Atlantic Union Bankshares Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans Stated at Face Amount, Net of Unearned Income

The Company’s loans are stated at their face amount, net of deferred fees and costs, and consist of the following at September 30, 2021 and December 31, 2020 (dollars in thousands):


	September 30, 2021		December 31, 2020
Construction and Land Development	$	877,351	$	925,798
Commercial Real Estate - Owner Occupied		2,027,299		2,128,909
Commercial Real Estate - Non-Owner Occupied		3,730,720		3,657,562
Multifamily Real Estate		776,287		814,745
Commercial & Industrial⁽¹⁾		2,580,190		3,263,460
Residential 1-4 Family - Commercial		624,347		671,949
Residential 1-4 Family - Consumer		822,971		822,866
Residential 1-4 Family - Revolving		557,803		596,996
Auto		425,436		401,324
Consumer		182,039		247,730
Other Commercial⁽²⁾		535,143		489,975
Total loans held for investment, net of deferred fees and costs⁽³⁾		13,139,586		14,021,314
Allowance for loan and lease losses		(101,798)		(160,540)
Total loans held for investment, net	$	13,037,788	$	13,860,774

⁽¹⁾ Commercial & industrial loans include approximately $455.8 million and $1.2 billion in loans from the PPP at September 30, 2021 and December 31, 2020, respectively.

⁽²⁾ Other commercial loans include approximately $10.8 million and $11.3 million in loans from the PPP at September 30, 2021 and December 31, 2020, respectively.

⁽³⁾Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $60.0 million and $69.7 million as of September 30, 2021 and December 31, 2020, respectively.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at September 30, 2021 (dollars in thousands):

Greater than

30-59 Days

60-89 Days

90 Days and

Current

Past Due

still Accruing

Nonaccrual

Total Loans

Construction and Land Development

873,535

744

304

2,710

877,351

Commercial Real Estate - Owner Occupied

2,016,831

735

1,886

7,786

2,027,299

Commercial Real Estate - Non-Owner Occupied

3,723,499

1,302

570

1,175

4,174

3,730,720

Multifamily Real Estate

776,174

—

113

776,287

Commercial & Industrial

2,562,455

11,089

3,328

1,256

2,062

2,580,190

Residential 1-4 Family - Commercial

619,306

807

698

1,091

2,445

624,347

Residential 1-4 Family - Consumer

805,765

406

2,188

2,462

12,150

822,971

Residential 1-4 Family - Revolving

549,927

1,092

587

2,474

3,723

557,803

Auto

423,222

1,548

202

209

255

425,436

Consumer

180,705

790

317

173

182,039

Other Commercial

533,912

631

600

—

535,143

Total loans held for investment

13,065,331

19,144

8,609

11,030

35,472

13,139,586

% of total loans

99.43

0.15

0.07

0.08

0.27

100.00

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2020 (dollars in thousands):


										Greater than
				30-59 Days			60-89 Days			90 Days and
	Current			Past Due			Past Due			still Accruing			Nonaccrual			Total Loans
Construction and Land Development	$	920,276		$	1,903		$	547		$	—		$	3,072		$	925,798
Commercial Real Estate - Owner Occupied		2,114,804			1,870			1,380			3,727			7,128			2,128,909
Commercial Real Estate - Non-Owner Occupied		3,651,232			2,144			1,721			148			2,317			3,657,562
Multifamily Real Estate		814,095			617			—			—			33			814,745
Commercial & Industrial		3,257,201			1,848			1,190			1,114			2,107			3,263,460
Residential 1-4 Family - Commercial		657,351			2,227			818			1,560			9,993			671,949
Residential 1-4 Family - Consumer		792,852			10,182			1,533			5,699			12,600			822,866
Residential 1-4 Family - Revolving		587,522			2,975			1,044			826			4,629			596,996
Auto		398,206			2,076			376			166			500			401,324
Consumer		245,551			1,166			550			394			69			247,730
Other Commercial		489,959			16			—			—			—			489,975
Total loans held for investment	$	13,929,049		$	27,024		$	9,159		$	13,634		$	42,448		$	14,021,314
% of total loans		99.34	%		0.19	%		0.07	%		0.10	%		0.30	%		100.00	%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2021, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2021 (dollars in thousands):

Nonaccrual

January 1, 2021

September 30, 2021

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

3,072

2,710

1,985

304

Commercial Real Estate - Owner Occupied

7,128

7,786

1,996

1,886

Commercial Real Estate - Non-Owner Occupied

2,317

4,174

1,089

1,175

Multifamily Real Estate

113

—

Commercial & Industrial

2,107

2,062

1,256

Residential 1-4 Family - Commercial

9,993

2,445

1,091

Residential 1-4 Family - Consumer

12,600

12,150

1,047

2,462

Residential 1-4 Family - Revolving

4,629

3,723

2,474

Auto

500

255

—

209

Consumer

—

173

Total loans held for investment

42,448

35,472

6,178

11,030

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2020, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2020 (dollars in thousands):


	Nonaccrual
	January 1, 2020		December 31, 2020		Nonaccrual With No ALLL		90 Days and still Accruing
Construction and Land Development	$	4,060	$	3,072	$	1,985	$	—
Commercial Real Estate - Owner Occupied		13,889		7,128		1,994		3,727
Commercial Real Estate - Non-Owner Occupied		1,368		2,317		—		148
Multifamily Real Estate		—		33		—		—
Commercial & Industrial		3,037		2,107		1		1,114
Residential 1-4 Family - Commercial		6,492		9,993		6,388		1,560
Residential 1-4 Family - Consumer		13,117		12,600		1,069		5,699
Residential 1-4 Family - Revolving		2,490		4,629		60		826
Auto		565		500		—		166
Consumer		88		69		—		394
Other Commercial		98		—		—		—
Total loans held for investment	$	45,204	$	42,448	$	11,497	$	13,634

Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement

The following table provides a summary, by class, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of September 30, 2021 and December 31, 2020 (dollars in thousands):


	September 30, 2021					December 31, 2020
	No. of	Recorded		Outstanding		No. of	Recorded		Outstanding
	Loans	Investment		Commitment		Loans	Investment		Commitment
Performing
Construction and Land Development	4	$	205	$	—	4	$	215	$	—
Commercial Real Estate - Owner Occupied	4		1,003		—	6		2,033		176
Commercial Real Estate - Non-Owner Occupied	—		—		—	1		1,089		—
Commercial & Industrial	2		413		—	4		727		—
Residential 1-4 Family - Commercial	—		—		—	3		245		—
Residential 1-4 Family - Consumer	75		9,182		—	77		8,943		—
Residential 1-4 Family - Revolving	3		268		4	3		277		—
Consumer	2		16		—	3		22		—
Other Commercial	1		248		—	1		410		—
Total performing	91	$	11,335	$	4	102	$	13,961	$	176
Nonperforming
Commercial Real Estate - Owner Occupied	2	$	831	$	—	1	$	20	$	—
Commercial Real Estate - Non-Owner Occupied	3		1,366		—	1		134		—
Commercial & Industrial	4		362		—	3		237		—
Residential 1-4 Family - Commercial	3		393		—	4		1,296		—
Residential 1-4 Family - Consumer	24		4,312		—	23		4,865		—
Residential 1-4 Family - Revolving	3		101		—	3		103		—
Total nonperforming	39	$	7,365	$	—	35	$	6,655	$	—
Total performing and nonperforming	130	$	18,700	$	4	137	$	20,616	$	176

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the three and nine months ended September 30, 2021 (dollars in thousands):


	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
		Recorded			Recorded
	No. of	Investment at		No. of	Investment at
	Loans	Period End		Loans	Period End
Modified to interest only, at a market rate
Total interest only at market rate of interest	—	$	—	—	$	—

Term modification, at a market rate
Commercial Real Estate - Non-Owner Occupied	1		157	1		157
Residential 1-4 Family - Consumer	—	$	—	2	$	102
Total loan term extended at a market rate	1	$	157	3	$	259

Term modification, below market rate
Residential 1-4 Family - Consumer	—	$	—	11	$	1,813
Consumer	—		—	1		15
Total loan term extended at a below market rate	—	$	—	12	$	1,828

Interest rate modification, below market rate
Residential 1-4 Family - Commercial	—	$	—	1	$	45
Total interest only at below market rate of interest	—	$	—	1	$	45

Total	1	$	157	16	$	2,132

The following table shows, by class and modification type, TDRs that occurred during the three and nine months ended September 30, 2020 (dollars in thousands):


	Three Months Ended September 30, 2020			Nine Months Ended September 30, 2020
		Recorded			Recorded
	No. of	Investment at		No. of	Investment at
	Loans	Period End		Loans	Period End
Modified to interest only, at a market rate
Commercial Real Estate - Owner Occupied	—	$	—	1	$	272
Residential 1-4 Family - Commercial	1		652	1		652
Total interest only at market rate of interest	1	$	652	2	$	924

Term modification, at a market rate
Commercial & Industrial	—	$	—	3	$	127
Residential 1-4 Family - Commercial	1		299	1		299
Residential 1-4 Family - Consumer	—		—	4		324
Consumer	—		—	1		10
Total loan term extended at a market rate	1	$	299	9	$	760

Term modification, below market rate
Construction and Land Development	—	$	—	1	$	34
Commercial & Industrial	1		143	2		358
Residential 1-4 Family - Commercial	1		290	1		290
Residential 1-4 Family - Consumer	4		423	17		2,387
Residential 1-4 Family - Revolving	—		—	1		52
Total loan term extended at a below market rate	6	$	856	22	$	3,121

Interest rate modification, below market rate
Total interest only at below market rate of interest	—	$	—	—	$	—

Total	8	$	1,807	33	$	4,805

Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology

The following tables show the ALLL activity by loan segment for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands):

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

Commercial

Consumer

Total

Commercial

Consumer

Total

Balance at beginning of period

89,837

28,424

118,261

117,403

43,137

160,540

Loans charged-off

(967)

(1,299)

(2,266)

(3,832)

(4,020)

(7,852)

Recoveries credited to allowance

1,281

872

2,153

3,929

2,569

6,498

Provision charged to operations

(15,173)

(1,177)

(16,350)

(42,522)

(14,866)

(57,388)

Balance at end of period

74,978

26,820

101,798

74,978

26,820

101,798


	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	111,954	$	58,023	$	169,977	$	30,941	$	11,353	$	42,294
Impact of ASC 326 adoption on non-PCD loans		—		—		—		4,432		40,666		45,098
Impact of ASC 326 adoption on PCD loans		—		—		—		1,752		634		2,386
Impact of adopting ASC 326		—		—		—		6,184		41,300		47,484
Loans charged-off		(995)		(1,983)		(2,978)		(5,553)		(9,253)		(14,806)
Recoveries credited to allowance		718		848		1,566		2,580		2,557		5,137
Provision charged to operations		14,978		(9,421)		5,557		92,503		1,510		94,013
Balance at end of period	$	126,655	$	47,467	$	174,122	$	126,655	$	47,467	$	174,122

Commercial Portfolio

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans Receivables Related Risk Rating

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of September 30, 2021 (dollars in thousands):

September 30, 2021

Term Loans Amortized Cost Basis by Origination Year

2021

2020

2019

2018

2017

Prior

Revolving Loans

Total

Construction and Land Development

Pass

305,044

265,805

107,223

46,770

17,980

50,365

23,429

816,616

Watch

545

657

24,401

538

335

6,255

—

32,731

Special Mention

2,742

181

—

303

—

3,227

Substandard

—

263

18,901

199

5,414

—

24,777

Total Construction and Land Development

308,331

266,463

132,068

66,209

18,514

62,337

23,429

877,351

Commercial Real Estate - Owner Occupied

Pass

161,174

286,458

310,041

266,173

202,234

588,315

19,484

1,833,879

Watch

187

11,745

16,141

17,279

48,534

903

94,814

Special Mention

201

945

24,706

1,486

1,112

30,264

1,001

59,715

Substandard

—

12,155

1,696

1,953

22,378

709

38,891

Total Commercial Real Estate - Owner Occupied

161,562

287,428

358,647

285,496

222,578

689,491

22,097

2,027,299

Commercial Real Estate - Non-Owner Occupied

Pass

360,208

439,673

531,065

370,114

391,043

1,161,218

56,566

3,309,887

Watch

14,549

8,528

29,797

53,599

11,463

76,680

194,632

Special Mention

—

10,649

29,923

31,347

14,062

30,133

—

116,114

Substandard

—

41,595

21,279

12,557

34,354

302

110,087

Total Commercial Real Estate - Non-Owner Occupied

374,757

458,850

632,380

476,339

429,125

1,302,385

56,884

3,730,720

Commercial & Industrial

Pass

725,216

534,948

302,159

147,127

42,624

168,224

577,089

2,497,387

Watch

173

3,808

2,526

21,778

4,571

4,855

14,322

52,033

Special Mention

221

1,343

8,417

1,924

906

659

2,135

15,605

Substandard

397

580

4,375

1,381

247

2,515

5,670

15,165

Total Commercial & Industrial

726,007

540,679

317,477

172,210

48,348

176,253

599,216

2,580,190

Multifamily Real Estate

Pass

41,843

163,955

89,602

136,569

79,594

250,115

1,597

763,275

Watch

—

4,336

463

—

532

—

5,331

Special Mention

—

2,261

629

4,544

—

7,568

Substandard

—

113

—

113

Total Multifamily Real Estate

41,843

166,216

94,567

141,576

79,594

250,852

1,639

776,287

Residential 1-4 Family - Commercial

Pass

85,081

96,580

68,972

50,528

61,335

215,176

917

578,589

Watch

—

2,047

6,727

7,494

3,708

8,772

314

29,062

Special Mention

160

—

455

409

4,957

—

6,078

Substandard

—

3,467

896

1,341

4,520

299

10,618

Total Residential 1-4 Family - Commercial

85,336

98,724

79,166

59,373

66,793

233,425

1,530

624,347

Other Commercial

Pass

145,656

173,414

105,143

5,995

26,284

50,631

13,425

520,548

Watch

—

589

1,259

4,563

—

6,411

Special Mention

—

203

7,730

7,936

Substandard

—

248

—

248

Total Other Commercial

145,656

173,414

105,143

6,584

27,546

55,645

21,155

535,143

Total Commercial

Pass

1,824,222

1,960,833

1,514,205

1,023,276

821,094

2,484,044

692,507

10,320,181

Watch

15,454

15,065

79,532

100,602

38,615

150,191

15,555

415,014

Special Mention

3,324

15,296

63,856

39,756

16,492

66,611

10,908

216,243

Substandard

492

580

61,855

44,153

16,297

69,542

6,980

199,899

Total Commercial

1,843,492

1,991,774

1,719,448

1,207,787

892,498

2,770,388

725,950

11,151,337

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, 2020 (dollars in thousands):

December 31, 2020

Term Loans Amortized Cost Basis by Origination Year

2020

2019

2018

2017

2016

Prior

Revolving Loans

Total

Construction and Land Development

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