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 adverse. 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 in order to complete my feedback into the 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 by having tale unlike some other in our area. We’ve put together the right scale, the best markets plus the right group to provide high end in a franchise that will not any longer be replicated in Virginia. We now have growth opportunities inside our new york and Maryland operations in just what we think will likely 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 good early morning, every person. Today thanks for joining us. I would now choose to simply simply take a few momemts to offer some information on Atlantic Union’s economic outcomes for the quarter that is fourth for 2019.

Take note that for the part that is most, my commentary will give attention to Atlantic Union’s 4th quarter and full-year economic outcomes for a non-GAAP running foundation, which exclude $709,000 in after-tax merger-related expenses, and $713,000 in after-tax rebranding associated expenses when you look at 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 charges for the full-year of 2019.

For quality, i am going to specify which monetary metrics take a reported versus non-GAAP running basis. 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 around $2.6 million or $0.04 through the 3rd quarter. For the year finished 2019, reported net gain ended up being $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 ended up being 8.81% and 7.89% for the full-year. Reported return on assets ended up being 1.27percent when it comes to 4th quarter, and had been 1.15percent for 2019. Reported effectiveness ratio had been 57.4% when it comes to quarter and 62.37% when it comes to 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, that is up from $56.1 million or $0.69 per share when you look at 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 amounts.

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

As being a reminder, we remain committed to attaining tier that is top performance in accordance with our peers. Considering that the autumn of 2018, we’ve been focusing on the following working economic metrics. A running return on concrete typical equity within a variety of 16% to 18per cent and running return on assets within the selection of 1.4per cent to 1.6% plus a operating effectiveness ratio of 50% or reduced. As soon as we set these goals by the end of 2018, we likely to run in a increasing price environment, that will end up in web interest margin expansion and solid income development. But this failed to materialize as market rates of interest 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 due to the intractable reduced for longer rate of interest environment, which we have now anticipate will continue in 2021, we have been revising our running economic metric goals correctly towards the after. Return on tangible equity that is common an array of 15% to 17per cent; return on assets when you look at the variety of 1.2per cent to 1.4percent and an effectiveness ratio of 53% or reduced.

Our economic performance goals are set regularly into the top quartile among our peer group, whatever the working environment and we also think these brand brand new goals are reflective associated with the financial metrics necessary to achieve top tier monetary performance in the present financial environment.

Now looking at the most important aspects of the earnings declaration when it comes to 4th quarter, tax equivalent net interest income 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 changes in the typical receiving asset mix through the 3rd quarter.

Web accretion of buy accounting adjustments for loans, time deposits and long-lasting financial obligation, added 18 foundation points to your web interest margin within the 4th quarter, which can be up through the 3rd quarter 13 foundation point impact mainly because of increased degrees of loan related-accretion earnings.

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

Decline within the loan portfolio yield of 17 foundation points had been driven by reduced loan that is average of 22 basis points, partially offset because of the 5 basis point take advantage of higher loan accretion earnings. Typical loan yields had been reduced, mainly because of the effect of decreases in market interest levels throughout the quarter. Particularly the significant decreases into the a month LIBOR and rates that are prime.

The 3 foundation point asset that is earning decrease caused by alterations in the earning asset mix through the previous quarter had been as a result 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 into the quarter, that shouldn’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 a 28 foundation point decrease in wholesale borrowing expense, favorable alterations 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 losings for the fourth quarter had been $3.1 million or 10 foundation points on an annualized foundation, that will be a loss 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, web charge-offs had been $4.6 million or 15 foundation points on an annualized basis, in comparison to $7.7 million or 25 foundation points when it comes to quarter that is prior.

Such as past quarters, an important quantity of the internet charge-offs originated in non-relationship third-party consumer loans, that are in run-off mode. 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 into the quarter that is prior. The decline in non-interest earnings had been mainly driven by life insurance coverage proceeds 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 when you look at the quarter that is third.

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