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)

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012 (dollars in thousands):


	Fair Value Measurements at September 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
Cash flow hedge - prime loan swap		-		672		-		672
Securities available for sale:
U.S. government and agency securities		-		2,631		-		2,631
Obligations of states and political subdivisions		-		237,241		-		237,241
Corporate and other bonds		-		5,544		-		5,544
Mortgage-backed securities		-		340,425		-		340,425
Other securities		-		3,596		-		3,596

LIABILITIES
Interest rate swap - loans	$	-	$	21	$	-	$	21
Cash flow hedge - trust preferred		-		3,336		-		3,336


			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 tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at September 30, 2013 and December 31, 2012 (dollars in thousands):


		Fair Value Measurements at September 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	$		-	$	58,179	$	-	$	58,179
Impaired loans			-		-		13,934		13,934
Other real estate owned			-		-		35,709		35,709


		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 September 30, 2013 (dollars in thousands):


	Fair Value Measurements at September 30, 2013
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS
Commercial Construction	$	102	Market comparables	Discount applied to market comparables ⁽¹⁾	0%
Commercial Real Estate - Owner Occupied		4,120	Market comparables	Discount applied to market comparables ⁽¹⁾	36%
Raw Land and Lots		1,750	Market comparables	Discount applied to market comparables ⁽¹⁾	6%
Single Family Investment Real Estate		1,892	Market comparables	Discount applied to market comparables ⁽¹⁾	5%
Commercial and Industrial		4,148	Market comparables	Discount applied to market comparables ⁽¹⁾	48%
Other ⁽²⁾		1,922	Market comparables	Discount applied to market comparables ⁽¹⁾	16%
Total Impaired Loans		13,934

Other real estate owned		35,709	Market comparables	Discount applied to market comparables ⁽¹⁾	32%
Total	$	49,643

⁽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 September 30, 2013 and December 31, 2012 are as follows (dollars in thousands):


			Fair Value Measurements at September 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	$	75,082	$	75,082	$	-	$	-	$	75,082
Securities available for sale		589,437		-		589,437		-		589,437
Restricted stock		19,531		-		19,531		-		19,531
Loans held for sale		58,179		-		58,179		-		58,179
Net loans		2,968,369		-		-		2,986,177		2,986,177
Cash flow hedge - prime loan swap		672		-		672		-		672
Interest rate swap - loans		21		-		21		-		21
Accrued interest receivable		14,221		-		14,221		-		14,221

LIABILITIES
Deposits	$	3,224,925	$	-	$	3,229,448	$	-	$	3,229,448
Borrowings		349,995		-		330,175		-		330,175
Accrued interest payable		954		-		954		-		954
Cash flow hedge - trust preferred		3,336		-		3,336		-		3,336
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).

+ References + Details

- 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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details