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

Annual report pursuant to Section 13 and 15(d)

Loans and Allowance for Loan Losses (Tables)

Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Loans and Allowance for Loan Losses [Abstract]

Loans stated at face amount, net of unearned income


	2012		2011
Commercial:
Commercial Construction	$	202,344	$	185,359
Commercial Real Estate - Owner Occupied		513,671		452,407
Commercial Real Estate - Non-Owner Occupied		682,760		655,083
Raw Land and Lots		205,726		214,284
Single Family Investment Real Estate		233,395		192,437
Commercial and Industrial		217,661		212,268
Other Commercial		47,551		44,403
Consumer:
Mortgage		220,567		219,646
Consumer Construction		33,969		20,757
Indirect Auto		157,518		162,708
Indirect Marine		36,586		39,819
HELOCs		288,092		277,101
Credit Card		21,968		19,006
Other Consumer		105,039		123,305

Total	$	2,966,847	$	2,818,583

Summary of aging of the loan portfolio, by class


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		Purchased Impaired (net of credit mark)		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	—	$	—	$	—	$	—	$	5,781	$	196,563	$	202,344
Commercial Real Estate - Owner Occupied		2,105		153		1,711		247		2,206		507,249		513,671
Commercial Real Estate - Non-Owner Occupied		866		63		207		—		812		680,812		682,760
Raw Land and Lots		277		—		75		2,942		8,760		193,672		205,726
Single Family Investment Real Estate		1,819		261		756		326		3,420		226,813		233,395
Commercial and Industrial		506		270		441		79		2,036		214,329		217,661
Other Commercial		70		182		1		—		193		47,105		47,551
Consumer:
Mortgage		5,610		2,244		3,017		—		747		208,949		220,567
Consumer Construction		157		—		—		—		235		33,577		33,969
Indirect Auto		2,504		276		329		21		—		154,388		157,518
Indirect Marine		67		—		114		—		158		36,247		36,586
HELOCs		3,063		640		1,239		845		1,325		280,980		288,092
Credit Card		269		101		397		—		—		21,201		21,968
Other Consumer		1,525		487		556		105		533		101,833		105,039

Total	$	18,838	$	4,677	$	8,843	$	4,565	$	26,206	$	2,903,718	$	2,966,847


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		Purchased Impaired (net of credit mark)		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	—	$	—	$	490	$	—	$	10,276	$	174,593	$	185,359
Commercial Real Estate - Owner Occupied		520		—		2,482		1,292		5,962		442,151		452,407
Commercial Real Estate - Non-Owner Occupied		190		64		2,887		1,133		2,031		648,778		655,083
Raw Land and Lots		94		1,124		—		5,623		13,322		194,121		214,284
Single Family Investment Real Estate		779		70		3,637		388		5,048		182,515		192,437
Commercial and Industrial		601		185		3,369		392		5,297		202,424		212,268
Other Commercial		—		25		—		—		238		44,140		44,403
Consumer:
Mortgage		6,748		412		3,804		—		240		208,442		219,646
Consumer Construction		—		—		—		—		207		20,550		20,757
Indirect Auto		2,653		416		443		40		7		159,149		162,708
Indirect Marine		189		795		—		—		544		38,291		39,819
HELOCs		1,678		547		820		865		885		272,306		277,101
Credit Card		245		184		323		—		—		18,254		19,006
Other Consumer		1,421		443		1,657		164		777		118,843		123,305

Total	$	15,118	$	4,265	$	19,912	$	9,897	$	44,834	$	2,724,557	$	2,818,583

Purchased impaired commercial and consumer loan portfolios, by class


	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Real Estate - Owner Occupied	$	—	$	193	$	54	$	247
Raw Land and Lots		—		81		2,861		2,942
Single Family Investment Real Estate		—		14		312		326
Commercial and Industrial		—		79		—		79
Consumer:
Indirect Auto		3		2		16		21
HELOCs		—		51		794		845
Other Consumer		—		—		105		105

Total	$	3	$	420	$	4,142	$	4,565


	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Real Estate - Owner Occupied	$	206	$	50	$	1,036	$	1,292
Commercial Real Estate - Non-Owner Occupied		—		1,133		—		1,133
Raw Land and Lots		—		—		5,623		5,623
Single Family Investment Real Estate		—		—		388		388
Commercial and Industrial		—		302		90		392
Consumer:
Indirect Auto		6		11		23		40
HELOCs		19		32		814		865
Other Consumer		—		77		87		164

Total	$	231	$	1,605	$	8,061	$	9,897

Impaired loans individually evaluated for impairment, by class


	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	28,212	$	28,695	$	—	$	28,925	$	1,237
Commercial Real Estate - Owner Occupied		13,356		13,449		—		14,362		773
Commercial Real Estate - Non-Owner Occupied		13,997		14,076		—		15,153		768
Raw Land and Lots		40,421		40,485		—		43,162		1,537
Single Family Investment Real Estate		5,348		6,046		—		6,887		242
Commercial and Industrial		1,582		1,610		—		1,926		105
Consumer:
Mortgage		857		857		—		892		43
Indirect Auto		4		4		—		8		—
Indirect Marine		158		283		—		283		3
HELOCs		1,330		1,429		—		1,481		5
Other Consumer		125		127		—		129		—

Total impaired loans without a specific allowance	$	105,390	$	107,061	$	—	$	113,208	$	4,713


Loans with a specific allowance
Commercial:
Commercial Construction	$	3,786	$	3,834	$	596	$	4,614	$	157
Commercial Real Estate - Owner Occupied		2,699		2,838		698		2,878		30
Commercial Real Estate - Non-Owner Occupied		13,791		13,828		691		13,896		761
Raw Land and Lots		9,711		9,919		2,411		10,656		145
Single Family Investment Real Estate		1,740		1,826		499		1,953		47
Commercial and Industrial		2,413		2,573		603		2,584		31
Other Commercial		134		134		28		134		—
Consumer:
Mortgage		545		549		154		550		—
Consumer Construction		235		262		106		230		—
HELOCs		1,563		1,630		942		1,840		25
Other Consumer		408		438		193		438		2

Total impaired loans with a specific allowance	$	37,025	$	37,831	$	6,921	$	39,773	$	1,198

Total loans individually evaluated for impairment	$	142,415	$	144,892	$	6,921	$	152,981	$	5,911


	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	40,475	$	40,524	$	—	$	37,835	$	1,690
Commercial Real Estate - Owner Occupied		20,487		21,010		—		23,364		1,183
Commercial Real Estate - Non-Owner Occupied		37,799		37,855		—		38,084		2,002
Raw Land and Lots		46,791		46,890		—		47,808		1,306
Single Family Investment Real Estate		11,285		11,349		—		11,684		637
Commercial and Industrial		9,467		9,959		—		10,216		423
Other Commercial		1,257		1,257		—		1,269		75
Consumer:
Mortgage		1,202		1,202		—		1,225		70
HELOCs		349		349		—		350		11
Other Consumer		—		—		—		1		—

Total impaired loans without a specific allowance	$	169,112	$	170,395	$	—	$	171,836	$	7,397


Loans with a specific allowance
Commercial:
Commercial Construction	$	12,927	$	13,297	$	583	$	13,811	$	343
Commercial Real Estate - Owner Occupied		8,679		8,788		1,961		8,681		267
Commercial Real Estate - Non-Owner Occupied		8,858		8,879		1,069		9,010		322
Raw Land and Lots		22,188		22,429		991		24,553		973
Single Family Investment Real Estate		9,020		9,312		1,140		9,571		321
Commercial and Industrial		8,980		9,133		3,320		10,448		369
Other Commercial		150		150		3		153		10
Consumer:
Mortgage		535		535		11		536		32
Consumer Construction		207		226		86		228		—
Indirect Auto		71		71		—		93		5
Indirect Marine		544		547		263		548		9
HELOCs		785		825		587		1,034		—
Other Consumer		777		804		284		815		5

Total impaired loans with a specific allowance	$	73,721	$	74,996	$	10,298	$	79,481	$	2,656

Total loans individually evaluated for impairment	$	242,833	$	245,391	$	10,298	$	251,317	$	10,053

Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement


	December 31, 2012						December 31, 2011
	No. of Loans		Recorded Investment		Outstanding Commitment		No. of Loans		Recorded Investment		Outstanding Commitment
Performing
Commercial:
Commercial Construction		5	$	4,549	$	73		14	$	21,461	$	3,185
Commercial Real Estate - Owner Occupied		11		6,009		—		11		7,996		180
Commercial Real Estate - Non-Owner Occupied		10		13,103		—		16		21,777		13
Raw Land and Lots		13		22,886		—		15		32,450		1
Single Family Investment Real Estate		6		928		—		12		8,525		—
Commercial and Industrial		5		1,041		—		12		4,991		204
Other Commercial		1		236		—		4		864		—
Consumer:
Mortgage		12		2,256		—		1		507		—
Other Consumer		4		460		—		2		263		—

Total performing		67	$	51,468	$	73		87	$	98,834	$	3,583


Nonperforming
Commercial:
Commercial Construction		4	$	4,260	$	—		5	$	5,353	$	—
Commercial Real Estate - Owner Occupied		3		1,079		—		—		—		—
Commercial Real Estate - Non-Owner Occupied		2		514		—		2		292		—
Raw Land and Lots		2		4,032		—		6		4,342		—
Single Family Investment Real Estate		2		427		—		4		1,342		—
Commercial and Industrial		7		1,251		—		3		1,134		—
Consumer:
Mortgage		1		202		—		5		1,076		—
Indirect Marine		1		158		—		—		—		—
Other Consumer		1		68		—		1		265		—

Total nonperforming		23	$	11,991	$	—		26	$	13,804	$	—

Total performing and nonperforming		90	$	63,459	$	73		113	$	112,638	$	3,583

Schedule of TDR by class and modification type


	All Restructurings				Restructurings with payment default
	No. of Loans		Recorded investment at period end		No. of Loans		Recorded investment at period end
Modified to interest only, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied		1	$	216		—	$	—
Commercial Real Estate - Non-Owner Occupied		2		759		—		—
Raw Land and Lots		3		257		—		—
Single Family Investment Real Estate		2		173		—		—
Consumer:
Mortgage		1		124		—		—
Indirect Marine		1		158		1		158

Total interest only at market rate of interest		10	$	1,687		1	$	158


Term modification, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied		5	$	5,328		2	$	1,356
Commercial Real Estate - Non-Owner Occupied		2		715		—		—
Raw Land and Lots		1		595		—		—
Commercial and Industrial		6		408		—		—
Consumer:
Mortgage		5		858		—		—
Indirect Marine		—		—		1		26
Other Consumer		4		460		—		—

Total loan term extended at a market rate		23	$	8,364		3	$	1,382


Term modification, below market rate
Commercial:
Commercial Real Estate - Owner Occupied		4	$	647		—	$	—
Raw Land and Lots		1		59		—		—
Consumer:
Mortgage		1		64		—		—
Other Consumer		1		68		—		—

Total loan term extended at a below market rate		7	$	838		—	$	—


Interest rate modification, below market rate
Commercial:
Commercial Real Estate - Non-Owner Occupied		2	$	2,390		—	$	—

Total interest only at below market rate of interest		2	$	2,390		—	$	—

Total		42	$	13,279		4	$	1,540


	All Restructurings				Restructurings with payment default
	No. of Loans		Recorded investment at period end		No. of Loans		Recorded investment at period end
Modified to interest only, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied		2	$	398		—	$	—
Commercial Real Estate - Non-Owner Occupied		1		218		—		—
Raw Land and Lots		1		341		1		341
Single Family Investment Real Estate		1		93		—		—

Total interest only at market rate of interest		5	$	1,050		1	$	341


Term modification, at a market rate
Commercial:
Commercial Construction		15	$	22,223		—	$	—
Commercial Real Estate - Owner Occupied		5		4,908		—		—
Commercial Real Estate - Non-Owner Occupied		16		21,551		—		—
Raw Land and Lots		13		25,784		—		—
Single Family Investment Real Estate		11		7,279		—		—
Commercial and Industrial		13		5,763		2		422
Other Commercial		4		864		—		—
Consumer:
Mortgage		4		538		—		—
Other Consumer		3		527		—		—

Total loan term extended at a market rate		84	$	89,437		2	$	422


Term modification, below market rate
Commercial:
Commercial Construction		4	$	4,591		—	$	—
Commercial Real Estate - Owner Occupied		2		546		—		—
Raw Land and Lots		5		4,786		—		—
Single Family Investment Real Estate		4		2,495		1		1,390
Commercial and Industrial		2		362		—		—
Consumer:
Mortgage		1		507		—		—

Total loan term extended at a below market rate		18	$	13,287		1	$	1,390

Total		107	$	103,774		4	$	2,153

Allowance for loan loss activity, by portfolio segment, balances for allowance for credit losses, and loans based on impairment methodology


	Commercial			Consumer			Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year	$	27,891		$	11,498		$	81		$	39,470
Recoveries credited to allowance		589			1,122			—			1,711
Loans charged off		(12,852	)		(5,613	)		—			(18,465	)
Provision charged to operations		9,193			3,100			(93	)		12,200

Balance, end of period	$	24,821		$	10,107		$	(12	)	$	34,916


Ending balance: individually evaluated for impairment		5,404			1,395			—			6,799


Ending balance: collectively evaluated for impairment		19,295			8,712			(12	)		27,995


Ending balance: loans acquired with deteriorated credit quality		122			—			—			122


Total	$	24,821		$	10,107		$	(12	)	$	34,916


Loans:
Ending balance: individually evaluated for impairment	$	133,596		$	4,254		$	—		$	137,850


Ending balance: collectively evaluated for impairment		1,965,918			858,514			—			2,824,432


Ending balance: loans acquired with deteriorated credit quality		3,594			971			—			4,565


Total	$	2,103,108		$	863,739		$	—		$	2,966,847


	Commercial			Consumer			Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year	$	28,255		$	10,189		$	(38	)	$	38,406
Recoveries credited to allowance		924			1,206			—			2,130
Loans charged off		(10,891	)		(6,975	)		—			(17,866	)
Provision charged to operations		9,603			7,078			119			16,800

Balance, end of year	$	27,891		$	11,498		$	81		$	39,470


Ending balance: individually evaluated for impairment		8,982			1,231			—			10,213


Ending balance: collectively evaluated for impairment		18,824			10,267			81			29,172


Ending balance: loans acquired with deteriorated credit quality		85			—			—			85


Total	$	27,891		$	11,498		$	81		$	39,470


Loans:
Ending balance: individually evaluated for impairment	$	229,535		$	3,401		$	—		$	232,936


Ending balance: collectively evaluated for impairment		1,717,878			857,872			—			2,575,750


Ending balance: loans acquired with deteriorated credit quality		8,828			1,069			—			9,897


Total	$	1,956,241		$	862,342		$	—		$	2,818,583


	Commercial		Consumer		Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year								$	30,484
Recoveries credited to allowance									2,103
Loans charged off									(18,549	)
Provision charged to operations									24,368

Balance, end of year	$	28,255	$	10,189	$	(38	)	$	38,406


Ending balance: individually evaluated for impairment		10,065		701		—			10,766


Ending balance: collectively evaluated for impairment		17,699		9,488		(38	)		27,149


Ending balance: loans acquired with deteriorated credit quality		491		—		—			491


Total	$	28,255	$	10,189	$	(38	)	$	38,406


Loans:
Ending balance: individually evaluated for impairment	$	257,175	$	3,758	$	—		$	260,933


Ending balance: collectively evaluated for impairment		1,669,650		892,671		—			2,562,321


Ending balance: loans acquired with deteriorated credit quality		12,800		1,199		—			13,999


Total	$	1,939,625	$	897,628	$	—		$	2,837,253

Loans receivables related risk rating excluding purchased impaired loans


	1-3		4		5		6		7		8		Total
Commercial Construction	$	5,504	$	117,769	$	14,637	$	33,815	$	30,619	$	—	$	202,344
Commercial Real Estate - Owner Occupied		145,977		321,486		15,197		19,051		11,713		—		513,424
Commercial Real Estate - Non-Owner Occupied		161,343		417,412		48,840		34,646		20,519		—		682,760
Raw Land and Lots		3,943		114,053		13,260		29,194		42,148		186		202,784
Single Family Investment Real Estate		43,705		156,636		12,111		13,150		7,467		—		233,069
Commercial and Industrial		68,308		120,442		10,584		12,064		6,045		139		217,582
Other Commercial		14,189		18,260		10,710		3,489		844		59		47,551

Total	$	442,969	$	1,266,058	$	125,339	$	145,409	$	119,355	$	384	$	2,099,514

The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating as of December 31, 2011. The risk rating information has been updated through December 31, 2011 (dollars in thousands):


	1-3		4		5		6		7		8		Total
Commercial Construction	$	10,099	$	84,299	$	6,079	$	36,650	$	48,232	$	—	$	185,359
Commercial Real Estate - Owner Occupied		88,430		296,825		17,604		21,158		26,389		709		451,115
Commercial Real Estate - Non-Owner Occupied		149,346		367,244		58,844		38,662		39,854		—		653,950
Raw Land and Lots		4,368		99,374		18,767		33,673		52,204		275		208,661
Single Family Investment Real Estate		32,741		116,570		11,928		14,358		16,452		—		192,049
Commercial and Industrial		35,120		123,872		22,079		11,559		19,066		180		211,876
Other Commercial		6,364		15,918		16,739		3,807		1,512		63		44,403

Total	$	326,468	$	1,104,102	$	152,040	$	159,867	$	203,709	$	1,227	$	1,947,413

Loans receivables related risk rating including purchased impaired loans


	5		6		7		8		Total
Commercial Real Estate - Owner Occupied	$	—	$	—	$	247	$	—	$	247
Raw Land and Lots		—		—		2,942		—		2,942
Single Family Investment Real Estate		312		—		14		—		326
Commercial and Industrial		—		—		79		—		79

Total	$	312	$	—	$	3,282	$	—	$	3,594


	6		7		8		Total
Commercial Real Estate - Owner Occupied	$	—	$	1,292	$	—	$	1,292
Commercial Real Estate - Non-Owner Occupied		—		1,133		—		1,133
Raw Land and Lots		—		5,623		—		5,623
Single Family Investment Real Estate		369		19		—		388
Commercial and Industrial		—		91		301		392

Total	$	369	$	8,158	$	301	$	8,828

Schedule of acquired loan portfolio and accretable yield


	December 31, 2012												December 31, 2011
	Purchased Impaired						Purchased Nonimpaired						Purchased Impaired						Purchased Nonimpaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	5,140		$	9,897		$	9,010		$	663,510		$	8,169		$	13,999		$	13,589		$	799,898
Additions		—			—			—			—			122			276			1,593			70,524
Accretion		(353	)		—			(3,660	)		—			(66	)		—			(6,172	)		—
Charge-offs, net		(1,640	)		(412	)		—			(2,320	)		(3,073	)		(1,329	)		—			(5,988	)
Transfers to OREO		—			(2,371	)		—			(2,895	)		(12	)		(174	)		—			(2,341	)
Payments received, net		—			(2,549	)		—			(185,012	)		—			(2,875	)		—			(198,583	)

Balance at end of period	$	3,147		$	4,565		$	5,350		$	473,283		$	5,140		$	9,897		$	9,010		$	663,510