To sum up, Atlantic Union had another solid quarter and a good 2019.

To sum up, Atlantic Union had another solid quarter and a good 2019.

We continue steadily to make constant progress against our strategic priorities and delivered good monetary performance despite headwinds through the negative rate of interest environment. We stay highly confident just just what the near future holds we have to deliver long-term sustainable financial performance for our customers, communities, teammates and shareholders for us, and the potential.

I am able to think about no better method to complete my feedback when you look at the brand brand New 12 months, than by reiterating Atlantic Union Bankshares is just a franchise that is uniquely valuable. It really is thick and compact in great areas with tale unlike just about any within our area. We’ve assembled the scale that is right the best markets therefore the right group to supply powerful in a franchise that will not be replicated in Virginia. We now have development possibilities inside our new york and Maryland operations with what we think will soon be a multi-year interruption, with certainly one of our biggest rivals.

We’ll now turn the decision up to Rob to pay for the results that are financial the quarter as well as for 2019. Rob?

Robert Michael GormanExecutive Vice President and Chief Financial Officer

Many thanks, John and morning that is good every person. Thanks for joining us today. We’d now want to just just take a few momemts to offer some information on Atlantic Union’s monetary outcomes for the 4th quarter and for 2019.

Please be aware that for the part that is most, my commentary will concentrate on Atlantic Union’s 4th quarter and full-year economic outcomes on a non-GAAP running foundation, which exclude $709,000 in after-tax merger-related expenses, and $713,000 in after-tax rebranding related costs into the 4th quarter. Moreover it excludes $22.3 million in after-tax costs that are merger-related $5.1 million in after-tax rebranding prices for the full-year of 2019.

For quality, i shall specify which monetary metrics take a reported versus non-GAAP running foundation. Into the 4th quarter, reported net gain ended up being $55.8 million and profits per share had been $0.69. That is up around $2.6 million or $0.04 through the 3rd quarter. When it comes to year finished 2019, reported income that is net $193.5 million and earnings per share had been $2.41, up $47 million or $0.19 per share from 2018 amounts.

Reported return on equity for the quarter that is fourth 8.81% and 7.89% for the full-year. Reported return on assets had been 1.27% when it comes to 4th quarter, and ended up being 1.15percent for 2019. Reported effectiveness ratio ended up being 57.4% when it comes to quarter and 62.37% for the full-year.

On a non-gaap running foundation, which because noted, excludes $1.4 million in after-tax merger-related expenses and rebranding-related charges for the quarter and $27.4 million when it comes to 12 months. Consolidated web profits when it comes to 4th quarter had been $57.3 million or $0.71 per share, which will be up from $56.1 million or $0.69 per share within the quarter that is third. For the year that is full working internet profits had been $221 million or $2.75 per share, which will be up $43 million or $0.04 per share from 2018 amounts.

The operating that is non-GAAP on concrete typical equity ended up being 16.01percent into the 4th quarter and ended up being 16.14% when it comes to full-year. The non-GAAP operating return on assets had been 1.3percent when you look at the 4th quarter and had been 1.31% for 2019. Non-GAAP efficiency that is operating ended up being 52.65% into the 4th quarter, and had been 53.6% for the full-year of 2019.

As being a reminder, we remain invested in attaining top tier financial performance in accordance with our peers. Because the autumn of 2018, we’ve been focusing on the operating that is following metrics. A return that is operating concrete typical equity within a variety of 16% to 18per cent and running return on assets within the number of 1.4per cent to 1.6per cent and a running efficiency ratio of 50% or reduced. We expected to operate in a rising rate environment, which will result in net interest margin expansion and solid revenue growth when we set these targets at the end of 2018. But this failed to materialize as market interest levels declined materially because the start of 2019.

With all this challenging current and expected running environment for banking institutions and its own effect on income development brought on by the intractable reduced for extended interest environment, which we have now anticipate will continue in 2021, our company is revising our running economic metric targets appropriately to your following. Return on tangible typical equity within a range of 15% to 17%; return on assets within the selection of 1.2percent to 1.4percent as well as an effectiveness ratio of 53% or reduced.

Our monetary performance goals are set regularly when you look at the top quartile among our peer group, no matter what the working environment and now we think these brand brand brand new objectives are reflective of this financial metrics necessary to achieve top tier monetary performance in today’s financial environment.

Now looking at the main aspects of the income declaration when it comes to 4th quarter, tax equivalent net interest earnings had been $137.8 million, down $1.6 million through the 3rd quarter, mainly due to reduce receiving asset yields, through the quarter, driven by reduced typical market prices and alterations in the typical receiving asset mix through the 3rd quarter.

Web accretion of purchase accounting adjustments for loans, time deposits and debt that is long-term included 18 foundation points to your web interest margin into the 4th quarter, which will be up through the 3rd quarter 13 foundation point effect mainly as a result of increased degrees of loan related-accretion earnings.

The 4th quarter’s tax equivalent net interest margin ended up being 3.55%. That is a decrease of 9 foundation points through the past quarter. When it comes to tax that is full-year margin ended up being 3.69%, which can be down 5 basis points from 2018’s web interest margin of 3.74%. The 9 foundation point decrease within the tax equivalent interest that is net for the 4th quarter had been principally because of an 18 foundation point decline in the yield on making assets, partially offset by a 9 foundation point decrease when you look at the price of funds. The 18 foundation point decline in the quarter-to-quarter asset that is earning had been primarily driven by 17 foundation point decrease when you look at the loan profile yield and a 3 foundation point negative effect associated with alterations in making asset mix within the quarter.

Decline within the loan profile yield of 17 foundation points had been driven by lower loan that is average of 22 foundation points, partially offset because of the 5 foundation point take advantage of higher loan accretion earnings. Typical loan yields were reduced, mainly as a result of the effect of decreases in market interest levels throughout the quarter. Particularly the significant decreases into the 30 days LIBOR and prime prices.

The 3 foundation point asset that is earning decrease caused by alterations in the receiving asset mix through the previous quarter had been because of the accumulation of liquidity throughout the quarter caused by the timing of deposit inflows early in the quarter therefore the capital of loan development later within the quarter, which willn’t carry over into future quarters. The quarterly 9 foundation point decrease when you look at the price of funds to at least one% ended up being mainly driven by way of a 28 foundation point decrease in wholesale borrowing expense, favorable alterations in the funding that is overall between quarters and also by reduced interest-bearing deposit expenses, which declined 6 basis points through the 3rd quarter’s 125 foundation points.

The supply for loan losings when it comes to 4th quarter ended up being $3.1 million or 10 basis points for an annualized foundation, that will be a decrease of $6 million or 19 foundation points through the 3rd quarter. The decline in the mortgage loss supply through the quarter that is previous mainly driven by reduced quantities of web charge-offs. When it comes to quarter of 2019, net charge-offs had been $4.6 million or 15 foundation points on an annualized foundation, when compared with $7.7 million or 25 foundation points for the quarter that is prior.

A significant amount of the net charge-offs came from non-relationship third-party consumer loans, which are in run-off mode as in previous quarters. For the 12 months, web charge-offs had been $20.9 million or 17 foundation points. Non-interest income declined to $29.2 million for the 4th quarter from $48.1 million within the quarter that is prior. The decline in non-interest earnings had been mainly driven by life insurance policies profits of around $9.3 million linked to the purchase of Xenith and an increase of around $7.1 million as a result of the purchase of investment securities recorded within the quarter that is third.

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