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, 2024

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

Loans Stated at Face Amount, Net of Unearned Income


	September 30, 2024		December 31, 2023
Construction and Land Development	$	1,588,531	$	1,107,850
CRE – Owner Occupied		2,401,807		1,998,787
CRE – Non-Owner Occupied		4,885,785		4,172,401
Multifamily Real Estate		1,357,730		1,061,997
Commercial & Industrial		3,799,872		3,589,347
Residential 1-4 Family – Commercial		729,315		522,580
Residential 1-4 Family – Consumer		1,281,914		1,078,173
Residential 1-4 Family – Revolving		738,665		619,433
Auto		354,570		486,926
Consumer		109,522		120,641
Other Commercial		1,089,588		876,908
Total LHFI, net of deferred fees and costs⁽¹⁾		18,337,299		15,635,043
Allowance for loan and lease losses		(160,685)		(132,182)
Total LHFI, net	$	18,176,614	$	15,502,861

⁽¹⁾Total loans included unamortized premiums and discounts, and unamortized deferred fees and costs totaling $228.3 million and $79.7 million as of September 30, 2024 and December 31, 2023, 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, 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

1,584,576

1,559

369

1,945

1,588,531

CRE – Owner Occupied

2,392,190

2,291

1,306

1,239

4,781

2,401,807

CRE – Non-Owner Occupied

4,866,516

1,085

6,875

1,390

9,919

4,885,785

Multifamily Real Estate

1,356,721

821

135

—

1,357,730

Commercial & Industrial

3,789,537

5,876

549

862

3,048

3,799,872

Residential 1-4 Family – Commercial

725,395

656

736

801

1,727

729,315

Residential 1-4 Family – Consumer

1,260,678

471

6,950

1,890

11,925

1,281,914

Residential 1-4 Family – Revolving

728,538

3,309

2,672

1,186

2,960

738,665

Auto

350,373

2,796

468

401

532

354,570

Consumer

108,487

700

182

143

109,522

Other Commercial

1,082,274

185

7,127

—

1,089,588

Total LHFI, net of deferred fees and costs

18,245,285

19,566

20,427

15,174

36,847

18,337,299

% of total loans

99.50

0.11

0.08

0.20

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
CRE – Owner Occupied		1,991,632			1,575			—			2,579			3,001			1,998,787
CRE – 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):


	September 30,		December 31,
	2024		2023
CRE – Owner Occupied	$	2,050	$	—
CRE – Non-Owner Occupied		8,156		4,835
Total LHFI	$	10,206	$	4,835

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

The following table presents the amortized cost basis of TLMs for the three and nine months ended September 30, (dollars in thousands):



	Three Months Ended				Nine Months Ended
	2024				2024
	Amortized Cost		% of Total Class of Financing Receivable		Amortized Cost		% of Total Class of Financing Receivable
Combination - Other-Than-Insignificant Payment Delay and Term Extension
Commercial and Industrial	$	—	—	%	$	553	0.01	%
CRE – Non-Owner Occupied		—	—	%		22,175	0.45	%
Total Combination - Other-Than-Insignificant Payment Delay and Term Extension	$	—			$	22,728

Term Extension
Construction and Land Development	$	50	NM	%	$	50	NM	%
Commercial and Industrial		141	NM	%		141	NM	%
CRE – Owner Occupied		586	0.02	%		586	0.02	%
Residential 1-4 Family – Consumer		236	0.02	%		236	0.02	%
Total Term Extension	$	1,013			$	1,013

Combination - Term Extension and Interest Rate Reduction
Residential 1-4 Family – Consumer	$	283	0.02	%	$	630	0.05	%
Total Combination - Term Extension and Interest Rate Reduction	$	283			$	630

Combination - Interest Rate Reduction, Term Extension and Other-Than-Insignificant Payment Delay
Commercial and Industrial	$	—	—	%	$	106	NM	%
Total Combination - Interest Rate Reduction, Term Extension and Other-Than-Insignificant Payment Delay	$	—			$	106

Total	$	1,296			$	24,477

NM = Not Meaningful


	Three Months Ended				Nine Months Ended
	2023				2023
	Amortized Cost		% of Total Class of Financing Receivable		Amortized Cost		% of Total Class of Financing Receivable
Term Extension
Commercial and Industrial	$	97	NM		$	2,008	0.06	%
CRE – Non-Owner Occupied		—	—	%		20,133	0.49	%
CRE – Owner Occupied		766	0.04	%		766	0.04	%
Residential 1-4 Family – Consumer		29	NM			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		—	—	%		15	NM
Total Combination - Term Extension and Interest Rate Reduction	$	127			$	974

Principal Forgiveness
CRE – Non-Owner Occupied		—	—	%		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,:


Three Months Ended
2024

Term Extension
Loan Type				Financial Effect
CRE – Owner Occupied				Added a weighted-average 3.0 years to the life of loans.

Nine Months Ended
2024

Other-Than-Insignificant Payment Delay and Term Extension
Loan Type				Financial Effect
Commercial and Industrial				Added a weighted-average 1.0 years to the life of loans.
CRE – Non-Owner Occupied				Added a weighted-average 1.6 years to the life of loans.

Term Extension
Loan Type				Financial Effect
CRE – Owner Occupied				Added a weighted-average 3.0 years to the life of loans.


Three Months Ended
2023

Term Extension
Loan Type				Financial Effect
CRE – Owner Occupied				Added a weighted-average 0.2 years to the life of loans.

Nine Months Ended
2023

Term Extension
Loan Type				Financial Effect
Commercial and Industrial				Added a weighted-average 0.2 years to the life of loans.
CRE – Owner Occupied				Added a weighted-average 0.2 years to the life of loans.
CRE – 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
CRE – 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

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, CRE – Owner Occupied, CRE – 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 three and nine months ended September 30, (dollars in thousands):

Three Months Ended

Nine Months Ended

2024

Commercial

Consumer

Total

Commercial

Consumer

Total

Balance at beginning of period

131,139

26,992

158,131

105,896

26,286

132,182

Initial Allowance on PCD American National loans

—

2,609

1,287

3,896

Loans charged-off

(1,642)

(1,077)

(2,719)

(8,675)

(3,026)

(11,701)

Recoveries credited to allowance

1,292

761

2,053

2,881

1,497

4,378

Initial Provision - Non-PCD American National loans

—

11,213

2,016

13,229

Provision charged to operations

1,931

1,289

3,220

18,796

(95)

18,701

Balance at end of period

132,720

27,965

160,685

132,720

27,965

160,685


	Three Months Ended						Nine Months Ended
	2023						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

Summary of loans acquired from American National

The following table presents additional information related to the acquired American National loan portfolio at the acquisition date, including the initial ACL at acquisition on the PCD loans (dollars in thousands):


		April 1, 2024
PCD Loans:
Book value of acquired loans at acquisition	$	89,418
Initial ACL at acquisition		(3,896)
Non-credit discount at acquisition		(10,466)
Purchase Price	$	75,056

Non-PCD Loans:
Fair Value	$	2,073,037
Gross contractual amounts receivable		2,503,707
Estimate of contractual cash flows not expected to be collected		10,887

Commercial Portfolio Segment [Member]

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, (dollars in thousands):


		2024
		Term Loans Amortized Cost Basis by Origination Year											Revolving
	2024		2023		2022		2021		2020		Prior		Loans		Total
Construction and Land Development
Pass	$	248,772	$	546,827	$	453,332	$	124,660	$	21,372	$	47,130	$	103,907	$	1,546,000
Watch		—		4,019		2,187		1,135		—		1,048		—		8,389
Special Mention		1,824		827		296		226		1,332		2,492		—		6,997
Substandard		160		81		22,945		991		1,527		1,441		—		27,145
Total Construction and Land Development	$	250,756	$	551,754	$	478,760	$	127,012	$	24,231	$	52,111	$	103,907	$	1,588,531
Current period gross write-off	$	—	$	—	$	(392)	$	—	$	—	$	—	$	—	$	(392)

CRE – Owner Occupied
Pass	$	119,494	$	237,967	$	286,271	$	267,150	$	253,840	$	1,053,513	$	27,073	$	2,245,308
Watch		32,278		9,567		13,374		1,927		2,539		36,841		51		96,577
Special Mention		1,163		9,527		1,590		1,748		2,878		14,266		2,201		33,373
Substandard		—		932		1,021		358		1,921		22,317		—		26,549
Total CRE – Owner Occupied	$	152,935	$	257,993	$	302,256	$	271,183	$	261,178	$	1,126,937	$	29,325	$	2,401,807
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(354)	$	—	$	(354)

CRE – Non-Owner Occupied
Pass	$	220,707	$	520,289	$	664,692	$	851,291	$	387,340	$	1,903,875	$	42,583	$	4,590,777
Watch		—		152		1,477		5,936		4,037		54,881		—		66,483
Special Mention		397		—		17,947		5,125		3,355		62,509		12,750		102,083
Substandard		—		13,758		—		1,128		39,701		71,782		73		126,442
Total CRE – Non-Owner Occupied	$	221,104	$	534,199	$	684,116	$	863,480	$	434,433	$	2,093,047	$	55,406	$	4,885,785
Current period gross write-off	$	—	$	—	$	—	$	—	$	(3,386)	$	—	$	—	$	(3,386)

Commercial & Industrial
Pass	$	627,486	$	688,535	$	571,125	$	331,698	$	138,708	$	259,312	$	925,580	$	3,542,444
Watch		3,266		25,712		79,979		1,000		588		17,882		44,303		172,730
Special Mention		46		4,961		9,119		3,653		2,674		290		46,054		66,797
Substandard		61		696		1,249		2,145		620		3,725		9,405		17,901
Total Commercial & Industrial	$	630,859	$	719,904	$	661,472	$	338,496	$	142,590	$	281,209	$	1,025,342	$	3,799,872
Current period gross write-off	$	—	$	(42)	$	(239)	$	(5)	$	(113)	$	(600)	$	(962)	$	(1,961)

Multifamily Real Estate
Pass	$	39,570	$	28,510	$	226,917	$	427,559	$	240,473	$	339,438	$	36,318	$	1,338,785
Watch		—		—		1,722		—		—		—		—		1,722
Special Mention		—		—		—		—		250		1,196		—		1,446
Substandard		—		14,212		—		—		—		1,512		53		15,777
Total Multifamily Real Estate	$	39,570	$	42,722	$	228,639	$	427,559	$	240,723	$	342,146	$	36,371	$	1,357,730
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential 1-4 Family – Commercial
Pass	$	42,386	$	68,715	$	140,565	$	111,205	$	80,592	$	259,004	$	9,394	$	711,861
Watch		—		338		1,072		509		809		6,840		101		9,669
Special Mention		—		—		233		217		335		1,881		—		2,666
Substandard		519		—		—		232		613		3,502		253		5,119
Total Residential 1-4 Family – Commercial	$	42,905	$	69,053	$	141,870	$	112,163	$	82,349	$	271,227	$	9,748	$	729,315
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other Commercial
Pass	$	163,223	$	206,491	$	175,616	$	166,506	$	87,207	$	172,238	$	96,733	$	1,068,014
Watch		—		572		7,095		983		7,013		4,599		—		20,262
Special Mention		—		86		—		—		—		591		—		677
Substandard		—		493		—		—		41		2		99		635
Total Other Commercial	$	163,223	$	207,642	$	182,711	$	167,489	$	94,261	$	177,430	$	96,832	$	1,089,588
Current period gross write-off	$	—	$	—	$	—	$	—	$	—	$	(2,582)	$	—	$	(2,582)

Total Commercial
Pass	$	1,461,638	$	2,297,334	$	2,518,518	$	2,280,069	$	1,209,532	$	4,034,510	$	1,241,588	$	15,043,189
Watch		35,544		40,360		106,906		11,490		14,986		122,091		44,455		375,832
Special Mention		3,430		15,401		29,185		10,969		10,824		83,225		61,005		214,039
Substandard		740		30,172		25,215		4,854		44,423		104,281		9,883		219,568
Total Commercial	$	1,501,352	$	2,383,267	$	2,679,824	$	2,307,382	$	1,279,765	$	4,344,107	$	1,356,931	$	15,852,628
Total current period gross write-off	$	—	$	(42)	$	(631)	$	(5)	$	(3,499)	$	(3,536)	$	(962)	$	(8,675)

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 December 31, (dollars in thousands):


		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)

CRE – 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