| PARENT COMPANY FINANCIAL INFORMATION |
19. 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, 2023, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $533.8 million or 20.9% of the consolidated net assets.
Financial information for the Parent Company is as follows:
PARENT COMPANY
CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 2023 and 2022
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
|
|
Cash |
|
$ |
32,336 |
|
$ |
17,472 |
Other assets |
|
|
30,344 |
|
|
41,942 |
Investment in subsidiaries |
|
|
2,927,459 |
|
|
2,748,863 |
Total assets |
|
$ |
2,990,139 |
|
$ |
2,808,277 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Long-term borrowings |
|
$ |
247,516 |
|
$ |
247,205 |
Trust preferred capital notes |
|
|
143,509 |
|
|
142,658 |
Other liabilities |
|
|
42,787 |
|
|
45,677 |
Total liabilities |
|
|
433,812 |
|
|
435,540 |
Total stockholders' equity |
|
|
2,556,327 |
|
|
2,372,737 |
Total liabilities and stockholders' equity |
|
$ |
2,990,139 |
|
$ |
2,808,277 |
PARENT COMPANY
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2023, 2022, and 2021
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2021 |
Income: |
|
|
|
|
|
|
|
|
|
Dividends received from subsidiaries |
|
$ |
122,000 |
|
$ |
102,215 |
|
$ |
119,500 |
Other operating income |
|
|
(1,136) |
|
|
(286) |
|
|
3,770 |
Total income |
|
|
120,864 |
|
|
101,929 |
|
|
123,270 |
Expenses: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
19,511 |
|
|
14,477 |
|
|
13,210 |
Other operating expenses |
|
|
12,479 |
|
|
9,819 |
|
|
17,471 |
Total expenses |
|
|
31,990 |
|
|
24,296 |
|
|
30,681 |
Income before income taxes and equity in undistributed net income from subsidiaries |
|
|
88,874 |
|
|
77,633 |
|
|
92,589 |
Income tax benefit |
|
|
(9,210) |
|
|
(10,892) |
|
|
(12,626) |
Equity in undistributed net income from subsidiaries |
|
|
103,734 |
|
|
145,985 |
|
|
158,702 |
Net income |
|
$ |
201,818 |
|
$ |
234,510 |
|
$ |
263,917 |
Comprehensive income (loss) |
|
$ |
276,755 |
|
$ |
(202,411) |
|
$ |
211,537 |
PARENT COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2023, 2022, and 2021
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
2021 |
Operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
201,818 |
|
$ |
234,510 |
|
$ |
263,917 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
Equity in undistributed net income of subsidiaries |
|
|
(103,734) |
|
|
(145,985) |
|
|
(158,702) |
Non-cash dividend |
|
|
— |
|
|
(27,215) |
|
|
— |
Depreciation of premises and equipment |
|
|
— |
|
|
— |
|
|
414 |
Write-down of corporate facilities |
|
|
— |
|
|
— |
|
|
7,429 |
Acquisition accounting amortization, net |
|
|
851 |
|
|
829 |
|
|
806 |
Issuance of common stock for services |
|
|
735 |
|
|
819 |
|
|
567 |
Net decrease (increase) in other assets |
|
|
3,256 |
|
|
(9,663) |
|
|
(10,726) |
Net increase in other liabilities |
|
|
24,302 |
|
|
11,370 |
|
|
12,944 |
Net cash provided by operating activities |
|
|
127,228 |
|
|
64,665 |
|
|
116,649 |
Investing activities: |
|
|
|
|
|
|
|
|
|
Proceeds from sale of former bank premises |
|
|
— |
|
|
2,524 |
|
|
— |
Increase in equity method investments |
|
|
(7,363) |
|
|
(8,830) |
|
|
(4,188) |
Net cash used in investing activities |
|
|
(7,363) |
|
|
(6,306) |
|
|
(4,188) |
Financing activities: |
|
|
|
|
|
|
|
|
|
Repayments of long-term borrowings |
|
|
— |
|
|
— |
|
|
(150,000) |
Net proceeds from issuance of long-term borrowings |
|
|
— |
|
|
— |
|
|
246,869 |
Cash dividends paid - common stock |
|
|
(91,417) |
|
|
(86,899) |
|
|
(84,307) |
Cash dividends paid - preferred stock |
|
|
(11,868) |
|
|
(11,868) |
|
|
(11,868) |
Repurchase of common stock |
|
|
— |
|
|
(48,231) |
|
|
(125,000) |
Issuance of common stock |
|
|
778 |
|
|
3,875 |
|
|
3,141 |
Vesting of restricted stock, net of shares held for taxes |
|
|
(2,494) |
|
|
(3,228) |
|
|
(2,580) |
Net cash used in financing activities |
|
|
(105,001) |
|
|
(146,351) |
|
|
(123,745) |
Increase (decrease) in cash and cash equivalents |
|
|
14,864 |
|
|
(87,992) |
|
|
(11,284) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
|
17,472 |
|
|
105,464 |
|
|
116,748 |
Cash, cash equivalents and restricted cash at end of the period |
|
$ |
32,336 |
|
$ |
17,472 |
|
$ |
105,464 |
|