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Press Release

Atlantic Union Bankshares Reports Second Quarter Results

Company Release - 7/18/2019 7:30 AM ET

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