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

Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table provides a preliminary assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):


Purchase Price:
Fair value of shares of the Company's common stock issued			$	499,974
Cash paid for fractional shares				12
Total purchase price			$	499,986

Fair value of assets acquired:
Cash and cash equivalents	$	46,164
Investments		464,742
Loans		2,173,060
Premises and equipment		24,198
Core deposit intangibles		40,860
Other assets		100,649
Total assets	$	2,849,673

Fair value of liabilities assumed:
Deposits	$	2,227,073
Short-term borrowings		220,685
Long-term borrowings		70,535
Other liabilities		39,770
Total liabilities	$	2,558,063

Net assets acquired			$	291,610
Preliminary goodwill			$	208,376

Outstanding Principal Balance and Carrying Amount of Acquired Impaired Loans

The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):


Contractually required principal and interest payments	$	44,429
Nonaccretable difference		(6,062)
Cash flows expected to be collected		38,367
Accretable difference		(5,060)
Fair value of loans acquired with a deterioration of credit quality	$	33,307

Business Acquisition, Pro Forma Information

The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands):


	For the years ended
	December 31,
	2019		2018		2017
Total revenues	$	681,306	$	666,921	$	468,840
Net income	$	217,075	$	185,698	$	91,270
Earnings per share	$	2.53	$	2.28	$	1.59

Schedule of Effect of Amortization and Accretion Related to Acquisition

The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments, which includes previous acquisitions in addition to Access, had the following impact on the Consolidated Statements of Income during the years ended December 31, 2019, 2018, and 2017 (dollars in thousands):


	For the years ended
	December 31,
	2019		2018		2017
Loans⁽¹⁾	$	24,846	$	17,145	$	6,784
Buildings ⁽²⁾		50		228		—
Core deposit intangible ⁽³⁾		(16,755)		(11,464)		(5,603)
Other amortizable intangibles ⁽³⁾		(1,766)		(1,375)		(485)
Borrowings ⁽⁴⁾		(360)		(506)		170
Time deposits⁽⁵⁾		833		2,553		—
Leases ⁽²⁾		1,051		130		—
Net impact to income before taxes	$	7,899	$	6,711	$	866

(1)	Loan acquisition-related fair value adjustments accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company’s Consolidated Statements of Income.

(2)	Building and lease acquisition-related fair value adjustments amortization is included in "Occupancy expenses" in the "Noninterest expense" section of the Company’s Consolidated Statements of Income.

(3)	Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company’s Consolidated Statements of Income.

(4)	Borrowings acquisition-related fair value adjustments (amortization) accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company’s Consolidated Statements of Income.

(5)	Certificate of deposit acquisition-related fair value adjustments accretion is included in "Interest on deposits" in the "Interest expense" section of the Company’s Consolidated Statements of Income.