Atlantic Union Bankshares Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASES (Tables)

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Net Investment in Sales-Type and Direct Financing Lease

Total net investment in sales-type and direct financing leases consists of the following as of December 31, (dollars in thousands):


	2023		2022
Sales-type and direct financing leases:
Lease receivables, net of unearned income and deferred selling profit	$	409,264	$	266,380
Unguaranteed residual values, net of unearned income and deferred selling profit		21,484		15,159
Total net investment in sales-type and direct financing leases	$	430,748	$	281,539

Lessee Lease Portfolio and Other Supplemental Lease Information

The tables below provide information about the Company’s lessee lease portfolio and other supplemental lease information as of and for the years ended December 31, (dollars in thousands):


	2023						2022
	Operating			Finance			Operating			Finance
ROU assets	$	71,788		$	4,669		$	35,729		$	5,588
Lease liabilities		78,043			7,052			47,696			8,288
Lease Term and Discount Rate of Operating leases:
Weighted-average remaining lease term (years)		11.75			5.08			6.80			6.08
Weighted-average discount rate ⁽¹⁾		6.21	%		1.17	%		2.91	%		1.17	%

⁽¹⁾ A lease implicit rate or an incremental borrowing rate is used based on information available at commencement date of lease or at remeasurement date.

Other Lease Information


	2023		2022
Cash paid for amounts included in measurement of lease liabilities:
Operating Cash Flows from Finance Leases	$	89	$	103
Operating Cash Flows from Operating Leases		12,457		11,266
Financing Cash Flows from Finance Leases		1,236		1,189
ROU assets obtained in exchange for lease obligations:
Operating leases	$	43,357	$	7,326

Lease Cost


		2023		2022
Net Operating Lease Cost	$	10,344	$	8,839
Finance Lease Cost:
Amortization of right-of-use assets		919		919
Interest on lease liabilities		89		103
Total Lease Cost	$	11,352	$	9,861

Maturities of Lessor and Lessee Arrangements Outstanding

The maturities of lessor and lessee arrangements outstanding as of December 31, 2023 are presented in the table below for the years ending, (dollars in thousands):


	Lessor		Lessee
		Sales-type and Direct Financing	Operating		Finance
2024	$	104,490	$	13,967	$	1,358
2025		90,890		12,347		1,392
2026		79,877		9,944		1,427
2027		78,906		8,573		1,462
2028		55,383		7,622		1,499
Thereafter		63,181		64,003		127
Total undiscounted cash flows		472,727		116,456		7,265
Less: Adjustments ⁽¹⁾		63,463		38,413		213
Total ⁽²⁾	$	409,264	$	78,043	$	7,052

⁽¹⁾ Lessor – unearned income and unearned guaranteed residual value; Lessee – imputed interest.

⁽²⁾ Represents lease receivables for lessor arrangements and lease liabilities for lessee arrangements.