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)

3 Months Ended

Mar. 31, 2013

Schedule of financial assets and liabilities measured at fair value on recurring basis


	Fair Value Measurements at March 31, 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	$	—	$	10	$	—	$	10
Securities available for sale:
U.S. government and agency securities		—		2,818		—		2,818
Obligations of states and political subdivisions		—		243,797		—		243,797
Corporate and other bonds		—		6,780		—		6,780
Mortgage-backed securities		—		326,460		—		326,460
Other securities		—		3,362		—		3,362

LIABILITIES

Interest rate swap - loans	$	—	$	10	$	—	$	10
Cash flow hedge - trust		—		4,203		—		4,203


	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		—		4,489		—		4,489

Schedule of financial assets measured at fair value on nonrecurring basis


	Fair Value Measurements at March 31, 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	$	—	$	127,106	$	—	$	127,106
Impaired loans		—		—		45,938		45,938
Other real estate owned		—		—		35,878		35,878


	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


	Fair Value Measurements at March 31, 2013
	Fair Value		Valuation Technique(s)	Unobservable Inputs	Weighted Average
ASSETS

Commercial Construction	$	7,804	Market comparables	Discount applied to market comparables ⁽¹⁾		8	%
Commercial Real Estate - Owner Occupied		1,866	Market comparables	Discount applied to market comparables ⁽¹⁾		16	%
Commercial Real Estate - Non-Owner Occupied		12,983	Market comparables	Discount applied to market comparables ⁽¹⁾		11	%
Raw Land and Lots		10,077	Market comparables	Discount applied to market comparables ⁽¹⁾		4	%
Single Family Investment Real Estate		2,810	Market comparables	Discount applied to market comparables ⁽¹⁾		15	%
Commercial and Industrial		7,492	Market comparables	Discount applied to market comparables ⁽¹⁾		21	%
Other ⁽²⁾		2,906	Market comparables	Discount applied to market comparables ⁽¹⁾		16	%

Total Impaired Loans		45,938

Other real estate owned		35,878	Market comparables	Discount applied to market comparables ⁽¹⁾		32	%

Total	$	81,816

⁽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 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


			Fair Value Measurements at March 31, 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	$	76,893	$	76,893	$	—	$	—	$	76,893
Securities available for sale		583,217		—		583,217		—		583,217
Restricted stock		17,956		—		17,956		—		17,956
Loans held for sale		127,106		—		127,106		—		127,106
Net loans		2,939,132		—		—		2,965,170		2,965,170
Interest rate swap - loans		10		—		10		—		10
Accrued interest receivable		18,063		—		18,063		—		18,063

LIABILITIES
Deposits	$	3,311,749	$	—	$	3,321,706	$	—	$	3,321,706
Borrowings		269,721		—		251,438		—		251,438
Accrued interest payable		1,258		—		1,258		—		1,258
Cash flow hedge - trust		4,203		—		4,203		—		4,203
Interest rate swap - loans		10		—		10		—		10


			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		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

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