Annual report pursuant to Section 13 and 15(d)

PARENT COMPANY FINANCIAL INFORMATION

v3.20.4
PARENT COMPANY FINANCIAL INFORMATION
12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL INFORMATION

21. PARENT COMPANY FINANCIAL INFORMATION

The primary source of funds for the dividends paid by Atlantic 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, 2020, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $370.8 million, or 13.69%, of the consolidated net assets.

Financial information for the Parent Company is as follows:

PARENT COMPANY

CONDENSED BALANCE SHEETS

AS OF DECEMBER 31, 2020 and 2019

(Dollars in thousands)

    

2020

    

2019

ASSETS

 

  

 

  

Cash

$

116,748

$

5,283

Premises and equipment, net

 

10,435

 

10,568

Other assets

 

30,429

 

27,438

Investment in subsidiaries

 

2,858,608

 

2,786,842

Total assets

$

3,016,220

$

2,830,131

LIABILITIES AND STOCKHOLDERS' EQUITY

 

  

 

  

Long-term borrowings

$

148,806

$

157,155

Trust preferred capital notes

 

141,023

 

140,237

Other liabilities

 

17,901

 

19,637

Total liabilities

 

307,730

 

317,029

Total stockholders' equity

 

2,708,490

 

2,513,102

Total liabilities and stockholders' equity

$

3,016,220

$

2,830,131

PARENT COMPANY

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2020, 2019, and 2018

(Dollars in thousands)

    

2020

    

2019

    

2018

Income:

 

  

 

  

 

  

Interest and dividend income

$

$

3

$

Dividends received from subsidiaries

 

97,880

 

160,033

 

50,750

Other operating income

 

1,338

 

1,484

 

2,719

Total income

 

99,218

 

161,520

 

53,469

Expenses:

 

  

 

  

 

  

Interest expense

 

13,506

 

15,935

 

15,253

Other operating expenses

 

8,249

 

11,434

 

13,782

Total expenses

 

21,755

 

27,369

 

29,035

Income before income taxes and equity in undistributed net income from subsidiaries

 

77,463

 

134,151

 

24,434

Income tax benefit

 

(5,439)

 

(6,499)

 

(6,176)

Equity in undistributed net income from subsidiaries

 

75,326

 

52,878

 

115,638

Net income

$

158,228

$

193,528

$

146,248

Comprehensive income

$

193,668

$

239,376

$

136,905

PARENT COMPANY

CONDENSED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020, 2019, and 2018

(Dollars in thousands)

    

2020

    

2019

    

2018

Operating activities:

 

  

 

  

 

  

Net income

$

158,228

$

193,528

$

146,248

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

 

  

 

  

 

  

Equity in undistributed net income of subsidiaries

 

(75,326)

 

(52,878)

 

(115,638)

Depreciation of premises and equipment

 

439

 

424

 

424

Acquisition accounting amortization, net

 

735

 

662

 

636

Gain on sale of investment

 

 

 

(1,416)

Issuance of common stock for services

 

804

 

910

 

914

Net increase in other assets

 

(3,005)

 

(3,256)

 

(584)

Net increase (decrease) in other liabilities

 

10,038

 

4,964

 

(4,159)

Net cash provided by (used in) operating activities

 

91,913

 

144,354

 

26,425

Investing activities:

 

  

 

  

 

  

Net increase in premises and equipment

 

(306)

 

(355)

 

Proceeds from sale of investment

 

 

 

3,761

Increase in equity method investments

(2,353)

Cash paid in acquisitions

(12)

Cash received in acquisitions

 

 

21,553

 

25,976

Net cash provided by (used in) investing activities

 

(2,659)

 

21,186

 

29,737

Financing activities:

 

  

 

  

 

  

Net increase (decrease) in short-term borrowings

 

 

(5,000)

 

5,000

Repayments of long-term borrowings

 

(8,500)

 

 

Cash dividends paid - common stock

 

(78,860)

 

(78,345)

 

(58,001)

Cash dividends paid - preferred stock

(5,658)

Cancellation of warrants

 

 

 

(1,530)

Issuance (repurchase) of common stock

 

(48,866)

 

(78,292)

 

2,347

Issuance of preferred stock, net

166,356

Vesting of restricted stock, net of shares held for taxes

 

(2,261)

 

(2,301)

 

(2,908)

Net cash provided by (used in) financing activities

 

22,211

 

(163,938)

 

(55,092)

Increase (decrease) in cash and cash equivalents

 

111,465

 

1,602

 

1,070

Cash, cash equivalents and restricted cash at beginning of the period

 

5,283

 

3,681

 

2,611

Cash, cash equivalents and restricted cash at end of the period

$

116,748

$

5,283

$

3,681

Supplemental schedule of noncash investing and financing activities

 

  

 

  

 

  

Issuance of common stock in exchange for net assets in acquisition

$

$

499,974

$

794,809

Transactions related to bank acquisition

 

  

 

  

 

  

Assets acquired

 

 

509,075

 

859,176

Liabilities assumed

 

 

9,089

 

64,367