AUB Atlantic Union Bankshares Corporation

Atlantic Union Bankshares investor call today, Monday, October 21, 2024 at 9:00 a.m. (EDT)

Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $73.4 million and basic and diluted earnings per common share of $0.82 for the third quarter of 2024 and adjusted operating earnings available to common shareholders(1) of $74.5 million and adjusted diluted operating earnings per common share(1) of $0.83 for the third quarter of 2024.

“Atlantic Union delivered solid financial results in the quarter and the enhanced earnings power we envisioned as a result of the American National Bankshares acquisition is now evident,” said John C. Asbury, president and chief executive officer of Atlantic Union. “During the quarter, we completed the integration work associated with American National Bank and added to our teams in our North Carolina markets which we believe offer long term growth and expansion opportunities. October marks the 8-year anniversary of my having joined the Company, and the transformation we have achieved during this time is exactly what we said we’d do at the outset. This would not have been possible without the dedication of our Teammates and support of our customers. We remain excited about what the future holds for Atlantic Union.

“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 2024, net interest income was $182.9 million, a decrease of $1.6 million from $184.5 million in the second quarter of 2024. Net interest income - fully taxable equivalent (“FTE”)(1) was $186.8 million in the third quarter of 2024, a decrease of $1.5 million from $188.3 million in the second quarter of 2024. The decreases from the prior quarter in both net interest income and net interest income (FTE)(1) were primarily the result of increased interest expense due to the $111.3 million increase in average interest bearing liabilities and lower net accretion income and investment securities interest income, partially offset by increased interest income due to the $165.4 million increase in average loans held for investment (“LHFI”). For the third quarter of 2024, both the Company’s net interest margin and the net interest margin (FTE)(1) decreased 8 basis points compared to the prior quarter to 3.31% and to 3.38%, respectively, primarily due to higher cost of funds and lower yields on earning assets. Earning asset yields for the third quarter of 2024 decreased 2 basis points to 5.94% compared to the second quarter of 2024, primarily due to lower yields on securities and lower loan accretion income, partially offset by growth in average LHFI. Cost of funds increased from the prior quarter by 6 basis points to 2.56% for the third quarter of 2024, due primarily to average deposit growth in higher yielding deposit products, partially offset by lower borrowing costs.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting declined by $1.6 million to $12.7 million for the quarter ended September 30, 2024, compared to $14.3 million for the quarter ended June 30, 2024. The impact of accretion and amortization for the periods presented are reflected in the following table (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended June 30, 2024

 

$

15,660

 

$

(1,035

)

 

$

(285

)

 

$

14,340

For the quarter ended September 30, 2024

 

 

13,926

 

 

 

(913

)

 

 

(288

)

 

 

12,725

 

ASSET QUALITY

Overview

At September 30, 2024, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.20%, consistent with the prior quarter and included nonaccrual loans of $36.8 million. Accruing past due loans as a percentage of total LHFI totaled 30 basis points at September 30, 2024, an increase of 8 basis points from June 30, 2024, and an increase of 3 basis points from September 30, 2023. Net charge-offs were 0.01% of total average LHFI (annualized) for the third quarter of 2024, a decrease of 3 basis points from June 30, 2024, and consistent with September 30, 2023. The allowance for credit losses (“ACL”) totaled $177.6 million at September 30, 2024, a $1.9 million increase from the prior quarter.

Nonperforming Assets

At September 30, 2024, NPAs totaled $37.3 million, compared to $36.1 million in the prior quarter. The following table shows a summary of NPA balances at the quarters ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2024

 

2024

 

2024

 

2023

 

2023

Nonaccrual loans

 

$

36,847

 

$

35,913

 

$

36,389

 

$

36,860

 

$

28,626

Foreclosed properties

 

 

404

 

 

 

230

 

 

 

29

 

 

 

29

 

 

 

149

 

Total nonperforming assets

 

$

37,251

 

 

$

36,143

 

 

$

36,418

 

 

$

36,889

 

 

$

28,775

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2024

 

2024

 

2024

 

2023

 

2023

Beginning Balance

 

$

35,913

 

 

$

36,389

 

 

$

36,860

 

 

$

28,626

 

 

$

29,105

 

Net customer payments

 

 

(2,219

)

 

 

(6,293

)

 

 

(1,583

)

 

 

(2,198

)

 

 

(1,947

)

Additions

 

 

5,347

 

 

 

6,831

 

 

 

5,047

 

 

 

10,604

 

 

 

1,651

 

Charge-offs

 

 

(542

)

 

 

(759

)

 

 

(3,935

)

 

 

(172

)

 

 

(64

)

Loans returning to accruing status

 

 

(1,478

)

 

 

(54

)

 

 

—

 

 

 

—

 

 

 

(119

)

Transfers to foreclosed property

 

 

(174

)

 

 

(201

)

 

 

—

 

 

 

—

 

 

 

—

 

Ending Balance

 

$

36,847

 

 

$

35,913

 

 

$

36,389

 

 

$

36,860

 

 

$

28,626

 

Past Due Loans

At September 30, 2024, past due loans still accruing interest totaled $55.2 million or 0.30% of total LHFI, compared to $40.2 million or 0.22% of total LHFI at June 30, 2024, and $40.6 million or 0.27% of total LHFI at September 30, 2023. The increase in past due loan levels at September 30, 2024 from June 30, 2024 was primarily within the 60-89 days past due category and driven by increases in past due relationships within the Commercial Real Estate (“CRE”) non-owner occupied, CRE owner occupied, and residential 1-4 family consumer as well as increases in Commercial and Industrial (“C&I”) past due relationships within the 30-59 days past due category. Of the total past due loans still accruing interest, $15.2 million or 0.08% of total LHFI were past due 90 days or more at September 30, 2024, compared to $15.6 million or 0.09% of total LHFI at June 30, 2024, and $11.9 million or 0.08% of total LHFI at September 30, 2023.

Allowance for Credit Losses

At September 30, 2024, the ACL was $177.6 million and included an allowance for loan and lease losses (“ALLL”) of $160.7 million and a reserve for unfunded commitments (“RUC”) of $16.9 million. The ACL at September 30, 2024 increased $1.9 million from June 30, 2024, primarily due to the impact of continued uncertainty in the economic outlook on certain portfolios.

The ACL as a percentage of total LHFI was 0.97% at September 30, 2024, compared to 0.96% at June 30, 2024. The ALLL as a percentage of total LHFI was 0.88% at September 30, 2024, compared to 0.86% at June 30, 2024.

Net Charge-offs

Net charge-offs were $0.7 million or 0.01% of total average LHFI on an annualized basis for the third quarter of 2024, compared to $1.7 million or 0.04% (annualized) for the second quarter of 2024, and $0.3 million or 0.01% (annualized) for the third quarter of 2023.

Provision for Credit Losses

For the third quarter of 2024, the Company recorded a provision for credit losses of $2.6 million, compared to $21.8 million in the prior quarter, and $5.0 million in the third quarter of 2023. Included in the provision for credit losses for the second quarter of 2024 was $13.2 million initial provision expense on non-purchased credit deteriorated loans and $1.4 million on unfunded commitments, each acquired from American National Bankshares Inc. (“American National”).

NONINTEREST INCOME

Noninterest income increased $10.5 million to $34.3 million for the third quarter of 2024 from $23.8 million in the prior quarter, primarily driven by $6.5 million of pre-tax losses incurred in the prior quarter on the sale of available for sale (“AFS”) securities as part of the Company’s restructuring of the American National securities portfolio.

Adjusted operating noninterest income,(1) which excludes losses and gains on sale of AFS securities (pre-tax gains of $4,000 in the third quarter and pre-tax losses of $6.5 million in the second quarter), increased $4.0 million to $34.3 million for the third quarter from $30.3 million for the prior quarter, primarily driven by a $1.9 million increase in other operating income due to an increase in equity method investment income, a $1.2 million increase in bank owned life insurance income primarily driven by death benefits received in the third quarter, and a $706,000 seasonal increase in service charges on deposit accounts.

NONINTEREST EXPENSE

Noninterest expense decreased $27.4 million to $122.6 million for the third quarter of 2024 from $150.0 million in the prior quarter, primarily driven by a $28.4 million decrease in pre-tax merger-related expenses associated with the American National acquisition.

Adjusted operating noninterest expense,(1) which excludes merger-related costs ($1.4 million in the third quarter and $29.8 million in the second quarter) and amortization of intangible assets ($5.8 million in the third quarter and $6.0 million in the second quarter), increased $1.2 million to $115.4 million for the third quarter from $114.2 million in the prior quarter, primarily driven by a $923,000 increase in salaries and benefits due to increases in variable incentive compensation expenses and full-time equivalent employees, as well as a $607,000 increase in Federal Deposit Insurance Corporation (“FDIC”) assessment premiums and other insurance driven by an increase in our assessment base as a result of the American National acquisition. These increases were partially offset by a $537,000 decrease in technology and data processing expense.

INCOME TAXES

The Company’s effective tax rate for the three months ended September 30, 2024 and 2023 was 17.0% and 17.6%, respectively, and the effective tax rate for the nine months ended September 30, 2024 and 2023 was 19.7% and 16.3%. respectively. The increase in the effective tax rate for the nine months ended September 30, 2024 was primarily due to a $4.8 million valuation allowance established during the second quarter of 2024, which resulted in a 250 basis points increase in the effective tax rate.

BALANCE SHEET

At September 30, 2024, total assets were $24.8 billion, an increase of $42.3 million or approximately 0.7% (annualized) from June 30, 2024 and $4.1 billion or approximately 19.6% from September 30, 2023. Total assets increased from the prior quarter due to an increase in cash and cash equivalents primarily due to deposit growth, as well as an increase in the investment securities portfolio due to an increase in the market value of the AFS securities portfolio, partially offset by a decrease in other assets driven by decreases in deferred income taxes associated with other comprehensive income fair value changes related to AFS securities and derivatives in the current quarter. The increase in total assets from the prior year was due to growth in LHFI and the AFS securities portfolio, primarily due to the American National acquisition.

As a result of the American National acquisition, the Company’s associated goodwill at September 30, 2024 totaled $287.5 million. During the quarter ended September 30, 2024, the Company adjusted the allocation of the purchase price for certain provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period adjustments recorded in this quarter relate to deferred taxes, the fair values of long-term borrowings, and foreclosed properties, which resulted in a $5.2 million increase in the preliminary goodwill recognized during the second quarter of 2024.

At September 30, 2024, LHFI totaled $18.3 billion, a decrease of $9.9 million or 0.2% (annualized) from June 30, 2024, and an increase of $3.1 billion or 20.0% from September 30, 2023. LHFI decreased from the prior quarter primarily due to decreases in the commercial and industrial loan portfolio as a result of loan paydowns and lower revolving credit usage, partially offset by increases in the construction and land development loan portfolio as construction projects continued to fund up. The increase from the same period in the prior year was primarily due to the American National acquisition. Quarterly average LHFI totaled $18.3 billion, an increase of $165.4 million or 3.6% (annualized) from the prior quarter, and an increase of $3.5 billion or 23.8% (annualized) from September 30, 2023. Quarterly average LHFI increased from the prior quarter primarily due to an increase in the CRE owner occupied, multifamily real estate, and construction and land development loan portfolios, partially offset by a decrease in the CRE non-owner occupied loan portfolio. The increase from the same period in the prior year was primarily due to the American National acquisition, as well as loan growth.

At September 30, 2024, total investments were $3.5 billion, an increase of $41.7 million or 4.7% (annualized) from June 30, 2024, and an increase of $500.2 million or 16.5% from September 30, 2023. The increase compared to the prior quarter was primarily due to the increase in the market value of the AFS securities portfolio, and the increase compared to the same period in the prior year was primarily due to the American National acquisition. AFS securities totaled $2.6 billion at both September 30, 2024 and June 30, 2024 and increased from $2.1 billion at September 30, 2023. Total net unrealized losses on the AFS securities portfolio were $334.5 million at September 30, 2024, compared to $420.7 million at June 30, 2024, and $523.1 million at September 30, 2023. Held to maturity securities are carried at cost and totaled $807.1 million at September 30, 2024, $810.5 million at June 30, 2024, and $843.3 million at September 30, 2023 and had net unrealized losses of $30.3 million at September 30, 2024, $44.0 million at June 30, 2024, and $81.2 million at September 30, 2023.

At September 30, 2024, total deposits were $20.3 billion, an increase of $304.4 million or 6.1% (annualized) from the prior quarter. Average deposits at September 30, 2024 increased from the prior quarter by $140.5 million or 2.8% (annualized). Total deposits at September 30, 2024 increased $3.5 billion or 21.0% from September 30, 2023, and quarterly average deposits at September 30, 2024 increased $3.4 billion or 20.1% from the same period in the prior year. The increase in deposit balances from the prior quarter are primarily due to increases in interest bearing customer deposits and brokered deposits of $325.6 million and $83.2 million, respectively, partially offset by decreases of $104.4 million in demand deposits. The increase from the same period in the prior year is primarily related to the addition of the American National acquired deposits, as well as an increase of $901.5 million in brokered deposits.

At September 30, 2024, total borrowings were $852.2 million, a decrease of $354.6 million from June 30, 2024 and a decrease of $168.5 million from September 30, 2023. At September 30, 2024 average borrowings were $855.3 million, a decrease of $188.0 million from June 30, 2024, and a decrease of $49.9 million from September 30, 2023. The decreases in average borrowings from the prior quarter and the same period in the prior year were primarily due to paydowns of short-term borrowings due to deposit growth.

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

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

September 30,

 

 

 

2024

 

2024

 

2023

 

Common equity Tier 1 capital ratio (2)

 

9.77

%

9.47

%

9.94

%

Tier 1 capital ratio (2)

 

10.57

%

10.26

%

10.88

%

Total capital ratio (2)

 

13.33

%

12.99

%

13.70

%

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

 

9.27

%

9.05

%

9.62

%

Common equity to total assets

 

12.16

%

11.62

%

10.72

%

Tangible common equity to tangible assets (1)

 

7.29

%

6.71

%

6.45

%

________________________________________

 

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

 

(2) All ratios at September 30, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

During the third quarter of 2024, 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 2024 and the third quarter of 2023. During the third quarter of 2024, the Company also declared and paid cash dividends of $0.32 per common share, consistent with the second quarter of 2024 and a $0.02 increase or approximately 6.7% from the third quarter of 2023.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank had 129 branches and approximately 150 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of September 30, 2024. 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 2024 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Monday, October 21, 2024, during which management will review our financial results for the third quarter 2024 and provide an update on our recent activities. This call has been rescheduled from the previously announced date and time.

The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/6q92at5j.

For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BI352e42e841fa454e85cc98ae24ac2697. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

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

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the period ended September 30, 2024, we have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare our financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. We use the non-GAAP financial measures discussed herein in its analysis of our performance. Our 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 our underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

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

• market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs and our loan and securities portfolios;
• inflation and its impacts on economic growth and customer and client behavior;
• adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior;
• the sufficiency of liquidity and changes in our capital positions;
• general economic and financial market conditions, in the United States generally and particularly in the markets in which we operate and which our loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
• the American National acquisition, including the impact of purchase accounting, any change in the assumptions used regarding the assets acquired and liabilities assumed to determine the fair value and credit marks, and the possibility that the anticipated benefits are not realized when expected or at all;
• potential adverse reactions or changes to business or employee relationships, including those resulting from the American National acquisition;
• monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
• the quality or composition of our loan or investment portfolios and changes therein;
• demand for loan products and financial services in our market areas;
• our ability to manage our growth or implement our growth strategy;
• the effectiveness of expense reduction plans;
• the introduction of new lines of business or new products and services;
• our ability to recruit and retain key employees;
• real estate values in our lending area;
• changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements;
• an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by changing economic conditions, credit concentrations, inflation, changing interest rates, or other factors;
• concentrations of loans secured by real estate, particularly commercial real estate;
• the effectiveness of our credit processes and management of our credit risk;
• our ability to compete in the market for financial services and increased competition from fintech companies;
• technological risks and developments, and cyber threats, attacks, or events;
• operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;
• the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events (such as pandemics), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for our loans or our other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on our liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of our business operations and on financial markets and economic growth;
• performance by our counterparties or vendors;
• deposit flows;
• the availability of financing and the terms thereof;
• the level of prepayments on loans and mortgage-backed securities;
• the effects of legislative or regulatory changes and requirements, including changes in federal, state or local tax laws;
• actual or potential claims, damages, and fines related to litigation or government actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
• any event or development that would cause us to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
• other factors, many of which are beyond our control.

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

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

$

324,528

 

$

320,888

 

$

247,159

 

$

908,330

 

$

694,952

 

Interest expense

 

141,596

 

 

136,354

 

 

95,218

 

 

393,040

 

 

237,483

 

Net interest income

 

182,932

 

 

184,534

 

 

151,941

 

 

515,290

 

 

457,469

 

Provision for credit losses

 

2,603

 

 

21,751

 

 

4,991

 

 

32,592

 

 

22,911

 

Net interest income after provision for credit losses

 

180,329

 

 

162,783

 

 

146,950

 

 

482,698

 

 

434,558

 

Noninterest income

 

34,286

 

 

23,812

 

 

27,094

 

 

83,651

 

 

60,918

 

Noninterest expenses

 

122,582

 

 

150,005

 

 

108,508

 

 

377,859

 

 

322,442

 

Income before income taxes

 

92,033

 

 

36,590

 

 

65,536

 

 

188,490

 

 

173,034

 

Income tax expense

 

15,618

 

 

11,429

 

 

11,519

 

 

37,144

 

 

28,123

 

Net income

 

76,415

 

 

25,161

 

 

54,017

 

 

151,346

 

 

144,911

 

Dividends on preferred stock

 

2,967

 

 

2,967

 

 

2,967

 

 

8,901

 

 

8,901

 

Net income available to common shareholders

$

73,448

 

$

22,194

 

$

51,050

 

$

142,445

 

$

136,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

$

328,427

 

$

324,702

 

$

250,903

 

$

919,766

 

$

706,150

 

Net interest income (FTE) (1)

 

186,831

 

 

188,348

 

 

155,685

 

 

526,726

 

 

468,667

 

Total revenue (FTE) (1)

 

221,117

 

 

212,160

 

 

182,779

 

 

610,377

 

 

529,585

 

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

 

95,985

 

 

94,635

 

 

81,086

 

 

261,437

 

 

228,837

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

$

0.82

 

$

0.25

 

$

0.68

 

$

1.68

 

$

1.81

 

Return on average assets (ROA)

 

1.24

%

 

0.41

%

 

1.04

%

 

0.86

%

 

0.95

%

Return on average equity (ROE)

 

9.77

%

 

3.35

%

 

8.76

%

 

6.97

%

 

7.93

%

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

 

18.89

%

 

6.99

%

 

15.71

%

 

13.20

%

 

14.22

%

Efficiency ratio

 

56.43

%

 

72.00

%

 

60.61

%

 

63.09

%

 

62.20

%

Efficiency ratio (FTE) (1)

 

55.44

%

 

70.70

%

 

59.37

%

 

61.91

%

 

60.89

%

Net interest margin

 

3.31

%

 

3.39

%

 

3.27

%

 

3.28

%

 

3.35

%

Net interest margin (FTE) (1)

 

3.38

%

 

3.46

%

 

3.35

%

 

3.35

%

 

3.43

%

Yields on earning assets (FTE) (1)

 

5.94

%

 

5.96

%

 

5.39

%

 

5.85

%

 

5.17

%

Cost of interest-bearing liabilities

 

3.40

%

 

3.33

%

 

2.80

%

 

3.32

%

 

2.42

%

Cost of deposits

 

2.57

%

 

2.46

%

 

1.97

%

 

2.48

%

 

1.63

%

Cost of funds

 

2.56

%

 

2.50

%

 

2.04

%

 

2.50

%

 

1.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

$

77,497

 

$

59,319

 

$

62,749

 

$

188,811

 

$

171,286

 

Adjusted operating earnings available to common shareholders

 

74,530

 

 

56,352

 

 

59,782

 

 

179,910

 

 

162,385

 

Adjusted operating earnings per common share, diluted

$

0.83

 

$

0.63

 

$

0.80

 

$

2.12

 

$

2.17

 

Adjusted operating ROA

 

1.25

%

 

0.97

%

 

1.21

%

 

1.07

%

 

1.12

%

Adjusted operating ROE

 

9.91

%

 

7.90

%

 

10.17

%

 

8.69

%

 

9.37

%

Adjusted operating ROTCE (2) (3)

 

19.15

%

 

15.85

%

 

18.31

%

 

16.43

%

 

16.88

%

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

 

52.20

%

 

52.24

%

 

52.36

%

 

53.55

%

 

54.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

$

0.82

 

$

0.25

 

$

0.68

 

$

1.68

 

$

1.81

 

Earnings per common share, diluted

 

0.82

 

 

0.25

 

 

0.68

 

 

1.68

 

 

1.81

 

Cash dividends paid per common share

 

0.32

 

 

0.32

 

 

0.30

 

 

0.96

 

 

0.90

 

Market value per share

 

37.67

 

 

32.85

 

 

28.78

 

 

37.67

 

 

28.78

 

Book value per common share

 

33.85

 

 

32.30

 

 

29.82

 

 

33.85

 

 

29.82

 

Tangible book value per common share (2)

 

19.23

 

 

17.67

 

 

17.12

 

 

19.23

 

 

17.12

 

Price to earnings ratio, diluted

 

11.57

 

 

33.03

 

 

10.65

 

 

16.81

 

 

11.86

 

Price to book value per common share ratio

 

1.11

 

 

1.02

 

 

0.97

 

 

1.11

 

 

0.97

 

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

 

1.96

 

 

1.86

 

 

1.68

 

 

1.96

 

 

1.68

 

Weighted average common shares outstanding, basic

 

89,780,531

 

 

89,768,466

 

 

74,999,128

 

 

84,933,126

 

 

74,942,851

 

Weighted average common shares outstanding, diluted

 

89,780,531

 

 

89,768,466

 

 

74,999,128

 

 

84,933,213

 

 

74,943,999

 

Common shares outstanding at end of period

 

89,774,392

 

 

89,769,734

 

 

74,997,132

 

 

89,774,392

 

 

74,997,132

 

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

9.77

%

 

9.47

%

 

9.94

%

 

9.77

%

 

9.94

%

Tier 1 capital ratio (5)

 

10.57

%

 

10.26

%

 

10.88

%

 

10.57

%

 

10.88

%

Total capital ratio (5)

 

13.33

%

 

12.99

%

 

13.70

%

 

13.33

%

 

13.70

%

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

 

9.27

%

 

9.05

%

 

9.62

%

 

9.27

%

 

9.62

%

Common equity to total assets

 

12.16

%

 

11.62

%

 

10.72

%

 

12.16

%

 

10.72

%

Tangible common equity to tangible assets (2)

 

7.29

%

 

6.71

%

 

6.45

%

 

7.29

%

 

6.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

24,803,723

 

$

24,761,413

 

$

20,736,236

 

$

24,803,723

 

$

20,736,236

 

LHFI (net of deferred fees and costs)

 

18,337,299

 

 

18,347,190

 

 

15,283,620

 

 

18,337,299

 

 

15,283,620

 

Securities

 

3,533,143

 

 

3,491,481

 

 

3,032,982

 

 

3,533,143

 

 

3,032,982

 

Earning Assets

 

22,180,501

 

 

22,067,549

 

 

18,491,561

 

 

22,180,501

 

 

18,491,561

 

Goodwill

 

1,212,710

 

 

1,207,484

 

 

925,211

 

 

1,212,710

 

 

925,211

 

Amortizable intangibles, net

 

90,176

 

 

95,980

 

 

21,277

 

 

90,176

 

 

21,277

 

Deposits

 

20,305,287

 

 

20,000,877

 

 

16,786,505

 

 

20,305,287

 

 

16,786,505

 

Borrowings

 

852,164

 

 

1,206,734

 

 

1,020,669

 

 

852,164

 

 

1,020,669

 

Stockholders' equity

 

3,182,416

 

 

3,043,686

 

 

2,388,801

 

 

3,182,416

 

 

2,388,801

 

Tangible common equity (2)

 

1,713,173

 

 

1,573,865

 

 

1,275,956

 

 

1,713,173

 

 

1,275,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

$

1,588,531

 

$

1,454,545

 

$

1,132,940

 

$

1,588,531

 

$

1,132,940

 

Commercial real estate - owner occupied

 

2,401,807

 

 

2,397,700

 

 

1,975,281

 

 

2,401,807

 

 

1,975,281

 

Commercial real estate - non-owner occupied

 

4,885,785

 

 

4,906,285

 

 

4,148,218

 

 

4,885,785

 

 

4,148,218

 

Multifamily real estate

 

1,357,730

 

 

1,353,024

 

 

947,153

 

 

1,357,730

 

 

947,153

 

Commercial & Industrial

 

3,799,872

 

 

3,944,723

 

 

3,432,319

 

 

3,799,872

 

 

3,432,319

 

Residential 1-4 Family - Commercial

 

729,315

 

 

737,687

 

 

517,034

 

 

729,315

 

 

517,034

 

Residential 1-4 Family - Consumer

 

1,281,914

 

 

1,251,033

 

 

1,057,294

 

 

1,281,914

 

 

1,057,294

 

Residential 1-4 Family - Revolving

 

738,665

 

 

718,491

 

 

599,282

 

 

738,665

 

 

599,282

 

Auto

 

354,570

 

 

396,776

 

 

534,361

 

 

354,570

 

 

534,361

 

Consumer

 

109,522

 

 

115,541

 

 

126,151

 

 

109,522

 

 

126,151

 

Other Commercial

 

1,089,588

 

 

1,071,385

 

 

813,587

 

 

1,089,588

 

 

813,587

 

Total LHFI

$

18,337,299

 

$

18,347,190

 

$

15,283,620

 

$

18,337,299

 

$

15,283,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

5,208,794

 

$

5,044,503

 

$

5,055,464

 

$

5,208,794

 

$

5,055,464

 

Money market accounts

 

4,250,763

 

 

4,330,928

 

 

3,472,953

 

 

4,250,763

 

 

3,472,953

 

Savings accounts

 

1,037,229

 

 

1,056,474

 

 

950,363

 

 

1,037,229

 

 

950,363

 

Customer time deposits of $250,000 and over

 

1,160,262

 

 

1,015,032

 

 

634,950

 

 

1,160,262

 

 

634,950

 

Other customer time deposits

 

2,807,077

 

 

2,691,600

 

 

2,011,106

 

 

2,807,077

 

 

2,011,106

 

Time deposits

 

3,967,339

 

 

3,706,632

 

 

2,646,056

 

 

3,967,339

 

 

2,646,056

 

Total interest-bearing customer deposits

 

14,464,125

 

 

14,138,537

 

 

12,124,836

 

 

14,464,125

 

 

12,124,836

 

Brokered deposits

 

1,418,253

 

 

1,335,092

 

 

516,720

 

 

1,418,253

 

 

516,720

 

Total interest-bearing deposits

$

15,882,378

 

$

15,473,629

 

$

12,641,556

 

$

15,882,378

 

$

12,641,556

 

Demand deposits

 

4,422,909

 

 

4,527,248

 

 

4,144,949

 

 

4,422,909

 

 

4,144,949

 

Total deposits

$

20,305,287

 

$

20,000,877

 

$

16,786,505

 

$

20,305,287

 

$

16,786,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

24,613,518

 

$

24,620,198

 

$

20,596,189

 

$

23,489,608

 

$

20,397,518

 

LHFI (net of deferred fees and costs)

 

18,320,122

 

 

18,154,673

 

 

15,139,761

 

 

17,405,814

 

 

14,799,520

 

Loans held for sale

 

13,485

 

 

12,392

 

 

10,649

 

 

11,680

 

 

10,330

 

Securities

 

3,501,879

 

 

3,476,890

 

 

3,101,658

 

 

3,377,896

 

 

3,247,287

 

Earning assets

 

21,983,946

 

 

21,925,128

 

 

18,462,505

 

 

21,003,082

 

 

18,264,957

 

Deposits

 

20,174,158

 

 

20,033,678

 

 

16,795,611

 

 

19,122,193

 

 

16,499,045

 

Time deposits

 

4,758,039

 

 

4,243,344

 

 

2,914,004

 

 

4,155,713

 

 

2,571,114

 

Interest-bearing deposits

 

15,736,797

 

 

15,437,549

 

 

12,576,776

 

 

14,832,042

 

 

12,071,006

 

Borrowings

 

855,306

 

 

1,043,297

 

 

905,170

 

 

970,046

 

 

1,032,067

 

Interest-bearing liabilities

 

16,592,103

 

 

16,480,846

 

 

13,481,946

 

 

15,802,088

 

 

13,103,073

 

Stockholders' equity

 

3,112,509

 

 

3,021,929

 

 

2,446,902

 

 

2,901,666

 

 

2,443,833

 

Tangible common equity (2)

 

1,643,562

 

 

1,549,876

 

 

1,332,993

 

 

1,550,978

 

 

1,328,385

 

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

158,131

 

 

$

136,190

 

$

120,683

 

 

$

132,182

 

 

$

110,768

 

Add: Recoveries

 

2,053

 

 

 

1,348

 

 

 

1,335

 

 

 

4,378

 

 

 

3,537

 

 

Less: Charge-offs

 

2,719

 

 

 

3,088

 

 

 

1,629

 

 

 

11,701

 

 

 

9,957

 

 

Add: Initial Allowance - PCD American National loans

 

—

 

 

 

3,896

 

 

 

—

 

 

 

3,896

 

 

 

—

 

 

Add: Initial Provision - Non-PCD American National loans

 

—

 

 

 

13,229

 

 

 

—

 

 

 

13,229

 

 

 

—

 

 

Add: Provision for loan losses

 

3,220

 

 

 

6,556

 

 

 

5,238

 

 

 

18,701

 

 

 

21,279

 

 

Ending balance, ALLL

$

160,685

 

 

$

158,131

 

 

$

125,627

 

 

$

160,685

 

 

$

125,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

$

17,557

 

 

$

15,582

 

 

$

15,548

 

 

$

16,269

 

 

$

13,675

 

 

Add: Initial Provision - RUC American National loans

 

—

 

 

 

1,353

 

 

 

—

 

 

 

1,353

 

 

 

—

 

 

Add: Provision for unfunded commitments

 

(614

)

 

 

622

 

 

 

(246

)

 

 

(679

)

 

 

1,627

 

 

Ending balance, RUC

$

16,943

 

 

$

17,557

 

 

$

15,302

 

 

$

16,943

 

 

$

15,302

 

 

Total ACL

$

177,628

 

 

$

175,688

 

 

$

140,929

 

 

$

177,628

 

 

$

140,929

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL / total LHFI

 

0.97

 

%

 

0.96

 

%

 

0.92

 

%

 

0.97

 

%

 

0.92

 

%

ALLL / total LHFI

 

0.88

 

%

 

0.86

 

%

 

0.82

 

%

 

0.88

 

%

 

0.82

 

%

Net charge-offs / total average LHFI (annualized)

 

0.01

 

%

 

0.04

 

%

 

0.01

 

%

 

0.06

 

%

 

0.06

 

%

Provision for loan losses/ total average LHFI (annualized)

 

0.07

 

%

 

0.44

 

%

 

0.14

 

%

 

0.25

 

%

 

0.19

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

$

1,945

 

 

$

1,144

 

 

$

355

 

 

$

1,945

 

 

$

355

 

 

Commercial real estate - owner occupied

 

4,781

 

 

 

4,651

 

 

 

3,882

 

 

 

4,781

 

 

 

3,882

 

 

Commercial real estate - non-owner occupied

 

9,919

 

 

 

10,741

 

 

 

5,999

 

 

 

9,919

 

 

 

5,999

 

 

Multifamily real estate

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Commercial & Industrial

 

3,048

 

 

 

3,408

 

 

 

2,256

 

 

 

3,048

 

 

 

2,256

 

 

Residential 1-4 Family - Commercial

 

1,727

 

 

 

1,783

 

 

 

1,833

 

 

 

1,727

 

 

 

1,833

 

 

Residential 1-4 Family - Consumer

 

11,925

 

 

 

10,799

 

 

 

10,368

 

 

 

11,925

 

 

 

10,368

 

 

Residential 1-4 Family - Revolving

 

2,960

 

 

 

3,028

 

 

 

3,572

 

 

 

2,960

 

 

 

3,572

 

 

Auto

 

532

 

 

 

354

 

 

 

361

 

 

 

532

 

 

 

361

 

 

Consumer

 

10

 

 

 

4

 

 

 

—

 

 

 

10

 

 

 

—

 

 

Nonaccrual loans

$

36,847

 

 

$

35,913

 

 

$

28,626

 

 

$

36,847

 

 

$

28,626

 

 

Foreclosed property

 

404

 

 

 

230

 

 

 

149

 

 

 

404

 

 

 

149

 

 

Total nonperforming assets (NPAs)

$

37,251

 

 

$

36,143

 

 

$

28,775

 

 

$

37,251

 

 

$

28,775

 

 

Construction and land development

$

82

 

 

$

764

 

 

$

25

 

 

$

82

 

 

$

25

 

 

Commercial real estate - owner occupied

 

1,239

 

 

 

1,047

 

 

 

2,395

 

 

 

1,239

 

 

 

2,395

 

 

Commercial real estate - non-owner occupied

 

1,390

 

 

 

1,309

 

 

 

2,835

 

 

 

1,390

 

 

 

2,835

 

 

Multifamily real estate

 

53

 

 

 

141

 

 

 

—

 

 

 

53

 

 

 

—

 

 

Commercial & Industrial

 

862

 

 

 

684

 

 

 

792

 

 

 

862

 

 

 

792

 

 

Residential 1-4 Family - Commercial

 

801

 

 

 

678

 

 

 

817

 

 

 

801

 

 

 

817

 

 

Residential 1-4 Family - Consumer

 

1,890

 

 

 

1,645

 

 

 

3,632

 

 

 

1,890

 

 

 

3,632

 

 

Residential 1-4 Family - Revolving

 

1,186

 

 

 

1,449

 

 

 

1,034

 

 

 

1,186

 

 

 

1,034

 

 

Auto

 

401

 

 

 

263

 

 

 

229

 

 

 

401

 

 

 

229

 

 

Consumer

 

143

 

 

 

176

 

 

 

97

 

 

 

143

 

 

 

97

 

 

Other Commercial

 

7,127

 

 

 

7,464

 

 

 

15

 

 

 

7,127

 

 

 

15

 

 

LHFI ≥ 90 days and still accruing

$

15,174

 

 

$

15,620

 

 

$

11,871

 

 

$

15,174

 

 

$

11,871

 

 

Total NPAs and LHFI ≥ 90 days

$

52,425

 

 

$

51,763

 

 

$

40,646

 

 

$

52,425

 

 

$

40,646

 

 

NPAs / total LHFI

 

0.20

 

%

 

0.20

 

%

 

0.19

 

%

 

0.20

 

%

 

0.19

 

%

NPAs / total assets

 

0.15

 

%

 

0.15

 

%

 

0.14

 

%

 

0.15

 

%

 

0.14

 

%

ALLL / nonaccrual loans

 

436.09

 

%

 

440.32

 

%

 

438.86

 

%

 

436.09

 

%

 

438.86

 

%

ALLL/ nonperforming assets

 

431.36

 

%

 

437.51

 

%

 

436.58

 

%

 

431.36

 

%

 

436.58

 

%

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Past Due Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

$

1,559

 

$

1,689

 

$

—

 

$

1,559

 

$

—

 

Commercial real estate - owner occupied

 

2,291

 

 

3,450

 

 

3,501

 

 

2,291

 

 

3,501

 

Commercial real estate - non-owner occupied

 

1,085

 

 

1,316

 

 

4,573

 

 

1,085

 

 

4,573

 

Multifamily real estate

 

821

 

 

1,694

 

 

—

 

 

821

 

 

—

 

Commercial & Industrial

 

5,876

 

 

2,154

 

 

3,049

 

 

5,876

 

 

3,049

 

Residential 1-4 Family - Commercial

 

656

 

 

873

 

 

744

 

 

656

 

 

744

 

Residential 1-4 Family - Consumer

 

471

 

 

1,331

 

 

1,000

 

 

471

 

 

1,000

 

Residential 1-4 Family - Revolving

 

3,309

 

 

2,518

 

 

2,326

 

 

3,309

 

 

2,326

 

Auto

 

2,796

 

 

3,463

 

 

2,703

 

 

2,796

 

 

2,703

 

Consumer

 

700

 

 

385

 

 

517

 

 

700

 

 

517

 

Other Commercial

 

2

 

 

289

 

 

3,545

 

 

2

 

 

3,545

 

LHFI 30-59 days past due

$

19,566

 

$

19,162

 

$

21,958

 

$

19,566

 

$

21,958

 

Construction and land development

$

369

 

$

155

 

$

386

 

 

369

 

 

386

 

Commercial real estate - owner occupied

 

1,306

 

 

72

 

 

1,902

 

 

1,306

 

 

1,902

 

Commercial real estate - non-owner occupied

 

6,875

 

 

—

 

 

797

 

 

6,875

 

 

797

 

Multifamily real estate

 

135

 

 

632

 

 

150

 

 

135

 

 

150

 

Commercial & Industrial

 

549

 

 

192

 

 

576

 

 

549

 

 

576

 

Residential 1-4 Family - Commercial

 

736

 

 

689

 

 

67

 

 

736

 

 

67

 

Residential 1-4 Family - Consumer

 

6,950

 

 

1,960

 

 

1,775

 

 

6,950

 

 

1,775

 

Residential 1-4 Family - Revolving

 

2,672

 

 

795

 

 

602

 

 

2,672

 

 

602

 

Auto

 

468

 

 

565

 

 

339

 

 

468

 

 

339

 

Consumer

 

182

 

 

309

 

 

164

 

 

182

 

 

164

 

Other Commercial

 

185

 

 

—

 

 

—

 

 

185

 

 

—

 

LHFI 60-89 days past due

$

20,427

 

$

5,369

 

$

6,758

 

$

20,427

 

$

6,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

$

55,167

 

$

40,151

 

$

40,587

 

$

55,167

 

$

40,587

 

Past Due and still accruing / total LHFI

 

0.30

%

 

0.22

%

 

0.27

%

 

0.30

%

 

0.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

182,932

 

$

184,534

 

$

151,941

 

$

515,290

 

$

457,469

 

FTE adjustment

 

3,899

 

 

3,814

 

 

3,744

 

 

11,436

 

 

11,198

 

Net interest income (FTE) (non-GAAP)

$

186,831

 

$

188,348

 

$

155,685

 

$

526,726

 

$

468,667

 

Noninterest income (GAAP)

 

34,286

 

 

23,812

 

 

27,094

 

 

83,651

 

 

60,918

 

Total revenue (FTE) (non-GAAP)

$

221,117

 

$

212,160

 

$

182,779

 

$

610,377

 

$

529,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

$

21,983,946

 

$

21,925,128

 

$

18,462,505

 

$

21,003,082

 

$

18,264,957

 

Net interest margin

 

3.31

%

 

3.39

%

 

3.27

%

 

3.28

%

 

3.35

%

Net interest margin (FTE)

 

3.38

%

 

3.46

%

 

3.35

%

 

3.35

%

 

3.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

$

24,803,723

 

$

24,761,413

 

$

20,736,236

 

$

24,803,723

 

$

20,736,236

 

Less: Ending goodwill

 

1,212,710

 

 

1,207,484

 

 

925,211

 

 

1,212,710

 

 

925,211

 

Less: Ending amortizable intangibles

 

90,176

 

 

95,980

 

 

21,277

 

 

90,176

 

 

21,277

 

Ending tangible assets (non-GAAP)

$

23,500,837

 

$

23,457,949

 

$

19,789,748

 

$

23,500,837

 

$

19,789,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

$

3,182,416

 

$

3,043,686

 

$

2,388,801

 

$

3,182,416

 

$

2,388,801

 

Less: Ending goodwill

 

1,212,710

 

 

1,207,484

 

 

925,211

 

 

1,212,710

 

 

925,211

 

Less: Ending amortizable intangibles

 

90,176

 

 

95,980

 

 

21,277

 

 

90,176

 

 

21,277

 

Less: Perpetual preferred stock

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

$

1,713,173

 

$

1,573,865

 

$

1,275,956

 

$

1,713,173

 

$

1,275,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

$

3,112,509

 

$

3,021,929

 

$

2,446,902

 

$

2,901,666

 

$

2,443,833

 

Less: Average goodwill

 

1,209,590

 

 

1,208,588

 

 

925,211

 

 

1,114,810

 

 

925,211

 

Less: Average amortizable intangibles

 

93,001

 

 

97,109

 

 

22,342

 

 

69,522

 

 

23,881

 

Less: Average perpetual preferred stock

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

$

1,643,562

 

$

1,549,876

 

$

1,332,993

 

$

1,550,978

 

$

1,328,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

$

73,448

 

$

22,194

 

$

51,050

 

$

142,445

 

$

136,010

 

Plus: Amortization of intangibles, tax effected

 

4,585

 

 

4,736

 

 

1,732

 

 

10,817

 

 

5,283

 

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

$

78,033

 

$

26,930

 

$

52,782

 

$

153,262

 

$

141,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

18.89

%

 

6.99

%

 

15.71

%

 

13.20

%

 

14.22

%

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

76,415

 

$

25,161

 

 

$

54,017

 

 

$

151,346

 

 

$

144,911

 

 

Plus: Merger-related costs, net of tax

 

1,085

 

 

 

24,236

 

 

 

1,965

 

 

 

26,884

 

 

 

1,965

 

 

Plus: Strategic cost saving initiatives, net of tax

 

—

 

 

 

—

 

 

 

6,851

 

 

 

—

 

 

 

9,959

 

 

Plus: FDIC special assessment, net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

664

 

 

 

—

 

 

Plus: Legal reserve, net of tax

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,950

 

 

Plus: Deferred tax asset write-down

 

—

 

 

 

4,774

 

 

 

—

 

 

 

4,774

 

 

 

—

 

 

Less: Gain (loss) on sale of securities, net of tax

 

3

 

 

 

(5,148

)

 

 

(21,799

)

 

 

(5,143

)

 

 

(32,384

)

 

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

 

—

 

 

 

—

 

 

 

21,883

 

 

 

—

 

 

 

21,883

 

 

Adjusted operating earnings (non-GAAP)

 

77,497

 

 

 

59,319

 

 

 

62,749

 

 

 

188,811

 

 

 

171,286

 

 

Less: Dividends on preferred stock

 

2,967

 

 

 

2,967

 

 

 

2,967

 

 

 

8,901

 

 

 

8,901

 

 

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

$

74,530

 

 

$

56,352

 

 

$

59,782

 

 

$

179,910

 

 

$

162,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Efficiency Ratio (1)(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

122,582

 

 

$

150,005

 

 

$

108,508

 

 

$

377,859

 

 

$

322,442

 

 

Less: Amortization of intangible assets

 

5,804

 

 

 

5,995

 

 

 

2,193

 

 

 

13,693

 

 

 

6,687

 

 

Less: Merger-related costs

 

1,353

 

 

 

29,778

 

 

 

1,993

 

 

 

33,005

 

 

 

1,993

 

 

Less: FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

840

 

 

 

—

 

 

Less: Strategic cost saving initiatives

 

—

 

 

 

—

 

 

 

8,672

 

 

 

—

 

 

 

12,607

 

 

Less: Legal reserve

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,000

 

 

Adjusted operating noninterest expense (non-GAAP)

$

115,425

 

 

$

114,232

 

 

$

95,650

 

 

$

330,321

 

 

$

296,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

34,286

 

 

$

23,812

 

 

$

27,094

 

 

$

83,651

 

 

$

60,918

 

 

Less: Gain (loss) on sale of securities

 

4

 

 

 

(6,516

)

 

 

(27,594

)

 

 

(6,510

)

 

 

(40,992

)

 

Less: Gain on sale-leaseback transaction

 

—

 

 

 

—

 

 

 

27,700

 

 

 

—

 

 

 

27,700

 

 

Adjusted operating noninterest income (non-GAAP)

$

34,282

 

 

$

30,328

 

 

$

26,988

 

 

$

90,161

 

 

$

74,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

186,831

 

 

$

188,348

 

 

$

155,685

 

 

$

526,726

 

 

$

468,667

 

 

Adjusted operating noninterest income (non-GAAP)

 

34,282

 

 

 

30,328

 

 

 

26,988

 

 

 

90,161

 

 

 

74,210

 

 

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

$

221,113

 

 

$

218,676

 

 

$

182,673

 

 

$

616,887

 

 

$

542,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

56.43

 

%

 

72.00

 

%

 

60.61

 

%

 

63.09

 

%

 

62.20

 

%

Efficiency ratio (FTE) (1)

 

55.44

 

%

 

70.70

 

%

 

59.37

 

%

 

61.91

 

%

 

60.89

 

%

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

 

52.20

 

%

 

52.24

 

%

 

52.36

 

%

 

53.55

 

%

 

54.55

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

$

77,497

 

 

$

59,319

 

 

$

62,749

 

 

$

188,811

 

 

$

171,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

$

24,613,518

 

 

$

24,620,198

 

 

$

20,596,189

 

 

$

23,489,608

 

 

$

20,397,518

 

 

Return on average assets (ROA) (GAAP)

 

1.24

 

%

 

0.41

 

%

 

1.04

 

%

 

0.86

 

%

 

0.95

 

%

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

 

1.25

 

%

 

0.97

 

%

 

1.21

 

%

 

1.07

 

%

 

1.12

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

$

3,112,509

 

 

$

3,021,929

 

 

$

2,446,902

 

 

$

2,901,666

 

 

$

2,443,833

 

 

Return on average equity (ROE) (GAAP)

 

9.77

 

%

 

3.35

 

%

 

8.76

 

%

 

6.97

 

%

 

7.93

 

%

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

 

9.91

 

%

 

7.90

 

%

 

10.17

 

%

 

8.69

 

%

 

9.37

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

74,530

 

 

$

56,352

 

 

$

59,782

 

 

$

179,910

 

 

$

162,385

 

 

Plus: Amortization of intangibles, tax effected

 

4,585

 

 

 

4,736

 

 

 

1,732

 

 

 

10,817

 

 

 

5,283

 

 

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

$

79,115

 

 

$

61,088

 

 

$

61,514

 

 

$

190,727

 

 

$

167,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

$

1,643,562

 

 

$

1,549,876

 

 

$

1,332,993

 

 

$

1,550,978

 

 

$

1,328,385

 

 

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

 

19.15

 

%

 

15.85

 

%

 

18.31

 

%

 

16.43

 

%

 

16.88

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

76,415

 

 

$

25,161

 

 

$

54,017

 

 

$

151,346

 

 

$

144,911

 

 

Plus: Provision for credit losses

 

2,603

 

 

 

21,751

 

 

 

4,991

 

 

 

32,592

 

 

 

22,911

 

 

Plus: Income tax expense

 

15,618

 

 

 

11,429

 

 

 

11,519

 

 

 

37,144

 

 

 

28,123

 

 

Plus: Merger-related costs

 

1,353

 

 

 

29,778

 

 

 

1,993

 

 

 

33,005

 

 

 

1,993

 

 

Plus: Strategic cost saving initiatives

 

—

 

 

 

—

 

 

 

8,672

 

 

 

—

 

 

 

12,607

 

 

Plus: FDIC special assessment

 

—

 

 

 

—

 

 

 

—

 

 

 

840

 

 

 

—

 

 

Plus: Legal reserve

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,000

 

 

Less: Gain (loss) on sale of securities, net of tax

 

4

 

 

 

(6,516

)

 

 

(27,594

)

 

 

(6,510

)

 

 

(40,992

)

 

Less: Gain on sale-leaseback transaction

 

—

 

 

 

—

 

 

 

27,700

 

 

 

—

 

 

 

27,700

 

 

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

$

95,985

 

 

$

94,635

 

 

$

81,086

 

 

$

261,437

 

 

$

228,837

 

 

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)

$

93,018

 

 

$

91,668

 

 

$

78,119

 

 

$

252,536

 

 

$

219,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

89,780,531

 

 

 

89,768,466

 

 

 

74,999,128

 

 

 

84,933,213

 

 

 

74,943,999

 

 

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

$

1.04

 

 

$

1.02

 

 

$

1.04

 

 

$

2.97

 

 

$

2.93

 

 

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

 

 

9/30/24

 

6/30/24

 

9/30/23

 

9/30/24

 

9/30/23

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinance Volume

$

4,285

 

$

4,234

 

$

2,239

 

$

14,157

 

$

9,767

 

Purchase Volume

 

56,634

 

 

48,487

 

 

35,815

 

 

136,889

 

 

100,175

 

Total Mortgage loan originations held for sale

$

60,919

 

$

52,721

 

$

38,054

 

$

151,046

 

$

109,942

 

% of originations held for sale that are refinances

 

7.0

%

 

8.0

%

 

5.9

%

 

9.4

%

 

8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under management

$

6,826,123

 

$

6,487,087

 

$

4,675,523

 

$

6,826,123

 

$

4,675,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period full-time equivalent employees

 

2,122

 

 

2,083

 

 

1,788

 

 

2,122

 

 

1,788

 

Number of full-service branches

 

129

 

 

129

 

 

109

 

 

129

 

 

109

 

Number of automatic transaction machines (ATMs)

 

149

 

 

149

 

 

123

 

 

149

 

 

123

 

 

__________________________________ 

(1)

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

(2)

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

(3)

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

(4)

These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, merger-related costs, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), FDIC special assessments, legal reserves associated with our previously disclosed settlement with the CFPB, deferred tax asset write-down, gain (loss) on sale of securities, and gain on sale-leaseback transaction. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the Company’s operations.

(5)

All ratios at September 30, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9 C. All other periods are presented as filed.

(6)

The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, merger-related costs, FDIC special assessments, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), legal reserves associated with our previously disclosed settlement with the CFPB, gain (loss) on sale of securities, and gain on sale-leaseback transaction. This measure is similar to the measure used by the Company when analyzing corporate performance and is also similar to the measure used for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.

(7)

These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, merger-related costs, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), FDIC special assessments, legal reserves associated with our previously disclosed settlement with the CFPB, gain (loss) on sale of securities, and gain on sale-leaseback transaction. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

September 30,

 

2024

 

2023

 

2023

ASSETS

(unaudited)

 

(audited)

 

(unaudited)

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash and due from banks

$

232,222

 

 

$

196,754

 

 

$

233,526

 

Interest-bearing deposits in other banks

 

291,163

 

 

 

167,601

 

 

 

159,718

 

Federal funds sold

 

4,685

 

 

 

13,776

 

 

 

5,701

 

Total cash and cash equivalents

 

528,070

 

 

 

378,131

 

 

 

398,945

 

Securities available for sale, at fair value

 

2,608,182

 

 

 

2,231,261

 

 

 

2,084,928

 

Securities held to maturity, at carrying value

 

807,080

 

 

 

837,378

 

 

 

843,269

 

Restricted stock, at cost

 

117,881

 

 

 

115,472

 

 

 

104,785

 

Loans held for sale

 

11,078

 

 

 

6,710

 

 

 

6,608

 

Loans held for investment, net of deferred fees and costs

 

18,337,299

 

 

 

15,635,043

 

 

 

15,283,620

 

Less: allowance for loan and lease losses

 

160,685

 

 

 

132,182

 

 

 

125,627

 

Total loans held for investment, net

 

18,176,614

 

 

 

15,502,861

 

 

 

15,157,993

 

Premises and equipment, net

 

115,093

 

 

 

90,959

 

 

 

94,510

 

Goodwill

 

1,212,710

 

 

 

925,211

 

 

 

925,211

 

Amortizable intangibles, net

 

90,176

 

 

 

19,183

 

 

 

21,277

 

Bank owned life insurance

 

489,759

 

 

 

452,565

 

 

 

449,452

 

Other assets

 

647,080

 

 

 

606,466

 

 

 

649,258

 

Total assets

$

24,803,723

 

 

$

21,166,197

 

 

$

20,736,236

 

LIABILITIES

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

4,422,909

 

 

$

3,963,181

 

 

$

4,144,949

 

Interest-bearing deposits

 

15,882,378

 

 

 

12,854,948

 

 

 

12,641,556

 

Total deposits

 

20,305,287

 

 

 

16,818,129

 

 

 

16,786,505

 

Securities sold under agreements to repurchase

 

59,227

 

 

 

110,833

 

 

 

134,936

 

Other short-term borrowings

 

375,000

 

 

 

810,000

 

 

 

495,000

 

Long-term borrowings

 

417,937

 

 

 

391,025

 

 

 

390,733

 

Other liabilities

 

463,856

 

 

 

479,883

 

 

 

540,261

 

Total liabilities

 

21,621,307

 

 

 

18,609,870

 

 

 

18,347,435

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

Common stock, $1.33 par value

 

118,494

 

 

 

99,147

 

 

 

99,120

 

Additional paid-in capital

 

2,277,024

 

 

 

1,782,286

 

 

 

1,779,281

 

Retained earnings

 

1,079,032

 

 

 

1,018,070

 

 

 

988,133

 

Accumulated other comprehensive loss

 

(292,307

)

 

 

(343,349

)

 

 

(477,906

)

Total stockholders' equity

 

3,182,416

 

 

 

2,556,327

 

 

 

2,388,801

 

Total liabilities and stockholders' equity

$

24,803,723

 

 

$

21,166,197

 

 

$

20,736,236

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

89,774,392

 

 

 

75,023,327

 

 

 

74,997,132

 

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,

 

2024

 

2024

 

2023

 

2024

 

2023

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

291,089

 

$

285,198

 

 

$

221,380

 

 

$

810,886

 

 

$

616,544

 

Interest on deposits in other banks

 

1,060

 

 

 

2,637

 

 

 

1,309

 

 

 

4,977

 

 

 

3,815

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

24,247

 

 

 

24,886

 

 

 

16,055

 

 

 

68,012

 

 

 

48,373

 

Nontaxable

 

8,132

 

 

 

8,167

 

 

 

8,415

 

 

 

24,455

 

 

 

26,220

 

Total interest and dividend income

 

324,528

 

 

 

320,888

 

 

 

247,159

 

 

 

908,330

 

 

 

694,952

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

130,216

 

 

 

122,504

 

 

 

83,590

 

 

 

354,584

 

 

 

200,690

 

Interest on short-term borrowings

 

5,698

 

 

 

8,190

 

 

 

6,499

 

 

 

22,049

 

 

 

22,106

 

Interest on long-term borrowings

 

5,682

 

 

 

5,660

 

 

 

5,129

 

 

 

16,407

 

 

 

14,687

 

Total interest expense

 

141,596

 

 

 

136,354

 

 

 

95,218

 

 

 

393,040

 

 

 

237,483

 

Net interest income

 

182,932

 

 

 

184,534

 

 

 

151,941

 

 

 

515,290

 

 

 

457,469

 

Provision for credit losses

 

2,603

 

 

 

21,751

 

 

 

4,991

 

 

 

32,592

 

 

 

22,911

 

Net interest income after provision for credit losses

 

180,329

 

 

 

162,783

 

 

 

146,950

 

 

 

482,698

 

 

 

434,558

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

9,792

 

 

 

9,086

 

 

 

8,557

 

 

 

27,447

 

 

 

24,577

 

Other service charges, commissions and fees

 

2,002

 

 

 

1,967

 

 

 

2,632

 

 

 

5,700

 

 

 

6,071

 

Interchange fees

 

3,371

 

 

 

3,126

 

 

 

2,314

 

 

 

8,791

 

 

 

7,098

 

Fiduciary and asset management fees

 

6,858

 

 

 

6,907

 

 

 

4,549

 

 

 

18,603

 

 

 

13,169

 

Mortgage banking income

 

1,214

 

 

 

1,193

 

 

 

666

 

 

 

3,274

 

 

 

1,969

 

Gain (loss) on sale of securities

 

4

 

 

 

(6,516

)

 

 

(27,594

)

 

 

(6,510

)

 

 

(40,992

)

Bank owned life insurance income

 

5,037

 

 

 

3,791

 

 

 

2,973

 

 

 

12,074

 

 

 

8,671

 

Loan-related interest rate swap fees

 

1,503

 

 

 

1,634

 

 

 

2,695

 

 

 

4,353

 

 

 

6,450

 

Other operating income

 

4,505

 

 

 

2,624

 

 

 

30,302

 

 

 

9,919

 

 

 

33,905

 

Total noninterest income

 

34,286

 

 

 

23,812

 

 

 

27,094

 

 

 

83,651

 

 

 

60,918

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

69,454

 

 

 

68,531

 

 

 

57,449

 

 

 

199,867

 

 

 

179,996

 

Occupancy expenses

 

7,806

 

 

 

7,836

 

 

 

6,053

 

 

 

22,267

 

 

 

18,503

 

Furniture and equipment expenses

 

3,685

 

 

 

3,805

 

 

 

3,449

 

 

 

10,799

 

 

 

10,765

 

Technology and data processing

 

9,737

 

 

 

10,274

 

 

 

7,923

 

 

 

28,138

 

 

 

24,631

 

Professional services

 

3,994

 

 

 

4,377

 

 

 

3,291

 

 

 

11,452

 

 

 

11,138

 

Marketing and advertising expense

 

3,308

 

 

 

2,983

 

 

 

2,219

 

 

 

8,609

 

 

 

7,387

 

FDIC assessment premiums and other insurance

 

5,282

 

 

 

4,675

 

 

 

4,258

 

 

 

15,099

 

 

 

12,231

 

Franchise and other taxes

 

5,256

 

 

 

5,013

 

 

 

4,510

 

 

 

14,770

 

 

 

13,508

 

Loan-related expenses

 

1,445

 

 

 

1,275

 

 

 

1,388

 

 

 

4,043

 

 

 

4,560

 

Amortization of intangible assets

 

5,804

 

 

 

5,995

 

 

 

2,193

 

 

 

13,693

 

 

 

6,687

 

Merger-related costs

 

1,353

 

 

 

29,778

 

 

 

1,993

 

 

 

33,005

 

 

 

1,993

 

Other expenses

 

5,458

 

 

 

5,463

 

 

 

13,782

 

 

 

16,117

 

 

 

31,043

 

Total noninterest expenses

 

122,582

 

 

 

150,005

 

 

 

108,508

 

 

 

377,859

 

 

 

322,442

 

Income before income taxes

 

92,033

 

 

 

36,590

 

 

 

65,536

 

 

 

188,490

 

 

 

173,034

 

Income tax expense

 

15,618

 

 

 

11,429

 

 

 

11,519

 

 

 

37,144

 

 

 

28,123

 

Net Income

$

76,415

 

 

$

25,161

 

 

$

54,017

 

 

$

151,346

 

 

$

144,911

 

Dividends on preferred stock

 

2,967

 

 

 

2,967

 

 

 

2,967

 

 

 

8,901

 

 

 

8,901

 

Net income available to common shareholders

$

73,448

 

 

$

22,194

 

 

$

51,050

 

 

$

142,445

 

 

$

136,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.82

 

 

$

0.25

 

 

$

0.68

 

 

$

1.68

 

 

$

1.81

 

Diluted earnings per common share

$

0.82

 

 

$

0.25

 

 

$

0.68

 

 

$

1.68

 

 

$

1.81

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

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

(Dollars in thousands)

 

For the Quarter Ended

 

September 30, 2024

 

June 30, 2024

Average Balance

 

Interest Income / Expense (1)

 

Yield / Rate (1)(2)

 

Average Balance

 

Interest Income / Expense (1)

 

Yield / Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

2,248,207

 

 

$

24,247

 

4.29

%

 

$

2,221,486

 

 

$

24,886

 

4.51

%

Tax-exempt

 

1,253,672

 

 

 

10,293

 

 

3.27

%

 

 

1,255,404

 

 

 

10,338

 

 

3.31

%

Total securities

 

3,501,879

 

 

 

34,540

 

 

3.92

%

 

 

3,476,890

 

 

 

35,224

 

 

4.07

%

LHFI, net of deferred fees and costs (3)(4)

 

18,320,122

 

 

 

292,469

 

 

6.35

%

 

 

18,154,673

 

 

 

286,391

 

 

6.34

%

Other earning assets

 

161,945

 

 

 

1,418

 

 

3.48

%

 

 

293,565

 

 

 

3,087

 

 

4.23

%

Total earning assets

 

21,983,946

 

 

$

328,427

 

 

5.94

%

 

 

21,925,128

 

 

$

324,702

 

 

5.96

%

Allowance for loan and lease losses

 

(159,023

)

 

 

 

 

 

 

 

(157,204

)

 

 

 

 

 

Total non-earning assets

 

2,788,595

 

 

 

 

 

 

 

 

2,852,274

 

 

 

 

 

 

Total assets

$

24,613,518

 

 

 

 

 

 

 

$

24,620,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction and money market accounts

$

9,932,247

 

 

$

74,996

 

 

3.00

%

 

$

10,117,794

 

 

$

74,833

 

 

2.97

%

Regular savings

 

1,046,511

 

 

 

579

 

 

0.22

%

 

 

1,076,411

 

 

 

555

 

 

0.21

%

Time deposits (5)

 

4,758,039

 

 

 

54,641

 

 

4.57

%

 

 

4,243,344

 

 

 

47,116

 

 

4.47

%

Total interest-bearing deposits

 

15,736,797

 

 

 

130,216

 

 

3.29

%

 

 

15,437,549

 

 

 

122,504

 

 

3.19

%

Other borrowings (6)

 

855,306

 

 

 

11,380

 

 

5.29

%

 

 

1,043,297

 

 

 

13,850

 

 

5.34

%

Total interest-bearing liabilities

$

16,592,103

 

 

$

141,596

 

 

3.40

%

 

$

16,480,846

 

 

$

136,354

 

 

3.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,437,361

 

 

 

 

 

 

 

 

4,596,129

 

 

 

 

 

 

Other liabilities

 

471,545

 

 

 

 

 

 

 

 

521,294

 

 

 

 

 

 

Total liabilities

 

21,501,009

 

 

 

 

 

 

 

 

21,598,269

 

 

 

 

 

 

Stockholders' equity

 

3,112,509

 

 

 

 

 

 

 

 

3,021,929

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

24,613,518

 

 

 

 

 

 

 

$

24,620,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE)

 

 

 

$

186,831

 

 

 

 

 

 

 

$

188,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

2.54

%

 

 

 

 

 

 

 

2.63

%

Cost of funds

 

 

 

 

 

 

2.56

%

 

 

 

 

 

 

 

2.50

%

Net interest margin (FTE)

 

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

3.46

%

______________________

(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 rounded amounts in thousands, which appear above.

(3)

Nonaccrual loans are included in average loans outstanding.

(4)

Interest income on loans includes $13.9 million and $15.7 million for the three months ended September 30, 2024 and June 30, 2024, respectively, in accretion of the fair market value adjustments related to acquisitions.

(5)

Interest expense on time deposits includes $913,000 and $1.0 million for the three months ended September 30, 2024 and June 30, 2024, respectively, in accretion of the fair market value adjustments related to acquisitions.

(6)

Interest expense on borrowings includes $288,000 and $285,000 for the three months ended September 30, 2024 and June 30, 2024, respectively, in amortization of the fair market value adjustments related to acquisitions.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021233359/en/

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