Atlantic Union Bankshares Corporation Annual report pursuant to Section 13 and 15(d)

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

The tables below provide information about the Company’s lessee lease portfolio and other supplemental lease information (dollars in thousands):

December 31, 2020

December 31, 2019

Operating

Finance

Operating⁽²⁾

Right-of-use-assets

48,051

7,425

54,941

Lease liabilities

58,901

10,621

66,052

Lease Term and Discount Rate of Operating leases:

Weighted-average remaining lease term (years)

7.27

8.08

7.36

Weighted-average discount rate ⁽¹⁾

2.66

1.17

2.69

(1)	An incremental borrowing rate is used based on information available at commencement date of lease or at remeasurement date.

(2)	At December 31, 2019, all leases were classified as operating leases.


	Year ended December 31,
	2020		2019
Cash paid for amounts included in measurement of lease liabilities:
Operating Cash Flows from Finance Leases	$	72	$	—
Operating Cash Flows from Operating Leases		13,491		13,697
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		4,577		8,065
Finance leases		10,549		—


	Year ended December 31,
		2020		2019
Net Operating Lease Cost	$	11,006	$	11,526
Finance Lease Cost:
Amortization of right-of-use assets		536		—
Interest on lease liabilities		72		—
Total Lease Cost	$	11,614	$	11,526

The maturities of lessor and lessee arrangements outstanding are presented in the table below (dollars in thousands):


	December 31, 2020
	Lessor		Lessee
		Sales-type and Direct Financing	Operating		Finance
2021	$	30,206	$	11,912	$	1,261
2022		30,969		10,764		1,292
2023		29,306		9,903		1,325
2024		27,355		8,903		1,358
2025		18,540		6,643		1,392
Thereafter		14,329		17,196		4,515
Total undiscounted cash flows		150,705		65,321		11,143
Less: Adjustments ⁽¹⁾		9,525		6,420		522
Total ⁽²⁾	$	141,180	$	58,901	$	10,621

(1)	Lessor – unearned income and unearned guaranteed residual value; Lessee – imputed interest.

(2)	Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements