• Atlantic Union Bankshares Reports First Quarter Results

    Source: Nasdaq GlobeNewswire / 21 Apr 2022 06:30:01   America/Chicago

    RICHMOND, Va., April 21, 2022 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $40.7 million and basic and diluted earnings per common share of $0.54 for the first quarter ended March 31, 2022. Adjusted operating earnings available to common shareholders(1) were $45.1 million, diluted operating earnings per common share(1) were $0.60, and pre-tax pre-provision adjusted operating earnings available to common shareholders(1) were $58.3 million for the first quarter ended March 31, 2022.

    “Atlantic Union Bankshares is off to a strong start in 2022 highlighted by double digit annualized loan growth in a traditionally slower quarter for the company,” said John C. Asbury, president and chief executive officer of Atlantic Union. “While we are mindful of the current economic and geopolitical uncertainties, we are encouraged by our competitive positioning, market dynamics and the economic strength in our footprint. This gives us confidence in our ability to achieve our top tier financial targets by the end of the year on a run-rate basis.”

    “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 Initiatives

    During the fourth quarter of 2021, the Company took certain actions to reduce expenses in light of the period’s prevailing and expected operating environment that included the closure of the Atlantic Union Bankshares operations center and consolidation of 16 branches, all of which were completed in March 2022. These actions resulted in restructuring expenses in the first quarter of 2022 of approximately $5.5 million, compared to $16.5 million in the quarter ended December 31, 2021. Restructuring expenses in the first quarter of 2022 primarily related to lease and other asset write downs, as well as severance costs.

    Share Repurchase Program

    On December 10, 2021, the Company’s Board of Directors authorized a share repurchase program (the “Repurchase Program”) to purchase up to $100 million of the Company’s common stock through December 9, 2022 in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and / or Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As part of the Repurchase Program, approximately 630,000 shares (or $25.0 million) were repurchased during the quarter ended March 31, 2022, and no shares were repurchased during the quarter ended December 31, 2021.

    NET INTEREST INCOME

    For the first quarter of 2022, net interest income was $130.9 million, a decrease from $138.3 million reported in the fourth quarter of 2021. Net interest income (FTE)(1) was $134.3 million in the first quarter of 2022, a decrease of approximately $7.3 million from the fourth quarter of 2021. The decreases in net interest income and net interest income (FTE) (1) were primarily driven by lower Paycheck Protection Program (“PPP”) loan related interest and fees, as well as lower prepayment activity, which drove lower accretion from acquisition accounting fair value adjustments. These decreases were partially offset by higher investment interest income due to growth in the average balance of the investment portfolio from the prior quarter, higher interest income driven by average loan growth, lower deposit costs, and lower borrowing costs primarily reflecting the $1 million in interest expense incurred in the fourth quarter of 2021 due to the acceleration of the unamortized discount associated with the Company’s redemption of its outstanding $150 million of 5% fixed-to-floating rate subordinated notes that were due to mature in 2026 (the “2026 Notes”). The first quarter net interest margin decreased 6 basis points to 2.97% from the previous quarter, and the net interest margin (FTE)(1) also decreased 6 basis points during the same period to 3.04%. The cost of funds decreased by 2 basis points compared to the fourth quarter of 2021, driven by lower costs on deposits, and lower borrowing costs 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 $2.0 million for the quarter ended March 31, 2022 representing a decline of $2.2 million from the prior quarter. The fourth quarter of 2021, the first quarter 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 December 31, 2021 $4,449 $(11) $(203) $4,235 
    For the quarter ended March 31, 2022  2,253  (10)  (203)  2,040 
    For the remaining nine months of 2022 (estimated)  3,599  (32)  (625)  2,942 
    For the years ending (estimated):            
    2023  3,670  (32)  (852)  2,786 
    2024  2,997  (4)  (877)  2,116 
    2025  2,347  (1)  (900)  1,446 
    2026  1,884  —   (926)  958 
    2027  1,408  —   (953)  455 
    Thereafter  6,892  —   (7,993)  (1,101)
    Total remaining acquisition accounting fair value adjustments at March 31, 2022 $22,797 $(69) $(13,126) $9,602 

    ASSET QUALITY

    Overview
    During the first quarter of 2022, nonperforming assets (“NPAs”) as a percentage of loans decreased 2 basis points from the prior quarter and remained low at 0.23% at March 31, 2022. Accruing past due loan levels as a percentage of total loans held for investment at March 31, 2022 decreased 1 basis point as compared to December 31, 2021, and were 3 basis points lower than at March 31, 2021. Net charge-offs were insignificant for the first quarter of 2022 and the fourth quarter of 2021. The allowance for credit losses (“ACL”) totaled $110.6 million at March 31, 2022, a $2.8 million increase from the prior quarter primarily due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the first quarter of 2022.

    Nonperforming Assets
    At March 31, 2022, NPAs totaled $30.7 million, a decrease of $2.1 million from December 31, 2021. NPAs as a percentage of total outstanding loans at March 31, 2022 were 0.23%, a decrease of 2 basis points from December 31, 2021.

    The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

         March 31,     December 31,     September 30,     June 30,     March 31, 
      2022 2021 2021 2021 2021
    Nonaccrual loans $29,032 $31,100 $35,472 $36,399 $41,866
    Foreclosed properties  1,696  1,696  1,696  1,696  2,344
    Total nonperforming assets $30,728 $32,796 $37,168 $38,095 $44,210

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

         March 31,     December 31,     September 30,     June 30,     March 31, 
      2022 2021
    		 2021
    		 2021
    		 2021
    Beginning Balance $31,100  $35,472  $36,399  $41,866  $42,448 
    Net customer payments  (4,132)  (5,068)  (4,719)  (9,307)  (4,133)
    Additions  2,087   1,294   4,177   4,162   3,821 
    Charge-offs  (23)  (598)  (385)  (183)  (270)
    Loans returning to accruing status  —   —   —   (153)  — 
    Transfers to foreclosed property  —   —   —   14   — 
    Ending Balance $29,032  $31,100  $35,472  $36,399  $41,866 

    Past Due Loans
    Past due loans still accruing interest totaled $29.6 million or 0.22% of total loans held for investment at March 31, 2022, compared to $29.9 million or 0.23% of total loans held for investment at December 31, 2021, and $36.0 million or 0.25% of total loans held for investment at March 31, 2021. Of the total past due loans still accruing interest, $8.2 million or 0.06% of total loans held for investment were loans past due 90 days or more at March 31, 2022, compared to $9.1 million or 0.07% of total loans held for investment at December 31, 2021, and $9.8 million or 0.07% of total loans held for investment at March 31, 2021.

    Net Charge-offs
    Net charge-offs were insignificant and less than 0.01% of total average loans on an annualized basis for the quarter ended March 31, 2022, compared to $511,000 or 0.02% for the fourth quarter of 2021, and $1.2 million or 0.03% for the first quarter of 2021.

    Provision for Credit Losses
    For the quarter ended March 31, 2022, the Company recorded a provision for credit losses of $2.8 million, compared to a negative provision for credit losses of $1.0 million in the previous quarter, and a negative provision for credit losses of $13.6 million recorded during the same quarter in 2021. The provision for credit losses for the first quarter of 2022 reflected a provision of $2.8 million for loan losses and no provision for unfunded commitments.

    Allowance for Credit Losses
    At March 31, 2022, the ACL was $110.6 million and included an allowance for loan and lease losses (“ALLL”) of $102.6 million and a reserve for unfunded commitments (“RUC”) of $8.0 million. The ACL at March 31, 2022 increased $2.8 million from December 31, 2021, primarily due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the first quarter of 2022.

    The ACL and ALLL as a percentage of total loans was 0.82% and 0.76%, respectively, at March 31, 2022, consistent with December 31, 2021.

    NONINTEREST INCOME

    Noninterest income declined $6.2 million to $30.2 million for the quarter ended March 31, 2022 from $36.4 million in the prior quarter, primarily due to a $5.1 million gain from the sale of Visa, Inc. Class B common stock recorded in the prior quarter, a decrease in unrealized gains on equity method investments of $1.4 million, a $589,000 decline in bank owned life insurance revenue due to death benefit proceeds received in the prior quarter, a decrease of $217,000 in interchange fees due to a decline in transaction volumes, a decrease in mortgage banking income of $213,000 due to a seasonal decline in mortgage origination volumes, and a $212,000 decline in service charges on deposit accounts. These noninterest category declines were partially offset by an increase in loan interest rate swap fee income of $2.4 million due to higher transaction volumes.

    NONINTEREST EXPENSE

    Noninterest expense decreased $14.6 million to $105.3 million for the quarter ended March 31, 2022 from $119.9 million in the prior quarter, primarily driven by a decrease in restructuring expenses, as the prior quarter reflected $16.5 million related to the closure of the Company’s operations center and the consolidation of 16 branches that was completed in March 2022, compared to $5.5 million of similar expenses this quarter. In addition, noninterest expenses declined in several expense categories from the prior quarter including a decrease in technology and data processing expenses of $747,000 primarily driven by a software contract termination cost incurred in the prior quarter, a reduction of $590,000 in professional services expenses associated with strategic projects, a $434,000 decrease in equipment expenses, and a decrease in marketing and advertising expenses of $382,000. Partially offsetting these expense reductions, salaries and benefits expense increased by $328,000 during the first quarter, as seasonal increases in payroll related taxes and 401(k) contribution expenses in the first quarter of 2022 were offset by a decrease in performance based variable incentive compensation and profit-sharing expenses.

    INCOME TAXES

    The effective tax rate for the three months ended March 31, 2022 was 17.5%, compared to 14.4% for the three months ended December 31, 2021, reflecting the impact of changes in the proportion of tax exempt income to pre-tax income.

    BALANCE SHEET

    At March 31, 2022, total assets were $19.8 billion, a decrease of $282.4 million or approximately 5.7% (annualized) from December 31, 2021, and a decrease of $72.2 million or approximately 0.4% from March 31, 2021. Total assets declined from the prior quarter due to a decrease in cash and cash equivalents of $406.2 million primarily related to the deployment of excess liquidity to fund loan growth of $263.5 million and deposit run-off of $126.8 million. In addition, the Company incurred a decrease in the investment securities portfolio of $159.5 million primarily due to a decline in the market value of the AFS securities portfolio.

    At March 31, 2022, loans held for investment (net of deferred fees and costs) totaled $13.5 billion, including $67.4 million in PPP loans, an increase of $263.5 million or 8.1% (annualized) from December 31, 2021, while average loans at March 31, 2022 increased $218.4 million or 6.8% (annualized) from the prior quarter. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at March 31, 2022 increased $346.4 million or 10.8% (annualized) from December 31, 2021, and average loans increased $403.5 million or 12.8% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $812.9 million or 5.7% from March 31, 2021, and quarterly average loans decreased $763.3 million or 5.4% from the same period in the prior year. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at March 31, 2022 increased $632.3 million or 5.0% from the same period in the prior year, and quarterly average loans during the first quarter of 2022 increased $443.0 million or 3.5% from the same period in the prior year.

    At March 31, 2022, total deposits were $16.5 billion, a decrease of $126.8 million or approximately 3.1% (annualized) from December 31, 2021, and average deposits decreased $346.8 million or 8.3% (annualized) from the prior quarter. Deposits at March 31, 2022 increased $186.2 million or 1.1% from March 31, 2021, and quarterly average deposits at March 31, 2022 increased $439.7 million or 2.7% from the same period in the prior year. The increase in deposits from the prior year was primarily due to additional liquidity of bank customers due to higher levels of government assistance programs since the start of the COVID-19 global pandemic (“COVID-19”) and increased savings. The decrease in deposits from the prior quarter is primarily attributable to maturing time deposits.

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

         March 31,     December 31,     March 31,  
      2022 2021 2021 
    Common equity Tier 1 capital ratio (2) 9.86%10.24%10.56%
    Tier 1 capital ratio (2) 10.91%11.32%11.70%
    Total capital ratio (2) 13.79%14.17%14.25%
    Leverage ratio (Tier 1 capital to average assets) (2) 9.08%9.01%9.18%
    Common equity to total assets 11.79%12.68%12.81%
    Tangible common equity to tangible assets (1) 7.21%8.20%8.24%


    For the quarter ended March 31, 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 primarily due to the unrealized losses on the AFS securities portfolio recorded in other comprehensive income due to market interest rate increases in the first quarter of 2022.

    During the first 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 fourth quarter of 2021 and the first quarter of 2021. During the first quarter of 2022, the Company also declared and paid cash dividends of $0.28 per common share, consistent with the fourth quarter of 2021, and an increase of $0.03, or approximately 12.0%, compared to the first quarter of 2021.

    On December 10, 2021, the Company’s Board of Directors authorized a Repurchase Program to purchase up to $100 million of the Company’s common stock through December 9, 2022 in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and / or Rule 10b-18 under the Exchange Act. The Repurchase Program followed a prior $125 million share repurchase authorization that was approved by the Company’s Board of Directors during the second quarter of 2021 and was fully utilized by September 30, 2021. During the quarter ended March 31, 2022, the Company repurchased an aggregate of approximately 630,000 shares (or $25.0 million), at an average price of $39.73. No shares were repurchased during the quarter ended December 31, 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 March 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.

    (*) Number and amount of PPP loans processed for forgiveness are rounded and approximate values.

    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; Dixon, Hubard, Feinour & Brown, Inc., which provides investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

    FIRST QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL

    The Company will hold a conference call and webcast for analysts on Thursday, April 21, 2022 at 9:00 a.m. Eastern Time during which management will review the first quarter 2022 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (866) 220-4170; international callers wishing to participate may do so by dialing (864) 663-5235. The conference ID number is 7067425. Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/9ct7u2eq.

    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 March 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) section of the 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 COVID-19 pandemic and statements that include, 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. 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,” 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 and the Company’s funding costs;
    • higher inflation and its impacts;
    • 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, including as a result of COVID-19;
    • the quality or composition of the loan or investment portfolios and changes therein;
    • demand for loan products and financial services in the Company’s market area;
    • 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 Bank’s lending area;
    • an insufficient ACL;
    • changes in accounting principles, including without limitation, relating to the CECL methodology;
    • 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;
    • 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 COVID-19, 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, including the impact of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, as amended by the Consolidated Appropriations Act, 2021, and other legislative and regulatory reactions to COVID-19;
    • potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to COVID-19, including, among other things, under the CARES Act, as amended by the CAA;
    • the effects of changes in federal, state or local tax laws and regulations;
    • monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
    • changes to applicable accounting principles and guidelines; and
    • other factors, many of which are beyond the control of the Company.

    Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections 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 SEC and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein 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 undue reliance should not be placed on such forward-looking statements. 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. 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
         03/31/22    12/31/21    03/31/21
    Results of Operations      
    Interest and dividend income $ 138,456 $147,456  $147,673 
    Interest expense   7,525  9,129   12,775 
    Net interest income   130,931  138,327   134,898 
    Provision for credit losses   2,800  (1,000)  (13,624)
    Net interest income after provision for credit losses   128,131  139,327   148,522 
    Noninterest income   30,153  36,417   30,985 
    Noninterest expenses   105,321  119,944   111,937 
    Income before income taxes   52,963  55,800   67,570 
    Income tax expense   9,273  8,021   11,381 
    Net income   43,690  47,779   56,189 
    Dividends on preferred stock   2,967  2,967   2,967 
    Net income available to common shareholders $ 40,723 $44,812  $53,222 
              
    Interest earned on earning assets (FTE) (1) $ 141,792 $150,684  $150,726 
    Net interest income (FTE) (1)   134,267  141,555   137,951 
    Total revenue (FTE) (1)   164,420  177,972   168,936 
    Pre-tax pre-provision adjusted operating earnings (8)   61,271  66,199   69,487 
              
    Key Ratios         
    Earnings per common share, diluted $0.54 $0.59  $0.67 
    Return on average assets (ROA)  0.89% 0.94%  1.16%
    Return on average equity (ROE)  6.66% 6.98%  8.38%
    Return on average tangible common equity (ROTCE) (2) (3)  11.53% 11.98%  14.58%
    Efficiency ratio  65.38% 68.64%  67.48%
    Net interest margin  2.97% 3.03%  3.09%
    Net interest margin (FTE) (1)  3.04% 3.10%  3.16%
    Yields on earning assets (FTE) (1)  3.22% 3.30%  3.46%
    Cost of interest-bearing liabilities  0.26% 0.30%  0.43%
    Cost of deposits  0.11% 0.12%  0.23%
    Cost of funds  0.18% 0.20%  0.30%
              
    Operating Measures (4)         
    Adjusted operating earnings $ 48,041 $56,784  $68,466 
    Adjusted operating earnings available to common shareholders   45,074  53,817   65,499 
    Adjusted operating earnings per common share, diluted $0.60 $0.71  $0.83 
    Adjusted operating ROA  0.98% 1.11%  1.41%
    Adjusted operating ROE  7.32% 8.30%  10.21%
    Adjusted operating ROTCE (2) (3)  12.69% 14.25%  17.77%
    Adjusted operating efficiency ratio (FTE) (1)(7)  58.86% 57.96%  54.83%
              
    Per Share Data         
    Earnings per common share, basic $0.54 $0.59  $0.67 
    Earnings per common share, diluted  0.54  0.59   0.67 
    Cash dividends paid per common share  0.28  0.28   0.25 
    Market value per share  36.69  37.29   38.36 
    Book value per common share  31.12  33.80   32.37 
    Tangible book value per common share (2)  18.10  20.79   19.78 
    Price to earnings ratio, diluted  16.75  15.93   14.12 
    Price to book value per common share ratio  1.18  1.10   1.19 
    Price to tangible book value per common share ratio (2)  2.03  1.79   1.94 
    Weighted average common shares outstanding, basic   75,544,644  75,654,336   78,863,468 
    Weighted average common shares outstanding, diluted   75,556,127  75,667,759   78,884,235 
    Common shares outstanding at end of period   75,335,956  75,663,648   79,006,331 


               
      As of & For Three Months Ended 
         03/31/22    12/31/21    03/31/21 
    Capital Ratios       
    Common equity Tier 1 capital ratio (5)  9.86%   10.24%   10.56%
    Tier 1 capital ratio (5)  10.91%   11.32%   11.70%
    Total capital ratio (5)  13.79%   14.17%   14.25%
    Leverage ratio (Tier 1 capital to average assets) (5)  9.08%   9.01%   9.18%
    Common equity to total assets  11.79%   12.68%   12.81%
    Tangible common equity to tangible assets (2)  7.21%   8.20%   8.24%
               
    Financial Condition             
    Assets $ 19,782,430 $20,064,796 $19,854,612 
    Loans held for investment (net of deferred fees and costs)   13,459,349  13,195,843  14,272,280 
    Securities   4,027,185  4,186,475  3,317,442 
    Earning Assets   17,731,089  18,030,138  17,889,174 
    Goodwill   935,560  935,560  935,560 
    Amortizable intangibles, net   40,273  43,312  53,471 
    Deposits   16,484,223  16,611,068  16,298,017 
    Borrowings   504,032  506,594  563,600 
    Stockholders' equity   2,498,335  2,710,071  2,709,732 
    Tangible common equity (2)   1,356,145  1,564,842  1,554,344 
               
    Loans held for investment, net of deferred fees and costs             
    Construction and land development $ 969,059 $862,236 $884,303 
    Commercial real estate - owner occupied   2,007,671  1,995,409  2,083,155 
    Commercial real estate - non-owner occupied   3,875,681  3,789,377  3,671,471 
    Multifamily real estate   723,940  778,626  842,906 
    Commercial & Industrial   2,540,680  2,542,243  3,599,884 
    Residential 1-4 Family - Commercial   569,801  607,337  658,051 
    Residential 1-4 Family - Consumer   824,163  816,524  816,916 
    Residential 1-4 Family - Revolving   568,403  560,796  563,786 
    Auto   499,855  461,052  406,349 
    Consumer   171,875  176,992  215,711 
    Other Commercial   708,221  605,251  529,748 
    Total loans held for investment $ 13,459,349 $13,195,843 $14,272,280 
               
    Deposits             
    NOW accounts $ 4,121,257 $4,176,032 $3,612,135 
    Money market accounts   4,151,155  4,249,858  4,244,092 
    Savings accounts   1,166,922  1,121,297  991,418 
    Time deposits of $250,000 and over   365,796  452,193  619,040 
    Other time deposits   1,309,030  1,404,364  1,764,933 
    Time deposits   1,674,826  1,856,557  2,383,973 
    Total interest-bearing deposits $ 11,114,160 $11,403,744 $11,231,618 
    Demand deposits   5,370,063  5,207,324  5,066,399 
    Total deposits $ 16,484,223 $16,611,068 $16,298,017 
               
    Averages             
    Assets $ 19,920,368 $20,236,889 $19,686,854 
    Loans held for investment (net of deferred fees and costs)   13,300,789  13,082,412  14,064,123 
    Loans held for sale   14,636  26,775  63,022 
    Securities   4,198,582  3,998,058  3,209,377 
    Earning assets   17,885,018  18,138,285  17,692,095 
    Deposits   16,514,375  16,861,219  16,074,650 
    Time deposits   1,766,657  1,941,420  2,490,432 
    Interest-bearing deposits   11,286,277  11,489,510  11,491,129 
    Borrowings   511,722  445,344  574,678 
    Interest-bearing liabilities   11,797,999  11,934,854  12,065,807 
    Stockholders’ equity   2,660,984  2,715,610  2,719,941 
    Tangible common equity (2)   1,517,325  1,568,828  1,562,575 


              
      As of & For Three Months Ended
         03/31/22    12/31/21    03/31/21
    Asset Quality      
    Allowance for Credit Losses (ACL)         
    Beginning balance, Allowance for loan and lease losses (ALLL) $ 99,787 $101,798  $160,540 
    Add: Recoveries   1,513  1,720   2,469 
    Less: Charge-offs   1,509  2,231   3,641 
    Add: Provision for loan losses   2,800  (1,500)  (16,457)
    Ending balance, ALLL $ 102,591 $99,787  $142,911 
              
    Beginning balance, Reserve for unfunded commitment (RUC) $ 8,000 $7,500  $10,000 
    Add: Provision for unfunded commitments   —  500   2,833 
    Ending balance, RUC $ 8,000 $8,000  $12,833 
    Total ACL $ 110,591 $107,787  $155,744 
              
    ACL / total outstanding loans  0.82%   0.82%  1.09%
    ACL / total adjusted loans(9)  0.83%   0.83%  1.22%
    ALLL / total outstanding loans  0.76%   0.76%  1.00%
    ALLL / total adjusted loans(9)  0.77%   0.76%  1.12%
    Net charge-offs / total average loans  0.00%   0.02%  0.03%
    Net charge-offs / total adjusted average loans(9)  0.00%   0.02%  0.04%
    Provision for loan losses/ total average loans  0.09%   (0.05)%  (0.47)%
    Provision for loan losses/ total adjusted average loans(9)  0.09%   (0.05)%  (0.52)%
     `        
    Nonperforming Assets (6)          
    Construction and land development $ 869 $2,697  $2,637 
    Commercial real estate - owner occupied   4,865  5,637   7,016 
    Commercial real estate - non-owner occupied   3,287  3,641   1,958 
    Multifamily real estate   —  113   — 
    Commercial & Industrial   1,975  1,647   2,023 
    Residential 1-4 Family - Commercial   2,239  2,285   9,190 
    Residential 1-4 Family - Consumer   12,039  11,397   14,770 
    Residential 1-4 Family - Revolving   3,371  3,406   3,853 
    Auto   333  223   303 
    Consumer   54  54   116 
    Nonaccrual loans $ 29,032 $31,100  $41,866 
    Foreclosed property   1,696  1,696   2,344 
    Total nonperforming assets (NPAs) $ 30,728 $32,796  $44,210 
    Construction and land development $ 1 $299  $189 
    Commercial real estate - owner occupied   2,396  1,257   3,180 
    Commercial real estate - non-owner occupied   1,735  433   817 
    Commercial & Industrial   763  1,897   654 
    Residential 1-4 Family - Commercial   878  990   576 
    Residential 1-4 Family - Consumer   1,147  3,013   3,041 
    Residential 1-4 Family - Revolving   1,065  882   917 
    Auto   192  241   154 
    Consumer   70  120   248 
    Loans ≥ 90 days and still accruing $ 8,247 $9,132  $9,776 
    Total NPAs and loans ≥ 90 days $ 38,975 $41,928  $53,986 
    NPAs / total outstanding loans   0.23%   0.25%  0.31%
    NPAs / total adjusted loans(9)   0.23%   0.25%  0.35%
    NPAs / total assets   0.16%   0.16%  0.22%
    ALLL / nonaccrual loans  353.37%   320.86%  341.35%
    ALLL/ nonperforming assets  333.87%   304.27%  323.25%


               
      As of & For Three Months Ended 
         03/31/22    12/31/21    03/31/21 
    Past Due Detail (6)       
    Construction and land development $ 170 $1,357 $865 
    Commercial real estate - owner occupied   5,081  1,230  3,426 
    Commercial real estate - non-owner occupied   79  1,965  1,055 
    Multifamily real estate   124  84  187 
    Commercial & Industrial   1,382  1,161  3,086 
    Residential 1-4 Family - Commercial   827  1,844  1,803 
    Residential 1-4 Family - Consumer   5,890  3,368  6,831 
    Residential 1-4 Family - Revolving   1,157  1,493  1,397 
    Auto   1,508  1,866  1,035 
    Consumer   467  689  595 
    Other Commercial   1,270  37  407 
    Loans 30-59 days past due $ 17,955 $15,094 $20,687 
    Construction and land development $ — $— $473 
    Commercial real estate - owner occupied   —  152  514 
    Commercial real estate - non-owner occupied   223  127  1,413 
    Multifamily real estate   —  —  81 
    Commercial & Industrial   745  1,438  613 
    Residential 1-4 Family - Commercial   251  272  798 
    Residential 1-4 Family - Consumer   1,018  2,925  808 
    Residential 1-4 Family - Revolving   651  363  284 
    Auto   183  249  165 
    Consumer   201  186  314 
    Other Commercial   95  —  88 
    Loans 60-89 days past due $ 3,367 $5,712 $5,551 
               
    Past Due and still accruing $ 29,569 $29,938 $36,014 
    Past Due and still accruing / total loans   0.22%   0.23% 0.25%
               
    Troubled Debt Restructurings           
    Performing $ 12,157 $10,313 $13,670 
    Nonperforming   7,552  7,642  6,058 
    Total troubled debt restructurings $ 19,709 $17,955 $19,728 
               
    Alternative Performance Measures (non-GAAP)           
    Net interest income (FTE) (1)           
    Net interest income (GAAP) $ 130,931 $138,327 $134,898 
    FTE adjustment   3,336  3,228  3,053 
    Net interest income (FTE) (non-GAAP) $ 134,267 $141,555 $137,951 
    Noninterest income (GAAP)   30,153  36,417  30,985 
    Total revenue (FTE) (non-GAAP) $ 164,420 $177,972 $168,936 
               
    Average earning assets $ 17,885,018 $18,138,285 $17,692,095 
    Net interest margin  2.97%   3.03% 3.09%
    Net interest margin (FTE)  3.04%   3.10% 3.16%
               
    Tangible Assets (2)           
    Ending assets (GAAP) $ 19,782,430 $20,064,796 $19,854,612 
    Less: Ending goodwill   935,560  935,560  935,560 
    Less: Ending amortizable intangibles   40,273  43,312  53,471 
    Ending tangible assets (non-GAAP) $ 18,806,597 $19,085,924 $18,865,581 
               
    Tangible Common Equity (2)           
    Ending equity (GAAP) $ 2,498,335 $2,710,071 $2,709,732 
    Less: Ending goodwill   935,560  935,560  935,560 
    Less: Ending amortizable intangibles   40,273  43,312  53,471 
    Less: Perpetual preferred stock   166,357  166,357  166,357 
    Ending tangible common equity (non-GAAP) $ 1,356,145 $1,564,842 $1,554,344 
               
    Average equity (GAAP) $ 2,660,984 $2,715,610 $2,719,941 
    Less: Average goodwill   935,560  935,560  935,560 
    Less: Average amortizable intangibles   41,743  44,866  55,450 
    Less: Average perpetual preferred stock   166,356  166,356  166,356 
    Average tangible common equity (non-GAAP) $ 1,517,325 $1,568,828 $1,562,575 
               
    ROTCE (2)(3)          
    Net income available to common shareholders (GAAP) $ 40,723 $44,812 $53,222 
    Plus: Amortization of intangibles, tax effected   2,401  2,548  2,947 
    Net income available to common shareholders before amortization of intangibles (non-GAAP) $ 43,124 $47,360 $56,169 
               
    Return on average tangible common equity (ROTCE)  11.53%   11.98% 14.58%


              
      As of & For Three Months Ended
       03/31/22   12/31/21  03/31/21
    Operating Measures (4)         
    Net income (GAAP) $ 43,690 $47,779  $56,189 
    Plus: Net loss related to balance sheet repositioning, net of tax   —  —   11,609 
    Less: Gain on sale of securities, net of tax   —  —   62 
    Less: Gain on Visa, Inc. Class B common stock, net of tax   —  4,058   — 
    Plus: Branch closing and facility consolidation costs, net of tax   4,351  13,063   730 
    Adjusted operating earnings (non-GAAP)   48,041  56,784   68,466 
    Less: Dividends on preferred stock   2,967  2,967   2,967 
    Adjusted operating earnings available to common shareholders (non-GAAP) $ 45,074 $53,817  $65,499 
              
    Noninterest expense (GAAP) $ 105,321 $119,944  $111,937 
    Less: Amortization of intangible assets   3,039  3,225   3,730 
    Less: Losses related to balance sheet repositioning   —  —   14,695 
    Less: Branch closing and facility consolidation costs   5,508  16,536   924 
    Adjusted operating noninterest expense (non-GAAP) $ 96,774 $100,183  $92,588 
              
    Noninterest income (GAAP) $ 30,153 $36,417  $30,985 
    Less: Gain on sale of securities   —  —   78 
    Less: Gain on Visa, Inc. Class B common stock   —  5,137   — 
    Adjusted operating noninterest income (non-GAAP) $ 30,153 $31,280  $30,907 
              
    Net interest income (FTE) (non-GAAP) (1) $ 134,267 $141,555  $137,951 
    Adjusted operating noninterest income (non-GAAP)   30,153  31,280   30,907 
    Total adjusted revenue (FTE) (non-GAAP) (1) $ 164,420 $172,835  $168,858 
              
    Efficiency ratio  65.38%   68.64%  67.48%
    Adjusted operating efficiency ratio (FTE) (1)(7)  58.86%   57.96%  54.83%
              
    Operating ROTCE (2)(3)(4)          
    Adjusted operating earnings available to common shareholders (non-GAAP) $ 45,074 $53,817  $65,499 
    Plus: Amortization of intangibles, tax effected   2,401  2,548   2,947 
    Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) $ 47,475 $56,365  $68,446 
              
    Average tangible common equity (non-GAAP) $ 1,517,325 $1,568,828  $1,562,575 
    Adjusted operating return on average tangible common equity (non-GAAP)  12.69%   14.25%  17.77%
              
    Pre-tax pre-provision adjusted operating earnings (8)         
    Net income (GAAP) $ 43,690 $47,779  $56,189 
    Plus: Provision for credit losses   2,800  (1,000)  (13,624)
    Plus: Income tax expense   9,273  8,021   11,381 
    Plus: Net loss related to balance sheet repositioning   —  —   14,695 
    Less: Gain on sale of securities   —   —   78 
    Less: Gain on Visa, Inc. Class B common stock   —  5,137   — 
    Plus: Branch closing and facility consolidation costs   5,508  16,536   924 
    Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 61,271 $66,199  $69,487 
    Less: Dividends on preferred stock   2,967  2,967   2,967 
    Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) $ 58,304 $63,232  $66,520 
              
    Weighted average common shares outstanding, diluted   75,556,127  75,667,759   78,884,235 
    Pre-tax pre-provision earnings per common share, diluted $ 0.77 $0.84  $0.84 
              
    Adjusted Loans (9)         
    Loans held for investment (net of deferred fees and costs) (GAAP) $ 13,459,349 $13,195,843  $14,272,280 
    Less: PPP adjustments (net of deferred fees and costs)   67,444  150,363   1,512,714 
    Total adjusted loans (non-GAAP) $ 13,391,905 $13,045,480  $12,759,566 
              
    Average loans held for investment (net of deferred fees and costs) (GAAP) $ 13,300,789 $13,082,412  $14,064,123 
    Less: Average PPP adjustments (net of deferred fees and costs)   103,041  288,204   1,309,326 
    Total adjusted average loans (non-GAAP) $ 13,197,748 $12,794,208  $12,754,797 


               
      As of & For Three Months Ended 
       03/31/22   12/31/21  03/31/21  
    Mortgage Origination Held for Sale Volume (10)          
    Refinance Volume $ 33,201 $46,575 $118,918 
    Purchase Volume   58,295  71,969  67,957 
    Total Mortgage loan originations held for sale $ 91,496 $118,544 $186,875 
    % of originations held for sale that are refinances  36.3%   39.3% 63.6%
               
    Wealth           
    Assets under management (AUM) $ 6,519,974 $6,741,022 $6,056,475 
               
    Other Data           
    End of period full-time employees   1,853  1,876  1,869 
    Number of full-service branches   114  130  129 
    Number of automatic transaction machines (ATMs)   132  148  153 

    (1)   These are non-GAAP financial measures. Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE) and adjusted operating efficiency ratio (FTE), respectively, 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.
    (3)   These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and 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 the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, as well as branch closing and facility consolidation costs (principally composed of real estate, leases and other assets write downs, gains or losses on related real estate sales, as well as severance associated with branch closing and corporate expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
    (5)   All ratios at March 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.
    (6)   These balances reflect the impact of the CARES Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.
    (7)   The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), as well as branch closing and facility consolidation costs. 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 combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
    (8)   This is a non-GAAP financial measure. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, as well as branch closing and facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
    (9)   These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic growth. The Company also believes that the related non-GAAP financial measures of past due loans still accruing interest as a percentage of total loans held for investment (net of deferred fees and costs), excluding PPP, are useful to investors as loans originated under the PPP carry a Small Business Administration (“SBA”) guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.
    (10)   The period ended March 31, 2021 has been restated to adjust for certain mortgage loans held for investment that were previously included.


    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data)

     March 31, December 31, March 31,
     2022 2021 2021
    ASSETS (unaudited)  (audited)  (unaudited)
    Cash and cash equivalents:        
    Cash and due from banks$ 178,225  $180,963 $155,972
    Interest-bearing deposits in other banks  213,140   618,714  244,593
    Federal funds sold  4,938   2,824  315
    Total cash and cash equivalents  396,303   802,501  400,880
    Securities available for sale, at fair value  3,193,280   3,481,650  2,697,043
    Securities held to maturity, at carrying value  756,872   628,000  543,575
    Restricted stock, at cost  77,033   76,825  76,824
    Loans held for sale, at fair value  21,227   20,861  49,082
    Loans held for investment, net of deferred fees and costs  13,459,349   13,195,843  14,272,280
    Less: allowance for loan and lease losses  102,591   99,787  142,911
    Total loans held for investment, net  13,356,758   13,096,056  14,129,369
    Premises and equipment, net  130,998   134,808  161,478
    Goodwill  935,560   935,560  935,560
    Amortizable intangibles, net  40,273   43,312  53,471
    Bank owned life insurance  434,012   431,517  328,627
    Other assets  440,114   413,706  478,703
    Total assets$ 19,782,430  $20,064,796 $19,854,612
    LIABILITIES        
    Noninterest-bearing demand deposits$ 5,370,063  $5,207,324 $5,066,399
    Interest-bearing deposits  11,114,160   11,403,744  11,231,618
    Total deposits  16,484,223   16,611,068  16,298,017
    Securities sold under agreements to repurchase  115,027   117,870  105,522
    Other short-term borrowings  —   —  168,000
    Long-term borrowings  389,005   388,724  290,078
    Other liabilities  295,840   237,063  283,263
    Total liabilities  17,284,095   17,354,725  17,144,880
    Commitments and contingencies        
    STOCKHOLDERS’ EQUITY        
    Preferred stock, $10.00 par value  173   173  173
    Common stock, $1.33 par value  99,651   100,101  104,493
    Additional paid-in capital  1,786,640   1,807,368  1,918,991
    Retained earnings  803,354   783,794  649,574
    Accumulated other comprehensive income (loss)  (191,483)  18,635  36,501
    Total stockholders’ equity  2,498,335   2,710,071  2,709,732
    Total liabilities and stockholders’ equity$ 19,782,430  $20,064,796 $19,854,612
             
    Common shares outstanding  75,335,956   75,663,648  79,006,331
    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
     March 31, December 31, March 31,
     2022    2021
    		    2021
    Interest and dividend income:        
    Interest and fees on loans$ 114,200 $125,195  $128,006 
    Interest on deposits in other banks  131  401   77 
    Interest and dividends on securities:        
    Taxable  13,666  11,757   10,353 
    Nontaxable  10,459  10,103   9,237 
    Total interest and dividend income  138,456  147,456   147,673 
    Interest expense:        
    Interest on deposits  4,483  4,915   9,128 
    Interest on short-term borrowings  21  17   48 
    Interest on long-term borrowings  3,021  4,197   3,599 
    Total interest expense  7,525  9,129   12,775 
    Net interest income  130,931  138,327   134,898 
    Provision for credit losses  2,800  (1,000)  (13,624)
    Net interest income after provision for credit losses  128,131  139,327   148,522 
    Noninterest income:        
    Service charges on deposit accounts  7,596  7,808   5,509 
    Other service charges, commissions and fees  1,655  1,625   1,701 
    Interchange fees  1,810  2,027   1,847 
    Fiduciary and asset management fees  7,255  7,239   6,475 
    Mortgage banking income  3,117  3,330   8,255 
    Gains on securities transactions  —  —   78 
    Bank owned life insurance income  2,697  3,286   2,265 
    Loan-related interest rate swap fees  3,860  1,443   1,754 
    Other operating income  2,163  9,659   3,101 
    Total noninterest income  30,153  36,417   30,985 
    Noninterest expenses:        
    Salaries and benefits  58,298  57,970   52,660 
    Occupancy expenses  6,883  7,013   7,315 
    Furniture and equipment expenses  3,597  4,031   3,968 
    Technology and data processing  7,796  8,543   6,904 
    Professional services  4,090  4,680   4,960 
    Marketing and advertising expense  2,163  2,545   2,044 
    FDIC assessment premiums and other insurance  2,485  2,684   2,307 
    Other taxes  4,499  4,436   4,436 
    Loan-related expenses  1,776  1,715   1,877 
    Amortization of intangible assets  3,039  3,225   3,730 
    Loss on debt extinguishment  —  —   14,695 
    Other expenses  10,695  23,102   7,041 
    Total noninterest expenses  105,321  119,944   111,937 
    Income before income taxes  52,963  55,800   67,570 
    Income tax expense  9,273  8,021   11,381 
    Net income$ 43,690 $47,779  $56,189 
    Dividends on preferred stock  2,967  2,967   2,967 
    Net income available to common shareholders$ 40,723 $44,812  $53,222 
             
    Basic earnings per common share$0.54 $0.59  $0.67 
    Diluted earnings per common share$0.54 $0.59  $0.67 


    AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED)

     For the Quarter Ended
     March 31, 2022 December 31, 2021
     Average
    Balance    		    Interest
    Income /
    Expense (1)    		    Yield /
    Rate (1)(2)    		    Average
    Balance    		    Interest
    Income /
    Expense (1)    		    Yield /
    Rate (1)(2)
    Assets:               
    Securities:               
    Taxable$ 2,617,156  $ 13,666 2.12% $2,492,935  $11,757 1.87%
    Tax-exempt  1,581,426    13,240 3.40%  1,505,123   12,788 3.37%
    Total securities  4,198,582    26,906 2.60%  3,998,058   24,545 2.44%
    Loans, net (3) (4)  13,300,789    114,602 3.49%  13,082,412   125,505 3.81%
    Other earning assets  385,647    284 0.30%  1,057,815   634 0.24%
    Total earning assets$ 17,885,018  $ 141,792 3.22% $18,138,285  $150,684 3.30%
    Allowance for loan and lease losses  (100,342)       (99,940)     
    Total non-earning assets  2,135,692        2,198,544      
    Total assets$ 19,920,368       $20,236,889      
                    
    Liabilities and Stockholders’ Equity:               
    Interest-bearing deposits:               
    Transaction and money market accounts$ 8,376,766  $ 1,324 0.06% $8,447,579  $1,208 0.06%
    Regular savings  1,142,854    55 0.02%  1,100,511   56 0.02%
    Time deposits (5)  1,766,657    3,104 0.71%  1,941,420   3,651 0.75%
    Total interest-bearing deposits   11,286,277    4,483 0.16%  11,489,510   4,915 0.17%
    Other borrowings (6)  511,722    3,042 2.41%  445,344   4,214 3.75%
    Total interest-bearing liabilities$ 11,797,999  $ 7,525 0.26% $11,934,854  $9,129 0.30%
                    
    Noninterest-bearing liabilities:               
    Demand deposits  5,228,098        5,371,709      
    Other liabilities  233,287        214,716      
    Total liabilities$ 17,259,384       $17,521,279      
    Stockholders' equity  2,660,984        2,715,610      
    Total liabilities and stockholders’ equity$ 19,920,368       $20,236,889      
    Net interest income   $ 134,267      $141,555  
                    
    Interest rate spread      2.96%       3.00%
    Cost of funds      0.18%       0.20%
    Net interest margin      3.04%       3.10%


    (1)   Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.
    (2)   Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.
    (3)   Nonaccrual loans are included in average loans outstanding.
    (4)   Interest income on loans includes $2.3 million and $4.4 million for the three months ended March 31, 2022 and December 31, 2021, respectively, in accretion of the fair market value adjustments related to acquisitions.
    (5)   Interest expense on time deposits includes amortization of $10,000 and $11,000 for the three months ended
    March 31, 2022 and December 31, 2021, respectively, for the fair market value adjustments related to acquisitions.
    (6)   Interest expense on borrowings includes $203,000 for both the three months ended March 31, 2022 and December 31, 2021, in amortization of the fair market value adjustments related to acquisitions.

    Contact:Robert M. Gorman - (804) 523-7828
     Executive Vice President / Chief Financial Officer

     


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