Annual report pursuant to Section 13 and 15(d)

REGULATORY MATTERS AND CAPITAL

v3.19.3.a.u2
REGULATORY MATTERS AND CAPITAL
 12 Months Ended
Dec. 31, 2019
Regulatory Capital Requirements [Abstract]  
REGULATORY MATTERS AND CAPITAL

13. REGULATORY MATTERS AND CAPITAL

Capital resources represent funds, earned or obtained, over which financial institutions can exercise greater or longer control in comparison with deposits and borrowed funds. Management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses, yet allow management to effectively leverage its capital to maximize return to shareholders. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on financial statements of the Company and the Bank. Under capital adequacy guidelines and the regulatory framework for PCA, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. PCA provisions are not applicable to financial holding companies and bank holding companies, but only to their bank subsidiaries.

As of December 31, 2019, the most recent notification from the Federal Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for PCA. To be categorized as “well-capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and common equity Tier 1 ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2019 and 2018 (dollars in thousands):

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Required in Order to Be

 

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Required for Capital

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Well Capitalized Under

 

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Actual

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Adequacy Purposes

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PCA

 

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Amount

    

Ratio

    

Amount

    

Ratio

    

Amount

    

Ratio

 

As of December 31, 2019

 

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Common equity Tier 1 capital to risk weighted assets:

 

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​

  

 

  

 

  

 

  

​

Consolidated

​

$

1,437,908

 

10.24

%  

$

631,893

 

4.50

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,704,426

 

12.18

%  

 

629,714

 

4.50

%  

909,587

 

6.50

%

Tier 1 capital to risk weighted assets:

​

 

  

 

  

​

 

  

 

  

 

  

 

  

​

Consolidated

​

 

1,437,908

 

10.24

%  

 

842,524

 

6.00

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,704,426

 

12.18

%  

 

839,619

 

6.00

%  

1,119,492

 

8.00

%

Total capital to risk weighted assets:

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​

 

  

 

  

 

  

 

  

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Consolidated

​

 

1,773,835

 

12.63

%  

 

1,123,569

 

8.00

%  

NA

 

NA

​

Atlantic Union Bank

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1,747,620

 

12.48

%  

 

1,120,269

 

8.00

%  

1,400,337

 

10.00

%

Tier 1 capital to average adjusted assets:

​

 

  

 

  

​

 

  

 

  

 

  

 

  

​

Consolidated

​

 

1,437,908

 

8.79

%  

 

654,338

 

4.00

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,704,426

 

10.45

%  

 

652,412

 

4.00

%  

815,515

 

5.00

%

As of December 31, 2018

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​

Common equity Tier 1 capital to risk weighted assets:

​

 

  

 

  

​

 

  

 

  

 

  

 

  

​

Consolidated

​

$

1,106,871

 

9.93

%  

$

501,608

 

4.50

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,378,039

 

12.40

%  

 

500,224

 

4.50

%  

722,546

 

6.50

%

Tier 1 capital to risk weighted assets:

​

 

  

 

  

​

 

  

 

  

 

  

 

  

​

Consolidated

​

 

1,236,709

 

11.09

%  

 

668,817

 

6.00

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,378,039

 

12.40

%  

 

666,965

 

6.00

%  

889,287

 

8.00

%

Total capital to risk weighted assets:

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​

 

  

 

  

 

  

 

  

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Consolidated

​

 

1,435,711

 

12.88

%  

 

891,753

 

8.00

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,419,984

 

12.77

%  

 

889,289

 

8.00

%  

1,111,612

 

10.00

%

Tier 1 capital to average adjusted assets:

​

 

  

 

  

​

 

  

 

  

 

  

 

  

​

Consolidated

​

 

1,236,709

 

9.71

%  

 

509,678

 

4.00

%  

NA

 

NA

​

Atlantic Union Bank

​

 

1,378,039

 

10.84

%  

 

508,412

 

4.00

%  

635,515

 

5.00

%

​

In July 2013, the FRB issued a final rule that makes technical changes to its market risk capital rules to align them with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The phase-in period for the final rules began on January 1, 2015. Full compliance with the final rules was phased in on January 1, 2019.