Atlantic Union Bankshares Reports First Quarter Financial Results

Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $46.8 million and basic and diluted earnings per common share of $0.62 for the first quarter of 2024 and adjusted operating earnings available to common shareholders(1) of $49.0 million and adjusted diluted operating earnings per common share(1) of $0.65 for the first quarter of 2024.

Merger with American National Bankshares Inc. (“American National”)

On April 1, 2024, the Company completed its merger with American National. Under the terms of the merger agreement, at the effective time of the merger, each outstanding share of American National common stock was converted into 1.35 shares of the Company’s common stock. With the acquisition of American National, we acquired 26 branches, deepening our presence in Central, Western and Southern Virginia and providing entry into North Carolina’s Piedmont Triad region and Raleigh.

During the first quarter of 2024, the Company incurred pre-tax merger costs of approximately $1.9 million related to the merger with American National. Because the merger closed on April 1, 2024, the historical consolidated financial results of American National are not included in the Company’s results of operations for the quarter ended March 31, 2024.

“Atlantic Union delivered good operating metrics in the first quarter as the industry saw continued pressure from the higher for longer interest rate environment and economic uncertainty,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Our markets remain healthy, and we grew loans at an annualized mid-single digit rate and more than funded them with growth in customer deposits. Credit metrics remained stable, and operating expenses were well managed in line with our 2024 financial plan. We continue to believe that our business model of a diversified, traditional, full-service bank that delivers the products and services that our customers want and need, combined with local decision making, responsiveness, and client service orientation positively sets us apart from other banks, both larger and smaller. 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.

“I want to welcome our new shareholders, customers and Teammates from the American National Bankshares merger which closed on April 1, 2024. We look forward to a successful integration of American National into Atlantic Union and believe that this combination will be a catalyst for future growth and differentiated financial performance."

NET INTEREST INCOME

For the first quarter of 2024, net interest income was $147.8 million, a decrease of $5.7 million from $153.5 million in the fourth quarter of 2023. Net interest income (FTE)(1) was $151.5 million in the first quarter of 2024, a decrease of $5.8 million from $157.3 million in the fourth quarter of 2023. The decreases in net interest income and net interest income (FTE)( 1) were primarily driven by higher deposit costs due to growth in average deposit balances and changes in the deposit mix as depositors continued to migrate to higher costing interest bearing deposit accounts and the lower day count in the quarter, as well as higher short-term borrowing costs due to an increase in average short-term borrowings in the quarter. These decreases were partially offset by higher yields on the loan portfolio and higher average balances of loans held for investment (“LHFI”). Both our net interest margin and net interest margin (FTE)(1) decreased 15 basis points from the prior quarter to 3.11% and 3.19%, respectively, for the quarter ended March 31, 2024, reflecting higher cost of funds, partially offset by higher yields on earning assets. Earning asset yields for the first quarter of 2024 increased 3 basis points to 5.62% compared to the fourth quarter of 2023, primarily due to higher yields on LHFI, as well as loan growth. The Company’s cost of funds increased by 18 basis points to 2.43% at March 31, 2024 compared to the prior quarter, due primarily to higher deposit costs driven by higher rates and changes in the deposit mix 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 $602,000 for the quarter ended March 31, 2024. The impact of net accretion in the fourth quarter of 2023 and first quarter of 2024 are reflected in the following table (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended December 31, 2023

 

$

937

 

$

(4

)

 

$

(215

)

 

$

718

For the quarter ended March 31, 2024

 

 

819

 

 

 

(1

)

 

 

(216

)

 

 

602

 

ASSET QUALITY

Overview

At March 31, 2024, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.23%, a decrease of 1 basis point from the prior quarter and included nonaccrual loans of $36.4 million. Accruing past due loans as a percentage of total LHFI totaled 32 basis points at March 31, 2024, an increase of 1 basis point from December 31, 2023 and an increase of 11 basis points from March 31, 2023. Net charge-offs were 0.13% of total average LHFI (annualized) for the first quarter of 2024, an increase of 10 basis points from December 31, 2023 and consistent with March 31, 2023. The net charge-offs in the first quarter of 2024 were primarily related to two credit relationships, which were previously reserved for in the prior quarter’s allowance for credit losses (“ACL”). The ACL totaled $151.8 million at March 31, 2024, a $3.3 million increase from the prior quarter, reflecting the impact of loan growth and continued uncertainty in the economic outlook on certain portfolios.

Nonperforming Assets

At March 31, 2024, NPAs totaled $36.4 million, compared to $36.9 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2024

 

2023

 

2023

 

2023

 

2023

Nonaccrual loans

 

$

36,389

 

$

36,860

 

$

28,626

 

$

29,105

 

$

29,082

Foreclosed properties

 

 

29

 

 

 

29

 

 

 

149

 

 

 

50

 

 

 

29

 

Total nonperforming assets

 

$

36,418

 

 

$

36,889

 

 

$

28,775

 

 

$

29,155

 

 

$

29,111

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

2024

 

2023

 

2023

 

2023

 

2023

Beginning Balance

 

$

36,860

 

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

Net customer payments

 

 

(1,583

)

 

 

(2,198

)

 

 

(1,947

)

 

 

(5,950

)

 

 

(1,755

)

Additions

 

 

5,047

 

 

 

10,604

 

 

 

1,651

 

 

 

6,685

 

 

 

4,151

 

Charge-offs

 

 

(3,935

)

 

 

(172

)

 

 

(64

)

 

 

(712

)

 

 

(39

)

Loans returning to accruing status

 

 

 

 

 

 

 

 

(119

)

 

 

 

 

 

(313

)

Ending Balance

 

$

36,389

 

 

$

36,860

 

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

Past Due Loans

At March 31, 2024, past due loans still accruing interest totaled $50.7 million or 0.32% of total LHFI, compared to $48.4 million or 0.31% of total LHFI at December 31, 2023, and $30.9 million or 0.21% of total LHFI at March 31, 2023. The increase in past due loan levels at March 31, 2024 from December 31, 2023 and March 31, 2023 was primarily within the 30-59 days past due category. Of the total past due loans still accruing interest, $11.4 million or 0.07% of total LHFI were past due 90 days or more at March 31, 2024, compared to $13.9 million or 0.09% of total LHFI at December 31, 2023, and $7.2 million or 0.05% of total LHFI at March 31, 2023.

Allowance for Credit Losses

At March 31, 2024, the ACL was $151.8 million and included an allowance for loan and lease losses (“ALLL”) of $136.2 million and a reserve for unfunded commitments of $15.6 million. The ACL at March 31, 2024 increased $3.3 million from December 31, 2023 primarily due to loan growth in the first quarter of 2024 and the impact of continued uncertainty in the economic outlook on certain portfolios.

The ACL as a percentage of total LHFI was 0.96% at March 31, 2024, an increase of 1 basis point from December 31, 2023. The ALLL as a percentage of total LHFI was 0.86% at March 31, 2024, compared to 0.85% at December 31, 2023.

Net Charge-offs

Net charge-offs were $4.9 million or 0.13% of total average LHFI on an annualized basis for the first quarter of 2024, compared to $1.2 million or 0.03% (annualized) for the fourth quarter of 2023, and $4.6 million or 0.13% (annualized) for the first quarter of 2023. The net charge-offs in the first quarter of 2024 were primarily related to two credit relationships, which were previously reserved for in the prior quarter’s ACL.

Provision for Credit Losses

For the first quarter of 2024, the Company recorded a provision for credit losses of $8.2 million, compared to a provision for credit losses of $8.7 million in the prior quarter, and a provision for credit losses of $11.9 million in the first quarter of 2023.

NONINTEREST INCOME

Noninterest income decreased $4.4 million to $25.6 million for the first quarter of 2024 from $30.0 million in the prior quarter, primarily driven by a $2.4 million decrease in loan-related interest swap fees in the first quarter as swap transactions decreased from the seasonally high fourth quarter, and a $2.2 million decrease in other operating income, as the prior quarter included a $1.9 million gain related to a sale-leaseback transaction of one branch location.

NONINTEREST EXPENSE

Noninterest expense decreased $2.6 million to $105.3 million for the first quarter of 2024 from $107.9 million in the prior quarter, primarily driven by a $3.5 million decrease in other expenses, which included a $3.3 million legal reserve incurred in the prior quarter related to our previously disclosed settlement with the CFPB; a $2.5 million decrease in FDIC assessment premiums and other insurance, which included a $3.4 million FDIC special assessment in the prior quarter, compared to $840,000 in the first quarter of 2024; a $1.3 million decrease in professional services expense primarily due to a decrease in costs related to strategic initiatives as the Company focused on completing its merger with American National; and a $700,000 decrease in marketing and advertising expenses. These decreases were partially offset by a $5.2 million increase in salaries and benefits due to seasonal increases in payroll related taxes and 401(k) contribution expenses in the first quarter.

INCOME TAXES

The effective tax rate for the three months ended March 31, 2024 and 2023 was 16.9% and 17.0%, respectively.

BALANCE SHEET

At March 31, 2024, total assets were $21.4 billion, an increase of $211.9 million or approximately 4.0% (annualized) from December 31, 2023 and $1.3 billion or approximately 6.3% from March 31, 2023. The increases in total assets were primarily driven by growth in LHFI (net of deferred fees and costs).

At March 31, 2024, LHFI (net of deferred fees and costs) totaled $15.9 billion, an increase of $216.6 million or 5.6% (annualized) from $15.6 billion at December 31, 2023, and an increase of $1.3 billion or 8.7% from March 31, 2023. Quarterly average LHFI (net of deferred fees and costs) totaled $15.7 billion at March 31, 2024, an increase of $338.1 million or 8.8% (annualized) from the prior quarter, and an increase of $1.2 billion or 8.5% from March 31, 2023. LHFI (net of deferred fees and costs) increased from the prior quarter primarily due to increases in the construction and land development and other commercial loan portfolios, and increased from the same period in the prior year primarily due to increases in the commercial and industrial, commercial real estate non-owner occupied, multifamily real estate, and other commercial loan portfolios.

At March 31, 2024, total investments were $3.1 billion, a decrease of $42.7 million or 5.4% (annualized) from December 31, 2023, and a decrease of $54.0 million or 1.7% from March 31, 2023. Available for sale (“AFS”) securities totaled $2.2 billion at both March 31, 2024 and December 31, 2023 and decreased slightly from $2.3 billion at March 31, 2023. Total net unrealized losses on the AFS securities portfolio were $410.9 million at March 31, 2024, compared to $384.3 million at December 31, 2023 and $407.9 million at March 31, 2023. Held to maturity securities are carried at cost and totaled $828.9 million at March 31, 2024, $837.4 million at December 31, 2023, and $855.4 million at March 31, 2023 and had net unrealized losses of $37.6 million at March 31, 2024, compared to $29.3 million at December 31, 2023 and $32.3 million at March 31, 2023.

At March 31, 2024, total deposits were $17.3 billion, an increase of $460.3 million or 11.0% (annualized) from the prior quarter. Average deposits at March 31, 2024 increased from the prior quarter by $33.8 million or 0.8% (annualized). Total deposits at March 31, 2024 increased $822.5 million or 5.0% from March 31, 2023, and quarterly average deposits at March 31, 2024 increased $730.0 million or 4.4% from the same period in the prior year. Total deposits increased from the prior quarter and the same period in the prior year primarily due to increases in interest bearing customer deposits and brokered deposits, partially offset by decreases in demand deposits.

At March 31, 2024, total borrowings were $1.1 billion, a decrease of $254.1 million from December 31, 2023 and an increase of $258.8 million from March 31, 2023. At March 31, 2024, average borrowings were $1.0 billion, an increase of $220.5 million from December 31, 2023, and a decrease of $108.2 million from March 31, 2023. The increase in average borrowings from the prior quarter was primarily driven by increased use of short-term borrowings to fund loan growth, while the decrease from the same period in the prior year was due to paydowns of short-term borrowings due to deposit growth.

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

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2024

 

2023

 

2023

 

Common equity Tier 1 capital ratio (2)

 

9.87

%

9.84

%

9.91

%

Tier 1 capital ratio (2)

 

10.77

%

10.76

%

10.89

%

Total capital ratio (2)

 

13.62

%

13.55

%

13.76

%

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

 

9.62

%

9.63

%

9.38

%

Common equity to total assets

 

11.14

%

11.29

%

11.31

%

Tangible common equity to tangible assets (1)

 

7.05

%

7.15

%

6.91

%

_________________________

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

_________________________

(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 March 31, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 135 branches and approximately 150 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of April 1, 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.

FIRST 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 Tuesday, April 23, 2024, during which management will review our financial results for the first quarter 2024 and provide an update on our recent activities.

The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/m7656v4x.

For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BI5e168257724b4c1d8f709d38b7cc139c. 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 March 31, 2024, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to 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;
  • 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 impact of purchase accounting with respect to our merger with American National, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine the fair value and credit marks;
  • the possibility that the anticipated benefits of our merger with American National, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy, competitive factors in the areas where we do business, or as a result of other unexpected factors or events;
  • potential adverse reactions or changes to business or employee relationships, including those resulting from our merger with American National;
  • the integration of the business and operations of American National may take longer or be more costly than anticipated;
  • 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;
  • our liquidity and capital positions;
  • 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;
  • legislative or regulatory changes and requirements;
  • 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;
  • the effects of changes in federal, state or local tax laws and regulations;
  • 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

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Results of Operations

 

 

 

 

 

 

 

 

 

Interest and dividend income

$

262,915

 

$

259,497

 

$

217,546

 

Interest expense

 

115,090

 

 

105,953

 

 

64,103

 

Net interest income

 

147,825

 

 

153,544

 

 

153,443

 

Provision for credit losses

 

8,239

 

 

8,707

 

 

11,850

 

Net interest income after provision for credit losses

 

139,586

 

 

144,837

 

 

141,593

 

Noninterest income

 

25,552

 

 

29,959

 

 

9,628

 

Noninterest expenses

 

105,273

 

 

107,929

 

 

108,274

 

Income before income taxes

 

59,865

 

 

66,867

 

 

42,947

 

Income tax expense

 

10,096

 

 

9,960

 

 

7,294

 

Net income

 

49,769

 

 

56,907

 

 

35,653

 

Dividends on preferred stock

 

2,967

 

 

2,967

 

 

2,967

 

Net income available to common shareholders

$

46,802

 

$

53,940

 

$

32,686

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

$

266,636

 

$

263,209

 

$

221,334

 

Net interest income (FTE) (1)

 

151,546

 

 

157,256

 

 

157,231

 

Total revenue (FTE) (1)

 

177,098

 

 

187,215

 

 

166,859

 

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

 

70,815

 

 

81,356

 

 

73,197

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

$

0.62

 

$

0.72

 

$

0.44

 

Return on average assets (ROA)

 

0.94

%

 

1.08

%

 

0.71

%

Return on average equity (ROE)

 

7.79

%

 

9.29

%

 

5.97

%

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

 

13.32

%

 

16.72

%

 

10.71

%

Efficiency ratio

 

60.72

%

 

58.82

%

 

66.40

%

Efficiency ratio (FTE) (1)

 

59.44

%

 

57.65

%

 

64.89

%

Net interest margin

 

3.11

%

 

3.26

%

 

3.41

%

Net interest margin (FTE) (1)

 

3.19

%

 

3.34

%

 

3.50

%

Yields on earning assets (FTE) (1)

 

5.62

%

 

5.59

%

 

4.92

%

Cost of interest-bearing liabilities

 

3.23

%

 

3.04

%

 

2.02

%

Cost of deposits

 

2.39

%

 

2.23

%

 

1.28

%

Cost of funds

 

2.43

%

 

2.25

%

 

1.42

%

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

$

51,994

 

$

61,820

 

$

50,189

 

Adjusted operating earnings available to common shareholders

 

49,027

 

 

58,853

 

 

47,222

 

Adjusted operating earnings per common share, diluted

$

0.65

 

$

0.78

 

$

0.63

 

Adjusted operating ROA

 

0.99

%

 

1.18

%

 

1.00

%

Adjusted operating ROE

 

8.14

%

 

10.09

%

 

8.40

%

Adjusted operating ROTCE (2) (3)

 

13.93

%

 

18.20

%

 

15.22

%

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

 

56.84

%

 

52.97

%

 

56.03

%

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

$

0.62

 

$

0.72

 

$

0.44

 

Earnings per common share, diluted

 

0.62

 

 

0.72

 

 

0.44

 

Cash dividends paid per common share

 

0.32

 

 

0.32

 

 

0.30

 

Market value per share

 

35.31

 

 

36.54

 

 

35.05

 

Book value per common share

 

31.88

 

 

32.06

 

 

30.53

 

Tangible book value per common share (2)

 

19.27

 

 

19.39

 

 

17.78

 

Price to earnings ratio, diluted

 

14.11

 

 

12.80

 

 

19.77

 

Price to book value per common share ratio

 

1.11

 

 

1.14

 

 

1.15

 

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

 

1.83

 

 

1.88

 

 

1.97

 

Weighted average common shares outstanding, basic

 

75,197,113

 

 

75,016,402

 

 

74,832,141

 

Weighted average common shares outstanding, diluted

 

75,197,376

 

 

75,016,858

 

 

74,835,514

 

Common shares outstanding at end of period

 

75,381,740

 

 

75,023,327

 

 

74,989,228

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Capital Ratios

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

9.87

%

 

9.84

%

 

9.91

%

Tier 1 capital ratio (5)

 

10.77

%

 

10.76

%

 

10.89

%

Total capital ratio (5)

 

13.62

%

 

13.55

%

 

13.76

%

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

 

9.62

%

 

9.63

%

 

9.38

%

Common equity to total assets

 

11.14

%

 

11.29

%

 

11.31

%

Tangible common equity to tangible assets (2)

 

7.05

%

 

7.15

%

 

6.91

%

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

Assets

$

21,378,120

 

$

21,166,197

 

$

20,103,370

 

LHFI (net of deferred fees and costs)

 

15,851,628

 

 

15,635,043

 

 

14,584,280

 

Securities

 

3,141,416

 

 

3,184,111

 

 

3,195,399

 

Earning Assets

 

19,236,100

 

 

19,010,309

 

 

17,984,057

 

Goodwill

 

925,211

 

 

925,211

 

 

925,211

 

Amortizable intangibles, net

 

17,288

 

 

19,183

 

 

24,482

 

Deposits

 

17,278,435

 

 

16,818,129

 

 

16,455,910

 

Borrowings

 

1,057,724

 

 

1,311,858

 

 

798,910

 

Stockholders' equity

 

2,548,928

 

 

2,556,327

 

 

2,440,236

 

Tangible common equity (2)

 

1,440,072

 

 

1,445,576

 

 

1,324,186

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

Construction and land development

$

1,246,251

 

$

1,107,850

 

$

1,179,872

 

Commercial real estate - owner occupied

 

1,981,613

 

 

1,998,787

 

 

1,956,585

 

Commercial real estate - non-owner occupied

 

4,225,018

 

 

4,172,401

 

 

3,968,085

 

Multifamily real estate

 

1,074,957

 

 

1,061,997

 

 

822,006

 

Commercial & Industrial

 

3,561,971

 

 

3,589,347

 

 

3,082,478

 

Residential 1-4 Family - Commercial

 

515,667

 

 

522,580

 

 

522,760

 

Residential 1-4 Family - Consumer

 

1,081,094

 

 

1,078,173

 

 

974,511

 

Residential 1-4 Family - Revolving

 

616,951

 

 

619,433

 

 

589,791

 

Auto

 

440,118

 

 

486,926

 

 

600,658

 

Consumer

 

113,414

 

 

120,641

 

 

145,090

 

Other Commercial

 

994,574

 

 

876,908

 

 

742,444

 

Total LHFI

$

15,851,628

 

$

15,635,043

 

$

14,584,280

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Interest checking accounts

$

4,753,485

 

$

4,697,819

 

$

4,714,366

 

Money market accounts

 

4,104,282

 

 

3,850,679

 

 

3,547,514

 

Savings accounts

 

895,213

 

 

909,223

 

 

1,047,914

 

Customer time deposits of $250,000 and over

 

721,155

 

 

674,939

 

 

541,447

 

Other customer time deposits

 

2,293,800

 

 

2,173,904

 

 

1,648,747

 

Time deposits

 

3,014,955

 

 

2,848,843

 

 

2,190,194

 

Total interest-bearing customer deposits

 

12,767,935

 

 

12,306,564

 

 

11,499,988

 

Brokered deposits

 

665,309

 

 

548,384

 

 

377,913

 

Total interest-bearing deposits

$

13,433,244

 

$

12,854,948

 

$

11,877,901

 

Demand deposits

 

3,845,191

 

 

3,963,181

 

 

4,578,009

 

Total deposits

$

17,278,435

 

$

16,818,129

 

$

16,455,910

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

Assets

$

21,222,756

 

$

20,853,306

 

$

20,384,351

 

LHFI (net of deferred fees and costs)

 

15,732,599

 

 

15,394,500

 

 

14,505,611

 

Loans held for sale

 

9,142

 

 

6,470

 

 

5,876

 

Securities

 

3,153,556

 

 

3,031,475

 

 

3,467,561

 

Earning assets

 

19,089,393

 

 

18,676,967

 

 

18,238,088

 

Deposits

 

17,147,181

 

 

17,113,369

 

 

16,417,212

 

Time deposits

 

3,459,138

 

 

3,128,048

 

 

2,291,530

 

Interest-bearing deposits

 

13,311,837

 

 

13,026,138

 

 

11,723,865

 

Borrowings

 

1,012,797

 

 

792,629

 

 

1,122,244

 

Interest-bearing liabilities

 

14,324,634

 

 

13,818,767

 

 

12,846,109

 

Stockholders' equity

 

2,568,243

 

 

2,430,711

 

 

2,423,600

 

Tangible common equity (2)

 

1,458,478

 

 

1,318,952

 

 

1,306,445

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Asset Quality

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

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

$

132,182

 

$

125,627

 

$

110,768

 

Add: Recoveries

 

977

 

 

853

 

 

1,167

 

Less: Charge-offs

 

5,894

 

 

2,038

 

 

5,726

 

Add: Provision for loan losses

 

8,925

 

 

7,740

 

 

10,303

 

Ending balance, ALLL

$

136,190

 

$

132,182

 

$

116,512

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

$

16,269

 

$

15,302

 

$

13,675

 

Add: Provision for unfunded commitments

 

(687)

 

 

967

 

 

1,524

 

Ending balance, RUC

$

15,582

 

$

16,269

 

$

15,199

 

Total ACL

$

151,772

 

$

148,451

 

$

131,711

 

 

 

 

 

 

 

 

 

 

 

ACL / total LHFI

 

0.96

%

 

0.95

%

 

0.90

%

ALLL / total LHFI

 

0.86

%

 

0.85

%

 

0.80

%

Net charge-offs / total average LHFI (annualized)

 

0.13

%

 

0.03

%

 

0.13

%

Provision for loan losses/ total average LHFI (annualized)

 

0.23

%

 

0.20

%

 

0.29

%

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

Construction and land development

$

342

 

$

348

 

$

363

 

Commercial real estate - owner occupied

 

2,888

 

 

3,001

 

 

6,174

 

Commercial real estate - non-owner occupied

 

10,335

 

 

12,616

 

 

1,481

 

Commercial & Industrial

 

6,480

 

 

4,556

 

 

4,815

 

Residential 1-4 Family - Commercial

 

1,790

 

 

1,804

 

 

1,907

 

Residential 1-4 Family - Consumer

 

10,990

 

 

11,098

 

 

10,540

 

Residential 1-4 Family - Revolving

 

3,135

 

 

3,087

 

 

3,449

 

Auto

 

429

 

 

350

 

 

347

 

Consumer

 

 

 

 

 

6

 

Nonaccrual loans

$

36,389

 

$

36,860

 

$

29,082

 

Foreclosed property

 

29

 

 

29

 

 

29

 

Total nonperforming assets (NPAs)

$

36,418

 

$

36,889

 

$

29,111

 

Construction and land development

$

171

 

$

25

 

$

249

 

Commercial real estate - owner occupied

 

3,634

 

 

2,579

 

 

2,133

 

Commercial real estate - non-owner occupied

 

1,197

 

 

2,967

 

 

1,032

 

Multifamily real estate

 

144

 

 

 

 

 

Commercial & Industrial

 

1,860

 

 

782

 

 

633

 

Residential 1-4 Family - Commercial

 

1,030

 

 

1,383

 

 

232

 

Residential 1-4 Family - Consumer

 

1,641

 

 

4,470

 

 

859

 

Residential 1-4 Family - Revolving

 

1,343

 

 

1,095

 

 

1,766

 

Auto

 

284

 

 

410

 

 

137

 

Consumer

 

141

 

 

152

 

 

137

 

Other Commercial

 

 

 

 

 

66

 

LHFI ≥ 90 days and still accruing

$

11,445

 

$

13,863

 

$

7,244

 

Total NPAs and LHFI ≥ 90 days

$

47,863

 

$

50,752

 

$

36,355

 

NPAs / total LHFI

 

0.23

%

 

0.24

%

 

0.20

%

NPAs / total assets

 

0.17

%

 

0.17

%

 

0.14

%

ALLL / nonaccrual loans

 

374.26

%

 

358.61

%

 

400.63

%

ALLL/ nonperforming assets

 

373.96

%

 

358.32

%

 

400.23

%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Past Due Detail

 

 

 

 

 

 

 

 

 

Construction and land development

$

2,163

 

$

270

 

$

815

 

Commercial real estate - owner occupied

 

3,663

 

 

1,575

 

 

2,251

 

Commercial real estate - non-owner occupied

 

2,271

 

 

545

 

 

52

 

Commercial & Industrial

 

5,540

 

 

4,303

 

 

981

 

Residential 1-4 Family - Commercial

 

1,407

 

 

567

 

 

1,399

 

Residential 1-4 Family - Consumer

 

6,070

 

 

7,546

 

 

11,579

 

Residential 1-4 Family - Revolving

 

1,920

 

 

2,238

 

 

1,384

 

Auto

 

3,192

 

 

4,737

 

 

2,026

 

Consumer

 

418

 

 

770

 

 

295

 

Other Commercial

 

8,187

 

 

6,569

 

 

 

LHFI 30-59 days past due

$

34,831

 

$

29,120

 

$

20,782

 

Construction and land development

$

1,097

 

$

24

 

$

 

Commercial real estate - owner occupied

 

 

 

 

 

798

 

Commercial real estate - non-owner occupied

 

558

 

 

184

 

 

 

Multifamily real estate

 

 

 

146

 

 

 

Commercial & Industrial

 

348

 

 

49

 

 

61

 

Residential 1-4 Family - Commercial

 

98

 

 

676

 

 

271

 

Residential 1-4 Family - Consumer

 

204

 

 

1,804

 

 

158

 

Residential 1-4 Family - Revolving

 

1,477

 

 

1,429

 

 

1,069

 

Auto

 

330

 

 

872

 

 

295

 

Consumer

 

197

 

 

232

 

 

176

 

Other Commercial

 

102

 

 

 

 

 

LHFI 60-89 days past due

$

4,411

 

$

5,416

 

$

2,828

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

$

50,687

 

$

48,399

 

$

30,854

 

Past Due and still accruing / total LHFI

 

0.32

%

 

0.31

%

 

0.21

%

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

147,825

 

$

153,544

 

$

153,443

 

FTE adjustment

 

3,721

 

 

3,712

 

 

3,788

 

Net interest income (FTE) (non-GAAP)

$

151,546

 

$

157,256

 

$

157,231

 

Noninterest income (GAAP)

 

25,552

 

 

29,959

 

 

9,628

 

Total revenue (FTE) (non-GAAP)

$

177,098

 

$

187,215

 

$

166,859

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

$

19,089,393

 

$

18,676,967

 

$

18,238,088

 

Net interest margin

 

3.11

%

 

3.26

%

 

3.41

%

Net interest margin (FTE)

 

3.19

%

 

3.34

%

 

3.50

%

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

$

21,378,120

 

$

21,166,197

 

$

20,103,370

 

Less: Ending goodwill

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

17,288

 

 

19,183

 

 

24,482

 

Ending tangible assets (non-GAAP)

$

20,435,621

 

$

20,221,803

 

$

19,153,677

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

$

2,548,928

 

$

2,556,327

 

$

2,440,236

 

Less: Ending goodwill

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

17,288

 

 

19,183

 

 

24,482

 

Less: Perpetual preferred stock

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

$

1,440,072

 

$

1,445,576

 

$

1,324,186

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

$

2,568,243

 

$

2,430,711

 

$

2,423,600

 

Less: Average goodwill

 

925,211

 

 

925,211

 

 

925,211

 

Less: Average amortizable intangibles

 

18,198

 

 

20,192

 

 

25,588

 

Less: Average perpetual preferred stock

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

$

1,458,478

 

$

1,318,952

 

$

1,306,445

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

$

46,802

 

$

53,940

 

$

32,686

 

Plus: Amortization of intangibles, tax effected

 

1,497

 

 

1,654

 

 

1,800

 

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

$

48,299

 

$

55,594

 

$

34,486

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

13.32

%

 

16.72

%

 

10.71

%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

49,769

 

$

56,907

 

$

35,653

 

Plus: Merger-related costs, net of tax

 

1,563

 

 

884

 

 

 

Plus: FDIC special assessment, net of tax

 

664

 

 

2,656

 

 

 

Plus: Legal reserve, net of tax

 

 

 

2,859

 

 

3,950

 

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

 

2

 

 

2

 

 

(10,586)

 

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

 

 

 

1,484

 

 

 

Adjusted operating earnings (non-GAAP)

 

51,994

 

 

61,820

 

 

50,189

 

Less: Dividends on preferred stock

 

2,967

 

 

2,967

 

 

2,967

 

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

$

49,027

 

$

58,853

 

$

47,222

 

 

 

 

 

 

 

 

 

 

 

Operating Efficiency Ratio (1)(6)

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

105,273

 

$

107,929

 

$

108,274

 

Less: Amortization of intangible assets

 

1,895

 

 

2,094

 

 

2,279

 

Less: Merger-related costs

 

1,874

 

 

1,002

 

 

 

Less: FDIC special assessment

 

840

 

 

3,362

 

 

 

Less: Legal reserve

 

 

 

3,300

 

 

5,000

 

Adjusted operating noninterest expense (non-GAAP)

$

100,664

 

$

98,171

 

$

100,995

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

25,552

 

$

29,959

 

$

9,628

 

Less: Gain (loss) on sale of securities

 

3

 

 

3

 

 

(13,400)

 

Less: Gain on sale-leaseback transaction

 

 

 

1,879

 

 

 

Adjusted operating noninterest income (non-GAAP)

$

25,549

 

$

28,077

 

$

23,028

 

 

 

 

 

 

 

 

 

 

 

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

$

151,546

 

$

157,256

 

$

157,231

 

Adjusted operating noninterest income (non-GAAP)

 

25,549

 

 

28,077

 

 

23,028

 

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

$

177,095

 

$

185,333

 

$

180,259

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

60.72

%

 

58.82

%

 

66.40

%

Efficiency ratio (FTE) (1)

 

59.44

%

 

57.65

%

 

64.89

%

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

 

56.84

%

 

52.97

%

 

56.03

%

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

$

51,994

 

$

61,820

 

$

50,189

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

$

21,222,756

 

$

20,853,306

 

$

20,384,351

 

Return on average assets (ROA) (GAAP)

 

0.94

%

 

1.08

%

 

0.71

%

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

 

0.99

%

 

1.18

%

 

1.00

%

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

$

2,568,243

 

$

2,430,711

 

$

2,423,600

 

Return on average equity (ROE) (GAAP)

 

7.79

%

 

9.29

%

 

5.97

%

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

 

8.14

%

 

10.09

%

 

8.40

%

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

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

$

49,027

 

$

58,853

 

$

47,222

 

Plus: Amortization of intangibles, tax effected

 

1,497

 

 

1,654

 

 

1,800

 

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

$

50,524

 

$

60,507

 

$

49,022

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

$

1,458,478

 

$

1,318,952

 

$

1,306,445

 

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

 

13.93

%

 

18.20

%

 

15.22

%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

49,769

 

$

56,907

 

$

35,653

 

Plus: Provision for credit losses

 

8,239

 

 

8,707

 

 

11,850

 

Plus: Income tax expense

 

10,096

 

 

9,960

 

 

7,294

 

Plus: Merger-related costs

 

1,874

 

 

1,002

 

 

 

Plus: FDIC special assessment

 

840

 

 

3,362

 

 

 

Plus: Legal reserve

 

 

 

3,300

 

 

5,000

 

Less: Gain (loss) on sale of securities

 

3

 

 

3

 

 

(13,400)

 

Less: Gain on sale-leaseback transaction

 

 

 

1,879

 

 

 

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

$

70,815

 

$

81,356

 

$

73,197

 

Less: Dividends on preferred stock

 

2,967

 

 

2,967

 

 

2,967

 

Pre-tax pre-provision adjusted operating earnings available to common shareholders

(non-GAAP)

$

67,848

 

$

78,389

 

$

70,230

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

75,197,376

 

 

75,016,858

 

 

74,835,514

 

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

$

0.90

 

$

1.04

 

$

0.94

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

As of & For Three Months Ended

 

 

3/31/24

 

12/31/23

 

3/31/23

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

Refinance Volume

$

5,638

 

$

3,972

 

$

3,452

 

Purchase Volume

 

31,768

 

 

27,871

 

 

32,192

 

Total Mortgage loan originations held for sale

$

37,406

 

$

31,843

 

$

35,644

 

% of originations held for sale that are refinances

 

15.1

%

 

12.5

%

 

9.7

%

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

Assets under management

$

5,258,880

 

$

5,014,208

 

$

4,494,268

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

End of period full-time employees

 

1,745

 

 

1,804

 

 

1,840

 

Number of full-service branches

 

109

 

 

109

 

 

109

 

Number of automatic transaction machines (ATMs)

 

123

 

 

123

 

 

127

 

_________________________________

(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, 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 these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the Company’s operations.

(5)

All ratios at March 31, 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, 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, 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)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

2024

 

 

2023

 

 

2023

 

ASSETS

 

(unaudited)

 

 

(audited)

 

 

(unaudited)

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash and due from banks

$

168,850

 

 

$

196,754

 

 

$

187,106

 

Interest-bearing deposits in other banks

 

225,386

 

 

 

167,601

 

 

 

184,371

 

Federal funds sold

 

2,434

 

 

 

13,776

 

 

 

719

 

Total cash and cash equivalents

 

396,670

 

 

 

378,131

 

 

 

372,196

 

Securities available for sale, at fair value

 

2,202,216

 

 

 

2,231,261

 

 

 

2,252,365

 

Securities held to maturity, at carrying value

 

828,928

 

 

 

837,378

 

 

 

855,418

 

Restricted stock, at cost

 

110,272

 

 

 

115,472

 

 

 

87,616

 

Loans held for sale

 

12,200

 

 

 

6,710

 

 

 

14,213

 

Loans held for investment, net of deferred fees and costs

 

15,851,628

 

 

 

15,635,043

 

 

 

14,584,280

 

Less: allowance for loan and lease losses

 

136,190

 

 

 

132,182

 

 

 

116,512

 

Total loans held for investment, net

 

15,715,438

 

 

 

15,502,861

 

 

 

14,467,768

 

Premises and equipment, net

 

90,126

 

 

 

90,959

 

 

 

116,466

 

Goodwill

 

925,211

 

 

 

925,211

 

 

 

925,211

 

Amortizable intangibles, net

 

17,288

 

 

 

19,183

 

 

 

24,482

 

Bank owned life insurance

 

455,885

 

 

 

452,565

 

 

 

443,537

 

Other assets

 

623,886

 

 

 

606,466

 

 

 

544,098

 

Total assets

$

21,378,120

 

 

$

21,166,197

 

 

$

20,103,370

 

LIABILITIES

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

3,845,191

 

 

$

3,963,181

 

 

$

4,578,009

 

Interest-bearing deposits

 

13,433,244

 

 

 

12,854,948

 

 

 

11,877,901

 

Total deposits

 

17,278,435

 

 

 

16,818,129

 

 

 

16,455,910

 

Securities sold under agreements to repurchase

 

66,405

 

 

 

110,833

 

 

 

163,760

 

Other short-term borrowings

 

600,000

 

 

 

810,000

 

 

 

245,000

 

Long-term borrowings

 

391,319

 

 

 

391,025

 

 

 

390,150

 

Other liabilities

 

493,033

 

 

 

479,883

 

 

 

408,314

 

Total liabilities

 

18,829,192

 

 

 

18,609,870

 

 

 

17,663,134

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

Common stock, $1.33 par value

 

99,399

 

 

 

99,147

 

 

 

99,072

 

Additional paid-in capital

 

1,782,809

 

 

 

1,782,286

 

 

 

1,773,118

 

Retained earnings

 

1,040,845

 

 

 

1,018,070

 

 

 

929,806

 

Accumulated other comprehensive loss

 

(374,298

)

 

 

(343,349

)

 

 

(361,933

)

Total stockholders' equity

 

2,548,928

 

 

 

2,556,327

 

 

 

2,440,236

 

Total liabilities and stockholders' equity

$

21,378,120

 

 

$

21,166,197

 

 

$

20,103,370

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

75,381,740

 

 

 

75,023,327

 

 

 

74,989,228

 

Common shares authorized

 

200,000,000

 

 

 

200,000,000

 

 

 

200,000,000

 

Preferred shares outstanding

 

17,250

 

 

 

17,250

 

 

 

17,250

 

Preferred shares authorized

 

500,000

 

 

 

500,000

 

 

 

500,000

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

 

2024

 

2023

 

2023

 

Interest and dividend income:

 

 

 

 

 

 

 

 

Interest and fees on loans

$

234,600

 

 

$

230,378

 

 

$

189,992

 

Interest on deposits in other banks

 

1,280

 

 

 

2,255

 

 

 

1,493

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

Taxable

 

18,879

 

 

 

18,703

 

 

 

16,753

 

Nontaxable

 

8,156

 

 

 

8,161

 

 

 

9,308

 

Total interest and dividend income

 

262,915

 

 

 

259,497

 

 

 

217,546

 

Interest expense:

 

 

 

 

 

 

 

 

Interest on deposits

 

101,864

 

 

 

95,998

 

 

 

51,834

 

Interest on short-term borrowings

 

8,161

 

 

 

5,043

 

 

 

7,563

 

Interest on long-term borrowings

 

5,065

 

 

 

4,912

 

 

 

4,706

 

Total interest expense

 

115,090

 

 

 

105,953

 

 

 

64,103

 

Net interest income

 

147,825

 

 

 

153,544

 

 

 

153,443

 

Provision for credit losses

 

8,239

 

 

 

8,707

 

 

 

11,850

 

Net interest income after provision for credit losses

 

139,586

 

 

 

144,837

 

 

 

141,593

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

8,569

 

 

 

8,662

 

 

 

7,902

 

Other service charges, commissions and fees

 

1,731

 

 

 

1,789

 

 

 

1,746

 

Interchange fees

 

2,294

 

 

 

2,581

 

 

 

2,325

 

Fiduciary and asset management fees

 

4,838

 

 

 

4,526

 

 

 

4,262

 

Mortgage banking income

 

867

 

 

 

774

 

 

 

854

 

Gain (loss) on sale of securities

 

3

 

 

 

3

 

 

 

(13,400

)

Bank owned life insurance income

 

3,245

 

 

 

3,088

 

 

 

2,828

 

Loan-related interest rate swap fees

 

1,216

 

 

 

3,588

 

 

 

1,439

 

Other operating income

 

2,789

 

 

 

4,948

 

 

 

1,672

 

Total noninterest income

 

25,552

 

 

 

29,959

 

 

 

9,628

 

Noninterest expenses:

 

 

 

 

 

 

 

 

Salaries and benefits

 

61,882

 

 

 

56,686

 

 

 

60,529

 

Occupancy expenses

 

6,625

 

 

 

6,644

 

 

 

6,356

 

Furniture and equipment expenses

 

3,309

 

 

 

3,517

 

 

 

3,752

 

Technology and data processing

 

8,127

 

 

 

7,853

 

 

 

8,142

 

Professional services

 

3,081

 

 

 

4,346

 

 

 

3,413

 

Marketing and advertising expense

 

2,318

 

 

 

3,018

 

 

 

2,351

 

FDIC assessment premiums and other insurance

 

5,143

 

 

 

7,630

 

 

 

3,899

 

Franchise and other taxes

 

4,501

 

 

 

4,505

 

 

 

4,498

 

Loan-related expenses

 

1,323

 

 

 

1,060

 

 

 

1,552

 

Amortization of intangible assets

 

1,895

 

 

 

2,094

 

 

 

2,279

 

Other expenses

 

7,069

 

 

 

10,576

 

 

 

11,503

 

Total noninterest expenses

 

105,273

 

 

 

107,929

 

 

 

108,274

 

Income before income taxes

 

59,865

 

 

 

66,867

 

 

 

42,947

 

Income tax expense

 

10,096

 

 

 

9,960

 

 

 

7,294

 

Net Income

$

49,769

 

 

$

56,907

 

 

$

35,653

 

Dividends on preferred stock

 

2,967

 

 

 

2,967

 

 

 

2,967

 

Net income available to common shareholders

$

46,802

 

 

$

53,940

 

 

$

32,686

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.62

 

 

$

0.72

 

 

$

0.44

 

Diluted earnings per common share

$

0.62

 

 

$

0.72

 

 

$

0.44

 

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

March 31, 2024

 

December 31, 2023

Average

Balance

 

Interest

Income /

Expense (1)

 

Yield /

Rate (1)(2)

 

Average

Balance

 

Interest

Income /

Expense (1)

 

Yield /

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

1,895,820

 

 

$

18,879

 

4.01

%

 

$

1,771,312

 

 

$

18,703

 

4.19

%

Tax-exempt

 

1,257,736

 

 

 

10,324

 

3.30

%

 

 

1,260,163

 

 

 

10,330

 

3.25

%

Total securities

 

3,153,556

 

 

 

29,203

 

3.72

%

 

 

3,031,475

 

 

 

29,033

 

3.80

%

LHFI, net of deferred fees and costs (3)

 

15,732,599

 

 

 

235,832

 

6.03

%

 

 

15,394,500

 

 

 

231,687

 

5.97

%

Other earning assets

 

203,238

 

 

 

1,601

 

3.17

%

 

 

250,992

 

 

 

2,489

 

3.93

%

Total earning assets

 

19,089,393

 

 

$

266,636

 

5.62

%

 

 

18,676,967

 

 

$

263,209

 

5.59

%

Allowance for loan and lease losses

 

(133,090

)

 

 

 

 

 

 

 

(123,954

)

 

 

 

 

 

Total non-earning assets

 

2,266,453

 

 

 

 

 

 

 

 

2,300,293

 

 

 

 

 

 

Total assets

$

21,222,756

 

 

 

 

 

 

 

$

20,853,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transaction and money market accounts

$

8,952,119

 

 

$

65,254

 

2.93

%

 

$

8,974,437

 

 

$

64,456

 

2.85

%

Regular savings

 

900,580

 

 

 

501

 

0.22

%

 

 

923,653

 

 

 

509

 

0.22

%

Time deposits

 

3,459,138

 

 

 

36,109

 

4.20

%

 

 

3,128,048

 

 

 

31,033

 

3.94

%

Total interest-bearing deposits

 

13,311,837

 

 

 

101,864

 

3.08

%

 

 

13,026,138

 

 

 

95,998

 

2.92

%

Other borrowings

 

1,012,797

 

 

 

13,226

 

5.25

%

 

 

792,629

 

 

 

9,955

 

4.98

%

Total interest-bearing liabilities

$

14,324,634

 

 

$

115,090

 

3.23

%

 

$

13,818,767

 

 

$

105,953

 

3.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

3,835,344

 

 

 

 

 

 

 

 

4,087,231

 

 

 

 

 

 

Other liabilities

 

494,535

 

 

 

 

 

 

 

 

516,597

 

 

 

 

 

 

Total liabilities

 

18,654,513

 

 

 

 

 

 

 

 

18,422,595

 

 

 

 

 

 

Stockholders' equity

 

2,568,243

 

 

 

 

 

 

 

 

2,430,711

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

21,222,756

 

 

 

 

 

 

 

$

20,853,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE)

 

 

 

$

151,546

 

 

 

 

 

 

$

157,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

2.39

%

 

 

 

 

 

 

 

2.55

%

Cost of funds

 

 

 

 

 

 

2.43

%

 

 

 

 

 

 

 

2.25

%

Net interest margin (FTE)

 

 

 

 

 

 

3.19

%

 

 

 

 

 

 

 

3.34

%

______________________

(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.

 

Contacts

Robert M. Gorman - (804) 523‑7828

Executive Vice President / Chief Financial Officer

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