• Atlantic Union Bankshares Reports Third Quarter Financial Results

    Source: Nasdaq GlobeNewswire / 20 Oct 2022 06:30:01   America/Chicago

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

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

    “Operating under the mantra of soundness, profitability and growth – in that order of priority - Atlantic Union remains committed to generating sustainable, profitable growth and building long term value for our shareholders.”

    NET INTEREST INCOME

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

    The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $1.1 million for the quarter ended September 30, 2022, representing a decrease of $1.6 million from the prior quarter. The first, second, and third quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

                 
                
      Loan Deposit  Borrowings   
         Accretion    Amortization    Amortization    Total
    For the quarter ended March 31, 2022 $2,253 $(10) $(203) $2,040 
    For the quarter ended June 30, 2022  2,879  (11)  (207)  2,661 
    For the quarter ended September 30, 2022  1,326  (11)  (209)  1,106 
    For the remaining three months of 2022 (estimated)  945  (12)  (208)  725 
    For the years ending (estimated):            
    2023  3,338  (31)  (852)  2,455 
    2024  2,714  (4)  (877)  1,833 
    2025  2,123  (1)  (900)  1,222 
    2026  1,707  —   (926)  781 
    2027  1,306  —   (953)  353 
    Thereafter  6,469  —   (7,994)  (1,525)
    Total remaining acquisition accounting fair value adjustments at September 30, 2022 $18,602 $(48) $(12,710) $5,844 

    ASSET QUALITY

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

    Nonperforming Assets
    At September 30, 2022, NPAs totaled $28.6 million, a decrease of $2.5 million from June 30, 2022. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

                    
         September 30,     June 30,     March 31,     December 31,     September 30, 
      2022 2022 2022 2021 2021
    Nonaccrual loans $26,500 $29,070 $29,032 $31,100 $35,472
    Foreclosed properties  2,087  2,065  1,696  1,696  1,696
    Total nonperforming assets $28,587 $31,135 $30,728 $32,796 $37,168

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

                    
         September 30,     June 30,     March 31,     December 31,     September 30, 
      2022  2022  2022  2021  2021 
    Beginning Balance $29,070  $29,032  $31,100  $35,472  $36,399 
    Net customer payments  (3,725)  (2,472)  (4,132)  (5,068)  (4,719)
    Additions  1,302   3,203   2,087   1,294   4,177 
    Charge-offs  (125)  (311)  (23)  (598)  (385)
    Transfers to foreclosed property  (22)  (382)  —   —   — 
    Ending Balance $26,500  $29,070  $29,032  $31,100  $35,472 

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

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

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

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

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

    NONINTEREST INCOME

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

    NONINTEREST EXPENSE

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

    INCOME TAXES

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

    BALANCE SHEET

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

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

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

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

            
         September 30,     June 30,     September 30,  
      2022 2022 2021 
    Common equity Tier 1 capital ratio (2) 9.96%  9.96%  10.37%
    Tier 1 capital ratio (2) 10.98%  11.00%  11.49%
    Total capital ratio (2) 13.80%  13.86%  13.78%
    Leverage ratio (Tier 1 capital to average assets) (2) 9.32%  9.26%  8.97%
    Common equity to total assets 10.60%  11.32%  12.68%
    Tangible common equity to tangible assets (1) 6.11%  6.78%  8.16%

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

    During the third quarter of 2022, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the second quarter of 2022 and the third quarter of 2021. During the third quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, an increase of $0.02 or approximately 7.1% from the second quarter of 2022 and the third quarter of 2021.

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

    (2) All ratios at September 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

    ABOUT ATLANTIC UNION BANKSHARES CORPORATION

    Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

    THIRD QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL

    The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Thursday, October 20, 2022 during which management will review the financial results for the three and nine months ended September 30, 2022 and provide an update on recent activities.

    The listen-only webcast and the accompanying slides can be accessed at:
    https://edge.media-server.com/mmc/p/st4hi3qy.

    For analysts who wish to participate in the call, please register at the following URL:
    https://register.vevent.com/register/BI0d0b7ad4bc21407885cc5e244e5d623f. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

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

    In reporting the results as of and for the periods ended September 30, 2022, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

    FORWARD-LOOKING STATEMENTS

    Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotes, statements regarding the Company’s outlook on future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, statements that include, projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, or otherwise that are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to the effects of or changes in:

    • market interest rates and the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolio;
    • inflation and its impacts on economic growth and customer and client behavior;
    • general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
    • monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
    • the quality or composition of the Company’s loan or investment portfolios and changes therein;
    • demand for loan products and financial services in the Company’s market areas;
    • the Company’s ability to manage its growth or implement its growth strategy;
    • the effectiveness of expense reduction plans;
    • the introduction of new lines of business or new products and services;
    • the Company’s ability to recruit and retain key employees;
    • real estate values in the Company’s lending area;
    • an insufficient ACL;
    • changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;
    • volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;
    • the Company’s liquidity and capital positions;
    • concentrations of loans secured by real estate, particularly commercial real estate;
    • the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
    • the Company’s ability to compete in the market for financial services and increased competition from fintech companies;
    • technological risks and developments, and cyber threats, attacks, or events;
    • operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;
    • the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
    • the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;
    • the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
    • performance by the Company’s counterparties or vendors;
    • deposit flows;
    • the availability of financing and the terms thereof;
    • the level of prepayments on loans and mortgage-backed securities;
    • legislative or regulatory changes and requirements;
    • potential claims, damages, and fines related to litigation or government actions;
    • the effects of changes in federal, state or local tax laws and regulations;
    • any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
    • other factors, many of which are beyond the control of the Company.

    Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, all forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in the press release, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
         09/30/22    06/30/22    09/30/21 09/30/22 09/30/21 
    Results of Operations           
    Interest and dividend income $ 171,156 $148,755 $146,379  $ 458,367 $444,904  
    Interest expense   20,441  9,988  8,891    37,954  31,970  
    Net interest income   150,715  138,767  137,488    420,413  412,934  
    Provision for credit losses   6,412  3,559  (18,850)   12,771  (59,888) 
    Net interest income after provision for credit losses   144,303  135,208  156,338    407,642  472,822  
    Noninterest income   25,584  38,286  29,938    94,023  89,388  
    Noninterest expenses   99,923  98,768  95,343    304,012  299,251  
    Income before income taxes   69,964  74,726  90,933    197,653  262,959  
    Income tax expense   11,894  12,500  16,368    33,667  46,821  
    Net income   58,070  62,226  74,565    163,986  216,138  
    Dividends on preferred stock   2,967  2,967  2,967    8,901  8,901  
    Net income available to common shareholders $ 55,103 $59,259 $71,598  $ 155,085 $207,237  
                     
    Interest earned on earning assets (FTE) (1) $ 174,998 $152,332 $149,543  $ 469,122 $454,265  
    Net interest income (FTE) (1)   154,557  142,344  140,652    431,168  422,295  
    Total revenue (FTE) (1)   180,141  180,630  170,590    525,191  511,683  
    Pre-PPP total adjusted revenue (FTE) (1) (10)   179,687  170,204  159,408    511,325  474,790  
    Pre-tax pre-provision adjusted operating earnings (8)   76,376  69,205  72,074    206,852  218,581  
    Pre-PPP pre-tax pre-provision adjusted operating earnings (8) (10)   75,922  67,859  60,901    202,066  181,775  
                     
    Key Ratios                
    Earnings per common share, diluted $0.74 $0.79 $0.94  $2.07 $2.66  
    Return on average assets (ROA)  1.15%   1.27%   1.47 % 1.10%   1.45 %
    Return on average equity (ROE)  9.45%   10.21%   10.88 % 8.72%   10.59 %
    Return on average tangible common equity (ROTCE) (2) (3)  17.21%   18.93%   18.79 % 15.69%   18.31 %
    Efficiency ratio  56.68%   55.78%   56.95 % 59.10%   59.57 %
    Efficiency ratio (FTE) (1)  55.47%   54.68%   55.89 % 57.89%   58.48 %
    Net interest margin  3.34%   3.15%   3.05 % 3.16%   3.10 %
    Net interest margin (FTE) (1)  3.43%   3.24%   3.12 % 3.24%   3.17 %
    Yields on earning assets (FTE) (1)  3.88%   3.46%   3.31 % 3.52%   3.41 %
    Cost of interest-bearing liabilities  0.68%   0.35%   0.30 % 0.43%   0.36 %
    Cost of deposits  0.37%   0.15%   0.14 % 0.21%   0.18 %
    Cost of funds  0.45%   0.22%   0.19 % 0.28%   0.24 %
                     
    Operating Measures (4)                
    Adjusted operating earnings $ 58,070 $54,244 $74,558  $ 160,355 $228,391  
    Adjusted operating earnings available to common shareholders   55,103  51,277  71,591    151,454  219,490  
    Adjusted operating earnings per common share, diluted $0.74 $0.69 $0.94  $2.02 $2.81  
    Adjusted operating ROA  1.15%   1.10%   1.47 % 1.08%   1.54 %
    Adjusted operating ROE  9.45%   8.90%   10.88 % 8.53%   11.19 %
    Adjusted operating ROTCE (2) (3)  17.21%   16.47%   18.79 % 15.34%   19.35 %
    Adjusted operating efficiency ratio (FTE) (1)(7)  54.09%   55.88%   53.91 % 56.20%   53.36 %
                     
    Per Share Data                
    Earnings per common share, basic $0.74 $0.79 $0.94  $2.07 $2.66  
    Earnings per common share, diluted  0.74  0.79  0.94   2.07  2.66  
    Cash dividends paid per common share  0.30  0.28  0.28   0.86  0.81  
    Market value per share  30.38  33.92  36.85   30.38  36.85  
    Book value per common share  28.46  29.95  33.60   28.46  33.60  
    Tangible book value per common share (2)  15.61  17.07  20.55   15.61  20.55  
    Price to earnings ratio, diluted  10.37  10.68  9.88   10.99  10.36  
    Price to book value per common share ratio  1.07  1.13  1.10   1.07  1.10  
    Price to tangible book value per common share ratio (2)  1.95  1.99  1.79   1.95  1.79  
    Weighted average common shares outstanding, basic   74,703,699  74,847,899  76,309,355    75,029,000  77,988,151  
    Weighted average common shares outstanding, diluted   74,705,054  74,849,871  76,322,736    75,034,084  78,007,543  
    Common shares outstanding at end of period   74,703,774  74,688,314  75,645,031    74,703,774  75,645,031  

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
         09/30/22    06/30/22    09/30/21 09/30/22 09/30/21 
    Capital Ratios           
    Common equity Tier 1 capital ratio (5)  9.96%   9.96%   10.37% 9.96%   10.37%
    Tier 1 capital ratio (5)  10.98%   11.00%   11.49% 10.98%   11.49%
    Total capital ratio (5)  13.80%   13.86%   13.78% 13.80%   13.78%
    Leverage ratio (Tier 1 capital to average assets) (5)  9.32%   9.26%   8.97% 9.32%   8.97%
    Common equity to total assets  10.60%   11.32%   12.68% 10.60%   12.68%
    Tangible common equity to tangible assets (2)  6.11%   6.78%   8.16% 6.11%   8.16%
                     
    Financial Condition                     
    Assets $ 19,950,231 $19,661,799 $19,935,657 $ 19,950,231 $19,935,657 
    Loans held for investment (net of deferred fees and costs)   13,918,720  13,655,408  13,139,586   13,918,720  13,139,586 
    Securities   3,640,722  3,820,078  3,807,723   3,640,722  3,807,723 
    Earning Assets   17,790,324  17,578,979  17,795,784   17,790,324  17,795,784 
    Goodwill   925,211  925,211  935,560   925,211  935,560 
    Amortizable intangibles, net   29,142  31,621  46,537   29,142  46,537 
    Deposits   16,546,216  16,128,635  16,622,160   16,546,216  16,622,160 
    Borrowings   669,558  797,948  385,765   669,558  385,765 
    Stockholders' equity   2,281,150  2,391,476  2,694,439   2,281,150  2,694,439 
    Tangible common equity (2)   1,160,440  1,268,287  1,545,985   1,160,440  1,545,985 
                     
    Loans held for investment, net of deferred fees and costs                     
    Construction and land development $ 1,068,201 $988,379 $877,351 $ 1,068,201 $877,351 
    Commercial real estate - owner occupied   1,953,872  1,965,702  2,027,299   1,953,872  2,027,299 
    Commercial real estate - non-owner occupied   3,900,325  3,860,819  3,730,720   3,900,325  3,730,720 
    Multifamily real estate   774,970  762,502  776,287   774,970  776,287 
    Commercial & Industrial   2,709,047  2,595,891  2,580,190   2,709,047  2,580,190 
    Residential 1-4 Family - Commercial   542,612  553,771  624,347   542,612  624,347 
    Residential 1-4 Family - Consumer   891,353  865,174  822,971   891,353  822,971 
    Residential 1-4 Family - Revolving   588,452  583,073  557,803   588,452  557,803 
    Auto   561,277  525,301  425,436   561,277  425,436 
    Consumer   172,776  180,045  182,039   172,776  182,039 
    Other Commercial   755,835  774,751  535,143   755,835  535,143 
    Total loans held for investment $ 13,918,720 $13,655,408 $13,139,586 $ 13,918,720 $13,139,586 
                     
    Deposits                     
    Interest checking accounts $ 4,354,351 $3,943,303 $4,016,505 $ 4,354,351 $4,016,505 
    Money market accounts   3,962,473  3,956,050  4,152,986   3,962,473  4,152,986 
    Savings accounts   1,173,566  1,165,577  1,079,735   1,173,566  1,079,735 
    Time deposits of $250,000 and over   415,984  360,158  546,199   415,984  546,199 
    Other time deposits   1,348,904  1,342,009  1,497,897   1,348,904  1,497,897 
    Time deposits   1,764,888  1,702,167  2,044,096   1,764,888  2,044,096 
    Total interest-bearing deposits $ 11,255,278 $10,767,097 $11,293,322 $ 11,255,278 $11,293,322 
    Demand deposits   5,290,938  5,361,538  5,328,838   5,290,938  5,328,838 
    Total deposits $ 16,546,216 $16,128,635 $16,622,160 $ 16,546,216 $16,622,160 
                     
    Averages                     
    Assets $ 19,980,500 $19,719,402 $20,056,570 $ 19,873,644 $19,890,155 
    Loans held for investment (net of deferred fees and costs)   13,733,447  13,525,529  13,451,674   13,521,507  13,827,002 
    Loans held for sale   15,063  20,634  30,035   16,779  43,162 
    Securities   3,818,607  3,930,912  3,679,977   3,981,308  3,438,285 
    Earning assets   17,879,222  17,646,470  17,910,389   17,803,550  17,824,607 
    Deposits   16,488,224  16,191,056  16,718,144   16,397,790  16,433,470 
    Time deposits   1,745,224  1,667,378  2,109,131   1,726,341  2,288,530 
    Interest-bearing deposits   11,163,945  10,824,465  11,512,825   11,091,115  11,483,654 
    Borrowings   703,272  765,886  395,984   660,995  456,184 
    Interest-bearing liabilities   11,867,217  11,590,351  11,908,809   11,752,110  11,939,838 
    Stockholders' equity   2,436,999  2,445,045  2,718,032   2,513,522  2,728,605 
    Tangible common equity (2)   1,315,085  1,304,536  1,567,937   1,378,240  1,574,961 

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
         09/30/22    06/30/22    09/30/21 09/30/22 09/30/21 
    Asset Quality           
    Allowance for Credit Losses (ACL)                     
    Beginning balance, Allowance for loan and lease losses (ALLL) $ 104,184 $102,591 $118,261  $ 99,787 $160,540  
    Add: Recoveries   1,214  1,018  2,153    3,745  6,498  
    Less: Charge-offs   1,801  1,957  2,266    5,267  7,852  
    Add: Provision for loan losses   4,412  2,532  (16,350)   9,744  (57,388) 
    Ending balance, ALLL $ 108,009 $104,184 $101,798  $ 108,009 $101,798  
                     
    Beginning balance, Reserve for unfunded commitment (RUC) $ 9,000 $8,000 $10,000  $ 8,000 $10,000  
    Add: Provision for unfunded commitments   2,000  1,000  (2,500)   3,000  (2,500) 
    Ending balance, RUC $ 11,000 $9,000 $7,500  $ 11,000 $7,500  
    Total ACL $ 119,009 $113,184 $109,298  $ 119,009 $109,298  
                     
    ACL / total outstanding loans  0.86%   0.83%   0.83 % 0.86%   0.83 %
    ACL / total adjusted loans(9)  0.86%   0.83%   0.86 % 0.86%   0.86 %
    ALLL / total outstanding loans  0.78%   0.76%   0.77 % 0.78%   0.77 %
    ALLL / total adjusted loans(9)  0.78%   0.76%   0.80 %   0.78%   0.80 %  
    Net charge-offs / total average loans  0.02%   0.03%   0.00 % 0.02%   0.01 %
    Net charge-offs / total adjusted average loans(9)  0.02%   0.03%   0.00 % 0.02%   0.01 %
    Provision for loan losses/ total average loans  0.13%   0.08%   (0.48)% 0.10%   (0.55)%
    Provision for loan losses/ total adjusted average loans(9)  0.13%   0.08%   (0.51)% 0.10%   (0.60)%
                     
    Nonperforming Assets (6)                     
    Construction and land development $ 421 $581 $2,710  $ 421 $2,710  
    Commercial real estate - owner occupied   4,883  4,996  7,786    4,883  7,786  
    Commercial real estate - non-owner occupied   1,923  3,301  4,174    1,923  4,174  
    Multifamily real estate   —  —  113    —  113  
    Commercial & Industrial   2,289  2,728  2,062    2,289  2,062  
    Residential 1-4 Family - Commercial   1,962  2,031  2,445    1,962  2,445  
    Residential 1-4 Family - Consumer   11,121  12,084  12,150    11,121  12,150  
    Residential 1-4 Family - Revolving   3,583  3,069  3,723    3,583  3,723  
    Auto   318  279  255    318  255  
    Consumer   —  1  54    —  54  
    Nonaccrual loans $ 26,500 $29,070 $35,472  $ 26,500 $35,472  
    Foreclosed property   2,087  2,065  1,696    2,087  1,696  
    Total nonperforming assets (NPAs) $ 28,587 $31,135 $37,168  $ 28,587 $37,168  
    Construction and land development $ 115 $1 $304  $ 115 $304  
    Commercial real estate - owner occupied   3,517  792  1,886    3,517  1,886  
    Commercial real estate - non-owner occupied   621  642  1,175    621  1,175  
    Commercial & Industrial   526  322  1,256    526  1,256  
    Residential 1-4 Family - Commercial   308  184  1,091    308  1,091  
    Residential 1-4 Family - Consumer   680  1,112  2,462    680  2,462  
    Residential 1-4 Family - Revolving   1,255  997  2,474    1,255  2,474  
    Auto   148  134  209    148  209  
    Consumer   86  79  173    86  173  
    Other Commercial   95  329  —    95  —  
    Loans ≥ 90 days and still accruing $ 7,351 $4,592 $11,030  $ 7,351 $11,030  
    Total NPAs and loans ≥ 90 days $ 35,938 $35,727 $48,198  $ 35,938 $48,198  
    NPAs / total outstanding loans   0.21%   0.23%   0.28 %  0.21%   0.28 %
    NPAs / total adjusted loans(9)   0.21%   0.23%   0.29 %    0.21%   0.29 %  
    NPAs / total assets   0.14%   0.16%   0.19 %  0.14%   0.19 %
    ALLL / nonaccrual loans  407.58%   358.39%   286.98 % 407.58%   286.98 %
    ALLL/ nonperforming assets  377.83%   334.62%   273.89 % 377.83%   273.89 %
                          

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
         09/30/22    06/30/22    09/30/21 09/30/22 09/30/21 
    Past Due Detail (6)           
    Construction and land development $ 120 $645 $744 $ 120 $744 
    Commercial real estate - owner occupied   7,337  1,374  735   7,337  735 
    Commercial real estate - non-owner occupied   —  511  1,302   —  1,302 
    Commercial & Industrial   796  2,581  11,089   796  11,089 
    Residential 1-4 Family - Commercial   1,410  1,944  807   1,410  807 
    Residential 1-4 Family - Consumer   1,123  594  406   1,123  406 
    Residential 1-4 Family - Revolving   1,115  1,368  1,092   1,115  1,092 
    Auto   1,876  1,841  1,548   1,876  1,548 
    Consumer   409  361  790   409  790 
    Other Commercial   —  11  631   —  631 
    Loans 30-59 days past due $ 14,186 $11,230 $19,144 $ 14,186 $19,144 
    Construction and land development $ 107 $— $58 $ 107 $58 
    Commercial real estate - owner occupied   763  807  61   763  61 
    Commercial real estate - non-owner occupied   457  —  570   457  570 
    Commercial & Industrial   3,128  546  3,328   3,128  3,328 
    Residential 1-4 Family - Commercial   97  474  698   97  698 
    Residential 1-4 Family - Consumer   1,449  1,646  2,188   1,449  2,188 
    Residential 1-4 Family - Revolving   1,081  731  587   1,081  587 
    Auto   257  213  202   257  202 
    Consumer   101  210  317   101  317 
    Other Commercial   —  —  600   —  600 
    Loans 60-89 days past due $ 7,440 $4,627 $8,609 $ 7,440 $8,609 
                     
    Past Due and still accruing $ 28,977 $20,449 $38,783 $ 28,977 $38,783 
    Past Due and still accruing / total loans   0.21%   0.15%   0.30%    0.21%   0.30%  
                     
    Troubled Debt Restructurings                     
    Performing $ 10,333 $10,662 $11,335 $ 10,333 $11,335 
    Nonperforming   5,298  7,298  7,365   5,298  7,365 
    Total troubled debt restructurings $ 15,631 $17,960 $18,700 $ 15,631 $18,700 
                     
    Alternative Performance Measures (non-GAAP)                     
    Net interest income (FTE) (1)                     
    Net interest income (GAAP) $ 150,715 $138,767 $137,488 $ 420,413 $412,934 
    FTE adjustment   3,842  3,577  3,164   10,755  9,361 
    Net interest income (FTE) (non-GAAP) $ 154,557 $142,344 $140,652 $ 431,168 $422,295 
    Noninterest income (GAAP)   25,584  38,286  29,938   94,023  89,388 
    Total revenue (FTE) (non-GAAP) $ 180,141 $180,630 $170,590 $ 525,191 $511,683 
                     
    Average earning assets $ 17,879,222 $17,646,470 $17,910,389 $ 17,803,550 $17,824,607 
    Net interest margin  3.34%   3.15%   3.05% 3.16%   3.10%
    Net interest margin (FTE)  3.43%   3.24%   3.12% 3.24%   3.17%
                     
    Tangible Assets (2)                     
    Ending assets (GAAP) $ 19,950,231 $19,661,799 $19,935,657 $ 19,950,231 $19,935,657 
    Less: Ending goodwill   925,211  925,211  935,560   925,211  935,560 
    Less: Ending amortizable intangibles   29,142  31,621  46,537   29,142  46,537 
    Ending tangible assets (non-GAAP) $ 18,995,878 $18,704,967 $18,953,560 $ 18,995,878 $18,953,560 
                     
    Tangible Common Equity (2)                     
    Ending equity (GAAP) $ 2,281,150 $2,391,476 $2,694,439 $ 2,281,150 $2,694,439 
    Less: Ending goodwill   925,211  925,211  935,560   925,211  935,560 
    Less: Ending amortizable intangibles   29,142  31,621  46,537   29,142  46,537 
    Less: Perpetual preferred stock   166,357  166,357  166,357   166,357  166,357 
    Ending tangible common equity (non-GAAP) $ 1,160,440 $1,268,287 $1,545,985 $ 1,160,440 $1,545,985 
                     
    Average equity (GAAP) $ 2,436,999 $2,445,045 $2,718,032 $ 2,513,522 $2,728,605 
    Less: Average goodwill   925,211  935,446  935,560   932,035  935,560 
    Less: Average amortizable intangibles   30,347  38,707  48,179   36,891  51,728 
    Less: Average perpetual preferred stock   166,356  166,356  166,356   166,356  166,356 
    Average tangible common equity (non-GAAP) $ 1,315,085 $1,304,536 $1,567,937 $ 1,378,240 $1,574,961 
                     
    ROTCE (2)(3)                
    Net income available to common shareholders (GAAP) $ 55,103 $59,259 $71,598 $ 155,085 $207,237 
    Plus: Amortization of intangibles, tax effected   1,959  2,303  2,671   6,663  8,436 
    Net income available to common shareholders before amortization of intangibles (non-GAAP) $ 57,062 $61,562 $74,269 $ 161,748 $215,673 
                     
    Return on average tangible common equity (ROTCE)  17.21%   18.93%   18.79%   15.69%   18.31%  

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
       09/30/22   06/30/22  09/30/21  09/30/22  09/30/21 
    Operating Measures (4)                     
    Net income (GAAP) $ 58,070 $62,226  $74,565  $ 163,986  $216,138  
    Plus: Net loss related to balance sheet repositioning, net of tax   —  —   —    —   11,609  
    Less: (Loss) gain on sale of securities, net of tax   —  (2)  7    (2)  69  
    Less: Gain on sale of DHFB, net of tax   —  7,984   —    7,984   —  
    Plus: Branch closing and facility consolidation costs, net of tax   —  —   —    4,351   713  
    Adjusted operating earnings (non-GAAP)   58,070  54,244   74,558    160,355   228,391  
    Less: Dividends on preferred stock   2,967  2,967   2,967    8,901   8,901  
    Adjusted operating earnings available to common shareholders (non-GAAP) $ 55,103 $51,277  $71,591  $ 151,454  $219,490  
                     
    Noninterest expense (GAAP) $ 99,923 $98,768  $95,343  $ 304,012  $299,251  
    Less: Amortization of intangible assets   2,480  2,915   3,381    8,434   10,679  
    Less: Losses related to balance sheet repositioning   —  —   —    —   14,695  
    Less: Branch closing and facility consolidation costs   —  —   —    5,508   902  
    Adjusted operating noninterest expense (non-GAAP) $ 97,443 $95,853  $91,962  $ 290,070  $272,975  
                     
    Noninterest income (GAAP) $ 25,584 $38,286  $29,938  $ 94,023  $89,388  
    Less: (Loss) gain on sale of securities   —  (2)  9    (2)  87  
    Less: Gain on sale of DHFB   —  9,082   —    9,082   —  
    Adjusted operating noninterest income (non-GAAP) $ 25,584 $29,206  $29,929  $ 84,943  $89,301  
                     
    Net interest income (FTE) (non-GAAP) (1) $ 154,557 $142,344  $140,652  $ 431,168  $422,295  
    Adjusted operating noninterest income (non-GAAP)   25,584  29,206   29,929    84,943   89,301  
    Total adjusted revenue (FTE) (non-GAAP) (1)   180,141  171,550   170,581    516,111   511,596  
    Less: PPP accretion interest income and fees   454  1,346   11,173    4,786   36,806  
    Pre-PPP total adjusted revenue (FTE) (non-GAAP) (1) (10) $ 179,687 $170,204  $159,408  $ 511,325  $474,790  
                     
    Efficiency ratio  56.68%   55.78 %   56.95 % 59.10 %   59.57 %
    Efficiency ratio (FTE) (1)  55.47%   54.68 %   55.89 % 57.89 %   58.48 %
    Adjusted operating efficiency ratio (FTE) (1)(7)  54.09%   55.88 %   53.91 % 56.20 %   53.36 %
                     
    Operating ROA & ROE (4)                
    Adjusted operating earnings (non-GAAP) $ 58,070 $54,244  $74,558  $ 160,355  $228,391  
                     
    Average assets (GAAP) $ 19,980,500 $19,719,402  $20,056,570  $ 19,873,644  $19,890,155  
    Return on average assets (ROA) (GAAP)  1.15%   1.27 %   1.47 %   1.10 %   1.45 %
    Adjusted operating return on average assets (ROA) (non-GAAP)  1.15%   1.10 %   1.47 %   1.08 %   1.54 %
                     
    Average equity (GAAP) $ 2,436,999 $2,445,045  $2,718,032  $ 2,513,522  $2,728,605  
    Return on average equity (ROE) (GAAP)  9.45%   10.21 %   10.88 %   8.72 %   10.59 %
    Adjusted operating return on average equity (ROE) (non-GAAP)  9.45%   8.90 %   10.88 %   8.53 %   11.19 %
                     
    Operating ROTCE (2)(3)(4)                     
    Adjusted operating earnings available to common shareholders (non-GAAP) $ 55,103 $51,277  $71,591  $ 151,454  $219,490  
    Plus: Amortization of intangibles, tax effected   1,959  2,303   2,671    6,663   8,436  
    Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) $ 57,062 $53,580  $74,262  $ 158,117  $227,926  
                     
    Average tangible common equity (non-GAAP) $ 1,315,085 $1,304,536  $1,567,937  $ 1,378,240  $1,574,961  
    Adjusted operating return on average tangible common equity (non-GAAP)  17.21%   16.47 %   18.79 % 15.34 %   19.35 %
                     
    Pre-tax pre-provision adjusted operating earnings (8)                
    Net income (GAAP) $ 58,070 $62,226  $74,565  $ 163,986  $216,138  
    Plus: Provision for credit losses   6,412  3,559   (18,850)   12,771   (59,888) 
    Plus: Income tax expense   11,894  12,500   16,368    33,667   46,821  
    Plus: Net loss related to balance sheet repositioning   —  —   —    —   14,695  
    Less: (Loss) gain on sale of securities   —  (2)  9    (2)  87  
    Less: Gain on sale of DHFB   —  9,082   —    9,082   —  
    Plus: Branch closing and facility consolidation costs   —  —   —    5,508   902  
    Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 76,376 $69,205  $72,074  $ 206,852  $218,581  
    Less: Dividends on preferred stock   2,967  2,967   2,967    8,901   8,901  
    Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) $ 73,409 $66,238  $69,107  $ 197,951  $209,680  
                     
    Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 76,376 $69,205  $72,074  $ 206,852  $218,581  
    Less: PPP accretion interest income and fees   454  1,346   11,173    4,786   36,806  
    Pre-PPP pre-tax pre-provision adjusted operating earnings (non-GAAP) (10) $ 75,922 $67,859  $60,901  $ 202,066  $181,775  
                     
    Weighted average common shares outstanding, diluted   74,705,054  74,849,871   76,322,736    75,034,084   78,007,543  
    Pre-tax pre-provision earnings per common share, diluted $ 0.98 $0.88  $0.91  $ 2.64  $2.69  

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    KEY FINANCIAL RESULTS (UNAUDITED)
    (Dollars in thousands, except share data)

                     
      As of & For Three Months Ended As of & For Nine Months Ended 
       09/30/22   06/30/22  09/30/21  09/30/22  09/30/21 
    Adjusted Loans (9)                
    Loans held for investment (net of deferred fees and costs) (GAAP) $ 13,918,720 $13,655,408 $13,139,586 $ 13,918,720 $13,139,586 
    Less: PPP adjustments (net of deferred fees and costs)   12,146  21,749  466,609   12,146  466,609 
    Total adjusted loans (non-GAAP) $ 13,906,574 $13,633,659 $12,672,977 $ 13,906,574 $12,672,977 
                     
    Average loans held for investment (net of deferred fees and costs) (GAAP) $ 13,733,447 $13,525,529 $13,451,674 $ 13,521,507 $13,827,002 
    Less: Average PPP adjustments (net of deferred fees and costs)   14,280  43,391  687,259   53,246  1,059,130 
    Total adjusted average loans (non-GAAP) $ 13,719,167 $13,482,138 $12,764,415 $ 13,468,261 $12,767,872 
                     
    Mortgage Origination Held for Sale Volume                      
    Refinance Volume $ 5,637 $14,916 $49,154 $ 53,753 $241,401 
    Purchase Volume   66,360  84,551  93,819   209,206  250,523 
    Total Mortgage loan originations held for sale $ 71,997 $99,467 $142,973 $ 262,959 $491,924 
    % of originations held for sale that are refinances  7.8%   15.0%   34.4% 20.4%   49.1%
                     
    Wealth                     
    Assets under management ("AUM") $ 4,065,059 $4,415,537 $6,377,518 $ 4,065,059 $6,377,518 
                     
    Other Data                     
    End of period full-time employees   1,890  1,856  1,918   1,890  1,918 
    Number of full-service branches   114  114  130   114  130 
    Number of automatic transaction machines ("ATMs")   131  131  149   131  149 

    (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), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.
    (2)   These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.
    (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 losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs (principally composed of real estate, leases and other assets write downs, 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 September 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.
    (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, gain on the sale of DHFB, losses related to balance sheet repositioning (principally composed of 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)   These are non-GAAP financial measures. 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, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, 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)   These are non-GAAP financial measures. The Company believes excluding PPP accretion interest income and fees from operating earnings is useful to investors as it provides more clarity on the Company’s non-PPP related income.


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

             
     September 30, December 31, September 30,
     2022     2021    2021
    ASSETS (unaudited)  (audited)  (unaudited)
    Cash and cash equivalents:        
    Cash and due from banks$ 177,969  $180,963 $255,648
    Interest-bearing deposits in other banks  211,785   618,714  807,225
    Federal funds sold  1,188   2,824  377
    Total cash and cash equivalents  390,942   802,501  1,063,250
    Securities available for sale, at fair value  2,717,323   3,481,650  3,195,176
    Securities held to maturity, at carrying value  841,349   628,000  535,722
    Restricted stock, at cost  82,050   76,825  76,825
    Loans held for sale, at fair value  12,889   20,861  35,417
    Loans held for investment, net of deferred fees and costs  13,918,720   13,195,843  13,139,586
    Less: allowance for loan and lease losses  108,009   99,787  101,798
    Total loans held for investment, net  13,810,711   13,096,056  13,037,788
    Premises and equipment, net  126,374   134,808  159,588
    Goodwill  925,211   935,560  935,560
    Amortizable intangibles, net  29,142   43,312  46,537
    Bank owned life insurance  437,988   431,517  430,341
    Other assets  576,252   413,706  419,453
    Total assets$ 19,950,231  $20,064,796 $19,935,657
    LIABILITIES        
    Noninterest-bearing demand deposits$ 5,290,938  $5,207,324 $5,328,838
    Interest-bearing deposits  11,255,278   11,403,744  11,293,322
    Total deposits  16,546,216   16,611,068  16,622,160
    Securities sold under agreements to repurchase  146,182   117,870  95,181
    Other short-term borrowings  133,800   —  —
    Long-term borrowings  389,576   388,724  290,584
    Other liabilities  453,307   237,063  233,293
    Total liabilities  17,669,081   17,354,725  17,241,218
    Commitments and contingencies        
    STOCKHOLDERS' EQUITY        
    Preferred stock, $10.00 par value  173   173  173
    Common stock, $1.33 par value  98,845   100,101  100,062
    Additional paid-in capital  1,769,858   1,807,368  1,804,617
    Retained earnings  874,393   783,794  760,164
    Accumulated other comprehensive income (loss)  (462,119)  18,635  29,423
    Total stockholders' equity  2,281,150   2,710,071  2,694,439
    Total liabilities and stockholders' equity$ 19,950,231  $20,064,796 $19,935,657
             
    Common shares outstanding  74,703,774   75,663,648  75,645,031
    Common shares authorized  200,000,000   200,000,000  200,000,000
    Preferred shares outstanding  17,250   17,250  17,250
    Preferred shares authorized  500,000   500,000  500,000

    ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
    (Dollars in thousands, except share data)

                   
     Three Months Ended Nine Months Ended
     September 30, June 30, September 30, September 30, September 30,
     2022    2022    2021     2022    2021 
    Interest and dividend income:              
    Interest and fees on loans$ 144,673 $123,266 $124,999  $ 382,139 $383,575 
    Interest on deposits in other banks  941  157  291    1,229  454 
    Interest and dividends on securities:              
    Taxable  14,750  14,695  11,230    43,110  32,102 
    Nontaxable  10,792  10,637  9,859    31,889  28,773 
    Total interest and dividend income  171,156  148,755  146,379    458,367  444,904 
    Interest expense:              
    Interest on deposits  15,386  6,097  5,837    25,966  22,203 
    Interest on short-term borrowings  1,229  555  22    1,805  91 
    Interest on long-term borrowings  3,826  3,336  3,032    10,183  9,676 
    Total interest expense  20,441  9,988  8,891    37,954  31,970 
    Net interest income  150,715  138,767  137,488    420,413  412,934 
    Provision for credit losses  6,412  3,559  (18,850)   12,771  (59,888)
    Net interest income after provision for credit losses  144,303  135,208  156,338    407,642  472,822 
    Noninterest income:              
    Service charges on deposit accounts  6,784  8,040  7,198    22,421  19,314 
    Other service charges, commissions and fees  1,770  1,709  1,534    5,134  4,970 
    Interchange fees  2,461  2,268  2,203    6,539  6,252 
    Fiduciary and asset management fees  4,134  6,939  7,029    18,329  20,323 
    Mortgage banking income  1,390  2,200  4,818    6,707  17,692 
    Bank owned life insurance income  3,445  2,716  2,727    8,858  8,202 
    Loan-related interest rate swap fees  2,050  2,600  1,102    8,510  4,176 
    Other operating income  3,550  11,814  3,327    17,525  8,459 
    Total noninterest income  25,584  38,286  29,938    94,023  89,388 
    Noninterest expenses:              
    Salaries and benefits  56,600  55,305  53,534    170,203  156,959 
    Occupancy expenses  6,408  6,395  7,251    19,685  21,705 
    Furniture and equipment expenses  3,673  3,590  4,040    10,860  11,919 
    Technology and data processing  8,273  7,862  7,534    23,930  21,657 
    Professional services  3,504  4,680  3,792    12,274  13,161 
    Marketing and advertising expense  2,343  2,502  2,548    7,008  7,330 
    FDIC assessment premiums and other insurance  3,094  2,765  2,172    8,344  6,798 
    Franchise and other taxes  4,507  4,500  4,432    13,506  13,303 
    Loan-related expenses  1,575  1,867  1,503    5,218  5,289 
    Amortization of intangible assets  2,480  2,915  3,381    8,434  10,679 
    Loss on debt extinguishment  —  —  —    —  14,695 
    Other expenses  7,466  6,387  5,156    24,550  15,756 
    Total noninterest expenses  99,923  98,768  95,343    304,012  299,251 
    Income before income taxes  69,964  74,726  90,933    197,653  262,959 
    Income tax expense  11,894  12,500  16,368    33,667  46,821 
    Net income$ 58,070 $62,226 $74,565    163,986  216,138 
    Dividends on preferred stock  2,967  2,967  2,967    8,901  8,901 
    Net income available to common shareholders$ 55,103 $59,259 $71,598  $ 155,085 $207,237 
                   
    Basic earnings per common share$0.74 $0.79 $0.94  $2.07 $2.66 
    Diluted earnings per common share$0.74 $0.79 $0.94  $2.07 $2.66 

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

                    
     For the Quarter Ended
     September 30, 2022 June 30, 2022
     Average
    Balance    		    Interest
    Income /
    Expense (1)    		    Yield /
    Rate (1)(2)    		    Average
    Balance    		    Interest
    Income /
    Expense (1)    		    Yield /
    Rate (1)(2)
    Assets:               
    Securities:               
    Taxable$ 2,193,279  $ 14,750 2.67% $2,322,024  $14,695 2.54%
    Tax-exempt  1,625,328    13,661 3.33%  1,608,888   13,465 3.36%
    Total securities  3,818,607    28,411 2.95%  3,930,912   28,160 2.87%
    Loans, net (3)  13,733,447    145,433 4.20%  13,525,529   123,764 3.67%
    Other earning assets  327,168    1,154 1.40%  190,029   408 0.86%
    Total earning assets$ 17,879,222  $ 174,998 3.88% $17,646,470  $152,332 3.46%
    Allowance for loan and lease losses  (104,746)       (103,211)     
    Total non-earning assets  2,206,024        2,176,143      
    Total assets$ 19,980,500       $19,719,402      
                    
    Liabilities and Stockholders' Equity:               
    Interest-bearing deposits:               
    Transaction and money market accounts$ 8,247,650  $ 11,342 0.55% $7,987,888  $3,082 0.15%
    Regular savings  1,171,071    64 0.02%  1,169,199   55 0.02%
    Time deposits  1,745,224    3,980 0.90%  1,667,378   2,960 0.71%
    Total interest-bearing deposits   11,163,945    15,386 0.55%  10,824,465   6,097 0.23%
    Other borrowings  703,272    5,055 2.85%  765,886   3,891 2.04%
    Total interest-bearing liabilities$ 11,867,217  $ 20,441 0.68% $11,590,351  $9,988 0.35%
                    
    Noninterest-bearing liabilities:               
    Demand deposits  5,324,279        5,366,591      
    Other liabilities  352,005        317,415      
    Total liabilities$ 17,543,501       $17,274,357      
    Stockholders' equity  2,436,999        2,445,045      
    Total liabilities and stockholders' equity$ 19,980,500       $19,719,402      
    Net interest income   $ 154,557      $142,344  
                    
    Interest rate spread      3.20%       3.11%
    Cost of funds      0.45%       0.22%
    Net interest margin      3.43%       3.24%

    (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.

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

     


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