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 AND LEASE LOSSES (Tables)

LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)

9 Months Ended

Sep. 30, 2023

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

Loans Stated at Face Amount, Net of Unearned Income

The following tables exclude LHFS. The Company’s LHFI are stated at their face amount, net of deferred fees and costs, and consisted of the following at September 30, 2023 and December 31, 2022 (dollars in thousands):


	September 30, 2023		December 31, 2022
Construction and Land Development	$	1,132,940	$	1,101,260
Commercial Real Estate – Owner Occupied		1,975,281		1,982,608
Commercial Real Estate – Non-Owner Occupied		4,148,218		3,996,130
Multifamily Real Estate		947,153		802,923
Commercial & Industrial		3,432,319		2,983,349
Residential 1-4 Family – Commercial		517,034		538,063
Residential 1-4 Family – Consumer		1,057,294		940,275
Residential 1-4 Family – Revolving		599,282		585,184
Auto		534,361		592,976
Consumer		126,151		152,545
Other Commercial		813,587		773,829
Total LHFI, net of deferred fees and costs⁽¹⁾		15,283,620		14,449,142
Allowance for loan and lease losses		(125,627)		(110,768)
Total LHFI, net	$	15,157,993	$	14,338,374

⁽¹⁾ Total loans included unamortized premiums and discounts, and unamortized deferred fees and costs totaling $58.4 million and $50.4 million as of September 30, 2023 and December 31, 2022, respectively.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s LHFI portfolio, by class, at September 30, 2023 (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

1,132,174

—

386

355

1,132,940

Commercial Real Estate – Owner Occupied

1,963,601

3,501

1,902

2,395

3,882

1,975,281

Commercial Real Estate – Non-Owner Occupied

4,134,014

4,573

797

2,835

5,999

4,148,218

Multifamily Real Estate

947,003

—

150

—

947,153

Commercial & Industrial

3,425,646

3,049

576

792

2,256

3,432,319

Residential 1-4 Family – Commercial

513,573

744

817

1,833

517,034

Residential 1-4 Family – Consumer

1,040,519

1,000

1,775

3,632

10,368

1,057,294

Residential 1-4 Family – Revolving

591,748

2,326

602

1,034

3,572

599,282

Auto

530,729

2,703

339

229

361

534,361

Consumer

125,373

517

164

—

126,151

Other Commercial

810,027

3,545

—

813,587

Total LHFI, net of deferred fees and costs

15,214,407

21,958

6,758

11,871

28,626

15,283,620

% of total loans

99.55

0.14

0.04

0.08

0.19

100.00

The following table shows the aging of the Company’s LHFI portfolio, by class, at December 31, 2022 (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	$	1,099,555		$	1,253		$	45		$	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			48			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			3			152,545
Other Commercial		773,738			—			—			91			—			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	%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status, including those on nonaccrual status with no related ALLL, as of September 30, 2023 and December 31, 2022 (dollars in thousands):


	September 30, 2023				December 31, 2022
	Nonaccrual		Nonaccrual With No ALLL		Nonaccrual		Nonaccrual With No ALLL
Construction and Land Development	$	355	$	—	$	307	$	—
Commercial Real Estate – Owner Occupied		3,882		—		7,178		908
Commercial Real Estate – Non-Owner Occupied		5,999		4,935		1,263		—
Commercial & Industrial		2,256		1		1,884		1
Residential 1-4 Family – Commercial		1,833		—		1,904		—
Residential 1-4 Family – Consumer		10,368		—		10,846		—
Residential 1-4 Family – Revolving		3,572		—		3,453		—
Auto		361		—		200		—
Consumer		—		—		3		—
Other Commercial		—		—		—		—
Total LHFI	$	28,626	$	4,936	$	27,038	$	909

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

The following table provides a summary, by class, of TDRs that continued to accrue interest under the terms of the applicable restructuring agreement, which were considered to be performing, and TDRs that had been placed on nonaccrual status, which were considered to be nonperforming, as of December 31, 2022 (dollars in thousands):


	December 31, 2022
	No. of	Recorded		Outstanding
	Loans	Investment		Commitment
Performing
Construction and Land Development	3	$	155	$	—
Commercial Real Estate – Owner Occupied	2		997		—
Commercial & Industrial	1		93		—
Residential 1-4 Family – Consumer	83		7,761		—
Residential 1-4 Family – Revolving	3		254		5
Consumer	1		13		—
Total performing	93	$	9,273	$	5
Nonperforming
Commercial Real Estate – Owner Occupied	1	$	15	$	—
Commercial Real Estate – Non-Owner Occupied	2		233		—
Commercial & Industrial	2		375		—
Residential 1-4 Family – Commercial	3		332		—
Residential 1-4 Family – Consumer	23		3,869		—
Residential 1-4 Family – Revolving	3		93		—
Total nonperforming	34	$	4,917	$	—
Total performing and nonperforming	127	$	14,190	$	5

Schedule of TLMs by Class and Modification Type

The following tables present the amortized cost basis as of September 30, 2023 of TLMs modified during the three and nine months ended September 30, 2023 since January 1, 2023 (dollars in thousands):

Three Months Ended September 30, 2023

Nine Months Ended September 30, 2023

Amortized Cost

% of Total Class of Financing Receivable

Amortized Cost

% of Total Class of Financing Receivable

Term Extension

Commercial and Industrial

2,008

0.06

Commercial Real Estate – Non-Owner Occupied

—

0.00

20,133

0.49

Commercial Real Estate – Owner Occupied

766

0.04

766

0.04

Residential 1-4 Family – Consumer

603

0.06

Total Term Extension

892

23,510

Combination - Term Extension and Interest Rate Reduction

Residential 1-4 Family – Consumer

127

0.01

959

0.09

Residential 1-4 Family – Revolving

—

0.00

Total Combination - Term Extension and Interest Rate Reduction

127

974

Principal Forgiveness

Commercial Real Estate – Non-Owner Occupied

—

0.00

4,935

0.12

Total Principal Forgiveness

—

4,935

Total

1,019

29,419

NM= Not Meaningful

Summary of financial effects of TLMs on a weighted average basis for TLMs within that loan type

The following table describes the financial effects of TLMs on a weighted average basis for TLMs within that loan type for the three and nine months ended September 30, 2023:


Three Months Ended September 30, 2023
Term Extension
Loan Type		Financial Effect
Commercial Real Estate – Owner Occupied		Added a weighted-average 0.2 years to the life of loans.


Nine Months Ended September 30, 2023
Term Extension
Loan Type				Financial Effect
Commercial and Industrial				Added a weighted-average 0.2 years to the life of loans.
Commercial Real Estate – Owner Occupied				Added a weighted-average 0.2 years to the life of loans.
Commercial Real Estate – Non-Owner Occupied				Added a weighted-average 0.5 years to the life of loans.
Residential 1-4 Family – Consumer				Added a weighted-average 10.7 years to the life of loans.

Combination - Term Extension and Interest Rate Reduction
Loan Type				Financial Effect
Residential 1-4 Family – Consumer				Added a weighted-average 20.3 years to the life of loans and reduced the weighted average contractual interest rate from 8.2% to 7.6%.
Residential 1-4 Family – Revolving				Added a weighted-average 19.1 years to the life of loans and reduced the weighted average contractual interest rate from 10.5% to 7.3%.

Principal Forgiveness
Loan Type				Financial Effect
Commercial Real Estate – Non-Owner Occupied				Reduced the amortized cost basis of loans by $3.5 million.

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, 2023 and 2022 (dollars in thousands):

Three Months Ended September 30, 2023

Nine Months Ended September 30, 2023

Commercial

Consumer

Total

Commercial

Consumer

Total

Balance at beginning of period

92,970

27,713

120,683

82,753

28,015

110,768

Loans charged-off

(788)

(841)

(1,629)

(7,589)

(2,368)

(9,957)

Recoveries credited to allowance

878

457

1,335

1,911

1,626

3,537

Provision charged to operations

5,880

(642)

5,238

21,865

(586)

21,279

Balance at end of period

98,940

26,687

125,627

98,940

26,687

125,627


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	77,413	$	26,771	$	104,184	$	77,902	$	21,885	$	99,787
Loans charged-off		(1,086)		(715)		(1,801)		(2,852)		(2,415)		(5,267)
Recoveries credited to allowance		605		609		1,214		1,723		2,022		3,745
Provision charged to operations		6,969		(2,557)		4,412		7,128		2,616		9,744
Balance at end of period	$	83,901	$	24,108	$	108,009	$	83,901	$	24,108	$	108,009

Commercial Portfolio

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

Loans Receivables Related Risk Rating

The table below details the amortized cost and gross write-offs of the classes of loans within the Commercial segment by risk level and year of origination as of September 30, 2023 (dollars in thousands):


		September 30, 2023
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2023		2022		2021		2020		2019		Prior		Loans		Total
Construction and Land Development
Pass	$	168,844	$	459,943	$	329,757	$	22,020	$	12,638	$	42,963	$	45,247	$	1,081,412
Watch		106		4,432		16,493		—		—		836		—		21,867
Special Mention		168		—		4,514		—		—		350		—		5,032
Substandard		23		1,244		1,824		21,208		205		125		—		24,629
Total Construction and Land Development	$	169,141	$	465,619	$	352,588	$	43,228	$	12,843	$	44,274	$	45,247	$	1,132,940
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	(11)	$	—	$	(11)

Commercial Real Estate – Owner Occupied
Pass	$	123,946	$	261,768	$	196,135	$	246,359	$	264,095	$	763,587	$	23,835	$	1,879,725
Watch		—		1,325		4,021		2,815		9,671		26,719		847		45,398
Special Mention		788		859		251		—		992		10,312		464		13,666
Substandard		370		—		—		337		4,196		31,589		—		36,492
Total Commercial Real Estate – Owner Occupied	$	125,104	$	263,952	$	200,407	$	249,511	$	278,954	$	832,207	$	25,146	$	1,975,281
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate – Non-Owner Occupied
Pass	$	310,417	$	526,072	$	714,965	$	342,131	$	483,006	$	1,494,449	$	23,728	$	3,894,768
Watch		—		—		1,691		7,754		27,825		76,136		4		113,410
Special Mention		—		—		—		—		18,980		57,063		11,855		87,898
Substandard		4,936		—		2,139		11,298		5,939		27,830		—		52,142
Total Commercial Real Estate – Non-Owner Occupied	$	315,353	$	526,072	$	718,795	$	361,183	$	535,750	$	1,655,478	$	35,587	$	4,148,218
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	(3,528)	$	—	$	(3,528)

Commercial & Industrial
Pass	$	730,110	$	677,320	$	449,135	$	213,937	$	131,347	$	160,071	$	887,127	$	3,249,047
Watch		596		23,517		186		1,346		18,017		4,814		25,128		73,604
Special Mention		1,809		21,723		1,094		6,890		2,753		1,848		23,984		60,101
Substandard		—		150		468		2,109		3,853		3,438		39,549		49,567
Total Commercial & Industrial	$	732,515	$	722,710	$	450,883	$	224,282	$	155,970	$	170,171	$	975,788	$	3,432,319
Current period gross writeoff	$	—	$	—	$	(6)	$	—	$	—	$	(18)	$	(1,813)	$	(1,837)

Multifamily Real Estate
Pass	$	14,082	$	117,935	$	244,089	$	223,382	$	46,431	$	254,568	$	28,521	$	929,008
Watch		—		—		—		—		—		395		—		395
Special Mention		—		—		—		250		3,734		232		—		4,216
Substandard		—		—		—		13,534		—		—		—		13,534
Total Multifamily Real Estate	$	14,082	$	117,935	$	244,089	$	237,166	$	50,165	$	255,195	$	28,521	$	947,153
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential 1-4 Family – Commercial
Pass	$	29,169	$	63,380	$	78,926	$	71,358	$	46,347	$	212,109	$	1,070	$	502,359
Watch		49		390		586		223		765		6,124		109		8,246
Special Mention		48		—		—		—		—		1,323		—		1,371
Substandard		—		—		618		182		604		3,401		253		5,058
Total Residential 1-4 Family – Commercial	$	29,266	$	63,770	$	80,130	$	71,763	$	47,716	$	222,957	$	1,432	$	517,034
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other Commercial
Pass	$	235,254	$	126,200	$	149,863	$	84,078	$	123,799	$	65,234	$	24,947	$	809,375
Watch		—		—		—		32		8		3,410		—		3,450
Special Mention		98		—		—		—		—		649		—		747
Substandard		—		—		—		—		—		—		15		15
Total Other Commercial	$	235,352	$	126,200	$	149,863	$	84,110	$	123,807	$	69,293	$	24,962	$	813,587
Current period gross writeoff	$	—	$	—	$	—	$	—	$	—	$	(2,213)	$	—	$	(2,213)

Total Commercial
Pass	$	1,611,822	$	2,232,618	$	2,162,870	$	1,203,265	$	1,107,663	$	2,992,981	$	1,034,475	$	12,345,694
Watch		751		29,664		22,977		12,170		56,286		118,434		26,088		266,370
Special Mention		2,911		22,582		5,859		7,140		26,459		71,777		36,303		173,031
Substandard		5,329		1,394		5,049		48,668		14,797		66,383		39,817		181,437
Total Commercial	$	1,620,813	$	2,286,258	$	2,196,755	$	1,271,243	$	1,205,205	$	3,249,575	$	1,136,683	$	12,966,532
Total current period gross writeoff	$	—	$	—	$	(6)	$	—	$	—	$	(5,770)	$	(1,813)	$	(7,589)

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		—		—		—		93		—		3,347
Substandard		1,254		3,148		40		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		—		93		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		2		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