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 Losses (Tables)

Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

Loans and Allowance for Loan Losses [Abstract]

Loans stated at face amount, net of unearned income


	March 31, 2013		December 31, 2012
Commercial:
Commercial Construction	$	202,225	$	202,344
Commercial Real Estate - Owner Occupied		512,029		513,671
Commercial Real Estate - Non-Owner Occupied		705,036		682,760
Raw Land and Lots		202,114		205,726
Single Family Investment Real Estate		230,673		233,395
Commercial and Industrial		204,257		217,661
Other Commercial		53,865		47,551
Consumer:
Mortgage		222,949		220,567
Consumer Construction		39,306		33,969
Indirect Auto		163,491		157,518
Indirect Marine		39,118		36,586
HELOCs		283,070		288,092
Credit Card		21,204		21,968
Other Consumer		94,210		105,039

Total	$	2,973,547	$	2,966,847

Summary of aging of the loan portfolio, by class


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		Purchased Impaired (net of credit mark)		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	189	$	—	$	—	$	—	$	4,547	$	197,489	$	202,225
Commercial Real Estate - Owner Occupied		1,518		309		304		221		2,184		507,493		512,029
Commercial Real Estate - Non-Owner Occupied		957		417		156		—		804		702,702		705,036
Raw Land and Lots		332		1,003		43		2,555		6,353		191,828		202,114
Single Family Investment Real Estate		323		25		561		302		2,117		227,345		230,673
Commercial and Industrial		464		90		600		—		2,261		200,842		204,257
Other Commercial		390		—		441		—		190		52,844		53,865
Consumer:
Mortgage		6,275		1,610		1,362		—		1,533		212,169		222,949
Consumer Construction		—		—		—		—		239		39,067		39,306
Indirect Auto		1,320		237		273		17		—		161,644		163,491
Indirect Marine		65		—		114		—		158		38,781		39,118
HELOCs		774		367		1,371		821		2,173		277,564		283,070
Credit Card		181		153		227		—		—		20,643		21,204
Other Consumer		1,275		283		735		103		474		91,340		94,210

Total	$	14,063	$	4,494	$	6,187	$	4,019	$	23,033	$	2,921,751	$	2,973,547

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2012 (dollars in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and still Accruing		Purchased Impaired (net of credit mark)		Nonaccrual		Current		Total Loans
Commercial:
Commercial Construction	$	—	$	—	$	—	$	—	$	5,781	$	196,563	$	202,344
Commercial Real Estate - Owner Occupied		2,105		153		1,711		247		2,206		507,249		513,671
Commercial Real Estate - Non-Owner Occupied		866		63		207		—		812		680,812		682,760
Raw Land and Lots		277		—		75		2,942		8,760		193,672		205,726
Single Family Investment Real Estate		1,819		261		756		326		3,420		226,813		233,395
Commercial and Industrial		506		270		441		79		2,036		214,329		217,661
Other Commercial		70		182		1		—		193		47,105		47,551
Consumer:
Mortgage		5,610		2,244		3,017		—		747		208,949		220,567
Consumer Construction		157		—		—		—		235		33,577		33,969
Indirect Auto		2,504		276		329		21		—		154,388		157,518
Indirect Marine		67		—		114		—		158		36,247		36,586
HELOCs		3,063		640		1,239		845		1,325		280,980		288,092
Credit Card		269		101		397		—		—		21,201		21,968
Other Consumer		1,525		487		556		105		533		101,833		105,039

Total	$	18,838	$	4,677	$	8,843	$	4,565	$	26,206	$	2,903,718	$	2,966,847

Purchased impaired commercial and consumer loan portfolios, by class


	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Real Estate - Owner Occupied	$	—	$	173	$	48	$	221
Raw Land and Lots		—		—		2,555		2,555
Single Family Investment Real Estate		—		12		290		302
Consumer:
Indirect Auto		—		2		15		17
HELOCs		15		32		774		821
Other Consumer		—		—		103		103

Total	$	15	$	219	$	3,785	$	4,019


	30-89 Days Past Due		Greater than 90 Days		Current		Total
Commercial:
Commercial Real Estate - Owner Occupied	$	—	$	193	$	54	$	247
Raw Land and Lots		—		81		2,861		2,942
Single Family Investment Real Estate		—		14		312		326
Commercial and Industrial		—		79		—		79
Consumer:
Indirect Auto		3		2		16		21
HELOCs		—		51		794		845
Other Consumer		—		—		105		105

Total	$	3	$	420	$	4,142	$	4,565

Impaired loans individually evaluated for impairment, by class


	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	18,766	$	18,768	$	—	$	18,444	$	245
Commercial Real Estate - Owner Occupied		10,117		10,214		—		10,258		134
Commercial Real Estate - Non-Owner Occupied		11,384		11,466		—		12,938		162
Raw Land and Lots		34,101		34,168		—		34,480		310
Single Family Investment Real Estate		3,394		3,772		—		3,786		37
Commercial and Industrial		1,970		2,095		—		2,096		23
Consumer:
Mortgage		1,229		1,229		—		1,229		10
Indirect Marine		158		283		—		283		—
HELOCs		1,080		1,179		—		1,690		—
Other Consumer		12		13		—		13		—

Total impaired loans without a specific allowance	$	82,211	$	83,187	$	—	$	85,217	$	921


Loans with a specific allowance
Commercial:
Commercial Construction	$	8,264	$	8,747	$	460	$	8,861	$	55
Commercial Real Estate - Owner Occupied		2,674		2,827		808		2,833		7
Commercial Real Estate - Non-Owner Occupied		13,617		13,659		634		13,682		182
Raw Land and Lots		11,294		12,413		1,217		12,416		81
Single Family Investment Real Estate		3,059		3,436		249		3,441		12
Commercial and Industrial		8,541		8,622		1,049		8,679		87
Other Commercial		134		134		28		134		—
Consumer:
Mortgage		958		959		39		960		—
Consumer Construction		239		270		66		259		—
HELOCs		2,408		2,469		965		2,675		3
Other Consumer		462		496		197		496		—

Total impaired loans with a specific allowance	$	51,650	$	54,032	$	5,712	$	54,436	$	427

Total loans individually evaluated for impairment	$	133,861	$	137,219	$	5,712	$	139,653	$	1,348


	Recorded Investment		Unpaid Principal Balance		Related Allowance		YTD Average Investment		Interest Income Recognized
Loans without a specific allowance
Commercial:
Commercial Construction	$	28,212	$	28,695	$	—	$	28,925	$	1,237
Commercial Real Estate - Owner Occupied		13,356		13,449		—		14,362		773
Commercial Real Estate - Non-Owner Occupied		13,997		14,076		—		15,153		768
Raw Land and Lots		40,421		40,485		—		43,162		1,537
Single Family Investment Real Estate		5,348		6,046		—		6,887		242
Commercial and Industrial		1,582		1,610		—		1,926		105
Consumer:
Mortgage		857		857		—		892		43
Indirect Auto		4		4		—		8		—
Indirect Marine		158		283		—		283		3
HELOCs		1,330		1,429		—		1,481		5
Other Consumer		125		127		—		129		—

Total impaired loans without a specific allowance	$	105,390	$	107,061	$	—	$	113,208	$	4,713


Loans with a specific allowance
Commercial:
Commercial Construction	$	3,786	$	3,834	$	596	$	4,614	$	157
Commercial Real Estate - Owner Occupied		2,699		2,838		698		2,878		30
Commercial Real Estate - Non-Owner Occupied		13,791		13,828		691		13,896		761
Raw Land and Lots		9,711		9,919		2,411		10,656		145
Single Family Investment Real Estate		1,740		1,826		499		1,953		47
Commercial and Industrial		2,413		2,573		603		2,584		31
Other Commercial		134		134		28		134		—
Consumer:
Mortgage		545		549		154		550		—
Consumer Construction		235		262		106		230		—
HELOCs		1,563		1,630		942		1,840		25
Other Consumer		408		438		193		438		2

Total impaired loans with a specific allowance	$	37,025	$	37,831	$	6,921	$	39,773	$	1,198

Total loans individually evaluated for impairment	$	142,415	$	144,892	$	6,921	$	152,981	$	5,911

Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement


	March 31, 2013						December 31, 2012
	No. of Loans		Recorded Investment		Outstanding Commitment		No. of Loans		Recorded Investment		Outstanding Commitment
Performing
Commercial:
Commercial Construction		3	$	1,494	$	—		5	$	4,549	$	73
Commercial Real Estate - Owner Occupied		10		5,207		—		11		6,009		—
Commercial Real Estate - Non-Owner Occupied		10		7,837		11		10		13,103		—
Raw Land and Lots		13		22,560		—		13		22,886		—
Single Family Investment Real Estate		8		1,760		—		6		928		—
Commercial and Industrial		4		887		—		5		1,041		—
Other Commercial		1		236		—		1		236		—
Consumer:
Mortgage		13		2,401		—		12		2,256		—
Other Consumer		3		262		—		4		460		—

Total performing		65	$	42,644	$	11		67	$	51,468	$	73


Nonperforming
Commercial:
Commercial Construction		3	$	3,471	$	—		4	$	4,260	$	—
Commercial Real Estate - Owner Occupied		4		1,270		—		3		1,079		—
Commercial Real Estate - Non-Owner Occupied		2		510		—		2		514		—
Raw Land and Lots		2		4,013		—		2		4,032		—
Single Family Investment Real Estate		2		427		—		2		427		—
Commercial and Industrial		9		1,288		—		7		1,251		—
Consumer:
Mortgage		2		809		—		1		202		—
Indirect Marine		1		158		—		1		158		—
Other Consumer		1		66		—		1		68		—

Total nonperforming		26	$	12,012	$	—		23	$	11,991	$	—



Total performing and nonperforming		91	$	54,656	$	11		90	$	63,459	$	73

Schedule of TDR by class and modification type


	Three months ended March 31, 2013				Three months ended March 31, 2012
	No. of Loans		Recorded investment at period end		No. of Loans		Recorded investment at period end
Modified to interest only, at a market rate
Commercial:
Raw Land and Lots		—	$	—		3	$	329
Single Family Investment Real Estate		1		210		2		180
Consumer:
Mortgage		1		608		1		202

Total interest only at market rate of interest		2	$	818		6	$	711


Term modification, at a market rate
Commercial:
Commercial Real Estate - Owner Occupied		—	$	—		2	$	1,701
Raw Land and Lots		—		—		1		604
Single Family Investment Real Estate		1		630		—		—
Commercial and Industrial		1		56		1		104
Consumer:
Mortgage		1		166		1		273
Other Consumer		—		—		1		206

Total loan term extended at a market rate		3	$	852		6	$	2,888


Term modification, below market rate
Commercial:
Commercial Real Estate - Owner Occupied		1	$	206		1	$	10
Commercial and Industrial		1		10		—		—

Total loan term extended at a below market rate		2	$	216		1	$	10

Total		7	$	1,886		13	$	3,609

Allowance for loan loss activity, by portfolio segment, balances for allowance for credit losses, and loans based on impairment methodology


	Commercial			Consumer			Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year	$	24,821		$	10,107		$	(12	)	$	34,916
Recoveries credited to allowance		575			259			—			834
Loans charged off		(2,583	)		(802	)		—			(3,385	)
Provision charged to operations		1,869			135			46			2,050

Balance, end of period	$	24,682		$	9,699		$	34		$	34,415


Ending balance: individually evaluated for impairment		4,428			1,267			—			5,695


Ending balance: collectively evaluated for impairment		20,237			8,432			34			28,703


Ending balance: loans acquired with deteriorated credit quality		17			—			—			17


Total	$	24,682		$	9,699		$	34		$	34,415


Loans:
Ending balance: individually evaluated for impairment	$	124,237		$	5,605		$	—		$	129,842


Ending balance: collectively evaluated for impairment		1,982,884			856,802			—			2,839,686


Ending balance: loans acquired with deteriorated credit quality		3,078			941			—			4,019


Total	$	2,110,199		$	863,348		$	—		$	2,973,547


	Commercial			Consumer			Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year	$	27,891		$	11,498		$	81		$	39,470
Recoveries credited to allowance		589			1,122			—			1,711
Loans charged off		(12,852	)		(5,613	)		—			(18,465	)
Provision charged to operations		9,193			3,100			(93	)		12,200

Balance, end of year	$	24,821		$	10,107		$	(12	)	$	34,916


Ending balance: individually evaluated for impairment		5,404			1,395			—			6,799


Ending balance: collectively evaluated for impairment		19,295			8,712			(12	)		27,995


Ending balance: loans acquired with deteriorated credit quality		122			—			—			122


Total	$	24,821		$	10,107		$	(12	)	$	34,916


Loans:
Ending balance: individually evaluated for impairment		133,596			4,254			—			137,850


Ending balance: collectively evaluated for impairment		1,965,918			858,514			—			2,824,432


Ending balance: loans acquired with deteriorated credit quality		3,594			971			—			4,565


Total	$	2,103,108		$	863,739		$	—		$	2,966,847


	Commercial			Consumer			Unallocated			Total

Allowance for loan losses:
Balance, beginning of the year	$	27,891		$	11,498		$	81		$	39,470
Recoveries credited to allowance		66			275			—			341
Loans charged off		(1,399	)		(1,708	)		—			(3,107	)
Provision charged to operations		3,086			479			(65	)		3,500

Balance, end of period	$	29,644		$	10,544		$	16		$	40,204


Ending balance: individually evaluated for impairment		10,070			1,057			—			11,127


Ending balance: collectively evaluated for impairment		19,413			9,487			16			28,916


Ending balance: loans acquired with deteriorated credit quality		161			—			—			161


Total	$	29,644		$	10,544		$	16		$	40,204


Loans:
Ending balance: individually evaluated for impairment		215,948			6,701			—			222,649


Ending balance: collectively evaluated for impairment		1,763,200			847,769			—			2,610,969


Ending balance: loans acquired with deteriorated credit quality		7,071			1,069			—			8,140


Total	$	1,986,219		$	855,539		$	—		$	2,841,758

Loans receivables related risk rating excluding purchased impaired loans


	1-3		4		5		6		7		8		Total
Commercial Construction	$	9,629	$	116,422	$	14,529	$	38,408	$	23,237	$	—	$	202,225
Commercial Real Estate - Owner Occupied		145,030		328,232		12,425		16,735		9,386		—		511,808
Commercial Real Estate - Non-Owner Occupied		188,303		416,735		51,904		30,431		17,663		—		705,036
Raw Land and Lots		3,847		112,707		9,685		34,977		38,157		186		199,559
Single Family Investment Real Estate		40,424		158,361		11,492		13,215		6,879		—		230,371
Commercial and Industrial		57,487		118,163		9,144		7,816		11,647		—		204,257
Other Commercial		18,935		20,905		10,204		2,923		842		56		53,865

Total	$	463,655	$	1,271,525	$	119,383	$	144,505	$	107,811	$	242	$	2,107,121

The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating as of December 31, 2012. The risk rating information has been updated through December 31, 2012 (dollars in thousands):


	1-3		4		5		6		7		8		Total
Commercial Construction	$	5,504	$	117,769	$	14,637	$	33,815	$	30,619	$	—	$	202,344
Commercial Real Estate - Owner Occupied		145,977		321,486		15,197		19,051		11,713		—		513,424
Commercial Real Estate - Non-Owner Occupied		161,343		417,412		48,840		34,646		20,519		—		682,760
Raw Land and Lots		3,943		114,053		13,260		29,194		42,148		186		202,784
Single Family Investment Real Estate		43,705		156,636		12,111		13,150		7,467		—		233,069
Commercial and Industrial		68,308		120,442		10,584		12,064		6,045		139		217,582
Other Commercial		14,189		18,260		10,710		3,489		844		59		47,551

Total	$	442,969	$	1,266,058	$	125,339	$	145,409	$	119,355	$	384	$	2,099,514

Loans receivables related risk rating including purchased impaired loans


	5		6		7		8		Total
Commercial Real Estate - Owner Occupied	$	—	$	—	$	221	$	—	$	221
Raw Land and Lots		—		—		2,555		—		2,555
Single Family Investment Real Estate		290		—		12		—		302

Total	$	290	$	—	$	2,788	$	—	$	3,078

The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating as of December 31, 2012. The credit quality indicator information has been updated through December 31, 2012 (dollars in thousands):


	5		6		7		8		Total
Commercial Real Estate - Owner Occupied	$	—	$	—	$	247	$	—	$	247
Raw Land and Lots		—		—		2,942		—		2,942
Single Family Investment Real Estate		312		—		14		—		326
Commercial and Industrial		—		—		79		—		79

Total	$	312	$	—	$	3,282	$	—	$	3,594

Schedule of acquired loan portfolio and accretable yield


	For the Three Months Ended												For the Three Months Ended
	March 31, 2013												March 31, 2012
	Purchased Impaired						Purchased Nonimpaired						Purchased Impaired						Purchased Nonimpaired
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	3,147		$	4,565		$	5,350		$	473,283		$	5,140		$	9,897		$	9,010		$	663,510
Accretion		—			—			(579	)		—			(18	)		—			(1,256	)		—
Charge-offs		(11	)		(96	)		—			(380	)		(3	)		(3	)		—			(541	)
Transfers to OREO		—			(201	)		—			(207	)		—			(1,713	)		—			(2,766	)
Payments received, net		—			(249	)		—			(27,818	)		—			(41	)		—			(88,665	)

Balance at end of period	$	3,136		$	4,019		$	4,771		$	444,878		$	5,119		$	8,140		$	7,754		$	571,538