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Atlantic Union Bankshares Reports Third Quarter Financial Results

Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $51.1 million and basic and diluted earnings per common share of $0.68 for the third quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $59.8 million and adjusted diluted operating earnings per common share(1) of $0.80 for the third quarter of 2023.

“Atlantic Union delivered strong operating results in the third quarter,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We were especially pleased with our customer deposit growth that more than funded loan growth during the quarter, negligible charge-offs, and the impact of our expense reduction actions taken earlier in the year. The proactive measures we have taken to manage this challenging environment are serving us well.”

“We believe that our model of a diversified, traditional, full-service bank that delivers the products and services that our customers want and need combined with local decision making, responsiveness and client service orientation positively sets us apart from other banks, both larger and smaller. Operating under the mantra of soundness, profitability and growth – in that order of priority – Atlantic Union remains committed to generating sustainable, profitable growth and building long term value for our shareholders.”

STRATEGIC ACTIONS

Merger with American National Bankshares Inc. (“American National”)

On July 25, 2023, the Company announced that it entered into a merger agreement to acquire American National. During the third quarter of 2023, the Company incurred pre-tax merger costs of approximately $2.0 million.

Cost Saving Initiatives

As previously disclosed, the Company initiated a series of strategic cost savings measures during the second quarter of 2023 that is expected to reduce the annual expense run rate by approximately $17 million. As a result of these measures, the Company incurred pre-tax expenses of $8.7 million in the third quarter of 2023 and $3.9 million in the second quarter of 2023, principally composed of severance charges related to headcount reductions, costs related to modifying certain third-party vendor contracts, and charges for exiting certain leases.

Sale-Leaseback Transaction

On September 20, 2023, Atlantic Union Bank (the “Bank”) executed a sale-leaseback transaction and sold 27 properties, which consisted of 25 branches and a drive thru and parking lot, each adjacent to a sold branch, to a single purchaser for an aggregate purchase price of $45.8 million. Concurrently, the Bank entered into absolute net lease agreements with the purchaser under which the Bank will lease each of the properties for an initial term of 17 years with specified renewal options. The sale-leaseback transaction resulted in a pre-tax gain of approximately $27.7 million during the third quarter of 2023, after transaction-related expenses.

Available for Sale (“AFS”) Securities Sale

Concurrent with the sale-leaseback transaction, also on September 20, 2023, the Company restructured a portion of its investment portfolio by selling low yielding AFS securities with a book value of $228.3 million, resulting in a pre-tax net loss of $27.7 million. The net proceeds from the securities sale transaction were reinvested into higher yielding AFS securities at the end of the third quarter of 2023.

NET INTEREST INCOME

For the third quarter of 2023, net interest income was $151.9 million, a decrease of $143,000 from $152.1 million in the second quarter of 2023. Net interest income (FTE)(1) was $155.7 million in the third quarter of 2023, a decrease of $65,000 from $155.8 million in the second quarter of 2023 due to higher deposit costs driven by increases in market interest rates, changes in the deposit mix as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances, partially offset by an increase in loan yields on variable rate loans due to increases in short-term interest rates during the quarter, as well as growth in average loans held for investment (“LHFI”). Our net interest margin decreased 10 basis points from the prior quarter to 3.27% at September 30, 2023, and our net interest margin (FTE)(1) decreased 10 basis points during the same period to 3.35%. Earning asset yields increased by 20 basis points to 5.39% in the third quarter of 2023 compared to the second quarter of 2023, primarily due to the impact of increases in market interest rates on loans and loan growth. Our cost of funds increased by 30 basis points to 2.04% at September 30, 2023 compared to the prior quarter, due primarily to higher deposit costs driven by higher rates and changes in the deposit mix as noted above.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $1.1 million for the third quarter of 2023. The impact of net accretion in the second and third quarters of 2023 are reflected in the following table (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended June 30, 2023

 

$

1,073

 

$

(7)

 

$

(213)

 

$

853

For the quarter ended September 30, 2023

 

 

1,300

 

 

(6)

 

 

(215)

 

 

1,079

ASSET QUALITY

Overview

At September 30, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.19% and was unchanged from the prior quarter and included nonaccrual loans of $28.6 million. Accruing past due loans as a percentage of total LHFI totaled 27 basis points at September 30, 2023, an increase of 11 basis points from June 30, 2023, and an increase of 6 basis points from September 30, 2022. The increase in past due loan levels from June 30, 2023 was primarily within the 30-59 days past due category and resulted primarily from increases in past due credit relationships within the commercial real estate and commercial and industrial portfolios. Net charge-offs were 0.01% of total average LHFI (annualized) for the third quarter of 2023, a decrease of 3 basis points from June 30, 2023, and a decrease of 1 basis point from September 30, 2022. The allowance for credit losses (“ACL”) totaled $140.9 million at September 30, 2023, a $4.7 million increase from the prior quarter.

Nonperforming Assets

At September 30, 2023, NPAs totaled $28.8 million, compared to $29.2 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2023

 

2023

 

2023

 

2022

 

2022

Nonaccrual loans

 

$

28,626

 

$

29,105

 

$

29,082

 

$

27,038

 

$

26,500

Foreclosed properties

 

 

149

 

 

50

 

 

29

 

 

76

 

 

2,087

Total nonperforming assets

 

$

28,775

 

$

29,155

 

$

29,111

 

$

27,114

 

$

28,587

The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2023

 

2023

 

2023

 

2022

 

2022

Beginning Balance

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

 

$

26,500

 

 

$

29,070

 

Net customer payments

 

 

(1,947

)

 

 

(5,950

)

 

 

(1,755

)

 

 

(1,805

)

 

 

(3,725

)

Additions

 

 

1,651

 

 

 

6,685

 

 

 

4,151

 

 

 

2,935

 

 

 

1,302

 

Charge-offs

 

 

(64

)

 

 

(712

)

 

 

(39

)

 

 

(461

)

 

 

(125

)

Loans returning to accruing status

 

 

(119

)

 

 

 

 

 

(313

)

 

 

(131

)

 

 

 

Transfers to foreclosed property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(22

)

Ending Balance

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

 

$

26,500

 

Past Due Loans

At September 30, 2023, past due loans still accruing interest totaled $40.6 million or 0.27% of total LHFI, compared to $24.1 million or 0.16% of total LHFI at June 30, 2023, and $29.0 million or 0.21% of total LHFI at September 30, 2022. The increase in past due loan levels from June 30, 2023 was primarily within the 30-59 days past due category and driven by increases in past due credit relationships within the commercial real estate and commercial and industrial portfolios. Of the total past due loans still accruing interest, $11.9 million or 0.08% of total LHFI were loans past due 90 days or more at September 30, 2023, compared to $10.1 million or 0.07% of total LHFI at June 30, 2023, and $7.4 million or 0.05% of total LHFI at September 30, 2022.

Allowance for Credit Losses

At September 30, 2023, the ACL was $140.9 million and included an allowance for loan and lease losses (“ALLL”) of $125.6 million and a reserve for unfunded commitments of $15.3 million. The ACL at September 30, 2023 increased $4.7 million from June 30, 2023 due to loan growth in the third quarter of 2023 and the impact of continued uncertainty in the economic outlook.

The ACL as a percentage of total LHFI was 0.92% at September 30, 2023, an increase of 2 basis points from June 30, 2023. The ALLL as a percentage of total LHFI was 0.82% at September 30, 2023, compared to 0.80% at June 30, 2023.

Net Charge-offs

Net charge-offs were $294,000 or 0.01% of total average LHFI on an annualized basis for the third quarter of 2023, compared to $1.6 million or 0.04% (annualized) for the second quarter of 2023, and $587,000 or 0.02% (annualized) for the third quarter of 2022.

Provision for Credit Losses

For the third quarter of 2023, the Company recorded a provision for credit losses of $5.0 million, compared to a provision for credit losses of $6.1 million in the prior quarter, and a provision for credit losses of $6.4 million in the third quarter of 2022.

NONINTEREST INCOME

Noninterest income increased $2.9 million to $27.1 million for the third quarter of 2023 from $24.2 million in the prior quarter, primarily driven by a $939,000 increase in other service charges, commissions and fees primarily due to a merchant services vendor contract signing bonus, a $714,000 increase in equity method investment income (included within other operating income), a $439,000 increase in service charges on deposits accounts, and a $379,000 increase in loan-related interest rate swap fees due to several new swap transactions. Noninterest income in the third quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities in the third quarter of 2023.

NONINTEREST EXPENSE

Noninterest expense increased $2.8 million to $108.5 million for the third quarter of 2023 from $105.7 million in the prior quarter, primarily driven by a $10.0 million increase in other expenses, which includes $8.7 million in expenses associated with strategic cost saving initiatives and $2.0 million in merger-related costs. Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.2 million in both the third quarter and second quarter of 2023), expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter and $3.9 million in the second quarter of 2023), and merger-related costs associated with the American National merger ($2.0 million in the third quarter of 2023), decreased $3.9 million to $95.7 million for the third quarter of 2023 from $99.5 million in the prior quarter. The decrease in adjusted operating noninterest expense(1) was primarily due to a $1.6 million decrease in salaries and benefits expense reflecting the impact of strategic cost saving initiatives, a $1.1 million decrease in professional services expense related to strategic projects in the prior quarter, a $643,000 decrease in technology and data processing expense, and a $598,000 decrease in marketing and advertising expense.

INCOME TAXES

The effective tax rate for the three months ended September 30, 2023 and 2022 was 17.6% and 17.0%, respectively, and the effective tax rate for the nine months ended September 30, 2023 and 2022 was 16.3% and 17.0%, respectively.

BALANCE SHEET

At September 30, 2023, total assets were $20.7 billion, an increase of $133.9 million or approximately 2.6% (annualized) from June 30, 2023, and an increase of $786.0 million or approximately 3.9% from September 30, 2022. Total assets increased from the prior quarter primarily due to a $216.7 million increase in LHFI (net of deferred fees and costs), partially offset by a $110.3 million decrease in investment securities due primarily to the decline in market value of the AFS securities portfolio due to the impact of market interest rates. Total assets increased from the prior year period primarily due to a $1.4 billion increase in LHFI (net of deferred fees and costs), partially offset by a $607.7 million decrease in investment securities due primarily to the sale of AFS securities in the first and third quarters of 2023.

At September 30, 2023, LHFI (net of deferred fees and costs) totaled $15.3 billion, an increase of $216.7 million or 5.7% (annualized) from $15.1 billion at June 30, 2023. Average LHFI (net of deferred fees and costs) totaled $15.1 billion at September 30, 2023, an increase of $393.5 million or 10.6% (annualized) from the prior quarter. At September 30, 2023, both LHFI (net of deferred fees and costs) and average LHFI (net of deferred fees and costs) increased $1.4 billion from September 30, 2022. LHFI (net of deferred fees and costs) increased from the prior quarter primarily due to increases in the multifamily real estate and other commercial portfolios and increased from the same period in the prior year primarily due to increases in the commercial and industrial and commercial real estate non-owner occupied portfolios.

At September 30, 2023, total investments were $3.0 billion, a decrease of $110.3 million from June 30, 2023 and a decrease of $607.7 million from September 30, 2022. AFS securities totaled $2.1 billion at September 30, 2023, $2.2 billion at June 30, 2023, and $2.7 billion at September 30, 2022. At September 30, 2023, total net unrealized losses on the AFS securities portfolio were $523.1 million, compared to $450.1 million at June 30, 2023 and $507.7 million at September 30, 2022. Held to maturity (“HTM”) securities are carried at cost and totaled $843.3 million at September 30, 2023, $849.6 million at June 30, 2023, and $841.3 million at September 30, 2022 and had net unrealized losses of $81.2 million at September 30, 2023, compared to $41.8 million at June 30, 2023 and $75.9 million at September 30, 2022.

At September 30, 2023, total deposits were $16.8 billion, an increase of $374.5 million or approximately 9.1% (annualized) from June 30, 2023. Average deposits at September 30, 2023 increased from the prior quarter by $515.5 million or 12.6% (annualized). Total deposits at September 30, 2023 increased $240.3 million or 1.5% from September 30, 2022, and quarterly average deposits at September 30, 2023 increased $307.4 million or 1.9% from the same period in the prior year. Total deposits increased from the prior quarter and the prior year period primarily due to increases in interest bearing customer deposits and brokered deposits, partially offset by decreases in demand deposits.

At September 30, 2023, total borrowings were $1.0 billion, a decrease of $299.6 million from June 30, 2023, and an increase of $351.1 million from September 30, 2022. Total borrowings decreased from the prior quarter primarily due to paydowns of short-term borrowings due to deposit growth and increased from the prior year period due to increased short-term borrowings used to fund loan growth.

The following table shows the Company’s capital ratios at the quarters ended:

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

 

2023

 

2023

 

2022

 

Common equity Tier 1 capital ratio (2)

 

9.94

%

9.86

%

9.96

%

Tier 1 capital ratio (2)

 

10.88

%

10.81

%

10.98

%

Total capital ratio (2)

 

13.70

%

13.64

%

13.80

%

Leverage ratio (Tier 1 capital to average assets) (2)

 

9.62

%

9.64

%

9.32

%

Common equity to total assets

 

10.72

%

10.96

%

10.60

%

Tangible common equity to tangible assets (1)

 

6.45

%

6.66

%

6.11

%

_____________________________

During the third quarter of 2023, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the second quarter of 2023 and the third quarter of 2022. During the third quarter of 2023, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the second quarter of 2023 and the third quarter of 2022.

_____________________________

(1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see the “Alternative Performance Measures (non-GAAP)” section of the Key Financial Results.

(2) All ratios at September 30, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of September 30, 2023. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2023 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Thursday, October 19, 2023 during which the Company’s management will review the Company’s financial results for the third quarter 2023 and provide an update on recent activities.

The listen-only webcast and the accompanying slides can be accessed at:

https://edge.media-server.com/mmc/p/xamg8swa.

For analysts who wish to participate in the conference call, please register at the following URL:

https://register.vevent.com/register/BI2b71d4244e9e49b393decce9c92d4054. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

A replay of the webcast, and the accompanying slides, will be available on the Company’s website for 90 days at: https://investors.atlanticunionbank.com/.

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the period ended September 30, 2023, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base, the impact of future economic conditions, the expected impact of our cost saving measures initiative in the second quarter of 2023, and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of or changes in:

  • market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs and our loan and securities portfolios;
  • inflation and its impacts on economic growth and customer and client behavior;
  • adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior;
  • the sufficiency of liquidity;
  • general economic and financial market conditions, in the United States generally and particularly in the markets in which we operate and which our loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
  • the failure to close our previously announced merger with American National when expected or at all because required regulatory, American National shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger;
  • the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National;
  • any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current rising interest rate environment;
  • the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all;
  • the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events;
  • the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger;
  • potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger;
  • the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger;
  • changes in the Company’s or American National’s share price before closing;
  • monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
  • the quality or composition of our loan or investment portfolios and changes therein;
  • demand for loan products and financial services in our market areas;
  • our ability to manage our growth or implement our growth strategy;
  • the effectiveness of expense reduction plans;
  • the introduction of new lines of business or new products and services;
  • our ability to recruit and retain key employees;
  • real estate values in our lending area;
  • changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements;
  • an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors;
  • our liquidity and capital positions;
  • concentrations of loans secured by real estate, particularly commercial real estate;
  • the effectiveness of our credit processes and management of our credit risk;
  • our ability to compete in the market for financial services and increased competition from fintech companies;
  • technological risks and developments, and cyber threats, attacks, or events;
  • operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;
  • the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for our loans or our other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on our liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of our business operations and on financial markets and economic growth;
  • the discontinuation of LIBOR and its impact on the financial markets, and our ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
  • performance by our counterparties or vendors;
  • deposit flows;
  • the availability of financing and the terms thereof;
  • the level of prepayments on loans and mortgage-backed securities;
  • legislative or regulatory changes and requirements;
  • actual or potential claims, damages, and fines related to litigation or government actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
  • the effects of changes in federal, state or local tax laws and regulations;
  • any event or development that would cause us to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
  • other factors, many of which are beyond our control.

Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10‑K for the year ended December 31, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and March 31, 2023, and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

247,159

 

$

230,247

 

$

171,156

 

$

694,952

 

$

458,367

 

Interest expense

 

 

95,218

 

 

78,163

 

 

20,441

 

 

237,483

 

 

37,954

 

Net interest income

 

 

151,941

 

 

152,084

 

 

150,715

 

 

457,469

 

 

420,413

 

Provision for credit losses

 

 

4,991

 

 

6,069

 

 

6,412

 

 

22,911

 

 

12,771

 

Net interest income after provision for credit losses

 

 

146,950

 

 

146,015

 

 

144,303

 

 

434,558

 

 

407,642

 

Noninterest income

 

 

27,094

 

 

24,197

 

 

25,584

 

 

60,918

 

 

94,023

 

Noninterest expenses

 

 

108,508

 

 

105,661

 

 

99,923

 

 

322,442

 

 

304,012

 

Income before income taxes

 

 

65,536

 

 

64,551

 

 

69,964

 

 

173,034

 

 

197,653

 

Income tax expense

 

 

11,519

 

 

9,310

 

 

11,894

 

 

28,123

 

 

33,667

 

Net income

 

 

54,017

 

 

55,241

 

 

58,070

 

 

144,911

 

 

163,986

 

Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

2,967

 

 

8,901

 

 

8,901

 

Net income available to common shareholders

 

$

51,050

 

$

52,274

 

$

55,103

 

$

136,010

 

$

155,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

 

$

250,903

 

$

233,913

 

$

174,998

 

$

706,150

 

$

469,122

 

Net interest income (FTE) (1)

 

 

155,685

 

 

155,750

 

 

154,557

 

 

468,667

 

 

431,168

 

Total revenue (FTE) (1)

 

 

182,779

 

 

179,947

 

 

180,141

 

 

529,585

 

 

525,191

 

Pre-tax pre-provision adjusted operating earnings (7)

 

 

81,086

 

 

74,553

 

 

76,376

 

 

228,837

 

 

206,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

 

$

0.68

 

$

0.70

 

$

0.74

 

$

1.81

 

$

2.07

 

Return on average assets (ROA)

 

 

1.04

%

 

1.10

%

 

1.15

%

 

0.95

%

 

1.10

%

Return on average equity (ROE)

 

 

8.76

%

 

9.00

%

 

9.45

%

 

7.93

%

 

8.72

%

Return on average tangible common equity (ROTCE) (2) (3)

 

 

15.71

%

 

16.11

%

 

17.21

%

 

14.22

%

 

15.69

%

Efficiency ratio

 

 

60.61

%

 

59.94

%

 

56.68

%

 

62.20

%

 

59.10

%

Efficiency ratio (FTE) (1)

 

 

59.37

%

 

58.72

%

 

55.47

%

 

60.89

%

 

57.89

%

Net interest margin

 

 

3.27

%

 

3.37

%

 

3.34

%

 

3.35

%

 

3.16

%

Net interest margin (FTE) (1)

 

 

3.35

%

 

3.45

%

 

3.43

%

 

3.43

%

 

3.24

%

Yields on earning assets (FTE) (1)

 

 

5.39

%

 

5.19

%

 

3.88

%

 

5.17

%

 

3.52

%

Cost of interest-bearing liabilities

 

 

2.80

%

 

2.42

%

 

0.68

%

 

2.42

%

 

0.43

%

Cost of deposits

 

 

1.97

%

 

1.61

%

 

0.37

%

 

1.63

%

 

0.21

%

Cost of funds

 

 

2.04

%

 

1.74

%

 

0.45

%

 

1.74

%

 

0.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

 

$

62,749

 

$

58,348

 

$

58,070

 

$

171,286

 

$

160,355

 

Adjusted operating earnings available to common shareholders

 

 

59,782

 

 

55,381

 

 

55,103

 

 

162,385

 

 

151,454

 

Adjusted operating earnings per common share, diluted

 

$

0.80

 

$

0.74

 

$

0.74

 

$

2.17

 

$

2.02

 

Adjusted operating ROA

 

 

1.21

%

 

1.16

%

 

1.15

%

 

1.12

%

 

1.08

%

Adjusted operating ROE

 

 

10.17

%

 

9.51

%

 

9.45

%

 

9.37

%

 

8.53

%

Adjusted operating ROTCE (2) (3)

 

 

18.31

%

 

17.03

%

 

17.21

%

 

16.88

%

 

15.34

%

Adjusted operating efficiency ratio (FTE) (1)(6)

 

 

52.36

%

 

55.30

%

 

54.09

%

 

54.55

%

 

56.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.68

 

$

0.70

 

$

0.74

 

$

1.81

 

$

2.07

 

Earnings per common share, diluted

 

 

0.68

 

 

0.70

 

 

0.74

 

 

1.81

 

 

2.07

 

Cash dividends paid per common share

 

 

0.30

 

 

0.30

 

 

0.30

 

 

0.90

 

 

0.86

 

Market value per share

 

 

28.78

 

 

25.95

 

 

30.38

 

 

28.78

 

 

30.38

 

Book value per common share

 

 

29.82

 

 

30.31

 

 

28.46

 

 

29.82

 

 

28.46

 

Tangible book value per common share (2)

 

 

17.12

 

 

17.58

 

 

15.61

 

 

17.12

 

 

15.61

 

Price to earnings ratio, diluted

 

 

10.65

 

 

9.28

 

 

10.37

 

 

11.86

 

 

10.99

 

Price to book value per common share ratio

 

 

0.97

 

 

0.86

 

 

1.07

 

 

0.97

 

 

1.07

 

Price to tangible book value per common share ratio (2)

 

 

1.68

 

 

1.48

 

 

1.95

 

 

1.68

 

 

1.95

 

Weighted average common shares outstanding, basic

 

 

74,999,128

 

 

74,995,450

 

 

74,703,699

 

 

74,942,851

 

 

75,029,000

 

Weighted average common shares outstanding, diluted

 

 

74,999,128

 

 

74,995,557

 

 

74,705,054

 

 

74,943,999

 

 

75,034,084

 

Common shares outstanding at end of period

 

 

74,997,132

 

 

74,998,075

 

 

74,703,774

 

 

74,997,132

 

 

74,703,774

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

 

9.94

%

 

9.86

%

 

9.96

%

 

9.94

%

 

9.96

%

Tier 1 capital ratio (5)

 

 

10.88

%

 

10.81

%

 

10.98

%

 

10.88

%

 

10.98

%

Total capital ratio (5)

 

 

13.70

%

 

13.64

%

 

13.80

%

 

13.70

%

 

13.80

%

Leverage ratio (Tier 1 capital to average assets) (5)

 

 

9.62

%

 

9.64

%

 

9.32

%

 

9.62

%

 

9.32

%

Common equity to total assets

 

 

10.72

%

 

10.96

%

 

10.60

%

 

10.72

%

 

10.60

%

Tangible common equity to tangible assets (2)

 

 

6.45

%

 

6.66

%

 

6.11

%

 

6.45

%

 

6.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,736,236

 

$

20,602,332

 

$

19,950,231

 

$

20,736,236

 

$

19,950,231

 

LHFI (net of deferred fees and costs)

 

 

15,283,620

 

 

15,066,930

 

 

13,918,720

 

 

15,283,620

 

 

13,918,720

 

Securities

 

 

3,032,982

 

 

3,143,235

 

 

3,640,722

 

 

3,032,982

 

 

3,640,722

 

Earning Assets

 

 

18,491,561

 

 

18,452,007

 

 

17,790,324

 

 

18,491,561

 

 

17,790,324

 

Goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Amortizable intangibles, net

 

 

21,277

 

 

23,469

 

 

29,142

 

 

21,277

 

 

29,142

 

Deposits

 

 

16,786,505

 

 

16,411,987

 

 

16,546,216

 

 

16,786,505

 

 

16,546,216

 

Borrowings

 

 

1,020,669

 

 

1,320,301

 

 

669,558

 

 

1,020,669

 

 

669,558

 

Stockholders' equity

 

 

2,388,801

 

 

2,424,470

 

 

2,281,150

 

 

2,388,801

 

 

2,281,150

 

Tangible common equity (2)

 

 

1,275,956

 

 

1,309,433

 

 

1,160,440

 

 

1,275,956

 

 

1,160,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LHFI, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

1,132,940

 

$

1,231,720

 

$

1,068,201

 

$

1,132,940

 

$

1,068,201

 

Commercial real estate - owner occupied

 

 

1,975,281

 

 

1,952,189

 

 

1,953,872

 

 

1,975,281

 

 

1,953,872

 

Commercial real estate - non-owner occupied

 

 

4,148,218

 

 

4,113,318

 

 

3,900,325

 

 

4,148,218

 

 

3,900,325

 

Multifamily real estate

 

 

947,153

 

 

788,895

 

 

774,970

 

 

947,153

 

 

774,970

 

Commercial & Industrial

 

 

3,432,319

 

 

3,373,148

 

 

2,709,047

 

 

3,432,319

 

 

2,709,047

 

Residential 1-4 Family - Commercial

 

 

517,034

 

 

518,317

 

 

542,612

 

 

517,034

 

 

542,612

 

Residential 1-4 Family - Consumer

 

 

1,057,294

 

 

1,017,698

 

 

891,353

 

 

1,057,294

 

 

891,353

 

Residential 1-4 Family - Revolving

 

 

599,282

 

 

600,339

 

 

588,452

 

 

599,282

 

 

588,452

 

Auto

 

 

534,361

 

 

585,756

 

 

561,277

 

 

534,361

 

 

561,277

 

Consumer

 

 

126,151

 

 

134,709

 

 

172,776

 

 

126,151

 

 

172,776

 

Other Commercial

 

 

813,587

 

 

750,841

 

 

755,835

 

 

813,587

 

 

755,835

 

Total LHFI

 

$

15,283,620

 

$

15,066,930

 

$

13,918,720

 

$

15,283,620

 

$

13,918,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

 

$

5,055,464

 

$

4,824,192

 

$

4,354,351

 

$

5,055,464

 

$

4,354,351

 

Money market accounts

 

 

3,472,953

 

 

3,413,936

 

 

3,962,470

 

 

3,472,953

 

 

3,962,470

 

Savings accounts

 

 

950,363

 

 

986,081

 

 

1,173,566

 

 

950,363

 

 

1,173,566

 

Customer time deposits of $250,000 and over

 

 

634,950

 

 

578,739

 

 

391,332

 

 

634,950

 

 

391,332

 

Other customer time deposits

 

 

2,011,106

 

 

1,813,031

 

 

1,352,440

 

 

2,011,106

 

 

1,352,440

 

Time deposits

 

 

2,646,056

 

 

2,391,770

 

 

1,743,772

 

 

2,646,056

 

 

1,743,772

 

Total interest-bearing customer deposits

 

 

12,124,836

 

 

11,615,979

 

 

11,234,159

 

 

12,124,836

 

 

11,234,159

 

Brokered deposits

 

 

516,720

 

 

485,702

 

 

21,119

 

 

516,720

 

 

21,119

 

Total interest-bearing deposits

 

$

12,641,556

 

$

12,101,681

 

$

11,255,278

 

$

12,641,556

 

$

11,255,278

 

Demand deposits

 

 

4,144,949

 

 

4,310,306

 

 

5,290,938

 

 

4,144,949

 

 

5,290,938

 

Total deposits

 

$

16,786,505

 

$

16,411,987

 

$

16,546,216

 

$

16,786,505

 

$

16,546,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,596,189

 

$

20,209,687

 

$

19,980,500

 

$

20,397,518

 

$

19,873,644

 

LHFI (net of deferred fees and costs)

 

 

15,139,761

 

 

14,746,218

 

 

13,733,447

 

 

14,799,520

 

 

13,521,507

 

Loans held for sale

 

 

10,649

 

 

14,413

 

 

15,063

 

 

10,330

 

 

16,779

 

Securities

 

 

3,101,658

 

 

3,176,662

 

 

3,818,607

 

 

3,247,287

 

 

3,981,308

 

Earning assets

 

 

18,462,505

 

 

18,091,809

 

 

17,879,222

 

 

18,264,957

 

 

17,803,550

 

Deposits

 

 

16,795,611

 

 

16,280,154

 

 

16,488,224

 

 

16,499,045

 

 

16,397,790

 

Time deposits

 

 

2,914,004

 

 

2,500,966

 

 

1,745,224

 

 

2,571,114

 

 

1,726,341

 

Interest-bearing deposits

 

 

12,576,776

 

 

11,903,004

 

 

11,163,945

 

 

12,071,006

 

 

11,091,115

 

Borrowings

 

 

905,170

 

 

1,071,171

 

 

703,272

 

 

1,032,067

 

 

660,995

 

Interest-bearing liabilities

 

 

13,481,946

 

 

12,974,175

 

 

11,867,217

 

 

13,103,073

 

 

11,752,110

 

Stockholders' equity

 

 

2,446,902

 

 

2,460,741

 

 

2,436,999

 

 

2,443,833

 

 

2,513,522

 

Tangible common equity (2)

 

 

1,332,993

 

 

1,345,426

 

 

1,315,085

 

 

1,328,385

 

 

1,378,240

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Allowance for loan and lease losses (ALLL)

 

$

120,683

 

 

$

116,512

 

$

104,184

 

$

110,768

 

$

99,787

 

Add: Recoveries

 

 

1,335

 

 

 

1,035

 

 

1,214

 

 

3,537

 

 

3,745

 

Less: Charge-offs

 

 

1,629

 

 

 

2,602

 

 

1,801

 

 

9,957

 

 

5,267

 

Add: Provision for loan losses

 

 

5,238

 

 

 

5,738

 

 

4,412

 

 

21,279

 

 

9,744

 

Ending balance, ALLL

 

$

125,627

 

 

$

120,683

 

$

108,009

 

$

125,627

 

$

108,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

 

$

15,548

 

 

$

15,199

 

$

9,000

 

$

13,675

 

$

8,000

 

Add: Provision for unfunded commitments

 

 

(246

)

 

 

349

 

 

2,000

 

 

1,627

 

 

3,000

 

Ending balance, RUC

 

$

15,302

 

 

$

15,548

 

$

11,000

 

$

15,302

 

$

11,000

 

Total ACL

 

$

140,929

 

 

$

136,231

 

$

119,009

 

$

140,929

 

$

119,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL / total LHFI

 

 

0.92

 

%

 

0.90

%

 

0.86

%

 

0.92

%

 

0.86

%

ALLL / total LHFI

 

 

0.82

 

%

 

0.80

%

 

0.78

%

 

0.82

%

 

0.78

%

Net charge-offs / total average LHFI (annualized)

 

 

0.01

 

%

 

0.04

%

 

0.02

%

 

0.06

%

 

0.02

%

Provision for loan losses/ total average LHFI (annualized)

 

 

0.14

 

%

 

0.16

%

 

0.13

%

 

0.19

%

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

355

 

 

$

284

 

$

421

 

$

355

 

$

421

 

Commercial real estate - owner occupied

 

 

3,882

 

 

 

3,978

 

 

4,883

 

 

3,882

 

 

4,883

 

Commercial real estate - non-owner occupied

 

 

5,999

 

 

 

6,473

 

 

1,923

 

 

5,999

 

 

1,923

 

Commercial & Industrial

 

 

2,256

 

 

 

2,738

 

 

2,289

 

 

2,256

 

 

2,289

 

Residential 1-4 Family - Commercial

 

 

1,833

 

 

 

1,844

 

 

1,962

 

 

1,833

 

 

1,962

 

Residential 1-4 Family - Consumer

 

 

10,368

 

 

 

10,033

 

 

11,121

 

 

10,368

 

 

11,121

 

Residential 1-4 Family - Revolving

 

 

3,572

 

 

 

3,461

 

 

3,583

 

 

3,572

 

 

3,583

 

Auto

 

 

361

 

 

 

291

 

 

318

 

 

361

 

 

318

 

Consumer

 

 

 

 

 

3

 

 

 

 

 

 

 

Nonaccrual loans

 

$

28,626

 

 

$

29,105

 

$

26,500

 

$

28,626

 

$

26,500

 

Foreclosed property

 

 

149

 

 

 

50

 

 

2,087

 

 

149

 

 

2,087

 

Total nonperforming assets (NPAs)

 

$

28,775

 

 

$

29,155

 

$

28,587

 

$

28,775

 

$

28,587

 

Construction and land development

 

$

25

 

 

$

24

 

$

115

 

$

25

 

$

115

 

Commercial real estate - owner occupied

 

 

2,395

 

 

 

2,463

 

 

3,517

 

 

2,395

 

 

3,517

 

Commercial real estate - non-owner occupied

 

 

2,835

 

 

 

2,763

 

 

621

 

 

2,835

 

 

621

 

Commercial & Industrial

 

 

792

 

 

 

810

 

 

526

 

 

792

 

 

526

 

Residential 1-4 Family - Commercial

 

 

817

 

 

 

693

 

 

308

 

 

817

 

 

308

 

Residential 1-4 Family - Consumer

 

 

3,632

 

 

 

1,716

 

 

680

 

 

3,632

 

 

680

 

Residential 1-4 Family - Revolving

 

 

1,034

 

 

 

1,259

 

 

1,255

 

 

1,034

 

 

1,255

 

Auto

 

 

229

 

 

 

243

 

 

148

 

 

229

 

 

148

 

Consumer

 

 

97

 

 

 

74

 

 

86

 

 

97

 

 

86

 

Other Commercial

 

 

15

 

 

 

66

 

 

95

 

 

15

 

 

95

 

LHFI ≥ 90 days and still accruing

 

$

11,871

 

 

$

10,111

 

$

7,351

 

$

11,871

 

$

7,351

 

Total NPAs and LHFI ≥ 90 days

 

$

40,646

 

 

$

39,266

 

$

35,938

 

$

40,646

 

$

35,938

 

NPAs / total LHFI

 

 

0.19

 

%

 

0.19

%

 

0.21

%

 

0.19

%

 

0.21

%

NPAs / total assets

 

 

0.14

 

%

 

0.14

%

 

0.14

%

 

0.14

%

 

0.14

%

ALLL / nonaccrual loans

 

 

438.86

 

%

 

414.65

%

 

407.58

%

 

438.86

%

 

407.58

%

ALLL/ nonperforming assets

 

 

436.58

 

%

 

413.94

%

 

377.83

%

 

436.58

%

 

377.83

%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Past Due Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

 

$

295

 

$

120

 

$

 

$

120

 

Commercial real estate - owner occupied

 

 

3,501

 

 

602

 

 

7,337

 

 

3,501

 

 

7,337

 

Commercial real estate - non-owner occupied

 

 

4,573

 

 

 

 

 

 

4,573

 

 

 

Commercial & Industrial

 

 

3,049

 

 

254

 

 

796

 

 

3,049

 

 

796

 

Residential 1-4 Family - Commercial

 

 

744

 

 

1,076

 

 

1,410

 

 

744

 

 

1,410

 

Residential 1-4 Family - Consumer

 

 

1,000

 

 

1,504

 

 

1,123

 

 

1,000

 

 

1,123

 

Residential 1-4 Family - Revolving

 

 

2,326

 

 

1,729

 

 

1,115

 

 

2,326

 

 

1,115

 

Auto

 

 

2,703

 

 

2,877

 

 

1,876

 

 

2,703

 

 

1,876

 

Consumer

 

 

517

 

 

334

 

 

409

 

 

517

 

 

409

 

Other Commercial

 

 

3,545

 

 

23

 

 

 

 

3,545

 

 

 

LHFI 30-59 days past due

 

$

21,958

 

$

8,694

 

$

14,186

 

$

21,958

 

$

14,186

 

Construction and land development

 

$

386

 

$

 

$

107

 

$

386

 

$

107

 

Commercial real estate - owner occupied

 

 

1,902

 

 

10

 

 

763

 

 

1,902

 

 

763

 

Commercial real estate - non-owner occupied

 

 

797

 

 

 

 

457

 

 

797

 

 

457

 

Multifamily real estate

 

 

150

 

 

 

 

 

 

150

 

 

 

Commercial & Industrial

 

 

576

 

 

400

 

 

3,128

 

 

576

 

 

3,128

 

Residential 1-4 Family - Commercial

 

 

67

 

 

189

 

 

97

 

 

67

 

 

97

 

Residential 1-4 Family - Consumer

 

 

1,775

 

 

2,813

 

 

1,449

 

 

1,775

 

 

1,449

 

Residential 1-4 Family - Revolving

 

 

602

 

 

1,114

 

 

1,081

 

 

602

 

 

1,081

 

Auto

 

 

339

 

 

564

 

 

257

 

 

339

 

 

257

 

Consumer

 

 

164

 

 

214

 

 

101

 

 

164

 

 

101

 

LHFI 60-89 days past due

 

$

6,758

 

$

5,304

 

$

7,440

 

$

6,758

 

$

7,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

 

$

40,587

 

$

24,109

 

$

28,977

 

$

40,587

 

$

28,977

 

Past Due and still accruing / total LHFI

 

 

0.27

%

 

0.16

%

 

0.21

%

 

0.27

%

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

151,941

 

$

152,084

 

$

150,715

 

$

457,469

 

$

420,413

 

FTE adjustment

 

 

3,744

 

 

3,666

 

 

3,842

 

 

11,198

 

 

10,755

 

Net interest income (FTE) (non-GAAP)

 

$

155,685

 

$

155,750

 

$

154,557

 

$

468,667

 

$

431,168

 

Noninterest income (GAAP)

 

 

27,094

 

 

24,197

 

 

25,584

 

 

60,918

 

 

94,023

 

Total revenue (FTE) (non-GAAP)

 

$

182,779

 

$

179,947

 

$

180,141

 

$

529,585

 

$

525,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

18,462,505

 

$

18,091,809

 

$

17,879,222

 

$

18,264,957

 

$

17,803,550

 

Net interest margin

 

 

3.27

%

 

3.37

%

 

3.34

%

 

3.35

%

 

3.16

%

Net interest margin (FTE)

 

 

3.35

%

 

3.45

%

 

3.43

%

 

3.43

%

 

3.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

 

$

20,736,236

 

$

20,602,332

 

$

19,950,231

 

$

20,736,236

 

$

19,950,231

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

21,277

 

 

23,469

 

 

29,142

 

 

21,277

 

 

29,142

 

Ending tangible assets (non-GAAP)

 

$

19,789,748

 

$

19,653,652

 

$

18,995,878

 

$

19,789,748

 

$

18,995,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

 

$

2,388,801

 

$

2,424,470

 

$

2,281,150

 

$

2,388,801

 

$

2,281,150

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

21,277

 

 

23,469

 

 

29,142

 

 

21,277

 

 

29,142

 

Less: Perpetual preferred stock

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

 

$

1,275,956

 

$

1,309,433

 

$

1,160,440

 

$

1,275,956

 

$

1,160,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,446,902

 

$

2,460,741

 

$

2,436,999

 

$

2,443,833

 

$

2,513,522

 

Less: Average goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

932,035

 

Less: Average amortizable intangibles

 

 

22,342

 

 

23,748

 

 

30,347

 

 

23,881

 

 

36,891

 

Less: Average perpetual preferred stock

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

 

$

1,332,993

 

$

1,345,426

 

$

1,315,085

 

$

1,328,385

 

$

1,378,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

 

$

51,050

 

$

52,274

 

$

55,103

 

$

136,010

 

$

155,085

 

Plus: Amortization of intangibles, tax effected

 

 

1,732

 

 

1,751

 

 

1,959

 

 

5,283

 

 

6,663

 

Net income available to common shareholders before amortization of intangibles (non-GAAP)

 

$

52,782

 

$

54,025

 

$

57,062

 

$

141,293

 

$

161,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

 

15.71

%

 

16.11

%

 

17.21

%

 

14.22

%

 

15.69

%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

54,017

 

 

$

55,241

 

$

58,070

 

$

144,911

 

 

$

163,986

 

 

Plus: Strategic cost saving initiatives, net of tax

 

 

6,851

 

 

 

3,109

 

 

 

 

9,959

 

 

 

 

 

Plus: Merger-related costs, net of tax

 

 

1,965

 

 

 

 

 

 

 

1,965

 

 

 

 

 

Plus: Legal reserve, net of tax

 

 

 

 

 

 

 

 

 

3,950

 

 

 

 

 

Plus: Strategic branch closing and facility consolidation costs, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

4,351

 

 

Less: (Loss) gain on sale of securities, net of tax

 

 

(21,799

)

 

 

2

 

 

 

 

(32,384

)

 

 

(2

)

 

Less: Gain on sale-leaseback transaction, net of tax

 

 

21,883

 

 

 

 

 

 

 

21,883

 

 

 

 

 

Less: Gain on sale of DHFB, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

7,984

 

 

Adjusted operating earnings (non-GAAP)

 

 

62,749

 

 

 

58,348

 

 

58,070

 

 

171,286

 

 

 

160,355

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

 

2,967

 

 

2,967

 

 

8,901

 

 

 

8,901

 

 

Adjusted operating earnings available to common shareholders (non-GAAP)

 

$

59,782

 

 

$

55,381

 

$

55,103

 

$

162,385

 

 

$

151,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Efficiency Ratio (1)(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

108,508

 

 

$

105,661

 

$

99,923

 

$

322,442

 

 

$

304,012

 

 

Less: Amortization of intangible assets

 

 

2,193

 

 

 

2,216

 

 

2,480

 

 

6,687

 

 

 

8,434

 

 

Less: Strategic cost saving initiatives

 

 

8,672

 

 

 

3,935

 

 

 

 

12,607

 

 

 

 

 

Less: Merger-related costs

 

 

1,993

 

 

 

 

 

 

 

1,993

 

 

 

 

 

Less: Legal reserve

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

Less: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Adjusted operating noninterest expense (non-GAAP)

 

$

95,650

 

 

$

99,510

 

$

97,443

 

$

296,155

 

 

$

290,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

27,094

 

 

$

24,197

 

$

25,584

 

$

60,918

 

 

$

94,023

 

 

Less: (Loss) gain on sale of securities

 

 

(27,594

)

 

 

2

 

 

 

 

(40,992

)

 

 

(2

)

 

Less: Gain on sale-leaseback transaction

 

 

27,700

 

 

 

 

 

 

 

27,700

 

 

 

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

 

 

9,082

 

 

Adjusted operating noninterest income (non-GAAP)

 

$

26,988

 

 

$

24,195

 

$

25,584

 

$

74,210

 

 

$

84,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (non-GAAP) (1)

 

$

155,685

 

 

$

155,750

 

$

154,557

 

$

468,667

 

 

$

431,168

 

 

Adjusted operating noninterest income (non-GAAP)

 

 

26,988

 

 

 

24,195

 

 

25,584

 

 

74,210

 

 

 

84,943

 

 

Total adjusted revenue (FTE) (non-GAAP) (1)

 

$

182,673

 

 

$

179,945

 

$

180,141

 

$

542,877

 

 

$

516,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

60.61

 

%

 

59.94

%

 

56.68

%

 

62.20

 

%

 

59.10

 

%

Efficiency ratio (FTE) (1)

 

 

59.37

 

%

 

58.72

%

 

55.47

%

 

60.89

 

%

 

57.89

 

%

Adjusted operating efficiency ratio (FTE) (1)(6)

 

 

52.36

 

%

 

55.30

%

 

54.09

%

 

54.55

 

%

 

56.20

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

 

$

62,749

 

 

$

58,348

 

$

58,070

 

$

171,286

 

 

$

160,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

20,596,189

 

 

$

20,209,687

 

$

19,980,500

 

$

20,397,518

 

 

$

19,873,644

 

 

Return on average assets (ROA) (GAAP)

 

 

1.04

 

%

 

1.10

%

 

1.15

%

 

0.95

 

%

 

1.10

 

%

Adjusted operating return on average assets (ROA) (non-GAAP)

 

 

1.21

 

%

 

1.16

%

 

1.15

%

 

1.12

 

%

 

1.08

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,446,902

 

 

$

2,460,741

 

$

2,436,999

 

$

2,443,833

 

 

$

2,513,522

 

 

Return on average equity (ROE) (GAAP)

 

 

8.76

 

%

 

9.00

%

 

9.45

%

 

7.93

 

%

 

8.72

 

%

Adjusted operating return on average equity (ROE) (non-GAAP)

 

 

10.17

 

%

 

9.51

%

 

9.45

%

 

9.37

 

%

 

8.53

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings available to common shareholders (non-GAAP)

 

$

59,782

 

 

$

55,381

 

$

55,103

 

$

162,385

 

 

$

151,454

 

 

Plus: Amortization of intangibles, tax effected

 

 

1,732

 

 

 

1,751

 

 

1,959

 

 

5,283

 

 

 

6,663

 

 

Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)

 

$

61,514

 

 

$

57,132

 

$

57,062

 

$

167,668

 

 

$

158,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

 

$

1,332,993

 

 

$

1,345,426

 

$

1,315,085

 

$

1,328,385

 

 

$

1,378,240

 

 

Adjusted operating return on average tangible common equity (non-GAAP)

 

 

18.31

 

%

 

17.03

%

 

17.21

%

 

16.88

 

%

 

15.34

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision adjusted operating earnings (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

54,017

 

 

$

55,241

 

$

58,070

 

$

144,911

 

 

$

163,986

 

 

Plus: Provision for credit losses

 

 

4,991

 

 

 

6,069

 

 

6,412

 

 

22,911

 

 

 

12,771

 

 

Plus: Income tax expense

 

 

11,519

 

 

 

9,310

 

 

11,894

 

 

28,123

 

 

 

33,667

 

 

Plus: Strategic cost saving initiatives

 

 

8,672

 

 

 

3,935

 

 

 

 

12,607

 

 

 

 

 

Plus: Merger-related costs

 

 

1,993

 

 

 

 

 

 

 

1,993

 

 

 

 

 

Plus: Legal reserve

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

Plus: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Less: (Loss) gain on sale of securities

 

 

(27,594

)

 

 

2

 

 

 

 

(40,992

)

 

 

(2

)

 

Less: Gain on sale-leaseback transaction

 

 

27,700

 

 

 

 

 

 

 

27,700

 

 

 

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

 

 

9,082

 

 

Pre-tax pre-provision adjusted operating earnings (non-GAAP)

 

$

81,086

 

 

$

74,553

 

$

76,376

 

$

228,837

 

 

$

206,852

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

 

2,967

 

 

2,967

 

 

8,901

 

 

 

8,901

 

 

Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP)

 

$

78,119

 

 

$

71,586

 

$

73,409

 

$

219,936

 

 

$

197,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

74,999,128

 

 

 

74,995,557

 

 

74,705,054

 

 

74,943,999

 

 

 

75,034,084

 

 

Pre-tax pre-provision earnings per common share, diluted

 

$

1.04

 

 

$

0.95

 

$

0.98

 

$

2.93

 

 

$

2.64

 

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

As of & For Nine Months Ended

 

 

 

09/30/23

 

06/30/23

 

09/30/22

 

09/30/23

 

09/30/22

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinance Volume

 

$

2,239

 

$

4,076

 

$

5,637

 

$

9,767

 

$

53,753

 

Purchase Volume

 

 

35,815

 

 

32,168

 

 

66,360

 

 

100,175

 

 

209,206

 

Total Mortgage loan originations held for sale

 

$

38,054

 

$

36,244

 

$

71,997

 

$

109,942

 

$

262,959

 

% of originations held for sale that are refinances

 

 

5.9

%

 

11.2

%

 

7.8

%

 

8.9

%

 

20.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under management

 

$

4,675,523

 

$

4,774,501

 

$

4,065,059

 

$

4,675,523

 

$

4,065,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period full-time employees

 

 

1,788

 

 

1,878

 

 

1,890

 

 

1,788

 

 

1,890

 

Number of full-service branches

 

 

109

 

 

109

 

 

114

 

 

109

 

 

114

 

Number of automatic transaction machines ("ATMs")

 

 

123

 

 

123

 

 

131

 

 

123

 

 

131

 

(1)

These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.

(2)

These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies.

(3)

These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and is useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.

(4)

These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations.

(5)

All ratios at September 30, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed.

(6)

The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, strategic cost saving initiatives, merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closing and related facility consolidation costs, (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the organization’s operations.

(7)

These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, strategic cost saving initiatives, merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closure initiatives and related facility consolidation costs, (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

 

2023

 

2022

 

2022

ASSETS

 

(unaudited)

 

 

(audited)

 

 

(unaudited)

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash and due from banks

$

233,526

 

 

$

216,384

 

 

$

177,969

 

Interest-bearing deposits in other banks

 

159,718

 

 

 

102,107

 

 

 

211,785

 

Federal funds sold

 

5,701

 

 

 

1,457

 

 

 

1,188

 

Total cash and cash equivalents

 

398,945

 

 

 

319,948

 

 

 

390,942

 

Securities available for sale, at fair value

 

2,084,928

 

 

 

2,741,816

 

 

 

2,717,323

 

Securities held to maturity, at carrying value

 

843,269

 

 

 

847,732

 

 

 

841,349

 

Restricted stock, at cost

 

104,785

 

 

 

120,213

 

 

 

82,050

 

Loans held for sale

 

6,608

 

 

 

3,936

 

 

 

12,889

 

Loans held for investment, net of deferred fees and costs

 

15,283,620

 

 

 

14,449,142

 

 

 

13,918,720

 

Less: allowance for loan and lease losses

 

125,627

 

 

 

110,768

 

 

 

108,009

 

Total loans held for investment, net

 

15,157,993

 

 

 

14,338,374

 

 

 

13,810,711

 

Premises and equipment, net

 

94,510

 

 

 

118,243

 

 

 

126,374

 

Goodwill

 

925,211

 

 

 

925,211

 

 

 

925,211

 

Amortizable intangibles, net

 

21,277

 

 

 

26,761

 

 

 

29,142

 

Bank owned life insurance

 

449,452

 

 

 

440,656

 

 

 

437,988

 

Other assets

 

649,258

 

 

 

578,248

 

 

 

576,252

 

Total assets

$

20,736,236

 

 

$

20,461,138

 

 

$

19,950,231

 

LIABILITIES

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

4,144,949

 

 

$

4,883,239

 

 

$

5,290,938

 

Interest-bearing deposits

 

12,641,556

 

 

 

11,048,438

 

 

 

11,255,278

 

Total deposits

 

16,786,505

 

 

 

15,931,677

 

 

 

16,546,216

 

Securities sold under agreements to repurchase

 

134,936

 

 

 

142,837

 

 

 

146,182

 

Other short-term borrowings

 

495,000

 

 

 

1,176,000

 

 

 

133,800

 

Long-term borrowings

 

390,733

 

 

 

389,863

 

 

 

389,576

 

Other liabilities

 

540,261

 

 

 

448,024

 

 

 

453,307

 

Total liabilities

 

18,347,435

 

 

 

18,088,401

 

 

 

17,669,081

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

Common stock, $1.33 par value

 

99,120

 

 

 

98,873

 

 

 

98,845

 

Additional paid-in capital

 

1,779,281

 

 

 

1,772,440

 

 

 

1,769,858

 

Retained earnings

 

988,133

 

 

 

919,537

 

 

 

874,393

 

Accumulated other comprehensive loss

 

(477,906

)

 

 

(418,286

)

 

 

(462,119

)

Total stockholders' equity

 

2,388,801

 

 

 

2,372,737

 

 

 

2,281,150

 

Total liabilities and stockholders' equity

$

20,736,236

 

 

$

20,461,138

 

 

$

19,950,231

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

74,997,132

 

 

 

74,712,622

 

 

 

74,703,774

 

Common shares authorized

 

200,000,000

 

 

 

200,000,000

 

 

 

200,000,000

 

Preferred shares outstanding

 

17,250

 

 

 

17,250

 

 

 

17,250

 

Preferred shares authorized

 

500,000

 

 

 

500,000

 

 

 

500,000

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2023

 

2023

 

2022

 

2023

 

2022

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

221,380

 

 

$

205,172

 

$

144,673

 

$

616,544

 

 

$

382,139

 

Interest on deposits in other banks

 

1,309

 

 

 

1,014

 

 

941

 

 

3,815

 

 

 

1,229

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

16,055

 

 

 

15,565

 

 

14,750

 

 

48,373

 

 

 

43,110

 

Nontaxable

 

8,415

 

 

 

8,496

 

 

10,792

 

 

26,220

 

 

 

31,889

 

Total interest and dividend income

 

247,159

 

 

 

230,247

 

 

171,156

 

 

694,952

 

 

 

458,367

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

83,590

 

 

 

65,267

 

 

15,386

 

 

200,690

 

 

 

25,966

 

Interest on short-term borrowings

 

6,499

 

 

 

8,044

 

 

1,229

 

 

22,106

 

 

 

1,805

 

Interest on long-term borrowings

 

5,129

 

 

 

4,852

 

 

3,826

 

 

14,687

 

 

 

10,183

 

Total interest expense

 

95,218

 

 

 

78,163

 

 

20,441

 

 

237,483

 

 

 

37,954

 

Net interest income

 

151,941

 

 

 

152,084

 

 

150,715

 

 

457,469

 

 

 

420,413

 

Provision for credit losses

 

4,991

 

 

 

6,069

 

 

6,412

 

 

22,911

 

 

 

12,771

 

Net interest income after provision for credit losses

 

146,950

 

 

 

146,015

 

 

144,303

 

 

434,558

 

 

 

407,642

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

8,557

 

 

 

8,118

 

 

6,784

 

 

24,577

 

 

 

22,421

 

Other service charges, commissions and fees

 

2,632

 

 

 

1,693

 

 

1,770

 

 

6,071

 

 

 

5,134

 

Interchange fees

 

2,314

 

 

 

2,459

 

 

2,461

 

 

7,098

 

 

 

6,539

 

Fiduciary and asset management fees

 

4,549

 

 

 

4,359

 

 

4,134

 

 

13,169

 

 

 

18,329

 

Mortgage banking income

 

666

 

 

 

449

 

 

1,390

 

 

1,969

 

 

 

6,707

 

(Loss) gain on sale of securities

 

(27,594

)

 

 

2

 

 

 

 

(40,992

)

 

 

(2

)

Bank owned life insurance income

 

2,973

 

 

 

2,870

 

 

3,445

 

 

8,671

 

 

 

8,858

 

Loan-related interest rate swap fees

 

2,695

 

 

 

2,316

 

 

2,050

 

 

6,450

 

 

 

8,510

 

Other operating income

 

30,302

 

 

 

1,931

 

 

3,550

 

 

33,905

 

 

 

17,527

 

Total noninterest income

 

27,094

 

 

 

24,197

 

 

25,584

 

 

60,918

 

 

 

94,023

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

57,449

 

 

 

62,019

 

 

56,600

 

 

179,996

 

 

 

170,203

 

Occupancy expenses

 

6,053

 

 

 

6,094

 

 

6,408

 

 

18,503

 

 

 

19,685

 

Furniture and equipment expenses

 

3,449

 

 

 

3,565

 

 

3,673

 

 

10,765

 

 

 

10,860

 

Technology and data processing

 

7,923

 

 

 

8,566

 

 

8,273

 

 

24,631

 

 

 

23,930

 

Professional services

 

3,291

 

 

 

4,433

 

 

3,504

 

 

11,138

 

 

 

12,274

 

Marketing and advertising expense

 

2,219

 

 

 

2,817

 

 

2,343

 

 

7,387

 

 

 

7,008

 

FDIC assessment premiums and other insurance

 

4,258

 

 

 

4,074

 

 

3,094

 

 

12,231

 

 

 

8,344

 

Franchise and other taxes

 

4,510

 

 

 

4,499

 

 

4,507

 

 

13,508

 

 

 

13,506

 

Loan-related expenses

 

1,388

 

 

 

1,619

 

 

1,575

 

 

4,560

 

 

 

5,218

 

Amortization of intangible assets

 

2,193

 

 

 

2,216

 

 

2,480

 

 

6,687

 

 

 

8,434

 

Other expenses

 

15,775

 

 

 

5,759

 

 

7,466

 

 

33,036

 

 

 

24,550

 

Total noninterest expenses

 

108,508

 

 

 

105,661

 

 

99,923

 

 

322,442

 

 

 

304,012

 

Income before income taxes

 

65,536

 

 

 

64,551

 

 

69,964

 

 

173,034

 

 

 

197,653

 

Income tax expense

 

11,519

 

 

 

9,310

 

 

11,894

 

 

28,123

 

 

 

33,667

 

Net income

$

54,017

 

 

$

55,241

 

$

58,070

 

 

144,911

 

 

 

163,986

 

Dividends on preferred stock

 

2,967

 

 

 

2,967

 

 

2,967

 

 

8,901

 

 

 

8,901

 

Net income available to common shareholders

$

51,050

 

 

$

52,274

 

$

55,103

 

$

136,010

 

 

$

155,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.68

 

 

$

0.70

 

$

0.74

 

$

1.81