
Savings accounts |
|
904,095 |
|
|
861,685 |
|
|
727,847 |
|
|
904,095 |
|
|
727,847 |
|
Time deposits of $250,000 and over |
|
654,224 |
|
|
633,252 |
|
|
684,797 |
|
|
654,224 |
|
|
684,797 |
|
Other time deposits |
|
1,926,227 |
|
|
1,930,320 |
|
|
2,064,628 |
|
|
1,926,227 |
|
|
2,064,628 |
|
Time deposits |
|
2,580,451 |
|
|
2,563,572 |
|
|
2,749,425 |
|
|
2,580,451 |
|
|
2,749,425 |
|
Total interest-bearing deposits |
$ |
11,354,062 |
|
$ |
11,155,433 |
|
$ |
10,334,842 |
|
$ |
11,354,062 |
|
$ |
10,334,842 |
|
Demand deposits |
|
4,368,703 |
|
|
4,420,665 |
|
|
2,970,139 |
|
|
4,368,703 |
|
|
2,970,139 |
|
Total deposits |
$ |
15,722,765 |
|
$ |
15,576,098 |
|
$ |
13,304,981 |
|
$ |
15,722,765 |
|
$ |
13,304,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Averages |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,817,318 |
|
$ |
19,785,167 |
|
$ |
17,437,552 |
|
$ |
19,083,853 |
|
$ |
16,840,310 |
|
Loans held for investment |
|
14,188,661 |
|
|
14,358,666 |
|
|
12,327,692 |
|
|
13,777,467 |
|
|
11,949,171 |
|
Loans held for sale |
|
59,312 |
|
|
45,201 |
|
|
75,038 |
|
|
53,016 |
|
|
53,390 |
|
Securities |
|
3,140,243 |
|
|
2,891,210 |
|
|
2,608,942 |
|
|
2,826,504 |
|
|
2,663,184 |
|
Earning assets |
|
17,801,490 |
|
|
17,748,152 |
|
|
15,418,605 |
|
|
17,058,795 |
|
|
14,881,142 |
|
Deposits |
|
15,896,149 |
|
|
15,580,469 |
|
|
13,302,955 |
|
|
14,950,295 |
|
|
12,515,552 |
|
Time deposits |
|
2,571,639 |
|
|
2,579,991 |
|
|
2,847,366 |
|
|
2,643,229 |
|
|
2,627,987 |
|
Interest-bearing deposits |
|
11,482,105 |
|
|
11,260,244 |
|
|
10,265,986 |
|
|
11,028,169 |
|
|
9,624,396 |
|
Borrowings |
|
891,699 |
|
|
1,183,839 |
|
|
1,369,035 |
|
|
1,215,676 |
|
|
1,656,426 |
|
Interest-bearing liabilities |
|
12,373,804 |
|
|
12,444,083 |
|
|
11,635,021 |
|
|
12,243,845 |
|
|
11,280,822 |
|
Stockholders' equity |
|
2,679,170 |
|
|
2,648,777 |
|
|
2,515,303 |
|
|
2,576,372 |
|
|
2,451,435 |
|
Tangible common equity (2) |
|
1,518,223 |
|
|
1,483,848 |
|
|
1,509,001 |
|
|
1,482,060 |
|
|
1,459,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
Asset
Quality |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Allowance for Credit Losses (ACL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, Allowance for loan and lease losses (ALLL) |
$ |
174,122 |
|
|
$ |
169,977 |
|
$ |
43,820 |
|
|
$ |
42,294 |
|
$ |
41,045 |
|
|
Add: Day 1 impact from adoption of CECL |
|
— |
|
|
|
— |
|
|
— |
|
|
|
47,484 |
|
|
— |
|
|
Add: Recoveries |
|
1,617 |
|
|
|
1,566 |
|
|
2,292 |
|
|
|
6,754 |
|
|
7,232 |
|
|
Less: Charge-offs |
|
3,386 |
|
|
|
2,978 |
|
|
6,918 |
|
|
|
18,193 |
|
|
28,108 |
|
|
Add: Provision for loan losses |
|
(11,813 |
) |
|
|
5,557 |
|
|
3,100 |
|
|
|
82,201 |
|
|
22,125 |
|
|
Ending balance, ALLL |
$ |
160,540 |
|
|
$ |
174,122 |
|
$ |
42,294 |
|
|
$ |
160,540 |
|
$ |
42,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, Reserve for unfunded commitment (RUC) |
$ |
12,000 |
|
|
$ |
11,000 |
|
$ |
1,100 |
|
|
|
900 |
|
|
900 |
|
|
Add: Day 1 impact from adoption of CECL |
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,160 |
|
|
— |
|
|
Add: Impact of acquisition accounting |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,033 |
|
|
Add: Provision for unfunded commitments |
|
(2,000 |
) |
|
|
1,000 |
|
|
(200 |
) |
|
|
4,940 |
|
|
(1,033 |
) |
|
Ending balance, RUC |
$ |
10,000 |
|
|
$ |
12,000 |
|
$ |
900 |
|
|
|
10,000 |
|
|
900 |
|
|
Total ACL |
$ |
170,540 |
|
|
$ |
186,122 |
|
$ |
43,194 |
|
|
$ |
170,540 |
|
$ |
43,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL / total outstanding loans |
|
1.22 |
|
% |
|
1.29 |
% |
|
0.34 |
|
% |
|
1.22 |
% |
|
0.34 |
|
% |
ACL / total adjusted loans(9) |
|
1.33 |
|
% |
|
1.46 |
% |
|
0.34 |
|
% |
|
1.33 |
% |
|
0.34 |
|
% |
ALLL / total outstanding loans |
|
1.14 |
|
% |
|
1.21 |
% |
|
0.34 |
|
% |
|
1.14 |
% |
|
0.34 |
|
% |
ALLL / total adjusted loans(9) |
|
1.25 |
|
% |
|
1.36 |
% |
|
0.34 |
|
% |
|
1.25 |
% |
|
0.34 |
|
% |
Net charge-offs / total average loans |
|
0.05 |
|
% |
|
0.04 |
% |
|
0.15 |
|
% |
|
0.08 |
% |
|
0.17 |
|
% |
Net charge-offs / total adjusted average loans(9) |
|
0.06 |
|
% |
|
0.04 |
% |
|
0.15 |
|
% |
|
0.09 |
% |
|
0.17 |
|
% |
Provision for loan losses/ total average loans |
|
(0.33 |
) |
% |
|
0.15 |
% |
|
0.10 |
|
% |
|
0.60 |
% |
|
0.19 |
|
% |
Provision for loan losses/ total adjusted average loans(9) |
|
(0.37 |
) |
% |
|
0.17 |
% |
|
0.10 |
|
% |
|
0.65 |
% |
|
0.19 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets(6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
3,072 |
|
|
$ |
3,520 |
|
$ |
3,703 |
|
|
$ |
3,072 |
|
$ |
3,703 |
|
|
Commercial real estate - owner occupied |
|
7,128 |
|
|
|
9,267 |
|
|
6,003 |
|
|
|
7,128 |
|
|
6,003 |
|
|
Commercial real estate - non-owner occupied |
|
2,317 |
|
|
|
1,992 |
|
|
381 |
|
|
|
2,317 |
|
|
381 |
|
|
Multifamily real estate |
|
33 |
|
|
|
33 |
|
|
— |
|
|
|
33 |
|
|
— |
|
|
Commercial & Industrial |
|
2,107 |
|
|
|
1,592 |
|
|
1,735 |
|
|
|
2,107 |
|
|
1,735 |
|
|
Residential 1-4 Family - Commercial |
|
9,993 |
|
|
|
5,743 |
|
|
4,301 |
|
|
|
9,993 |
|
|
4,301 |
|
|
Residential 1-4 Family - Consumer |
|
12,600 |
|
|
|
12,620 |
|
|
9,292 |
|
|
|
12,600 |
|
|
9,292 |
|
|
Residential 1-4 Family - Revolving |
|
4,629 |
|
|
|
3,664 |
|
|
2,080 |
|
|
|
4,629 |
|
|
2,080 |
|
|
Auto |
|
500 |
|
|
|
517 |
|
|
563 |
|
|
|
500 |
|
|
563 |
|
|
Consumer |
|
69 |
|
|
|
75 |
|
|
77 |
|
|
|
69 |
|
|
77 |
|
|
Other Commercial |
|
— |
|
|
|
— |
|
|
97 |
|
|
|
— |
|
|
97 |
|
|
Nonaccrual loans |
$ |
42,448 |
|
|
$ |
39,023 |
|
$ |
28,232 |
|
|
$ |
42,448 |
|
$ |
28,232 |
|
|
Foreclosed property |
|
2,773 |
|
|
|
4,159 |
|
|
4,708 |
|
|
|
2,773 |
|
|
4,708 |
|
|
Total nonperforming assets (NPAs) |
$ |
45,221 |
|
|
$ |
43,182 |
|
$ |
32,940 |
|
|
$ |
45,221 |
|
$ |
32,940 |
|
|
Construction and land development |
$ |
— |
|
|
$ |
93 |
|
$ |
189 |
|
|
$ |
— |
|
$ |
189 |
|
|
Commercial real estate - owner occupied |
|
3,727 |
|
|
|
1,726 |
|
|
1,062 |
|
|
|
3,727 |
|
|
1,062 |
|
|
Commercial real estate - non-owner occupied |
|
148 |
|
|
|
168 |
|
|
1,451 |
|
|
|
148 |
|
|
1,451 |
|
|
Multifamily real estate |
|
— |
|
|
|
359 |
|
|
474 |
|
|
|
— |
|
|
474 |
|
|
Commercial & Industrial |
|
1,114 |
|
|
|
604 |
|
|
449 |
|
|
|
1,114 |
|
|
449 |
|
|
Residential 1-4 Family - Commercial |
|
1,560 |
|
|
|
5,298 |
|
|
674 |
|
|
|
1,560 |
|
|
674 |
|
|
Residential 1-4 Family - Consumer |
|
5,699 |
|
|
|
4,495 |
|
|
4,515 |
|
|
|
5,699 |
|
|
4,515 |
|
|
Residential 1-4 Family - Revolving |
|
826 |
|
|
|
2,276 |
|
|
3,357 |
|
|
|
826 |
|
|
3,357 |
|
|
Auto |
|
166 |
|
|
|
315 |
|
|
272 |
|
|
|
166 |
|
|
272 |
|
|
Consumer |
|
394 |
|
|
|
327 |
|
|
953 |
|
|
|
394 |
|
|
953 |
|
|
Other Commercial |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Loans ≥ 90 days and still accruing |
$ |
13,634 |
|
|
$ |
15,661 |
|
$ |
13,396 |
|
|
$ |
13,634 |
|
$ |
13,396 |
|
|
Total NPAs and loans ≥ 90 days |
$ |
58,855 |
|
|
$ |
58,843 |
|
$ |
46,336 |
|
|
$ |
58,855 |
|
$ |
46,336 |
|
|
NPAs / total outstanding loans |
|
0.32 |
|
% |
|
0.30 |
% |
|
0.26 |
|
% |
|
0.32 |
% |
|
0.26 |
|
% |
NPAs / total adjusted loans(9) |
|
0.35 |
|
% |
|
0.34 |
% |
|
0.26 |
|
% |
|
0.35 |
% |
|
0.26 |
|
% |
NPAs / total assets |
|
0.23 |
|
% |
|
0.22 |
% |
|
0.19 |
|
% |
|
0.23 |
% |
|
0.19 |
|
% |
ALLL / nonaccrual loans |
|
378.20 |
|
% |
|
446.20 |
% |
|
149.81 |
|
% |
|
378.20 |
% |
|
149.81 |
|
% |
ALLL/ nonperforming assets |
|
355.01 |
|
% |
|
403.23 |
% |
|
128.40 |
|
% |
|
355.01 |
% |
|
128.40 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
Past Due Detail(6) |
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Construction and land development |
$ |
1,903 |
|
$ |
2,625 |
|
$ |
4,563 |
|
$ |
1,903 |
|
$ |
4,563 |
|
Commercial real estate - owner occupied |
|
1,870 |
|
|
4,924 |
|
|
3,482 |
|
|
1,870 |
|
|
3,482 |
|
Commercial real estate - non-owner occupied |
|
2,144 |
|
|
1,291 |
|
|
457 |
|
|
2,144 |
|
|
457 |
|
Multifamily real estate |
|
617 |
|
|
— |
|
|
223 |
|
|
617 |
|
|
223 |
|
Commercial & Industrial |
|
1,848 |
|
|
4,322 |
|
|
8,698 |
|
|
1,848 |
|
|
8,698 |
|
Residential 1-4 Family - Commercial |
|
2,227 |
|
|
1,236 |
|
|
1,479 |
|
|
2,227 |
|
|
1,479 |
|
Residential 1-4 Family - Consumer |
|
10,182 |
|
|
2,998 |
|
|
16,244 |
|
|
10,182 |
|
|
16,244 |
|
Residential 1-4 Family - Revolving |
|
2,975 |
|
|
2,669 |
|
|
10,190 |
|
|
2,975 |
|
|
10,190 |
|
Auto |
|
2,076 |
|
|
1,513 |
|
|
2,525 |
|
|
2,076 |
|
|
2,525 |
|
Consumer |
|
1,166 |
|
|
1,020 |
|
|
2,128 |
|
|
1,166 |
|
|
2,128 |
|
Other Commercial |
|
16 |
|
|
613 |
|
|
464 |
|
|
16 |
|
|
464 |
|
Loans 30-59 days past due |
$ |
27,024 |
|
$ |
23,211 |
|
$ |
50,453 |
|
$ |
27,024 |
|
$ |
50,453 |
|
Construction and land development |
$ |
547 |
|
$ |
223 |
|
$ |
482 |
|
$ |
547 |
|
$ |
482 |
|
Commercial real estate - owner occupied |
|
1,380 |
|
|
1,310 |
|
|
2,184 |
|
|
1,380 |
|
|
2,184 |
|
Commercial real estate - non-owner occupied |
|
1,721 |
|
|
1,371 |
|
|
— |
|
|
1,721 |
|
|
— |
|
Multifamily real estate |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial & Industrial |
|
1,190 |
|
|
1,448 |
|
|
1,598 |
|
|
1,190 |
|
|
1,598 |
|
Residential 1-4 Family - Commercial |
|
818 |
|
|
937 |
|
|
2,207 |
|
|
818 |
|
|
2,207 |
|
Residential 1-4 Family - Consumer |
|
1,533 |
|
|
3,976 |
|
|
3,072 |
|
|
1,533 |
|
|
3,072 |
|
Residential 1-4 Family - Revolving |
|
1,044 |
|
|
1,141 |
|
|
1,784 |
|
|
1,044 |
|
|
1,784 |
|
Auto |
|
376 |
|
|
453 |
|
|
236 |
|
|
376 |
|
|
236 |
|
Consumer |
|
550 |
|
|
772 |
|
|
1,233 |
|
|
550 |
|
|
1,233 |
|
Other Commercial |
|
— |
|
|
427 |
|
|
— |
|
|
— |
|
|
— |
|
Loans 60-89 days past due |
$ |
9,159 |
|
$ |
12,058 |
|
$ |
12,796 |
|
$ |
9,159 |
|
$ |
12,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due and still accruing |
$ |
49,817 |
|
$ |
50,930 |
|
$ |
76,645 |
|
$ |
49,817 |
|
$ |
76,645 |
|
Past Due and still accruing / total loans |
|
0.36 |
% |
|
0.35 |
% |
|
0.61 |
% |
|
0.36 |
% |
|
0.61 |
% |
Past Due and still accruing / total adjusted loans(9) |
|
0.39 |
% |
|
0.40 |
% |
|
0.61 |
% |
|
0.39 |
% |
|
0.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
$ |
13,961 |
|
$ |
14,515 |
|
$ |
15,686 |
|
$ |
13,961 |
|
$ |
15,686 |
|
Nonperforming |
|
6,655 |
|
|
7,045 |
|
|
3,810 |
|
|
6,655 |
|
|
3,810 |
|
Total troubled debt restructurings |
$ |
20,616 |
|
$ |
21,560 |
|
$ |
19,496 |
|
$ |
20,616 |
|
$ |
19,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternative
Performance Measures (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
145,604 |
|
$ |
137,381 |
|
$ |
135,130 |
|
$ |
555,298 |
|
$ |
537,872 |
|
FTE adjustment |
|
3,084 |
|
|
2,901 |
|
|
2,657 |
|
|
11,547 |
|
|
11,121 |
|
Net interest income (FTE) (non-GAAP) (1) |
$ |
148,688 |
|
$ |
140,282 |
|
$ |
137,787 |
|
$ |
566,845 |
|
$ |
548,993 |
|
Noninterest income (GAAP) |
|
32,241 |
|
|
34,407 |
|
|
29,193 |
|
|
131,486 |
|
|
132,815 |
|
Total revenue (FTE) (non-GAAP) (1) |
$ |
180,929 |
|
$ |
174,689 |
|
$ |
166,980 |
|
$ |
698,331 |
|
$ |
681,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
17,801,490 |
|
$ |
17,748,152 |
|
$ |
15,418,605 |
|
$ |
17,058,795 |
|
$ |
14,881,142 |
|
Net interest margin |
|
3.25 |
% |
|
3.08 |
% |
|
3.48 |
% |
|
3.26 |
% |
|
3.61 |
% |
Net interest margin (FTE) (1) |
|
3.32 |
% |
|
3.14 |
% |
|
3.55 |
% |
|
3.32 |
% |
|
3.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending assets (GAAP) |
$ |
19,628,449 |
|
$ |
19,930,650 |
|
$ |
17,562,990 |
|
$ |
19,628,449 |
|
$ |
17,562,990 |
|
Less: Ending goodwill |
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
Less: Ending amortizable intangibles |
|
57,185 |
|
|
61,068 |
|
|
73,669 |
|
|
57,185 |
|
|
73,669 |
|
Ending tangible assets (non-GAAP) |
$ |
18,635,704 |
|
$ |
18,934,022 |
|
$ |
16,553,761 |
|
$ |
18,635,704 |
|
$ |
16,553,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending equity (GAAP) |
$ |
2,708,490 |
|
$ |
2,660,885 |
|
$ |
2,513,102 |
|
$ |
2,708,490 |
|
$ |
2,513,102 |
|
Less: Ending goodwill |
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
Less: Ending amortizable intangibles |
|
57,185 |
|
|
61,068 |
|
|
73,669 |
|
|
57,185 |
|
|
73,669 |
|
Less: Perpetual preferred stock |
|
166,357 |
|
|
166,357 |
|
|
— |
|
|
166,357 |
|
|
— |
|
Ending tangible common equity (non-GAAP) |
$ |
1,549,388 |
|
$ |
1,497,900 |
|
$ |
1,503,873 |
|
$ |
1,549,388 |
|
$ |
1,503,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity (GAAP) |
$ |
2,679,170 |
|
$ |
2,648,777 |
|
$ |
2,515,303 |
|
$ |
2,576,372 |
|
$ |
2,451,435 |
|
Less: Average goodwill |
|
935,560 |
|
|
935,560 |
|
|
930,457 |
|
|
935,560 |
|
|
912,521 |
|
Less: Average amortizable intangibles |
|
59,031 |
|
|
63,016 |
|
|
75,845 |
|
|
65,094 |
|
|
79,405 |
|
Less: Average perpetual preferred stock |
|
166,356 |
|
|
166,353 |
|
|
- |
|
|
93,658 |
|
|
- |
|
Average tangible common equity (non-GAAP) |
$ |
1,518,223 |
|
$ |
1,483,848 |
|
$ |
1,509,001 |
|
$ |
1,482,060 |
|
$ |
1,459,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROTCE (2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders (GAAP) |
$ |
56,463 |
|
$ |
58,309 |
|
$ |
55,836 |
|
$ |
152,570 |
|
$ |
193,528 |
|
Plus: Amortization of intangibles, tax effected |
|
3,079 |
|
|
3,202 |
|
|
3,636 |
|
|
13,093 |
|
|
14,632 |
|
Net income available to common shareholders before amortization of
intangibles (non-GAAP) |
$ |
59,542 |
|
$ |
61,511 |
|
$ |
59,472 |
|
$ |
165,663 |
|
$ |
208,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity (ROTCE) (2) (3) |
|
15.60 |
% |
|
16.49 |
% |
|
15.64 |
% |
|
11.18 |
% |
|
14.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Operating Measures (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
59,430 |
|
|
$ |
61,000 |
|
$ |
55,836 |
|
$ |
158,228 |
|
|
$ |
193,528 |
|
Plus: Merger and rebranding-related costs, net of tax |
|
— |
|
|
|
— |
|
|
1,422 |
|
|
— |
|
|
|
27,395 |
|
Plus: Net loss related to balance sheet repositioning, net of
tax |
|
16,440 |
|
|
|
— |
|
|
— |
|
|
25,979 |
|
|
|
12,953 |
|
Less: Gain on sale of securities, net of tax |
|
— |
|
|
|
14 |
|
|
292 |
|
|
9,712 |
|
|
|
6,063 |
|
Adjusted operating earnings (non-GAAP) |
|
75,870 |
|
|
|
60,986 |
|
|
56,966 |
|
|
174,495 |
|
|
|
227,813 |
|
Less: Dividends on preferred stock |
|
2,967 |
|
|
|
2,691 |
|
|
— |
|
|
5,658 |
|
|
|
— |
|
Adjusted operating earnings available to common shareholders
(non-GAAP) |
$ |
72,903 |
|
|
$ |
58,295 |
|
$ |
56,966 |
|
$ |
168,837 |
|
|
$ |
227,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
121,668 |
|
|
$ |
93,222 |
|
$ |
94,318 |
|
$ |
413,349 |
|
|
$ |
418,340 |
|
Less: Merger Related Costs |
|
— |
|
|
|
— |
|
|
896 |
|
|
— |
|
|
|
27,824 |
|
Less: Rebranding Costs |
|
— |
|
|
|
— |
|
|
902 |
|
|
— |
|
|
|
6,455 |
|
Less: Amortization of intangible assets |
|
3,897 |
|
|
|
4,053 |
|
|
4,603 |
|
|
16,574 |
|
|
|
18,521 |
|
Less: Losses related to balance sheet repositioning |
|
20,810 |
|
|
|
— |
|
|
— |
|
|
31,116 |
|
|
|
16,397 |
|
Adjusted operating noninterest expense (non-GAAP) |
$ |
96,961 |
|
|
$ |
89,169 |
|
$ |
87,917 |
|
$ |
365,659 |
|
|
$ |
349,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
$ |
32,241 |
|
|
$ |
34,407 |
|
$ |
29,193 |
|
$ |
131,486 |
|
|
$ |
132,815 |
|
Less: Gains related to balance sheet repositioning |
|
— |
|
|
|
— |
|
|
— |
|
|
(1,769 |
) |
|
|
— |
|
Less: Gain on sale of securities |
|
— |
|
|
|
18 |
|
|
369 |
|
|
12,294 |
|
|
|
7,675 |
|
Operating noninterest income (non-GAAP) |
$ |
32,241 |
|
|
$ |
34,389 |
|
$ |
28,824 |
|
$ |
120,961 |
|
|
$ |
125,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE) (non-GAAP) (1) |
$ |
148,688 |
|
|
$ |
140,282 |
|
$ |
137,787 |
|
$ |
566,845 |
|
|
$ |
548,993 |
|
Operating noninterest income (non-GAAP) |
|
32,241 |
|
|
|
34,389 |
|
|
28,824 |
|
|
120,961 |
|
|
|
125,140 |
|
Total adjusted revenue (FTE) (non-GAAP) (1) |
$ |
180,929 |
|
|
$ |
174,671 |
|
$ |
166,611 |
|
$ |
687,806 |
|
|
$ |
674,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
68.41 |
|
% |
|
54.27 |
% |
|
57.40 |
% |
|
60.19 |
|
% |
|
62.37 |
% |
Adjusted operating efficiency ratio (FTE) (1)(7) |
|
53.59 |
|
% |
|
51.05 |
% |
|
52.77 |
% |
|
53.16 |
|
% |
|
51.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ROTCE (2)(3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating earnings available to common shareholders
(non-GAAP) |
$ |
72,903 |
|
|
$ |
58,295 |
|
$ |
56,966 |
|
$ |
168,837 |
|
|
$ |
227,813 |
|
Plus: Amortization of intangibles, tax effected |
|
3,079 |
|
|
|
3,202 |
|
|
3,636 |
|
|
13,093 |
|
|
|
14,632 |
|
Adjusted operating earnings available to common shareholders before
amortization of intangibles (non-GAAP) |
$ |
75,982 |
|
|
$ |
61,497 |
|
$ |
60,602 |
|
$ |
181,930 |
|
|
$ |
242,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible common equity (non-GAAP) |
$ |
1,518,223 |
|
|
$ |
1,483,848 |
|
$ |
1,509,001 |
|
$ |
1,482,060 |
|
|
$ |
1,459,509 |
|
Adjusted operating return on average tangible common equity
(non-GAAP) |
|
19.91 |
|
% |
|
16.49 |
% |
|
15.93 |
% |
|
12.28 |
|
% |
|
16.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision adjusted operating earnings
(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
59,430 |
|
|
$ |
61,000 |
|
$ |
55,836 |
|
$ |
158,228 |
|
|
$ |
193,528 |
|
Plus: Provision for credit losses |
|
(13,813 |
) |
|
|
6,558 |
|
|
2,900 |
|
|
87,141 |
|
|
|
21,092 |
|
Plus: Income tax expense |
|
10,560 |
|
|
|
11,008 |
|
|
11,227 |
|
|
28,066 |
|
|
|
37,557 |
|
Plus: Merger and rebranding-related costs |
|
— |
|
|
|
— |
|
|
1,798 |
|
|
— |
|
|
|
34,279 |
|
Plus: Net loss related to balance sheet repositioning |
|
20,810 |
|
|
|
— |
|
|
— |
|
|
32,885 |
|
|
|
16,397 |
|
Less: Gain on sale of securities |
|
— |
|
|
|
18 |
|
|
369 |
|
|
12,294 |
|
|
|
7,675 |
|
Pre-tax pre-provision adjusted operating earnings (non-GAAP) |
$ |
76,987 |
|
|
$ |
78,548 |
|
$ |
71,392 |
|
$ |
294,026 |
|
|
$ |
295,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, diluted |
|
78,740,351 |
|
|
|
78,725,346 |
|
|
80,502,269 |
|
|
78,875,668 |
|
|
|
80,263,557 |
|
Pre-tax pre-provision earnings per share, diluted |
$ |
0.98 |
|
|
$ |
1.00 |
|
$ |
0.89 |
|
$ |
3.73 |
|
|
$ |
3.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paycheck Protection Program adjustment impact
(9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment (net of deferred fees and
costs)(GAAP) |
$ |
14,021,314 |
|
|
$ |
14,383,215 |
|
$ |
12,610,936 |
|
$ |
14,021,314 |
|
|
$ |
12,610,936 |
|
Less: PPP adjustments |
|
1,179,522 |
|
|
|
1,600,577 |
|
|
— |
|
|
1,179,522 |
|
|
|
— |
|
Loans held for investment (net of deferred fees and costs),net
adjustments, excluding PPP (non-GAAP) |
$ |
12,841,792 |
|
|
$ |
12,782,638 |
|
$ |
12,610,936 |
|
$ |
12,841,792 |
|
|
$ |
12,610,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for investment (GAAP) |
$ |
14,188,661 |
|
|
$ |
14,358,666 |
|
$ |
12,327,692 |
|
$ |
13,777,467 |
|
|
$ |
11,949,171 |
|
Less: Average PPP adjustments |
|
1,445,602 |
|
|
|
1,638,204 |
|
|
— |
|
|
1,091,921 |
|
|
|
— |
|
Average loans held for investment, net adjustments, excluding PPP
(non-GAAP) |
$ |
12,743,059 |
|
|
$ |
12,720,462 |
|
$ |
12,327,692 |
|
$ |
12,685,546 |
|
|
$ |
11,949,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of & For Three Months Ended |
|
As of & For Year Ended |
|
|
12/31/20 |
|
09/30/20 |
|
12/31/19 |
|
12/31/20 |
|
12/31/19 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
Mortgage Origination Volume |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinance Volume |
$ |
165,042 |
|
$ |
145,718 |
|
$ |
50,555 |
|
$ |
542,880 |
|
$ |
152,624 |
|
Construction Volume |
|
— |
|
|
6,448 |
|
|
14,571 |
|
|
27,251 |
|
|
18,846 |
|
Purchase Volume |
|
83,214 |
|
|
130,185 |
|
|
63,836 |
|
|
361,138 |
|
|
258,282 |
|
Total Mortgage loan originations |
$ |
248,256 |
|
$ |
282,351 |
|
$ |
128,962 |
|
$ |
931,269 |
|
$ |
429,752 |
|
% of originations that are refinances |
|
66.5 |
% |
|
51.6 |
% |
|
39.2 |
% |
|
58.3 |
% |
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under management ("AUM") |
$ |
5,865,264 |
|
$ |
5,455,268 |
|
$ |
5,650,757 |
|
$ |
5,865,264 |
|
$ |
5,650,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period full-time employees |
|
1,879 |
|
|
1,883 |
|
|
1,989 |
|
|
1,879 |
|
|
1,989 |
|
Number of full-service branches |
|
134 |
|
|
135 |
|
|
149 |
|
|
134 |
|
|
149 |
|
Number of full automatic transaction machines ("ATMs") |
|
156 |
|
|
157 |
|
|
169 |
|
|
156 |
|
|
169 |
|
_________________________
(1) These are non-GAAP financial measures. Net
interest income (FTE) and total adjusted revenue (FTE), which are
used in computing net interest margin (FTE) and adjusted operating
efficiency ratio (FTE), respectively, provide 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.(4) These are non-GAAP financial
measures. Adjusted operating measures exclude the after-tax effect
of merger and rebranding-related costs unrelated to the Company’s
normal operations. In addition, adjusted operating measures now
exclude the gains or losses related to balance sheet repositioning
(principally composed of gains and losses on debt extinguishment)
and gains or losses on sale of securities. The Company believes
these non-GAAP adjusted measures provide investors with important
information about the combined economic results of the
organization’s operations. (5) All ratios at
December 31, 2020 are estimates and subject to change pending the
Company’s filing of its FR Y9C. All other periods are presented as
filed.(6) Amounts are not directly comparable due
to the Company’s adoption of CECL on January 1, 2020. Prior to
January 1, 2020, nonaccrual and past due loan information excluded
PCI-related loan balances. These balances also reflect the impact
of the CARES Act and March 22 Joint Guidance, which provides relief
for TDR designations and also provides guidance on past due
reporting for modified loans. (7) The adjusted
operating efficiency ratio (FTE) excludes the amortization of
intangible assets, merger and rebranding-related costs and gains or
losses related to balance sheet repositioning (principally composed
of gains and losses on debt extinguishment). 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 adjusted
measure provides investors with important information about the
combined economic results of the organization’s operations.
(8) This is a non-GAAP financial measure. Pre-tax
pre-provision adjusted earnings excludes the provision for credit
losses, which can fluctuate significantly from period-to-period
under the recently adopted CECL methodology, merger and
rebranding-related costs, income tax expense, gains or losses
related to balance sheet repositioning (principally composed of
gains and losses on debt extinguishment), and gains or losses on
sale of securities. The Company believes this adjusted measure
provides investors with important information about the combined
economic results of the organization’s operations.
(9) These are non-GAAP financial measures. PPP
adjustment impact excludes the SBA guaranteed loans funded during
2020. The Company believes loans held for investment (net of
deferred fees and costs), excluding PPP is useful to investors as
it provides more clarity on the Company’s organic growth. The
Company also believes that the related non-GAAP financial measures
of past due loans still accruing interest as a percentage of total
loans held for investment (net of deferred fees and costs),
excluding PPP, are useful to investors as loans originated under
the PPP carry an SBA guarantee. The Company believes that the ALLL
as a percentage of loans held for investment (net of deferred fees
and costs), excluding PPP, is useful to investors because of the
size of the Company’s PPP originations and the impact of the
embedded credit enhancement provided by the SBA guarantee.
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2020 |
|
2020 |
|
2019 |
|
ASSETS |
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
172,307 |
|
$ |
178,563 |
|
$ |
163,050 |
|
Interest-bearing deposits in other banks |
|
318,974 |
|
|
335,111 |
|
|
234,810 |
|
Federal funds sold |
|
2,013 |
|
|
7,292 |
|
|
38,172 |
|
Total cash and cash equivalents |
|
493,294 |
|
|
520,966 |
|
|
436,032 |
|
Securities available for sale, at fair value |
|
2,540,419 |
|
|
2,443,340 |
|
|
1,945,445 |
|
Securities held to maturity, at carrying
value |
|
544,851 |
|
|
546,661 |
|
|
555,144 |
|
Restricted stock, at cost |
|
94,782 |
|
|
112,216 |
|
|
130,848 |
|
Loans held for sale, at fair value |
|
96,742 |
|
|
52,607 |
|
|
55,405 |
|
Loans held for investment, net of deferred fees and
costs |
|
14,021,314 |
|
|
14,383,215 |
|
|
12,610,936 |
|
Less allowance for loan and lease losses |
|
160,540 |
|
|
174,122 |
|
|
42,294 |
|
Total loans held for investment, net |
|
13,860,774 |
|
|
14,209,093 |
|
|
12,568,642 |
|
Premises and equipment, net |
|
163,829 |
|
|
156,934 |
|
|
161,073 |
|
Goodwill |
|
935,560 |
|
|
935,560 |
|
|
935,560 |
|
Amortizable intangibles, net |
|
57,185 |
|
|
61,068 |
|
|
73,669 |
|
Bank owned life insurance |
|
326,892 |
|
|
325,538 |
|
|
322,917 |
|
Other assets |
|
514,121 |
|
|
566,667 |
|
|
378,255 |
|
Total assets |
$ |
19,628,449 |
|
$ |
19,930,650 |
|
$ |
17,562,990 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
4,368,703 |
|
$ |
4,420,665 |
|
$ |
2,970,139 |
|
Interest-bearing deposits |
|
11,354,062 |
|
|
11,155,433 |
|
|
10,334,842 |
|
Total deposits |
|
15,722,765 |
|
|
15,576,098 |
|
|
13,304,981 |
|
Securities sold under agreements to
repurchase |
|
100,888 |
|
|
91,086 |
|
|
66,053 |
|
Other short-term borrowings |
|
250,000 |
|
|
175,200 |
|
|
370,200 |
|
Long-term borrowings |
|
489,829 |
|
|
1,048,036 |
|
|
1,077,495 |
|
Other liabilities |
|
356,477 |
|
|
379,345 |
|
|
231,159 |
|
Total liabilities |
|
16,919,959 |
|
|
17,269,765 |
|
|
15,049,888 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock, $10.00 par value |
|
173 |
|
|
173 |
|
|
— |
|
Common stock, $1.33 par value |
|
104,169 |
|
|
104,141 |
|
|
105,827 |
|
Additional paid-in capital |
|
1,917,081 |
|
|
1,914,640 |
|
|
1,790,305 |
|
Retained earnings |
|
616,052 |
|
|
579,269 |
|
|
581,395 |
|
Accumulated other comprehensive income (loss) |
|
71,015 |
|
|
62,662 |
|
|
35,575 |
|
Total stockholders' equity |
|
2,708,490 |
|
|
2,660,885 |
|
|
2,513,102 |
|
Total liabilities and stockholders' equity |
$ |
19,628,449 |
|
$ |
19,930,650 |
|
$ |
17,562,990 |
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
78,729,212 |
|
|
78,718,850 |
|
|
80,001,185 |
|
Common shares authorized |
|
200,000,000 |
|
|
200,000,000 |
|
|
200,000,000 |
|
Preferred shares outstanding |
|
17,250 |
|
|
17,250 |
|
|
- |
|
Preferred shares authorized |
|
500,000 |
|
|
500,000 |
|
|
500,000 |
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME (Dollars in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
142,108 |
|
|
$ |
138,402 |
|
$ |
152,513 |
|
|
$ |
574,871 |
|
$ |
612,115 |
|
Interest on deposits in other banks |
|
117 |
|
|
|
137 |
|
|
1,686 |
|
|
|
1,270 |
|
|
3,733 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
10,414 |
|
|
|
10,275 |
|
|
12,378 |
|
|
|
43,585 |
|
|
51,437 |
|
Nontaxable |
|
9,208 |
|
|
|
8,600 |
|
|
7,634 |
|
|
|
33,728 |
|
|
32,047 |
|
Total interest and dividend income |
|
161,847 |
|
|
|
157,414 |
|
|
174,211 |
|
|
|
653,454 |
|
|
699,332 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
12,000 |
|
|
|
15,568 |
|
|
30,884 |
|
|
|
75,943 |
|
|
114,972 |
|
Interest on short-term borrowings |
|
93 |
|
|
|
72 |
|
|
1,166 |
|
|
|
1,691 |
|
|
15,479 |
|
Interest on long-term borrowings |
|
4,150 |
|
|
|
4,393 |
|
|
7,031 |
|
|
|
20,522 |
|
|
31,009 |
|
Total interest expense |
|
16,243 |
|
|
|
20,033 |
|
|
39,081 |
|
|
|
98,156 |
|
|
161,460 |
|
Net interest income |
|
145,604 |
|
|
|
137,381 |
|
|
135,130 |
|
|
|
555,298 |
|
|
537,872 |
|
Provision for credit
losses |
|
(13,813 |
) |
|
|
6,558 |
|
|
2,900 |
|
|
|
87,141 |
|
|
21,092 |
|
Net interest income after provision for credit
losses |
|
159,417 |
|
|
|
130,823 |
|
|
132,230 |
|
|
|
468,157 |
|
|
516,780 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
6,702 |
|
|
|
6,041 |
|
|
7,871 |
|
|
|
25,251 |
|
|
30,202 |
|
Other service charges, commissions and fees |
|
1,692 |
|
|
|
1,621 |
|
|
1,544 |
|
|
|
6,292 |
|
|
6,423 |
|
Interchange fees |
|
1,884 |
|
|
|
1,979 |
|
|
1,854 |
|
|
|
7,184 |
|
|
14,619 |
|
Fiduciary and asset management fees |
|
6,107 |
|
|
|
6,045 |
|
|
6,531 |
|
|
|
23,650 |
|
|
23,365 |
|
Mortgage banking income |
|
9,113 |
|
|
|
8,897 |
|
|
2,689 |
|
|
|
25,857 |
|
|
10,303 |
|
Gains on securities transactions |
|
— |
|
|
|
18 |
|
|
369 |
|
|
|
12,294 |
|
|
7,675 |
|
Bank owned life insurance income |
|
2,057 |
|
|
|
3,421 |
|
|
2,119 |
|
|
|
9,554 |
|
|
8,311 |
|
Loan-related interest rate swap fees |
|
2,704 |
|
|
|
3,170 |
|
|
3,470 |
|
|
|
15,306 |
|
|
14,126 |
|
Other operating income |
|
1,982 |
|
|
|
3,215 |
|
|
2,746 |
|
|
|
6,098 |
|
|
17,791 |
|
Total noninterest income |
|
32,241 |
|
|
|
34,407 |
|
|
29,193 |
|
|
|
131,486 |
|
|
132,815 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
57,649 |
|
|
|
49,000 |
|
|
47,233 |
|
|
|
206,662 |
|
|
195,349 |
|
Occupancy expenses |
|
7,043 |
|
|
|
7,441 |
|
|
7,366 |
|
|
|
28,841 |
|
|
29,793 |
|
Furniture and equipment expenses |
|
3,881 |
|
|
|
3,895 |
|
|
3,559 |
|
|
|
14,923 |
|
|
14,216 |
|
Technology and data processing |
|
6,742 |
|
|
|
6,564 |
|
|
6,483 |
|
|
|
25,929 |
|
|
23,686 |
|
Professional services |
|
3,797 |
|
|
|
2,914 |
|
|
3,636 |
|
|
|
13,007 |
|
|
11,905 |
|
Marketing and advertising expense |
|
2,473 |
|
|
|
2,631 |
|
|
3,675 |
|
|
|
9,886 |
|
|
11,566 |
|
FDIC assessment premiums and other insurance |
|
2,393 |
|
|
|
1,811 |
|
|
1,254 |
|
|
|
9,971 |
|
|
6,874 |
|
Other taxes |
|
4,119 |
|
|
|
4,124 |
|
|
3,970 |
|
|
|
16,483 |
|
|
15,749 |
|
Loan-related expenses |
|
2,004 |
|
|
|
2,314 |
|
|
2,793 |
|
|
|
9,515 |
|
|
10,043 |
|
OREO and credit-related expenses |
|
511 |
|
|
|
413 |
|
|
1,547 |
|
|
|
2,023 |
|
|
4,708 |
|
Amortization of intangible assets |
|
3,897 |
|
|
|
4,053 |
|
|
4,603 |
|
|
|
16,574 |
|
|
18,521 |
|
Merger-related costs |
|
— |
|
|
|
— |
|
|
896 |
|
|
|
— |
|
|
27,824 |
|
Rebranding expense |
|
— |
|
|
|
— |
|
|
902 |
|
|
|
— |
|
|
6,455 |
|
Loss on debt extinguishment |
|
20,810 |
|
|
|
— |
|
|
— |
|
|
|
31,116 |
|
|
16,397 |
|
Other expenses |
|
6,349 |
|
|
|
8,062 |
|
|
6,401 |
|
|
|
28,419 |
|
|
25,254 |
|
Total noninterest expenses |
|
121,668 |
|
|
|
93,222 |
|
|
94,318 |
|
|
|
413,349 |
|
|
418,340 |
|
Income from continuing operations before income taxes |
|
69,990 |
|
|
|
72,008 |
|
|
67,105 |
|
|
|
186,294 |
|
|
231,255 |
|
Income tax expense |
|
10,560 |
|
|
|
11,008 |
|
|
11,227 |
|
|
|
28,066 |
|
|
37,557 |
|
Income from continuing operations |
$ |
59,430 |
|
|
$ |
61,000 |
|
$ |
55,878 |
|
|
$ |
158,228 |
|
$ |
193,698 |
|
Discontinued
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations of discontinued mortgage segment |
$ |
— |
|
|
$ |
— |
|
$ |
(56 |
) |
|
$ |
— |
|
$ |
(230 |
) |
Income tax expense (benefit) |
|
— |
|
|
|
— |
|
|
(14 |
) |
|
|
— |
|
|
(60 |
) |
Income (loss) on discontinued operations |
|
— |
|
|
|
— |
|
|
(42 |
) |
|
|
— |
|
|
(170 |
) |
Net income |
|
59,430 |
|
|
|
61,000 |
|
|
55,836 |
|
|
|
158,228 |
|
|
193,528 |
|
Dividends on preferred stock |
|
2,967 |
|
|
|
2,691 |
|
|
— |
|
|
|
5,658 |
|
|
— |
|
Net income available to common shareholders |
$ |
56,463 |
|
|
$ |
58,309 |
|
$ |
55,836 |
|
|
$ |
152,570 |
|
$ |
193,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.72 |
|
|
$ |
0.74 |
|
$ |
0.69 |
|
|
$ |
1.93 |
|
$ |
2.41 |
|
Diluted earnings per common share |
$ |
0.72 |
|
|
$ |
0.74 |
|
$ |
0.69 |
|
|
$ |
1.93 |
|
$ |
2.41 |
|
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES
(TAXABLE EQUIVALENT BASIS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
December 31, 2020 |
|
September 30, 2020 |
|
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 |
$ |
1,848,655 |
|
|
$ |
10,414 |
|
2.24 |
% |
|
$ |
1,738,033 |
|
|
$ |
10,275 |
|
2.35 |
% |
Tax-exempt |
|
1,291,588 |
|
|
|
11,656 |
|
3.59 |
% |
|
|
1,153,177 |
|
|
|
10,886 |
|
3.76 |
% |
Total securities |
|
3,140,243 |
|
|
|
22,070 |
|
2.80 |
% |
|
|
2,891,210 |
|
|
|
21,161 |
|
2.91 |
% |
Loans, net (3) (4) |
|
14,188,661 |
|
|
|
142,289 |
|
3.99 |
% |
|
|
14,358,666 |
|
|
|
138,635 |
|
3.84 |
% |
Other earning assets |
|
472,586 |
|
|
|
572 |
|
0.48 |
% |
|
|
498,276 |
|
|
|
519 |
|
0.41 |
% |
Total earning assets |
|
17,801,490 |
|
|
$ |
164,931 |
|
3.69 |
% |
|
|
17,748,152 |
|
|
$ |
160,315 |
|
3.59 |
% |
Allowance for credit
losses |
|
(174,761 |
) |
|
|
|
|
|
|
|
(174,171 |
) |
|
|
|
|
|
Total non-earning
assets |
|
2,190,589 |
|
|
|
|
|
|
|
|
2,211,186 |
|
|
|
|
|
|
Total
assets |
$ |
19,817,318 |
|
|
|
|
|
|
|
$ |
19,785,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
$ |
8,029,168 |
|
|
$ |
3,167 |
|
0.16 |
% |
|
$ |
7,834,317 |
|
|
$ |
4,684 |
|
0.24 |
% |
Regular savings |
|
881,298 |
|
|
|
88 |
|
0.04 |
% |
|
|
845,936 |
|
|
|
128 |
|
0.06 |
% |
Time deposits (5) |
|
2,571,639 |
|
|
|
8,745 |
|
1.35 |
% |
|
|
2,579,991 |
|
|
|
10,756 |
|
1.66 |
% |
Total interest-bearing deposits |
|
11,482,105 |
|
|
|
12,000 |
|
0.42 |
% |
|
|
11,260,244 |
|
|
|
15,568 |
|
0.55 |
% |
Other borrowings (6) |
|
891,699 |
|
|
|
4,243 |
|
1.89 |
% |
|
|
1,183,839 |
|
|
|
4,465 |
|
1.50 |
% |
Total interest-bearing liabilities |
|
12,373,804 |
|
|
$ |
16,243 |
|
0.52 |
% |
|
|
12,444,083 |
|
|
$ |
20,033 |
|
0.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
4,414,044 |
|
|
|
|
|
|
|
|
4,320,225 |
|
|
|
|
|
|
Other liabilities |
|
350,300 |
|
|
|
|
|
|
|
|
372,082 |
|
|
|
|
|
|
Total liabilities |
|
17,138,148 |
|
|
|
|
|
|
|
|
17,136,390 |
|
|
|
|
|
|
Stockholders' equity |
|
2,679,170 |
|
|
|
|
|
|
|
|
2,648,777 |
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
19,817,318 |
|
|
|
|
|
|
|
$ |
19,785,167 |
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
148,688 |
|
|
|
|
|
|
$ |
140,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
|
|
2.95 |
% |
Cost of
funds |
|
|
|
|
|
|
0.37 |
% |
|
|
|
|
|
|
|
0.45 |
% |
Net interest
margin |
|
|
|
|
|
|
3.32 |
% |
|
|
|
|
|
|
|
3.14 |
% |
_________________________
(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 $4.5 million and $3.8 million for the three months
ended December 31, 2020 and September 30, 2020, respectively, in
accretion of the fair market value adjustments related to
acquisitions.(5) Interest expense on time deposits
includes $22,000 and $26,000 for the three months ended December
31, 2020 and September 30, 2020, respectively, in accretion of the
fair market value adjustments related to
acquisitions.(6) Interest expense on borrowings
includes $188,000 and $167,000 for the three months ended December
31, 2020 and September 30, 2020, in amortization of the fair market
value adjustments related to acquisitions.
Contact: |
Robert M. Gorman - (804) 523-7828 |
|
Executive
Vice President / Chief Financial Officer |
Atlantic Union Bankshares (NASDAQ:AUB)
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Atlantic Union Bankshares (NASDAQ:AUB)
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