Atlantic Union Bankshares Reports Fourth Quarter Financial Results

RICHMOND, Va.--(BUSINESS WIRE)-- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders and adjusted operating earnings available to common shareholders(1) of $67.6 million and basic and diluted earnings per common share of $0.90 for the fourth quarter ended December 31, 2022. Pre-tax pre-provision adjusted operating earnings available to common shareholders(1) totaled $85.6 million for the fourth quarter ended December 31, 2022.

“Atlantic Union Bankshares delivered strong fourth quarter financial results as we hit our profitability and efficiency targets - with low double-digit annualized loan growth, strong credit quality, an expanding net interest margin and positive operating leverage,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Our markets continue to show resiliency and positive dynamics, which combined with our asset sensitivity lead us to believe we are well-positioned for 2023.”

“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 2022, net interest income was $163.8 million, an increase of $13.1 million from $150.7 million for the third quarter of 2022. Net interest income (FTE)(1) was $168.0 million in the fourth quarter of 2022, an increase of $13.4 million from the third quarter of 2022. The increases in net interest income and net interest income (FTE)(1) were primarily driven by higher loan yields on the Company’s variable rate loans due to rising market interest rates, average loan growth, and increases in investment income primarily due to higher yield on taxable securities. These increases were partially offset by an increase in interest expense due to higher cost of funds, primarily due to an increase in short-term interest rates on borrowings and deposits, increased use of short-term funding and higher average deposits from the prior quarter. The fourth quarter net interest margin and net interest margin (FTE)(1) increased 27 basis points from the prior quarter to 3.61% and 3.70%, respectively, at December 31, 2022. Earning asset yields increased by 66 basis points in the fourth quarter of 2022 compared to the third quarter of 2022 due to the impact of rising market interest rates on loans and investment securities yields. The cost of funds increased from the prior quarter by 39 basis points to 84 basis points at December 31, 2022, driven by higher deposit and borrowing costs 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 $1.3 million for the quarter ended December 31, 2022, representing an increase of $157,000 from the prior quarter. The four quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

 

 

Loan

 

Deposit

 

Borrowings

 

 

 

 

 

Accretion

 

Amortization

 

Amortization

 

Total

For the quarter ended March 31, 2022

 

$

2,253

 

$

(10

)

 

$

(203

)

 

$

2,040

 

For the quarter ended June 30, 2022

 

 

2,879

 

 

(11

)

 

 

(207

)

 

 

2,661

 

For the quarter ended September 30, 2022

 

 

1,326

 

 

(11

)

 

 

(209

)

 

 

1,106

 

For the quarter ended December 31, 2022

 

 

1,484

 

 

(12

)

 

 

(209

)

 

 

1,263

 

Total for the year ended December 31, 2022

 

$

7,942

 

$

(44

)

 

$

(828

)

 

$

7,070

 

For the years ending (estimated):

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

3,169

 

 

(31

)

 

 

(852

)

 

 

2,286

 

2024

 

 

2,597

 

 

(4

)

 

 

(877

)

 

 

1,716

 

2025

 

 

2,036

 

 

(1

)

 

 

(900

)

 

 

1,135

 

2026

 

 

1,650

 

 

 

 

 

(926

)

 

 

724

 

2027

 

 

1,259

 

 

 

 

 

(953

)

 

 

306

 

Thereafter

 

 

6,423

 

 

 

 

 

(7,993

)

 

 

(1,570

)

Total remaining acquisition accounting fair value adjustments at December 31, 2022

 

$

17,134

 

$

(36

)

 

$

(12,501

)

 

$

4,597

 

ASSET QUALITY

Overview

Nonperforming assets (“NPAs”) as a percentage of loans decreased 2 basis points to 0.19% at December 31, 2022, compared to the prior quarter. Accruing past due loan levels as a percentage of total loans held for investment at December 31, 2022 totaled 21 basis points, which is consistent with September 30, 2022, and represents a 2 basis point decrease from December 31, 2021. Net charge-off levels remained low at 0.02% of total average loans (annualized) for the fourth quarter of 2022, consistent with the quarters ended September 30, 2022 and December 31, 2021. The allowance for credit losses (“ACL”) totaled $124.4 million at December 31, 2022, a $5.4 million increase from the prior quarter.

Nonperforming Assets

At December 31, 2022, NPAs totaled $27.1 million, a decrease of $1.5 million from September 30, 2022. 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,

 

 

2022

 

2022

 

2022

 

2022

 

2021

Nonaccrual loans

 

$

27,038

 

$

26,500

 

$

29,070

 

$

29,032

 

$

31,100

Foreclosed properties

 

 

76

 

 

 

2,087

 

 

 

2,065

 

 

 

1,696

 

 

 

1,696

 

Total nonperforming assets

 

$

27,114

 

 

$

28,587

 

 

$

31,135

 

 

$

30,728

 

 

$

32,796

 

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,

 

 

2022

 

2022

 

2022

 

2022

 

2021

Beginning Balance

 

$

26,500

 

 

$

29,070

 

 

$

29,032

 

 

$

31,100

 

 

$

35,472

 

Net customer payments

 

 

(1,805

)

 

 

(3,725

)

 

 

(2,472

)

 

 

(4,132

)

 

 

(5,068

)

Additions

 

 

2,935

 

 

 

1,302

 

 

 

3,203

 

 

 

2,087

 

 

 

1,294

 

Charge-offs

 

 

(461

)

 

 

(125

)

 

 

(311

)

 

 

(23

)

 

 

(598

)

Loans returning to accruing status

 

 

(131

)

 

 

 

 

 

 

 

 

 

 

 

 

Transfers to foreclosed property

 

 

 

 

 

(22

)

 

 

(382

)

 

 

 

 

 

 

Ending Balance

 

$

27,038

 

 

$

26,500

 

 

$

29,070

 

 

$

29,032

 

 

$

31,100

 

Past Due Loans

Past due loans still accruing interest totaled $30.0 million or 0.21% of total loans held for investment at December 31, 2022, compared to $29.0 million or 0.21% of total loans held for investment at September 30, 2022, and $29.9 million or 0.23% of total loans held for investment at December 31, 2021. Of the total past due loans still accruing interest, $7.5 million or 0.05% of total loans held for investment were loans past due 90 days or more at December 31, 2022, compared to $7.4 million or 0.05% of total loans held for investment at September 30, 2022, and $9.1 million or 0.07% of total loans held for investment at December 31, 2021.

Allowance for Credit Losses

At December 31, 2022, the ACL was $124.4 million and included an allowance for loan and lease losses (“ALLL”) of $110.8 million and a reserve for unfunded commitments (“RUC”) of $13.6 million. The ACL at December 31, 2022 increased $5.4 million from September 30, 2022 due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the fourth quarter of 2022.

The ACL as a percentage of total loans was 0.86% at December 31, 2022, consistent with September 30, 2022. The ALLL as a percentage of total loans was 0.77% at December 31, 2022, compared to 0.78% at September 30, 2022.

Net Charge-offs

Net charge-offs were $810,000 or 0.02% of total average loans on an annualized basis for the quarter ended December 31, 2022, compared to $587,000 or 0.02% (annualized) for the third quarter of 2022, and $511,000 or 0.02% (annualized) for the fourth quarter of 2021. On a year-to-date basis through December 31, 2022, net charge-offs totaled $2.3 million or 0.02% of total average loans.

Provision for Credit Losses

For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $6.3 million, compared to a provision for credit losses of $6.4 million in the previous quarter, and a negative provision for credit losses of $1.0 million in the fourth quarter of 2021. The provision for credit losses for the fourth quarter of 2022 reflected a provision of $3.6 million for loan losses and a $2.7 million provision for unfunded commitments.

NONINTEREST INCOME

Noninterest income decreased $1.1 million to $24.5 million for the quarter ended December 31, 2022 from $25.6 million in the prior quarter primarily due to declines in equity method investment income, partially offset by increases in loan syndication, Small Business Administration (“SBA”) 7a, and foreign exchange revenues, each included within other operating income. In addition, mortgage banking income decreased $1.0 million from the prior quarter due to lower mortgage origination volumes and gain on sale margins, and bank owned life insurance income decreased $796,000, reflecting the impact of the prior quarter’s mortality benefit. These noninterest income category decreases were partially offset by increases in loan-related interest rate swap fees of $1.6 million due to an increase in average deal size among swaps executed in the current quarter.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended December 31, 2022 decreased to $99.8 million from $99.9 million in the prior quarter. Notable noninterest expense activity in the fourth quarter of 2022 included a gain related to the sale and leaseback of an office building, refunds of prior period FDIC assessment expenses, costs related to the closure of five branches expected to close in the first quarter of 2023 and other restructuring expenses, the write-down of obsolete software, increased variable incentive compensation and profit-sharing expenses, as well as professional services increases related to strategic projects.

INCOME TAXES

The effective tax rate for the three months ended December 31, 2022 was 14.3%, compared to 17.0% for the three months ended September 30, 2022. The decrease in the effective tax rate reflects the impact of changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At December 31, 2022, total assets were $20.5 billion, an increase of $510.9 million or approximately 10.2% (annualized) from September 30, 2022, and an increase of $396.3 million or approximately 2.0% from December 31, 2021. Total assets increased from the prior quarter primarily due to the $530.4 million increase in total loans held for investment (net of deferred fees and costs) driven by loan growth, which was funded primarily by a $1.0 billion increase in short-term borrowings and partially by a $70.1 million decrease in cash and cash equivalents.

At December 31, 2022, loans held for investment (net of deferred fees and costs) totaled $14.4 billion, including $7.3 million in Paycheck Protection Program (“PPP”) loans, an increase of $530.4 million or 15.1% (annualized) from $13.9 billion, including $12.1 million in PPP loans, at September 30, 2022. Average loans held for investment (net of deferred fees and costs) totaled $14.1 billion at December 31, 2022, an increase of $384.0 million or 11.1% (annualized) from the prior quarter. Excluding PPP loans (net of deferred fees and costs)(1), adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $535.3 million or 15.3% (annualized) from September 30, 2022 and adjusted average loans increased $390.0 million or 11.3% (annualized) from the prior quarter. At December 31, 2022, loans held for investment (net of deferred fees and costs) increased $1.3 billion or 9.5% from December 31, 2021, and quarterly average loans increased $1.0 billion or 7.9% from the same period in the prior year. Excluding PPP loans (net of deferred fees and costs)(1), adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $1.4 billion or 10.7% from December 31, 2021, and adjusted quarterly average loans during the fourth quarter of 2022 increased $1.3 billion or 10.3% from the fourth quarter of 2021.

At December 31, 2022, total deposits were $15.9 billion, a decrease of $614.5 million or approximately 14.7% (annualized) from September 30, 2022. Average deposits at December 31, 2022 increased from the prior quarter by $123.5 million or 3.0% (annualized). Total deposits at December 31, 2022 decreased $679.4 million or 4.1% from December 31, 2021, and quarterly average deposits during the fourth quarter of 2022 also decreased $249.5 million or 1.5% from the fourth quarter of 2021. Total deposits decreased from the prior quarter and prior year primarily due to the impact of customer behavior in response to inflation and higher market interest rates, in addition to seasonal outflows.

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

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

 

 

2022

 

2022

 

2021

 

Common equity Tier 1 capital ratio (2)

 

9.95

%

9.96

%

10.24

%

Tier 1 capital ratio (2)

 

10.94

%

10.98

%

11.32

%

Total capital ratio (2)

 

13.70

%

13.80

%

14.17

%

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

 

9.42

%

9.32

%

9.01

%

Common equity to total assets

 

10.78

%

10.60

%

12.68

%

Tangible common equity to tangible assets (1)

 

6.43

%

6.11

%

8.20

%

_________________________

At December 31, 2022, the Company’s common equity to total assets capital ratio and tangible common equity to tangible assets capital ratio decreased from the prior year primarily due to the unrealized losses on the available for sale (“AFS”) securities portfolio recorded in other comprehensive income due to market interest rate increases, while these ratios increased from the prior quarter due to the increase in the value of the AFS securities portfolio, as long-term rates decreased during the fourth quarter of 2022.

During the fourth quarter of 2022, 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 2022 and the fourth quarter of 2021. During the fourth quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the third quarter of 2022 and an increase of $0.02 or approximately 7.1% from the fourth quarter of 2021.

_________________________

(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 Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

(2) All ratios at December 31, 2022 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 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

On January 18, 2023, the Company completed the transfer of the listing of its common stock and its depositary shares, each representing a 1/400th interest in a share of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, from The Nasdaq Stock Market LLC to the New York Stock Exchange, under the ticker symbols of “AUB” and “AUB.PRA”, respectively.

FOURTH QUARTER AND FISCAL YEAR 2022 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 24, 2023 during which management will review the financial results for the fourth quarter and fiscal year 2022 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/d6afrqsq.

For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BI10abddc24ec746bdb44736355d7d0588. 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 periods ended December 31, 2022, 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 future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, and statements that include other projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, 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 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 future results, performance, or achievements of, or trends affecting, the Company 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, the Company’s funding costs and the Company’s loan and securities portfolios;
  • inflation and its impacts on economic growth and customer and client behavior;
  • 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;
  • 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 the Company’s loan or investment portfolios and changes therein;
  • demand for loan products and financial services in the Company’s market areas;
  • 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;
  • real estate values in the Company’s lending area;
  • an insufficient ACL;
  • changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;
  • volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;
  • 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;
  • 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 (such as the ongoing conflict between Russia and Ukraine) 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 the COVID-19 pandemic, 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;
  • potential claims, damages, and fines related to litigation or government actions;
  • the effects of changes in federal, state or local tax laws and regulations;
  • any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
  • other factors, many of which are beyond the control of the Company.

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 the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021 and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does 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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Results of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

202,068

 

$

171,156

 

$

147,456

 

 

$

660,435

 

$

592,359

 

 

Interest expense

 

 

38,220

 

 

20,441

 

 

9,129

 

 

 

76,174

 

 

41,099

 

 

Net interest income

 

 

163,848

 

 

150,715

 

 

138,327

 

 

 

584,261

 

 

551,260

 

 

Provision for credit losses

 

 

6,257

 

 

6,412

 

 

(1,000

)

 

 

19,028

 

 

(60,888

)

 

Net interest income after provision for credit losses

 

 

157,591

 

 

144,303

 

 

139,327

 

 

 

565,233

 

 

612,148

 

 

Noninterest income

 

 

24,500

 

 

25,584

 

 

36,417

 

 

 

118,523

 

 

125,806

 

 

Noninterest expenses

 

 

99,790

 

 

99,923

 

 

119,944

 

 

 

403,802

 

 

419,195

 

 

Income before income taxes

 

 

82,301

 

 

69,964

 

 

55,800

 

 

 

279,954

 

 

318,759

 

 

Income tax expense

 

 

11,777

 

 

11,894

 

 

8,021

 

 

 

45,444

 

 

54,842

 

 

Net income

 

 

70,524

 

 

58,070

 

 

47,779

 

 

 

234,510

 

 

263,917

 

 

Dividends on preferred stock

 

 

2,967

 

 

2,967

 

 

2,967

 

 

 

11,868

 

 

11,868

 

 

Net income available to common shareholders

 

$

67,557

 

$

55,103

 

$

44,812

 

 

$

222,642

 

$

252,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earned on earning assets (FTE) (1)

 

$

206,186

 

$

174,998

 

$

150,684

 

 

$

675,308

 

$

604,950

 

 

Net interest income (FTE) (1)

 

 

167,966

 

 

154,557

 

 

141,555

 

 

 

599,134

 

 

563,851

 

 

Total revenue (FTE) (1)

 

 

192,466

 

 

180,141

 

 

177,972

 

 

 

717,657

 

 

689,657

 

 

Pre-PPP total adjusted revenue (FTE) (1) (10)

 

 

192,447

 

 

179,687

 

 

161,423

 

 

 

703,772

 

 

636,215

 

 

Pre-tax pre-provision adjusted operating earnings (8)

 

 

88,559

 

 

76,376

 

 

66,199

 

 

 

295,411

 

 

284,779

 

 

Pre-PPP pre-tax pre-provision adjusted operating earnings (8) (10)

 

 

88,539

 

 

75,922

 

 

54,787

 

 

 

290,605

 

 

236,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, diluted

 

$

0.90

 

$

0.74

 

$

0.59

 

 

$

2.97

 

$

3.26

 

 

Return on average assets (ROA)

 

 

1.39

%

 

1.15

%

 

0.94

 

%

 

1.18

%

 

1.32

 

%

Return on average equity (ROE)

 

 

12.05

%

 

9.45

%

 

6.98

 

%

 

9.51

%

 

9.68

 

%

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

 

 

22.92

%

 

17.21

%

 

11.98

 

%

 

17.33

%

 

16.72

 

%

Efficiency ratio

 

 

52.98

%

 

56.68

%

 

68.64

 

%

 

57.46

%

 

61.91

 

%

Efficiency ratio (FTE) (1)

 

 

51.85

%

 

55.47

%

 

67.39

 

%

 

56.27

%

 

60.78

 

%

Net interest margin

 

 

3.61

%

 

3.34

%

 

3.03

 

%

 

3.27

%

 

3.08

 

%

Net interest margin (FTE) (1)

 

 

3.70

%

 

3.43

%

 

3.10

 

%

 

3.36

%

 

3.15

 

%

Yields on earning assets (FTE) (1)

 

 

4.54

%

 

3.88

%

 

3.30

 

%

 

3.78

%

 

3.38

 

%

Cost of interest-bearing liabilities

 

 

1.24

%

 

0.68

%

 

0.30

 

%

 

0.64

%

 

0.34

 

%

Cost of deposits

 

 

0.72

%

 

0.37

%

 

0.12

 

%

 

0.34

%

 

0.16

 

%

Cost of funds

 

 

0.84

%

 

0.45

%

 

0.20

 

%

 

0.42

%

 

0.23

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings

 

$

70,525

 

$

58,070

 

$

56,784

 

 

$

230,879

 

$

285,174

 

 

Adjusted operating earnings available to common shareholders

 

 

67,558

 

 

55,103

 

 

53,817

 

 

 

219,011

 

 

273,306

 

 

Adjusted operating earnings per common share, diluted

 

$

0.90

 

$

0.74

 

$

0.71

 

 

$

2.92

 

$

3.53

 

 

Adjusted operating ROA

 

 

1.39

%

 

1.15

%

 

1.11

 

%

 

1.16

%

 

1.43

 

%

Adjusted operating ROE

 

 

12.05

%

 

9.45

%

 

8.30

 

%

 

9.37

%

 

10.46

 

%

Adjusted operating ROTCE (2) (3)

 

 

22.92

%

 

17.21

%

 

14.25

 

%

 

17.06

%

 

18.07

 

%

Adjusted operating efficiency ratio (FTE) (1)(7)

 

 

50.61

%

 

54.09

%

 

57.96

 

%

 

54.68

%

 

54.52

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share, basic

 

$

0.90

 

$

0.74

 

$

0.59

 

 

$

2.97

 

$

3.26

 

 

Earnings per common share, diluted

 

 

0.90

 

 

0.74

 

 

0.59

 

 

 

2.97

 

 

3.26

 

 

Cash dividends paid per common share

 

 

0.30

 

 

0.30

 

 

0.28

 

 

 

1.16

 

 

1.09

 

 

Market value per share

 

 

35.14

 

 

30.38

 

 

37.29

 

 

 

35.14

 

 

37.29

 

 

Book value per common share

 

 

29.68

 

 

28.46

 

 

33.80

 

 

 

29.68

 

 

33.80

 

 

Tangible book value per common share (2)

 

 

16.87

 

 

15.61

 

 

20.79

 

 

 

16.87

 

 

20.79

 

 

Price to earnings ratio, diluted

 

 

9.79

 

 

10.37

 

 

15.93

 

 

 

11.83

 

 

11.44

 

 

Price to book value per common share ratio

 

 

1.18

 

 

1.07

 

 

1.10

 

 

 

1.18

 

 

1.10

 

 

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

 

 

2.08

 

 

1.95

 

 

1.79

 

 

 

2.08

 

 

1.79

 

 

Weighted average common shares outstanding, basic

 

 

74,712,040

 

 

74,703,699

 

 

75,654,336

 

 

 

74,949,109

 

 

77,399,902

 

 

Weighted average common shares outstanding, diluted

 

 

74,713,972

 

 

74,705,054

 

 

75,667,759

 

 

 

74,953,398

 

 

77,417,801

 

 

Common shares outstanding at end of period

 

 

74,712,622

 

 

74,703,774

 

 

75,663,648

 

 

 

74,712,622

 

 

75,663,648

 

 

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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common equity Tier 1 capital ratio (5)

 

 

9.95

%

 

9.96

%

 

10.24

%

 

9.95

%

 

10.24

%

Tier 1 capital ratio (5)

 

 

10.94

%

 

10.98

%

 

11.32

%

 

10.94

%

 

11.32

%

Total capital ratio (5)

 

 

13.70

%

 

13.80

%

 

14.17

%

 

13.70

%

 

14.17

%

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

 

 

9.42

%

 

9.32

%

 

9.01

%

 

9.42

%

 

9.01

%

Common equity to total assets

 

 

10.78

%

 

10.60

%

 

12.68

%

 

10.78

%

 

12.68

%

Tangible common equity to tangible assets (2)

 

 

6.43

%

 

6.11

%

 

8.20

%

 

6.43

%

 

8.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Condition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,461,138

 

$

19,950,231

 

$

20,064,796

 

$

20,461,138

 

$

20,064,796

 

Loans held for investment (net of deferred fees and costs)

 

 

14,449,142

 

 

13,918,720

 

 

13,195,843

 

 

14,449,142

 

 

13,195,843

 

Securities

 

 

3,709,761

 

 

3,640,722

 

 

4,186,475

 

 

3,709,761

 

 

4,186,475

 

Earning Assets

 

 

18,271,430

 

 

17,790,324

 

 

18,030,138

 

 

18,271,430

 

 

18,030,138

 

Goodwill

 

 

925,211

 

 

925,211

 

 

935,560

 

 

925,211

 

 

935,560

 

Amortizable intangibles, net

 

 

26,761

 

 

29,142

 

 

43,312

 

 

26,761

 

 

43,312

 

Deposits

 

 

15,931,677

 

 

16,546,216

 

 

16,611,068

 

 

15,931,677

 

 

16,611,068

 

Borrowings

 

 

1,708,700

 

 

669,558

 

 

506,594

 

 

1,708,700

 

 

506,594

 

Stockholders' equity

 

 

2,372,737

 

 

2,281,150

 

 

2,710,071

 

 

2,372,737

 

 

2,710,071

 

Tangible common equity (2)

 

 

1,254,408

 

 

1,160,440

 

 

1,564,842

 

 

1,254,408

 

 

1,564,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment, net of deferred fees and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

1,101,260

 

$

1,068,201

 

$

862,236

 

$

1,101,260

 

$

862,236

 

Commercial real estate - owner occupied

 

 

1,982,608

 

 

1,953,872

 

 

1,995,409

 

 

1,982,608

 

 

1,995,409

 

Commercial real estate - non-owner occupied

 

 

3,996,130

 

 

3,900,325

 

 

3,789,377

 

 

3,996,130

 

 

3,789,377

 

Multifamily real estate

 

 

802,923

 

 

774,970

 

 

778,626

 

 

802,923

 

 

778,626

 

Commercial & Industrial

 

 

2,983,349

 

 

2,709,047

 

 

2,542,243

 

 

2,983,349

 

 

2,542,243

 

Residential 1-4 Family - Commercial

 

 

538,063

 

 

542,612

 

 

607,337

 

 

538,063

 

 

607,337

 

Residential 1-4 Family - Consumer

 

 

940,275

 

 

891,353

 

 

816,524

 

 

940,275

 

 

816,524

 

Residential 1-4 Family - Revolving

 

 

585,184

 

 

588,452

 

 

560,796

 

 

585,184

 

 

560,796

 

Auto

 

 

592,976

 

 

561,277

 

 

461,052

 

 

592,976

 

 

461,052

 

Consumer

 

 

152,545

 

 

172,776

 

 

176,992

 

 

152,545

 

 

176,992

 

Other Commercial

 

 

773,829

 

 

755,835

 

 

605,251

 

 

773,829

 

 

605,251

 

Total loans held for investment

 

$

14,449,142

 

$

13,918,720

 

$

13,195,843

 

$

14,449,142

 

$

13,195,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest checking accounts

 

$

4,186,505

 

$

4,354,351

 

$

4,176,032

 

$

4,186,505

 

$

4,176,032

 

Money market accounts

 

 

3,922,536

 

 

3,962,473

 

 

4,249,858

 

 

3,922,536

 

 

4,249,858

 

Savings accounts

 

 

1,130,899

 

 

1,173,566

 

 

1,121,297

 

 

1,130,899

 

 

1,121,297

 

Time deposits of $250,000 and over

 

 

405,060

 

 

415,984

 

 

452,193

 

 

405,060

 

 

452,193

 

Other time deposits

 

 

1,403,438

 

 

1,348,904

 

 

1,404,364

 

 

1,403,438

 

 

1,404,364

 

Time deposits

 

 

1,808,498

 

 

1,764,888

 

 

1,856,557

 

 

1,808,498

 

 

1,856,557

 

Total interest-bearing deposits

 

$

11,048,438

 

$

11,255,278

 

$

11,403,744

 

$

11,048,438

 

$

11,403,744

 

Demand deposits

 

 

4,883,239

 

 

5,290,938

 

 

5,207,324

 

 

4,883,239

 

 

5,207,324

 

Total deposits

 

$

15,931,677

 

$

16,546,216

 

$

16,611,068

 

$

15,931,677

 

$

16,611,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

20,174,152

 

$

19,980,500

 

$

20,236,889

 

$

19,949,388

 

$

19,977,551

 

Loans held for investment (net of deferred fees and costs)

 

 

14,117,433

 

 

13,733,447

 

 

13,082,412

 

 

13,671,714

 

 

13,639,325

 

Loans held for sale

 

 

7,809

 

 

15,063

 

 

26,775

 

 

14,519

 

 

39,031

 

Securities

 

 

3,644,196

 

 

3,818,607

 

 

3,998,058

 

 

3,896,337

 

 

3,579,378

 

Earning assets

 

 

18,000,596

 

 

17,879,222

 

 

18,138,285

 

 

17,853,216

 

 

17,903,671

 

Deposits

 

 

16,611,749

 

 

16,488,224

 

 

16,861,219

 

 

16,451,718

 

 

16,541,286

 

Time deposits

 

 

1,764,596

 

 

1,745,224

 

 

1,941,420

 

 

1,735,983

 

 

2,201,039

 

Interest-bearing deposits

 

 

11,415,032

 

 

11,163,945

 

 

11,489,510

 

 

11,172,759

 

 

11,485,130

 

Borrowings

 

 

816,818

 

 

703,272

 

 

445,344

 

 

700,271

 

 

453,452

 

Interest-bearing liabilities

 

 

12,231,850

 

 

11,867,217

 

 

11,934,854

 

 

11,873,030

 

 

11,938,582

 

Stockholders' equity

 

 

2,321,208

 

 

2,436,999

 

 

2,715,610

 

 

2,465,049

 

 

2,725,330

 

Tangible common equity (2)

 

 

1,201,732

 

 

1,315,085

 

 

1,568,828

 

 

1,333,751

 

 

1,573,415

 

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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses (ACL)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

108,009

 

$

104,184

 

$

101,798

 

 

$

99,787

 

$

160,540

 

 

Add: Recoveries

 

 

1,332

 

 

1,214

 

 

1,720

 

 

 

5,076

 

 

8,218

 

 

Less: Charge-offs

 

 

2,142

 

 

1,801

 

 

2,231

 

 

 

7,409

 

 

10,083

 

 

Add: Provision for loan losses

 

 

3,569

 

 

4,412

 

 

(1,500

)

 

 

13,314

 

 

(58,888

)

 

Ending balance, ALLL

 

$

110,768

 

$

108,009

 

$

99,787

 

 

$

110,768

 

$

99,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance, Reserve for unfunded commitment (RUC)

 

$

11,000

 

$

9,000

 

$

7,500

 

 

$

8,000

 

$

10,000

 

 

Add: Provision for unfunded commitments

 

 

2,675

 

 

2,000

 

 

500

 

 

 

5,675

 

 

(2,000

)

 

Ending balance, RUC

 

$

13,675

 

$

11,000

 

$

8,000

 

 

$

13,675

 

$

8,000

 

 

Total ACL

 

$

124,443

 

$

119,009

 

$

107,787

 

 

$

124,443

 

$

107,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL / total outstanding loans

 

 

0.86

%

 

0.86

%

 

0.82

 

%

 

0.86

%

 

0.82

 

%

ACL / total adjusted loans(9)

 

 

0.86

%

 

0.86

%

 

0.83

 

%

 

0.86

%

 

0.83

 

%

ALLL / total outstanding loans

 

 

0.77

%

 

0.78

%

 

0.76

 

%

 

0.77

%

 

0.76

 

%

ALLL / total adjusted loans(9)

 

 

0.77

%

 

0.78

%

 

0.76

 

%

 

0.77

%

 

0.76

 

%

Net charge-offs / total average loans

 

 

0.02

%

 

0.02

%

 

0.02

 

%

 

0.02

%

 

0.01

 

%

Net charge-offs / total adjusted average loans(9)

 

 

0.02

%

 

0.02

%

 

0.02

 

%

 

0.02

%

 

0.01

 

%

Provision for loan losses/ total average loans

 

 

0.10

%

 

0.13

%

 

(0.05

)

%

 

0.10

%

 

(0.43

)

%

Provision for loan losses/ total adjusted average loans(9)

 

 

0.10

%

 

0.13

%

 

(0.05

)

%

 

0.10

%

 

(0.46

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

307

 

$

421

 

$

2,697

 

 

$

307

 

$

2,697

 

 

Commercial real estate - owner occupied

 

 

7,178

 

 

4,883

 

 

5,637

 

 

 

7,178

 

 

5,637

 

 

Commercial real estate - non-owner occupied

 

 

1,263

 

 

1,923

 

 

3,641

 

 

 

1,263

 

 

3,641

 

 

Multifamily real estate

 

 

 

 

 

 

113

 

 

 

 

 

113

 

 

Commercial & Industrial

 

 

1,884

 

 

2,289

 

 

1,647

 

 

 

1,884

 

 

1,647

 

 

Residential 1-4 Family - Commercial

 

 

1,904

 

 

1,962

 

 

2,285

 

 

 

1,904

 

 

2,285

 

 

Residential 1-4 Family - Consumer

 

 

10,846

 

 

11,121

 

 

11,397

 

 

 

10,846

 

 

11,397

 

 

Residential 1-4 Family - Revolving

 

 

3,453

 

 

3,583

 

 

3,406

 

 

 

3,453

 

 

3,406

 

 

Auto

 

 

200

 

 

318

 

 

223

 

 

 

200

 

 

223

 

 

Consumer

 

 

3

 

 

 

 

54

 

 

 

3

 

 

54

 

 

Nonaccrual loans

 

$

27,038

 

$

26,500

 

$

31,100

 

 

$

27,038

 

$

31,100

 

 

Foreclosed property

 

 

76

 

 

2,087

 

 

1,696

 

 

 

76

 

 

1,696

 

 

Total nonperforming assets (NPAs)

 

$

27,114

 

$

28,587

 

$

32,796

 

 

$

27,114

 

$

32,796

 

 

Construction and land development

 

$

100

 

$

115

 

$

299

 

 

$

100

 

$

299

 

 

Commercial real estate - owner occupied

 

 

2,167

 

 

3,517

 

 

1,257

 

 

 

2,167

 

 

1,257

 

 

Commercial real estate - non-owner occupied

 

 

607

 

 

621

 

 

433

 

 

 

607

 

 

433

 

 

Commercial & Industrial

 

 

459

 

 

526

 

 

1,897

 

 

 

459

 

 

1,897

 

 

Residential 1-4 Family - Commercial

 

 

275

 

 

308

 

 

990

 

 

 

275

 

 

990

 

 

Residential 1-4 Family - Consumer

 

 

1,955

 

 

680

 

 

3,013

 

 

 

1,955

 

 

3,013

 

 

Residential 1-4 Family - Revolving

 

 

1,384

 

 

1,255

 

 

882

 

 

 

1,384

 

 

882

 

 

Auto

 

 

344

 

 

148

 

 

241

 

 

 

344

 

 

241

 

 

Consumer

 

 

108

 

 

86

 

 

120

 

 

 

108

 

 

120

 

 

Other Commercial

 

 

91

 

 

95

 

 

 

 

 

91

 

 

 

 

Loans ≥ 90 days and still accruing

 

$

7,490

 

$

7,351

 

$

9,132

 

 

$

7,490

 

$

9,132

 

 

Total NPAs and loans ≥ 90 days

 

$

34,604

 

$

35,938

 

$

41,928

 

 

$

34,604

 

$

41,928

 

 

NPAs / total outstanding loans

 

 

0.19

%

 

0.21

%

 

0.25

 

%

 

0.19

%

 

0.25

 

%

NPAs / total adjusted loans(9)

 

 

0.19

%

 

0.21

%

 

0.25

 

%

 

0.19

%

 

0.25

 

%

NPAs / total assets

 

 

0.13

%

 

0.14

%

 

0.16

 

%

 

0.13

%

 

0.16

 

%

ALLL / nonaccrual loans

 

 

409.68

%

 

407.58

%

 

320.86

 

%

 

409.68

%

 

320.86

 

%

ALLL/ nonperforming assets

 

 

408.53

%

 

377.83

%

 

304.27

 

%

 

408.53

%

 

304.27

 

%

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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Past Due Detail (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

1,253

 

$

120

 

$

1,357

 

$

1,253

 

$

1,357

 

Commercial real estate - owner occupied

 

 

2,305

 

 

7,337

 

 

1,230

 

 

2,305

 

 

1,230

 

Commercial real estate - non-owner occupied

 

 

1,121

 

 

 

 

1,965

 

 

1,121

 

 

1,965

 

Multifamily real estate

 

 

1,229

 

 

 

 

84

 

 

1,229

 

 

84

 

Commercial & Industrial

 

 

824

 

 

796

 

 

1,161

 

 

824

 

 

1,161

 

Residential 1-4 Family - Commercial

 

 

1,231

 

 

1,410

 

 

1,844

 

 

1,231

 

 

1,844

 

Residential 1-4 Family - Consumer

 

 

5,951

 

 

1,123

 

 

3,368

 

 

5,951

 

 

3,368

 

Residential 1-4 Family - Revolving

 

 

1,843

 

 

1,115

 

 

1,493

 

 

1,843

 

 

1,493

 

Auto

 

 

2,747

 

 

1,876

 

 

1,866

 

 

2,747

 

 

1,866

 

Consumer

 

 

351

 

 

409

 

 

689

 

 

351

 

 

689

 

Other Commercial

 

 

 

 

 

 

37

 

 

 

 

37

 

Loans 30-59 days past due

 

$

18,855

 

$

14,186

 

$

15,094

 

$

18,855

 

$

15,094

 

Construction and land development

 

$

45

 

$

107

 

$

 

$

45

 

$

 

Commercial real estate - owner occupied

 

 

635

 

 

763

 

 

152

 

 

635

 

 

152

 

Commercial real estate - non-owner occupied

 

 

48

 

 

457

 

 

127

 

 

48

 

 

127

 

Commercial & Industrial

 

 

174

 

 

3,128

 

 

1,438

 

 

174

 

 

1,438

 

Residential 1-4 Family - Commercial

 

 

 

 

97

 

 

272

 

 

 

 

272

 

Residential 1-4 Family - Consumer

 

 

1,690

 

 

1,449

 

 

2,925

 

 

1,690

 

 

2,925

 

Residential 1-4 Family - Revolving

 

 

511

 

 

1,081

 

 

363

 

 

511

 

 

363

 

Auto

 

 

450

 

 

257

 

 

249

 

 

450

 

 

249

 

Consumer

 

 

125

 

 

101

 

 

186

 

 

125

 

 

186

 

Loans 60-89 days past due

 

$

3,678

 

$

7,440

 

$

5,712

 

$

3,678

 

$

5,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past Due and still accruing

 

$

30,023

 

$

28,977

 

$

29,938

 

$

30,023

 

$

29,938

 

Past Due and still accruing / total loans

 

 

0.21

%

 

0.21

%

 

0.23

%

 

0.21

%

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled Debt Restructurings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

9,273

 

$

10,333

 

$

10,313

 

$

9,273

 

$

10,313

 

Nonperforming

 

 

4,917

 

 

5,298

 

 

7,642

 

 

4,917

 

 

7,642

 

Total troubled debt restructurings

 

$

14,190

 

$

15,631

 

$

17,955

 

$

14,190

 

$

17,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative Performance Measures (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (FTE) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

163,848

 

$

150,715

 

$

138,327

 

$

584,261

 

$

551,260

 

FTE adjustment

 

 

4,118

 

 

3,842

 

 

3,228

 

 

14,873

 

 

12,591

 

Net interest income (FTE) (non-GAAP)

 

$

167,966

 

$

154,557

 

$

141,555

 

$

599,134

 

$

563,851

 

Noninterest income (GAAP)

 

 

24,500

 

 

25,584

 

 

36,417

 

 

118,523

 

 

125,806

 

Total revenue (FTE) (non-GAAP)

 

$

192,466

 

$

180,141

 

$

177,972

 

$

717,657

 

$

689,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

18,000,596

 

$

17,879,222

 

$

18,138,285

 

$

17,853,216

 

$

17,903,671

 

Net interest margin

 

 

3.61

%

 

3.34

%

 

3.03

%

 

3.27

%

 

3.08

%

Net interest margin (FTE)

 

 

3.70

%

 

3.43

%

 

3.10

%

 

3.36

%

 

3.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending assets (GAAP)

 

$

20,461,138

 

$

19,950,231

 

$

20,064,796

 

$

20,461,138

 

$

20,064,796

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

935,560

 

 

925,211

 

 

935,560

 

Less: Ending amortizable intangibles

 

 

26,761

 

 

29,142

 

 

43,312

 

 

26,761

 

 

43,312

 

Ending tangible assets (non-GAAP)

 

$

19,509,166

 

$

18,995,878

 

$

19,085,924

 

$

19,509,166

 

$

19,085,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending equity (GAAP)

 

$

2,372,737

 

$

2,281,150

 

$

2,710,071

 

$

2,372,737

 

$

2,710,071

 

Less: Ending goodwill

 

 

925,211

 

 

925,211

 

 

935,560

 

 

925,211

 

 

935,560

 

Less: Ending amortizable intangibles

 

 

26,761

 

 

29,142

 

 

43,312

 

 

26,761

 

 

43,312

 

Less: Perpetual preferred stock

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

 

166,357

 

Ending tangible common equity (non-GAAP)

 

$

1,254,408

 

$

1,160,440

 

$

1,564,842

 

$

1,254,408

 

$

1,564,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,321,208

 

$

2,436,999

 

$

2,715,610

 

$

2,465,049

 

$

2,725,330

 

Less: Average goodwill

 

 

925,211

 

 

925,211

 

 

935,560

 

 

930,315

 

 

935,560

 

Less: Average amortizable intangibles

 

 

27,909

 

 

30,347

 

 

44,866

 

 

34,627

 

 

49,999

 

Less: Average perpetual preferred stock

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

 

166,356

 

Average tangible common equity (non-GAAP)

 

$

1,201,732

 

$

1,315,085

 

$

1,568,828

 

$

1,333,751

 

$

1,573,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ROTCE (2)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

 

$

67,557

 

$

55,103

 

$

44,812

 

$

222,642

 

$

252,049

 

Plus: Amortization of intangibles, tax effected

 

 

1,881

 

 

1,959

 

 

2,548

 

 

8,544

 

 

10,984

 

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

 

$

69,438

 

$

57,062

 

$

47,360

 

$

231,186

 

$

263,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (ROTCE)

 

 

22.92

%

 

17.21

%

 

11.98

%

 

17.33

%

 

16.72

%

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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Operating Measures (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

70,524

 

 

$

58,070

 

$

47,779

 

 

$

234,510

 

 

$

263,917

 

 

Plus: Net loss related to balance sheet repositioning, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

11,609

 

 

Plus: Branch closing and facility consolidation costs, net of tax

 

 

 

 

 

 

 

13,063

 

 

 

4,351

 

 

 

13,775

 

 

Less: (Loss) gain on sale of securities, net of tax

 

 

(1

)

 

 

 

 

 

 

 

(2

)

 

 

69

 

 

Less: Gain on sale of DHFB, net of tax

 

 

 

 

 

 

 

 

 

 

7,984

 

 

 

 

 

Less: Gain on Visa, Inc. Class B common stock, net of tax

 

 

 

 

 

 

 

4,058

 

 

 

 

 

 

4,058

 

 

Adjusted operating earnings (non-GAAP)

 

 

70,525

 

 

 

58,070

 

 

56,784

 

 

 

230,879

 

 

 

285,174

 

 

Less: Dividends on preferred stock

 

 

2,967

 

 

 

2,967

 

 

2,967

 

 

 

11,868

 

 

 

11,868

 

 

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

 

$

67,558

 

 

$

55,103

 

$

53,817

 

 

$

219,011

 

 

$

273,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

99,790

 

 

$

99,923

 

$

119,944

 

 

$

403,802

 

 

$

419,195

 

 

Less: Amortization of intangible assets

 

 

2,381

 

 

 

2,480

 

 

3,225

 

 

 

10,815

 

 

 

13,904

 

 

Less: Losses related to balance sheet repositioning

 

 

 

 

 

 

 

 

 

 

 

 

 

14,695

 

 

Less: Branch closing and facility consolidation costs

 

 

 

 

 

 

 

16,536

 

 

 

5,508

 

 

 

17,437

 

 

Adjusted operating noninterest expense (non-GAAP)

 

$

97,409

 

 

$

97,443

 

$

100,183

 

 

$

387,479

 

 

$

373,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

24,500

 

 

$

25,584

 

$

36,417

 

 

$

118,523

 

 

$

125,806

 

 

Less: (Loss) gain on sale of securities

 

 

(1

)

 

 

 

 

 

 

 

(3

)

 

 

87

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

9,082

 

 

 

 

 

Less: Gain on Visa, Inc. Class B common stock

 

 

 

 

 

 

 

5,137

 

 

 

 

 

 

5,137

 

 

Adjusted operating noninterest income (non-GAAP)

 

$

24,501

 

 

$

25,584

 

$

31,280

 

 

$

109,444

 

 

$

120,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

167,966

 

 

$

154,557

 

$

141,555

 

 

$

599,134

 

 

$

563,851

 

 

Adjusted operating noninterest income (non-GAAP)

 

 

24,501

 

 

 

25,584

 

 

31,280

 

 

 

109,444

 

 

 

120,582

 

 

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

 

$

192,467

 

 

$

180,141

 

$

172,835

 

 

$

708,578

 

 

$

684,433

 

 

Less: PPP accretion interest income and fees

 

 

20

 

 

 

454

 

 

11,412

 

 

 

4,806

 

 

 

48,218

 

 

Pre-PPP total adjusted revenue (FTE) (non-GAAP) (1) (10)

 

$

192,447

 

 

$

179,687

 

$

161,423

 

 

$

703,772

 

 

$

636,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

52.98

 

%

 

56.68

%

 

68.64

 

%

 

57.46

 

%

 

61.91

 

%

Efficiency ratio (FTE) (1)

 

 

51.85

 

%

 

55.47

%

 

67.39

 

%

 

56.27

 

%

 

60.78

 

%

Adjusted operating efficiency ratio (FTE) (1)(7)

 

 

50.61

 

%

 

54.09

%

 

57.96

 

%

 

54.68

 

%

 

54.52

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROA & ROE (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating earnings (non-GAAP)

 

$

70,525

 

 

$

58,070

 

$

56,784

 

 

$

230,879

 

 

$

285,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets (GAAP)

 

$

20,174,152

 

 

$

19,980,500

 

$

20,236,889

 

 

$

19,949,388

 

 

$

19,977,551

 

 

Return on average assets (ROA) (GAAP)

 

 

1.39

 

%

 

1.15

%

 

0.94

 

%

 

1.18

 

%

 

1.32

 

%

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

 

 

1.39

 

%

 

1.15

%

 

1.11

 

%

 

1.16

 

%

 

1.43

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity (GAAP)

 

$

2,321,208

 

 

$

2,436,999

 

$

2,715,610

 

 

$

2,465,049

 

 

$

2,725,330

 

 

Return on average equity (ROE) (GAAP)

 

 

12.05

 

%

 

9.45

%

 

6.98

 

%

 

9.51

 

%

 

9.68

 

%

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

 

 

12.05

 

%

 

9.45

%

 

8.30

 

%

 

9.37

 

%

 

10.46

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ROTCE (2)(3)(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

67,558

 

 

$

55,103

 

$

53,817

 

 

$

219,011

 

 

$

273,306

 

 

Plus: Amortization of intangibles, tax effected

 

 

1,881

 

 

 

1,959

 

 

2,548

 

 

 

8,544

 

 

 

10,984

 

 

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

 

$

69,439

 

 

$

57,062

 

$

56,365

 

 

$

227,555

 

 

$

284,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity (non-GAAP)

 

$

1,201,732

 

 

$

1,315,085

 

$

1,568,828

 

 

$

1,333,751

 

 

$

1,573,415

 

 

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

 

 

22.92

 

%

 

17.21

%

 

14.25

 

%

 

17.06

 

%

 

18.07

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax pre-provision adjusted operating earnings (8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

70,524

 

 

$

58,070

 

$

47,779

 

 

$

234,510

 

 

$

263,917

 

 

Plus: Provision for credit losses

 

 

6,257

 

 

 

6,412

 

 

(1,000

)

 

 

19,028

 

 

 

(60,888

)

 

Plus: Income tax expense

 

 

11,777

 

 

 

11,894

 

 

8,021

 

 

 

45,444

 

 

 

54,842

 

 

Plus: Net loss related to balance sheet repositioning

 

 

 

 

 

 

 

 

 

 

 

 

 

14,695

 

 

Plus: Branch closing and facility consolidation costs

 

 

 

 

 

 

 

16,536

 

 

 

5,508

 

 

 

17,437

 

 

Less: (Loss) gain on sale of securities

 

 

(1

)

 

 

 

 

 

 

 

(3

)

 

 

87

 

 

Less: Gain on sale of DHFB

 

 

 

 

 

 

 

 

 

 

9,082

 

 

 

 

 

Less: Gain on Visa, Inc. Class B common stock

 

 

 

 

 

 

 

5,137

 

 

 

 

 

 

5,137

 

 

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

 

$

88,559

 

 

$

76,376

 

$

66,199

 

 

$

295,411

 

 

$

284,779

 

 

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)

 

$

85,592

 

 

$

73,409

 

$

63,232

 

 

$

283,543

 

 

$

272,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

88,559

 

 

$

76,376

 

$

66,199

 

 

$

295,411

 

 

$

284,779

 

 

Less: PPP accretion interest income and fees

 

 

20

 

 

 

454

 

 

11,412

 

 

 

4,806

 

 

 

48,218

 

 

Pre-PPP pre-tax pre-provision adjusted operating earnings (non-GAAP) (10)

 

$

88,539

 

 

$

75,922

 

$

54,787

 

 

$

290,605

 

 

$

236,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, diluted

 

 

74,713,972

 

 

 

74,705,054

 

 

75,667,759

 

 

 

74,953,398

 

 

 

77,417,801

 

 

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

 

$

1.15

 

 

$

0.98

 

$

0.84

 

 

$

3.78

 

 

$

3.53

 

 

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

 

 

 

12/31/22

 

09/30/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

 

Adjusted Loans (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment (net of deferred fees and costs) (GAAP)

 

$

14,449,142

 

$

13,918,720

 

$

13,195,843

 

$

14,449,142

 

$

13,195,843

 

Less: PPP loans (net of deferred fees and costs)

 

 

7,286

 

 

12,146

 

 

150,363

 

 

7,286

 

 

150,363

 

Total adjusted loans (non-GAAP)

 

$

14,441,856

 

$

13,906,574

 

$

13,045,480

 

$

14,441,856

 

$

13,045,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans held for investment (net of deferred fees and costs) (GAAP)

 

$

14,117,433

 

$

13,733,447

 

$

13,082,412

 

$

13,671,714

 

$

13,639,325

 

Less: Average PPP loans (net of deferred fees and costs)

 

 

8,217

 

 

14,280

 

 

288,204

 

 

41,896

 

 

864,814

 

Total adjusted average loans (non-GAAP)

 

$

14,109,216

 

$

13,719,167

 

$

12,794,208

 

$

13,629,818

 

$

12,774,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Origination Held for Sale Volume

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinance Volume

 

$

2,312

 

$

5,637

 

$

46,575

 

$

55,725

 

$

287,976

 

Purchase Volume

 

 

29,262

 

 

66,360

 

 

71,969

 

 

238,310

 

 

322,492

 

Total Mortgage loan originations held for sale

 

$

31,574

 

$

71,997

 

$

118,544

 

$

294,035

 

$

610,468

 

% of originations held for sale that are refinances

 

 

7.3

%

 

7.8

%

 

39.3

%

 

19.0

%

 

47.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under management ("AUM")

 

$

4,271,728

 

$

4,065,059

 

$

6,741,022

 

$

4,271,728

 

$

6,741,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of period full-time employees

 

 

1,877

 

 

1,890

 

 

1,876

 

 

1,877

 

 

1,876

 

Number of full-service branches

 

 

114

 

 

114

 

 

130

 

 

114

 

 

130

 

Number of automatic transaction machines ("ATMs")

 

 

131

 

 

131

 

 

148

 

 

131

 

 

148

 

_________________________

(1)

These are non-GAAP financial measures. 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 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 losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”), as well as strategic branch closure initiatives and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(5)

All ratios at December 31, 2022 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 Coronavirus Aid, Relief, and Economic Security Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans made between March 1, 2020 and January 1, 2022.

(7)

The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of DHFB, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), as well as strategic branch closure initiatives and related facility consolidation costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(8)

These are non-GAAP financial measures. 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, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of DHFB, as well as strategic branch closure initiatives and related facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(9)

These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. 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 a 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)

These are non-GAAP financial measures. The Company believes excluding PPP accretion interest income and fees from operating earnings is useful to investors as it provides more clarity on the Company’s non-PPP related income.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

 

2022

 

 

2022

 

 

2021

 

ASSETS

 

(unaudited)

 

 

(unaudited)

 

 

(audited)

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

216,384

 

 

$

177,969

 

 

$

180,963

 

Interest-bearing deposits in other banks

 

102,107

 

 

 

211,785

 

 

 

618,714

 

Federal funds sold

 

1,457

 

 

 

1,188

 

 

 

2,824

 

Total cash and cash equivalents

 

319,948

 

 

 

390,942

 

 

 

802,501

 

Securities available for sale, at fair value

 

2,741,816

 

 

 

2,717,323

 

 

 

3,481,650

 

Securities held to maturity, at carrying value

 

847,732

 

 

 

841,349

 

 

 

628,000

 

Restricted stock, at cost

 

120,213

 

 

 

82,050

 

 

 

76,825

 

Loans held for sale, at fair value

 

3,936

 

 

 

12,889

 

 

 

20,861

 

Loans held for investment, net of deferred fees and costs

 

14,449,142

 

 

 

13,918,720

 

 

 

13,195,843

 

Less: allowance for loan and lease losses

 

110,768

 

 

 

108,009

 

 

 

99,787

 

Total loans held for investment, net

 

14,338,374

 

 

 

13,810,711

 

 

 

13,096,056

 

Premises and equipment, net

 

118,243

 

 

 

126,374

 

 

 

134,808

 

Goodwill

 

925,211

 

 

 

925,211

 

 

 

935,560

 

Amortizable intangibles, net

 

26,761

 

 

 

29,142

 

 

 

43,312

 

Bank owned life insurance

 

440,656

 

 

 

437,988

 

 

 

431,517

 

Other assets

 

578,248

 

 

 

576,252

 

 

 

413,706

 

Total assets

$

20,461,138

 

 

$

19,950,231

 

 

$

20,064,796

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

4,883,239

 

 

$

5,290,938

 

 

$

5,207,324

 

Interest-bearing deposits

 

11,048,438

 

 

 

11,255,278

 

 

 

11,403,744

 

Total deposits

 

15,931,677

 

 

 

16,546,216

 

 

 

16,611,068

 

Securities sold under agreements to repurchase

 

142,837

 

 

 

146,182

 

 

 

117,870

 

Other short-term borrowings

 

1,176,000

 

 

 

133,800

 

 

 

 

Long-term borrowings

 

389,863

 

 

 

389,576

 

 

 

388,724

 

Other liabilities

 

448,024

 

 

 

453,307

 

 

 

237,063

 

Total liabilities

 

18,088,401

 

 

 

17,669,081

 

 

 

17,354,725

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Preferred stock, $10.00 par value

 

173

 

 

 

173

 

 

 

173

 

Common stock, $1.33 par value

 

98,873

 

 

 

98,845

 

 

 

100,101

 

Additional paid-in capital

 

1,772,440

 

 

 

1,769,858

 

 

 

1,807,368

 

Retained earnings

 

919,537

 

 

 

874,393

 

 

 

783,794

 

Accumulated other comprehensive income (loss)

 

(418,286

)

 

 

(462,119

)

 

 

18,635

 

Total stockholders' equity

 

2,372,737

 

 

 

2,281,150

 

 

 

2,710,071

 

Total liabilities and stockholders' equity

$

20,461,138

 

 

$

19,950,231

 

 

$

20,064,796

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

74,712,622

 

 

 

74,703,774

 

 

 

75,663,648

 

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,

 

2022

 

2022

 

2021

 

2022

 

2021

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(audited)

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

173,475

 

$

144,673

 

$

125,195

 

 

$

555,614

 

$

508,770

 

Interest on deposits in other banks

 

1,383

 

 

941

 

 

401

 

 

 

2,612

 

 

855

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

16,196

 

 

14,750

 

 

11,757

 

 

 

59,306

 

 

43,859

 

Nontaxable

 

11,014

 

 

10,792

 

 

10,103

 

 

 

42,903

 

 

38,875

 

Total interest and dividend income

 

202,068

 

 

171,156

 

 

147,456

 

 

 

660,435

 

 

592,359

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

30,236

 

 

15,386

 

 

4,915

 

 

 

56,201

 

 

27,117

 

Interest on short-term borrowings

 

3,588

 

 

1,229

 

 

17

 

 

 

5,393

 

 

108

 

Interest on long-term borrowings

 

4,396

 

 

3,826

 

 

4,197

 

 

 

14,580

 

 

13,874

 

Total interest expense

 

38,220

 

 

20,441

 

 

9,129

 

 

 

76,174

 

 

41,099

 

Net interest income

 

163,848

 

 

150,715

 

 

138,327

 

 

 

584,261

 

 

551,260

 

Provision for credit losses

 

6,257

 

 

6,412

 

 

(1,000

)

 

 

19,028

 

 

(60,888

)

Net interest income after provision for credit losses

 

157,591

 

 

144,303

 

 

139,327

 

 

 

565,233

 

 

612,148

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

7,631

 

 

6,784

 

 

7,808

 

 

 

30,052

 

 

27,122

 

Other service charges, commissions and fees

 

1,631

 

 

1,770

 

 

1,625

 

 

 

6,765

 

 

6,595

 

Interchange fees

 

2,571

 

 

2,461

 

 

2,027

 

 

 

9,110

 

 

8,279

 

Fiduciary and asset management fees

 

4,085

 

 

4,134

 

 

7,239

 

 

 

22,414

 

 

27,562

 

Mortgage banking income

 

379

 

 

1,390

 

 

3,330

 

 

 

7,085

 

 

21,022

 

Bank owned life insurance income

 

2,649

 

 

3,445

 

 

3,286

 

 

 

11,507

 

 

11,488

 

Loan-related interest rate swap fees

 

3,664

 

 

2,050

 

 

1,443

 

 

 

12,174

 

 

5,620

 

Other operating income

 

1,890

 

 

3,550

 

 

9,659

 

 

 

19,416

 

 

18,118

 

Total noninterest income

 

24,500

 

 

25,584

 

 

36,417

 

 

 

118,523

 

 

125,806

 

Noninterest expenses: