In conclusion, Atlantic Union had another solid quarter and a good 2019.

In conclusion, 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 interest rate environment that is adverse. We stay highly confident exactly 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’m able to think about no better means in order to complete my commentary when you look at the New 12 months, than by reiterating Atlantic Union Bankshares is really a franchise that is uniquely valuable. It’s dense and compact in great areas having tale unlike just about any within our area. We now have put together the right scale, the best areas while the right group to supply high end in a franchise that may not any longer be replicated in Virginia. We now have growth possibilities within our new york and Maryland operations with what we think is going to be a multi-year interruption, with certainly one of our largest rivals.

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

Robert Michael GormanExecutive Vice President and Chief Financial Officer

Many thanks, John and morning that is good every person. Today thanks for joining us. I would now want to take a few momemts to offer you some information on Atlantic Union’s economic outcomes for the quarter that is fourth for 2019.

Take note that when it comes to many component, my commentary will give attention to Atlantic Union’s 4th quarter and full-year economic outcomes for a non-GAAP working foundation, which exclude $709,000 in after-tax merger-related costs, and $713,000 in after-tax rebranding related expenses into the fourth quarter. It excludes $22.3 million in after-tax costs that are merger-related $5.1 million in after-tax rebranding charges for the full-year of 2019.

For quality, i shall specify which monetary metrics take a reported versus non-GAAP working basis. When you look at the 4th quarter, reported net gain had been $55.8 million and profits per share had been $0.69. That’s up around $2.6 million or $0.04 through the quarter that is third. For the year ended 2019, reported income that is net $193.5 million and profits per share were $2.41, up $47 million or $0.19 per share from 2018 levels.

Reported return on equity for the 4th quarter ended up being 8.81% and 7.89% when it comes to full-year. Reported return on assets had been 1.27percent for the quarter that is fourth and had been 1.15percent for 2019. Reported effectiveness ratio ended up being 57.4% for the 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 costs and rebranding-related prices 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, that will be up from $56.1 million or $0.69 per share within the 3rd quarter. When it comes to year that is full working internet profits had been $221 million or $2.75 per share, which can be up $43 million or $0.04 per share from 2018 amounts.

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

Being a reminder, we remain invested in attaining tier that is top performance relative to 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 into the array of 1.4per cent to 1.6% as well as a running effectiveness 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. Nevertheless this didn’t materialize as market interest levels declined materially considering that the start of 2019.

With all this challenging current and expected running environment for banking institutions and its own effect on income development due to the intractable lower for longer rate of interest environment, which we have now anticipate will continue in 2021, we have been revising our running monetary metric objectives correctly towards the after. Return on tangible typical equity within an array of 15% to 17per cent; return on assets within the variety of 1.2per cent to 1.4per cent and a efficiency ratio of 53% or reduced.

Our monetary performance objectives are set regularly when you look at the top quartile among our peer group, no matter what the working environment so we believe these brand brand new objectives are reflective associated with financial metrics expected to achieve top tier financial performance in the present financial environment.

Now looking at the main aspects of the earnings declaration for the 4th quarter, tax equivalent net interest earnings ended up being $137.8 million, down $1.6 million through the 3rd quarter, mainly due to reduce receiving asset yields, throughout the quarter, driven by lower 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 towards the web interest margin within the 4th quarter, which will be up through the 3rd quarter 13 basis point effect mainly because of increased degrees of loan related-accretion earnings.

The quarter that is fourth tax equivalent net interest margin ended up being 3.55%. That is a decrease of 9 foundation points through the quarter that is previous. For the tax that is full-year margin had been 3.69%, that is down 5 basis points from 2018’s web interest margin of 3.74%. The 9 foundation point decrease within the tax equivalent net interest margin for the 4th quarter ended up being principally because of an 18 foundation point decline in the yield on making assets, partially offset by a 9 foundation point decrease within the price of funds. The 18 foundation point decline in the quarter-to-quarter making asset yield ended up being mainly driven by 17 foundation point decline into the loan profile yield and a 3 foundation point negative effect pertaining to alterations in earning asset mix within the quarter.

Decline within the loan profile yield of 17 foundation points ended up being driven by lower normal loan yields of 22 foundation points, partially offset by the 5 foundation point take advantage of higher loan accretion earnings. Typical loan yields had been reduced, mainly as a result of the effect of decreases in market interest levels through the quarter. Particularly the significant decreases within the a month LIBOR and prime prices.

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The 3 foundation point asset that is earning decline caused by alterations in the receiving asset mix through the previous quarter had been because of the accumulation of liquidity through 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 within the price of funds to at least one% ended up being mainly driven by way of a 28 foundation point decrease in wholesale borrowing price, favorable alterations in the funding that is overall between quarters and also by reduced interest-bearing deposit expenses, which declined 6 foundation points from the 3rd quarter’s 125 foundation points.

The supply for loan losings for the 4th quarter ended up being $3.1 million or 10 foundation points on an annualized foundation, which can be a loss of $6 million or 19 foundation points through the 3rd quarter. The reduction in the mortgage loss provision through the past quarter had been mainly driven by reduced quantities of web charge-offs. For the quarter of 2019, web charge-offs were $4.6 million or 15 foundation points for an annualized foundation, when compared with $7.7 million or 25 foundation points when it comes to 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. When it comes to 12 months, web charge-offs had been $20.9 million or 17 foundation points. Non-interest income declined to $29.2 million when it comes to fourth quarter from $48.1 million into the quarter that is prior. The decline in non-interest income ended up being mainly driven by life insurance policies profits of about $9.3 million pertaining to the purchase of Xenith and an increase of around $7.1 million as a result of purchase of investment securities recorded within the 3rd quarter.

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