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, 2021

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans Stated at Face Amount, Net of Unearned Income

The Company’s loans are stated at their face amount, net of deferred fees and costs, and consist of the following at March 31, 2021 and December 31, 2020 (dollars in thousands):


	March 31, 2021		December 31, 2020
Construction and Land Development	$	884,303	$	925,798
Commercial Real Estate - Owner Occupied		2,083,155		2,128,909
Commercial Real Estate - Non-Owner Occupied		3,671,471		3,657,562
Multifamily Real Estate		842,906		814,745
Commercial & Industrial⁽¹⁾		3,599,884		3,263,460
Residential 1-4 Family - Commercial		658,051		671,949
Residential 1-4 Family - Consumer		816,916		822,866
Residential 1-4 Family - Revolving		563,786		596,996
Auto		406,349		401,324
Consumer		215,711		247,730
Other Commercial⁽²⁾		529,748		489,975
Total loans held for investment, net of deferred fees and costs⁽³⁾		14,272,280		14,021,314
Allowance for loan and lease losses		(142,911)		(160,540)
Total loans held for investment, net	$	14,129,369	$	13,860,774

⁽¹⁾ Commercial & industrial loans include approximately $1.5 billion and $1.2 billion in loans from the PPP at March 31, 2021 and December 31, 2020, respectively.

⁽²⁾ Other commercial loans include approximately $20.2 million and $11.3 million in loans from the PPP at March 31, 2021 and December 31, 2020, respectively.

⁽³⁾Total loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $83.8 million and $69.7 million as of March 31, 2021 and December 31, 2020, respectively.

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at March 31, 2021 (dollars in thousands):

Greater than

30-59 Days

60-89 Days

90 Days and

Current

Past Due

still Accruing

Nonaccrual

Total Loans

Construction and Land Development

880,139

865

473

189

2,637

884,303

Commercial Real Estate - Owner Occupied

2,069,019

3,426

514

3,180

7,016

2,083,155

Commercial Real Estate - Non-Owner Occupied

3,666,228

1,055

1,413

817

1,958

3,671,471

Multifamily Real Estate

842,638

187

—

842,906

Commercial & Industrial

3,593,508

3,086

613

654

2,023

3,599,884

Residential 1-4 Family - Commercial

645,684

1,803

798

576

9,190

658,051

Residential 1-4 Family - Consumer

791,466

6,831

808

3,041

14,770

816,916

Residential 1-4 Family - Revolving

557,335

1,397

284

917

3,853

563,786

Auto

404,692

1,035

165

154

303

406,349

Consumer

214,438

595

314

248

116

215,711

Other Commercial

529,253

407

—

529,748

Total loans held for investment

14,194,400

20,687

5,551

9,776

41,866

14,272,280

% of total loans

99.45

0.15

0.04

0.07

0.29

100.00

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2020 (dollars in thousands):


										Greater than
				30-59 Days			60-89 Days			90 Days and
	Current			Past Due			Past Due			still Accruing			Nonaccrual			Total Loans
Construction and Land Development	$	920,276		$	1,903		$	547		$	—		$	3,072		$	925,798
Commercial Real Estate - Owner Occupied		2,114,804			1,870			1,380			3,727			7,128			2,128,909
Commercial Real Estate - Non-Owner Occupied		3,651,232			2,144			1,721			148			2,317			3,657,562
Multifamily Real Estate		814,095			617			—			—			33			814,745
Commercial & Industrial		3,257,201			1,848			1,190			1,114			2,107			3,263,460
Residential 1-4 Family - Commercial		657,351			2,227			818			1,560			9,993			671,949
Residential 1-4 Family - Consumer		792,852			10,182			1,533			5,699			12,600			822,866
Residential 1-4 Family - Revolving		587,522			2,975			1,044			826			4,629			596,996
Auto		398,206			2,076			376			166			500			401,324
Consumer		245,551			1,166			550			394			69			247,730
Other Commercial		489,959			16			—			—			—			489,975
Total loans held for investment	$	13,929,049		$	27,024		$	9,159		$	13,634		$	42,448		$	14,021,314
% of total loans		99.34	%		0.19	%		0.07	%		0.10	%		0.30	%		100.00	%

Summary of Loans on Nonaccrual Status

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2021, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of March 31, 2021 (dollars in thousands):

Nonaccrual

January 1, 2021

March 31, 2021

Nonaccrual With No ALLL

90 Days and still Accruing

Construction and Land Development

3,072

2,637

1,985

189

Commercial Real Estate - Owner Occupied

7,128

7,016

1,994

3,180

Commercial Real Estate - Non-Owner Occupied

2,317

1,958

—

817

Multifamily Real Estate

—

Commercial & Industrial

2,107

2,023

654

Residential 1-4 Family - Commercial

9,993

9,190

6,388

576

Residential 1-4 Family - Consumer

12,600

14,770

2,364

3,041

Residential 1-4 Family - Revolving

4,629

3,853

917

Auto

500

303

—

154

Consumer

116

—

248

Total loans held for investment

42,448

41,866

12,792

9,776

The following table shows the Company’s amortized cost basis of loans on nonaccrual status as of January 1, 2020, as well as amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2020 (dollars in thousands):


	Nonaccrual
	January 1, 2020		December 31, 2020		Nonaccrual With No ALLL		90 Days and still Accruing
Construction and Land Development	$	4,060	$	3,072	$	1,985	$	—
Commercial Real Estate - Owner Occupied		13,889		7,128		1,994		3,727
Commercial Real Estate - Non-Owner Occupied		1,368		2,317		—		148
Multifamily Real Estate		—		33		—		—
Commercial & Industrial		3,037		2,107		1		1,114
Residential 1-4 Family - Commercial		6,492		9,993		6,388		1,560
Residential 1-4 Family - Consumer		13,117		12,600		1,069		5,699
Residential 1-4 Family - Revolving		2,490		4,629		60		826
Auto		565		500		—		166
Consumer		88		69		—		394
Other Commercial		98		—		—		—
Total loans held for investment	$	45,204	$	42,448	$	11,497	$	13,634

Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement

The following table provides a summary, by class, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of March 31, 2021 and December 31, 2020 (dollars in thousands):


	March 31, 2021					December 31, 2020
	No. of	Recorded		Outstanding		No. of	Recorded		Outstanding
	Loans	Investment		Commitment		Loans	Investment		Commitment
Performing
Construction and Land Development	4	$	212	$	—	4	$	215	$	—
Commercial Real Estate - Owner Occupied	5		1,827		—	6		2,033		176
Commercial Real Estate - Non-Owner Occupied	1		1,089		—	1		1,089		—
Commercial & Industrial	2		446		—	4		727		—
Residential 1-4 Family - Commercial	2		109		—	3		245		—
Residential 1-4 Family - Consumer	84		9,271		—	77		8,943		—
Residential 1-4 Family - Revolving	3		274		3	3		277		—
Consumer	4		35		—	3		22		—
Other Commercial	1		407		—	1		410		—
Total performing	106	$	13,670	$	3	102	$	13,961	$	176
Nonperforming
Commercial Real Estate - Owner Occupied	1	$	19	$	—	1	$	20	$	—
Commercial Real Estate - Non-Owner Occupied	1		128		—	1		134		—
Commercial & Industrial	4		427		—	3		237		—
Residential 1-4 Family - Commercial	3		404		—	4		1,296		—
Residential 1-4 Family - Consumer	26		4,977		—	23		4,865		—
Residential 1-4 Family - Revolving	3		103		—	3		103		—
Total nonperforming	38	$	6,058	$	—	35	$	6,655	$	—
Total performing and nonperforming	144	$	19,728	$	3	137	$	20,616	$	176

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the three months ended March 31, 2021 and 2020 (dollars in thousands):


	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
		Recorded			Recorded
	No. of	Investment at		No. of	Investment at
	Loans	Period End		Loans	Period End
Modified to interest only, at a market rate
Total interest only at market rate of interest	—	$	—	—	$	—

Term modification, at a market rate
Commercial & Industrial	—	$	—	1	$	517
Residential 1-4 Family - Consumer	2		105	—		—
Total loan term extended at a market rate	2	$	105	1	$	517

Term modification, below market rate
Construction and Land Development	—	$	—	1	$	35
Residential 1-4 Family - Consumer	9		472	10		1,763
Consumer	1		16	—		—
Total loan term extended at a below market rate	10	$	488	11	$	1,798

Interest rate modification, below market rate
Residential 1-4 Family - Commercial	1	$	45	—	$	—
Total interest only at below market rate of interest	1	$	45	—	$	—

Total	13	$	638	12	$	2,315

Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology

The following tables show the ALLL activity by segment for the three months ended March 31, 2021 and 2020 (dollars in thousands):


	Three Months Ended March 31, 2021
	Commercial		Consumer		Total
Balance at beginning of period	$	117,403	$	43,137	$	160,540
Loans charged-off		(1,974)		(1,667)		(3,641)
Recoveries credited to allowance		1,606		863		2,469
Provision charged to operations		(10,603)		(5,854)		(16,457)
Balance at end of period	$	106,432	$	36,479	$	142,911


	Three Months Ended March 31, 2020
	Commercial		Consumer		Total
Balance at beginning of period	$	30,941	$	11,353	$	42,294
Impact of ASC 326 adoption on non-PCD loans		4,432		40,666		45,098
Impact of ASC 326 adoption on PCD loans		1,752		634		2,386
Impact of adopting ASC 326		6,184		41,300		47,484
Loans charged-off		(2,968)		(4,183)		(7,151)
Recoveries credited to allowance		1,154		1,006		2,160
Provision charged to operations		42,532		13,724		56,256
Balance at end of period	$	77,843	$	63,200	$	141,043

Commercial Portfolio

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loans Receivables Related Risk Rating

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of March 31, 2021 (dollars in thousands):

March 31, 2021

Term Loans Amortized Cost Basis by Origination Year

2021

2020

2019

2018

2017

Prior

Revolving Loans

Total

Construction and Land Development

Pass

61,584

340,066

215,340

77,960

22,165

65,264

26,117

808,496

Watch

2,486

23,950

1,834

571

5,521

412

34,787

Special Mention

—

5,635

135

—

1,062

—

6,832

Substandard

—

28,395

5,785

—

34,188

Total Construction and Land Development

61,597

342,552

244,925

108,324

22,744

77,632

26,529

884,303

Commercial Real Estate - Owner Occupied

Pass

34,001

273,173

346,684

285,739

216,109

664,203

17,023

1,836,932

Watch

—

15,073

16,771

23,606

15,970

66,770

932

139,122

Special Mention

—

974

27,269

5,393

4,909

36,050

1,841

76,436

Substandard

—

4,950

5,060

158

20,497

—

30,665

Total Commercial Real Estate - Owner Occupied

34,001

289,220

395,674

319,798

237,146

787,520

19,796

2,083,155

Commercial Real Estate - Non-Owner Occupied

Pass

113,841

381,511

429,913

401,006

395,726

1,183,233

35,333

2,940,563

Watch

—

17,458

160,682

81,003

40,014

231,751

15,291

546,199

Special Mention

—

698

23,529

30,489

31,998

65,303

723

152,740

Substandard

—

10,991

—

13,263

—

7,715

—

31,969

Total Commercial Real Estate - Non-Owner Occupied

113,841

410,658

614,124

525,761

467,738

1,488,002

51,347

3,671,471

Commercial & Industrial

Pass

587,238

1,519,813

334,830

199,114

59,668

196,093

564,292

3,461,048

Watch

13,018

25,346

14,560

2,559

6,048

17,433

78,987

Special Mention

15,235

1,260

6,396

3,669

4,630

1,731

11,265

44,186

Substandard

—

527

4,942

1,278

303

2,865

5,748

15,663

Total Commercial & Industrial

602,496

1,534,618

371,514

218,621

67,160

206,737

598,738

3,599,884

Multifamily Real Estate

Pass

8,219

143,295

114,224

166,220

102,337

269,062

2,927

806,284

Watch

—

4,398

471

—

24,243

—

29,112

Special Mention

—

2,280

640

4,383

—

7,397

Substandard

—

113

—

113

Total Multifamily Real Estate

8,219

145,575

119,262

171,074

102,337

293,512

2,927

842,906

Residential 1-4 Family - Commercial

Pass

20,945

106,176

82,343

62,283

74,998

254,905

2,294

603,944

Watch

—

659

3,898

8,013

3,916

13,632

193

30,311

Special Mention

165

—

2,744

456

444

6,007

—

9,816

Substandard

—

773

5,433

1,444

5,842

488

13,980

Total Residential 1-4 Family - Commercial

21,110

106,835

89,758

76,185

80,802

280,386

2,975

658,051

Other Commercial

Pass

50,013

216,949

111,954

8,870

30,297

57,341

21,903

497,327

Watch

—

605

1,286

3,835

—

5,726

Special Mention

—

612

26,078

26,695

Total Other Commercial

50,013

216,949

111,954

9,475

31,588

61,788

47,981

529,748

Total Commercial

Pass

875,841

2,980,983

1,635,288

1,201,192

901,300

2,690,101

669,889

10,954,594

Watch

48,694

235,045

130,092

64,316

351,800

34,261

864,244

Special Mention

15,400

5,212

66,213

44,525

41,986

110,859

39,907

324,102

Substandard

—

11,518

10,665

53,429

1,913

42,817

6,236

126,578

Total Commercial

891,277

3,046,407

1,947,211

1,429,238

1,009,515

3,195,577

750,293

12,269,518

The table below details the amortized cost of the classes of loans within the Commercial segment by risk level and year of origination as of December 31, 2020 (dollars in thousands):


		December 31, 2020
		Term Loans Amortized Cost Basis by Origination Year


	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Construction and Land Development
Pass	$	316,585	$	277,142	$	116,800	$	24,770	$	42,970	$	54,023	$	23,324	$	855,614
Watch		1,873		18,181		8,434		344		2,355		6,372		412		37,971
Special Mention		—		5,532		135		—		—		2,655		—		8,322
Substandard		—		—		17,780		64		2,037		4,010		—		23,891
Total Construction and Land Development	$	318,458	$	300,855	$	143,149	$	25,178	$	47,362	$	67,060	$	23,736	$	925,798

Commercial Real Estate - Owner Occupied
Pass	$	286,522	$	375,541	$	300,583	$	233,359	$	128,261	$	570,361	$	18,838	$	1,913,465
Watch		1,942		14,611		22,224		15,623		24,979		41,361		1,648		122,388
Special Mention		988		6,052		5,749		4,198		9,907		30,455		1,121		58,470
Substandard		—		4,858		5,159		914		1,555		21,101		999		34,586
Total Commercial Real Estate - Owner Occupied	$	289,452	$	401,062	$	333,715	$	254,094	$	164,702	$	663,278	$	22,606	$	2,128,909

Commercial Real Estate - Non-Owner Occupied
Pass	$	381,849	$	455,427	$	433,183	$	403,677	$	336,630	$	850,035	$	30,421	$	2,891,222
Watch		28,354		142,279		76,838		59,451		79,533		224,944		16,870		628,269