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 AND LEASE LOSSES (Tables)

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

12 Months Ended

Dec. 31, 2022

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 consisted of the following at December 31, 2022 and 2021 (dollars in thousands):


	2022		2021
Construction and Land Development	$	1,101,260	$	862,236
Commercial Real Estate - Owner Occupied		1,982,608		1,995,409
Commercial Real Estate - Non-Owner Occupied		3,996,130		3,789,377
Multifamily Real Estate		802,923		778,626
Commercial & Industrial⁽¹⁾		2,983,349		2,542,243
Residential 1-4 Family - Commercial		538,063		607,337
Residential 1-4 Family - Consumer		940,275		816,524
Residential 1-4 Family - Revolving		585,184		560,796
Auto		592,976		461,052
Consumer		152,545		176,992
Other Commercial⁽²⁾		773,829		605,251
Total LHFI, net of deferred fees and costs⁽³⁾		14,449,142		13,195,843
Allowance for loan and lease losses		(110,768)		(99,787)
Total LHFI, net	$	14,338,374	$	13,096,056

⁽¹⁾ Commercial & industrial loans included approximately $7.3 million and $145.3 million in loans from the PPP at December 31, 2022 and December 31, 2021, respectively.

⁽²⁾There were no loans from the PPP included in other commercial loans as of December 31, 2022. As of December 31, 2021, other commercial loans include approximately $5.1 million in loans from the PPP.

⁽³⁾Total loans included unamortized premiums and discounts, and unamortized deferred fees and costs totaling $50.4 million and $49.3 million as of December 31, 2022 and December 31, 2021, 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 December 31, 2022 (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

1,099,555

1,253

100

307

1,101,260

Commercial Real Estate - Owner Occupied

1,970,323

2,305

635

2,167

7,178

1,982,608

Commercial Real Estate - Non-Owner Occupied

3,993,091

1,121

607

1,263

3,996,130

Multifamily Real Estate

801,694

1,229

—

802,923

Commercial & Industrial

2,980,008

824

174

459

1,884

2,983,349

Residential 1-4 Family - Commercial

534,653

1,231

—

275

1,904

538,063

Residential 1-4 Family - Consumer

919,833

5,951

1,690

1,955

10,846

940,275

Residential 1-4 Family - Revolving

577,993

1,843

511

1,384

3,453

585,184

Auto

589,235

2,747

450

344

200

592,976

Consumer

151,958

351

125

108

152,545

Other Commercial

773,738

—

773,829

Total LHFI, net of deferred fees and costs

14,392,081

18,855

3,678

7,490

27,038

14,449,142

% of total loans

99.60

0.13

0.03

0.05

0.19

100.00

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2021 (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	$	857,883		$	1,357		$	—		$	299		$	2,697		$	862,236
Commercial Real Estate - Owner Occupied		1,987,133			1,230			152			1,257			5,637			1,995,409
Commercial Real Estate - Non-Owner Occupied		3,783,211			1,965			127			433			3,641			3,789,377
Multifamily Real Estate		778,429			84			—			—			113			778,626
Commercial & Industrial		2,536,100			1,161			1,438			1,897			1,647			2,542,243
Residential 1-4 Family - Commercial		601,946			1,844			272			990			2,285			607,337
Residential 1-4 Family - Consumer		795,821			3,368			2,925			3,013			11,397			816,524
Residential 1-4 Family - Revolving		554,652			1,493			363			882			3,406			560,796
Auto		458,473			1,866			249			241			223			461,052
Consumer		175,943			689			186			120			54			176,992
Other Commercial		605,214			37			—			—			—			605,251
Total LHFI, net of deferred fees and costs	$	13,134,805		$	15,094		$	5,712		$	9,132		$	31,100		$	13,195,843
% of total loans		99.54	%		0.11	%		0.04	%		0.07	%		0.24	%		100.00	%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2022 (dollars in thousands):



	Nonaccrual		Nonaccrual With No ALLL		90 Days Past due and still Accruing
Construction and Land Development	$	307	$	—	$	100
Commercial Real Estate - Owner Occupied		7,178		908		2,167
Commercial Real Estate - Non-Owner Occupied		1,263		—		607
Commercial & Industrial		1,884		1		459
Residential 1-4 Family - Commercial		1,904		—		275
Residential 1-4 Family - Consumer		10,846		—		1,955
Residential 1-4 Family - Revolving		3,453		—		1,384
Auto		200		—		344
Consumer		3		—		108
Other Commercial		—		—		91
Total LHFI	$	27,038	$	909	$	7,490

The following table shows the Company’s amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2021 (dollars in thousands):



	Nonaccrual		Nonaccrual With No ALLL		90 Days Past due and still Accruing
Construction and Land Development	$	2,697	$	1,985	$	299
Commercial Real Estate - Owner Occupied		5,637		970		1,257
Commercial Real Estate - Non-Owner Occupied		3,641		1,089		433
Multifamily Real Estate		113		—		—
Commercial & Industrial		1,647		1		1,897
Residential 1-4 Family - Commercial		2,285		—		990
Residential 1-4 Family - Consumer		11,397		—		3,013
Residential 1-4 Family - Revolving		3,406		—		882
Auto		223		—		241
Consumer		54		—		120
Total LHFI	$	31,100	$	4,045	$	9,132

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 December 31, 2022 and 2021 (dollars in thousands):


	December 31, 2022					December 31, 2021
	No. of	Recorded		Outstanding		No. of	Recorded		Outstanding
	Loans	Investment		Commitment		Loans	Investment		Commitment
Performing
Construction and Land Development	3	$	155	$	—	4	$	201	$	—
Commercial Real Estate - Owner Occupied	2		997		—	3		572		—
Commercial & Industrial	1		93		—	—		—		—
Residential 1-4 Family - Consumer	83		7,761		—	75		9,021		—
Residential 1-4 Family - Revolving	3		254		5	3		265		4
Consumer	1		13		—	2		15		—
Other Commercial	—		—		—	1		239		—
Total performing	93	$	9,273	$	5	88	$	10,313	$	4
Nonperforming
Commercial Real Estate - Owner Occupied	1	$	15	$	—	2	$	830	$	—
Commercial Real Estate - Non-Owner Occupied	2		233		—	3		1,357		—
Commercial & Industrial	2		375		—	3		729		—
Residential 1-4 Family - Commercial	3		332		—	3		388		—
Residential 1-4 Family - Consumer	23		3,869		—	24		4,239		—
Residential 1-4 Family - Revolving	3		93		—	3		99		—
Total nonperforming	34	$	4,917	$	—	38	$	7,642	$	—
Total performing and nonperforming	127	$	14,190	$	5	126	$	17,955	$	4

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the years ended December 31, 2022 and 2021 (dollars in thousands):



	2022			2021
		Recorded			Recorded
	No. of	Investment at		No. of	Investment at
	Loans	Period End		Loans	Period End
Term modification, at a market rate
Commercial Real Estate - Owner Occupied	1	$	766	—	$	—
Commercial Real Estate - Non-Owner Occupied	—		—	1		153
Residential 1-4 Family - Consumer	—		—	2		101
Total loan term extended at a market rate	1	$	766	3	$	254

Term modification, below market rate
Residential 1-4 Family - Consumer	21	$	1,524	12	$	1,810
Consumer	—		—	1		15
Total loan term extended at a below market rate	21	$	1,524	13	$	1,825

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	22	$	2,290	17	$	2,124

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 years ended December 31, 2022 and 2021 (dollars in thousands):


	Year Ended December 31, 2022						Year Ended December 31, 2021
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	77,902	$	21,885	$	99,787	$	117,403	$	43,137	$	160,540
Loans charged-off		(4,137)		(3,272)		(7,409)		(5,186)		(4,897)		(10,083)
Recoveries credited to allowance		2,426		2,650		5,076		4,915		3,303		8,218
Provision charged to operations		6,562		6,752		13,314		(39,230)		(19,658)		(58,888)
Balance at end of period	$	82,753	$	28,015	$	110,768	$	77,902	$	21,885	$	99,787

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 December 31, 2022 (dollars in thousands):

December 31, 2022

Term Loans Amortized Cost Basis by Origination Year

2022

2021

2020

2019

2018

Prior

Revolving Loans

Total

Construction and Land Development

Pass

357,688

499,738

107,559

17,191

33,801

36,335

34,345

1,086,657

Watch

242

1,637

—

115

1,669

—

3,663

Special Mention

2,843

411

—

3,347

Substandard

1,254

3,148

211

1,345

1,595

—

7,593

Total Construction and Land Development

362,027

504,934

107,599

17,402

35,261

39,692

34,345

1,101,260

Commercial Real Estate - Owner Occupied

Pass

258,953

215,414

257,740

282,110

228,410

624,238

17,190

1,884,055

Watch

1,060

176

2,437

9,567

9,736

31,331

916

55,223

Special Mention

—

256

—

1,332

18,766

132

20,579

Substandard

—

2,565

474

4,728

1,591

12,979

414

22,751

Total Commercial Real Estate - Owner Occupied

260,013

218,411

260,651

296,498

241,069

687,314

18,652

1,982,608

Commercial Real Estate - Non-Owner Occupied

Pass

496,079

661,977

385,084

517,834

373,126

1,389,507

34,804

3,858,411

Watch

—

2,151

2,091

11,915

19,550

20,683

56,392

Special Mention

232

—

25,578

702

7,381

—

33,893

Substandard

—

10,460

3,083

29,012

4,879

—

47,434

Total Commercial Real Estate - Non-Owner Occupied

496,311

664,128

397,635

558,410

422,390

1,422,450

34,806

3,996,130

Commercial & Industrial

Pass

849,547

536,982

262,093

182,263

67,648

120,326

846,059

2,864,918

Watch

1,399

1,305

18,682

5,039

12,843

1,984

41,836

83,088

Special Mention

—

222

393

2,145

354

1,773

12,380

17,267

Substandard

513

112

2,911

1,449

1,339

11,658

18,076

Total Commercial & Industrial

851,040

539,022

281,280

192,358

82,294

125,422

911,933

2,983,349

Multifamily Real Estate

Pass

111,798

90,952

204,159

47,240

59,883

231,745

52,025

797,802

Watch

—

350

442

416

—

1,208

Special Mention

—

3,826

—

3,913

Total Multifamily Real Estate

111,798

90,952

204,159

51,416

60,325

232,248

52,025

802,923

Residential 1-4 Family - Commercial

Pass

58,534

86,881

77,110

50,721

38,090

199,783

803

511,922

Watch

500

—

539

852

1,532

5,378

113

8,914

Special Mention

—

7,771

582

2,630

—

11,077

Substandard

—

632

1,400

463

473

2,883

299

6,150

Total Residential 1-4 Family - Commercial

59,034

87,513

79,143

59,807

40,677

210,674

1,215

538,063

Other Commercial

Pass

197,454

211,438

149,567

119,795

3,522

69,243

14,177

765,196

Watch

5,095

—

3,435

—

8,542

Substandard

—

Total Other Commercial

202,549

211,438

149,567

119,807

3,522

72,678

14,268

773,829

Total Commercial

Pass

2,330,053

2,303,382

1,443,312

1,217,154

804,480

2,671,177

999,403

11,768,961

Watch

8,296

5,269

23,749

27,735

44,218

64,896

42,867

217,030

Special Mention

3,075

889

487

39,413

2,970

30,730

12,512

90,076

Substandard

1,348

6,858

12,486

11,396

33,870

23,675

12,462

102,095

Total Commercial

2,342,772

2,316,398

1,480,034

1,295,698

885,538

2,790,478

1,067,244

12,178,162

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, 2021 (dollars in thousands):


		December 31, 2021
		Term Loans Amortized Cost Basis by Origination Year


	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Construction and Land Development
Pass	$	430,764	$	218,672	$	39,937	$	40,128	$	11,299	$	50,908	$	22,996	$	814,704
Watch		395		185		12,923		129		349		4,026		—		18,007
Special Mention		—		—		—		—		—		735		—		735
Substandard		3,541		1		221		19,264		198		5,565		—		28,790
Total Construction and Land Development	$	434,700	$	218,858	$	53,081	$	59,521	$	11,846	$	61,234	$	22,996	$	862,236

Commercial Real Estate - Owner Occupied
Pass	$	222,079	$	279,165	$	321,503	$	263,422	$	179,994	$	555,540	$	19,705	$	1,841,408
Watch		185		18		7,959		10,875		14,648		57,466		702		91,853
Special Mention		—		932		11,826		610		1,052		19,480		507		34,407
Substandard		200		153		7,455		2,538		1,935		14,834		626		27,741
Total Commercial Real Estate - Owner Occupied	$	222,464	$	280,268	$	348,743	$	277,445	$	197,629	$	647,320	$	21,540	$	1,995,409

Commercial Real Estate - Non-Owner Occupied
Pass	$	642,386	$	421,063	$	520,035	$	377,176	$	374,949	$	1,102,193	$	36,568	$	3,474,370
Watch		2,152		841		35,721		39,356		18,242		101,797		14		198,123
Special Mention		—		10,609		25,691		20,119		12,741		4,775		—		73,935
Substandard		—		—		23,376		11,369		—		7,952		252		42,949
Total Commercial Real Estate - Non-Owner Occupied	$	644,538	$	432,513	$	604,823	$	448,020	$	405,932	$	1,216,717	$	36,834	$	3,789,377

Commercial & Industrial
Pass	$	770,662	$	450,478	$	287,926	$	110,710	$	38,395	$	170,857	$	619,583	$	2,448,611
Watch		1,233		9,641		2,766		31,635		1,370		4,405		17,220		68,270
Special Mention		206		935		8,477		1,023		564		561		3,249		15,015
Substandard		379		575		3,636		1,965		463		1,639		1,690		10,347
Total Commercial & Industrial	$	772,480	$	461,629	$	302,805	$	145,333	$	40,792	$	177,462	$	641,742