Atlantic Union Bankshares Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013 and December 31, 2012 (dollars in thousands):


	Fair Value Measurements at June 30, 2013 using

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Balance
ASSETS
Interest rate swap - loans	$	-	$	21	$	-	$	21
Securities available for sale:
U.S. government and agency securities		-		2,798		-		2,798
Obligations of states and political subdivisions		-		236,716		-		236,716
Corporate and other bonds		-		5,626		-		5,626
Mortgage-backed securities		-		333,770		-		333,770
Other securities		-		3,402		-		3,402

LIABILITIES
Interest rate swap - loans	$	-	$	21	$	-	$	21
Cash flow hedge - trust - preferred		-		3,354		-		3,354


			Fair Value Measurements at December 31, 2012 using

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Interest rate swap - loans	$	-		$	18	$	-	$	18
Securities available for sale:
U.S. government and agency securities		-			2,849		-		2,849
Obligations of states and political subdivisions		-			229,778		-		229,778
Corporate and other bonds		-			7,212		-		7,212
Mortgage-backed securities		-			342,174		-		342,174
Other securities		-			3,369		-		3,369

LIABILITIES
Interest rate swap - loans	$	-		$	18	$	-	$	18
Cash flow hedge - trust preferred		-			4,489		-		4,489

Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis at June 30, 2013 and December 31, 2012 (dollars in thousands):


		Fair Value Measurements at June 30, 2013 using

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	109,395	$	-	$	109,395
Impaired loans			-		-		23,978		23,978
Other real estate owned			-		-		35,153		35,153


		Fair Value Measurements at December 31, 2012 using

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1			Level 2		Level 3		Balance
ASSETS
Loans held for sale	$		-	$	167,698	$	-	$	167,698
Impaired loans			-		-		30,104		30,104
Other real estate owned			-		-		32,834		32,834

Summary of Quantitative Information About Level 3 Fair Value Measurements

The following table displays quantitative information about Level 3 Fair Value Measurements for June 30, 2013 (dollars in thousands):


	Fair Value Measurements at June 30, 2013
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Construction	$	10,995	Market comparables	Discount applied to market comparables ⁽¹⁾	12%
Commercial Real Estate - Owner Occupied		2,209	Market comparables	Discount applied to market comparables ⁽¹⁾	14%
Commercial Real Estate - Non-Owner Occupied		342	Market comparables	Discount applied to market comparables ⁽¹⁾	0%
Raw Land and Lots		1,852	Market comparables	Discount applied to market comparables ⁽¹⁾	6%
Single Family Investment Real Estate		2,374	Market comparables	Discount applied to market comparables ⁽¹⁾	25%
Commercial and Industrial		3,375	Market comparables	Discount applied to market comparables ⁽¹⁾	43%
Other ⁽²⁾		2,831	Market comparables	Discount applied to market comparables ⁽¹⁾	19%
Total Impaired Loans		23,978

Other real estate owned		35,153	Market comparables	Discount applied to market comparables ⁽¹⁾	31%
Total	$	59,131

⁽¹⁾ A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market.
⁽²⁾ The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer.

The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2012 (dollars in thousands):


	Fair Value Measurements at December 31, 2012
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Construction	$	3,190	Market comparables	Discount applied to market comparables ⁽¹⁾	6%
Commercial Real Estate - Owner Occupied		2,001	Market comparables	Discount applied to market comparables ⁽¹⁾	13%
Commercial Real Estate - Non-Owner Occupied		13,100	Market comparables	Discount applied to market comparables ⁽¹⁾	9%
Raw Land and Lots		7,300	Market comparables	Discount applied to market comparables ⁽¹⁾	6%
Single Family Investment Real Estate		1,241	Market comparables	Discount applied to market comparables ⁽¹⁾	6%
Commercial and Industrial		1,810	Market comparables	Discount applied to market comparables ⁽¹⁾	23%
Other ⁽²⁾		1,462	Market comparables	Discount applied to market comparables ⁽¹⁾	27%
Total Impaired Loans		30,104

Other real estate owned		32,834	Market comparables	Discount applied to market comparables ⁽¹⁾	33%
Total	$	62,938

⁽¹⁾ A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market.
⁽²⁾ The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer.

Carrying Values and Estimated Fair Values of the Company's Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments as of June 30, 2013 and December 31, 2012 are as follows (dollars in thousands):


					Fair Value Measurements at June 30, 2013 using
			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1			Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	71,547	$	71,547		$	-	$	-	$	71,547
Securities available for sale		582,312		-			582,312		-		582,312
Restricted stock		17,956		-			17,956		-		17,956
Loans held for sale		109,395		-			109,395		-		109,395
Net loans		2,966,522		-			-		2,998,353		2,998,353
Interest rate swap - loans		21		-			21		-		21
Accrued interest receivable		17,013		-			17,013		-		17,013

LIABILITIES
Deposits	$	3,265,963	$	-		$	3,271,083	$	-	$	3,271,083
Borrowings		327,647		-			309,859		-		309,859
Accrued interest payable		1,063		-			1,063		-		1,063
Cash flow hedge - trust preferred		3,354		-			3,354		-		3,354
Interest rate swap - loans		21		-			21		-		21


				Fair Value Measurements at December 31, 2012 using
			Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
	Carrying Value		Level 1			Level 2		Level 3		Balance
ASSETS
Cash and cash equivalents	$	82,902	$		82,902	$	-	$	-	$	82,902
Securities available for sale		585,382			-		585,382		-		585,382
Restricted stock		20,687			-		20,687		-		20,687
Loans held for sale		167,698			-		167,698		-		167,698
Net loans		2,931,931			-		-		2,956,339		2,956,339
Interest rate swap - loans		18			-		18		-		18
Accrued interest receivable		19,663			-		19,663		-		19,663

LIABILITIES
Deposits	$	3,297,767	$		-	$	3,309,149	$	-	$	3,309,149
Borrowings		329,395			-		309,019		-		309,019
Accrued interest payable		1,414			-		1,414		-		1,414
Cash flow hedge – trust preferred		4,489			-		4,489		-		4,489
Interest rate swap - loans		18			-		18		-		18

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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