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Atlantic Union Bankshares Reports Fourth Quarter and Full Year Financial Results

Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $53.9 million and basic and diluted earnings per common share of $0.72 for the fourth quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $58.9 million and adjusted diluted operating earnings per common share(1) of $0.78 for the fourth quarter of 2023.

Net income available to common shareholders was $190.0 million and basic and diluted earnings per common share were $2.53 for the year ended December 31, 2023. Adjusted operating earnings available to common shareholders(1) were $221.2 million and adjusted diluted operating earnings per common share(1) were $2.95 for the year ended December 31, 2023.

In the fourth quarter of 2023, the Company’s adjusted operating earnings(1) included the following main pre-tax adjustments:

  • a $3.4 million Federal Deposit Insurance Corporation (“FDIC“) special assessment;
  • an additional $3.3 million legal reserve related to the previously disclosed settlement with the Consumer Financial Protection Bureau (“CFPB”);
  • $1.0 million in merger related costs associated with our pending merger with American National Bankshares Inc. (“American National”); and
  • $1.9 million gain related to a sale-leaseback transaction executed in the quarter.

“Looking back at 2023, it was a successful year for Atlantic Union, as we made good progress against our strategic plan, successfully responded to challenges within the banking industry, and delivered strong operating results,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We undertook important actions that we believe will better position Atlantic Union for the future and preserve positive operating leverage, including a meaningful reduction to our structural expense base, our pending acquisition of American National Bank in Danville, Virginia, and balance sheet restructuring. Additionally, our strong customer relationships, our stable deposit base, and strong asset quality have served us well in this demanding operating environment.”

“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. 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 fourth quarter of 2023, net interest income was $153.5 million, an increase of $1.6 million from $151.9 million in the third quarter of 2023. Net interest income (FTE)(1) was $157.3 million in the fourth quarter of 2023, an increase of $1.6 million from $155.7 million in the third quarter of 2023. The increases in net interest income and net interest income (FTE)( 1) were driven by higher yields on both available for sale (“AFS”) securities and the loan portfolio, as well as growth in average loans held for investment (“LHFI”). These increases were partially offset by higher deposit costs driven by continued competition for deposits, which drove higher customer deposit rates, changes in the deposit mix, as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances. Our net interest margin decreased 1 basis point from the prior quarter to 3.26% for the quarter ended December 31, 2023, and our net interest margin (FTE)(1) decreased 1 basis point to 3.34% for the quarter ended December 31, 2023. Earning asset yields for the fourth quarter of 2023 increased 20 basis points to 5.59% compared to the third quarter of 2023, primarily due to higher yields on loans and investments, as well as loan growth. Our cost of funds increased by 21 basis points to 2.25% at December 31, 2023 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 $718,000 for the quarter ended December 31, 2023, representing a decrease of $361,000. The impact of net accretion in the third and fourth quarters of 2023 are reflected in the following table (dollars in thousands):

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended September 30, 2023

 

$

1,300

 

$

(6

)

 

$

(215

)

 

$

1,079

For the quarter ended December 31, 2023

 

 

937

 

 

 

(4

)

 

 

(215

)

 

 

718

 

ASSET QUALITY

Overview

At December 31, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.24%, an increase of 5 basis points from the prior quarter and included nonaccrual loans of $36.9 million. The increase in NPAs was primarily due to two new nonaccrual loans within the commercial real estate – non owner occupied and commercial and industrial portfolios. Accruing past due loans as a percentage of total LHFI totaled 31 basis points at December 31, 2023, an increase of 4 basis points from September 30, 2023, and an increase of 10 basis points from December 31, 2022. The increase in past due loan levels from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase in residential 1-4 family – consumer loans that were 30 days past due as of year-end, the majority of which subsequently became current. Net charge-offs were 0.03% of total average LHFI (annualized) for the fourth quarter of 2023, an increase of 2 basis points from September 30, 2023, and an increase of 1 basis point from December 31, 2022. The allowance for credit losses (“ACL”) totaled $148.5 million at December 31, 2023, a $7.5 million increase from the prior quarter.

Nonperforming Assets

At December 31, 2023, NPAs totaled $36.9 million, compared to $28.8 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

2023

 

2023

 

2023

 

2022

Nonaccrual loans

 

$

36,860

 

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

Foreclosed properties

 

 

29

 

 

149

 

 

50

 

 

29

 

 

76

Total nonperforming assets

 

$

36,889

 

 

$

28,775

 

 

$

29,155

 

 

$

29,111

 

 

$

27,114

 

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

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

2023

 

2023

 

2023

 

2022

Beginning Balance

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

 

$

26,500

 

Net customer payments

 

 

(2,198

)

 

 

(1,947

)

 

 

(5,950

)

 

 

(1,755

)

 

 

(1,805

)

Additions

 

 

10,604

 

 

 

1,651

 

 

 

6,685

 

 

 

4,151

 

 

 

2,935

 

Charge-offs

 

 

(172

)

 

 

(64

)

 

 

(712

)

 

 

(39

)

 

 

(461

)

Loans returning to accruing status

 

 

 

 

 

(119

)

 

 

 

 

 

(313

)

 

 

(131

)

Ending Balance

 

$

36,860

 

 

$

28,626

 

 

$

29,105

 

 

$

29,082

 

 

$

27,038

 

Past Due Loans

At December 31, 2023, past due loans still accruing interest totaled $48.4 million or 0.31% of total LHFI, compared to $40.6 million or 0.27% of total LHFI at September 30, 2023, and $30.0 million or 0.21% of total LHFI at December 31, 2022. The increase in past due loan levels at December 31, 2023 from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase related to residential 1-4 family – consumer loans that were 30 days past due at year-end, the majority of which subsequently became current. Of the total past due loans still accruing interest, $13.9 million or 0.09% of total LHFI were loans past due 90 days or more at December 31, 2023, compared to $11.9 million or 0.08% of total LHFI at September 30, 2023, and $7.5 million or 0.05% of total LHFI at December 31, 2022. The increase in loans past due 90 days or more at December 31, 2023 from both September 30, 2023 was primarily due to one credit relationship within the residential 1-4 family – commercial portfolio and two credit relationships within the residential 1-4 family – consumer portfolio.

Allowance for Credit Losses

At December 31, 2023, the ACL was $148.5 million and included an allowance for loan and lease losses (“ALLL”) of $132.2 million and a reserve for unfunded commitments of $16.3 million. The ACL at December 31, 2023 increased $7.5 million from September 30, 2023 primarily due to loan growth in the fourth quarter of 2023 and an increase in the allowance on two individually assessed loans due to changes in borrower-specific circumstances. The reserve for unfunded commitments at December 31, 2023 increased $967,000 from September 30, 2023, primarily driven by an increase in unfunded commitments.

The ACL as a percentage of total LHFI was 0.95% at December 31, 2023, an increase of 3 basis points from September 30, 2023. The ALLL as a percentage of total LHFI was 0.85% at December 31, 2023, compared to 0.82% at September 30, 2023.

Net Charge-offs

Net charge-offs were $1.2 million or 0.03% of total average LHFI on an annualized basis for the fourth quarter of 2023, compared to $294,000 or 0.01% (annualized) for the third quarter of 2023, and $810,000 or 0.02% (annualized) for the fourth quarter of 2022. The majority of net charge-offs in the fourth quarter of 2023 were related to overdrawn deposit accounts and third-party lending loans within the consumer portfolio.

Provision for Credit Losses

For the fourth quarter of 2023, the Company recorded a provision for credit losses of $8.7 million, compared to a provision for credit losses of $5.0 million in the prior quarter, and a provision for credit losses of $6.3 million in the fourth quarter of 2022.

NONINTEREST INCOME

Noninterest income increased $2.9 million to $30.0 million for the fourth quarter of 2023 from $27.1 million in the prior quarter, primarily driven by a $1.9 million gain related to a sale-leaseback transaction associated with one branch location executed during the fourth quarter, a $893,000 increase in loan-related interest rate swap fees in the fourth quarter due to several new swap transactions, and a $679,000 increase in loan syndication revenue in the fourth quarter (included in other operating income). In addition, other service charges, commissions, and fees decreased $843,000 in the fourth quarter, primarily due to a merchant vendor contract signing bonus realized in the prior quarter. Noninterest income in the prior quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities.

NONINTEREST EXPENSE

Noninterest expense decreased $579,000 to $107.9 million for the fourth quarter of 2023 from $108.5 million in the prior quarter, primarily driven by a decrease in other expenses due to costs associated with our strategic cost savings initiatives in the third quarter and lower merger-related costs associated with our pending merger with American National in the fourth quarter, partially offset by an increase in FDIC assessment premiums and other insurance due to a special assessment fee incurred in the fourth quarter and an increase in legal reserve related to our previously disclosed settlement with the CFPB (included in other expenses).

Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.1 million in the fourth quarter and $2.2 million in the third quarter), a FDIC special assessment ($3.4 million recognized in the fourth quarter), the legal reserve related to our previously disclosed settlement with the CFPB ($3.3 million in the fourth quarter), merger-related costs associated with our pending merger with American National ($1.0 million in the fourth quarter and $2.0 million in the third quarter), and expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter), increased $2.5 million to $98.2 million for the fourth quarter from $95.7 million in the prior quarter, primarily due to a $1.2 million increase in other expenses reflecting an increase in OREO and credit related expenses, higher teammate training and travel expenses, and annual debit card inventory purchases, a $1.1 million increase in professional services expense primarily in support of strategic initiatives in the fourth quarter and higher legal fees, a $799,000 increase in marketing and advertising expense primarily due to annual customer disclosure mailings, and a $591,000 increase in occupancy expense driven by the increased lease payments related to the sale-leaseback transaction executed in the third quarter. These increases were partially offset by a $763,000 decrease in salaries and benefits, reflecting the impact of headcount reductions from our strategic cost savings initiatives.

INCOME TAXES

The effective tax rate for the three months ended December 31, 2023 and 2022 was 14.9% and 14.3%, respectively, and the effective tax rate for the years ended December 31, 2023 and 2022 was 15.9% and 16.2%, respectively. The changes in the effective tax rate for the quarter ended and year ended December 31, 2023, compared to December 31, 2022 are primarily driven by the changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At December 31, 2023, total assets were $21.2 billion, an increase of $430.0 million or approximately 8.2% (annualized) from September 30, 2023, and an increase of $705.1 million or approximately 3.4% from December 31, 2022. Total assets increased from the prior quarter primarily due to a $351.4 million increase in LHFI (net of deferred fees and costs). In addition, investment securities increased $151.1 million primarily due to a decrease in unrealized losses in the AFS securities portfolio due to the impact of declining market interest rates. Total assets increased from the same period in the prior year primarily due to a $1.2 billion increase in LHFI (net of deferred fees and costs), partially offset by a $525.7 million decrease in investment securities due primarily to the sale of AFS securities in the first quarter of 2023.

At December 31, 2023, LHFI (net of deferred fees and costs) totaled $15.6 billion, an increase of $351.4 million or 9.1% (annualized) from $15.3 billion at September 30, 2023, and an increase of $1.2 billion or 8.2% from December 31, 2022. Quarterly average LHFI (net of deferred fees and costs) totaled $15.4 billion at December 31, 2023, an increase of $254.7 million or 6.7% (annualized) from the prior quarter, and an increase of $1.3 billion or 9.0% from December 31, 2022. LHFI (net of deferred fees and costs) increased from both the prior quarter and the prior year, primarily due to increases in the commercial and industrial and the multifamily real estate portfolios.

At December 31, 2023, total investments were $3.2 billion, an increase of $151.1 million from September 30, 2023 and a decrease of $525.7 million from December 31, 2022. AFS securities totaled $2.2 billion at December 31, 2023, $2.1 billion at September 30, 2023, and $2.7 billion at December 31, 2022. Total net unrealized losses on the AFS securities portfolio were $384.3 million at December 31, 2023, compared to $523.1 million at September 30, 2023 and $462.5 million at December 31, 2022. Held to maturity securities are carried at cost and totaled $837.4 million at December 31, 2023, $843.3 million at September 30, 2023, and $847.7 million at December 31, 2022 and had net unrealized losses of $29.3 million at December 31, 2023, compared to $81.2 million at September 30, 2023 and $45.8 million at December 31, 2022.

At December 31, 2023, total deposits were $16.8 billion, a slight increase compared to the prior quarter. Average deposits at December 31, 2023 increased from the prior quarter by $317.8 million or 7.5% (annualized). Total deposits at December 31, 2023 increased $886.5 million or 5.6% from December 31, 2022, and quarterly average deposits at December 31, 2023 increased $501.6 million or 3.0% 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 December 31, 2023, total borrowings were $1.3 billion, an increase of $291.2 million from September 30, 2023, and a decrease of $396.8 million from December 31, 2022. Total borrowings increased from the prior quarter primarily due to increased short-term borrowings used to fund loan growth and decreased from the same period in the prior year due to paydowns of short-term borrowings due to deposit growth.

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

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

 

 

2023

 

2023

 

2022

 

Common equity Tier 1 capital ratio (2)

 

9.84

%

9.94

%

9.95

%

Tier 1 capital ratio (2)

 

10.76

%

10.88

%

10.93

%

Total capital ratio (2)

 

13.55

%

13.70

%

13.70

%

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

 

9.63

%

9.62

%

9.42

%

Common equity to total assets

 

11.29

%

10.72

%

10.78

%

Tangible common equity to tangible assets (1)

 

7.15

%

6.45

%

6.43

%

_________________________

During the fourth 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 third quarter of 2023 and the fourth quarter of 2022. During the fourth quarter of 2023, the Company also declared and paid cash dividends of $0.32 per common share, a $0.02 increase or approximately 6.7% from both the third quarter of 2023 and the fourth 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 December 31, 2023 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 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2023. 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.

FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 23, 2024, during which the Company’s management will review the Company’s financial results for the fourth quarter and full year 2023 and provide an update on recent activities.

The listen-only webcast and the accompanying slides can be accessed at:

https://edge.media-server.com/mmc/p/7yyvrwjv.

For analysts who wish to participate in the conference call, please register at the following URL:

https://register.vevent.com/register/BIfcd55f61c1d2456f9533b66bb36886b9. 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 December 31, 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 and funding, the impact of future economic conditions, changes in economic conditions, our asset quality, our customer relationships, the expected impact of our cost saving measures initiated in the second quarter of 2023, 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 failure to close our previously announced merger with American National when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger;
  • the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National;
  • any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current interest rate environment;
  • the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all;
  • the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events;
  • the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger;
  • potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger;
  • the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger;
  • changes in the Company’s or American National’s share price before closing;
  • 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 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, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and 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 our 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

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

259,497

 

$

247,159

 

$

202,068

 

$

954,450

 

$

660,435

 

Interest expense

 

 

105,953

 

 

95,218

 

 

38,220

 

 

343,437

 

 

76,174

 

Net interest income

 

 

153,544

 

 

151,941

 

 

163,848

 

 

611,013

 

 

584,261

 

Provision for credit losses

 

 

8,707

 

 

4,991

 

 

6,257

 

 

31,618

 

 

19,028

 

Net interest income after provision for credit losses

 

 

144,837

 

 

146,950

 

 

157,591

 

 

579,395

 

 

565,233

 

Noninterest income

 

 

29,959

 

 

27,094

 

 

24,500

 

 

90,877

 

 

118,523

 

Noninterest expenses

 

 

107,929

 

 

108,508

 

 

99,790

 

 

430,371

 

 

403,802

 

Income before income taxes

 

 

66,867

 

 

65,536

 

 

82,301

 

 

239,901

 

 

279,954

 

Income tax expense

 

 

9,960

 

 

11,519

 

 

11,777

 

 

38,083

 

 

45,444

 

Net income

 

 

56,907

 

 

54,017

 

 

70,524

 

 

201,818

 

 

234,510

 

Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

2,967

 

 

11,868

 

 

11,868

 

Net income available to common shareholders

 

$

53,940

 

$

51,050

 

$

67,557

 

$

189,950

 

$

222,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

 

$

263,209

 

$

250,903

 

$

206,186

 

$

969,360

 

$

675,308

 

Net interest income (FTE) (1)

 

 

157,256

 

 

155,685

 

 

167,966

 

 

625,923

 

 

599,134

 

Total revenue (FTE) (1)

 

 

187,215

 

 

182,779

 

 

192,466

 

 

716,800

 

 

717,657

 

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

 

 

81,356

 

 

81,086

 

 

88,559

 

 

310,193

 

 

295,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

 

$

0.72

 

$

0.68

 

$

0.90

 

$

2.53

 

$

2.97

 

Return on average assets (ROA)

 

 

1.08

%

 

1.04

%

 

1.39

%

 

0.98

%

 

1.18

%

Return on average equity (ROE)

 

 

9.29

%

 

8.76

%

 

12.05

%

 

8.27

%

 

9.51

%

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

 

 

16.72

%

 

15.71

%

 

22.92

%

 

14.85

%

 

17.33

%

Efficiency ratio

 

 

58.82

%

 

60.61

%

 

52.98

%

 

61.32

%

 

57.46

%

Efficiency ratio (FTE) (1)

 

 

57.65

%

 

59.37

%

 

51.85

%

 

60.04

%

 

56.27

%

Net interest margin

 

 

3.26

%

 

3.27

%

 

3.61

%

 

3.33

%

 

3.27

%

Net interest margin (FTE) (1)

 

 

3.34

%

 

3.35

%

 

3.70

%

 

3.41

%

 

3.36

%

Yields on earning assets (FTE) (1)

 

 

5.59

%

 

5.39

%

 

4.54

%

 

5.28

%

 

3.78

%

Cost of interest-bearing liabilities

 

 

3.04

%

 

2.80

%

 

1.24

%

 

2.59

%

 

0.64

%

Cost of deposits

 

 

2.23

%

 

1.97

%

 

0.72

%

 

1.78

%

 

0.34

%

Cost of funds

 

 

2.25

%

 

2.04

%

 

0.84

%

 

1.87

%

 

0.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

 

$

61,820

 

$

62,749

 

$

70,525

 

$

233,106

 

$

230,879

 

Adjusted operating earnings available to common shareholders

 

 

58,853

 

 

59,782

 

 

67,558

 

 

221,238

 

 

219,011

 

Adjusted operating earnings per common share, diluted

 

$

0.78

 

$

0.80

 

$

0.90

 

$

2.95

 

$

2.92

 

Adjusted operating ROA

 

 

1.18

%

 

1.21

%

 

1.39

%

 

1.14

%

 

1.16

%

Adjusted operating ROE

 

 

10.09

%

 

10.17

%

 

12.05

%

 

9.55

%

 

9.37

%

Adjusted operating ROTCE (2) (3)

 

 

18.20

%

 

18.31

%

 

22.92

%

 

17.21

%

 

17.06

%

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

 

 

52.97

%

 

52.36

%

 

50.61

%

 

54.15

%

 

54.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.72

 

$

0.68

 

$

0.90

 

$

2.53

 

$

2.97

 

Earnings per common share, diluted

 

 

0.72

 

 

0.68

 

 

0.90

 

 

2.53

 

 

2.97

 

Cash dividends paid per common share

 

 

0.32

 

 

0.30

 

 

0.30

 

 

1.22

 

 

1.16

 

Market value per share

 

 

36.54

 

 

28.78

 

 

35.14

 

 

36.54

 

 

35.14

 

Book value per common share

 

 

32.06

 

 

29.82

 

 

29.68

 

 

32.06

 

 

29.68

 

Tangible book value per common share (2)

 

 

19.39

 

 

17.12

 

 

16.87

 

 

19.39

 

 

16.87

 

Price to earnings ratio, diluted

 

 

12.80

 

 

10.65

 

 

9.79

 

 

14.42

 

 

11.83

 

Price to book value per common share ratio

 

 

1.14

 

 

0.97

 

 

1.18

 

 

1.14

 

 

1.18

 

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

 

 

1.88

 

 

1.68

 

 

2.08

 

 

1.88

 

 

2.08

 

Weighted average common shares outstanding, basic

 

 

75,016,402

 

 

74,999,128

 

 

74,712,040

 

 

74,961,390

 

 

74,949,109

 

Weighted average common shares outstanding, diluted

 

 

75,016,858

 

 

74,999,128

 

 

74,713,972

 

 

74,962,363

 

 

74,953,398

 

Common shares outstanding at end of period

 

 

75,023,327

 

 

74,997,132

 

 

74,712,622

 

 

75,023,327

 

 

74,712,622

 

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

 

9.84

%

 

9.94

%

 

9.95

%

 

9.84

%

 

9.95

%

Tier 1 capital ratio (5)

 

 

10.76

%

 

10.88

%

 

10.93

%

 

10.76

%

 

10.93

%

Total capital ratio (5)

 

 

13.55

%

 

13.70

%

 

13.70

%

 

13.55

%

 

13.70

%

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

 

 

9.63

%

 

9.62

%

 

9.42

%

 

9.63

%

 

9.42

%

Common equity to total assets

 

 

11.29

%

 

10.72

%

 

10.78

%

 

11.29

%

 

10.78

%

Tangible common equity to tangible assets (2)

 

 

7.15

%

 

6.45

%

 

6.43

%

 

7.15

%

 

6.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

21,166,197

 

$

20,736,236

 

$

20,461,138

 

$

21,166,197

 

$

20,461,138

 

LHFI (net of deferred fees and costs)

 

 

15,635,043

 

 

15,283,620

 

 

14,449,142

 

 

15,635,043

 

 

14,449,142

 

Securities

 

 

3,184,111

 

 

3,032,982

 

 

3,709,761

 

 

3,184,111

 

 

3,709,761

 

Earning Assets

 

 

19,010,309

 

 

18,491,561

 

 

18,271,430

 

 

19,010,309

 

 

18,271,430

 

Goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Amortizable intangibles, net

 

 

19,183

 

 

21,277

 

 

26,761

 

 

19,183

 

 

26,761

 

Deposits

 

 

16,818,129

 

 

16,786,505

 

 

15,931,677

 

 

16,818,129

 

 

15,931,677

 

Borrowings

 

 

1,311,858

 

 

1,020,669

 

 

1,708,700

 

 

1,311,858

 

 

1,708,700

 

Stockholders' equity

 

 

2,556,327

 

 

2,388,801

 

 

2,372,737

 

 

2,556,327

 

 

2,372,737

 

Tangible common equity (2)

 

 

1,445,576

 

 

1,275,956

 

 

1,254,408

 

 

1,445,576

 

 

1,254,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LHFI, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

1,107,850

 

$

1,132,940

 

$

1,101,260

 

$

1,107,850

 

$

1,101,260

 

Commercial real estate - owner occupied

 

 

1,998,787

 

 

1,975,281

 

 

1,982,608

 

 

1,998,787

 

 

1,982,608

 

Commercial real estate - non-owner occupied

 

 

4,172,401

 

 

4,148,218

 

 

3,996,130

 

 

4,172,401

 

 

3,996,130

 

Multifamily real estate

 

 

1,061,997

 

 

947,153

 

 

802,923

 

 

1,061,997

 

 

802,923

 

Commercial & Industrial

 

 

3,589,347

 

 

3,432,319

 

 

2,983,349

 

 

3,589,347

 

 

2,983,349

 

Residential 1-4 Family - Commercial

 

 

522,580

 

 

517,034

 

 

538,063

 

 

522,580

 

 

538,063

 

Residential 1-4 Family - Consumer

 

 

1,078,173

 

 

1,057,294

 

 

940,275

 

 

1,078,173

 

 

940,275

 

Residential 1-4 Family - Revolving

 

 

619,433

 

 

599,282

 

 

585,184

 

 

619,433

 

 

585,184

 

Auto

 

 

486,926

 

 

534,361

 

 

592,976

 

 

486,926

 

 

592,976

 

Consumer

 

 

120,641

 

 

126,151

 

 

152,545

 

 

120,641

 

 

152,545

 

Other Commercial

 

 

876,908

 

 

813,587

 

 

773,829

 

 

876,908

 

 

773,829

 

Total LHFI

 

$

15,635,043

 

$

15,283,620

 

$

14,449,142

 

$

15,635,043

 

$

14,449,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

 

$

4,697,819

 

$

5,055,464

 

$

4,186,505

 

$

4,697,819

 

$

4,186,505

 

Money market accounts

 

 

3,850,679

 

 

3,472,953

 

 

3,922,533

 

 

3,850,679

 

 

3,922,533

 

Savings accounts

 

 

909,223

 

 

950,363

 

 

1,130,899

 

 

909,223

 

 

1,130,899

 

Customer time deposits of $250,000 and over

 

 

674,939

 

 

634,950

 

 

405,060

 

 

674,939

 

 

405,060

 

Other customer time deposits

 

 

2,173,904

 

 

2,011,106

 

 

1,396,011

 

 

2,173,904

 

 

1,396,011

 

Time deposits

 

 

2,848,843

 

 

2,646,056

 

 

1,801,071

 

 

2,848,843

 

 

1,801,071

 

Total interest-bearing customer deposits

 

 

12,306,564

 

 

12,124,836

 

 

11,041,008

 

 

12,306,564

 

 

11,041,008

 

Brokered deposits

 

 

548,384

 

 

516,720

 

 

7,430

 

 

548,384

 

 

7,430

 

Total interest-bearing deposits

 

$

12,854,948

 

$

12,641,556

 

$

11,048,438

 

$

12,854,948

 

$

11,048,438

 

Demand deposits

 

 

3,963,181

 

 

4,144,949

 

 

4,883,239

 

 

3,963,181

 

 

4,883,239

 

Total deposits

 

$

16,818,129

 

$

16,786,505

 

$

15,931,677

 

$

16,818,129

 

$

15,931,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,853,306

 

$

20,596,189

 

$

20,174,152

 

$

20,512,402

 

$

19,949,388

 

LHFI (net of deferred fees and costs)

 

 

15,394,500

 

 

15,139,761

 

 

14,117,433

 

 

14,949,487

 

 

13,671,714

 

Loans held for sale

 

 

6,470

 

 

10,649

 

 

7,809

 

 

9,357

 

 

14,519

 

Securities

 

 

3,031,475

 

 

3,101,658

 

 

3,644,196

 

 

3,192,891

 

 

3,896,337

 

Earning assets

 

 

18,676,967

 

 

18,462,505

 

 

18,000,596

 

 

18,368,806

 

 

17,853,216

 

Deposits

 

 

17,113,369

 

 

16,795,611

 

 

16,611,749

 

 

16,653,888

 

 

16,451,718

 

Time deposits

 

 

3,128,048

 

 

2,914,004

 

 

1,764,596

 

 

2,711,491

 

 

1,735,983

 

Interest-bearing deposits

 

 

13,026,138

 

 

12,576,776

 

 

11,415,032

 

 

12,311,751

 

 

11,172,759

 

Borrowings

 

 

792,629

 

 

905,170

 

 

816,818

 

 

971,715

 

 

700,271

 

Interest-bearing liabilities

 

 

13,818,767

 

 

13,481,946

 

 

12,231,850

 

 

13,283,466

 

 

11,873,030

 

Stockholders' equity

 

 

2,430,711

 

 

2,446,902

 

 

2,321,208

 

 

2,440,525

 

 

2,465,049

 

Tangible common equity (2)

 

 

1,318,952

 

 

1,332,993

 

 

1,201,732

 

 

1,326,007

 

 

1,333,751

 

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

125,627

 

$

120,683

 

$

108,009

 

$

110,768

 

$

99,787

 

Add: Recoveries

 

 

853

 

 

1,335

 

 

1,332

 

 

4,390

 

 

5,076

 

Less: Charge-offs

 

 

2,038

 

 

1,629

 

 

2,142

 

 

11,995

 

 

7,409

 

Add: Provision for loan losses

 

 

7,740

 

 

5,238

 

 

3,569

 

 

29,019

 

 

13,314

 

Ending balance, ALLL

 

$

132,182

 

$

125,627

 

$

110,768

 

$

132,182

 

$

110,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

 

$

15,302

 

$

15,548

 

$

11,000

 

$

13,675

 

$

8,000

 

Add: Provision for unfunded commitments

 

 

967

 

 

(246)

 

 

2,675

 

 

2,594

 

 

5,675

 

Ending balance, RUC

 

$

16,269

 

$

15,302

 

$

13,675

 

$

16,269

 

$

13,675

 

Total ACL

 

$

148,451

 

$

140,929

 

$

124,443

 

$

148,451

 

$

124,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL / total LHFI

 

 

0.95

%

 

0.92

%

 

0.86

%

 

0.95

%

 

0.86

%

ALLL / total LHFI

 

 

0.85

%

 

0.82

%

 

0.77

%

 

0.85

%

 

0.77

%

Net charge-offs / total average LHFI (annualized)

 

 

0.03

%

 

0.01

%

 

0.02

%

 

0.05

%

 

0.02

%

Provision for loan losses/ total average LHFI (annualized)

 

 

0.20

%

 

0.14

%

 

0.10

%

 

0.19

%

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

348

 

$

355

 

$

307

 

$

348

 

$

307

 

Commercial real estate - owner occupied

 

 

3,001

 

 

3,882

 

 

7,178

 

 

3,001

 

 

7,178

 

Commercial real estate - non-owner occupied

 

 

12,616

 

 

5,999

 

 

1,263

 

 

12,616

 

 

1,263

 

Commercial & Industrial

 

 

4,556

 

 

2,256

 

 

1,884

 

 

4,556

 

 

1,884

 

Residential 1-4 Family - Commercial

 

 

1,804

 

 

1,833

 

 

1,904

 

 

1,804

 

 

1,904

 

Residential 1-4 Family - Consumer

 

 

11,098

 

 

10,368

 

 

10,846

 

 

11,098

 

 

10,846

 

Residential 1-4 Family - Revolving

 

 

3,087

 

 

3,572

 

 

3,453

 

 

3,087

 

 

3,453

 

Auto

 

 

350

 

 

361

 

 

200

 

 

350

 

 

200

 

Consumer

 

 

 

 

 

 

3

 

 

 

 

3

 

Nonaccrual loans

 

$

36,860

 

$

28,626

 

$

27,038

 

$

36,860

 

$

27,038

 

Foreclosed property

 

 

29

 

 

149

 

 

76

 

 

29

 

 

76

 

Total nonperforming assets (NPAs)

 

$

36,889

 

$

28,775

 

$

27,114

 

$

36,889

 

$

27,114

 

Construction and land development

 

$

25

 

$

25

 

$

100

 

$

25

 

$

100

 

Commercial real estate - owner occupied

 

 

2,579

 

 

2,395

 

 

2,167

 

 

2,579

 

 

2,167

 

Commercial real estate - non-owner occupied

 

 

2,967

 

 

2,835

 

 

607

 

 

2,967

 

 

607

 

Commercial & Industrial

 

 

782

 

 

792

 

 

459

 

 

782

 

 

459

 

Residential 1-4 Family - Commercial

 

 

1,383

 

 

817

 

 

275

 

 

1,383

 

 

275

 

Residential 1-4 Family - Consumer

 

 

4,470

 

 

3,632

 

 

1,955

 

 

4,470

 

 

1,955

 

Residential 1-4 Family - Revolving

 

 

1,095

 

 

1,034

 

 

1,384

 

 

1,095

 

 

1,384

 

Auto

 

 

410

 

 

229

 

 

344

 

 

410

 

 

344

 

Consumer

 

 

152

 

 

97

 

 

108

 

 

152

 

 

108

 

Other Commercial

 

 

 

 

15

 

 

91

 

 

 

 

91

 

LHFI ≥ 90 days and still accruing

 

$

13,863

 

$

11,871

 

$

7,490

 

$

13,863

 

$

7,490

 

Total NPAs and LHFI ≥ 90 days

 

$

50,752

 

$

40,646

 

$

34,604

 

$

50,752

 

$

34,604

 

NPAs / total LHFI

 

 

0.24

%

 

0.19

%

 

0.19

%

 

0.24

%

 

0.19

%

NPAs / total assets

 

 

0.17

%

 

0.14

%

 

0.13

%

 

0.17

%

 

0.13

%

ALLL / nonaccrual loans

 

 

358.61

%

 

438.86

%

 

409.68

%

 

358.61

%

 

409.68

%

ALLL/ nonperforming assets

 

 

358.32

%

 

436.58

%

 

408.53

%

 

358.32

%

 

408.53

%

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Past Due Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

270

 

$

 

$

1,253

 

$

270

 

$

1,253

 

Commercial real estate - owner occupied

 

 

1,575

 

 

3,501

 

 

2,305

 

 

1,575

 

 

2,305

 

Commercial real estate - non-owner occupied

 

 

545

 

 

4,573

 

 

1,121

 

 

545

 

 

1,121

 

Commercial & Industrial

 

 

4,303

 

 

3,049

 

 

824

 

 

4,303

 

 

824

 

Residential 1-4 Family - Commercial

 

 

567

 

 

744

 

 

1,231

 

 

567

 

 

1,231

 

Residential 1-4 Family - Consumer

 

 

7,546

 

 

1,000

 

 

5,951

 

 

7,546

 

 

5,951

 

Residential 1-4 Family - Revolving

 

 

2,238

 

 

2,326

 

 

1,843

 

 

2,238

 

 

1,843

 

Auto

 

 

4,737

 

 

2,703

 

 

2,747

 

 

4,737

 

 

2,747

 

Consumer

 

 

770

 

 

517

 

 

351

 

 

770

 

 

351

 

Other Commercial

 

 

6,569

 

 

3,545

 

 

 

 

6,569

 

 

 

LHFI 30-59 days past due

 

$

29,120

 

$

21,958

 

$

18,855

 

$

29,120

 

$

18,855

 

Construction and land development

 

$

24

 

$

386

 

$

45

 

$

24

 

$

45

 

Commercial real estate - owner occupied

 

 

 

 

1,902

 

 

635

 

 

 

 

635

 

Commercial real estate - non-owner occupied

 

 

184

 

 

797

 

 

48

 

 

184

 

 

48

 

Multifamily real estate

 

 

146

 

 

150

 

 

 

 

146

 

 

 

Commercial & Industrial

 

 

49

 

 

576

 

 

174

 

 

49

 

 

174

 

Residential 1-4 Family - Commercial

 

 

676

 

 

67

 

 

 

 

676

 

 

 

Residential 1-4 Family - Consumer

 

 

1,804

 

 

1,775

 

 

1,690

 

 

1,804

 

 

1,690

 

Residential 1-4 Family - Revolving

 

 

1,429

 

 

602

 

 

511

 

 

1,429

 

 

511

 

Auto

 

 

872

 

 

339

 

 

450

 

 

872

 

 

450

 

Consumer

 

 

232

 

 

164

 

 

125

 

 

232

 

 

125

 

LHFI 60-89 days past due

 

$

5,416

 

$

6,758

 

$

3,678

 

$

5,416

 

$

3,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

 

$

48,399

 

$

40,587

 

$

30,023

 

$

48,399

 

$

30,023

 

Past Due and still accruing / total LHFI

 

 

0.31

%

 

0.27

%

 

0.21

%

 

0.31

%

 

0.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

153,544

 

$

151,941

 

$

163,848

 

$

611,013

 

$

584,261

 

FTE adjustment

 

 

3,712

 

 

3,744

 

 

4,118

 

 

14,910

 

 

14,873

 

Net interest income (FTE) (non-GAAP)

 

$

157,256

 

$

155,685

 

$

167,966

 

$

625,923

 

$

599,134

 

Noninterest income (GAAP)

 

 

29,959

 

 

27,094

 

 

24,500

 

 

90,877

 

 

118,523

 

Total revenue (FTE) (non-GAAP)

 

$

187,215

 

$

182,779

 

$

192,466

 

$

716,800

 

$

717,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

18,676,967

 

$

18,462,505

 

$

18,000,596

 

$

18,368,806

 

$

17,853,216

 

Net interest margin

 

 

3.26

%

 

3.27

%

 

3.61

%

 

3.33

%

 

3.27

%

Net interest margin (FTE)

 

 

3.34

%

 

3.35

%

 

3.70

%

 

3.41

%

 

3.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

 

$

21,166,197

 

$

20,736,236

 

$

20,461,138

 

$

21,166,197

 

$

20,461,138

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

19,183

 

 

21,277

 

 

26,761

 

 

19,183

 

 

26,761

 

Ending tangible assets (non-GAAP)

 

$

20,221,803

 

$

19,789,748

 

$

19,509,166

 

$

20,221,803

 

$

19,509,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

 

$

2,556,327

 

$

2,388,801

 

$

2,372,737

 

$

2,556,327

 

$

2,372,737

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

Less: Ending amortizable intangibles

 

 

19,183

 

 

21,277

 

 

26,761

 

 

19,183

 

 

26,761

 

Less: Perpetual preferred stock

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

 

$

1,445,576

 

$

1,275,956

 

$

1,254,408

 

$

1,445,576

 

$

1,254,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,430,711

 

$

2,446,902

 

$

2,321,208

 

$

2,440,525

 

$

2,465,049

 

Less: Average goodwill

 

 

925,211

 

 

925,211

 

 

925,211

 

 

925,211

 

 

930,315

 

Less: Average amortizable intangibles

 

 

20,192

 

 

22,342

 

 

27,909

 

 

22,951

 

 

34,627

 

Less: Average perpetual preferred stock

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

 

$

1,318,952

 

$

1,332,993

 

$

1,201,732

 

$

1,326,007

 

$

1,333,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

 

$

53,940

 

$

51,050

 

$

67,557

 

$

189,950

 

$

222,642

 

Plus: Amortization of intangibles, tax effected

 

 

1,654

 

 

1,732

 

 

1,881

 

 

6,937

 

 

8,544

 

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

 

$

55,594

 

$

52,782

 

$

69,438

 

$

196,887

 

$

231,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

 

16.72

%

 

15.71

%

 

22.92

%

 

14.85

%

 

17.33

%

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

56,907

 

$

54,017

 

 

$

70,524

 

 

$

201,818

 

 

$

234,510

 

 

Plus: Strategic cost saving initiatives, net of tax

 

 

 

 

 

6,851

 

 

 

 

 

 

9,959

 

 

 

 

 

Plus: Merger-related costs, net of tax

 

 

884

 

 

 

1,965

 

 

 

 

 

 

2,850

 

 

 

 

 

Plus: Legal reserve, net of tax

 

 

2,859

 

 

 

 

 

 

 

 

 

6,809

 

 

 

 

 

Plus: FDIC special assessment, net of tax

 

 

2,656

 

 

 

 

 

 

 

 

 

2,656

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,351

 

 

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

 

 

2

 

 

 

(21,799

)

 

 

(1

)

 

 

(32,381

)

 

 

(2

)

 

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

 

 

1,484

 

 

 

21,883

 

 

 

 

 

 

23,367

 

 

 

 

 

Less: Gain on sale of DHFB, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,984

 

 

Adjusted operating earnings (non-GAAP)

 

 

61,820

 

 

 

62,749

 

 

 

70,525

 

 

 

233,106

 

 

 

230,879

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

 

2,967

 

 

 

2,967

 

 

 

11,868

 

 

 

11,868

 

 

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

 

$

58,853

 

 

$

59,782

 

 

$

67,558

 

 

$

221,238

 

 

$

219,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Efficiency Ratio (1)(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

107,929

 

 

$

108,508

 

 

$

99,790

 

 

$

430,371

 

 

$

403,802

 

 

Less: Amortization of intangible assets

 

 

2,094

 

 

 

2,193

 

 

 

2,381

 

 

 

8,781

 

 

 

10,815

 

 

Less: Strategic cost saving initiatives

 

 

 

 

 

8,672

 

 

 

 

 

 

12,607

 

 

 

 

 

Less: Merger-related costs

 

 

1,002

 

 

 

1,993

 

 

 

 

 

 

2,995

 

 

 

 

 

Less: Legal reserve

 

 

3,300

 

 

 

 

 

 

 

 

 

8,300

 

 

 

 

 

Less: FDIC special assessment

 

 

3,362

 

 

 

 

 

 

 

 

 

3,362

 

 

 

 

 

Less: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Adjusted operating noninterest expense (non-GAAP)

 

$

98,171

 

 

$

95,650

 

 

$

97,409

 

 

$

394,326

 

 

$

387,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

29,959

 

 

$

27,094

 

 

$

24,500

 

 

$

90,877

 

 

$

118,523

 

 

Less: Gain (loss) on sale of securities

 

 

3

 

 

 

(27,594

)

 

 

(1

)

 

 

(40,989

)

 

 

(3

)

 

Less: Gain on sale-leaseback transaction

 

 

1,879

 

 

 

27,700

 

 

 

 

 

 

29,579

 

 

 

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,082

 

 

Adjusted operating noninterest income (non-GAAP)

 

$

28,077

 

 

$

26,988

 

 

$

24,501

 

 

$

102,287

 

 

$

109,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

157,256

 

 

$

155,685

 

 

$

167,966

 

 

$

625,923

 

 

$

599,134

 

 

Adjusted operating noninterest income (non-GAAP)

 

 

28,077

 

 

 

26,988

 

 

 

24,501

 

 

 

102,287

 

 

 

109,444

 

 

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

 

$

185,333

 

 

$

182,673

 

 

$

192,467

 

 

$

728,210

 

 

$

708,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

58.82

 

%

 

60.61

 

%

 

52.98

 

%

 

61.32

 

%

 

57.46

 

%

Efficiency ratio (FTE) (1)

 

 

57.65

 

%

 

59.37

 

%

 

51.85

 

%

 

60.04

 

%

 

56.27

 

%

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

 

 

52.97

 

%

 

52.36

 

%

 

50.61

 

%

 

54.15

 

%

 

54.68

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

 

$

61,820

 

 

$

62,749

 

 

$

70,525

 

 

$

233,106

 

 

$

230,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

20,853,306

 

 

$

20,596,189

 

 

$

20,174,152

 

 

$

20,512,402

 

 

$

19,949,388

 

 

Return on average assets (ROA) (GAAP)

 

 

1.08

 

%

 

1.04

 

%

 

1.39

 

%

 

0.98

 

%

 

1.18

 

%

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

 

 

1.18

 

%

 

1.21

 

%

 

1.39

 

%

 

1.14

 

%

 

1.16

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,430,711

 

 

$

2,446,902

 

 

$

2,321,208

 

 

$

2,440,525

 

 

$

2,465,049

 

 

Return on average equity (ROE) (GAAP)

 

 

9.29

 

%

 

8.76

 

%

 

12.05

 

%

 

8.27

 

%

 

9.51

 

%

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

 

 

10.09

 

%

 

10.17

 

%

 

12.05

 

%

 

9.55

 

%

 

9.37

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

58,853

 

 

$

59,782

 

 

$

67,558

 

 

$

221,238

 

 

$

219,011

 

 

Plus: Amortization of intangibles, tax effected

 

 

1,654

 

 

 

1,732

 

 

 

1,881

 

 

 

6,937

 

 

 

8,544

 

 

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

 

$

60,507

 

 

$

61,514

 

 

$

69,439

 

 

$

228,175

 

 

$

227,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

 

$

1,318,952

 

 

$

1,332,993

 

 

$

1,201,732

 

 

$

1,326,007

 

 

$

1,333,751

 

 

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

 

 

18.20

 

%

 

18.31

 

%

 

22.92

 

%

 

17.21

 

%

 

17.06

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

56,907

 

 

$

54,017

 

 

$

70,524

 

 

$

201,818

 

 

$

234,510

 

 

Plus: Provision for credit losses

 

 

8,707

 

 

 

4,991

 

 

 

6,257

 

 

 

31,618

 

 

 

19,028

 

 

Plus: Income tax expense

 

 

9,960

 

 

 

11,519

 

 

 

11,777

 

 

 

38,083

 

 

 

45,444

 

 

Plus: Strategic cost saving initiatives

 

 

 

 

 

8,672

 

 

 

 

 

 

12,607

 

 

 

 

 

Plus: Merger-related costs

 

 

1,002

 

 

 

1,993

 

 

 

 

 

 

2,995

 

 

 

 

 

Plus: Legal reserve

 

 

3,300

 

 

 

 

 

 

 

 

 

8,300

 

 

 

 

 

Plus: FDIC special assessment, net of tax

 

 

3,362

 

 

 

 

 

 

 

 

 

3,362

 

 

 

 

 

Plus: Strategic branch closing and facility consolidation costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,508

 

 

Less: Gain (loss) on sale of securities

 

 

3

 

 

 

(27,594

)

 

 

(1

)

 

 

(40,989

)

 

 

(3

)

 

Less: Gain on sale-leaseback transaction

 

 

1,879

 

 

 

27,700

 

 

 

 

 

 

29,579

 

 

 

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,082

 

 

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

 

$

81,356

 

 

$

81,086

 

 

$

88,559

 

 

$

310,193

 

 

$

295,411

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

 

2,967

 

 

 

2,967

 

 

 

11,868

 

 

 

11,868

 

 

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

 

$

78,389

 

 

$

78,119

 

 

$

85,592

 

 

$

298,325

 

 

$

283,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

75,016,858

 

 

 

74,999,128

 

 

 

74,713,972

 

 

 

74,962,363

 

 

 

74,953,398

 

 

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

 

$

1.04

 

 

$

1.04

 

 

$

1.15

 

 

$

3.98

 

 

$

3.78

 

 

 

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

 

 

 

As of & For Three Months Ended

 

As of & For Year Ended

 

 

 

12/31/23

 

09/30/23

 

12/31/22

 

12/31/23

 

12/31/22

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinance Volume

 

$

3,972

 

$

2,239

 

$

2,312

 

$

13,740

 

$

55,725

 

Purchase Volume

 

 

27,871

 

 

35,815

 

 

29,262

 

 

128,046

 

 

238,310

 

Total Mortgage loan originations held for sale

 

$

31,843

 

$

38,054

 

$

31,574

 

$

141,786

 

$

294,035

 

% of originations held for sale that are refinances

 

 

12.5

%

 

5.9

%

 

7.3

%

 

9.7

%

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under management

 

$

5,014,208

 

$

4,675,523

 

$

4,271,728

 

$

5,014,208

 

$

4,271,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period full-time employees

 

 

1,804

 

 

1,788

 

 

1,877

 

 

1,804

 

 

1,877

 

Number of full-service branches

 

 

109

 

 

109

 

 

114

 

 

109

 

 

114

 

Number of automatic transaction machines ("ATMs")

 

 

123

 

 

123

 

 

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, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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 December 31, 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, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closure initiatives and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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)

 

 

December 31,

 

September 30,

 

December 31,

 

 

2023

 

2023

 

2022

 

ASSETS

(unaudited)

 

(unaudited)

 

(audited)

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

196,754

 

 

$

233,526

 

 

$

216,384

 

 

Interest-bearing deposits in other banks

 

167,601

 

 

 

159,718

 

 

 

102,107

 

 

Federal funds sold

 

13,776

 

 

 

5,701

 

 

 

1,457

 

 

Total cash and cash equivalents

 

378,131

 

 

 

398,945

 

 

 

319,948

 

 

Securities available for sale, at fair value

 

2,231,261

 

 

 

2,084,928

 

 

 

2,741,816

 

 

Securities held to maturity, at carrying value

 

837,378

 

 

 

843,269

 

 

 

847,732

 

 

Restricted stock, at cost

 

115,472

 

 

 

104,785

 

 

 

120,213

 

 

Loans held for sale

 

6,710

 

 

 

6,608

 

 

 

3,936

 

 

Loans held for investment, net of deferred fees and costs

 

15,635,043

 

 

 

15,283,620

 

 

 

14,449,142

 

 

Less: allowance for loan and lease losses

 

132,182

 

 

 

125,627

 

 

 

110,768

 

 

Total loans held for investment, net

 

15,502,861

 

 

 

15,157,993

 

 

 

14,338,374

 

 

Premises and equipment, net

 

90,959

 

 

 

94,510

 

 

 

118,243

 

 

Goodwill

 

925,211

 

 

 

925,211

 

 

 

925,211

 

 

Amortizable intangibles, net

 

19,183

 

 

 

21,277

 

 

 

26,761

 

 

Bank owned life insurance

 

452,565

 

 

 

449,452

 

 

 

440,656

 

 

Other assets

 

606,466

 

 

 

649,258

 

 

 

578,248

 

 

Total assets

$

21,166,197

 

 

$

20,736,236

 

 

$

20,461,138

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

3,963,181

 

 

$

4,144,949

 

 

$

4,883,239

 

 

Interest-bearing deposits

 

12,854,948

 

 

 

12,641,556

 

 

 

11,048,438

 

 

Total deposits

 

16,818,129

 

 

 

16,786,505

 

 

 

15,931,677

 

 

Securities sold under agreements to repurchase

 

110,833

 

 

 

134,936

 

 

 

142,837

 

 

Other short-term borrowings

 

810,000

 

 

 

495,000

 

 

 

1,176,000

 

 

Long-term borrowings

 

391,025

 

 

 

390,733

 

 

 

389,863

 

 

Other liabilities

 

479,883

 

 

 

540,261

 

 

 

448,024

 

 

Total liabilities

 

18,609,870

 

 

 

18,347,435

 

 

 

18,088,401

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

 

Common stock, $1.33 par value

 

99,147

 

 

 

99,120

 

 

 

98,873

 

 

Additional paid-in capital

 

1,782,286

 

 

 

1,779,281

 

 

 

1,772,440

 

 

Retained earnings

 

1,018,070

 

 

 

988,133

 

 

 

919,537

 

 

Accumulated other comprehensive loss

 

(343,349

)

 

 

(477,906

)

 

 

(418,286

)

 

Total stockholders' equity

 

2,556,327

 

 

 

2,388,801

 

 

 

2,372,737

 

 

Total liabilities and stockholders' equity

$

21,166,197

 

 

$

20,736,236

 

 

$

20,461,138

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

75,023,327

 

 

 

74,997,132

 

 

 

74,712,622

 

 

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

(Dollars in thousands, except share data)

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2023

 

2023

 

2022

 

2023

 

2022

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

230,378

 

 

$

221,380

 

 

$

173,475

 

 

$

846,923

 

 

$

555,614

 

Interest on deposits in other banks

 

2,255

 

 

 

1,309

 

 

 

1,383

 

 

 

6,071

 

 

 

2,612

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

18,703

 

 

 

16,055

 

 

 

16,196

 

 

 

67,075

 

 

 

59,306

 

Nontaxable

 

8,161

 

 

 

8,415

 

 

 

11,014

 

 

 

34,381

 

 

 

42,903

 

Total interest and dividend income

 

259,497

 

 

 

247,159

 

 

 

202,068

 

 

 

954,450

 

 

 

660,435

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

95,998

 

 

 

83,590

 

 

 

30,236

 

 

 

296,689

 

 

 

56,201

 

Interest on short-term borrowings

 

5,043

 

 

 

6,499

 

 

 

3,588

 

 

 

27,148

 

 

 

5,393

 

Interest on long-term borrowings

 

4,912

 

 

 

5,129

 

 

 

4,396

 

 

 

19,600

 

 

 

14,580

 

Total interest expense

 

105,953

 

 

 

95,218

 

 

 

38,220

 

 

 

343,437

 

 

 

76,174

 

Net interest income

 

153,544

 

 

 

151,941

 

 

 

163,848

 

 

 

611,013

 

 

 

584,261

 

Provision for credit losses

 

8,707

 

 

 

4,991

 

 

 

6,257

 

 

 

31,618

 

 

 

19,028

 

Net interest income after provision for credit losses

 

144,837

 

 

 

146,950

 

 

 

157,591

 

 

 

579,395

 

 

 

565,233

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

8,662

 

 

 

8,557

 

 

 

7,631

 

 

 

33,240

 

 

 

30,052

 

Other service charges, commissions and fees

 

1,789

 

 

 

2,632

 

 

 

1,631

 

 

 

7,860

 

 

 

6,765

 

Interchange fees

 

2,581

 

 

 

2,314

 

 

 

2,571

 

 

 

9,678

 

 

 

9,110

 

Fiduciary and asset management fees

 

4,526

 

 

 

4,549

 

 

 

4,085

 

 

 

17,695

 

 

 

22,414

 

Mortgage banking income

 

774

 

 

 

666

 

 

 

379

 

 

 

2,743

 

 

 

7,085

 

Gain (loss) on sale of securities

 

3

 

 

(27,594

)

 

 

(1

)

 

 

(40,989

)

 

 

(3

)

Bank owned life insurance income

 

3,088

 

 

 

2,973

 

 

 

2,649

 

 

 

11,759

 

 

 

11,507

 

Loan-related interest rate swap fees

 

3,588

 

 

 

2,695

 

 

 

3,664

 

 

 

10,037

 

 

 

12,174

 

Other operating income

 

4,948

 

 

 

30,302

 

 

 

1,891

 

 

 

38,854

 

 

 

19,419

 

Total noninterest income

 

29,959

 

 

 

27,094

 

 

 

24,500

 

 

 

90,877

 

 

 

118,523

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

56,686

 

 

 

57,449

 

 

 

58,723

 

 

 

236,682

 

 

 

228,926

 

Occupancy expenses

 

6,644

 

 

 

6,053

 

 

 

6,328

 

 

 

25,146

 

 

 

26,013

 

Furniture and equipment expenses

 

3,517

 

 

 

3,449

 

 

 

3,978

 

 

 

14,282

 

 

 

14,838

 

Technology and data processing

 

7,853

 

 

 

7,923

 

 

 

9,442

 

 

 

32,484

 

 

 

33,372

 

Professional services

 

4,346

 

 

 

3,291