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)

3 Months Ended

Mar. 31, 2024

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 as of the periods ended (dollars in thousands):


	March 31, 2024		December 31, 2023
Construction and Land Development	$	1,246,251	$	1,107,850
Commercial Real Estate – Owner Occupied		1,981,613		1,998,787
Commercial Real Estate – Non-Owner Occupied		4,225,018		4,172,401
Multifamily Real Estate		1,074,957		1,061,997
Commercial & Industrial		3,561,971		3,589,347
Residential 1-4 Family – Commercial		515,667		522,580
Residential 1-4 Family – Consumer		1,081,094		1,078,173
Residential 1-4 Family – Revolving		616,951		619,433
Auto		440,118		486,926
Consumer		113,414		120,641
Other Commercial		994,574		876,908
Total LHFI, net of deferred fees and costs⁽¹⁾		15,851,628		15,635,043
Allowance for loan and lease losses		(136,190)		(132,182)
Total LHFI, net	$	15,715,438	$	15,502,861

⁽¹⁾ Total loans included unamortized premiums and discounts, and unamortized deferred fees and costs totaling $92.5 million and $79.7 million as of March 31, 2024 and December 31, 2023, respectively.

Accrued interest receivable on LHFI totaled $72.8 million and $72.5 million, respectively, at March 31, 2024 and December 31, 2023. Accrued interest receivable write-offs were not material to the Company’s consolidated financial statements for the three months ended March 31, 2024 and 2023.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s LHFI portfolio by class at March 31, 2024 (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

1,242,478

2,163

1,097

171

342

1,246,251

Commercial Real Estate – Owner Occupied

1,971,428

3,663

—

3,634

2,888

1,981,613

Commercial Real Estate – Non-Owner Occupied

4,210,657

2,271

558

1,197

10,335

4,225,018

Multifamily Real Estate

1,074,813

—

144

—

1,074,957

Commercial & Industrial

3,547,743

5,540

348

1,860

6,480

3,561,971

Residential 1-4 Family – Commercial

511,342

1,407

1,030

1,790

515,667

Residential 1-4 Family – Consumer

1,062,189

6,070

204

1,641

10,990

1,081,094

Residential 1-4 Family – Revolving

609,076

1,920

1,477

1,343

3,135

616,951

Auto

435,883

3,192

330

284

429

440,118

Consumer

112,658

418

197

141

—

113,414

Other Commercial

986,285

8,187

102

—

994,574

Total LHFI, net of deferred fees and costs

15,764,552

34,831

4,411

11,445

36,389

15,851,628

% of total loans

99.45

0.22

0.03

0.07

0.23

100.00

The following table shows the aging of the Company’s LHFI portfolio by class at December 31, 2023 (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	$	1,107,183		$	270		$	24		$	25		$	348		$	1,107,850
Commercial Real Estate – Owner Occupied		1,991,632			1,575			—			2,579			3,001			1,998,787
Commercial Real Estate – Non-Owner Occupied		4,156,089			545			184			2,967			12,616			4,172,401
Multifamily Real Estate		1,061,851			—			146			—			—			1,061,997
Commercial & Industrial		3,579,657			4,303			49			782			4,556			3,589,347
Residential 1-4 Family – Commercial		518,150			567			676			1,383			1,804			522,580
Residential 1-4 Family – Consumer		1,053,255			7,546			1,804			4,470			11,098			1,078,173
Residential 1-4 Family – Revolving		611,584			2,238			1,429			1,095			3,087			619,433
Auto		480,557			4,737			872			410			350			486,926
Consumer		119,487			770			232			152			—			120,641
Other Commercial		870,339			6,569			—			—			—			876,908
Total LHFI, net of deferred fees and costs	$	15,549,784		$	29,120		$	5,416		$	13,863		$	36,860		$	15,635,043
% of total loans		99.45	%		0.19	%		0.03	%		0.09	%		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 with no related ALLL, as of the periods ended (dollars in thousands):


	March 31,		December 31,
	2024		2023
Commercial Real Estate – Non-Owner Occupied	$	8,003	$	4,835
Commercial & Industrial		2,098		—
Total LHFI	$	10,101	$	4,835

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

TLMs for the quarter ended March 31, 2024 were not significant at approximately $36,000. The following table presents the amortized cost basis of TLMs for the quarter ended March 31, 2023 (dollars in thousands):


March 31, 2023	Amortized Cost		% of Total Class of Financing Receivable
Term Extension
Construction and Land Development	$	1,344	0.11	%
Commercial Real Estate – Non-Owner Occupied		18,792	0.47	%
Residential 1-4 Family – Consumer		168	0.02	%
Total Term Extension	$	20,304
Combination - Term Extension and Interest Rate Reduction
Residential 1-4 Family – Consumer	$	237	0.02	%
Total Combination - Term Extension and Interest Rate Reduction	$	237

Total	$	20,541

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 period ended:


Three Months Ended March 31, 2023

Term Extension
Loan Type				Financial Effect
Construction and Land Development				Added a weighted-average 0.5 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 18.2 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 20.7 years to the life of loans and changed interest rate from variable to fixed rates, which reduced the weighted average contractual interest rate from 7.5% to7.4%.

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

ALLL on the loan portfolio is a material estimate for the Company. The Company estimates its ALLL on its loan portfolio on a quarterly basis. The Company models the ALLL using two primary segments, Commercial and Consumer. Each loan segment is further disaggregated into classes based on similar risk characteristics. The Company has identified the following classes within each loan segment:

●

Commercial: Construction and Land Development, Commercial Real Estate – Owner Occupied, Commercial Real Estate – Non-Owner Occupied, Multifamily Real Estate, Commercial & Industrial, Residential 1-4 Family – Commercial, and Other Commercial

●

Consumer: Residential 1-4 Family – Consumer, Residential 1-4 Family – Revolving, Auto, and Consumer

The following tables show the ALLL activity by loan segment for the periods presented (dollars in thousands):


	Three Months Ended
	March 31, 2024
	Commercial		Consumer		Total
Balance at beginning of period	$	105,896	$	26,286	$	132,182
Loans charged-off		(4,939)		(955)		(5,894)
Recoveries credited to allowance		533		444		977
Provision charged to operations		9,038		(113)		8,925
Balance at end of period	$	110,528	$	25,662	$	136,190


	Three Months Ended
	March 31, 2023
	Commercial		Consumer		Total
Balance at beginning of period	$	82,753	$	28,015	$	110,768
Loans charged-off		(5,007)		(719)		(5,726)
Recoveries credited to allowance		515		652		1,167
Provision charged to operations		9,825		478		10,303
Balance at end of period	$	88,086	$	28,426	$	116,512

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 for the period presented (dollars in thousands):


		March 31, 2024
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2024		2023		2022		2021		2020		Prior		Loans		Total
Construction and Land Development
Pass	$	57,737	$	363,088	$	457,043	$	160,837	$	24,735	$	41,955	$	78,319	$	1,183,714
Watch		—		1,764		3,912		19,419		152		1,065		—		26,312
Special Mention		—		65		1,898		4,375		1,332		3,247		—		10,917
Substandard		—		1,290		1,245		899		20,646		1,228		—		25,308
Total Construction and Land Development	$	57,737	$	366,207	$	464,098	$	185,530	$	46,865	$	47,495	$	78,319	$	1,246,251
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate – Owner Occupied
Pass	$	23,705	$	188,641	$	252,826	$	185,331	$	226,092	$	973,171	$	27,960	$	1,877,726
Watch		—		567		645		965		4,454		39,732		169		46,532
Special Mention		—		6,979		1,495		248		448		17,141		1,024		27,335
Substandard		—		166		—		—		2,356		27,498		—		30,020
Total Commercial Real Estate – Owner Occupied	$	23,705	$	196,353	$	254,966	$	186,544	$	233,350	$	1,057,542	$	29,153	$	1,981,613
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial Real Estate – Non-Owner Occupied
Pass	$	64,412	$	425,552	$	573,545	$	700,044	$	321,526	$	1,857,649	$	38,073	$	3,980,801
Watch		—		—		1,506		1,690		—		91,236		—		94,432
Special Mention		7		—		—		901		—		48,543		12,756		62,207
Substandard		—		4,929		—		2,098		14,428		66,123		—		87,578
Total Commercial Real Estate – Non-Owner Occupied	$	64,419	$	430,481	$	575,051	$	704,733	$	335,954	$	2,063,551	$	50,829	$	4,225,018
Current period gross write-off	$	—	$	—	$	—	$	—	$	(3,386)	$	—	$	—	$	(3,386)

Commercial & Industrial
Pass	$	266,562	$	864,933	$	573,762	$	357,991	$	152,907	$	268,730	$	878,394	$	3,363,279
Watch		—		3,261		49,919		1,591		1,910		22,547		26,697		105,925
Special Mention		52		105		23,214		282		336		3,336		21,376		48,701
Substandard		—		96		2,682		475		4,297		2,705		33,811		44,066
Total Commercial & Industrial	$	266,614	$	868,395	$	649,577	$	360,339	$	159,450	$	297,318	$	960,278	$	3,561,971
Current period gross write-off	$	—	$	—	$	(30)	$	—	$	(114)	$	(7)	$	(512)	$	(663)

Multifamily Real Estate
Pass	$	3,268	$	21,729	$	129,418	$	342,949	$	220,749	$	286,990	$	51,382	$	1,056,485
Watch		—		—		—		—		—		110		—		110
Special Mention		—		—		—		—		250		79		—		329
Substandard		—		14,219		—		—		—		3,814		—		18,033
Total Multifamily Real Estate	$	3,268	$	35,948	$	129,418	$	342,949	$	220,999	$	290,993	$	51,382	$	1,074,957
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential 1-4 Family – Commercial
Pass	$	9,700	$	38,830	$	68,137	$	75,323	$	68,081	$	238,145	$	593	$	498,809
Watch		—		149		675		575		217		7,847		105		9,568
Special Mention		—		—		—		36		—		1,455		—		1,491
Substandard		—		154		—		609		278		4,505		253		5,799
Total Residential 1-4 Family – Commercial	$	9,700	$	39,133	$	68,812	$	76,543	$	68,576	$	251,952	$	951	$	515,667
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other Commercial
Pass	$	83,401	$	200,038	$	167,887	$	153,248	$	108,801	$	185,488	$	75,597	$	974,460
Watch		—		—		7,064		7,485		29		4,205		—		18,783
Special Mention		—		90		—		—		—		617		99		806
Substandard		—		521		—		—		—		4		—		525
Total Other Commercial	$	83,401	$	200,649	$	174,951	$	160,733	$	108,830	$	190,314	$	75,696	$	994,574
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(890)	$	—	$	(890)

Total Commercial
Pass	$	508,785	$	2,102,811	$	2,222,618	$	1,975,723	$	1,122,891	$	3,852,128	$	1,150,318	$	12,935,274
Watch		—		5,741		63,721		31,725		6,762		166,742		26,971		301,662
Special Mention		59		7,239		26,607		5,842		2,366		74,418		35,255		151,786
Substandard		—		21,375		3,927		4,081		42,005		105,877		34,064		211,329
Total Commercial	$	508,844	$	2,137,166	$	2,316,873	$	2,017,371	$	1,174,024	$	4,199,165	$	1,246,608	$	13,600,051
Total current period gross write-off	$	—	$	—	$	(30)	$	—	$	(3,500)	$	(897)	$	(512)	$	(4,939)


		December 31, 2023
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2023		2022		2021		2020		2019		Prior		Loans		Total
Construction and Land Development
Pass	$	289,786	$	440,473	$	192,148	$	19,536	$	10,934	$	38,841	$	64,137	$	1,055,855
Watch		84		3,611		16,249		—		—		2,127		—		22,071
Special Mention		—		—		4,444		1,332		—		367		—		6,143
Substandard		114		1,244		1,248		20,705		205		265		—		23,781
Total Construction and Land Development	$	289,984	$	445,328	$	214,089	$	41,573	$	11,139	$	41,600	$	64,137	$	1,107,850
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(11)	$	—	$	(11)

Commercial Real Estate – Owner Occupied
Pass	$	175,627	$	257,889	$	194,030	$	239,549	$	259,502	$	750,180	$	23,689	$	1,900,466
Watch		5,919		1,311		4,768		4,422		9,146		27,829		399		53,794
Special Mention		786		849		249		—		5,150		9,549		611		17,194
Substandard		362		—		—		326		—		26,645		—		27,333
Total Commercial Real Estate – Owner Occupied	$	182,694	$	260,049	$	199,047	$	244,297	$	273,798	$	814,203	$	24,699	$	1,998,787
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(141)	$	—	$	(141)

Commercial Real Estate – Non-Owner Occupied
Pass	$	374,221	$	548,262	$	710,122	$	334,449	$	492,782	$	1,419,882	$	35,276	$	3,914,994
Watch		—		1,520		1,690		—		32,326		82,930		—		118,466
Special Mention		—		—		—		—		—		67,001		12,155		79,156
Substandard		4,837		—		2,121		17,956		5,899		28,972		—		59,785
Total Commercial Real Estate – Non-Owner Occupied	$	379,058	$	549,782	$	713,933	$	352,405	$	531,007	$	1,598,785	$	47,431	$	4,172,401
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(3,528)	$	—	$	(3,528)

Commercial & Industrial
Pass	$	981,290	$	617,805	$	409,973	$	178,578	$	122,160	$	168,368	$	923,359	$	3,401,533
Watch		2,708		38,711		512		1,379		18,065		4,943		22,832		89,150
Special Mention		108		32,714		981		3,310		1,722		1,513		19,865		60,213
Substandard		—		146		343		2,000		925		3,181		31,856		38,451
Total Commercial & Industrial	$	984,106	$	689,376	$	411,809	$	185,267	$	142,872	$	178,005	$	997,912	$	3,589,347
Current period gross write-off	$	—	$	—	$	(101)	$	—	$	—	$	(17)	$	(1,812)	$	(1,930)

Multifamily Real Estate
Pass	$	21,911	$	129,854	$	321,918	$	222,172	$	45,879	$	250,887	$	50,060	$	1,042,681
Watch		—		—		—		—		—		914		—		914
Special Mention		—		—		—		250		—		81		—		331
Substandard		14,222		—		—		—		3,703		146		—		18,071
Total Multifamily Real Estate	$	36,133	$	129,854	$	321,918	$	222,422	$	49,582	$	252,028	$	50,060	$	1,061,997
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential 1-4 Family – Commercial
Pass	$	41,631	$	67,495	$	77,321	$	69,779	$	44,498	$	203,125	$	604	$	504,453
Watch		49		387		580		220		757		8,854		107		10,954
Special Mention		47		—		—		—		—		1,302		—		1,349
Substandard		57		—		614		279		624		3,997		253		5,824
Total Residential 1-4 Family – Commercial	$	41,784	$	67,882	$	78,515	$	70,278	$	45,879	$	217,278	$	964	$	522,580
Current period gross write-off	$	—	$	—	$	—