The reduction in running, non-interest expense had been mainly as a result of the recognition of around $16.4 million loss on financial obligation extinguishment when you look at the 3rd quarter, resulting from the payment of around $140 million in Federal mortgage Bank improvements therefore the termination of relevant income hedges.

The reduction in running, non-interest expense had been mainly as a result of the recognition of around $16.4 million loss on financial obligation extinguishment when you look at the 3rd quarter, resulting from the payment of around $140 million in Federal mortgage Bank improvements therefore the termination of relevant income hedges.

Salaries and benefits declined by $2.5 million, mainly due to lessen incentive payment expense, and greater deferred costs related to new loan originations. This decreases were partially offset by increases in advertising cost of around $1.1 million because of increases in direct mail and sponsorships, expert costs of $955,000 linked to greater consulting charges for strategic initiatives, FDIC costs of $873,000 mainly as a result of a reduced FDIC little bank evaluation credit made into the fourth quarter and OREO and credit-related cost of around $542,000 because of OREO valuation changes driven by updated appraisals received through the quarter.

Being a reminder, we realized our $25 million access-related merger cost saves target on a run price basis at the conclusion regarding the quarter that is third. Additionally take note that individuals try not to expect you’ll incur any merger that is additional or rebranding expenses in 2020. The effective income tax price for the 4th quarter ended up being 16.7%, when compared with 16.8per cent within the quarter that is third. When it comes to full-year the effective taxation price ended up being 16.2%. In 2020, we anticipate the complete 12 months effective taxation price to stay the 16.5per cent to 17per cent range.

Looking at the total amount sheet, period end total assets endured at $17.6 billion at December 31st, which will be a growth of $122 million from September 30 amounts and a growth of $3.8 billion from December 31st, 2018 amounts mainly because of Access purchase and loan development through the year. At quarter end loans held for investment had been $12.6 billion, a rise of $304 million or about 10% annualized, while average loans increased $87.4 million or 2.9% annualized through the quarter that is prior.

On a professional forma foundation, as though the Access purchase had closed on January first rather than February first, year-to-date loan balances expanded more or less 6% on an annualized foundation through December 31st of 2019. Looking forward, as John pointed out, we task loan development of roughly 6% to 8% when it comes to full-year of 2020 comprehensive for the anticipated run away from third-party customer loan balances.

At December 31st total deposits endured at $13.3 billion, a rise of $260.3 million or around 8% from September 30th, while typical deposits increased $491 million or 15.3per cent annualized through the previous quarter. Deposit stability development through the quarter that is fourth driven by increases in cash market and interest checking balances, partially offset by regular decreases sought after deposits and lower time deposit account balances.

On a professional forma foundation, just as if the Access purchase had closed on January deposit that is 1st increased more or less 9% when it comes to full-year. Loan to deposit ratio had been 94.8% at year-end, which will be consistent with our 95% target. For 2020 as John noted, we be prepared to attain deposit development of 6% to 8per cent, that will be in accordance with our loan development objectives.

Now looking at credit quality, non-performing assets totaled $32.9 million or 26 foundation points, as a share of total loans, a decrease of $3.5 million or 4 foundation points from 3rd quarter amounts. The allowance for loan losings reduced $1.5 million from September 30th to $42.3 million, mainly due to reduce incurred losings embedded in the customer loan profile since it will continue to reduce and a better environment that is economic that was partially offset by loan development throughout the quarter.

And from now on I wish to offer further ideas on the way the use associated with current expected credit-loss model or CECL will affect Atlantic Union. Everbody knows, beneath the brand brand new CECL accounting standard that went into impact on January first life time anticipated credit losings will now be determined making use of macroeconomic forecast presumptions and administration judgments applicable to, and through the anticipated lifetime of the mortgage portfolios.

Since our final regular upgrade in October the commercial perspective and profile faculties have already been constant to slightly improved and also the business now estimates that the allowance for credit losings will increase to about $95 million or even more than twice as much allowance book degree at the time of December 31st beneath the previous incurred loss methodology.

As formerly noted, the allowance enhance under CECL is mainly driven by the business’s obtained loan profile as well as the customer loan profile. We’ve finished a completely independent validation of our CECL model therefore we want to reveal the allowance that is final in our 10-K, as we been employed by through the entire governance procedure for the afternoon one recognition.

From the shareholder capital and stewardship administration viewpoint, we’re invested in handling our money resources prudently while the implementation of money for the enhance — the enhancement of long-lasting shareholder value continues to be certainly one of our greatest priorities.

An increase of $0.02 per share or approximately 9%, compared to the prior year’s quarterly dividend level as such during the fourth quarter of 2019, the company declared and paid a quarterly cash dividend of $0.25 per common share. The Board of Directors had previously authorized a share repurchase program to acquire as much as $150 million associated with business’s typical stock through June 30th, 2021 in available market deals or independently negotiated transactions. As of January seventeenth, we’ve repurchased 2.4 million stocks at a normal cost of $36.91 or $89.6 million as a whole. The sum total remaining shares that are authorized repurchase is around $60 million.

Therefore to close out, Atlantic Union delivered solid economic results in the quarter that is fourth in 2019, regardless of the headwinds associated with reduced interest environment as well as the business proceeded to create progress toward its strategic development priorities. Our company is revising our running monetary metric objectives to mirror the interest that is challenging environment, which we anticipate will continue in 2021, but we remain invested in attaining top tier financial performance in accordance with our peers.

Finally, take note that we remain focused on leveraging the Atlantic Union franchise to build sustainable growth that is profitable remain committed to building long-lasting value for the investors.

Along with that, we’ll switch it cash advance online straight right straight back over to Bill Cimino to open up it for concerns from our analyst community.

William P. CiminoSenior Vice President and Director of Investor Relations

Thanks, Rob and Carl, we are prepared for the very first caller.

Questions and responses:


Operator directions very first question originates from the type of Casey Whitman from Piper Sandler. The line has become available.

John C. AsburyPresident and Ceo

Hi, Casey, good morning.

Casey Orr WhitmanPiper Sandler — Analyst

Morning good. Hi, Good morning. Rob, in order to be clear regarding the updated targets that are financial simply outlined, exactly what are you presuming for further price cuts, if any?

Robert Michael GormanExecutive Vice President and Chief Financial Officer

Yes, on that front side, Casey everything we’re presuming is there isn’t any further price cuts because of the Fed in 2020 and 2021 where — nevertheless the bend continues to be consistent with where its today, a curve that is flat. With regards to the NIM forecast that people’re considering, when it comes to those targets we set, we have been thinking I will be stabilizing in the amounts you notice when you look at the 4th quarter for a core foundation, expect to be in about 3.35% to 3.40per cent range for a core foundation. Now in the event that Fed had been to cut that the implied curves suggest possibly within the last half for this 12 months, you might observe that range could drop to your 3.30% to 3.35per cent range moving forward.

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