Atlantic Union Bankshares Reports Third Quarter Results

RICHMOND, Va., Oct. 25, 2021 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $71.6 million and basic and diluted earnings per common share of $0.94 for the third quarter ended September 30, 2021. Pre-tax pre-provision adjusted operating earnings(1) were $72.1 million for the third quarter ended September 30, 2021.

Net income available to common shareholders was $207.2 million and basic and diluted earnings per common share were $2.66 for the nine months ended September 30, 2021. Adjusted operating earnings available to common shareholders(1) were $218.8 million, diluted operating earnings per common share(1) were $2.80, and pre-tax pre-provision adjusted operating earnings(1) were $217.7 million for the nine months ended September 30, 2021.

“Atlantic Union delivered solid financial results in the third quarter as we continue to see the headwinds from COVID-19 abate,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Loan balances exclusive of PPP declined during the third quarter, which we believe was a combination of historically high levels of commercial real estate pay-offs and suppressed commercial line utilization due to excess liquidity. We have seen a strong start to loan growth in October, our credit quality remains pristine, and our capital and liquidity positions continue to be strong.”

“As we finish off 2021, we expect economic activity to pick up over the next several quarters and credit losses will remain historically low due to the positive economic outlook. 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.”

Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”)

The Company participated in the SBA PPP under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was intended to provide economic relief to small businesses that had been adversely impacted by the COVID-19 global pandemic (“COVID-19”). The PPP loan funding program expired on May 31, 2021. The Company had PPP loans with a recorded investment of $481.7 million and unamortized deferred fees of $15.1 million as of September 30, 2021. The loans carry a 1% interest rate.

In addition to an insignificant amount of PPP loan pay offs, the Company has processed $1.7 billion(*) of loan forgiveness on 13,000 PPP loans(*) since the inception of the program through September 30, 2021. In the third quarter of 2021, the Company processed $391.8 million (*) on 3,000 PPP loans for forgiveness.

Share Repurchase Program

On May 4, 2021, the Company’s Board of Directors authorized a share repurchase program (or the “Repurchase Program”) to purchase up to $125 million worth of the Company’s common stock in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Exchange Act that was due to expire on June 30, 2022. As part of the Repurchase Program, 1.1 million shares (or $42.3 million) were repurchased during the quarter ended June 30, 2021, and 2.3 million shares (or $82.7 million) were repurchased during the quarter ended September 30, 2021, fully utilizing the $125 million authorized under the Repurchase Program.
(*) Number and amount of PPP loans processed for forgiveness are rounded and approximate values

NET INTEREST INCOME

For the third quarter of 2021, net interest income was $137.5 million, a decrease from $140.5 million reported in the second quarter of 2021. Net interest income (FTE)(1) was $140.7 million in the third quarter of 2021, a decrease of $3.0 million from the second quarter of 2021. The decreases in net interest income and net interest income (FTE) were primarily driven by a decrease in PPP loan accretion included in interest income to $9.4 million in the third quarter of 2021 from $11.5 million in the second quarter of 2021. The third quarter net interest margin decreased 10 basis points to 3.05% from 3.15% in the previous quarter, while the net interest margin (FTE)(1) decreased 11 basis points to 3.12% from 3.23% during the same period as earning asset yields declined by 15 basis points compared to the second quarter due to the impact of the low interest rate environment on core loan and investment securities yields and the increase in low yielding cash balances due to excess liquidity, partially offset by a 4 basis point decline in the cost of funds compared to the second quarter driven by lower deposit costs.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $4.0 million for the quarter ended September 30, 2021. The first, second, and third quarters of 2021 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

                         
          Deposit            
    Loan   Accretion   Borrowings      
    Accretion   (Amortization)   Amortization   Total
For the quarter ended March 31, 2021   $ 4,287   $ 20     $ (198 )   $ 4,109
For the quarter ended June 30, 2021     4,132     12       (202 )     3,942
For the quarter ended September 30, 2021     4,176     (8 )     (203 )     3,965
For the remaining three months of 2021 (estimated)     1,627     (11 )     (203 )     1,413
For the years ending (estimated):                        
2022     5,757     (43 )     (829 )     4,885
2023     4,281     (32 )     (852 )     3,397
2024     3,501     (4 )     (877 )     2,620
2025     2,724     (1 )     (900 )     1,823
2026     2,176           (926 )     1,250
Thereafter     9,433           (8,946 )     487
Total remaining acquisition accounting fair value adjustments at September 30, 2021   $ 29,499   $ (91 )   $ (13,533 )   $ 15,875

ASSET QUALITY

Overview
During the third quarter of 2021, nonperforming assets (“NPAs”) as a percentage of loans was consistent with the prior quarter and remained low at 0.28% at September 30, 2021. Accruing past due loan levels as a percentage of total loans held for investment at September 30, 2021 increased 12 basis points as compared to June 30, 2021 and were 5 basis points lower than accruing past due loan levels at September 30, 2020. The increase in past due loan levels from June 30, 2021 was primarily within the 30-59 days past due category and due to increases in past due credit relationships within the commercial & industrial portfolio. Net charge-offs of $113,000 were insignificant and consistent with the second quarter of 2021. The allowance for credit losses (“ACL”) totaled $109.3 million at September 30, 2021, a $19.0 million decrease from the prior quarter due to lower expected losses than previously estimated and improvements in the macroeconomic outlooks.

Nonperforming Assets
At September 30, 2021, NPAs totaled $37.2 million, a decrease of $927,000 from June 30, 2021. NPAs as a percentage of total outstanding loans at September 30, 2021 were 0.28%, consistent with June 30, 2021. Excluding the impact of the PPP loans(1), NPAs as a percentage of total adjusted loans held for investment were 0.29% at September 30, 2021, a decrease of 1 basis point from 0.30% at June 30, 2021.

The following table shows a summary of nonperforming asset balances at the quarter ended (dollars in thousands):

                               
       September 30,       June 30,       March 31,       December 31,       September 30, 
    2021   2021   2021   2020   2020
Nonaccrual loans   $ 35,472   $ 36,399   $ 41,866   $ 42,448   $ 39,023
Foreclosed properties     1,696     1,696     2,344     2,773     4,159
Total nonperforming assets   $ 37,168   $ 38,095   $ 44,210   $ 45,221   $ 43,182

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

                               
       September 30,       June 30,       March 31,       December 31,       September 30, 
    2021     2021     2021     2020     2020  
Beginning Balance   $ 36,399     $ 41,866     $ 42,448     $ 39,023     $ 39,624  
Net customer payments     (4,719 )     (9,307 )     (4,133 )     (4,640 )     (2,803 )
Additions     4,177       4,162       3,821       8,211       2,790  
Charge-offs     (385 )     (183 )     (270 )     (146 )     (588 )
Loans returning to accruing status           (153 )                  
Transfers to foreclosed property           14                    
Ending Balance   $ 35,472     $ 36,399     $ 41,866     $ 42,448     $ 39,023  

The following table shows the activity in foreclosed properties for the quarter ended (dollars in thousands):

                               
       September 30,       June 30,       March 31,       December 31,       September 30, 
    2021   2021     2021     2020     2020  
Beginning Balance   $ 1,696   $ 2,344     $ 2,773     $ 4,159     $ 4,397  
Additions of foreclosed property         14                    
Valuation adjustments                     (35 )      
Proceeds from sales         (572 )     (419 )     (1,357 )     (254 )
Gains (losses) from sales         (90 )     (10 )     6       16  
Ending Balance   $ 1,696   $ 1,696     $ 2,344     $ 2,773     $ 4,159  

Past Due Loans
Past due loans still accruing interest totaled $38.8 million or 0.30% of total loans held for investment at September 30, 2021, compared to $25.1 million or 0.18% of total loans held for investment at June 30, 2021, and $50.9 million or 0.35% of total loans held for investment at September 30, 2020. The increase in past due loans in the third quarter of 2021 as compared to the second quarter was primarily within the 30-59 days past due category and due to increases in past due credit relationships within the commercial & industrial portfolio. Of the total past due loans still accruing interest, $11.0 million or 0.08% of total loans held for investment were loans past due 90 days or more at September 30, 2021, compared to $8.7 million or 0.06% of total loans held for investment at June 30, 2021, and $15.6 million or 0.11% of total loans held for investment at September 30, 2020.

Net Charge-offs
Including and excluding the impact of the PPP loans (1), net charge-offs totaled $113,000 or less than 0.01% of total average loans (annualized) for the quarter ended September 30, 2021, compared to $69,000 or less than 0.01% for the second quarter of 2021, and $1.4 million or 0.04% for the third quarter of 2020.

Provision for Credit Losses
For the quarter ended September 30, 2021, the Company recorded a negative provision for credit losses of $18.8 million, compared to a negative provision for credit losses of $27.4 million in the previous quarter, and which decreased $25.4 million compared to the provision for credit losses of $6.6 million recorded during the same quarter in 2020. The provision for credit losses for the third quarter of 2021 reflected a negative provision of $16.3 million for loan losses and a negative provision of $2.5 million for unfunded commitments. The decrease in the provision for credit losses as compared to the same quarter in 2020 was driven by the benign credit impacts since the pandemic began, the significant recovery in the economy since last year, as well as the improvement in the economic forecast utilized in estimating the ACL as of September 30, 2021.

Allowance for Credit Losses
At September 30, 2021, the ACL was $109.3 million and included an allowance for loan and lease losses (“ALLL”) of $101.8 million and a reserve for unfunded commitments (“RUC”) of $7.5 million. The ACL at September 30, 2021 decreased $19.0 million from June 30, 2021, due to lower expected losses than previously estimated as a result of an improved economic forecast outlook and improvement in credit trends during the third quarter of 2021. The ACL as a percentage of total loans was 0.83% at September 30, 2021 and 0.94% at June 30, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ACL as a percentage of total adjusted loans at September 30, 2021 decreased 14 basis points to 0.86% from the prior quarter.

At September 30, 2021, the ALLL decreased $16.5 million and the RUC decreased $2.5 million from June 30, 2021. The ALLL as a percentage of the total loan portfolio was 0.77% at September 30, 2021 and 0.86% at June 30, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ALLL as a percentage of total adjusted loans decreased 12 basis points from the prior quarter to 0.80% at September 30, 2021.

NONINTEREST INCOME

Noninterest income increased $1.5 million to $30.0 million for the quarter ended September 30, 2021 from $28.5 million in the prior quarter, primarily driven by an increase in the unrealized gain on equity method investments of approximately $1.1 million that is included in other operating income, a $591,000 increase in deposit and other service charges, and increases in mortgage banking income of $199,000 and asset management fees of $210,000. These quarterly increases were partially offset by declines in other non-interest income categories including a $500,000 decrease in income on bank owned life insurance, as life insurance proceeds that were collected during the prior quarter were not matched during the third quarter of 2021.

NONINTEREST EXPENSE

Noninterest expense increased $3.3 million to $95.3 million for the quarter ended September 30, 2021 from $92.0 million in the prior quarter. This increase was mainly due to increases in salaries and benefits of $2.8 million, driven by performance based variable incentive compensation and profit-sharing expenses of $655,000, higher compensation costs of approximately $1.0 million as a result of branch banking pay structure changes made during the third quarter of 2021, and employee related recruiting, severance, and other cost increases of approximately $900,000. In addition, other expenses increased by $1.6 million for the quarter ended September 30, 2021 primarily due to OREO and related credit expenses increasing by $1.0 million, reflecting the impact of gains on the sale of closed branches recorded as a reduction to other expenses in the prior quarter. Noninterest expense increases were partially offset by declines in professional services fees of $616,000. Noninterest expense for the third quarter of 2021 also included approximately $200,000 in expenses related to PPP loan forgiveness processing, compared to approximately $250,000 in expenses for the quarter ended June 30, 2021.

INCOME TAXES

The effective tax rate for the three months ended September 30, 2021 was 18.0%, compared to 18.3% for the three months ended June 30, 2021. The decrease in the effective tax rate is primarily due to changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At September 30, 2021, total assets were $19.9 billion, a decrease of $53.7 million or approximately 1.1% (annualized) from June 30, 2021, and an increase of $5.0 million from September 30, 2020. Total assets have remained relatively consistent to these prior periods with loans decreasing due to PPP forgiveness, cash and cash equivalents increasing due to excess liquidity, and net growth in the investment securities portfolio.

At September 30, 2021, loans held for investment (net of deferred fees and costs) totaled $13.1 billion, including $466.6 million in PPP loans, a decrease of $558.3 million or 16.2% (annualized) from June 30, 2021, and average loans at September 30, 2021 decreased $520.3 million or 14.8% (annualized) from the prior quarter. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at September 30, 2021 decreased $165.6 million or 5.1% (annualized) from June 30, 2021, and average loans decreased $19.9 million or 0.6% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $1.2 billion or 8.6% from September 30, 2020, while quarterly average loans decreased $907.0 million or 6.3% from the same period in the prior year. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at September 30, 2021 decreased $109.7 million or 0.9% from the same period in the prior year, and quarterly average loans during the third quarter of 2021 increased $44.0 million or 0.3% from the same period in the prior year. In addition to an insignificant amount of PPP loan payoffs, the Company processed $391.8 million(*) of loan forgiveness on 3,000 PPP loans(*) during the third quarter of 2021, compared to $705.0 million(*) of loan forgiveness on 5,000 PPP loans(*) during the second quarter of 2021.

At September 30, 2021, total deposits were $16.6 billion, a decrease of $37.1 million or approximately 0.9% (annualized) from June 30, 2021, and average deposits increased $217.6 million or 5.2% (annualized) from the prior quarter. Deposits at September 30, 2021 increased $1.0 billion or 6.7% from September 30, 2020, and quarterly average deposits at September 30, 2021 increased $1.1 billion or 7.3% from the same period in the prior year. The increases in deposits from the prior year were primarily due to additional liquidity of bank customers due to higher levels of government assistance programs since the start of COVID.

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

               
       September 30,       June 30,       September 30,   
    2021   2021   2020  
Common equity Tier 1 capital ratio (2)   10.37 % 10.56 % 10.05 %
Tier 1 capital ratio (2)   11.49 % 11.68 % 11.18 %
Total capital ratio (2)   13.78 % 14.05 % 13.93 %
Leverage ratio (Tier 1 capital to average assets) (2)   8.97 % 9.20 % 8.82 %
Common equity to total assets   12.68 % 12.91 % 12.52 %
Tangible common equity to tangible assets (1)   8.16 % 8.40 % 7.91 %

_________________________
During the third quarter of 2021, the Company declared and paid cash dividends of $0.28 per common share, consistent with the second quarter of 2021, and an increase of $0.03, or approximately 12.0%, compared to the third quarter of 2020. During the third quarter of 2021, the Company also 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).

On May 4, 2021, the Company’s Board of Directors authorized the Repurchase Program to purchase up to $125 million worth of the Company’s common stock in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Exchange Act. The Repurchase Program was due to expire on June 30, 2022 and replaced the prior repurchase program that was due to expire on June 30, 2021. As part of the Repurchase Program, 1.1 million shares (or $42.3 million) were repurchased during the quarter ended June 30, 2021, and 2.3 million shares (or $82.7 million) were repurchased during the quarter ended September 30, 2021, fully utilizing the repurchase authorization under the Repurchase Program.

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

(2) All ratios at September 30, 2021 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

(*) Number and amount of PPP loans processed for forgiveness are rounded and approximate values

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 130 branches and approximately 150 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; Dixon, Hubard, Feinour & Brown, Inc., which provides investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for analysts on Monday, October 25, 2021 at 9:00 a.m. Eastern Time during which management will review the third quarter 2021 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (866) 220-4170; international callers wishing to participate may do so by dialing (864) 663-5235. The conference ID number is 1236699. Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/zze37wck.

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

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the periods ended September 30, 2021, 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) section of the Key Financial Results.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including without limitation, statements made in Mr. Asbury’s quotes are statements that include, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Such forward-looking statements are based on various 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 accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, or achievements 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:

  • changes in interest rates;
  • general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth, including as a result of COVID-19;
  • the quality or composition of the loan or investment portfolios and changes therein;
  • demand for loan products and financial services in the Company’s market area;
  • the Company’s ability to manage its growth or implement its growth strategy;
  • the effectiveness of expense reduction plans;
  • the introduction of new lines of business or new products and services;
  • the Company’s ability to recruit and retain key employees;
  • the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;
  • real estate values in the Bank’s lending area;
  • an insufficient ACL;
  • changes in accounting principles;
  • the Company’s liquidity and capital positions;
  • concentrations of loans secured by real estate, particularly commercial real estate;
  • the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
  • the Company’s ability to compete in the market for financial services and increased competition from fintech companies;
  • technological risks and developments, and cyber threats, attacks, or events;
  • the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
  • the effect of steps the Company takes in response to COVID-19, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;
  • the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates,
  • performance by the Company’s counterparties or vendors;
  • deposit flows;
  • the availability of financing and the terms thereof;
  • the level of prepayments on loans and mortgage-backed securities;
  • legislative or regulatory changes and requirements, including the impact of the CARES Act, as amended by the CAA, and other legislative and regulatory reactions to COVID-19;
  • potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to COVID-19, including, among other things, the CARES Act, as amended by the CAA;
  • the effects of changes in federal, state or local tax laws and regulations;
  • monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
  • changes to applicable accounting principles and guidelines; and
  • other factors, many of which are beyond the control of the Company.

Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and related disclosures in other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, 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 Nine Months Ended  
       09/30/21      06/30/21        09/30/20     09/30/21     09/30/20  
Results of Operations   (unaudited)   (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Interest and dividend income   $ 146,379     $ 150,852     $ 157,414     $ 444,904     $ 491,607  
Interest expense     8,891       10,304       20,033       31,970       81,913  
Net interest income     137,488       140,548       137,381       412,934       409,694  
Provision for credit losses     (18,850 )     (27,414 )     6,558       (59,888 )     100,954  
Net interest income after provision for credit losses     156,338       167,962       130,823       472,822       308,740  
Noninterest income     29,938       28,466       34,407       89,388       99,245  
Noninterest expenses     95,343       91,971       93,222       299,251       291,681  
Income before income taxes     90,933       104,457       72,008       262,959       116,304  
Income tax expense     16,368       19,073       11,008       46,821       17,506  
Net income     74,565       85,384       61,000       216,138       98,798  
Dividends on preferred stock     2,967       2,967       2,691       8,901       2,691  
Net income available to common shareholders   $ 71,598     $ 82,417     $ 58,309     $ 207,237     $ 96,107  
                                       
Interest earned on earning assets (FTE) (1)   $ 149,543     $ 153,996     $ 160,315     $ 454,265     $ 500,069  
Net interest income (FTE) (1)     140,652       143,692       140,282       422,295       418,156  
Total revenue (FTE) (1)     170,590       172,158       174,689       511,683       517,401  
Pre-tax pre-provision adjusted operating earnings (8)     72,074       77,043       78,548       217,679       217,040  
                                       
Key Ratios                                      
Earnings per common share, diluted   $ 0.94     $ 1.05     $ 0.74     $ 2.66     $ 1.22  
Return on average assets (ROA)     1.47 %     1.72 %     1.23 %     1.45 %     0.70 %
Return on average equity (ROE)     10.88 %     12.46 %     9.16 %     10.59 %     5.19 %
Return on average tangible common equity (ROTCE) (2) (3)     18.79 %     21.44 %     16.49 %     18.31 %     9.64 %
Efficiency ratio     56.95 %     54.42 %     54.27 %     59.57 %     57.31 %
Net interest margin     3.05 %     3.15 %     3.08 %     3.10 %     3.26 %
Net interest margin (FTE) (1)     3.12 %     3.23 %     3.14 %     3.17 %     3.32 %
Yields on earning assets (FTE) (1)     3.31 %     3.46 %     3.59 %     3.41 %     3.97 %
Cost of interest-bearing liabilities     0.30 %     0.35 %     0.64 %     0.36 %     0.90 %
Cost of deposits     0.14 %     0.18 %     0.39 %     0.18 %     0.58 %
Cost of funds     0.19 %     0.23 %     0.45 %     0.24 %     0.65 %
                                       
Operating Measures (4)                                      
Adjusted operating earnings   $ 74,558     $ 85,384     $ 60,986     $ 227,678     $ 98,626  
Adjusted operating earnings available to common shareholders     71,591       82,417       58,295       218,777       95,935  
Adjusted operating earnings per common share, diluted   $ 0.94     $ 1.05     $ 0.74     $ 2.80     $ 1.22  
Adjusted operating ROA     1.47 %     1.72 %     1.23 %     1.53 %     0.70 %
Adjusted operating ROE     10.88 %     12.46 %     9.16 %     11.16 %     5.18 %
Adjusted operating ROTCE (2) (3)     18.79 %     21.44 %     16.49 %     19.29 %     9.63 %
Adjusted operating efficiency ratio (FTE) (1)(7)     53.91 %     51.35 %     51.05 %     53.53 %     53.01 %
                                       
Per Share Data                                      
Earnings per common share, basic   $ 0.94     $ 1.05     $ 0.74     $ 2.66     $ 1.22  
Earnings per common share, diluted     0.94       1.05       0.74       2.66       1.22  
Cash dividends paid per common share     0.28       0.28       0.25       0.81       0.75  
Market value per share     36.85       36.22       21.37       36.85       21.37  
Book value per common share     33.60       33.30       31.86       33.60       31.86  
Tangible book value per common share (2)     20.55       20.59       19.13       20.55       19.13  
Price to earnings ratio, diluted     9.88       8.60       7.26       10.36       13.11  
Price to book value per common share ratio     1.10       1.09       0.67       1.10       0.67  
Price to tangible book value per common share ratio (2)     1.79       1.76       1.12       1.79       1.12  
Weighted average common shares outstanding, basic     76,309,355       78,819,697       78,714,353       77,988,151       78,904,792  
Weighted average common shares outstanding, diluted     76,322,736       78,848,724       78,725,346       78,007,543       78,921,108  
Common shares outstanding at end of period     75,645,031       77,928,948       78,718,850       75,645,031       78,718,850  
                                         


                                         
    As of & For Three Months Ended     As of & For Nine Months Ended  
       09/30/21        06/30/21        09/30/20     09/30/21     09/30/20  
Capital Ratios   (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Common equity Tier 1 capital ratio (5)     10.37 %     10.56 %     10.05 %     10.37 %     10.05 %
Tier 1 capital ratio (5)     11.49 %     11.68 %     11.18 %     11.49 %     11.18 %
Total capital ratio (5)     13.78 %     14.05 %     13.93 %     13.78 %     13.93 %
Leverage ratio (Tier 1 capital to average assets) (5)     8.97 %     9.20 %     8.82 %     8.97 %     8.82 %
Common equity to total assets     12.68 %     12.91 %     12.52 %     12.68 %     12.52 %
Tangible common equity to tangible assets (2)     8.16 %     8.40 %     7.91 %     8.16 %     7.91 %
                                         
Financial Condition                                        
Assets   $ 19,935,657     $ 19,989,356     $ 19,930,650     $ 19,935,657     $ 19,930,650  
Loans held for investment (net of deferred fees and costs)     13,139,586       13,697,929       14,383,215       13,139,586       14,383,215  
Securities     3,807,723       3,491,669       3,102,217       3,807,723       3,102,217  
Earning Assets     17,795,784       17,824,283       17,885,975       17,795,784       17,885,975  
Goodwill     935,560       935,560       935,560       935,560       935,560  
Amortizable intangibles, net     46,537       49,917       61,068       46,537       61,068  
Deposits     16,622,160       16,659,219       15,576,098       16,622,160       15,576,098  
Borrowings     385,765       380,079       1,314,322       385,765       1,314,322  
Stockholders' equity     2,694,439       2,747,597       2,660,885       2,694,439       2,660,885  
Tangible common equity (2)     1,545,985       1,595,763       1,497,900       1,545,985       1,497,900  
                                         
Loans held for investment, net of deferred fees and costs                                        
Construction and land development   $ 877,351     $ 838,722     $ 1,207,190     $ 877,351     $ 1,207,190  
Commercial real estate - owner occupied     2,027,299       2,069,658       2,107,333       2,027,299       2,107,333  
Commercial real estate - non-owner occupied     3,730,720       3,712,607       3,497,929       3,730,720       3,497,929  
Multifamily real estate     776,287       860,081       731,582       776,287       731,582  
Commercial & Industrial     2,580,190       2,990,622       3,536,249       2,580,190       3,536,249  
Residential 1-4 Family - Commercial     624,347       637,485       696,944       624,347       696,944  
Residential 1-4 Family - Consumer     822,971       823,355       830,144       822,971       830,144  
Residential 1-4 Family - Revolving     557,803       559,014       618,320       557,803       618,320  
Auto     425,436       411,073       387,417       425,436       387,417  
Consumer     182,039       195,036       276,023       182,039       276,023  
Other Commercial     535,143       600,276       494,084       535,143       494,084  
Total loans held for investment   $ 13,139,586     $ 13,697,929     $ 14,383,215     $ 13,139,586     $ 14,383,215  
                                         
Deposits                                        
NOW accounts   $ 4,016,505     $ 3,777,540     $ 3,460,480     $ 4,016,505     $ 3,460,480  
Money market accounts     4,152,986       4,450,724       4,269,696       4,152,986       4,269,696  
Savings accounts     1,079,735       1,032,171       861,685       1,079,735       861,685  
Time deposits of $250,000 and over     546,199       566,180       633,252       546,199       633,252  
Other time deposits     1,497,897       1,610,032       1,930,320       1,497,897       1,930,320  
Time deposits     2,044,096       2,176,212       2,563,572       2,044,096       2,563,572  
Total interest-bearing deposits   $ 11,293,322     $ 11,436,647     $ 11,155,433     $ 11,293,322     $ 11,155,433  
Demand deposits     5,328,838       5,222,572       4,420,665       5,328,838       4,420,665  
Total deposits   $ 16,622,160     $ 16,659,219     $ 15,576,098     $ 16,622,160     $ 15,576,098  
                                         
Averages                                        
Assets   $ 20,056,570     $ 19,922,978     $ 19,785,167     $ 19,890,155     $ 18,837,580  
Loans held for investment (net of deferred fees and costs)     13,451,674       13,971,939       14,358,666       13,827,002       13,639,401  
Loans held for sale     30,035       36,790       45,201       43,162       50,902  
Securities     3,679,977       3,420,329       2,891,210       3,438,285       2,721,161  
Earning assets     17,910,389       17,868,938       17,748,152       17,824,607       16,809,423  
Deposits     16,718,144       16,500,541       15,580,469       16,433,470       14,632,709  
Time deposits     2,109,131       2,270,217       2,579,991       2,288,530       2,667,267  
Interest-bearing deposits     11,512,825       11,446,768       11,260,244       11,483,654       10,875,752  
Borrowings     395,984       399,855       1,183,839       456,184       1,324,457  
Interest-bearing liabilities     11,908,809       11,846,623       12,444,083       11,939,838       12,200,209  
Stockholders' equity     2,718,032       2,747,864       2,648,777       2,728,605       2,541,856  
Tangible common equity (2)     1,567,937       1,594,311       1,483,848       1,574,961       1,469,918  
                                         


                                       
    As of & For Three Months Ended     As of & For Nine Months Ended  
       09/30/21        06/30/21      09/30/20     09/30/21     09/30/20  
Asset Quality   (unaudited)     (unaudited)   (unaudited)     (unaudited)     (unaudited)  
Allowance for Credit Losses (ACL)                                      
Beginning balance, Allowance for loan and lease losses (ALLL)   $ 118,261     $ 142,911     $ 169,977     $ 160,540     $ 42,294  
Add: Day 1 impact from adoption of CECL                             47,484  
Add: Recoveries     2,153       1,876       1,566       6,498       5,137  
Less: Charge-offs     2,266       1,945       2,978       7,852       14,806  
Add: Provision for loan losses     (16,350 )     (24,581 )     5,557       (57,388 )     94,013  
Ending balance, ALLL   $ 101,798     $ 118,261     $ 174,122     $ 101,798     $ 174,122  
                                       
Beginning balance, Reserve for unfunded commitment (RUC)   $ 10,000     $ 12,833     $ 11,000     $ 10,000     $ 900  
Add: Day 1 impact from adoption of CECL                             4,160  
Add: Provision for unfunded commitments     (2,500 )     (2,833 )     1,000       (2,500 )     6,940  
Ending balance, RUC   $ 7,500     $ 10,000     $ 12,000     $ 7,500     $ 12,000  
Total ACL   $ 109,298     $ 128,261     $ 186,122     $ 109,298     $ 186,122  
                                       
ACL / total outstanding loans     0.83 %     0.94 %     1.29 %     0.83 %     1.29 %
ACL / total adjusted loans(9)     0.86 %     1.00 %     1.46 %     0.86 %     1.46 %
ALLL / total outstanding loans     0.77 %     0.86 %     1.21 %     0.77 %     1.21 %
ALLL / total adjusted loans(9)     0.80 %     0.92 %     1.36 %     0.80 %     1.36 %
Net charge-offs / total average loans     0.00 %     0.00 %     0.04 %     0.01 %     0.09 %
Net charge-offs / total adjusted average loans(9)     0.00 %     0.00 %     0.04 %     0.01 %     0.11 %
Provision for loan losses/ total average loans     (0.48 %     (0.71 )%     0.15 %     (0.55 )%     0.92 %
Provision for loan losses/ total adjusted average loans(9)     (0.51 %     (0.77 )%     0.17 %     (0.60 )%     1.03 %
  `                                    
Nonperforming Assets (6)                                      
Construction and land development   $ 2,710     $ 2,685     $ 3,520     $ 2,710     $ 3,520  
Commercial real estate - owner occupied     7,786       6,969       9,267       7,786       9,267  
Commercial real estate - non-owner occupied     4,174       3,026       1,992       4,174       1,992  
Multifamily real estate     113       113       33       113       33  
Commercial & Industrial     2,062       1,908       1,592       2,062       1,592  
Residential 1-4 Family - Commercial     2,445       4,200       5,743       2,445       5,743  
Residential 1-4 Family - Consumer     12,150       13,489       12,620       12,150       12,620  
Residential 1-4 Family - Revolving     3,723       3,726       3,664       3,723       3,664  
Auto     255       179       517       255       517  
Consumer     54       104       75       54       75  
Nonaccrual loans   $ 35,472     $ 36,399     $ 39,023     $ 35,472     $ 39,023  
Foreclosed property     1,696       1,696       4,159       1,696       4,159  
Total nonperforming assets (NPAs)   $ 37,168     $ 38,095     $ 43,182     $ 37,168     $ 43,182  
Construction and land development   $ 304     $ 186     $ 93     $ 304     $ 93  
Commercial real estate - owner occupied     1,886       2,276       1,726       1,886       1,726  
Commercial real estate - non-owner occupied     1,175       827       168       1,175       168  
Multifamily real estate                 359             359  
Commercial & Industrial     1,256       1,088       604       1,256       604  
Residential 1-4 Family - Commercial     1,091       759       5,298       1,091       5,298  
Residential 1-4 Family - Consumer     2,462       2,725       4,495       2,462       4,495  
Residential 1-4 Family - Revolving     2,474       561       2,276       2,474       2,276  
Auto     209       168       315       209       315  
Consumer     173       156       327       173       327  
Loans ≥ 90 days and still accruing   $ 11,030     $ 8,746     $ 15,661     $ 11,030     $ 15,661  
Total NPAs and loans ≥ 90 days   $ 48,198     $ 46,841     $ 58,843     $ 48,198     $ 58,843  
NPAs / total outstanding loans     0.28 %     0.28 %     0.30 %     0.28 %     0.30 %
NPAs / total adjusted loans(9)     0.29 %     0.30 %     0.34 %     0.29 %     0.34 %
NPAs / total assets     0.19 %     0.19 %     0.22 %     0.19 %     0.22 %
ALLL / nonaccrual loans     286.98 %     324.90 %     446.20 %     286.98 %     446.20 %
ALLL/ nonperforming assets     273.89 %     310.44 %     403.23 %     273.89 %     403.23 %
                                       


                                         
    As of & For Three Months Ended     As of & For Nine Months Ended  
       09/30/21        06/30/21        09/30/20     09/30/21     09/30/20  
Past Due Detail (6)   (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Construction and land development   $ 744     $ 798     $ 2,625     $ 744     $ 2,625  
Commercial real estate - owner occupied     735       1,450       4,924       735       4,924  
Commercial real estate - non-owner occupied     1,302       1,501       1,291       1,302       1,291  
Multifamily real estate           156                    
Commercial & Industrial     11,089       948       4,322       11,089       4,322  
Residential 1-4 Family - Commercial     807       710       1,236       807       1,236  
Residential 1-4 Family - Consumer     406       764       2,998       406       2,998  
Residential 1-4 Family - Revolving     1,092       919       2,669       1,092       2,669  
Auto     1,548       1,333       1,513       1,548       1,513  
Consumer     790       545       1,020       790       1,020  
Other Commercial     631       375       613       631       613  
Loans 30-59 days past due   $ 19,144     $ 9,499     $ 23,211     $ 19,144     $ 23,211  
Construction and land development   $ 58     $ 310     $ 223     $ 58     $ 223  
Commercial real estate - owner occupied     61       2,008       1,310       61       1,310  
Commercial real estate - non-owner occupied     570       78       1,371       570       1,371  
Commercial & Industrial     3,328       1,733       1,448       3,328       1,448  
Residential 1-4 Family - Commercial     698       565       937       698       937  
Residential 1-4 Family - Consumer     2,188       992       3,976       2,188       3,976  
Residential 1-4 Family - Revolving     587       678       1,141       587       1,141  
Auto     202       165       453       202       453  
Consumer     317       297       772       317       772  
Other Commercial     600             427       600       427  
Loans 60-89 days past due   $ 8,609     $ 6,826     $ 12,058     $ 8,609     $ 12,058  
                                         
Past Due and still accruing   $ 38,783     $ 25,071     $ 50,930     $ 38,783     $ 50,930  
Past Due and still accruing / total loans     0.30 %     0.18 %     0.35 %     0.30 %     0.35 %
                                         
Troubled Debt Restructurings                                        
Performing   $ 11,335     $ 13,053     $ 14,515     $ 11,335     $ 14,515  
Nonperforming     7,365       6,231       7,045       7,365       7,045  
Total troubled debt restructurings   $ 18,700     $ 19,284     $ 21,560     $ 18,700     $ 21,560  
                                         
Alternative Performance Measures (non-GAAP)                                        
Net interest income (FTE) (1)                                        
Net interest income (GAAP)   $ 137,488     $ 140,548     $ 137,381     $ 412,934     $ 409,694  
FTE adjustment     3,164       3,144       2,901       9,361       8,462  
Net interest income (FTE) (non-GAAP)   $ 140,652     $ 143,692     $ 140,282     $ 422,295     $ 418,156  
Noninterest income (GAAP)     29,938       28,466       34,407       89,388       99,245  
Total revenue (FTE) (non-GAAP)   $ 170,590     $ 172,158     $ 174,689     $ 511,683     $ 517,401  
                                         
Average earning assets   $ 17,910,389     $ 17,868,938     $ 17,748,152     $ 17,824,607     $ 16,809,423  
Net interest margin     3.05 %     3.15 %     3.08 %     3.10 %     3.26 %
Net interest margin (FTE)     3.12 %     3.23 %     3.14 %     3.17 %     3.32 %
                                         
Tangible Assets (2)                                        
Ending assets (GAAP)   $ 19,935,657     $ 19,989,356     $ 19,930,650     $ 19,935,657     $ 19,930,650  
Less: Ending goodwill     935,560       935,560       935,560       935,560       935,560  
Less: Ending amortizable intangibles     46,537       49,917       61,068       46,537       61,068  
Ending tangible assets (non-GAAP)   $ 18,953,560     $ 19,003,879     $ 18,934,022     $ 18,953,560     $ 18,934,022  
                                         
Tangible Common Equity (2)                                        
Ending equity (GAAP)   $ 2,694,439     $ 2,747,597     $ 2,660,885     $ 2,694,439     $ 2,660,885  
Less: Ending goodwill     935,560       935,560       935,560       935,560       935,560  
Less: Ending amortizable intangibles     46,537       49,917       61,068       46,537       61,068  
Less: Perpetual preferred stock     166,357       166,357       166,357       166,357       166,357  
Ending tangible common equity (non-GAAP)   $ 1,545,985     $ 1,595,763     $ 1,497,900     $ 1,545,985     $ 1,497,900  
                                         
Average equity (GAAP)   $ 2,718,032     $ 2,747,864     $ 2,648,777     $ 2,728,605     $ 2,541,856  
Less: Average goodwill     935,560       935,560       935,560       935,560       935,560  
Less: Average amortizable intangibles     48,179       51,637       63,016       51,728       67,130  
Less: Average perpetual preferred stock     166,356       166,356       166,353       166,356       69,248  
Average tangible common equity (non-GAAP)   $ 1,567,937     $ 1,594,311     $ 1,483,848     $ 1,574,961     $ 1,469,918  
                                         
ROTCE (2)(3)                                        
Net income available to common shareholders (GAAP)   $ 71,598     $ 82,417     $ 58,309     $ 207,237     $ 96,107  
Plus: Amortization of intangibles, tax effected     2,671       2,819       3,202       8,436       10,014  
Net income available to common shareholders before amortization of intangibles (non-GAAP)   $ 74,269     $ 85,236     $ 61,511     $ 215,673     $ 106,121  
                                         
Return on average tangible common equity (ROTCE)     18.79 %     21.44 %     16.49 %     18.31 %     9.64 %
                                         


                                         
    As of & For Three Months Ended     As of & For Nine Months Ended  
     09/30/21       06/30/21      09/30/20      09/30/21     09/30/20  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Operating Measures (4)                                        
Net income (GAAP)   $ 74,565     $ 85,384     $ 61,000     $ 216,138     $ 98,798  
Plus: Net loss related to balance sheet repositioning, net of tax                       11,609       9,539  
Less: Gain on sale of securities, net of tax     7             14       69       9,711  
Adjusted operating earnings (non-GAAP)     74,558       85,384       60,986       227,678       98,626  
Less: Dividends on preferred stock     2,967       2,967       2,691       8,901       2,691  
Adjusted operating earnings available to common shareholders (non-GAAP)   $ 71,591     $ 82,417     $ 58,295     $ 218,777     $ 95,935  
                                         
Noninterest expense (GAAP)   $ 95,343     $ 91,971     $ 93,222     $ 299,251     $ 291,681  
Less: Amortization of intangible assets     3,381       3,568       4,053       10,679       12,676  
Less: Losses related to balance sheet repositioning                       14,695       10,306  
Adjusted operating noninterest expense (non-GAAP)   $ 91,962     $ 88,403     $ 89,169     $ 273,877     $ 268,699  
                                         
Noninterest income (GAAP)   $ 29,938     $ 28,466     $ 34,407     $ 89,388     $ 99,245  
Plus: Losses related to balance sheet repositioning                             (1,769 )
Less: Gain on sale of securities     9             18       87       12,293  
Adjusted operating noninterest income (non-GAAP)   $ 29,929     $ 28,466     $ 34,389     $ 89,301     $ 88,721  
                                         
Net interest income (FTE) (non-GAAP) (1)   $ 140,652     $ 143,692     $ 140,282     $ 422,295     $ 418,156  
Adjusted operating noninterest income (non-GAAP)     29,929       28,466       34,389       89,301       88,721  
Total adjusted revenue (FTE) (non-GAAP) (1)   $ 170,581     $ 172,158     $ 174,671     $ 511,596     $ 506,877  
                                         
Efficiency ratio     56.95 %     54.42 %     54.27 %     59.57 %     57.31 %
Adjusted operating efficiency ratio (FTE) (1)(7)     53.91 %     51.35 %     51.05 %     53.53 %     53.01 %
                                         
Operating ROTCE (2)(3)(4)                                        
Adjusted operating earnings available to common shareholders (non-GAAP)   $ 71,591     $ 82,417     $ 58,295     $ 218,777     $ 95,935  
Plus: Amortization of intangibles, tax effected     2,671       2,819       3,202       8,436       10,014  
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)   $ 74,262     $ 85,236     $ 61,497     $ 227,213     $ 105,949  
                                         
Average tangible common equity (non-GAAP)   $ 1,567,937     $ 1,594,311     $ 1,483,848     $ 1,574,961     $ 1,469,918  
Adjusted operating return on average tangible common equity (non-GAAP)     18.79 %     21.44 %     16.49 %     19.29 %     9.63 %
                                         
Pre-tax pre-provision adjusted operating earnings (8)                                        
Net income (GAAP)   $ 74,565     $ 85,384     $ 61,000     $ 216,138     $ 98,798  
Plus: Provision for credit losses     (18,850 )     (27,414 )     6,558       (59,888 )     100,954  
Plus: Income tax expense     16,368       19,073       11,008       46,821       17,506  
Plus: Net loss related to balance sheet repositioning                       14,695       12,075  
Less: Gain on sale of securities     9             18       87       12,293  
Pre-tax pre-provision adjusted operating earnings (non-GAAP)   $ 72,074     $ 77,043     $ 78,548     $ 217,679     $ 217,040  
                                         
Weighted average common shares outstanding, diluted     76,322,736       78,848,724       78,725,346       78,007,543       78,921,108  
Pre-tax pre-provision earnings per share, diluted   $ 0.94     $ 0.98     $ 1.00     $ 2.79     $ 2.75  
                                         
Adjusted Loans (9)                                        
Loans held for investment (net of deferred fees and costs) (GAAP)   $ 13,139,586     $ 13,697,929     $ 14,383,215     $ 13,139,586     $ 14,383,215  
Less: PPP adjustments (net of deferred fees and costs)     466,609       859,386       1,600,577       466,609       1,600,577  
Total adjusted loans (non-GAAP)   $ 12,672,977     $ 12,838,543     $ 12,782,638     $ 12,672,977     $ 12,782,638  
                                         
Average loans held for investment (net of deferred fees and costs) (GAAP)   $ 13,451,674     $ 13,971,939     $ 14,358,666     $ 13,827,002     $ 13,639,401  
Less: Average PPP adjustments (net of deferred fees and costs)     687,259       1,187,641       1,638,204       1,059,130       1,457,091  
Total adjusted average loans (non-GAAP)   $ 12,764,415     $ 12,784,298     $ 12,720,462     $ 12,767,872     $ 12,182,310  
                                         


                                         
    As of & For Three Months Ended     As of & For Nine Months Ended  
     09/30/21       06/30/21      09/30/20      09/30/21     09/30/20  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Mortgage Origination Held for Sale Volume (10)                                        
Refinance Volume   $ 49,154     $ 73,330     $ 125,571     $ 241,401     $ 303,995  
Purchase Volume     93,819       88,747       96,010       250,523       210,691  
Total Mortgage loan originations held for sale   $ 142,973     $ 162,077     $ 221,581     $ 491,924     $ 514,686  
% of originations held for sale that are refinances     34.4 %     45.2 %     56.7 %     49.1 %     59.1 %
                                         
Wealth                                        
Assets under management (AUM)   $ 6,377,518     $ 6,396,010     $ 5,455,268     $ 6,377,518     $ 5,455,268  
                                         
Other Data                                        
End of period full-time employees     1,918       1,884       1,883       1,918       1,883  
Number of full-service branches     130       129       135       130       135  
Number of automatic transaction machines (ATMs)     149       149       157       149       157  


               
(1)


These are non-GAAP financial measures. Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE) and adjusted operating efficiency ratio (FTE), respectively, provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.
(2)

These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.
(3)

These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.
(4)

These are non-GAAP financial measures. Adjusted operating measures exclude the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment) and gains or losses on sale of securities. The Company believes these non-GAAP adjusted measures provide investors with important information about the combined economic results of the organization’s operations.
(5) All ratios at September 30, 2021 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed.
(6) These balances reflect the impact of the CARES Act and the Joint Guidance, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.
(7)

The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, the gain on sale of securities and gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment). This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations.
(8)

This is a non-GAAP financial measure. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), and gains or losses on sale of securities.  The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations.
(9)


These are non-GAAP financial measures. PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021.  The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic growth. The Company also believes that the related non-GAAP financial measures of past due loans still accruing interest as a percentage of total loans held for investment (net of deferred fees and costs), excluding PPP, are useful to investors as loans originated under the PPP carry an SBA guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.
(10) Periods ended September 30, 2020 have been restated to adjust for certain mortgage loans held for investment that were previously included.
   
   

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

                 
  September 30,   December 31,   September 30,
  2021   2020   2020
ASSETS   (unaudited)     (audited)     (unaudited)
Cash and cash equivalents:                
Cash and due from banks $ 255,648   $ 172,307   $ 178,563
Interest-bearing deposits in other banks   807,225     318,974     335,111
Federal funds sold   377     2,013     7,292
Total cash and cash equivalents   1,063,250     493,294     520,966
Securities available for sale, at fair value   3,195,176     2,540,419     2,443,340
Securities held to maturity, at carrying value   535,722     544,851     546,661
Restricted stock, at cost   76,825     94,782     112,216
Loans held for sale, at fair value   35,417     96,742     52,607
Loans held for investment, net of deferred fees and costs   13,139,586     14,021,314     14,383,215
Less allowance for loan and lease losses   101,798     160,540     174,122
Total loans held for investment, net   13,037,788     13,860,774     14,209,093
Premises and equipment, net   159,588     163,829     156,934
Goodwill   935,560     935,560     935,560
Amortizable intangibles, net   46,537     57,185     61,068
Bank owned life insurance   430,341     326,892     325,538
Other assets   419,453     514,121     566,667
Total assets $ 19,935,657   $ 19,628,449   $ 19,930,650
LIABILITIES                
Noninterest-bearing demand deposits $ 5,328,838   $ 4,368,703   $ 4,420,665
Interest-bearing deposits   11,293,322     11,354,062     11,155,433
Total deposits   16,622,160     15,722,765     15,576,098
Securities sold under agreements to repurchase   95,181     100,888     91,086
Other short-term borrowings       250,000     175,200
Long-term borrowings   290,584     489,829     1,048,036
Other liabilities   233,293     356,477     379,345
Total liabilities   17,241,218     16,919,959     17,269,765
Commitments and contingencies                
STOCKHOLDERS' EQUITY                
Preferred stock, $10.00 par value   173     173     173
Common stock, $1.33 par value   100,062     104,169     104,141
Additional paid-in capital   1,804,617     1,917,081     1,914,640
Retained earnings   760,164     616,052     579,269
Accumulated other comprehensive income (loss)   29,423     71,015     62,662
Total stockholders' equity   2,694,439     2,708,490     2,660,885
Total liabilities and stockholders' equity $ 19,935,657   $ 19,628,449   $ 19,930,650
                 
Common shares outstanding   75,645,031     78,729,212     78,718,850
Common shares authorized   200,000,000     200,000,000     200,000,000
Preferred shares outstanding   17,250     17,250     17,250
Preferred shares authorized   500,000     500,000     500,000
                 
                 

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

                             
  Three Months Ended   Nine Months Ended
  September 30,   June 30,   September 30,   September 30,   September 30,
  2021     2021     2020   2021     2020
Interest and dividend income:                            
Interest and fees on loans $ 124,999     $ 130,570     $ 138,402   $ 383,575     $ 432,763
Interest on deposits in other banks   291       86       137     454       1,154
Interest and dividends on securities:                            
Taxable   11,230       10,519       10,275     32,102       33,170
Nontaxable   9,859       9,677       8,600     28,773       24,520
Total interest and dividend income   146,379       150,852       157,414     444,904       491,607
Interest expense:                            
Interest on deposits   5,837       7,238       15,568     22,203       63,943
Interest on short-term borrowings   22       21       72     91       1,598
Interest on long-term borrowings   3,032       3,045       4,393     9,676       16,372
Total interest expense   8,891       10,304       20,033     31,970       81,913
Net interest income   137,488       140,548       137,381     412,934       409,694
Provision for credit losses   (18,850 )     (27,414 )     6,558     (59,888 )     100,954
Net interest income after provision for credit losses   156,338       167,962       130,823     472,822       308,740
Noninterest income:                            
Service charges on deposit accounts   7,198       6,607       6,041     19,314       18,549
Other service charges, commissions and fees   1,534       1,735       1,621     4,970       4,600
Interchange fees   2,203       2,203       1,979     6,252       5,300
Fiduciary and asset management fees   7,029       6,819       6,045     20,323       17,543
Mortgage banking income   4,818       4,619       8,897     17,692       16,744
Gains on securities transactions   9             18     87       12,293
Bank owned life insurance income   2,727       3,209       3,421     8,202       7,498
Loan-related interest rate swap fees   1,102       1,321       3,170     4,176       12,602
Other operating income   3,318       1,953       3,215     8,372       4,116
Total noninterest income   29,938       28,466       34,407     89,388       99,245
Noninterest expenses:                            
Salaries and benefits   53,534       50,766       49,000     156,959       149,013
Occupancy expenses   7,251       7,140       7,441     21,705       21,798
Furniture and equipment expenses   4,040       3,911       3,895     11,919       11,042
Technology and data processing   7,534       7,219       6,564     21,657       19,187
Professional services   3,792       4,408       2,914     13,161       9,211
Marketing and advertising expense   2,548       2,738       2,631     7,330       7,413
FDIC assessment premiums and other insurance   2,172       2,319       1,811     6,798       7,578
Other taxes   4,432       4,435       4,124     13,303       12,364
Loan-related expenses   1,503       1,909       2,314     5,289       7,512
Amortization of intangible assets   3,381       3,568       4,053     10,679       12,676
Loss on debt extinguishment                   14,695       10,306
Other expenses   5,156       3,558       8,475     15,756       23,581
Total noninterest expenses   95,343       91,971       93,222     299,251       291,681
Income before income taxes   90,933       104,457       72,008     262,959       116,304
Income tax expense   16,368       19,073       11,008     46,821       17,506
Net income $ 74,565     $ 85,384     $ 61,000     216,138       98,798
Dividends on preferred stock   2,967       2,967       2,691     8,901       2,691
Net income available to common shareholders $ 71,598     $ 82,417     $ 58,309   $ 207,237     $ 96,107
                             
Basic earnings per common share $ 0.94     $ 1.05     $ 0.74   $ 2.66     $ 1.22
Diluted earnings per common share $ 0.94     $ 1.05     $ 0.74   $ 2.66     $ 1.22
 
 

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

                               
  For the Quarter Ended
  September 30, 2021   June 30, 2021
  Average
Balance
     Interest
Income /
Expense (1)
     Yield /
Rate (1)(2)
     Average
Balance
     Interest
Income /
Expense (1)
     Yield /
Rate (1)(2)
  (unaudited)     (unaudited)
Assets:                              
Securities:                              
Taxable $ 2,248,478     $ 11,230   1.98 %   $ 2,028,637     $ 10,519   2.08 %
Tax-exempt   1,431,499       12,480   3.46 %     1,391,692       12,249   3.53 %
Total securities   3,679,977       23,710   2.56 %     3,420,329       22,768   2.67 %
Loans, net (3) (4)   13,451,674       125,290   3.70 %     13,971,939       130,840   3.76 %
Other earning assets   778,738       543   0.28 %     476,670       388   0.33 %
Total earning assets   17,910,389     $ 149,543   3.31 %     17,868,938     $ 153,996   3.46 %
Allowance for loan and lease losses   (117,414 )               (137,997 )          
Total non-earning assets   2,263,595                 2,192,037            
Total assets $ 20,056,570               $ 19,922,978            
                               
Liabilities and Stockholders' Equity:                              
Interest-bearing deposits:                              
Transaction and money market accounts $ 8,345,410     $ 1,501   0.07 %   $ 8,159,890     $ 1,809   0.09 %
Regular savings   1,058,284       55   0.02 %     1,016,661       55   0.02 %
Time deposits (5)   2,109,131       4,281   0.81 %     2,270,217       5,374   0.95 %
Total interest-bearing deposits   11,512,825       5,837   0.20 %     11,446,768       7,238   0.25 %
Other borrowings (6)   395,984       3,054   3.06 %     399,855       3,066   3.08 %
Total interest-bearing liabilities   11,908,809     $ 8,891   0.30 %     11,846,623     $ 10,304   0.35 %
                               
Noninterest-bearing liabilities:                              
Demand deposits   5,205,319                 5,053,773            
Other liabilities   224,410                 274,718            
Total liabilities   17,338,538                 17,175,114            
Stockholders' equity   2,718,032                 2,747,864            
Total liabilities and stockholders' equity $ 20,056,570               $ 19,922,978            
Net interest income       $ 140,652             $ 143,692    
                               
Interest rate spread             3.01 %               3.11 %
Cost of funds             0.19 %               0.23 %
Net interest margin             3.12 %               3.23 %


                   
(1) Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.
(2) Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.
(3) Nonaccrual loans are included in average loans outstanding.
(4) Interest income on loans includes $4.2 million and $4.1 million for the three months ended September 30, 2021 and June 30, 2021, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5) Interest expense on time deposits includes amortization of $8,000 for the three months ended September 30, 2021 and accretion of $12,000 for the three months ended June 30, 2021, for the fair market value adjustments related to acquisitions.
(6)  Interest expense on borrowings includes $203,000 and $202,000 for the three months ended September 30, 2021 and June 30, 2021, in amortization of the fair market value adjustments related to acquisitions.
   


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


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Source: Atlantic Union Bank