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Atlantic Union Bankshares Reports Second Quarter Financial Results

Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $52.3 million and basic and diluted earnings per common share of $0.70 for the second quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $55.4 million and adjusted diluted operating earnings per common share(1) of $0.74 for the second quarter of 2023.

As previously disclosed, the Company initiated a series of cost saving measures during the second quarter of 2023 that is expected to reduce the annual expense run rate by approximately $17 million. As a result of these measures, the Company incurred $3.9 million in pre-tax expenses during the second quarter of 2023, and the Company expects to recognize additional pre-tax expenses associated with these actions of approximately $7.5 million during the third quarter of 2023.

“Atlantic Union delivered strong second quarter financial results despite the turmoil in the banking industry during the first half of the year,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Loan growth remained strong and deposit levels were stable during the quarter. We believe that our 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, in these challenging times.”

“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 second quarter of 2023, net interest income was $152.1 million, a decrease of $1.3 million from $153.4 million in the first quarter of 2023. Net interest income (FTE)(1) was $155.8 million in the second quarter of 2023, a decrease of $1.5 million from the first quarter of 2023. The decreases in net interest income and net interest income (FTE)(1) were primarily driven by higher deposit costs due to increases in market interest rates, as well as changes in the deposit mix as depositors migrated to higher cost interest bearing deposit accounts. These decreases were partially offset by an increase in interest income on loans due to net loan growth and variable rate loans repricing as short-term interest rates increased. Our net interest margin decreased 4 basis points from the prior quarter to 3.37% at June 30, 2023, and our net interest margin (FTE)(1) decreased 5 basis points during the same period to 3.45%. Earning asset yields increased by 27 basis points to 5.19% in the second quarter of 2023 compared to the first quarter of 2023, primarily due to the impact of increases in market interest rates on loans. Our cost of funds increased by 32 basis points to 1.74% at June 30, 2023 compared to the prior quarter, driven by higher deposit and borrowing costs and funding mix as noted above.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. The impact of net accretion in the first and second quarters of 2023 are reflected in the following table (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended March 31, 2023

 

$

1,106

 

$

(14)

 

$

(209)

 

$

883

For the quarter ended June 30, 2023

 

 

1,073

 

 

(7)

 

 

(213)

 

 

853

ASSET QUALITY

Overview

At June 30, 2023, nonperforming assets (“NPAs”) as a percentage of total loans held for investment (“LHFI”) decreased 1 basis point from the prior quarter to 0.19% and included nonaccrual loans of $29.1 million. Accruing past due loans as a percentage of total LHFI totaled 16 basis points at June 30, 2023, a decrease of 5 basis points from March 31, 2023, and an increase of 1 basis point from June 30, 2022. Net charge-offs were 0.04% of total average LHFI (annualized) for the second quarter of 2023, a decrease of 9 basis points from March 31, 2023, and an increase of 1 basis point from June 30, 2022. The allowance for credit losses (“ACL”) totaled $136.2 million at June 30, 2023, a $4.5 million increase from the prior quarter.

Nonperforming Assets

At June 30, 2023, NPAs totaled $29.2 million, compared to $29.1 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

2023

 

2023

 

2022

 

2022

 

2022

Nonaccrual loans

 

$

29,105

 

$

29,082

 

$

27,038

 

$

26,500

 

$

29,070

Foreclosed properties

 

 

50

 

 

29

 

 

76

 

 

2,087

 

 

2,065

Total nonperforming assets

 

$

29,155

 

$

29,111

 

$

27,114

 

$

28,587

 

$

31,135

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

Beginning Balance

 

$

29,082

 

 

$

27,038

 

 

$

26,500

 

 

$

29,070

 

 

$

29,032

 

Net customer payments

 

 

(5,950

)

 

 

(1,755

)

 

 

(1,805

)

 

 

(3,725

)

 

 

(2,472

)

Additions

 

 

6,685

 

 

 

4,151

 

 

 

2,935

 

 

 

1,302

 

 

 

3,203

 

Charge-offs

 

 

(712

)

 

 

(39

)

 

 

(461

)

 

 

(125

)

 

 

(311

)

Loans returning to accruing status

 

 

 

 

 

(313

)

 

 

(131

)

 

 

 

 

 

 

Transfers to foreclosed property

 

 

 

 

 

 

 

 

 

 

 

(22

)

 

 

(382

)

Ending Balance

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

 

$

26,500

 

 

$

29,070

 

Past Due Loans

At June 30, 2023, past due loans still accruing interest totaled $24.1 million or 0.16% of total LHFI, compared to $30.9 million or 0.21% of total LHFI at March 31, 2023, and $20.4 million or 0.15% of total LHFI at June 30, 2022. Of the total past due loans still accruing interest, $10.1 million or 0.07% of total LHFI were loans past due 90 days or more at June 30, 2023, compared to $7.2 million or 0.05% of total LHFI at March 31, 2023, and $4.6 million or 0.03% of total LHFI at June 30, 2022. The increase in loans past due 90 days or more was primarily due to one credit relationship within the commercial real estate – non-owner occupied portfolio.

Allowance for Credit Losses

At June 30, 2023, the ACL was $136.2 million and included an allowance for loan and lease losses (“ALLL”) of $120.7 million and a reserve for unfunded commitments of $15.5 million. The ACL at June 30, 2023 increased $4.5 million from March 31, 2023 due to loan growth in the second quarter of 2023 and the impact of continued uncertainty in the economic outlook.

At both June 30, 2023 and March 31, 2023, the ACL as a percentage of total LHFI was 0.90%, and the ALLL as a percentage of total LHFI was 0.80%.

Net Charge-offs

Net charge-offs were $1.6 million or 0.04% of total average LHFI on an annualized basis for the second quarter of 2023, compared to $4.6 million or 0.13% (annualized) for the first quarter of 2023, and $939,000 or 0.03% (annualized) for the second quarter of 2022.

Provision for Credit Losses

For the second quarter of 2023, the Company recorded a provision for credit losses of $6.1 million, compared to a provision for credit losses of $11.9 million in the prior quarter, and a provision for credit losses of $3.6 million in the second quarter of 2022. The provision for credit losses for the second quarter of 2023 reflected a provision of $5.7 million for loan losses and a $349,000 provision for unfunded commitments.

NONINTEREST INCOME

Noninterest income increased $14.6 million to $24.2 million for the second quarter of 2023 from $9.6 million in the prior quarter, primarily due to $13.4 million of losses incurred on the sale of available for sale (“AFS”) securities in the prior quarter, driven by the Company’s balance sheet repositioning transactions, and that were not repeated during the second quarter. In addition, loan-related interest rate swap fees increased $877,000 from the prior quarter due to several new swap transactions, and other operating income increased $259,000 from the prior quarter primarily driven by an increase in loan syndication revenue. These increases in noninterest income were partially offset by a $405,000 decrease in mortgage banking income due to a decline in gain on sale margins.

NONINTEREST EXPENSE

Noninterest expense decreased $2.6 million to $105.7 million for the second quarter of 2023 from $108.3 million in the prior quarter. Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.2 million in the second quarter and $2.3 million in the first quarter), expenses incurred associated with our strategic cost savings initiatives principally composed of severance charges related to headcount reductions and charges for exiting leases ($3.9 million in the second quarter), and the legal reserve associated with an ongoing regulatory matter as previously disclosed ($5.0 million in the first quarter), decreased $1.5 million to $99.5 million for the second quarter of 2023 from $101.0 million in the prior quarter. The decrease in adjusted operating noninterest expense(1) was primarily due to a $1.8 million decrease included within other expenses, composed of OREO-related gains recognized in the current quarter and reduced branch closing costs as compared to the prior quarter, and a $1.4 million decrease in salaries and benefits expense, outside of severance charges related to headcount reductions in the quarter, primarily due to seasonal decreases in payroll related taxes and 401(k) contribution expenses. These decreases in adjusted operating noninterest expense(1) were partially offset by increases of $1.0 million in professional services expense related to the LIBOR transition and other strategic projects, $466,000 in marketing and advertising expense, and $424,000 in technology and data processing expense.

INCOME TAXES

The effective tax rate for the three months ended June 30, 2023 and 2022 was 14.4% and 16.7%, respectively, and the effective tax rate for the six months ended June 30, 2023 and 2022 was 15.5% and 17.1%, respectively. The decrease in the effective tax rates is due to the increased proportion of tax-exempt income to pre-tax income for both the three and six months ended June 30, 2023 compared to the prior quarter and prior year, respectively.

BALANCE SHEET

At June 30, 2023, total assets were $20.6 billion, an increase of $499.0 million or approximately 10.0% (annualized) from March 31, 2023, and an increase of $940.5 million or approximately 4.8% from June 30, 2022. Total assets increased from the prior quarter primarily due to a $482.7 million increase in LHFI (net of deferred fees and costs). Total assets increased from the prior year period primarily due to a $1.4 billion increase in LHFI (net of deferred fees and costs), partially offset by a $676.8 million decrease in investment securities due to the sale of $505.7 million in AFS securities as part of the Company’s balance sheet restructuring executed in the first quarter of 2023, as well as a decline in the market value of the AFS securities portfolio, due to the impact of market interest rate fluctuations.

At June 30, 2023, LHFI (net of deferred fees and costs) totaled $15.1 billion, an increase of $482.7 million or 13.3% (annualized) from $14.6 billion at March 31, 2023. Average LHFI (net of deferred fees and costs) totaled $14.7 billion at June 30, 2023, an increase of $240.6 million or 6.7% (annualized) from the prior quarter. At June 30, 2023, LHFI (net of deferred fees and costs) increased $1.4 billion or 10.3% from June 30, 2022, and quarterly average LHFI (net of deferred fees and costs) increased $1.2 billion or 9.0% from the same period in the prior year. LHFI (net of deferred fees and costs) increased from the prior quarter and the same period in the prior year primarily due to increases in the commercial and industrial and commercial real estate non-owner occupied portfolios.

At June 30, 2023, total investments were $3.1 billion, a decrease of $52.2 million from March 31, 2023 and a decrease of $676.8 million from June 30, 2022. AFS securities totaled $2.2 billion at June 30, 2023, $2.3 billion at March 31, 2023, and $3.0 billion at June 30, 2022. At June 30, 2023, total net unrealized losses on the AFS securities portfolio were $450.1 million, an increase of $42.2 million from total net unrealized losses on AFS securities of $407.9 at March 31, 2023. Held to maturity (“HTM”) securities are carried at cost and totaled $849.6 million at June 30, 2023, $855.4 million at March 31, 2023, and $780.7 million at June 30, 2022 and have net unrealized losses of $41.8 million at June 30, 2023, an increase of $9.5 million from net unrealized losses on HTM securities of $32.3 million at March 31, 2023.

At June 30, 2023, total deposits were $16.4 billion, a decrease of $43.9 million or approximately 1.1% (annualized) from March 31, 2023. Average deposits at June 30, 2023 decreased from the prior quarter by $137.1 million or 3.3% (annualized). Total deposits decreased from the prior quarter due to the impact of customer behavior in response to inflation and higher market interest rates, resulting in a decrease in low costing customer deposits, partially offset by an increase in customer time deposits and brokered deposits. Total deposits at June 30, 2023 increased $283.4 million or 1.8% from June 30, 2022, and quarterly average deposits at June 30, 2023 increased $89.1 million or 0.6% from the same period in the prior year. Total deposits increased from 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 June 30, 2023, total borrowings were $1.3 billion, an increase of $521.4 million from March 31, 2023 and an increase of $522.4 million from June 30, 2022. Total borrowings increased from the prior quarter and prior year primarily due to an increase in Federal Home Loan Bank short-term borrowings, which was used to fund loan growth.

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

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

June 30,

 

 

 

2023

 

2023

 

2022

 

Common equity Tier 1 capital ratio (2)

 

9.86

%

9.91

%

9.96

%

Tier 1 capital ratio (2)

 

10.81

%

10.89

%

11.00

%

Total capital ratio (2)

 

13.64

%

13.76

%

13.86

%

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

 

9.64

%

9.38

%

9.26

%

Common equity to total assets

 

10.96

%

11.31

%

11.32

%

Tangible common equity to tangible assets (1)

 

6.66

%

6.91

%

6.78

%

_____________________________

At June 30, 2023, the Company’s common equity to total assets ratio and tangible common equity to tangible assets ratio decreased compared to the prior quarter and prior year primarily due to the unrealized losses on the AFS securities portfolio recorded in other comprehensive income due to higher market interest rates, as well as the increase in total assets.

During the second quarter of 2023, 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 first quarter of 2023 and the second quarter of 2022. During the second quarter of 2023, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the first quarter of 2023 and an increase of $0.02 or approximately 7.1% from the second quarter of 2022.

_____________________________

(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 June 30, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

ANNOUNCED TRANSACTION

As announced and further described in a separate press release issued by the Company today, the Company has entered into a merger agreement to acquire American National Bankshares Inc. (“American National”) in an all-stock transaction.

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 109 branches and approximately 125 ATMs located throughout Virginia and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

SECOND QUARTER 2023 EARNINGS RELEASE CONFERENCE CALL

In light of today’s announcement that the Company has entered into a merger agreement to acquire American National, the Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, July 25, 2023 during which the Company’s management will review the Company’s financial results for the second quarter 2023 and discuss the proposed merger.

The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/g5jw6mu3.

For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BI1a5d16a5982740369c57e980002f5ab6. 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 June 30, 2023, 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, the impact of future economic conditions, the impact of cost saving measures, 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;
  • 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 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, 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 the 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;
  • the discontinuation of LIBOR and its impact on the financial markets, and our ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
  • performance by 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;
  • other factors, many of which are beyond our control; and
  • the risks, uncertainties and assumptions set forth under the heading “Caution About Forward-Looking Statements” in the joint press release issued by the Company and American National on the date hereof with respect to the proposed merger transaction between the Company and American National.

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, 2022, Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 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 its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. 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.

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

230,247

 

$

217,546

 

$

148,755

 

$

447,793

 

$

287,212

 

Interest expense

 

 

78,163

 

 

64,103

 

 

9,988

 

 

142,265

 

 

17,514

 

Net interest income

 

 

152,084

 

 

153,443

 

 

138,767

 

 

305,528

 

 

269,698

 

Provision for credit losses

 

 

6,069

 

 

11,850

 

 

3,559

 

 

17,920

 

 

6,359

 

Net interest income after provision for credit losses

 

 

146,015

 

 

141,593

 

 

135,208

 

 

287,608

 

 

263,339

 

Noninterest income

 

 

24,197

 

 

9,628

 

 

38,286

 

 

33,824

 

 

68,439

 

Noninterest expenses

 

 

105,661

 

 

108,274

 

 

98,768

 

 

213,934

 

 

204,089

 

Income before income taxes

 

 

64,551

 

 

42,947

 

 

74,726

 

 

107,498

 

 

127,689

 

Income tax expense

 

 

9,310

 

 

7,294

 

 

12,500

 

 

16,604

 

 

21,773

 

Net income

 

 

55,241

 

 

35,653

 

 

62,226

 

 

90,894

 

 

105,916

 

Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

2,967

 

 

5,934

 

 

5,934

 

Net income available to common shareholders

 

$

52,274

 

$

32,686

 

$

59,259

 

$

84,960

 

$

99,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

 

$

233,913

 

$

221,334

 

$

152,332

 

$

455,248

 

$

294,124

 

Net interest income (FTE) (1)

 

 

155,750

 

 

157,231

 

 

142,344

 

 

312,983

 

 

276,610

 

Total revenue (FTE) (1)

 

 

179,947

 

 

166,859

 

 

180,630

 

 

346,807

 

 

345,049

 

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

 

 

74,553

 

 

73,197

 

 

69,205

 

 

147,751

 

 

130,476

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

 

$

0.70

 

$

0.44

 

$

0.79

 

$

1.13

 

$

1.33

 

Return on average assets (ROA)

 

 

1.10

%

 

0.71

%

 

1.27

%

 

0.90

%

 

1.08

%

Return on average equity (ROE)

 

 

9.00

%

 

5.97

%

 

10.21

%

 

7.51

%

 

8.37

%

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

 

 

16.11

%

 

10.71

%

 

18.93

%

 

13.46

%

 

14.97

%

Efficiency ratio

 

 

59.94

%

 

66.40

%

 

55.78

%

 

63.04

%

 

60.36

%

Efficiency ratio (FTE) (1)

 

 

58.72

%

 

64.89

%

 

54.68

%

 

61.69

%

 

59.15

%

Net interest margin

 

 

3.37

%

 

3.41

%

 

3.15

%

 

3.39

%

 

3.06

%

Net interest margin (FTE) (1)

 

 

3.45

%

 

3.50

%

 

3.24

%

 

3.47

%

 

3.14

%

Yields on earning assets (FTE) (1)

 

 

5.19

%

 

4.92

%

 

3.46

%

 

5.05

%

 

3.34

%

Cost of interest-bearing liabilities

 

 

2.42

%

 

2.02

%

 

0.35

%

 

2.22

%

 

0.30

%

Cost of deposits

 

 

1.61

%

 

1.28

%

 

0.15

%

 

1.44

%

 

0.13

%

Cost of funds

 

 

1.74

%

 

1.42

%

 

0.22

%

 

1.58

%

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

 

$

58,348

 

$

50,189

 

$

54,244

 

$

108,537

 

$

102,285

 

Adjusted operating earnings available to common shareholders

 

 

55,381

 

 

47,222

 

 

51,277

 

 

102,603

 

 

96,351

 

Adjusted operating earnings per common share, diluted

 

$

0.74

 

$

0.63

 

$

0.69

 

$

1.37

 

$

1.28

 

Adjusted operating ROA

 

 

1.16

%

 

1.00

%

 

1.10

%

 

1.08

%

 

1.04

%

Adjusted operating ROE

 

 

9.51

%

 

8.40

%

 

8.90

%

 

8.96

%

 

8.08

%

Adjusted operating ROTCE (2) (3)

 

 

17.03

%

 

15.22

%

 

16.47

%

 

16.14

%

 

14.45

%

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

 

 

55.30

%

 

56.03

%

 

55.88

%

 

55.66

%

 

57.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.70

 

$

0.44

 

$

0.79

 

$

1.13

 

$

1.33

 

Earnings per common share, diluted

 

 

0.70

 

 

0.44

 

 

0.79

 

 

1.13

 

 

1.33

 

Cash dividends paid per common share

 

 

0.30

 

 

0.30

 

 

0.28

 

 

0.60

 

 

0.56

 

Market value per share

 

 

25.95

 

 

35.05

 

 

33.92

 

 

25.95

 

 

33.92

 

Book value per common share

 

 

30.31

 

 

30.53

 

 

29.95

 

 

30.31

 

 

29.95

 

Tangible book value per common share (2)

 

 

17.58

 

 

17.78

 

 

17.07

 

 

17.58

 

 

17.07

 

Price to earnings ratio, diluted

 

 

9.28

 

 

19.77

 

 

10.68

 

 

11.35

 

 

12.65

 

Price to book value per common share ratio

 

 

0.86

 

 

1.15

 

 

1.13

 

 

0.86

 

 

1.13

 

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

 

 

1.48

 

 

1.97

 

 

1.99

 

 

1.48

 

 

1.99

 

Weighted average common shares outstanding, basic

 

 

74,995,450

 

 

74,832,141

 

 

74,847,899

 

 

74,914,247

 

 

75,194,347

 

Weighted average common shares outstanding, diluted

 

 

74,995,557

 

 

74,835,514

 

 

74,849,871

 

 

74,915,977

 

 

75,201,326

 

Common shares outstanding at end of period

 

 

74,998,075

 

 

74,989,228

 

 

74,688,314

 

 

74,998,075

 

 

74,688,314

 

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

 

9.86

%

 

9.91

%

 

9.96

%

 

9.86

%

 

9.96

%

Tier 1 capital ratio (5)

 

 

10.81

%

 

10.89

%

 

11.00

%

 

10.81

%

 

11.00

%

Total capital ratio (5)

 

 

13.64

%

 

13.76

%

 

13.86

%

 

13.64

%

 

13.86

%

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

 

 

9.64

%

 

9.38

%

 

9.26

%

 

9.64

%

 

9.26

%

Common equity to total assets

 

 

10.96

%

 

11.31

%

 

11.32

%

 

10.96

%

 

11.32

%

Tangible common equity to tangible assets (2)

 

 

6.66

%

 

6.91

%

 

6.78

%

 

6.66

%

 

6.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,602,332

 

$

20,103,370

 

$

19,661,799

 

$

20,602,332

 

$

19,661,799

 

LHFI (net of deferred fees and costs)

 

 

15,066,930

 

 

14,584,280

 

 

13,655,408

 

 

15,066,930

 

 

13,655,408

 

Securities

 

 

3,143,236

 

 

3,195,399

 

 

3,820,078

 

 

3,143,236

 

 

3,820,078

 

Earning Assets

 

 

18,452,007

 

 

17,984,057

 

 

17,578,979

 

 

18,452,007

 

 

17,578,979

 

Goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Amortizable intangibles, net

 

 

23,469

 

 

24,482

 

 

31,621

 

 

23,469

 

 

31,621

 

Deposits

 

 

16,411,987

 

 

16,455,910

 

 

16,128,635

 

 

16,411,987

 

 

16,128,635

 

Borrowings

 

 

1,320,301

 

 

798,910

 

 

797,948

 

 

1,320,301

 

 

797,948

 

Stockholders' equity

 

 

2,424,470

 

 

2,440,236

 

 

2,391,476

 

 

2,424,470

 

 

2,391,476

 

Tangible common equity (2)

 

 

1,309,433

 

 

1,324,186

 

 

1,268,287

 

 

1,309,433

 

 

1,268,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LHFI, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

1,231,720

 

$

1,179,872

 

$

988,379

 

$

1,231,720

 

$

988,379

 

Commercial real estate - owner occupied

 

 

1,952,189

 

 

1,956,585

 

 

1,965,702

 

 

1,952,189

 

 

1,965,702

 

Commercial real estate - non-owner occupied

 

 

4,113,318

 

 

3,968,085

 

 

3,860,819

 

 

4,113,318

 

 

3,860,819

 

Multifamily real estate

 

 

788,895

 

 

822,006

 

 

762,502

 

 

788,895

 

 

762,502

 

Commercial & Industrial

 

 

3,373,148

 

 

3,082,478

 

 

2,595,891

 

 

3,373,148

 

 

2,595,891

 

Residential 1-4 Family - Commercial

 

 

518,317

 

 

522,760

 

 

553,771

 

 

518,317

 

 

553,771

 

Residential 1-4 Family - Consumer

 

 

1,017,698

 

 

974,511

 

 

865,174

 

 

1,017,698

 

 

865,174

 

Residential 1-4 Family - Revolving

 

 

600,339

 

 

589,791

 

 

583,073

 

 

600,339

 

 

583,073

 

Auto

 

 

585,756

 

 

600,658

 

 

525,301

 

 

585,756

 

 

525,301

 

Consumer

 

 

134,709

 

 

145,090

 

 

180,045

 

 

134,709

 

 

180,045

 

Other Commercial

 

 

750,841

 

 

742,444

 

 

774,751

 

 

750,841

 

 

774,751

 

Total LHFI

 

$

15,066,930

 

$

14,584,280

 

$

13,655,408

 

$

15,066,930

 

$

13,655,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

 

$

4,824,192

 

$

4,714,366

 

$

3,943,303

 

$

4,824,192

 

$

3,943,303

 

Money market accounts

 

 

3,413,936

 

 

3,547,514

 

 

3,956,046

 

 

3,413,936

 

 

3,956,046

 

Savings accounts

 

 

986,081

 

 

1,047,914

 

 

1,165,577

 

 

986,081

 

 

1,165,577

 

Customer time deposits of $250,000 and over

 

 

578,739

 

 

541,447

 

 

335,706

 

 

578,739

 

 

335,706

 

Other customer time deposits

 

 

1,813,031

 

 

1,648,747

 

 

1,308,493

 

 

1,813,031

 

 

1,308,493

 

Time deposits

 

 

2,391,770

 

 

2,190,194

 

 

1,644,199

 

 

2,391,770

 

 

1,644,199

 

Total interest-bearing customer deposits

 

 

11,615,979

 

 

11,499,988

 

 

10,709,125

 

 

11,615,979

 

 

10,709,125

 

Brokered deposits

 

 

485,702

 

 

377,913

 

 

57,972

 

 

485,702

 

 

57,972

 

Total interest-bearing deposits

 

$

12,101,681

 

$

11,877,901

 

$

10,767,097

 

$

12,101,681

 

$

10,767,097

 

Demand deposits

 

 

4,310,306

 

 

4,578,009

 

 

5,361,538

 

 

4,310,306

 

 

5,361,538

 

Total deposits

 

$

16,411,987

 

$

16,455,910

 

$

16,128,635

 

$

16,411,987

 

$

16,128,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,209,687

 

$

20,384,351

 

$

19,719,402

 

$

20,296,536

 

$

19,819,330

 

LHFI (net of deferred fees and costs)

 

 

14,746,218

 

 

14,505,611

 

 

13,525,529

 

 

14,626,579

 

 

13,413,780

 

Loans held for sale

 

 

14,413

 

 

5,876

 

 

20,634

 

 

10,168

 

 

17,652

 

Securities

 

 

3,176,662

 

 

3,467,561

 

 

3,930,912

 

 

3,321,308

 

 

4,064,007

 

Earning assets

 

 

18,091,809

 

 

18,238,088

 

 

17,646,470

 

 

18,164,545

 

 

17,765,085

 

Deposits

 

 

16,280,154

 

 

16,417,212

 

 

16,191,056

 

 

16,348,304

 

 

16,351,822

 

Time deposits

 

 

2,500,966

 

 

2,291,530

 

 

1,667,378

 

 

2,396,827

 

 

1,716,743

 

Interest-bearing deposits

 

 

11,903,004

 

 

11,723,865

 

 

10,824,465

 

 

11,813,929

 

 

11,054,095

 

Borrowings

 

 

1,071,171

 

 

1,122,244

 

 

765,886

 

 

1,096,567

 

 

639,506

 

Interest-bearing liabilities

 

 

12,974,175

 

 

12,846,109

 

 

11,590,351

 

 

12,910,496

 

 

11,693,601

 

Stockholders' equity

 

 

2,460,741

 

 

2,423,600

 

 

2,445,045

 

 

2,442,273

 

 

2,552,418

 

Tangible common equity (2)

 

 

1,345,426

 

 

1,306,445

 

 

1,304,536

 

 

1,326,043

 

 

1,410,342

 

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

116,512

 

$

110,768

 

$

102,591

 

$

110,768

 

$

99,787

 

Add: Recoveries

 

 

1,035

 

 

1,167

 

 

1,018

 

 

2,202

 

 

2,531

 

Less: Charge-offs

 

 

2,602

 

 

5,726

 

 

1,957

 

 

8,328

 

 

3,466

 

Add: Provision for loan losses

 

 

5,738

 

 

10,303

 

 

2,532

 

 

16,041

 

 

5,332

 

Ending balance, ALLL

 

$

120,683

 

$

116,512

 

$

104,184

 

$

120,683

 

$

104,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

 

$

15,199

 

$

13,675

 

$

8,000

 

$

13,675

 

$

8,000

 

Add: Provision for unfunded commitments

 

 

349

 

 

1,524

 

 

1,000

 

 

1,873

 

 

1,000

 

Ending balance, RUC

 

$

15,548

 

$

15,199

 

$

9,000

 

$

15,548

 

$

9,000

 

Total ACL

 

$

136,231

 

$

131,711

 

$

113,184

 

$

136,231

 

$

113,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL / total LHFI

 

 

0.90

%

 

0.90

%

 

0.83

%

 

0.90

%

 

0.83

%

ALLL / total LHFI

 

 

0.80

%

 

0.80

%

 

0.76

%

 

0.80

%

 

0.76

%

Net charge-offs / total average LHFI

 

 

0.04

%

 

0.13

%

 

0.03

%

 

0.08

%

 

0.01

%

Provision for loan losses/ total average LHFI

 

 

0.16

%

 

0.29

%

 

0.08

%

 

0.22

%

 

0.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

284

 

$

363

 

$

581

 

$

284

 

$

581

 

Commercial real estate - owner occupied

 

 

3,978

 

 

6,174

 

 

4,996

 

 

3,978

 

 

4,996

 

Commercial real estate - non-owner occupied

 

 

6,473

 

 

1,481

 

 

3,301

 

 

6,473

 

 

3,301

 

Commercial & Industrial

 

 

2,738

 

 

4,815

 

 

2,728

 

 

2,738

 

 

2,728

 

Residential 1-4 Family - Commercial

 

 

1,844

 

 

1,907

 

 

2,031

 

 

1,844

 

 

2,031

 

Residential 1-4 Family - Consumer

 

 

10,033

 

 

10,540

 

 

12,084

 

 

10,033

 

 

12,084

 

Residential 1-4 Family - Revolving

 

 

3,461

 

 

3,449

 

 

3,069

 

 

3,461

 

 

3,069

 

Auto

 

 

291

 

 

347

 

 

279

 

 

291

 

 

279

 

Consumer

 

 

3

 

 

6

 

 

1

 

 

3

 

 

1

 

Nonaccrual loans

 

$

29,105

 

$

29,082

 

$

29,070

 

$

29,105

 

$

29,070

 

Foreclosed property

 

 

50

 

 

29

 

 

2,065

 

 

50

 

 

2,065

 

Total nonperforming assets (NPAs)

 

$

29,155

 

$

29,111

 

$

31,135

 

$

29,155

 

$

31,135

 

Construction and land development

 

$

24

 

$

249

 

$

1

 

$

24

 

$

1

 

Commercial real estate - owner occupied

 

 

2,463

 

 

2,133

 

 

792

 

 

2,463

 

 

792

 

Commercial real estate - non-owner occupied

 

 

2,763

 

 

1,032

 

 

642

 

 

2,763

 

 

642

 

Commercial & Industrial

 

 

810

 

 

633

 

 

322

 

 

810

 

 

322

 

Residential 1-4 Family - Commercial

 

 

693

 

 

232

 

 

184

 

 

693

 

 

184

 

Residential 1-4 Family - Consumer

 

 

1,716

 

 

859

 

 

1,112

 

 

1,716

 

 

1,112

 

Residential 1-4 Family - Revolving

 

 

1,259

 

 

1,766

 

 

997

 

 

1,259

 

 

997

 

Auto

 

 

243

 

 

137

 

 

134

 

 

243

 

 

134

 

Consumer

 

 

74

 

 

137

 

 

79

 

 

74

 

 

79

 

Other Commercial

 

 

66

 

 

66

 

 

329

 

 

66

 

 

329

 

LHFI ≥ 90 days and still accruing

 

$

10,111

 

$

7,244

 

$

4,592

 

$

10,111

 

$

4,592

 

Total NPAs and LHFI ≥ 90 days

 

$

39,266

 

$

36,355

 

$

35,727

 

$

39,266

 

$

35,727

 

NPAs / total LHFI

 

 

0.19

%

 

0.20

%

 

0.23

%

 

0.19

%

 

0.23

%

NPAs / total assets

 

 

0.14

%

 

0.14

%

 

0.16

%

 

0.14

%

 

0.16

%

ALLL / nonaccrual loans

 

 

414.65

%

 

400.63

%

 

358.39

%

 

414.65

%

 

358.39

%

ALLL/ nonperforming assets

 

 

413.94

%

 

400.23

%

 

334.62

%

 

413.94

%

 

334.62

%

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Past Due Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

295

 

$

815

 

$

645

 

$

295

 

$

645

 

Commercial real estate - owner occupied

 

 

602

 

 

2,251

 

 

1,374

 

 

602

 

 

1,374

 

Commercial real estate - non-owner occupied

 

 

 

 

52

 

 

511

 

 

 

 

511

 

Commercial & Industrial

 

 

254

 

 

981

 

 

2,581

 

 

254

 

 

2,581

 

Residential 1-4 Family - Commercial

 

 

1,076

 

 

1,399

 

 

1,944

 

 

1,076

 

 

1,944

 

Residential 1-4 Family - Consumer

 

 

1,504

 

 

11,579

 

 

594

 

 

1,504

 

 

594

 

Residential 1-4 Family - Revolving

 

 

1,729

 

 

1,384

 

 

1,368

 

 

1,729

 

 

1,368

 

Auto

 

 

2,877

 

 

2,026

 

 

1,841

 

 

2,877

 

 

1,841

 

Consumer

 

 

334

 

 

295

 

 

361

 

 

334

 

 

361

 

Other Commercial

 

 

23

 

 

 

 

11

 

 

23

 

 

11

 

LHFI 30-59 days past due

 

$

8,694

 

$

20,782

 

$

11,230

 

$

8,694

 

$

11,230

 

Commercial real estate - owner occupied

 

 

10

 

 

798

 

 

807

 

 

10

 

 

807

 

Commercial & Industrial

 

 

400

 

 

61

 

 

546

 

 

400

 

 

546

 

Residential 1-4 Family - Commercial

 

 

189

 

 

271

 

 

474

 

 

189

 

 

474

 

Residential 1-4 Family - Consumer

 

 

2,813

 

 

158

 

 

1,646

 

 

2,813

 

 

1,646

 

Residential 1-4 Family - Revolving

 

 

1,114

 

 

1,069

 

 

731

 

 

1,114

 

 

731

 

Auto

 

 

564

 

 

295

 

 

213

 

 

564

 

 

213

 

Consumer

 

 

214

 

 

176

 

 

210

 

 

214

 

 

210

 

LHFI 60-89 days past due

 

$

5,304

 

$

2,828

 

$

4,627

 

$

5,304

 

$

4,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

 

$

24,109

 

$

30,854

 

$

20,449

 

$

24,109

 

$

20,449

 

Past Due and still accruing / total LHFI

 

 

0.16

%

 

0.21

%

 

0.15

%

 

0.16

%

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

152,084

 

$

153,443

 

$

138,767

 

$

305,528

 

$

269,698

 

FTE adjustment

 

 

3,666

 

 

3,788

 

 

3,577

 

 

7,455

 

 

6,912

 

Net interest income (FTE) (non-GAAP)

 

$

155,750

 

$

157,231

 

$

142,344

 

$

312,983

 

$

276,610

 

Noninterest income (GAAP)

 

 

24,197

 

 

9,628

 

 

38,286

 

 

33,824

 

 

68,439

 

Total revenue (FTE) (non-GAAP)

 

$

179,947

 

$

166,859

 

$

180,630

 

$

346,807

 

$

345,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

18,091,809

 

$

18,238,088

 

$

17,646,470

 

$

18,164,545

 

$

17,765,085

 

Net interest margin

 

 

3.37

%

 

3.41

%

 

3.15

%

 

3.39

%

 

3.06

%

Net interest margin (FTE)

 

 

3.45

%

 

3.50

%

 

3.24

%

 

3.47

%

 

3.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

 

$

20,602,332

 

$

20,103,370

 

$

19,661,799

 

$

20,602,332

 

$

19,661,799

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

23,469

 

 

24,482

 

 

31,621

 

 

23,469

 

 

31,621

 

Ending tangible assets (non-GAAP)

 

$

19,653,652

 

$

19,153,677

 

$

18,704,967

 

$

19,653,652

 

$

18,704,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

 

$

2,424,470

 

$

2,440,236

 

$

2,391,476

 

$

2,424,470

 

$

2,391,476

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

23,469

 

 

24,482

 

 

31,621

 

 

23,469

 

 

31,621

 

Less: Perpetual preferred stock

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

 

$

1,309,433

 

$

1,324,186

 

$

1,268,287

 

$

1,309,433

 

$

1,268,287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,460,741

 

$

2,423,600

 

$

2,445,045

 

$

2,442,273

 

$

2,552,418

 

Less: Average goodwill

 

 

925,211

 

 

925,211

 

 

935,446

 

 

925,211

 

 

935,503

 

Less: Average amortizable intangibles

 

 

23,748

 

 

25,588

 

 

38,707

 

 

24,663

 

 

40,217

 

Less: Average perpetual preferred stock

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

 

$

1,345,426

 

$

1,306,445

 

$

1,304,536

 

$

1,326,043

 

$

1,410,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

 

$

52,274

 

$

32,686

 

$

59,259

 

$

84,960

 

$

99,982

 

Plus: Amortization of intangibles, tax effected

 

 

1,751

 

 

1,800

 

 

2,303

 

 

3,550

 

 

4,704

 

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

 

$

54,025

 

$

34,486

 

$

61,562

 

$

88,510

 

$

104,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

 

16.11

%

 

10.71

%

 

18.93

%

 

13.46

%

 

14.97

%

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

55,241

 

$

35,653

 

 

$

62,226

 

 

$

90,894

 

 

$

105,916

 

 

Plus: Strategic cost saving initiatives, net of tax

 

 

3,109

 

 

 

 

 

 

 

 

3,109

 

 

 

 

 

Plus: Legal reserve, net of tax

 

 

 

 

3,950

 

 

 

 

 

 

3,950

 

 

 

 

 

Plus: Strategic branch closing and facility consolidation costs, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

4,351

 

 

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

 

 

2

 

 

(10,586

)

 

 

(2

)

 

 

(10,584

)

 

 

(2

)

 

Less: Gain on sale of DHFB, net of tax

 

 

 

 

 

 

 

7,984

 

 

 

 

 

 

7,984

 

 

Adjusted operating earnings (non-GAAP)

 

 

58,348

 

 

50,189

 

 

 

54,244

 

 

 

108,537

 

 

 

102,285

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

 

2,967

 

 

 

5,934

 

 

 

5,934

 

 

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

 

$

55,381

 

$

47,222

 

 

$

51,277

 

 

$

102,603

 

 

$

96,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

105,661

 

$

108,274

 

 

$

98,768

 

 

$

213,934

 

 

$

204,089

 

 

Less: Amortization of intangible assets

 

 

2,216

 

 

2,279

 

 

 

2,915

 

 

 

4,494

 

 

 

5,954

 

 

Less: Strategic cost saving initiatives

 

 

3,935

 

 

 

 

 

 

 

 

3,935

 

 

 

 

 

Less: Legal reserve

 

 

 

 

5,000

 

 

 

 

 

 

5,000

 

 

 

 

 

Less: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Adjusted operating noninterest expense (non-GAAP)

 

$

99,510

 

$

100,995

 

 

$

95,853

 

 

$

200,505

 

 

$

192,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

24,197

 

$

9,628

 

 

$

38,286

 

 

$

33,824

 

 

$

68,439

 

 

Less: Gain (loss) on sale of securities

 

 

2

 

 

(13,400

)

 

 

(2

)

 

 

(13,398

)

 

 

(2

)

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

9,082

 

 

 

 

 

 

9,082

 

 

Adjusted operating noninterest income (non-GAAP)

 

$

24,195

 

$

23,028

 

 

$

29,206

 

 

$

47,222

 

 

$

59,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

155,750

 

$

157,231

 

 

$

142,344

 

 

$

312,983

 

 

$

276,610

 

 

Adjusted operating noninterest income (non-GAAP)

 

 

24,195

 

 

23,028

 

 

 

29,206

 

 

 

47,222

 

 

 

59,359

 

 

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

 

$

179,945

 

$

180,259

 

 

$

171,550

 

 

$

360,205

 

 

$

335,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

59.94

%

 

66.40

 

%

 

55.78

 

%

 

63.04

 

%

 

60.36

 

%

Efficiency ratio (FTE) (1)

 

 

58.72

%

 

64.89

 

%

 

54.68

 

%

 

61.69

 

%

 

59.15

 

%

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

 

 

55.30

%

 

56.03

 

%

 

55.88

 

%

 

55.66

 

%

 

57.34

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

 

$

58,348

 

$

50,189

 

 

$

54,244

 

 

$

108,537

 

 

$

102,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

20,209,687

 

$

20,384,351

 

 

$

19,719,402

 

 

$

20,296,536

 

 

$

19,819,330

 

 

Return on average assets (ROA) (GAAP)

 

 

1.10

%

 

0.71

 

%

 

1.27

 

%

 

0.90

 

%

 

1.08

 

%

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

 

 

1.16

%

 

1.00

 

%

 

1.10

 

%

 

1.08

 

%

 

1.04

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,460,741

 

$

2,423,600

 

 

$

2,445,045

 

 

$

2,442,273

 

 

$

2,552,418

 

 

Return on average equity (ROE) (GAAP)

 

 

9.00

%

 

5.97

 

%

 

10.21

 

%

 

7.51

 

%

 

8.37

 

%

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

 

 

9.51

%

 

8.40

 

%

 

8.90

 

%

 

8.96

 

%

 

8.08

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

55,381

 

$

47,222

 

 

$

51,277

 

 

$

102,603

 

 

$

96,351

 

 

Plus: Amortization of intangibles, tax effected

 

 

1,751

 

 

1,800

 

 

 

2,303

 

 

 

3,550

 

 

 

4,704

 

 

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

 

$

57,132

 

$

49,022

 

 

$

53,580

 

 

$

106,153

 

 

$

101,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

 

$

1,345,426

 

$

1,306,445

 

 

$

1,304,536

 

 

$

1,326,043

 

 

$

1,410,342

 

 

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

 

 

17.03

%

 

15.22

 

%

 

16.47

 

%

 

16.14

 

%

 

14.45

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

55,241

 

$

35,653

 

 

$

62,226

 

 

$

90,894

 

 

$

105,916

 

 

Plus: Provision for credit losses

 

 

6,069

 

 

11,850

 

 

 

3,559

 

 

 

17,920

 

 

 

6,359

 

 

Plus: Income tax expense

 

 

9,310

 

 

7,294

 

 

 

12,500

 

 

 

16,604

 

 

 

21,773

 

 

Plus: Strategic cost saving initiatives

 

 

3,935

 

 

 

 

 

 

 

 

3,935

 

 

 

 

 

Plus: Legal reserve

 

 

 

 

5,000

 

 

 

 

 

 

5,000

 

 

 

 

 

Plus: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Less: Gain (loss) on sale of securities

 

 

2

 

 

(13,400

)

 

 

(2

)

 

 

(13,398

)

 

 

(2

)

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

9,082

 

 

 

 

 

 

9,082

 

 

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

 

$

74,553

 

$

73,197

 

 

$

69,205

 

 

$

147,751

 

 

$

130,476

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

 

2,967

 

 

 

5,934

 

 

 

5,934

 

 

Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP)

 

$

71,586

 

$

70,230

 

 

$

66,238

 

 

$

141,817

 

 

$

124,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

74,995,557

 

 

74,835,514

 

 

 

74,849,871

 

 

 

74,915,977

 

 

 

75,201,326

 

 

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

 

$

0.95

 

$

0.94

 

 

$

0.88

 

 

$

1.89

 

 

$

1.66

 

 

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 Six Months Ended

 

 

 

06/30/23

 

03/31/23

 

06/30/22

 

06/30/23

 

06/30/22

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinance Volume

 

$

4,076

 

$

3,452

 

$

14,916

 

$

7,528

 

$

48,116

 

Purchase Volume

 

 

32,168

 

 

32,192

 

 

84,551

 

 

64,361

 

 

142,846

 

Total Mortgage loan originations held for sale

 

$

36,244

 

$

35,644

 

$

99,467

 

$

71,889

 

$

190,962

 

% of originations held for sale that are refinances

 

 

11.2

%

 

9.7

%

 

15.0

%

 

10.5

%

 

25.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under management

 

$

4,774,501

 

$

4,494,268

 

$

4,415,537

 

$

4,774,501

 

$

4,415,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period full-time employees

 

 

1,878

 

 

1,840

 

 

1,856

 

 

1,878

 

 

1,856

 

Number of full-service branches

 

 

109

 

 

109

 

 

114

 

 

109

 

 

114

 

Number of automatic transaction machines ("ATMs")

 

 

123

 

 

127

 

 

131

 

 

123

 

 

131

 

_____________________________

(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 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, gain (loss) on sale of securities, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), gain on sale of DHFB, as well as strategic branch closure initiatives and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations.

(5)

All ratios at June 30, 2023 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, gain (loss) on sale of securities, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic cost saving initiatives, gain on sale of DHFB, as well as strategic branch closure initiatives and related facility consolidation costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the organization’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, gain (loss) on sale of securities, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic cost saving initiatives, gain on sale of DHFB, as well as strategic branch closure initiatives and related facility consolidation costs. 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)

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

June 30,

 

2023

 

 

2022

 

 

2022

 

ASSETS

 

(unaudited)

 

 

(audited)

 

 

(unaudited)

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Cash and due from banks

$

199,778

 

 

$

216,384

 

 

$

158,902

 

Interest-bearing deposits in other banks

 

227,015

 

 

 

102,107

 

 

 

82,086

 

Federal funds sold

 

1,474

 

 

 

1,457

 

 

 

388

 

Total cash and cash equivalents

 

428,267

 

 

 

319,948

 

 

 

241,376

 

Securities available for sale, at fair value

 

2,182,448

 

 

 

2,741,816

 

 

 

2,951,421

 

Securities held to maturity, at carrying value

 

849,610

 

 

 

847,732

 

 

 

780,749

 

Restricted stock, at cost

 

111,178

 

 

 

120,213

 

 

 

87,908

 

Loans held for sale

 

10,327

 

 

 

3,936

 

 

 

15,866

 

Loans held for investment, net of deferred fees and costs

 

15,066,930

 

 

 

14,449,142

 

 

 

13,655,408

 

Less: allowance for loan and lease losses

 

120,683

 

 

 

110,768

 

 

 

104,184

 

Total loans held for investment, net

 

14,946,247

 

 

 

14,338,374

 

 

 

13,551,224

 

Premises and equipment, net

 

114,786

 

 

 

118,243

 

 

 

128,661

 

Goodwill

 

925,211

 

 

 

925,211

 

 

 

925,211

 

Amortizable intangibles, net

 

23,469

 

 

 

26,761

 

 

 

31,621

 

Bank owned life insurance

 

446,441

 

 

 

440,656

 

 

 

436,703

 

Other assets

 

564,348

 

 

 

578,248

 

 

 

511,059

 

Total assets

$

20,602,332

 

 

$

20,461,138

 

 

$

19,661,799

 

LIABILITIES

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

4,310,306

 

 

$

4,883,239

 

 

$

5,361,538

 

Interest-bearing deposits

 

12,101,681

 

 

 

11,048,438

 

 

 

10,767,097

 

Total deposits

 

16,411,987

 

 

 

15,931,677

 

 

 

16,128,635

 

Securities sold under agreements to repurchase

 

130,461

 

 

 

142,837

 

 

 

118,658

 

Other short-term borrowings

 

799,400

 

 

 

1,176,000

 

 

 

290,000

 

Long-term borrowings

 

390,440

 

 

 

389,863

 

 

 

389,290

 

Other liabilities

 

445,574

 

 

 

448,024

 

 

 

343,740

 

Total liabilities

 

18,177,862

 

 

 

18,088,401

 

 

 

17,270,323

 

Commitments and contingencies

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

Common stock, $1.33 par value

 

99,088

 

 

 

98,873

 

 

 

98,822

 

Additional paid-in capital

 

1,776,494

 

 

 

1,772,440

 

 

 

1,767,063

 

Retained earnings

 

959,582

 

 

 

919,537

 

 

 

841,701

 

Accumulated other comprehensive loss

 

(410,867

)

 

 

(418,286

)

 

 

(316,283

)

Total stockholders' equity

 

2,424,470

 

 

 

2,372,737

 

 

 

2,391,476

 

Total liabilities and stockholders' equity

$

20,602,332

 

 

$

20,461,138

 

 

$

19,661,799

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

74,998,075

 

 

 

74,712,622

 

 

 

74,688,314

 

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

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

2023

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

205,172

 

$

189,992

 

 

$

123,266

 

 

$

395,165

 

 

$

237,466

 

Interest on deposits in other banks

 

1,014

 

 

1,493

 

 

 

157

 

 

 

2,507

 

 

 

288

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

15,565

 

 

16,753

 

 

 

14,695

 

 

 

32,317

 

 

 

28,361

 

Nontaxable

 

8,496

 

 

9,308

 

 

 

10,637

 

 

 

17,804

 

 

 

21,097

 

Total interest and dividend income

 

230,247

 

 

217,546

 

 

 

148,755

 

 

 

447,793

 

 

 

287,212

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

65,267

 

 

51,834

 

 

 

6,097

 

 

 

117,100

 

 

 

10,580

 

Interest on short-term borrowings

 

8,044

 

 

7,563

 

 

 

555

 

 

 

15,607

 

 

 

576

 

Interest on long-term borrowings

 

4,852

 

 

4,706

 

 

 

3,336

 

 

 

9,558

 

 

 

6,358

 

Total interest expense

 

78,163

 

 

64,103

 

 

 

9,988

 

 

 

142,265

 

 

 

17,514

 

Net interest income

 

152,084

 

 

153,443

 

 

 

138,767

 

 

 

305,528

 

 

 

269,698

 

Provision for credit losses

 

6,069

 

 

11,850

 

 

 

3,559

 

 

 

17,920

 

 

 

6,359

 

Net interest income after provision for credit losses

 

146,015

 

 

141,593

 

 

 

135,208

 

 

 

287,608

 

 

 

263,339

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

8,118

 

 

7,902

 

 

 

8,040

 

 

 

16,020

 

 

 

15,637

 

Other service charges, commissions and fees

 

1,693

 

 

1,746

 

 

 

1,709

 

 

 

3,439

 

 

 

3,364

 

Interchange fees

 

2,459

 

 

2,325

 

 

 

2,268

 

 

 

4,784

 

 

 

4,078

 

Fiduciary and asset management fees

 

4,359

 

 

4,262

 

 

 

6,939

 

 

 

8,620

 

 

 

14,194

 

Mortgage banking income

 

449

 

 

854

 

 

 

2,200

 

 

 

1,303

 

 

 

5,317

 

Gain (loss) on sale of securities

 

2

 

 

(13,400

)

 

 

(2

)

 

 

(13,398

)

 

 

(2

)

Bank owned life insurance income

 

2,870

 

 

2,828

 

 

 

2,716

 

 

 

5,698

 

 

 

5,413

 

Loan-related interest rate swap fees

 

2,316

 

 

1,439

 

 

 

2,600

 

 

 

3,755

 

 

 

6,460

 

Other operating income

 

1,931

 

 

1,672

 

 

 

11,816

 

 

 

3,603

 

 

 

13,978

 

Total noninterest income

 

24,197

 

 

9,628

 

 

 

38,286

 

 

 

33,824

 

 

 

68,439

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

62,019

 

 

60,529

 

 

 

55,305

 

 

 

122,547

 

 

 

113,603

 

Occupancy expenses

 

6,094

 

 

6,356

 

 

 

6,395

 

 

 

12,450

 

 

 

13,278

 

Furniture and equipment expenses

 

3,565

 

 

3,752

 

 

 

3,590

 

 

 

7,317

 

 

 

7,187

 

Technology and data processing

 

8,566

 

 

8,142

 

 

 

7,862

 

 

 

16,708

 

 

 

15,658

 

Professional services

 

4,433

 

 

3,413

 

 

 

4,680

 

 

 

7,847

 

 

 

8,770

 

Marketing and advertising expense

 

2,817

 

 

2,351

 

 

 

2,502

 

 

 

5,168

 

 

 

4,665

 

FDIC assessment premiums and other insurance

 

4,074

 

 

3,899

 

 

 

2,765

 

 

 

7,973

 

 

 

5,250

 

Franchise and other taxes

 

4,499

 

 

4,498

 

 

 

4,500

 

 

 

8,997

 

 

 

8,999

 

Loan-related expenses

 

1,619

 

 

1,552

 

 

 

1,867

 

 

 

3,171

 

 

 

3,643

 

Amortization of intangible assets

 

2,216

 

 

2,279

 

 

 

2,915

 

 

 

4,494

 

 

 

5,954

 

Other expenses

 

5,759

 

 

11,503

 

 

 

6,387

 

 

 

17,262

 

 

 

17,082

 

Total noninterest expenses

 

105,661

 

 

108,274

 

 

 

98,768

 

 

 

213,934

 

 

 

204,089

 

Income before income taxes

 

64,551

 

 

42,947

 

 

 

74,726

 

 

 

107,498

 

 

 

127,689

 

Income tax expense

 

9,310

 

 

7,294

 

 

 

12,500

 

 

 

16,604

 

 

 

21,773

 

Net income

$

55,241

 

$

35,653

 

 

$

62,226

 

 

 

90,894

 

 

 

105,916

 

Dividends on preferred stock

 

2,967

 

 

2,967

 

 

 

2,967

 

 

 

5,934

 

 

 

5,934

 

Net income available to common shareholders

$

52,274

 

$

32,686

 

 

$

59,259

 

 

$

84,960

 

 

$

99,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.70

 

$

0.44

 

 

$

0.79

 

 

$

1.13

 

 

$

1.33

 

Diluted earnings per common share

$

0.70

 

$

0.44

 

 

$

0.79

 

 

$

1.13

 

 

$

1.33

 

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

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

June 30, 2023

 

March 31, 2023

 

Average

Balance

 

Interest

Income /

Expense (1)

 

Yield /

Rate (1)(2)

 

Average

Balance

 

Interest

Income /

Expense (1)

 

Yield /

Rate (1)(2)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

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