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 interest rate environment that is online installment loans mi adverse. We stay highly confident just exactly what the near future holds for people, as well as the potential we must deliver long-lasting sustainable monetary performance for the clients, communities, teammates and investors.

I’m able to consider no better method in order to complete my remarks within the brand brand New 12 months, than by reiterating Atlantic Union Bankshares is just a franchise that is uniquely valuable. It is thick and compact in great areas with a whole tale unlike some other within our area. We now have assembled the right scale, the proper areas therefore the right team to provide high end in a franchise that will not be replicated in Virginia. We now have development possibilities inside our new york and Maryland operations in just what we think should be a disruption that is multi-year with certainly one of our largest 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 everybody. Many thanks for joining us today. We’d now choose to simply simply just take a couple of minutes to offer you some information on Atlantic Union’s economic outcomes for the quarter that is fourth for 2019.

Please be aware that when it comes to many component, my commentary will give attention to 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 associated expenses within the 4th quarter. 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 am going to specify which economic metrics take a reported versus non-GAAP working foundation. Within the quarter that is fourth reported net gain was $55.8 million and profits per share had been $0.69. That is up more or less $2.6 million or $0.04 through the 3rd quarter. For the 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 when it comes to quarter that is fourth 8.81% and 7.89% for the full-year. Reported return on assets was 1.27percent when it comes to quarter that is fourth and ended up being 1.15% for 2019. Reported effectiveness ratio ended up being 57.4% for the quarter and 62.37% when it comes to full-year.

For a non-gaap working 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 for the 12 months. Consolidated web profits for the 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 into the 3rd quarter. For the complete year 2019 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 amounts.

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

As a reminder, we remain invested in achieving top tier financial performance in accordance with our peers. Because the fall of 2018, we’ve been focusing on the operating that is following metrics. A running return on concrete typical equity within a selection of 16% to 18per cent and running return on assets within the array of 1.4per cent to 1.6per cent 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. Nonetheless this would not materialize as market rates of interest declined materially since the start of 2019.

With all this challenging current and expected environment that is operating banking institutions as well as its effect on income development due to the intractable reduced for extended rate of interest environment, which we currently anticipate will continue in 2021, our company is revising our running monetary metric goals correctly into the after. Return on tangible typical equity within a selection of 15% to 17per cent; return on assets within the selection of 1.2percent to 1.4per cent and a effectiveness ratio of 53% or reduced.

Our economic performance objectives 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 new objectives are reflective regarding the financial metrics needed to achieve top tier monetary performance in the present environment that is economic.

Now embracing the main the different parts of the earnings declaration when it comes to 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 reduced average 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 foundation points to your web interest margin into the 4th quarter, that is up from 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 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 into the tax equivalent net interest margin for the 4th quarter had been principally because of an 18 basis point reduction in the yield on making assets, partially offset by way of a 9 foundation point decrease within the price of funds. The 18 foundation point decline in the quarter-to-quarter asset that is earning had been mainly driven by 17 foundation point decrease when you look at the loan profile yield and a 3 foundation point negative effect linked to alterations in making asset mix when you look at the quarter.

Decline within the loan profile yield of 17 foundation points was driven by reduced loan that is average 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 because of the effect of declines in market interest levels through the quarter. Notably the significant decreases when you look at the a month LIBOR and rates that are prime.

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

The supply for loan losses for the fourth quarter ended up being $3.1 million or 10 basis points on an annualized foundation, that is a loss of $6 million or 19 foundation points through the 3rd quarter. The reduction in the mortgage loss supply through the previous quarter ended up being mainly driven by lower quantities of web charge-offs. For the quarter of 2019, web charge-offs had been $4.6 million or 15 foundation points on 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 quantity of the web charge-offs originated in non-relationship third-party consumer loans, that are in run-off mode. For the 12 months, web charge-offs were $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 quarter that is prior. The decline in non-interest earnings ended up being mainly driven by life insurance coverage profits of around $9.3 million linked to the acquisition of Xenith and an increase of around $7.1 million as a result of purchase of investment securities recorded within the quarter that is third.

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