Annual report pursuant to Section 13 and 15(d)

PARENT COMPANY FINANCIAL INFORMATION

v3.10.0.1
PARENT COMPANY FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL INFORMATION
PARENT COMPANY FINANCIAL INFORMATION
 
The primary source of funds for the dividends paid by Union Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2018, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $220.5 million, or 11.46%, of the consolidated net assets.
 
Financial information for the Parent Company is as follows:
 
PARENT COMPANY
CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2018 and 2017
(Dollars in thousands)
 
 
2018
 
2017
ASSETS
 

 
 

Cash
$
3,681

 
$
2,611

Premises and equipment, net
10,637

 
11,061

Other assets
13,386

 
15,036

Investment in subsidiaries
2,202,530

 
1,263,545

Total assets
$
2,230,234

 
$
1,292,253

LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

Short-term borrowings
5,000

 

Long-term borrowings
157,057

 
148,201

Trust preferred capital notes
134,342

 
86,819

Other liabilities
9,254

 
10,904

Total liabilities
305,653

 
245,924

Total stockholders' equity
1,924,581

 
1,046,329

Total liabilities and stockholders' equity
$
2,230,234

 
$
1,292,253


 

PARENT COMPANY
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2018, 2017, and 2016
(Dollars in thousands)
 
 
2018
 
2017
 
2016
Income:
 

 
 

 
 

Interest and dividend income
$

 
$
3

 
$
23

Dividends received from subsidiaries
50,750

 
33,350

 
51,439

Other operating income
2,719

 
1,308

 
1,314

Total income
53,469

 
34,661

 
52,776

Expenses:
 

 
 

 
 

Interest expense
15,253

 
11,423

 
5,656

Other operating expenses
13,782

 
7,130

 
5,214

Total expenses
29,035

 
18,553

 
10,870

Income before income taxes and equity in undistributed net income from subsidiaries
24,434

 
16,108

 
41,906

Income tax benefit
(6,176
)
 
(9,169
)
 
(3,586
)
Equity in undistributed net income from subsidiaries
115,638

 
47,646

 
31,984

Net income
$
146,248

 
$
72,923

 
$
77,476

Comprehensive income
$
136,905

 
$
75,848

 
$
67,415


 
PARENT COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017, and 2016
(Dollars in thousands)
 
 
2018
 
2017
 
2016
Operating activities:
 

 
 

 
 

Net income
$
146,248

 
$
72,923

 
$
77,476

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

 
 

Equity in undistributed net income of subsidiaries
(115,638
)
 
(47,646
)
 
(31,984
)
Depreciation of premises and equipment
424

 
439

 
438

Acquisition accounting amortization, net
636

 
260

 
247

Gain on sale of investment
(1,416
)
 

 

Issuance of common stock grants for services
914

 
724

 
533

Net (increase) decrease in other assets
(584
)
 
(4,167
)
 
(2,402
)
Net increase in other liabilities
(4,159
)
 
5,283

 
5,533

Net cash and cash equivalents provided by operating activities
26,425

 
27,816

 
49,841

Investing activities:
 

 
 

 
 

Net increase in premises and equipment

 
(35
)
 
(33
)
Proceeds from sale of investment
3,761

 

 

Proceeds from (payments for) equity method investment

 
72

 

Payments for investments in and advances to subsidiaries

 

 
(125,000
)
Repayment of investments in and advances to subsidiaries

 

 
540

Cash received in acquisitions
25,976

 

 

Net cash and cash equivalents provided by (used in) investing activities
29,737

 
37

 
(124,493
)
Financing activities:
 

 
 

 
 

Repayments of short-term borrowings
5,000

 

 

Repayments of long-term borrowings

 

 
(7,500
)
Proceeds from issuance of long-term borrowings

 

 
148,000

Cash dividends paid
(58,001
)
 
(35,393
)
 
(33,672
)
Cancellation of warrants
(1,530
)
 

 

Issuance (repurchase) of common stock
2,347

 
1,037

 
(31,295
)
Vesting of restricted stock, including tax effects
(2,908
)
 
(1,567
)
 
(586
)
Net cash and cash equivalents provided by (used in) financing activities
(55,092
)
 
(35,923
)
 
74,947

Net increase (decrease) in cash and cash equivalents
1,070

 
(8,070
)
 
295

Cash and cash equivalents at beginning of the period
2,611

 
10,681

 
10,386

Cash and cash equivalents at end of the period
$
3,681

 
$
2,611

 
$
10,681

Supplemental schedule of noncash investing and financing activities
 

 
 

 
 

Issuance of common stock in exchange for net assets in acquisition
$
794,809

 
$

 
$

 
 
 
 
 
 
Transactions related to bank acquisition
 

 
 

 
 

Assets acquired
859,176

 

 

Liabilities assumed
64,367