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

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

We continue to make steady 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 what the near future holds for people, while the potential we must deliver long-term sustainable economic performance for our clients, communities, teammates and investors.

I’m able to think about no better method to complete my feedback within the brand New Year, than by reiterating Atlantic Union Bankshares is really a franchise that is uniquely valuable. It is thick and compact in great areas by having tale unlike virtually any within our area. We now have put together the scale that is right just the right areas additionally the right group to supply high end in a franchise that may no further be replicated in Virginia. We now have development possibilities within our new york and Maryland operations in exactly what we think should be a disruption that is multi-year 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 2019. Rob?

Robert Michael GormanExecutive Vice President and Chief Financial Officer

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

Please be aware that for the many component, my commentary will concentrate on Atlantic Union’s fourth quarter and full-year economic outcomes on a non-GAAP working foundation, which exclude $709,000 in after-tax merger-related expenses, and $713,000 in after-tax rebranding associated expenses within the 4th quarter. Moreover it excludes $22.3 million in after-tax merger-related expenses and $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 working foundation. Into the quarter that is fourth reported net income had been $55.8 million and profits per share had been $0.69. That is up about $2.6 million or $0.04 through the quarter that is third. For the year finished 2019, reported income that is net $193.5 million and profits per share had been $2.41, up $47 million or $0.19 per share from 2018 amounts.

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

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

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

Being a reminder, we remain focused on achieving top tier financial performance in accordance with our peers. Because the autumn of 2018, we have been targeting the operating that is following metrics. A return that is operating tangible typical equity within a variety of 16% to 18per cent and operating return on assets into the variety of 1.4per cent to 1.6per cent plus a running effectiveness ratio of 50% or reduced. Once we set these goals at the conclusion of 2018, we anticipated to run in a increasing price environment, that will lead to web interest margin expansion and solid revenue development. Nevertheless this would not materialize as market interest levels declined materially considering that the start of 2019.

With all this challenging current and expected environment that is operating 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, we have been revising our running economic metric goals appropriately towards the after. Return on tangible typical equity within a selection of 15% to 17per cent; return on assets into the number of 1.2per cent to 1.4per cent as well as an effectiveness ratio of 53% or reduced.

Our monetary performance goals are set regularly into the top quartile among our peer group, no matter what the working environment so we think these brand brand new goals are reflective regarding the financial metrics needed to achieve top tier monetary performance in the present environment that is economic.

Now embracing the main aspects of the earnings declaration for the 4th quarter, tax equivalent net interest income ended up being $137.8 million, down $1.6 million through the 3rd quarter, mainly due to lower receiving asset yields, throughout the quarter, driven by reduced typical market prices and alterations in the typical receiving asset mix from the 3rd quarter.

Web accretion of buy accounting adjustments for loans, time deposits and debt that is long-term included 18 basis points towards the web interest margin within the 4th quarter, that is up through the 3rd quarter 13 foundation point effect primarily because of increased degrees of loan related-accretion earnings.

The 4th quarter’s tax equivalent net interest margin was 3.55%. Which is a decrease of 9 foundation points through the past quarter. 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 into 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 with a 9 foundation point decrease when you look at the price of funds. The 18 foundation point decline in the quarter-to-quarter making asset yield had been mainly driven by 17 basis point decrease into 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 reduced loan that is average of 22 foundation points, partially offset because of the 5 foundation point reap the benefits of higher loan accretion earnings. Normal loan cash call yields had been reduced, mainly because of the effect of decreases in market rates of interest through the quarter. Particularly the significant decreases into the a month LIBOR and prime prices.

The 3 foundation point making asset yield decrease caused by alterations in the receiving asset mix through the previous quarter had been as a result of accumulation of liquidity through the quarter caused by the timing of deposit inflows at the beginning of the quarter plus the money of loan development later when you look at the quarter, that ought ton’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 foundation points through the 3rd quarter’s 125 foundation points.

The provision for loan losings for the 4th quarter had been $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 quarter that is third. The reduction in the mortgage loss supply through the quarter that is previous mainly driven by lower quantities of web charge-offs. When it comes to quarter of 2019, web charge-offs had been $4.6 million or 15 foundation points for an annualized foundation, in comparison to $7.7 million or 25 foundation points for the quarter that is prior.

Like in past quarters, an important level of the web charge-offs originated in non-relationship third-party consumer loans, that are in run-off mode. When it comes to 12 months, web charge-offs had been $20.9 million or 17 basis points. Non-interest income declined to $29.2 million for the 4th quarter from $48.1 million within the previous quarter. The reduction in non-interest earnings ended up being mainly driven by life insurance coverage profits of about $9.3 million associated with the purchase of Xenith and an increase of around $7.1 million because of the purchase of investment securities recorded into the 3rd quarter.