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CST: 18/10/2019 03:21:19   

Atlantic Union Bankshares Reports Second Quarter Results

91 Days ago

RICHMOND, Va., July 18, 2019 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income of $48.8 million and earnings per share of $0.59 for its second quarter ended June 30, 2019. Net operating earnings(1) were $57.1 million and operating earnings per share(1) were $0.70 for its second quarter ended June 30, 2019; these operating results exclude $8.3 million in after-tax merger and rebranding related costs but include after tax losses from discontinued operations of $85,000 and approximately $950,000 in after-tax branch closure costs.

Net income was $84.5 million and earnings per share were $1.06 for the six months ended June 30, 2019. Net operating earnings(1) were $107.6 million and operating earnings per share(1) were $1.36 for the six months ended June 30, 2019; these operating results exclude $23.2 million in after-tax merger and rebranding related costs but include after tax losses from discontinued operations of $170,000 and approximately $950,000 in after-tax expenses related to branch closure costs.

“Atlantic Union followed up on our strong first quarter with a number of accomplishments during the second quarter that align with our stated strategic priorities - positioning us for profitable growth and the delivery of top tier financial metrics,” said John Asbury, President and CEO of Atlantic Union Bankshares. “This quarter’s major accomplishments included seamlessly converting the core data systems of Access National Corporation and successfully rebranding the Company to Atlantic Union.  In addition, we were pleased to achieve the number one ranking in the Mid-Atlantic region in the J.D. Power 2019 Retail Banking Satisfaction Study as we continue our transformation to become the preeminent mid-Atlantic regional bank.”

“With solid loan growth and meaningful improvements to our profitability metrics, on an operating basis, I believe our second quarter results signal the underlying strength and earnings potential of this uniquely valuable franchise.  We remain focused on achieving our 2019 priorities and generating above average investment returns for our shareholders.”

Select highlights for the second quarter of 2019

  • Performance metrics
    • Return on Average Assets (“ROA”) was 1.15% compared to 0.92% in the first quarter of 2019. Operating ROA(1) was 1.35% compared to 1.31% in the first quarter of 2019.
    • Return on Average Equity (“ROE”) was 7.86% compared to 6.37% in the first quarter of 2019. Operating ROE(1) was 9.20% compared to 9.03% in the first quarter of 2019.
    • Operating ROTCE(1) was 16.58% compared to 16.37% in the first quarter of 2019.
    • Efficiency ratio improved to 62.43% from 69.99% in the first quarter of 2019. Operating efficiency ratio (FTE)(1) improved to 52.46% from 54.10% in the first quarter of 2019.
  • On May 20, 2019, the Company re-branded to Atlantic Union Bankshares Corporation and successfully completed the integration of Access National Bank (“Access”) branches and operations into Atlantic Union Bank. Rebranding costs amounted to $4.0 million during the second quarter of 2019 and approximately $407,000 during the first quarter of 2019.

(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 second quarter of 2019, net interest income was $138.6 million, an increase of $11.0 million from the first quarter of 2019. Net interest income (FTE)(1) was $141.5 million in the second quarter of 2019, an increase of $11.2 million from the first quarter of 2019. The increases in both net interest income and net interest income (FTE) were primarily the result of a $1.1 billion increase in average interest earning assets and a $598.1 million increase in average interest bearing liabilities from the acquisition of Access. The second quarter net interest margin decreased 1 basis point to 3.71% from 3.72% in the previous quarter, while the net interest margin (FTE)(1) decreased 2 basis points to 3.78% from 3.80% during the same periods. The decrease in the net interest margin and net interest margin (FTE) were principally due to an approximately 2 basis point increase in the cost of funds.

The Company’s net interest margin (FTE) includes the impact of acquisition accounting fair value adjustments. During the second quarter of 2019, net accretion related to acquisition accounting increased $2.0 million from the prior quarter to $7.8 million for the quarter ended June 30, 2019. The first and second 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 March 31, 2019   $  5,557   $  292     $  (70 )   $  5,779
For the quarter ended June 30, 2019      7,659      213        (70 )      7,802
For the remaining six months of 2019 (estimated)      8,307      328        (220 )      8,415
For the years ending (estimated):                        
2020      13,926      132        (633 )      13,425
2021      11,321      14        (807 )      10,528
2022      9,105      (43 )      (829 )      8,233
2023      6,499      (32 )      (852 )      5,615
2024      4,906      (4 )      (877 )      4,025
Thereafter      18,390      (1 )      (10,773 )      7,616

ASSET QUALITY/LOAN LOSS PROVISION

Overview

During the second quarter of 2019, the Company experienced increases in nonperforming asset (“NPA”) balances from the prior quarter, primarily due to nonaccrual additions of commercial real estate – owner occupied loans and mortgage loans which are attributable to several smaller credit relationships. Past due loan levels as a percentage of total loans held for investment at June 30, 2019 were lower than past due loan levels at March 31, 2019. Charge-off levels as a percentage of loans decreased slightly and the loan loss provision increased from the first quarter of 2019 primarily due to loan growth.

All nonaccrual and past due loan metrics discussed below exclude purchased credit impaired (“PCI”) loans totaling $101.3 million (net of fair value mark of $24.3 million) at June 30, 2019.

Nonperforming Assets

At June 30, 2019, NPAs totaled $34.0 million, an increase of $1.8 million, or 5.5%, from March 31, 2019 and an increase of $1.1 million, or 3.2%, from June 30, 2018. NPAs as a percentage of total outstanding loans at June 30, 2019 were 0.28%, an increase of 1 basis point from 0.27% at March 31, 2019 and a decline of 7 basis points from 0.35% at June 30, 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.

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

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

                               
    June 30,    March 31,    December 31,    September 30,    June 30, 
    2019   2019   2018   2018   2018
Nonaccrual loans   $  27,462   $  24,841   $  26,953   $  28,110   $  25,662
Foreclosed properties      6,506      7,353      6,722      6,800      7,241
Total nonperforming assets   $  33,968   $  32,194   $  33,675   $  34,910   $  32,903

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

                               
    June 30,    March 31,    December 31,    September 30,    June 30, 
    2019     2019     2018     2018     2018  
Beginning Balance   $  24,841     $  26,953     $  28,110     $  25,662     $  25,138  
Net customer payments      (3,108 )      (2,314 )      (3,077 )      (2,459 )      (2,651 )
Additions      6,321        3,297        4,659        6,268        5,063  
Charge-offs      (592 )      (1,626 )      (2,069 )      (1,137 )      (539 )
Loans returning to accruing status      —        (952 )      (420 )      (70 )      (1,349 )
Transfers to foreclosed property      —        (517 )      (250 )      (154 )      —  
Ending Balance   $  27,462     $  24,841     $  26,953     $  28,110     $  25,662  

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

                               
    June 30,    March 31,    December 31,    September 30,    June 30, 
    2019     2019     2018     2018     2018  
Beginning Balance   $  7,353     $  6,722     $  6,800     $  7,241     $  8,079  
Additions of foreclosed property      271        900        432        165        283  
Acquisitions of foreclosed property (1)      —        —        —        —        (162 )
Valuation adjustments      (433 )      (51 )      (140 )      (42 )      (383 )
Proceeds from sales      (638 )      (171 )      (286 )      (889 )      (580 )
Gains (losses) from sales      (47 )      (47 )      (84 )      325        4  
Ending Balance   $  6,506     $  7,353     $  6,722     $  6,800     $  7,241  

(1)        Includes subsequent measurement period adjustments.

Past Due Loans
Past due loans still accruing interest totaled $43.1 million, or 0.35% of total loans held for investment, at June 30, 2019 compared to $51.4 million, or 0.43% of total loans held for investment, at March 31, 2019 and $38.2 million, or 0.41% of total loans held for investment, at June 30, 2018. Of the total past due loans still accruing interest, $8.8 million, or 0.07% of total loans held for investment, were loans past due 90 days or more at June 30, 2019, compared to $11.0 million, or 0.09% of total loans held for investment, at March 31, 2019 and $6.9 million, or 0.07% of total loans held for investment, at June 30, 2018.

Net Charge-offs
For the second quarter of 2019, net charge-offs were $4.3 million, or 0.14% of total average loans on an annualized basis, compared to $4.2 million, or 0.15%, for the prior quarter and $1.8 million, or 0.07%, for the second quarter of 2018. The majority of net charge-offs in the second quarter of 2019 were related to consumer loans.

Provision for Loan Losses
The provision for loan losses for the second quarter of 2019 was $5.9 million, an increase of $1.9 million compared to the previous quarter and an increase of $3.2 million compared to second quarter of 2018. The increase in the provision for loan losses from the previous quarter and prior year was primarily driven by loan growth.

Allowance for Loan Losses (“ALL”)
The ALL increased $1.6 million from March 31, 2019 to $42.5 million at June 30, 2019 primarily due to loan growth during the quarter. The ALL as a percentage of the total loan portfolio was 0.35% at June 30, 2019, 0.34% at March 31, 2019, and 0.44% at June 30, 2018.

The ratio of the ALL to nonaccrual loans was 154.6% at June 30, 2019, compared to 164.4% at March 31, 2019 and 160.8% at June 30, 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 increased $5.6 million to $30.6 million for the quarter ended June 30, 2019 from $24.9 million in the prior quarter primarily driven by loan-related swap fees and mortgage banking income which is seasonally higher in the second quarter. Also contributing to the increase in noninterest income in the second quarter of 2019 was the full quarter impact of the Access acquisition.

NONINTEREST EXPENSE

Noninterest expense decreased $1.1 million to $105.6 million for the quarter ended June 30, 2019 from $106.7 million in the prior quarter. Excluding merger-related costs, amortization of intangible assets, and rebranding costs, operating noninterest expense(1) increased $6.3 million, or 7.5%, in the second quarter of 2019, to $90.3 million when compared to the first quarter of 2019. The increase in operating noninterest expense was primarily due to the full quarter impact of the Access acquisition. In addition, operating noninterest expense for the second quarter of 2019 included $1.2 million in branch closure costs related to the Company’s decision to close four branches in the third quarter and approximately $800,000 in OREO valuation adjustments driven by updated appraisals received during the quarter.

INCOME TAXES

The effective tax rate for the three months ended June 30, 2019 was 16.0% compared to 14.9% for the three months ended March 31, 2019. The increase in the effective tax rate as compared to the previous quarter was primarily due to the decrease in merger-related expenses related to the acquisition of Access.

BALANCE SHEET

At June 30, 2019, total assets were $17.2 billion, an increase of $261.7 million, or approximately 6.0% (annualized), from March 31, 2019, primarily due to loan growth during the second quarter of 2019.

At June 30, 2019, loans held for investment (net of deferred fees and costs) were $12.2 billion, an increase of $268.2 million, or 9.0% (annualized), from March 31, 2019.

At June 30, 2019, total deposits were $12.5 billion, an increase of $26.2 million, or approximately 1.0% (annualized), from March 31, 2019.

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

               
    June 30,    December 31,    June 30,   
    2019   2018   2018  
Common equity Tier 1 capital ratio (2)    10.54  9.93  9.80 %
Tier 1 capital ratio (2)    10.54  11.09  11.02 %
Total capital ratio (2)    13.01  12.88  12.89 %
Leverage ratio (Tier 1 capital to average assets) (2)    9.00  9.71  9.46 %
Common equity to total assets    14.64  13.98  14.27 %
Tangible common equity to tangible assets (1)    9.28  8.84  8.86 %

(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 June 30, 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 second quarter of 2019, the Company declared and paid cash dividends of $0.23 per common share consistent with the first quarter of 2019 and an increase of $0.02, or approximately 10.0% compared to the second 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.

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 153 branches, seven of which are operated as Xenith Bank, a division of Atlantic Union Bank, and approximately 200 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, investment advisory and brokerage 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.

SECOND QUARTER 2019 EARNINGS RELEASE CONFERENCE CALL

Atlantic Union Bank will hold a conference call on Thursday, July 18th, 2019 at 9:00 a.m. Eastern Time during which management will review the second quarter 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 4593923.

NON-GAAP FINANCIAL MEASURES

In reporting the results of the quarter ended June 30, 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 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 impact of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), including, but not limited to, the effect of the lower corporate tax rate, including on the valuation of the Company’s tax assets and liabilities;
  • changes in the effect of the Tax Act due to issuance of interpretive regulatory guidance or enactment of corrective or supplement legislation;
  • 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 Six Months Ended  
    6/30/2019   3/31/2019   6/30/2018   6/30/2019   6/30/2018  
Results of Operations   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Interest and dividend income   $  181,125     $  165,652     $  132,409     $  346,777     $  256,789    
Interest expense      42,531        38,105        24,241        80,636        45,149    
Net interest income      138,594        127,547        108,168        266,141        211,640    
Provision for credit losses      5,300        3,792        2,147        9,092        5,671    
Net interest income after provision for credit losses      133,294        123,755        106,021        257,049        205,969    
Noninterest income      30,578        24,938        40,597        55,515        60,865    
Noninterest expenses      105,608        106,728        85,140        212,335        186,885    
Income before income taxes      58,264        41,965        61,478        100,229        79,949    
Income tax expense      9,356        6,249        11,678        15,606        13,575    
Income from continuing operations      48,908        35,716        49,800        84,623        66,374    
Discontinued operations, net of tax      (85 )      (85 )      (2,473 )      (170 )      (2,408 )  
Net income   $  48,823     $  35,631     $  47,327     $  84,453     $  63,966    
                                 
Interest earned on earning assets (FTE) (1)   $  184,045     $  168,400     $  134,417     $  352,445     $  260,634    
Net interest income (FTE) (1)      141,514        130,295        110,176        271,809        215,485    
                                 
Key Ratios                                
Earnings per common share, diluted   $  0.59     $  0.47     $  0.72     $  1.06     $  0.97    
Return on average assets (ROA)      1.15      0.92      1.44   %    1.04      0.98   %
Return on average equity (ROE)      7.86      6.37      10.28   %    7.16      7.03   %
Efficiency ratio      62.43      69.99      57.23   %    66.01      68.58   %
Net interest margin      3.71      3.72      3.72   %    3.71      3.69   %
Net interest margin (FTE) (1)      3.78      3.80      3.79   %    3.79      3.76   %
Yields on earning assets (FTE) (1)      4.92      4.92      4.62   %    4.92      4.54   %
Cost of interest-bearing liabilities      1.50      1.44      1.06   %    1.46      1.00   %
Cost of deposits      0.93      0.86      0.54   %    0.90      0.51   %
Cost of funds      1.14      1.12      0.83   %    1.13      0.78   %
                                 
Operating Measures (4)                                
Net operating earnings   $  57,089     $  50,519     $  53,864     $  107,607     $  92,739    
Operating earnings per share, diluted   $  0.70     $  0.66     $  0.82     $  1.36     $  1.41    
Operating ROA      1.35      1.31      1.63   %    1.33      1.43   %
Operating ROE      9.20      9.03      11.69   %    9.12      10.19   %
Operating ROTCE (2) (3)      16.58      16.37      21.15   %    16.48      18.61   %
Operating efficiency ratio (FTE) (1)(6)      52.46      54.10      48.85   %    53.24      52.29   %
                                 
Per Share Data                                
Earnings per common share, basic   $  0.59     $  0.47     $  0.72     $  1.06     $  0.97    
Earnings per common share, diluted      0.59        0.47        0.72        1.06        0.97    
Cash dividends paid per common share      0.23        0.23        0.21        0.46        0.42    
Market value per share      35.33        32.33        38.88        35.33        38.88    
Book value per common share      30.78        30.16        28.47        30.78        28.47    
Tangible book value per common share (2)      18.36        17.69        16.62        18.36        16.62    
Price to earnings ratio, diluted      14.93        16.96        13.46        16.37        19.88    
Price to book value per common share ratio      1.15        1.07        1.37        1.15        1.37    
Price to tangible book value per common share ratio (2)      1.92        1.83        2.34        1.92        2.34    
Weighted average common shares outstanding, basic      82,062,585        76,472,189        65,919,055        79,282,830        65,737,849    
Weighted average common shares outstanding, diluted      82,125,194        76,553,066        65,965,577        79,344,573        65,801,926    
Common shares outstanding at end of period      82,086,736        82,037,354        65,939,375        82,086,736        65,939,375    


                                 
    As of & For Three Months Ended   As of & For Six Months Ended  
    6/30/2019   3/31/2019   6/30/2018   6/30/2019   6/30/2018  
Capital Ratios   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Common equity Tier 1 capital ratio (5)      10.54    10.26    9.80 %    10.54    9.80 %
Tier 1 capital ratio (5)      10.54    10.26    11.02 %    10.54    11.02 %
Total capital ratio (5)      13.01    12.73    12.89 %    13.01    12.89 %
Leverage ratio (Tier 1 capital to average assets) (5)      9.00    9.51    9.46 %    9.00    9.46 %
Common equity to total assets      14.64    14.56    14.27 %    14.64    14.27 %
Tangible common equity to tangible assets (2)      9.28    9.09    8.86 %    9.28    8.86 %
                                 
Financial Condition                                
Assets   $  17,159,384   $  16,897,655   $  13,066,106   $  17,159,384   $  13,066,106  
Loans held for investment      12,220,514      11,952,310      9,290,259      12,220,514      9,290,259  
Securities      2,703,855      2,804,353      1,738,689      2,703,855      1,738,689  
Earning Assets      15,140,370      14,909,318      11,494,113      15,140,370      11,494,113  
Goodwill      930,449      927,760      725,195      930,449      725,195  
Amortizable intangibles, net      82,976      88,553      51,211      82,976      51,211  
Deposits      12,515,544      12,489,330      9,797,272      12,515,544      9,797,272  
Borrowings      1,909,171      1,753,103      1,300,276      1,909,171      1,300,276  
Stockholders' equity      2,512,295      2,459,465      1,864,870      2,512,295      1,864,870  
Tangible common equity (2)      1,498,870      1,443,152      1,088,464      1,498,870      1,088,464  
                                 
Loans held for investment, net of deferred fees and costs                                
Construction and land development   $  1,267,712   $  1,326,679   $  1,250,448   $  1,267,712   $  1,250,448  
Commercial real estate - owner occupied      1,966,776      1,921,464      1,293,791      1,966,776      1,293,791  
Commercial real estate - non-owner occupied      3,104,823      2,970,453      2,318,589      3,104,823      2,318,589  
Multifamily real estate      602,115      591,431      541,730      602,115      541,730  
Commercial & Industrial      2,032,799      1,866,625      1,093,771      2,032,799      1,093,771  
Residential 1-4 Family - commercial      801,703      815,309      723,945      801,703      723,945  
Residential 1-4 Family - mortgage      850,063      865,502      607,155      850,063      607,155  
Auto      311,858      300,631      296,706      311,858      296,706  
HELOC      660,621      672,087      626,916      660,621      626,916  
Consumer      383,653      397,491      298,021      383,653      298,021  
Other Commercial      238,391      224,638      239,187      238,391      239,187  
Total loans held for investment   $  12,220,514   $  11,952,310   $  9,290,259   $  12,220,514   $  9,290,259  
                                 
Deposits                                
NOW accounts   $  2,552,159   $  2,643,228   $  2,147,999   $  2,552,159   $  2,147,999  
Money market accounts      3,592,523      3,579,249      2,758,704      3,592,523      2,758,704  
Savings accounts      749,472      798,670      643,894      749,472      643,894  
Time deposits      2,606,494      2,504,070      2,053,748      2,606,494      2,053,748  
Total interest-bearing deposits   $  9,500,648   $  9,525,217   $  7,604,345   $  9,500,648   $  7,604,345  
Demand deposits      3,014,896      2,964,113      2,192,927      3,014,896      2,192,927  
Total deposits   $  12,515,544   $  12,489,330   $  9,797,272   $  12,515,544   $  9,797,272  
                                 
Averages                                
Assets   $  16,997,531   $  15,699,743   $  13,218,227   $  16,352,222   $  13,119,448  
Loans held for investment      12,084,961      11,127,390      9,809,083      11,608,821      9,744,995  
Loans held for sale      47,061      14,999      31,904      31,119      30,315  
Securities      2,738,528      2,645,429      1,625,273      2,692,236      1,596,431  
Earning assets      15,002,726      13,891,248      11,661,189      14,450,057      11,568,658  
Deposits      12,453,702      11,469,935      9,645,186      11,964,536      9,554,943  
Time deposits      2,562,498      2,325,218      2,063,414      2,444,513      2,074,610  
Interest-bearing deposits      9,555,093      8,934,995      7,549,953      9,285,895      7,520,089  
Borrowings      1,847,325      1,790,656      1,617,322      1,819,147      1,616,013  
Interest-bearing liabilities      11,402,418      10,725,651      9,167,275      11,105,042      9,136,102  
Stockholders' equity      2,490,049      2,268,395      1,847,366      2,379,834      1,836,072  
Tangible common equity (2)      1,475,028      1,334,051      1,069,886      1,404,929      1,059,446  


                                 
    As of & For Three Months Ended   As of & For Six Months Ended  
    6/30/2019   3/31/2019   6/30/2018   6/30/2019   6/30/2018  
Asset Quality   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Allowance for Loan Losses (ALL)                                
Beginning balance   $  40,827   $  41,045   $  40,629     $  41,045   $  38,208    
Add: Recoveries      1,670      1,696      1,201        3,366      2,681    
Less: Charge-offs      5,934      5,939      2,980        11,873      5,539    
Add: Provision for loan losses      5,900      4,025      2,660        9,925      6,184    
Add: Provision for loan losses included in discontinued operations      —      —      (240 )      —      (264 )  
Ending balance   $  42,463   $  40,827   $  41,270     $  42,463   $  41,270    
                                 
ALL / total outstanding loans      0.35    0.34    0.44   %    0.35    0.44   %
Net charge-offs / total average loans      0.14    0.15    0.07   %    0.15    0.06   %
Provision / total average loans      0.20    0.15    0.11   %    0.17    0.13   %
                                 
Total PCI loans, net of fair value mark   $  101,301   $  99,932   $  101,524     $  101,301   $  101,524    
Remaining fair value mark on purchased performing loans      58,583      63,506      36,207        58,583      36,207    
                                 
Nonperforming Assets                                
Construction and land development   $  5,619   $  5,513   $  6,485     $  5,619   $  6,485    
Commercial real estate - owner occupied      4,062      3,307      2,845        4,062      2,845    
Commercial real estate - non-owner occupied      1,685      1,787      3,068        1,685      3,068    
Commercial & Industrial      1,183      721      1,387        1,183      1,387    
Residential 1-4 Family - commercial      4,135      4,244      1,998        4,135      1,998    
Residential 1-4 Family - mortgage      8,677      7,119      7,552        8,677      7,552    
Auto      449      523      463        449      463    
HELOC      1,432      1,395      1,669        1,432      1,669    
Consumer and all other      220      232      195        220      195    
Nonaccrual loans   $  27,462   $  24,841   $  25,662     $  27,462   $  25,662    
Foreclosed property      6,506      7,353      7,241        6,506      7,241    
Total nonperforming assets (NPAs)   $  33,968   $  32,194   $  32,903     $  33,968   $  32,903    
Construction and land development   $  855   $  1,997   $  144     $  855   $  144    
Commercial real estate - owner occupied      2,540      2,908      2,512        2,540      2,512    
Commercial real estate - non-owner occupied      1,489      —      —        1,489      —    
Commercial & Industrial      295      313      100        295      100    
Residential 1-4 Family - commercial      863      1,490      132        863      132    
Residential 1-4 Family - mortgage      845      2,476      2,669        845      2,669    
Auto      122      153      121        122      121    
HELOC      658      518      570        658      570    
Consumer and all other      1,161      1,098      673        1,161      673    
Loans ≥ 90 days and still accruing   $  8,828   $  10,953   $  6,921     $  8,828   $  6,921    
Total NPAs and loans ≥ 90 days   $  42,796   $  43,147   $  39,824     $  42,796   $  39,824    
NPAs / total outstanding loans      0.28    0.27    0.36   %    0.28    0.36   %
NPAs / total assets      0.20    0.19    0.26   %    0.20    0.26   %
ALL / nonaccrual loans      154.62    164.35    160.82   %    154.62    160.82   %
ALL / nonperforming assets      125.01    126.82    122.62   %    125.01    122.62   %
Past Due Detail                                
Construction and land development   $  2,327   $  1,019   $  648     $  2,327   $  648    
Commercial real estate - owner occupied      1,707      4,052      3,775        1,707      3,775    
Commercial real estate - non-owner occupied      141      760      44        141      44    
Multifamily real estate      1,218      596      86        1,218      86    
Commercial & Industrial      3,223      2,565      1,921        3,223      1,921    
Residential 1-4 Family - commercial      1,622      4,059      2,216        1,622      2,216    
Residential 1-4 Family - mortgage      5,969      5,889      4,926        5,969      4,926    
Auto      2,120      2,152      2,187        2,120      2,187    
HELOC      4,978      5,020      2,505        4,978      2,505    
Consumer and all other      2,824      1,963      2,722        2,824      2,722    
Loans 30-59 days past due   $  26,129   $  28,075   $  21,030     $  26,129   $  21,030    


                                 
    As of & For Three Months Ended   As of & For Six Months Ended  
    6/30/2019   3/31/2019   6/30/2018   6/30/2019   6/30/2018  
Past Due Detail cont'd   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Construction and land development   $  318   $  526   $  292   $  318   $  292  
Commercial real estate - owner occupied      —      480      1,819      —      1,819  
Commercial real estate - non-owner occupied      164      4,129      —      164      —  
Commercial & Industrial      1,175      438      1,567      1,175      1,567  
Residential 1-4 Family - commercial      651      1,365      754      651      754  
Residential 1-4 Family - mortgage      2,801      2,196      2,988      2,801      2,988  
Auto      299      297      419      299      419  
HELOC      1,336      1,753      1,622      1,336      1,622  
Consumer and all other      1,423      1,197      761      1,423      761  
Loans 60-89 days past due   $  8,167   $  12,381   $  10,222   $  8,167   $  10,222  
                                 
Troubled Debt Restructurings                                
Performing   $  19,144   $  20,809   $  15,696   $  19,144   $  15,696  
Nonperforming      4,536      4,682      4,001      4,536      4,001  
Total troubled debt restructurings   $  23,680   $  25,491   $  19,697   $  23,680   $  19,697  
                                 
Alternative Performance Measures (non-GAAP)                                
Net interest income (FTE)                                
Net interest income (GAAP)   $  138,594   $  127,547   $  108,168   $  266,141   $  211,640  
FTE adjustment      2,920      2,748      2,008      5,668      3,845  
Net interest income (FTE) (non-GAAP) (1)   $  141,514   $  130,295   $  110,176   $  271,809   $  215,485  
Average earning assets      15,002,726      13,891,248      11,661,189      14,450,057      11,568,658  
Net interest margin      3.71    3.72    3.72 %    3.71    3.69 %
Net interest margin (FTE) (1)      3.78    3.80    3.79 %    3.79    3.76 %
                                 
Tangible Assets                                
Ending assets (GAAP)   $  17,159,384   $  16,897,655   $  13,066,106   $  17,159,384   $  13,066,106  
Less: Ending goodwill      930,449      927,760      725,195      930,449      725,195  
Less: Ending amortizable intangibles      82,976      88,553      51,211      82,976      51,211  
Ending tangible assets (non-GAAP)   $  16,145,959   $  15,881,342   $  12,289,700   $  16,145,959   $  12,289,700  
                                 
Tangible Common Equity (2)                                
Ending equity (GAAP)   $  2,512,295   $  2,459,465   $  1,864,870   $  2,512,295   $  1,864,870  
Less: Ending goodwill      930,449      927,760      725,195      930,449      725,195  
Less: Ending amortizable intangibles      82,976      88,553      51,211      82,976      51,211  
Ending tangible common equity (non-GAAP)   $  1,498,870   $  1,443,152   $  1,088,464   $  1,498,870   $  1,088,464  
                                 
Average equity (GAAP)   $  2,490,049   $  2,268,395   $  1,847,366   $  2,379,834   $  1,836,072  
Less: Average goodwill      929,455      858,658      726,934      894,252      725,527  
Less: Average amortizable intangibles      85,566      75,686      50,546      80,653      51,099  
Average tangible common equity (non-GAAP)   $  1,475,028   $  1,334,051   $  1,069,886   $  1,404,929   $  1,059,446  
                                 
Operating Measures (4)                                
Net income (GAAP)   $  48,823   $  35,631   $  47,327   $  84,453   $  63,966  
Plus: Merger and rebranding-related costs, net of tax      8,266      14,888      6,537      23,154      28,773  
Net operating earnings (non-GAAP)   $  57,089   $  50,519   $  53,864   $  107,607   $  92,739  
                                 
Noninterest expense (GAAP)   $  105,608   $  106,728   $  85,140   $  212,335   $  186,885  
Less: Merger Related Costs      6,371      18,122      8,273      24,493      35,985  
Less: Rebranding Costs      4,012      407      —      4,420      —  
Less: Amortization of intangible assets      4,937      4,218      3,215      9,154      6,396  
Operating noninterest expense (non-GAAP)   $  90,288   $  83,981   $  73,652   $  174,268   $  144,504  
                                 
Net interest income (FTE) (non-GAAP) (1)   $  141,514   $  130,295   $  110,176   $  271,809   $  215,485  
                                 
Noninterest income (GAAP)      30,578      24,938      40,597      55,515      60,865  
                                 
Efficiency ratio      62.43    69.99    57.23 %    66.01    68.58 %
Operating efficiency ratio (FTE)(6)      52.46    54.10    48.85 %    53.24    52.29 %


                                 
    As of & For Three Months Ended   As of & For Six Months Ended  
    6/30/2019   3/31/2019   6/30/2018   6/30/2019   6/30/2018  
    (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Operating ROTCE (2)(3)                                
Operating Net Income (non-GAAP)   $  57,089   $  50,519   $  53,864   $  107,607   $  92,739  
Plus: Amortization of intangibles, tax effected      3,900      3,332      2,540      7,232      5,053  
Net Income before amortization of intangibles (non-GAAP)   $  60,989   $  53,851   $  56,404   $  114,839   $  97,792  
                                 
Average tangible common equity (non-GAAP)   $  1,475,028   $  1,334,051   $  1,069,886   $  1,404,929   $  1,059,446  
Operating return on average tangible common equity (non-GAAP)      16.58    16.37    21.15 %    16.48    18.61 %
                                 
Mortgage Origination Volume                                
Refinance Volume   $  27,870   $  11,969   $  —   $  39,839   $  35,599  
Construction Volume      360      —      —      360      13,867  
Purchase Volume      84,225      32,107      —      116,332      43,082  
Total Mortgage loan originations   $  112,455   $  44,076   $  —   $  156,531   $  92,548  
% of originations that are refinances      24.8    27.2    — %    25.5    38.5 %
                                 
Other Data                                
End of period full-time employees      1,931      1,947      1,702      1,931      1,702  
Number of full-service branches      153      155      147      153      147  
Number of full automatic transaction machines ("ATMs")      197      197      199      197      199  

(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 June 30, 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)
                 
                   
    June 30,    December 31,    June 30, 
    2019   2018
  2018
ASSETS   (unaudited)   (audited)   (unaudited)
Cash and cash equivalents:                  
Cash and due from banks   $  171,441   $  166,927     $  153,078  
Interest-bearing deposits in other banks      146,514      94,056        417,423  
Federal funds sold      2,523      216        7,552  
Total cash and cash equivalents      320,478      261,199        578,053  
Securities available for sale, at fair value      1,999,494      1,774,821        1,558,048  
Securities held to maturity, at carrying value      558,503      492,272        47,604  
Marketable equity securities, at fair value      —      —        28,200  
Restricted stock, at cost      145,859      124,602        104,837  
Loans held for sale, at fair value      62,908      —        —  
Loans held for investment, net of deferred fees and costs      12,220,514      9,716,207        9,290,259  
Less allowance for loan losses      42,463      41,045        41,270  
Total loans held for investment, net      12,178,051      9,675,162        9,248,989  
Premises and equipment, net      168,514      146,967        160,508  
Goodwill      930,449      727,168        725,195  
Amortizable intangibles, net      82,976      48,685        51,211  
Bank owned life insurance      318,734      263,034        260,124  
Other assets      392,454      250,210        259,873  
Assets of discontinued operations      964      1,479        43,464  
Total assets   $  17,159,384   $  13,765,599     $  13,066,106  
LIABILITIES                  
Noninterest-bearing demand deposits   $  3,014,896   $  2,094,607     $  2,192,927  
Interest-bearing deposits      9,500,648      7,876,353        7,604,345  
Total deposits      12,515,544      9,970,960        9,797,272  
Securities sold under agreements to repurchase      70,870      39,197        50,299  
Other short-term borrowings      618,050      1,048,600        742,900  
Long-term borrowings      1,220,251      668,481        507,077  
Other liabilities      221,353      112,093        99,327  
Liabilities of discontinued operations      1,021      1,687        4,361  
Total liabilities      14,647,089      11,841,018        11,201,236  
Commitments and contingencies                  
STOCKHOLDERS' EQUITY                  
Common stock, $1.33 par value, shares authorized 200,000,000; issued and outstanding, 82,086,736 shares,
65,977,149 shares, and 65,939,375 shares respectively.
     108,560      87,250        87,129  
Additional paid-in capital      1,862,716      1,380,259        1,376,294  
Retained earnings      512,952      467,345        415,492  
Accumulated other comprehensive income (loss)      28,067      (10,273 )      (14,045 )
Total stockholders' equity      2,512,295      1,924,581        1,864,870  
Total liabilities and stockholders' equity   $  17,159,384   $  13,765,599     $  13,066,106  


             
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
           
                               
    Three Months Ended   Six Months Ended
    June 30,    March 31,    June 30,    June 30,    June 30, 
    2019     2019     2018     2019     2018  
Interest and dividend income:   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest and fees on loans   $  158,838     $  144,115     $  119,540     $  302,952     $  232,193  
Interest on deposits in other banks      544        473        676        1,017        1,323  
Interest and dividends on securities:                              
Taxable      13,353        13,081        8,012        26,434        15,084  
Nontaxable      8,390        7,983        4,181        16,374        8,189  
Total interest and dividend income      181,125        165,652        132,409        346,777        256,789  
Interest expense:                              
Interest on deposits      28,809        24,430        13,047        53,239        24,259  
Interest on short-term borrowings      5,563        6,551        5,166        12,114        9,415  
Interest on long-term borrowings      8,159        7,124        6,028        15,283        11,475  
Total interest expense      42,531        38,105        24,241        80,636        45,149  
Net interest income      138,594        127,547        108,168        266,141        211,640  
Provision for credit losses      5,300        3,792        2,147        9,092        5,671  
Net interest income after provision for credit losses      133,294        123,755        106,021        257,049        205,969  
Noninterest income:                              
Service charges on deposit accounts      7,499        7,158        6,189        14,656        12,083  
Other service charges and fees      1,702        1,664        1,278        3,367        2,512  
Interchange fees, net      5,612        5,045        4,792        10,656        9,280  
Fiduciary and asset management fees      5,698        5,054        4,040        10,752        7,096  
Mortgage banking income, net      2,785        1,454        —        4,240        —  
Gains (losses) on securities transactions, net      51        151        (88 )      202        125  
Bank owned life insurance income      2,075        2,055        1,728        4,129        3,395  
Loan-related interest rate swap fees, net      3,716        1,460        898        5,176        1,617  
Gain on Shore Premier sale      —        —        20,899        —        20,899  
Other operating income      1,440        897        861        2,337        3,858  
Total noninterest income      30,578        24,938        40,597        55,515        60,865  
Noninterest expenses:                              
Salaries and benefits      50,390        48,007        40,777        98,398        81,518  
Occupancy expenses      7,534        7,399        6,159        14,935        12,226  
Furniture and equipment expenses      3,542        3,396        3,103        6,938        6,041  
Printing, postage, and supplies      1,252        1,242        1,282        2,494        2,342  
Communications expense      1,157        1,005        1,009        2,162        2,104  
Technology and data processing      5,739        5,676        4,322        11,415        8,881  
Professional services      2,630        2,958        2,671        5,587        5,225  
Marketing and advertising expense      2,908        2,383        3,288        5,291        4,725  
FDIC assessment premiums and other insurance      2,601        2,639        1,882        5,239        4,067  
Other taxes      4,044        3,764        2,895        7,808        5,782  
Loan-related expenses      2,396        2,289        1,843        4,685        3,158  
OREO and credit-related expenses      1,473        684        1,122        2,157        2,654  
Amortization of intangible assets      4,937        4,218        3,215        9,154        6,396  
Training and other personnel costs      1,477        1,144        1,125        2,621        2,132  
Merger-related costs      6,371        18,122        8,273        24,493        35,985  
Rebranding expense      4,012        407        —        4,420        —  
Other expenses      3,145        1,395        2,174        4,538        3,649  
Total noninterest expenses      105,608        106,728        85,140        212,335        186,885  
Income from continuing operations before income taxes      58,264        41,965        61,478        100,229        79,949  
Income tax expense      9,356        6,249        11,678        15,606        13,575  
Income from continuing operations      48,908        35,716     $  49,800        84,623        66,374  
Discontinued operations:                              
Income (loss) from operations of discontinued mortgage segment   $  (114 )   $  (115 )   $  (3,085 )      (229 )      (3,008 )
Income tax expense (benefit)      (29 )      (30 )      (612 )      (59 )      (600 )
Income (loss) on discontinued operations      (85 )      (85 )      (2,473 )      (170 )      (2,408 )
Net income   $  48,823     $  35,631     $  47,327     $  84,453     $  63,966  
Basic earnings per common share   $  0.59     $  0.47     $  0.72     $  1.06     $  0.97  
Diluted earnings per common share   $  0.59     $  0.47     $  0.72     $  1.06     $  0.97  


   
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)  
   
    For the Quarter Ended
    June 30, 2019   March 31, 2019  
          Interest             Interest      
    Average   Income /   Yield /   Average   Income /   Yield /  
    Balance   Expense  (1)   Rate  (1)(2)   Balance   Expense  (1)   Rate  (1)(2)  
Assets:   (unaudited)   (unaudited)  
Securities:                                  
Taxable   $  1,705,977     $  13,333    3.13 $  1,661,179     $  13,067    3.19 %
Tax-exempt      1,032,551        10,646    4.14    984,250        10,123    4.17 %
Total securities      2,738,528        23,979    3.51    2,645,429        23,190    3.56 %
Loans, net (3) (4)      12,084,961        158,935    5.28    11,127,390        144,499    5.27 %
Other earning assets      179,237        1,131    2.53    118,429        711    2.43 %
Total earning assets      15,002,726     $  184,045    4.92    13,891,248     $  168,400    4.92 %
Allowance for loan losses      (41,174 )                (43,002 )            
Total non-earning assets      2,035,979                  1,851,497              
Total assets   $  16,997,531               $  15,699,743              
                                   
Liabilities and Stockholders' Equity:                                  
Interest-bearing deposits:                                  
Transaction and money market accounts   $  6,215,912     $  16,139    1.04 $  5,876,491     $  14,369    0.99
Regular savings      776,683        416    0.21    733,286        400    0.22
Time deposits (5)      2,562,498        12,254    1.92    2,325,218        9,661    1.69
Total interest-bearing deposits      9,555,093        28,809    1.21    8,934,995        24,430    1.11
Other borrowings (6)      1,847,325        13,722    2.98    1,790,656        13,675    3.10
Total interest-bearing liabilities      11,402,418        42,531    1.50    10,725,651        38,105    1.44
                                   
Noninterest-bearing liabilities:                                  
Demand deposits      2,898,609                  2,534,940              
Other liabilities      206,455                  170,757              
Total liabilities      14,507,482                  13,431,348              
Stockholders' equity      2,490,049                  2,268,395              
Total liabilities and stockholders' equity   $  16,997,531               $  15,699,743              
                                   
Net interest income         $  141,514             $  130,295      
                                   
Interest rate spread                3.42              3.48
Cost of funds                1.14              1.12
Net interest margin                3.78              3.80

(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 $7.7 million and $5.6 million for the three months ended June 30, 2019 and March 31, 2019, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5)        Interest expense on time deposits includes $213,000 and $292,000 for the three months ended June 30, 2019 and March 31, 2019, respectively, in accretion of the fair market value adjustments related to acquisitions.
(6)        Interest expense on borrowings includes $70,000 for both the three months ended June 30, 2019 and March 31, 2019, in amortization of the fair market value adjustments related to acquisitions.

Contact:               
Robert M. Gorman - (804) 523‑7828
Executive Vice President / Chief Financial Officer

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