EX-99.1 2 aub-20221020xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

Contact:              Robert M. Gorman - (804) 523-7828

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER FINANCIAL RESULTS

Richmond, Va., October 20, 2022 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) reported net income available to common shareholders of $55.1 million and basic and diluted earnings per common share of $0.74 for the third quarter ended September 30, 2022. Adjusted operating earnings available to common shareholders(1) were $55.1 million, diluted adjusted operating earnings per common share(1) were $0.74, and pre-tax pre-provision adjusted operating earnings available to common shareholders(1) were $73.4 million for the third quarter ended September 30, 2022.

“We believe the third quarter financial results show that Atlantic Union Bankshares is delivering on what we said we would do - with upper single digit annualized loan growth, double digit deposit growth, strong credit quality, an expanding net interest margin and positive operating leverage,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We continue to see resiliency and positive market dynamics in our footprint, which combined with our asset sensitivity, gives us confidence in our ability to achieve our top tier financial targets.”

“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.”

NET INTEREST INCOME

For the third quarter of 2022, net interest income was $150.7 million, an increase of $11.9 million from $138.8 million for the second quarter of 2022. Net interest income (FTE)(1) was $154.6 million in the third quarter of 2022, an increase of $12.2 million from the second quarter of 2022. The increases in net interest income and net interest income (FTE)(1) were primarily driven by increases in loan yields on the Company’s variable rate loans due to higher market interest rates, higher interest income due to average loan growth from the prior quarter, and the additional day count in the third quarter, compared to the second quarter. These increases were partially offset by decreases in Paycheck Protection Program (“PPP)” and fair value accretion interest income and increases in deposit and borrowing costs as a result of increases in short-term market rates and average deposit growth from the prior quarter. The third quarter net interest margin increased 19 basis points from the prior quarter to 3.34% at September 30, 2022, and the net interest margin (FTE)(1) increased 19 basis points during the same period to 3.43%. Earning asset yields increased by 42 basis points in the third quarter of 2022 compared to the second quarter due to the impact of rising market interest rates on loans and investment securities yields. The cost of funds increased from the prior quarter by 23 basis points to 45 basis points at September 30, 2022, driven by higher deposit and borrowing costs 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 quarter ended September 30, 2022, representing a decrease of $1.6 million from the prior quarter. The first, second, and third quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

Loan

Deposit 

Borrowings

    

Accretion

    

Amortization

    

Amortization

    

Total

For the quarter ended March 31, 2022

$

2,253

$

(10)

$

(203)

$

2,040

For the quarter ended June 30, 2022

2,879

(11)

(207)

2,661

For the quarter ended September 30, 2022

1,326

(11)

(209)

1,106

For the remaining three months of 2022 (estimated)

 

945

(12)

(208)

 

725

For the years ending (estimated):

2023

 

3,338

 

(31)

 

(852)

 

2,455

2024

 

2,714

 

(4)

 

(877)

 

1,833

2025

 

2,123

 

(1)

 

(900)

 

1,222

2026

 

1,707

 

 

(926)

 

781

2027

 

1,306

 

 

(953)

 

353

Thereafter

 

6,469

 

 

(7,994)

 

(1,525)

Total remaining acquisition accounting fair value adjustments at September 30, 2022

$

18,602

$

(48)

$

(12,710)

$

5,844

ASSET QUALITY

Overview

During the third quarter of 2022, nonperforming assets (“NPAs”) as a percentage of loans remained low at 0.21% at September 30, 2022. Accruing past due loan levels as a percentage of total loans held for investment at September 30, 2022 totaled 21 basis points, which was a 6 basis point increase from June 30, 2022, and a 9 basis point decrease from September 30, 2021. Net charge-off levels remained low at 0.02% of total average loans (annualized) for the third quarter of 2022. The allowance for credit losses (“ACL”) totaled $119.0 million at September 30, 2022, a $5.8 million increase from the prior quarter.

Nonperforming Assets

At September 30, 2022, NPAs totaled $28.6 million, a decrease of $2.5 million from June 30, 2022. 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, 

2022

2022

2022

2021

2021

Nonaccrual loans

$

26,500

$

29,070

$

29,032

$

31,100

$

35,472

Foreclosed properties

 

2,087

 

2,065

 

1,696

 

1,696

 

1,696

Total nonperforming assets

$

28,587

$

31,135

$

30,728

$

32,796

$

37,168

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, 

2022

2022

2022

2021

2021

Beginning Balance

$

29,070

$

29,032

$

31,100

$

35,472

$

36,399

Net customer payments

 

(3,725)

 

(2,472)

 

(4,132)

 

(5,068)

 

(4,719)

Additions

 

1,302

 

3,203

 

2,087

 

1,294

 

4,177

Charge-offs

 

(125)

 

(311)

 

(23)

 

(598)

 

(385)

Transfers to foreclosed property

 

(22)

 

(382)

 

 

 

Ending Balance

$

26,500

$

29,070

$

29,032

$

31,100

$

35,472


Past Due Loans

Past due loans still accruing interest totaled $29.0 million or 0.21% of total loans held for investment at September 30, 2022, compared to $20.4 million or 0.15% of total loans held for investment at June 30, 2022, and $38.8 million or 0.30% of total loans held for investment at September 30, 2021. The increase in past due loan levels in the third quarter of 2022 as compared to the second quarter of 2022 was primarily due to increases in past due credit relationships within the commercial real estate – owner occupied and commercial and industrial portfolios. Of the total past due loans still accruing interest, $7.4 million or 0.05% of total loans held for investment were loans past due 90 days or more at September 30, 2022, compared to $4.6 million or 0.03% of total loans held for investment at June 30, 2022, and $11.0 million or 0.08% of total loans held for investment at September 30, 2021.

Allowance for Credit Losses

At September 30, 2022, the ACL was $119.0 million and included an allowance for loan and lease losses (“ALLL”) of $108.0 million and a reserve for unfunded commitments (“RUC”) of $11.0 million. The ACL at September 30, 2022 increased $5.8 million from June 30, 2022, primarily due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the third quarter of 2022.

The ACL as a percentage of total loans increased to 0.86% at September 30, 2022, compared to 0.83% at June 30, 2022. The ALLL as a percentage of total loans was 0.78% at September 30, 2022, compared to 0.76% at June 30, 2022.

Net Charge-offs

Net charge-offs were $587,000 or 0.02% of total average loans on an annualized basis for the quarter ended September 30, 2022, compared to $939,000 or 0.03% (annualized) for the second quarter of 2022, and $113,000 or less than 0.01% (annualized) for the third quarter of 2021. On a year-to-date basis through September 30, 2022, net charge-offs totaled $1.5 million or 0.02% of total average loans (annualized).

Provision for Credit Losses

For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $6.4 million, compared to a provision for credit losses of $3.6 million in the previous quarter, and a negative provision for credit losses of $18.8 million recorded during the same quarter in 2021. The provision for credit losses for the third quarter of 2022 reflected a provision of $4.4 million for loan and lease losses and a $2.0 million reserve for unfunded commitments.

NONINTEREST INCOME

Noninterest income decreased $12.7 million to $25.6 million for the quarter ended September 30, 2022 from $38.3 million in the prior quarter, primarily due to the impact of the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”), as the prior quarter included a $9.1 million pre-tax gain on the transaction within other operating income. In addition, the current quarter’s fiduciary and asset management fees decreased $2.8 million from the prior quarter due to a decrease in assets under management primarily driven by the DHFB sale. Other decreases from the prior quarter include a $1.3 million decrease in service charges on deposit accounts, reflective of the changes to the Company’s overdraft policy, a $810,000 decrease in mortgage banking income due to a decline in mortgage origination volumes and lower gain on sales margins, and a $550,000 reduction in loan related interest rate swap fee income driven by a decrease in average transaction swap fees. These noninterest income category decreases were partially offset by increases of $819,000 primarily related to syndication, foreign exchange, and other capital market transaction fees, included in other operating income, an increase of $729,000 in bank owned life insurance income due to mortality benefits, and an increase of $193,000 in interchange fees.

NONINTEREST EXPENSE

Noninterest expense increased to $99.9 million for the quarter ended September 30, 2022 from $98.8 million in the prior quarter, primarily driven by a $1.3 million increase in salaries and benefits expense due primarily to elevated new hire recruiting expenses and lower deferred loan origination costs resulting from changes in loan originations production mix from the prior quarter. In addition, other expenses increased from the prior quarter by $1.1 million primarily driven by OREO gains of $631,000 realized in the prior quarter. The increases to noninterest expense were partially offset by a $1.2 million decline in professional services expense primarily driven by lower strategic project costs.


INCOME TAXES

The effective tax rate for the three months ended September 30, 2022 was 17.0%, compared to 16.7% for the three months ended June 30, 2022, as the prior quarter reflected the impact of discrete items related to the sale of DHFB.

BALANCE SHEET

At September 30, 2022, total assets were $20.0 billion, an increase of $288.4 million or approximately 5.8% (annualized) from June 30, 2022, and an increase of $14.6 million or approximately 0.1% from September 30, 2021. Total assets increased from the prior quarter due to the increase in total loans held for investment (net of deferred fees and costs) of $263.3 million driven by loan growth, as well as an increase in cash and cash equivalents of $150.0 million due to deposit growth, partially offset by a decline in the investment securities portfolio of $179.4 million primarily related to the impact of market interest rate increases on the market value of the available for sale securities portfolio.

At September 30, 2022, loans held for investment (net of deferred fees and costs) totaled $13.9 billion, including $12.1 million in PPP loans, an increase of $263.3 million or 7.7% (annualized) from $13.7 billion, including $21.7 million in PPP loans, at June 30, 2022. Average loans held for investment (net of deferred fees and costs) totaled $13.7 billion at September 30, 2022, an increase of $207.9 million or 6.1% (annualized) from the prior quarter. Excluding the effects of the PPP(1), adjusted loans held for investment (net of deferred fees and costs) at September 30, 2022 increased $272.9 million or 7.9% (annualized) from June 30, 2022 and adjusted average loans increased $237.0 million or 7.0% (annualized) from the prior quarter. At September 30, 2022, loans held for investment (net of deferred fees and costs) increased $779.1 million or 5.9% from September 30, 2021, and quarterly average loans increased $281.8 million or 2.1% from the same period in the prior year. Excluding the effects of the PPP(1), adjusted loans held for investment (net of deferred fees and costs) at September 30, 2022 increased $1.2 billion or 9.7% from the same period in the prior year, and adjusted quarterly average loans during the third quarter of 2022 increased $954.8 million or 7.5% from the same period in the prior year.

At September 30, 2022, total deposits were $16.5 billion, an increase of $417.6 million or approximately 10.3% (annualized) from June 30, 2022. Average deposits at September 30, 2022 also increased from the prior quarter by $297.2 million or 7.3% (annualized). Total deposits at September 30, 2022 decreased $75.9 million or 0.5% from September 30, 2021, and quarterly average deposits at September 30, 2022 decreased $229.9 million or 1.4% from the same period in the prior year. The decrease in total deposits from the prior year was primarily due to maturing high cost time deposits.

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

    

September 30, 

    

June 30, 

    

September 30, 

 

2022

2022

2021

 

Common equity Tier 1 capital ratio (2)

 

9.96

%  

9.96

%  

10.37

%

Tier 1 capital ratio (2)

 

10.98

%  

11.00

%  

11.49

%

Total capital ratio (2)

 

13.80

%  

13.86

%  

13.78

%

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

 

9.32

%  

9.26

%  

8.97

%

Common equity to total assets

 

10.60

%  

11.32

%  

12.68

%

Tangible common equity to tangible assets (1)

 

6.11

%  

6.78

%  

8.16

%


For the quarter ended September 30, 2022, the Company’s common equity to total assets capital ratio and the tangible common equity to tangible assets capital ratio decreased from the prior quarter and prior year primarily due to the unrealized losses on the available for sale securities portfolio recorded in other comprehensive income due to market interest rate increases in the third quarter of 2022.

During the third quarter of 2022, 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 2022 and the third quarter of 2021. During the third quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, an increase of $0.02 or approximately 7.1% from the second quarter of 2022 and the third quarter of 2021.



(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 Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

(2) All ratios at September 30, 2022 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 (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. 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 2022 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 20, 2022 during which management will review the financial results for the three and nine months ended September 30, 2022 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/st4hi3qy.

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

https://register.vevent.com/register/BI0d0b7ad4bc21407885cc5e244e5d623f. 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 periods ended September 30, 2022, 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

Certain statements in this press release 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 quotes, statements regarding the Company’s outlook on future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, statements that include, projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, or otherwise that 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. Such 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 its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, the Company 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 the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolio;
inflation and its impacts on economic growth and customer and client behavior;
general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
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 the Company’s loan or investment portfolios and changes therein;
demand for loan products and financial services in the Company’s market areas;
the Company’s ability to manage its growth or implement its growth strategy;
the effectiveness of expense reduction plans;
the introduction of new lines of business or new products and services;
the Company’s ability to recruit and retain key employees;
real estate values in the Company’s lending area;
an insufficient ACL;
changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;
volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;
the Company’s liquidity and capital positions;
concentrations of loans secured by real estate, particularly commercial real estate;
the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
the Company’s 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 (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;

the discontinuation of LIBOR and its impact on the financial markets, and the Company’s 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 the Company’s 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;
potential claims, damages, and fines related to litigation or government actions;
the effects of changes in federal, state or local tax laws and regulations;
any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
other factors, many of which are beyond the control of the Company.

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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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, all forward-looking statements made in this press release 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 its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in the press release, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does 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

    

09/30/22

    

06/30/22

    

09/30/21

 

09/30/22

09/30/21

Results of Operations

Interest and dividend income

$

171,156

$

148,755

$

146,379

$

458,367

$

444,904

Interest expense

 

20,441

 

9,988

 

8,891

 

37,954

 

31,970

Net interest income

 

150,715

 

138,767

 

137,488

 

420,413

 

412,934

Provision for credit losses

 

6,412

 

3,559

 

(18,850)

 

12,771

 

(59,888)

Net interest income after provision for credit losses

 

144,303

 

135,208

 

156,338

 

407,642

 

472,822

Noninterest income

 

25,584

 

38,286

 

29,938

 

94,023

 

89,388

Noninterest expenses

 

99,923

 

98,768

 

95,343

 

304,012

 

299,251

Income before income taxes

 

69,964

 

74,726

 

90,933

 

197,653

 

262,959

Income tax expense

 

11,894

 

12,500

 

16,368

 

33,667

 

46,821

Net income

58,070

62,226

74,565

163,986

216,138

Dividends on preferred stock

2,967

2,967

2,967

8,901

8,901

Net income available to common shareholders

$

55,103

$

59,259

$

71,598

$

155,085

$

207,237

Interest earned on earning assets (FTE) (1)

$

174,998

$

152,332

$

149,543

$

469,122

$

454,265

Net interest income (FTE) (1)

 

154,557

 

142,344

 

140,652

 

431,168

 

422,295

Total revenue (FTE) (1)

180,141

180,630

170,590

525,191

511,683

Pre-PPP total adjusted revenue (FTE) (1) (10)

179,687

170,204

159,408

511,325

474,790

Pre-tax pre-provision adjusted operating earnings (8)

76,376

69,205

72,074

206,852

218,581

Pre-PPP pre-tax pre-provision adjusted operating earnings (8) (10)

75,922

67,859

60,901

202,066

181,775

Key Ratios

Earnings per common share, diluted

$

0.74

$

0.79

$

0.94

$

2.07

$

2.66

Return on average assets (ROA)

 

1.15

%  

 

1.27

%  

 

1.47

%

 

1.10

%  

 

1.45

%

Return on average equity (ROE)

 

9.45

%  

 

10.21

%  

 

10.88

%

 

8.72

%  

 

10.59

%

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

 

17.21

%  

 

18.93

%  

 

18.79

%

 

15.69

%  

 

18.31

%

Efficiency ratio

 

56.68

%  

 

55.78

%  

 

56.95

%

 

59.10

%  

 

59.57

%

Efficiency ratio (FTE) (1)

55.47

%  

 

54.68

%  

 

55.89

%

 

57.89

%  

 

58.48

%

Net interest margin

 

3.34

%  

 

3.15

%  

 

3.05

%

 

3.16

%  

 

3.10

%

Net interest margin (FTE) (1)

 

3.43

%  

 

3.24

%  

 

3.12

%

 

3.24

%  

 

3.17

%

Yields on earning assets (FTE) (1)

 

3.88

%  

 

3.46

%  

 

3.31

%

 

3.52

%  

 

3.41

%

Cost of interest-bearing liabilities

 

0.68

%  

 

0.35

%  

 

0.30

%

 

0.43

%  

 

0.36

%

Cost of deposits

 

0.37

%  

 

0.15

%  

 

0.14

%

 

0.21

%  

 

0.18

%

Cost of funds

 

0.45

%  

 

0.22

%  

 

0.19

%

 

0.28

%  

 

0.24

%

Operating Measures (4)

Adjusted operating earnings

$

58,070

$

54,244

$

74,558

$

160,355

$

228,391

Adjusted operating earnings available to common shareholders

55,103

51,277

71,591

151,454

219,490

Adjusted operating earnings per common share, diluted

$

0.74

$

0.69

$

0.94

$

2.02

$

2.81

Adjusted operating ROA

 

1.15

%  

 

1.10

%  

 

1.47

%

 

1.08

%  

 

1.54

%

Adjusted operating ROE

 

9.45

%  

 

8.90

%  

 

10.88

%

8.53

%  

 

11.19

%

Adjusted operating ROTCE (2) (3)

 

17.21

%  

 

16.47

%  

 

18.79

%

 

15.34

%  

 

19.35

%

Adjusted operating efficiency ratio (FTE) (1)(7)

 

54.09

%  

 

55.88

%  

 

53.91

%

 

56.20

%  

 

53.36

%

Per Share Data

Earnings per common share, basic

$

0.74

$

0.79

$

0.94

$

2.07

$

2.66

Earnings per common share, diluted

 

0.74

 

0.79

 

0.94

 

2.07

 

2.66

Cash dividends paid per common share

 

0.30

 

0.28

 

0.28

 

0.86

 

0.81

Market value per share

 

30.38

 

33.92

 

36.85

 

30.38

 

36.85

Book value per common share

 

28.46

 

29.95

 

33.60

 

28.46

 

33.60

Tangible book value per common share (2)

 

15.61

 

17.07

 

20.55

 

15.61

 

20.55

Price to earnings ratio, diluted

 

10.37

 

10.68

 

9.88

 

10.99

 

10.36

Price to book value per common share ratio

 

1.07

 

1.13

 

1.10

 

1.07

 

1.10

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

 

1.95

 

1.99

 

1.79

 

1.95

 

1.79

Weighted average common shares outstanding, basic

 

74,703,699

 

74,847,899

 

76,309,355

 

75,029,000

 

77,988,151

Weighted average common shares outstanding, diluted

 

74,705,054

 

74,849,871

 

76,322,736

 

75,034,084

 

78,007,543

Common shares outstanding at end of period

 

74,703,774

 

74,688,314

 

75,645,031

 

74,703,774

 

75,645,031


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

    

09/30/22

    

06/30/22

    

09/30/21

 

09/30/22

09/30/21

 

Capital Ratios

 

Common equity Tier 1 capital ratio (5)

 

9.96

%  

9.96

%  

10.37

%

9.96

%  

10.37

%

Tier 1 capital ratio (5)

 

10.98

%  

11.00

%  

11.49

%

10.98

%  

11.49

%

Total capital ratio (5)

 

13.80

%  

13.86

%  

13.78

%

13.80

%  

13.78

%

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

 

9.32

%  

9.26

%  

8.97

%

9.32

%  

8.97

%

Common equity to total assets

 

10.60

%  

11.32

%  

12.68

%

10.60

%  

12.68

%

Tangible common equity to tangible assets (2)

 

6.11

%  

6.78

%  

8.16

%

6.11

%  

8.16

%

Financial Condition

 

  

 

  

 

  

  

 

  

Assets

$

19,950,231

$

19,661,799

$

19,935,657

$

19,950,231

$

19,935,657

Loans held for investment (net of deferred fees and costs)

 

13,918,720

 

13,655,408

 

13,139,586

 

13,918,720

 

13,139,586

Securities

 

3,640,722

 

3,820,078

 

3,807,723

 

3,640,722

 

3,807,723

Earning Assets

 

17,790,324

 

17,578,979

 

17,795,784

 

17,790,324

 

17,795,784

Goodwill

 

925,211

 

925,211

 

935,560

 

925,211

 

935,560

Amortizable intangibles, net

 

29,142

 

31,621

 

46,537

 

29,142

 

46,537

Deposits

 

16,546,216

 

16,128,635

 

16,622,160

 

16,546,216

 

16,622,160

Borrowings

 

669,558

 

797,948

 

385,765

 

669,558

 

385,765

Stockholders' equity

 

2,281,150

 

2,391,476

 

2,694,439

 

2,281,150

 

2,694,439

Tangible common equity (2)

 

1,160,440

 

1,268,287

 

1,545,985

 

1,160,440

 

1,545,985

Loans held for investment, net of deferred fees and costs

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

1,068,201

$

988,379

$

877,351

$

1,068,201

$

877,351

Commercial real estate - owner occupied

 

1,953,872

 

1,965,702

 

2,027,299

 

1,953,872

 

2,027,299

Commercial real estate - non-owner occupied

 

3,900,325

 

3,860,819

 

3,730,720

 

3,900,325

 

3,730,720

Multifamily real estate

 

774,970

 

762,502

 

776,287

 

774,970

 

776,287

Commercial & Industrial

 

2,709,047

 

2,595,891

 

2,580,190

 

2,709,047

 

2,580,190

Residential 1-4 Family - Commercial

 

542,612

 

553,771

 

624,347

 

542,612

 

624,347

Residential 1-4 Family - Consumer

 

891,353

 

865,174

 

822,971

 

891,353

 

822,971

Residential 1-4 Family - Revolving

 

588,452

 

583,073

 

557,803

 

588,452

 

557,803

Auto

 

561,277

 

525,301

 

425,436

 

561,277

 

425,436

Consumer

 

172,776

 

180,045

 

182,039

 

172,776

 

182,039

Other Commercial

 

755,835

 

774,751

 

535,143

 

755,835

 

535,143

Total loans held for investment

$

13,918,720

$

13,655,408

$

13,139,586

$

13,918,720

$

13,139,586

Deposits

 

  

 

  

 

  

 

  

 

  

Interest checking accounts

$

4,354,351

$

3,943,303

$

4,016,505

$

4,354,351

$

4,016,505

Money market accounts

 

3,962,473

 

3,956,050

 

4,152,986

 

3,962,473

 

4,152,986

Savings accounts

 

1,173,566

 

1,165,577

 

1,079,735

 

1,173,566

 

1,079,735

Time deposits of $250,000 and over

 

415,984

 

360,158

 

546,199

 

415,984

 

546,199

Other time deposits

1,348,904

1,342,009

1,497,897

1,348,904

1,497,897

Time deposits

 

1,764,888

 

1,702,167

 

2,044,096

 

1,764,888

 

2,044,096

Total interest-bearing deposits

$

11,255,278

$

10,767,097

$

11,293,322

$

11,255,278

$

11,293,322

Demand deposits

 

5,290,938

 

5,361,538

 

5,328,838

 

5,290,938

 

5,328,838

Total deposits

$

16,546,216

$

16,128,635

$

16,622,160

$

16,546,216

$

16,622,160

Averages

 

  

 

  

 

  

 

  

 

  

Assets

$

19,980,500

$

19,719,402

$

20,056,570

$

19,873,644

$

19,890,155

Loans held for investment (net of deferred fees and costs)

 

13,733,447

 

13,525,529

 

13,451,674

 

13,521,507

 

13,827,002

Loans held for sale

 

15,063

 

20,634

 

30,035

 

16,779

 

43,162

Securities

 

3,818,607

 

3,930,912

 

3,679,977

 

3,981,308

 

3,438,285

Earning assets

 

17,879,222

 

17,646,470

 

17,910,389

 

17,803,550

 

17,824,607

Deposits

 

16,488,224

 

16,191,056

 

16,718,144

 

16,397,790

 

16,433,470

Time deposits

 

1,745,224

 

1,667,378

 

2,109,131

 

1,726,341

 

2,288,530

Interest-bearing deposits

 

11,163,945

 

10,824,465

 

11,512,825

 

11,091,115

 

11,483,654

Borrowings

 

703,272

 

765,886

 

395,984

 

660,995

 

456,184

Interest-bearing liabilities

 

11,867,217

 

11,590,351

 

11,908,809

 

11,752,110

 

11,939,838

Stockholders' equity

 

2,436,999

 

2,445,045

 

2,718,032

 

2,513,522

 

2,728,605

Tangible common equity (2)

 

1,315,085

 

1,304,536

 

1,567,937

 

1,378,240

 

1,574,961


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

    

09/30/22

    

06/30/22

    

09/30/21

 

09/30/22

09/30/21

 

Asset Quality

 

Allowance for Credit Losses (ACL)

 

  

 

  

 

  

  

 

  

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

$

104,184

$

102,591

$

118,261

$

99,787

$

160,540

Add: Recoveries

 

1,214

 

1,018

 

2,153

 

3,745

 

6,498

Less: Charge-offs

 

1,801

 

1,957

 

2,266

 

5,267

 

7,852

Add: Provision for loan losses

 

4,412

 

2,532

 

(16,350)

 

9,744

 

(57,388)

Ending balance, ALLL

$

108,009

$

104,184

$

101,798

$

108,009

$

101,798

Beginning balance, Reserve for unfunded commitment (RUC)

$

9,000

$

8,000

$

10,000

$

8,000

$

10,000

Add: Provision for unfunded commitments

2,000

1,000

(2,500)

3,000

(2,500)

Ending balance, RUC

$

11,000

$

9,000

$

7,500

$

11,000

$

7,500

Total ACL

$

119,009

$

113,184

$

109,298

$

119,009

$

109,298

ACL / total outstanding loans

0.86

%  

0.83

%  

0.83

%

0.86

%  

0.83

%

ACL / total adjusted loans(9)

0.86

%  

0.83

%  

0.86

%

0.86

%  

0.86

%

ALLL / total outstanding loans

 

0.78

%  

 

0.76

%  

 

0.77

%

 

0.78

%  

 

0.77

%

ALLL / total adjusted loans(9)

0.78

%  

0.76

%  

0.80

%  

0.78

%  

0.80

%  

Net charge-offs / total average loans

 

0.02

%  

 

0.03

%  

 

0.00

%

 

0.02

%  

 

0.01

%

Net charge-offs / total adjusted average loans(9)

0.02

%  

0.03

%  

0.00

%

0.02

%  

0.01

%

Provision for loan losses/ total average loans

 

0.13

%  

 

0.08

%  

 

(0.48)

%

 

0.10

%  

 

(0.55)

%

Provision for loan losses/ total adjusted average loans(9)

0.13

%  

0.08

%  

(0.51)

%

0.10

%  

(0.60)

%

Nonperforming Assets (6)

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

421

$

581

$

2,710

$

421

$

2,710

Commercial real estate - owner occupied

 

4,883

 

4,996

 

7,786

 

4,883

 

7,786

Commercial real estate - non-owner occupied

 

1,923

 

3,301

 

4,174

 

1,923

 

4,174

Multifamily real estate

113

113

Commercial & Industrial

 

2,289

 

2,728

 

2,062

 

2,289

 

2,062

Residential 1-4 Family - Commercial

 

1,962

 

2,031

 

2,445

 

1,962

 

2,445

Residential 1-4 Family - Consumer

 

11,121

 

12,084

 

12,150

 

11,121

 

12,150

Residential 1-4 Family - Revolving

 

3,583

 

3,069

 

3,723

 

3,583

 

3,723

Auto

 

318

 

279

 

255

 

318

 

255

Consumer

1

54

54

Nonaccrual loans

$

26,500

$

29,070

$

35,472

$

26,500

$

35,472

Foreclosed property

 

2,087

 

2,065

 

1,696

 

2,087

 

1,696

Total nonperforming assets (NPAs)

$

28,587

$

31,135

$

37,168

$

28,587

$

37,168

Construction and land development

$

115

$

1

$

304

$

115

$

304

Commercial real estate - owner occupied

 

3,517

 

792

 

1,886

 

3,517

 

1,886

Commercial real estate - non-owner occupied

621

642

1,175

621

1,175

Commercial & Industrial

 

526

 

322

 

1,256

 

526

 

1,256

Residential 1-4 Family - Commercial

 

308

 

184

 

1,091

 

308

 

1,091

Residential 1-4 Family - Consumer

 

680

 

1,112

 

2,462

 

680

 

2,462

Residential 1-4 Family - Revolving

 

1,255

 

997

 

2,474

 

1,255

 

2,474

Auto

 

148

 

134

 

209

 

148

 

209

Consumer

 

86

 

79

 

173

 

86

 

173

Other Commercial

95

329

95

Loans ≥ 90 days and still accruing

$

7,351

$

4,592

$

11,030

$

7,351

$

11,030

Total NPAs and loans ≥ 90 days

$

35,938

$

35,727

$

48,198

$

35,938

$

48,198

NPAs / total outstanding loans

0.21

%  

 

0.23

%  

 

0.28

%

 

0.21

%  

 

0.28

%

NPAs / total adjusted loans(9)

0.21

%  

0.23

%  

0.29

%  

0.21

%  

0.29

%  

NPAs / total assets

 

0.14

%  

 

0.16

%  

 

0.19

%

 

0.14

%  

 

0.19

%

ALLL / nonaccrual loans

 

407.58

%  

 

358.39

%  

 

286.98

%

 

407.58

%  

 

286.98

%

ALLL/ nonperforming assets

 

377.83

%  

 

334.62

%  

 

273.89

%

 

377.83

%  

 

273.89

%

 

  

 

  

 

  

 

  

 

  


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

    

09/30/22

    

06/30/22

    

09/30/21

 

09/30/22

09/30/21

 

Past Due Detail (6)

 

Construction and land development

$

120

$

645

$

744

$

120

$

744

Commercial real estate - owner occupied

 

7,337

 

1,374

 

735

 

7,337

 

735

Commercial real estate - non-owner occupied

 

 

511

 

1,302

 

 

1,302

Commercial & Industrial

 

796

 

2,581

 

11,089

 

796

 

11,089

Residential 1-4 Family - Commercial

 

1,410

 

1,944

 

807

 

1,410

 

807

Residential 1-4 Family - Consumer

 

1,123

 

594

 

406

 

1,123

 

406

Residential 1-4 Family - Revolving

 

1,115

 

1,368

 

1,092

 

1,115

 

1,092

Auto

 

1,876

 

1,841

 

1,548

 

1,876

 

1,548

Consumer

409

361

790

409

790

Other Commercial

11

631

631

Loans 30-59 days past due

$

14,186

$

11,230

$

19,144

$

14,186

$

19,144

Construction and land development

$

107