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

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

We continue steadily to make constant progress against our strategic priorities and delivered good financial performance despite headwinds through the interest rate environment that is adverse. We stay highly confident exactly exactly exactly what the near future holds for all of us, additionally the potential we must deliver long-lasting sustainable monetary performance for the clients, communities, teammates and investors.

I could think about no better method to complete my reviews in the brand brand New 12 months, than by reiterating Atlantic Union Bankshares is a franchise that is uniquely valuable. It is thick and compact in great areas by having a whole tale unlike every other inside our area. We now have put together the right scale, the proper areas plus the right group to produce high end in a franchise that may not any longer be replicated in Virginia. We now have development possibilities within our new york and Maryland operations with what we think are going to be a disruption that is multi-year with certainly one of our biggest rivals.

We’ll now turn the decision up to Rob to cover the economic outcomes for the quarter as well as for 2019. Rob?

Robert Michael GormanExecutive Vice President and Chief Financial Officer

Thank you, John and morning that is good everyone else. Thank you for joining us today. We’d now choose to simply take a couple of minutes to offer some details of Atlantic Union’s monetary outcomes for the fourth quarter and for 2019.

Take note that for the many component, my commentary will give attention to Atlantic Union’s 4th quarter and full-year economic results for a non-GAAP working foundation, which exclude $709,000 in after-tax merger-related expenses, and $713,000 in after-tax rebranding associated costs within the 4th quarter. In addition 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 am going to specify which monetary metrics take a reported versus operating basis that is non-GAAP. When you look at the 4th quarter, reported net gain ended up being $55.8 million and profits per share had been $0.69. That is up approximately $2.6 million or $0.04 through the third quarter. For the year finished 2019, reported net gain had been $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 for the 4th quarter had been 8.81% and 7.89% for the full-year. Reported return on assets ended up being 1.27percent for the quarter that is fourth and had been 1.15percent for 2019. Reported effectiveness ratio was 57.4% for the quarter and 62.37% when it comes to full-year.

On a non-gaap working foundation, which because noted, excludes $1.4 million in after-tax merger-related costs 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, that will be up from $56.1 million or $0.69 per share into the 3rd quarter. 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 tangible typical equity ended up being 16.01per cent when you look at 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 within 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 fourth quarter, and ended up being 53.6% for the full-year of 2019.

As being a reminder, we remain focused on achieving top tier financial performance in accordance with our peers. Because the fall of 2018, we’ve been focusing on the following running economic metrics. A running return on concrete typical equity within a variety of 16% to 18per cent and running return on assets into the number of 1.4per cent to 1.6per cent plus 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 rates of interest declined materially because the start of 2019.

With all this challenging current and expected environment that is operating banking institutions and its particular effect on income development brought on by the intractable reduced for extended rate of interest environment, which we have now anticipate will persist in 2021, we have been revising our running economic metric objectives appropriately into the after. Return on tangible equity that is common a range of 15% to 17per cent; return on assets into the variety of 1.2per cent to 1.4percent plus a efficiency ratio of 53% or lower.

Our economic performance goals are set regularly into the top quartile among our peer group, no matter what the running environment therefore we think these brand brand new objectives are reflective associated with financial metrics necessary to achieve top tier monetary performance in today’s financial environment.

Now looking at the main aspects of the earnings 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, throughout the quarter, driven by reduced typical market prices and alterations in the typical receiving asset mix through the 3rd quarter.

Web accretion of buy accounting adjustments for loans, time deposits and debt that is long-term included 18 foundation points into the web interest margin when you look at the 4th quarter, that is up through the 3rd quarter 13 foundation point effect primarily as a result of increased degrees of loan related-accretion earnings.

The quarter that is fourth tax equivalent net interest margin had been 3.55%. That is a decrease of 9 foundation points through the past quarter. For the full-year taxation interest margin ended up being 3.69%, that will 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 fourth quarter ended up being principally due to an 18 foundation point reduction 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 earning asset yield had been mainly driven by 17 foundation point decrease within the loan portfolio yield and a 3 foundation point negative effect pertaining to alterations in making asset mix into the quarter.

Decline when you look at the loan profile yield of 17 foundation points ended up being 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 were reduced, mainly as a result of impact of decreases in market interest levels throughout the quarter. Notably the significant decreases when you look at 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 ended up being as a result of accumulation of liquidity through the quarter caused by the timing of deposit inflows at the beginning of the quarter additionally the financing of loan development later into the quarter, which willn’t carry over into future quarters. The quarterly 9 foundation point decline within the price of funds to at least one% ended up being primarily driven by way of a 28 foundation point decrease in wholesale borrowing cost, favorable alterations in the general money 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 when it comes to 4th quarter ended up being $3.1 million or 10 foundation points for an annualized basis, which will be a loss of $6 million or 19 foundation points from the 3rd quarter. The decline in the advance financial interest rates mortgage loss supply through the quarter that is previous mainly driven by reduced quantities of web charge-offs. For the 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 when it comes to quarter that is prior.

As in past quarters, an important number 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 were $20.9 million or 17 foundation points. Non-interest income declined to $29.2 million for the 4th quarter from $48.1 million into the previous quarter. The decline in non-interest income had been mainly driven by term life insurance profits of around $9.3 million linked to the purchase of Xenith and an increase of around $7.1 million as a result of purchase of investment securities recorded when you look at the 3rd quarter.

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