Atlantic Union Bankshares Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

BORROWINGS (Tables)

BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2019

Total short-term borrowings consist of the following as of June 30, 2019 and December 31, 2018 (dollars in thousands):


	June 30,			December 31,
	2019			2018
Securities sold under agreements to repurchase	$	70,870		$	39,197
Federal Funds Purchased		45,000			—
FHLB Advances		573,050			1,043,600
Other short-term borrowings		—			5,000
Total short-term borrowings	$	688,920		$	1,087,797

Maximum month-end outstanding balance	$	1,201,143		$	1,087,797
Average outstanding balance during the period		998,976			968,014
Average interest rate (during the period)		2.45	%		1.91	%
Average interest rate at end of period		2.29	%		2.43	%

Trust Preferred Capital Notes Qualify for Tier 1 Capital

The trust preferred capital notes currently qualify for Tier 2 capital of the Company for regulatory purposes. Trust preferred capital notes consist of the following as of June 30, 2019:


	Trust
	Preferred
	Capital				Spread to
	Securities ⁽¹⁾		Investment ⁽¹⁾		3-Month LIBOR		Rate ⁽²⁾		Maturity
Trust Preferred Capital Note - Statutory Trust I	$	22,500,000	$	696,000	2.75	%	5.07	%	6/17/2034
Trust Preferred Capital Note - Statutory Trust II		36,000,000		1,114,000	1.40	%	3.72	%	6/15/2036
VFG Limited Liability Trust I Indenture		20,000,000		619,000	2.73	%	5.05	%	3/18/2034
FNB Statutory Trust II Indenture		12,000,000		372,000	3.10	%	5.42	%	6/26/2033
Gateway Capital Statutory Trust I		8,000,000		248,000	3.10	%	5.42	%	9/17/2033
Gateway Capital Statutory Trust II		7,000,000		217,000	2.65	%	4.97	%	6/17/2034
Gateway Capital Statutory Trust III		15,000,000		464,000	1.50	%	3.82	%	5/30/2036
Gateway Capital Statutory Trust IV		25,000,000		774,000	1.55	%	3.87	%	7/30/2037
MFC Capital Trust II		5,000,000		155,000	2.85	%	5.17	%	1/23/2034
Total	$	150,500,000	$	4,659,000

(1)

The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company’s junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company’s investment in the trusts is reported in "Other Assets" on the Company’s Consolidated Balance Sheets.

(2)	Rate as of June 30, 2019.

Advances from the FHLB

As of June 30, 2019, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):


	Spread to
	3-Month		Interest
Long-term Type	LIBOR		Rate ⁽¹⁾		Maturity Date	Advance Amount
Adjustable Rate Credit	0.44	%	2.76	%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45	%	2.77	%	11/23/2022		65,000
Adjustable Rate Credit	0.45	%	2.77	%	11/23/2022		10,000
Adjustable Rate Credit	0.45	%	2.77	%	11/23/2022		10,000
Convertible Flipper	(0.50)	%	1.82	%	5/15/2024		200,000
Convertible Flipper	(0.75)	%	1.57	%	5/22/2029		150,000
Convertible Flipper	(0.75)	%	1.57	%	5/30/2029		50,000
Convertible Flipper	(0.75)	%	1.57	%	6/21/2029		100,000
Fixed Rate Convertible	-		1.78	%	10/26/2028		200,000
Fixed Rate Hybrid	-		2.37	%	10/10/2019		25,000
Fixed Rate Hybrid	-		1.58	%	5/18/2020		20,000
Fixed Rate Hybrid	-		2.65	%	10/24/2019		25,000
Fixed Rate Credit	-		1.54	%	10/2/2020		10,000
Fixed Rate Credit	-		1.32	%	10/2/2019		10,000
						$	930,000

(1)	Interest rates calculated using non-rounded numbers.

As of December 31, 2018, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):


	Spread to
	3-Month		Interest
Long-term Type	LIBOR		Rate ⁽¹⁾		Maturity Date	Advance Amount
Adjustable Rate Credit	0.44	%	3.25	%	8/23/2022	$	55,000
Adjustable Rate Credit	0.45	%	3.26	%	11/23/2022		65,000
Adjustable Rate Credit	0.45	%	3.26	%	11/23/2022		10,000
Adjustable Rate Credit	0.45	%	3.26	%	11/23/2022		10,000
Fixed Rate Convertible	-		1.78	%	10/26/2028		200,000
Fixed Rate Hybrid	-		2.37	%	10/10/2019		25,000
Fixed Rate Hybrid	-		1.58	%	5/18/2020		20,000
						$	385,000

(1)	Interest rates calculated using non-rounded numbers.

Contractual Maturities of Long-Term Debt

As of June 30, 2019, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):


	Trust
	Preferred						Fair Value
	Capital		Subordinated		FHLB		Premium		Prepayment		Total Long-term
	Notes		Debt		Advances		(Discount) ⁽¹⁾		Penalty		Borrowings
For the remaining six months of 2019	$	—	$	—	$	60,000	$	(321)	$	(1,024)	$	58,655
2020		—		—		30,000		(834)		(2,074)		27,092
2021		—		—		—		(1,008)		(2,119)		(3,127)
2022		—		—		140,000		(1,030)		(1,707)		137,263
2023		—		—		—		(1,053)		—		(1,053)
Thereafter		155,159		158,500		700,000		(12,238)		—		1,001,421
Total long-term borrowings	$	155,159	$	158,500	$	930,000	$	(16,484)	$	(6,924)	$	1,220,251

(1)	Includes discount on issued subordinated notes.