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Atlantic Union tightens CECL estimate

Atlantic Union Bankshares Corp. tightened its previous estimate related to the potential impact of the current expected credit loss model.

On its 2019 fourth-quarter earnings conference call, CFO Robert Gorman said the company estimates an increase to $95 million in its allowance for credit losses from CECL implementation. Its previous disclosure was an increase to between $90 million and $100 million.

The increase is primarily driven by the acquired loan portfolio from its acquisition of Access National Corp. that closed Feb. 1, 2019, and the consumer loan portfolio, Gorman said.

The company will disclose its final Day 1 CECL impact in its Form 10-K filing, he said. As for the "Day 2" impact — how CECL will affect loan loss provisioning going forward — Gorman said the company's reserve level will decrease "a bit" throughout the year from the initial estimated $95 million.