EX-99.1 2 aub-20230124xex99d1.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 FOURTH QUARTER FINANCIAL RESULTS

Richmond, Va., January 24, 2023 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders and adjusted operating earnings available to common shareholders(1) of $67.6 million and basic and diluted earnings per common share of $0.90 for the fourth quarter ended December 31, 2022. Pre-tax pre-provision adjusted operating earnings available to common shareholders(1) totaled $85.6 million for the fourth quarter ended December 31, 2022.

“Atlantic Union Bankshares delivered strong fourth quarter financial results as we hit our profitability and efficiency targets - with low double-digit annualized loan 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. “Our markets continue to show resiliency and positive dynamics, which combined with our asset sensitivity lead us to believe we are well-positioned for 2023.”

“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 fourth quarter of 2022, net interest income was $163.8 million, an increase of $13.1 million from $150.7 million for the third quarter of 2022. Net interest income (FTE)(1) was $168.0 million in the fourth quarter of 2022, an increase of $13.4 million from the third quarter of 2022. The increases in net interest income and net interest income (FTE)(1) were primarily driven by higher loan yields on the Company’s variable rate loans due to rising market interest rates, average loan growth, and increases in investment income primarily due to higher yield on taxable securities. These increases were partially offset by an increase in interest expense due to higher cost of funds, primarily due to an increase in short-term interest rates on borrowings and deposits, increased use of short-term funding and higher average deposits from the prior quarter. The fourth quarter net interest margin and net interest margin (FTE)(1) increased 27 basis points from the prior quarter to 3.61% and 3.70%, respectively, at December 31, 2022. Earning asset yields increased by 66 basis points in the fourth quarter of 2022 compared to the third quarter of 2022 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 39 basis points to 84 basis points at December 31, 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 $1.3 million for the quarter ended December 31, 2022, representing an increase of $157,000 from the prior quarter. The four 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 quarter ended December 31, 2022

1,484

(12)

(209)

1,263

Total for the year ended December 31, 2022

$

7,942

$

(44)

$

(828)

$

7,070

For the years ending (estimated):

2023

 

3,169

 

(31)

 

(852)

 

2,286

2024

 

2,597

 

(4)

 

(877)

 

1,716

2025

 

2,036

 

(1)

 

(900)

 

1,135

2026

 

1,650

 

 

(926)

 

724

2027

 

1,259

 

 

(953)

 

306

Thereafter

 

6,423

 

 

(7,993)

 

(1,570)

Total remaining acquisition accounting fair value adjustments at December 31, 2022

$

17,134

$

(36)

$

(12,501)

$

4,597

ASSET QUALITY

Overview

Nonperforming assets (“NPAs”) as a percentage of loans decreased 2 basis points to 0.19% at December 31, 2022, compared to the prior quarter. Accruing past due loan levels as a percentage of total loans held for investment at December 31, 2022 totaled 21 basis points, which is consistent with September 30, 2022, and represents a 2 basis point decrease from December 31, 2021. Net charge-off levels remained low at 0.02% of total average loans (annualized) for the fourth quarter of 2022, consistent with the quarters ended September 30, 2022 and December 31, 2021. The allowance for credit losses (“ACL”) totaled $124.4 million at December 31, 2022, a $5.4 million increase from the prior quarter.

Nonperforming Assets

At December 31, 2022, NPAs totaled $27.1 million, a decrease of $1.5 million from September 30, 2022. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

    

December 31, 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

2022

2022

2022

2022

2021

Nonaccrual loans

$

27,038

$

26,500

$

29,070

$

29,032

$

31,100

Foreclosed properties

 

76

 

2,087

 

2,065

 

1,696

 

1,696

Total nonperforming assets

$

27,114

$

28,587

$

31,135

$

30,728

$

32,796

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

    

December 31, 

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

2022

2022

2022

2022

2021

Beginning Balance

$

26,500

$

29,070

$

29,032

$

31,100

$

35,472

Net customer payments

 

(1,805)

 

(3,725)

 

(2,472)

 

(4,132)

 

(5,068)

Additions

 

2,935

 

1,302

 

3,203

 

2,087

 

1,294

Charge-offs

 

(461)

 

(125)

 

(311)

 

(23)

 

(598)

Loans returning to accruing status

 

(131)

 

 

 

 

Transfers to foreclosed property

 

 

(22)

 

(382)

 

 

Ending Balance

$

27,038

$

26,500

$

29,070

$

29,032

$

31,100


Past Due Loans

Past due loans still accruing interest totaled $30.0 million or 0.21% of total loans held for investment at December 31, 2022, compared to $29.0 million or 0.21% of total loans held for investment at September 30, 2022, and $29.9 million or 0.23% of total loans held for investment at December 31, 2021. Of the total past due loans still accruing interest, $7.5 million or 0.05% of total loans held for investment were loans past due 90 days or more at December 31, 2022, compared to $7.4 million or 0.05% of total loans held for investment at September 30, 2022, and $9.1 million or 0.07% of total loans held for investment at December 31, 2021.

Allowance for Credit Losses

At December 31, 2022, the ACL was $124.4 million and included an allowance for loan and lease losses (“ALLL”) of $110.8 million and a reserve for unfunded commitments (“RUC”) of $13.6 million. The ACL at December 31, 2022 increased $5.4 million from September 30, 2022 due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the fourth quarter of 2022.

The ACL as a percentage of total loans was 0.86% at December 31, 2022, consistent with September 30, 2022. The ALLL as a percentage of total loans was 0.77% at December 31, 2022, compared to 0.78% at September 30, 2022.

Net Charge-offs

Net charge-offs were $810,000 or 0.02% of total average loans on an annualized basis for the quarter ended December 31, 2022, compared to $587,000 or 0.02% (annualized) for the third quarter of 2022, and $511,000 or 0.02% (annualized) for the fourth quarter of 2021. On a year-to-date basis through December 31, 2022, net charge-offs totaled $2.3 million or 0.02% of total average loans.

Provision for Credit Losses

For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $6.3 million, compared to a provision for credit losses of $6.4 million in the previous quarter, and a negative provision for credit losses of $1.0 million in the fourth quarter of 2021. The provision for credit losses for the fourth quarter of 2022 reflected a provision of $3.6 million for loan losses and a $2.7 million provision for unfunded commitments.

NONINTEREST INCOME

Noninterest income decreased $1.1 million to $24.5 million for the quarter ended December 31, 2022 from $25.6 million in the prior quarter primarily due to declines in equity method investment income, partially offset by increases in loan syndication, Small Business Administration (“SBA”) 7a, and foreign exchange revenues, each included within other operating income. In addition, mortgage banking income decreased $1.0 million from the prior quarter due to lower mortgage origination volumes and gain on sale margins, and bank owned life insurance income decreased $796,000, reflecting the impact of the prior quarter’s mortality benefit. These noninterest income category decreases were partially offset by increases in loan-related interest rate swap fees of $1.6 million due to an increase in average deal size among swaps executed in the current quarter.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended December 31, 2022 decreased to $99.8 million from $99.9 million in the prior quarter. Notable noninterest expense activity in the fourth quarter of 2022 included a gain related to the sale and leaseback of an office building, refunds of prior period FDIC assessment expenses, costs related to the closure of five branches expected to close in the first quarter of 2023 and other restructuring expenses, the write-down of obsolete software, increased variable incentive compensation and profit-sharing expenses, as well as professional services increases related to strategic projects.

INCOME TAXES

The effective tax rate for the three months ended December 31, 2022 was 14.3%, compared to 17.0% for the three months ended September 30, 2022. The decrease in the effective tax rate reflects the impact of changes in the proportion of tax-exempt income to pre-tax income.


BALANCE SHEET

At December 31, 2022, total assets were $20.5 billion, an increase of $510.9 million or approximately 10.2% (annualized) from September 30, 2022, and an increase of $396.3 million or approximately 2.0% from December 31, 2021. Total assets increased from the prior quarter primarily due to the $530.4 million increase in total loans held for investment (net of deferred fees and costs) driven by loan growth, which was funded primarily by a $1.0 billion increase in short-term borrowings and partially by a $70.1 million decrease in cash and cash equivalents.

At December 31, 2022, loans held for investment (net of deferred fees and costs) totaled $14.4 billion, including $7.3 million in Paycheck Protection Program (“PPP”) loans, an increase of $530.4 million or 15.1% (annualized) from $13.9 billion, including $12.1 million in PPP loans, at September 30, 2022. Average loans held for investment (net of deferred fees and costs) totaled $14.1 billion at December 31, 2022, an increase of $384.0 million or 11.1% (annualized) from the prior quarter. Excluding PPP loans (net of deferred fees and costs)(1), adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $535.3 million or 15.3% (annualized) from September 30, 2022 and adjusted average loans increased $390.0 million or 11.3% (annualized) from the prior quarter. At December 31, 2022, loans held for investment (net of deferred fees and costs) increased $1.3 billion or 9.5% from December 31, 2021, and quarterly average loans increased $1.0 billion or 7.9% from the same period in the prior year. Excluding PPP loans (net of deferred fees and costs)(1), adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $1.4 billion or 10.7% from December 31, 2021, and adjusted quarterly average loans during the fourth quarter of 2022 increased $1.3 billion or 10.3% from the fourth quarter of 2021.

At December 31, 2022, total deposits were $15.9 billion, a decrease of $614.5 million or approximately 14.7% (annualized) from September 30, 2022. Average deposits at December 31, 2022 increased from the prior quarter by $123.5 million or 3.0% (annualized). Total deposits at December 31, 2022 decreased $679.4 million or 4.1% from December 31, 2021, and quarterly average deposits during the fourth quarter of 2022 also decreased $249.5 million or 1.5% from the fourth quarter of 2021. Total deposits decreased from the prior quarter and prior year primarily due to the impact of customer behavior in response to inflation and higher market interest rates, in addition to seasonal outflows.

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

    

December 31, 

    

September 30, 

    

December 31, 

 

2022

2022

2021

 

Common equity Tier 1 capital ratio (2)

 

9.95

%  

9.96

%  

10.24

%

Tier 1 capital ratio (2)

 

10.94

%  

10.98

%  

11.32

%

Total capital ratio (2)

 

13.70

%  

13.80

%  

14.17

%

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

 

9.42

%  

9.32

%  

9.01

%

Common equity to total assets

 

10.78

%  

10.60

%  

12.68

%

Tangible common equity to tangible assets (1)

 

6.43

%  

6.11

%  

8.20

%


At December 31, 2022, the Company’s common equity to total assets capital ratio and tangible common equity to tangible assets capital ratio decreased from the prior year primarily due to the unrealized losses on the available for sale (“AFS”) securities portfolio recorded in other comprehensive income due to market interest rate increases, while these ratios increased from the prior quarter due to the increase in the value of the AFS securities portfolio, as long-term rates decreased during the fourth quarter of 2022.

During the fourth 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 third quarter of 2022 and the fourth quarter of 2021. During the fourth quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the third quarter of 2022 and an increase of $0.02 or approximately 7.1% from the fourth 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 December 31, 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 (NYSE: 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.

On January 18, 2023, the Company completed the transfer of the listing of its common stock and its depositary shares, each representing a 1/400th interest in a share of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, from The Nasdaq Stock Market LLC to the New York Stock Exchange, under the ticker symbols of “AUB” and “AUB.PRA”, respectively.

FOURTH QUARTER AND FISCAL YEAR 2022 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 24, 2023 during which management will review the financial results for the fourth quarter and fiscal year 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/d6afrqsq.

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

https://register.vevent.com/register/BI10abddc24ec746bdb44736355d7d0588. 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 December 31, 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

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 future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, and statements that include other projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, 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 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 their related impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolios;
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, 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 its 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. 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

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Year Ended

    

12/31/22

    

09/30/22

    

12/31/21

 

12/31/22

12/31/21

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(audited)

Results of Operations

Interest and dividend income

$

202,068

$

171,156

$

147,456

$

660,435

$

592,359

Interest expense

 

38,220

 

20,441

 

9,129

 

76,174

 

41,099

Net interest income

 

163,848

 

150,715

 

138,327

 

584,261

 

551,260

Provision for credit losses

 

6,257

 

6,412

 

(1,000)

 

19,028

 

(60,888)

Net interest income after provision for credit losses

 

157,591

 

144,303

 

139,327

 

565,233

 

612,148

Noninterest income

 

24,500

 

25,584

 

36,417

 

118,523

 

125,806

Noninterest expenses

 

99,790

 

99,923

 

119,944

 

403,802

 

419,195

Income before income taxes

 

82,301

 

69,964

 

55,800

 

279,954

 

318,759

Income tax expense

 

11,777

 

11,894

 

8,021

 

45,444

 

54,842

Net income

 

70,524

 

58,070

 

47,779

 

234,510

 

263,917

Dividends on preferred stock

2,967

2,967

2,967

11,868

11,868

Net income available to common shareholders

$

67,557

$

55,103

$

44,812

$

222,642

$

252,049

Interest earned on earning assets (FTE) (1)

$

206,186

$

174,998

$

150,684

$

675,308

$

604,950

Net interest income (FTE) (1)

 

167,966

 

154,557

 

141,555

 

599,134

 

563,851

Total revenue (FTE) (1)

192,466

180,141

177,972

717,657

689,657

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

192,447

179,687

161,423

703,772

636,215

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

88,559

76,376

66,199

295,411

284,779

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

88,539

75,922

54,787

290,605

236,561

Key Ratios

Earnings per common share, diluted

$

0.90

$

0.74

$

0.59

$

2.97

$

3.26

Return on average assets (ROA)

 

1.39

%  

 

1.15

%  

 

0.94

%

 

1.18

%  

 

1.32

%

Return on average equity (ROE)

 

12.05

%  

 

9.45

%  

 

6.98

%

 

9.51

%  

 

9.68

%

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

 

22.92

%  

 

17.21

%  

 

11.98

%

 

17.33

%  

 

16.72

%

Efficiency ratio

 

52.98

%  

 

56.68

%  

 

68.64

%

 

57.46

%  

 

61.91

%

Efficiency ratio (FTE) (1)

51.85

%  

 

55.47

%  

 

67.39

%

 

56.27

%  

 

60.78

%

Net interest margin

 

3.61

%  

 

3.34

%  

 

3.03

%

 

3.27

%  

 

3.08

%

Net interest margin (FTE) (1)

 

3.70

%  

 

3.43

%  

 

3.10

%

 

3.36

%  

 

3.15

%

Yields on earning assets (FTE) (1)

 

4.54

%  

 

3.88

%  

 

3.30

%

 

3.78

%  

 

3.38

%

Cost of interest-bearing liabilities

 

1.24

%  

 

0.68

%  

 

0.30

%

 

0.64

%  

 

0.34

%

Cost of deposits

 

0.72

%  

 

0.37

%  

 

0.12

%

 

0.34

%  

 

0.16

%

Cost of funds

 

0.84

%  

 

0.45

%  

 

0.20

%

 

0.42

%  

 

0.23

%

Operating Measures (4)

Adjusted operating earnings

$

70,525

$

58,070

$

56,784

$

230,879

$

285,174

Adjusted operating earnings available to common shareholders

67,558

55,103

53,817

219,011

273,306

Adjusted operating earnings per common share, diluted

$

0.90

$

0.74

$

0.71

$

2.92

$

3.53

Adjusted operating ROA

 

1.39

%  

 

1.15

%  

 

1.11

%

 

1.16

%  

 

1.43

%

Adjusted operating ROE

 

12.05

%  

 

9.45

%  

 

8.30

%

9.37

%  

 

10.46

%

Adjusted operating ROTCE (2) (3)

 

22.92

%  

 

17.21

%  

 

14.25

%

 

17.06

%  

 

18.07

%

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

 

50.61

%  

 

54.09

%  

 

57.96

%

 

54.68

%  

 

54.52

%

Per Share Data

Earnings per common share, basic

$

0.90

$

0.74

$

0.59

$

2.97

$

3.26

Earnings per common share, diluted

 

0.90

 

0.74

 

0.59

 

2.97

 

3.26

Cash dividends paid per common share

 

0.30

 

0.30

 

0.28

 

1.16

 

1.09

Market value per share

 

35.14

 

30.38

 

37.29

 

35.14

 

37.29

Book value per common share

 

29.68

 

28.46

 

33.80

 

29.68

 

33.80

Tangible book value per common share (2)

 

16.87

 

15.61

 

20.79

 

16.87

 

20.79

Price to earnings ratio, diluted

 

9.79

 

10.37

 

15.93

 

11.83

 

11.44

Price to book value per common share ratio

 

1.18

 

1.07

 

1.10

 

1.18

 

1.10

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

 

2.08

 

1.95

 

1.79

 

2.08

 

1.79

Weighted average common shares outstanding, basic

 

74,712,040

 

74,703,699

 

75,654,336

 

74,949,109

 

77,399,902

Weighted average common shares outstanding, diluted

 

74,713,972

 

74,705,054

 

75,667,759

 

74,953,398

 

77,417,801

Common shares outstanding at end of period

 

74,712,622

 

74,703,774

 

75,663,648

 

74,712,622

 

75,663,648


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Year Ended

    

12/31/22

    

09/30/22

    

12/31/21

 

12/31/22

12/31/21

 

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(audited)

Capital Ratios

 

Common equity Tier 1 capital ratio (5)

 

9.95

%  

9.96

%  

10.24

%

9.95

%  

10.24

%

Tier 1 capital ratio (5)

 

10.94

%  

10.98

%  

11.32

%

10.94

%  

11.32

%

Total capital ratio (5)

 

13.70

%  

13.80

%  

14.17

%

13.70

%  

14.17

%

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

 

9.42

%  

9.32

%  

9.01

%

9.42

%  

9.01

%

Common equity to total assets

 

10.78

%  

10.60

%  

12.68

%

10.78

%  

12.68

%

Tangible common equity to tangible assets (2)

 

6.43

%  

6.11

%  

8.20

%

6.43

%  

8.20

%

Financial Condition

 

  

 

  

 

  

  

 

  

Assets

$

20,461,138

$

19,950,231

$

20,064,796

$

20,461,138

$

20,064,796

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

 

14,449,142

 

13,918,720

 

13,195,843

 

14,449,142

 

13,195,843

Securities

 

3,709,761

 

3,640,722

 

4,186,475

 

3,709,761

 

4,186,475

Earning Assets

 

18,271,430

 

17,790,324

 

18,030,138

 

18,271,430

 

18,030,138

Goodwill

 

925,211

 

925,211

 

935,560

 

925,211

 

935,560

Amortizable intangibles, net

 

26,761

 

29,142

 

43,312

 

26,761

 

43,312

Deposits

 

15,931,677

 

16,546,216

 

16,611,068

 

15,931,677

 

16,611,068

Borrowings

 

1,708,700

 

669,558

 

506,594

 

1,708,700

 

506,594

Stockholders' equity

 

2,372,737

 

2,281,150

 

2,710,071

 

2,372,737

 

2,710,071

Tangible common equity (2)

 

1,254,408

 

1,160,440

 

1,564,842

 

1,254,408

 

1,564,842

Loans held for investment, net of deferred fees and costs

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

1,101,260

$

1,068,201

$

862,236

$

1,101,260

$

862,236

Commercial real estate - owner occupied

 

1,982,608

 

1,953,872

 

1,995,409

 

1,982,608

 

1,995,409

Commercial real estate - non-owner occupied

 

3,996,130

 

3,900,325

 

3,789,377

 

3,996,130

 

3,789,377

Multifamily real estate

 

802,923

 

774,970

 

778,626

 

802,923

 

778,626

Commercial & Industrial

 

2,983,349

 

2,709,047

 

2,542,243

 

2,983,349

 

2,542,243

Residential 1-4 Family - Commercial

 

538,063

 

542,612

 

607,337

 

538,063

 

607,337

Residential 1-4 Family - Consumer

 

940,275

 

891,353

 

816,524

 

940,275

 

816,524

Residential 1-4 Family - Revolving

 

585,184

 

588,452

 

560,796

 

585,184

 

560,796

Auto

 

592,976

 

561,277

 

461,052

 

592,976

 

461,052

Consumer

 

152,545

 

172,776

 

176,992

 

152,545

 

176,992

Other Commercial

 

773,829

 

755,835

 

605,251

 

773,829

 

605,251

Total loans held for investment

$

14,449,142

$

13,918,720

$

13,195,843

$

14,449,142

$

13,195,843

Deposits

 

  

 

  

 

  

 

  

 

  

Interest checking accounts

$

4,186,505

$

4,354,351

$

4,176,032

$

4,186,505

$

4,176,032

Money market accounts

 

3,922,536

 

3,962,473

 

4,249,858

 

3,922,536

 

4,249,858

Savings accounts

 

1,130,899

 

1,173,566

 

1,121,297

 

1,130,899

 

1,121,297

Time deposits of $250,000 and over

 

405,060

 

415,984

 

452,193

 

405,060

 

452,193

Other time deposits

1,403,438

1,348,904

1,404,364

1,403,438

1,404,364

Time deposits

 

1,808,498

 

1,764,888

 

1,856,557

 

1,808,498

 

1,856,557

Total interest-bearing deposits

$

11,048,438

$

11,255,278

$

11,403,744

$

11,048,438

$

11,403,744

Demand deposits

 

4,883,239

 

5,290,938

 

5,207,324

 

4,883,239

 

5,207,324

Total deposits

$

15,931,677

$

16,546,216

$

16,611,068

$

15,931,677

$

16,611,068

Averages

 

  

 

  

 

  

 

  

 

  

Assets

$

20,174,152

$

19,980,500

$

20,236,889

$

19,949,388

$

19,977,551

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

 

14,117,433

 

13,733,447

 

13,082,412

 

13,671,714

 

13,639,325

Loans held for sale

 

7,809

 

15,063

 

26,775

 

14,519

 

39,031

Securities

 

3,644,196

 

3,818,607

 

3,998,058

 

3,896,337

 

3,579,378

Earning assets

 

18,000,596

 

17,879,222

 

18,138,285

 

17,853,216

 

17,903,671

Deposits

 

16,611,749

 

16,488,224

 

16,861,219

 

16,451,718

 

16,541,286

Time deposits

 

1,764,596

 

1,745,224

 

1,941,420

 

1,735,983

 

2,201,039

Interest-bearing deposits

 

11,415,032

 

11,163,945

 

11,489,510

 

11,172,759

 

11,485,130

Borrowings

 

816,818

 

703,272

 

445,344

 

700,271

 

453,452

Interest-bearing liabilities

 

12,231,850

 

11,867,217

 

11,934,854

 

11,873,030

 

11,938,582

Stockholders' equity

 

2,321,208

 

2,436,999

 

2,715,610

 

2,465,049

 

2,725,330

Tangible common equity (2)

 

1,201,732

 

1,315,085

 

1,568,828

 

1,333,751

 

1,573,415


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Year Ended

    

12/31/22

    

09/30/22

    

12/31/21

 

12/31/22

12/31/21

 

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(audited)

Asset Quality

 

Allowance for Credit Losses (ACL)

 

  

 

  

 

  

  

 

  

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

$

108,009

$

104,184

$

101,798

$

99,787

$

160,540

Add: Recoveries

 

1,332

 

1,214

 

1,720

 

5,076

 

8,218

Less: Charge-offs

 

2,142

 

1,801

 

2,231

 

7,409

 

10,083

Add: Provision for loan losses

 

3,569

 

4,412

 

(1,500)

 

13,314

 

(58,888)

Ending balance, ALLL

$

110,768

$

108,009

$

99,787

$

110,768

$

99,787

Beginning balance, Reserve for unfunded commitment (RUC)

$

11,000

$

9,000

$

7,500

$

8,000

$

10,000

Add: Provision for unfunded commitments

2,675

2,000

500

5,675

(2,000)

Ending balance, RUC

$

13,675

$

11,000

$

8,000

$

13,675

$

8,000

Total ACL

$

124,443

$

119,009

$

107,787

$

124,443

$

107,787

ACL / total outstanding loans

0.86

%  

0.86

%  

0.82

%

0.86

%  

0.82

%

ACL / total adjusted loans(9)

0.86

%  

0.86

%  

0.83

%

0.86

%  

0.83

%

ALLL / total outstanding loans

 

0.77

%  

 

0.78

%  

 

0.76

%

 

0.77

%  

 

0.76

%

ALLL / total adjusted loans(9)

0.77

%  

0.78

%  

0.76

%  

0.77

%  

0.76

%  

Net charge-offs / total average loans

 

0.02

%  

 

0.02

%  

 

0.02

%

 

0.02

%  

 

0.01

%

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

0.02

%  

0.02

%  

0.02

%

0.02

%  

0.01

%

Provision for loan losses/ total average loans

 

0.10

%  

 

0.13

%  

 

(0.05)

%

 

0.10

%  

 

(0.43)

%

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

0.10

%  

0.13

%  

(0.05)

%

0.10

%  

(0.46)

%

Nonperforming Assets (6)

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

307

$

421

$

2,697

$

307

$

2,697

Commercial real estate - owner occupied

 

7,178

 

4,883

 

5,637

 

7,178

 

5,637

Commercial real estate - non-owner occupied

 

1,263

 

1,923

 

3,641

 

1,263

 

3,641

Multifamily real estate

113

113

Commercial & Industrial

 

1,884

 

2,289

 

1,647

 

1,884

 

1,647

Residential 1-4 Family - Commercial

 

1,904

 

1,962

 

2,285

 

1,904

 

2,285

Residential 1-4 Family - Consumer

 

10,846

 

11,121

 

11,397

 

10,846

 

11,397

Residential 1-4 Family - Revolving

 

3,453

 

3,583

 

3,406

 

3,453

 

3,406

Auto

 

200

 

318

 

223

 

200

 

223

Consumer

3

54

3

54

Nonaccrual loans

$

27,038

$

26,500

$

31,100

$

27,038

$

31,100

Foreclosed property

 

76

 

2,087

 

1,696

 

76

 

1,696

Total nonperforming assets (NPAs)

$

27,114

$

28,587

$

32,796

$

27,114

$

32,796

Construction and land development

$

100

$

115

$

299

$

100

$

299

Commercial real estate - owner occupied

 

2,167

 

3,517

 

1,257

 

2,167

 

1,257

Commercial real estate - non-owner occupied

607

621

433

607

433

Commercial & Industrial

 

459

 

526

 

1,897

 

459

 

1,897

Residential 1-4 Family - Commercial

 

275

 

308

 

990

 

275

 

990

Residential 1-4 Family - Consumer

 

1,955

 

680

 

3,013

 

1,955

 

3,013

Residential 1-4 Family - Revolving

 

1,384

 

1,255

 

882

 

1,384

 

882

Auto

 

344

 

148

 

241

 

344

 

241

Consumer

 

108

 

86

 

120

 

108

 

120

Other Commercial

91

95

91

Loans ≥ 90 days and still accruing

$

7,490

$

7,351

$

9,132

$

7,490

$

9,132

Total NPAs and loans ≥ 90 days

$

34,604

$

35,938

$

41,928

$

34,604

$

41,928

NPAs / total outstanding loans

0.19

%  

 

0.21

%  

 

0.25

%

 

0.19

%  

 

0.25

%

NPAs / total adjusted loans(9)

0.19

%  

0.21

%  

0.25

%  

0.19

%  

0.25

%  

NPAs / total assets

 

0.13

%  

 

0.14

%  

 

0.16

%

 

0.13

%  

 

0.16

%

ALLL / nonaccrual loans

 

409.68

%  

 

407.58

%  

 

320.86

%

 

409.68

%  

 

320.86

%

ALLL/ nonperforming assets

 

408.53

%  

 

377.83

%  

 

304.27

%

 

408.53

%  

 

304.27

%


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Year Ended

    

12/31/22

    

09/30/22

    

12/31/21

 

12/31/22

12/31/21

 

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(audited)

Past Due Detail (6)

 

Construction and land development

$

1,253

$

120

$

1,357

$

1,253

$

1,357

Commercial real estate - owner occupied

 

2,305

 

7,337

 

1,230

 

2,305

 

1,230

Commercial real estate - non-owner occupied

 

1,121

 

 

1,965

 

1,121

 

1,965

Multifamily real estate

 

1,229

 

 

84

 

1,229

 

84

Commercial & Industrial

 

824

 

796

 

1,161

 

824

 

1,161

Residential 1-4 Family - Commercial

 

1,231

 

1,410

 

1,844

 

1,231

 

1,844

Residential 1-4 Family - Consumer

 

5,951

 

1,123

 

3,368

 

5,951