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

Annual report pursuant to Section 13 and 15(d)

Parent Company Financial Information

Parent Company Financial Information

12 Months Ended

Dec. 31, 2011

Parent Company Financial Information [Abstract]

17. PARENT COMPANY FINANCIAL INFORMATION

The primary source of funds for the dividends paid by Union First Market Bankshares Corporation (the "Parent Company") is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2011, the aggregate amount of unrestricted funds, which could be transferred from the Company's Bank to the Parent Company, without prior regulatory approval, totaled approximately $45.2 million, or 10.7%, of the consolidated net assets.

Financial information for the Parent Company is as follows:

PARENT COMPANY

BALANCE SHEETS

AS OF DECEMBER 31, 2011 and 2010

(Dollars in thousands)


	2011		2010
ASSETS
Cash	$	7,275	$	29,217
Securities available for sale, at fair value		—		13,158
Bank premises and equipment, net		13,591		16,135
Other assets		3,837		4,648
Investment in subsidiaries		474,412		439,183

Total assets	$	499,115	$	502,341

LIABILITIES & STOCKHOLDERS' EQUITY
Long-term borrowings	$	10,000	$	10,625
Trust preferred capital notes		60,310		60,310
Other liabilities		7,166		3,321

Total liabilities		77,476		74,256

Preferred stock		—		35,595
Common stock		34,672		34,532
Surplus		187,493		185,763
Retained earnings		189,824		169,801
Discount on preferred stock		—		(1,177	)
Accumulated other comprehensive income		9,650		3,571

Total stockholders' equity		421,639		428,085

Total liabilities and stockholders' equity	$	499,115	$	502,341

PARENT COMPANY

STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2011, 2010 and 2009

(Dollars in thousands)


	2011			2010		2009
Income:
Interest and dividend income	$	624		$	805	$	882
Management fee received from subsidiaries		—			23,952		17,297
Dividends received from subsidiaries		8,612			7,094		7,318
Equity in undistributed net income from subsidiaries		23,941			18,116		3,142
Gains on sale of securities, net		430			—		—
Gains (losses) on sale of fixed assets, net		(1	)		448		(9	)
Other operating income		1,616			5		—

Total income		35,222			50,420		28,630

Expenses:
Interest expense		2,627			2,037		2,452
Salaries and benefits		—			15,423		10,005
Occupancy expenses		590			1,043		959
Furniture and equipment expenses		1,023			1,794		1,422
Other operating expenses		537			7,201		5,432

Total expenses		4,777			27,498		20,270

Net income		30,445			22,922		8,360
Dividends paid on preferred stock		1,499			1,688		2,696
Amortization of discount on preferred stock		1,177			226		2,790

Net income available to common stockholders	$	27,769		$	21,008	$	2,874

PARENT COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2011, 2010 and 2009

(Dollars in thousands)


	2011			2010			2009
Operating activities:
Net income	$	30,445		$	22,922		$	8,360
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiaries		(23,941	)		(18,116	)		(3,142	)
Tax benefit from exercise of equity-based awards		15			7			4
Decrease (increase) in other assets		6,135			(3,613	)		4,741
Other, net		7,706			5,320			2,743

Net cash and cash equivalents provided by operating activities		20,360			6,520			12,706

Investing activities:
Purchases of investment securities		—			—			(16,315	)
Sale of securities available for sale		12,421			3,994			—
Net decrease (increase) in bank premises and equipment		1,455			(274	)		(569	)
Payments for investments in and advances to subsidiaries		(11,287	)		(5,547	)		(5,746	)

Net cash and cash equivalents provided by (used in) investing activities		2,589			(1,827	)		(22,630	)

Financing activities:
Net decrease in long-term borrowings		(625	)		(625	)		(625	)
Cash dividends paid		(9,245	)		(7,942	)		(7,068	)
Repurchase of preferred stock		(35,595	)		—			(59,499	)
Issuance of common stock		574			352			59,390

Net cash and cash equivalents used in financing activities		(44,891	)		(8,215	)		(7,802	)

Decrease in cash and cash equivalents		(21,942	)		(3,522	)		(17,726	)
Cash and cash equivalents at beginning of the period		29,217			32,739			50,465

Cash and cash equivalents at end of the period	$	7,275		$	29,217		$	32,739

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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