Exhibit 99.1

Graphic

Contact:              Robert M. Gorman - (804) 523-7828

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS SECOND QUARTER FINANCIAL RESULTS

Richmond, Va., July 25, 2023 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $52.3 million and basic and diluted earnings per common share of $0.70 for the second quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $55.4 million and adjusted diluted operating earnings per common share(1) of $0.74 for the second quarter of 2023.

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

“Atlantic Union delivered strong second quarter financial results despite the turmoil in the banking industry during the first half of the year,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Loan growth remained strong and deposit levels were stable during the quarter. We believe that our model of a diversified, traditional, full-service bank that delivers the products and services that our customers want and need combined with local decision making, responsiveness and client service orientation positively sets us apart from other banks, both larger and smaller, in these challenging times.”

“Operating under the mantra of soundness, profitability and growth – in that order of priority – Atlantic Union remains committed to generating sustainable, profitable growth and building long term value for our shareholders.”

NET INTEREST INCOME

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


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

Loan

Deposit 

Borrowings

    

Accretion

    

Amortization

    

Amortization

    

Total

For the quarter ended March 31, 2023

$

1,106

$

(14)

$

(209)

$

883

For the quarter ended June 30, 2023

1,073

(7)

(213)

853

ASSET QUALITY

Overview

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

Nonperforming Assets

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

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

    

June 30, 

2023

2023

2022

2022

2022

Nonaccrual loans

$

29,105

$

29,082

$

27,038

$

26,500

$

29,070

Foreclosed properties

 

50

 

29

 

76

 

2,087

 

2,065

Total nonperforming assets

$

29,155

$

29,111

$

27,114

$

28,587

$

31,135

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

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

    

June 30, 

2023

2023

2022

2022

2022

Beginning Balance

$

29,082

$

27,038

$

26,500

$

29,070

$

29,032

Net customer payments

 

(5,950)

 

(1,755)

 

(1,805)

 

(3,725)

 

(2,472)

Additions

 

6,685

 

4,151

 

2,935

 

1,302

 

3,203

Charge-offs

 

(712)

 

(39)

 

(461)

 

(125)

 

(311)

Loans returning to accruing status

 

 

(313)

 

(131)

 

 

Transfers to foreclosed property

 

 

 

 

(22)

 

(382)

Ending Balance

$

29,105

$

29,082

$

27,038

$

26,500

$

29,070

Past Due Loans

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

Allowance for Credit Losses

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

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


Net Charge-offs

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

Provision for Credit Losses

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

NONINTEREST INCOME

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

NONINTEREST EXPENSE

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

INCOME TAXES

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

BALANCE SHEET

At June 30, 2023, total assets were $20.6 billion, an increase of $499.0 million or approximately 10.0% (annualized)

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

At June 30, 2023, LHFI (net of deferred fees and costs) totaled $15.1 billion, an increase of $482.7 million or 13.3% (annualized) from $14.6 billion at March 31, 2023. Average LHFI (net of deferred fees and costs) totaled $14.7 billion at


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

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

At June 30, 2023, total deposits were $16.4 billion, a decrease of $43.9 million or approximately 1.1% (annualized) from March 31, 2023. Average deposits at June 30, 2023 decreased from the prior quarter by $137.1 million or 3.3% (annualized). Total deposits decreased from the prior quarter due to the impact of customer behavior in response to inflation and higher market interest rates, resulting in a decrease in low costing customer deposits, partially offset by an increase in customer time deposits and brokered deposits. Total deposits at June 30, 2023 increased $283.4 million or 1.8% from June 30, 2022, and quarterly average deposits at June 30, 2023 increased $89.1 million or 0.6% from the same period in the prior year. Total deposits increased from the same period in the prior year primarily due to increases in interest bearing customer deposits and brokered deposits, partially offset by decreases in demand deposits.

At June 30, 2023, total borrowings were $1.3 billion, an increase of $521.4 million from March 31, 2023 and an increase of $522.4 million from June 30, 2022. Total borrowings increased from the prior quarter and prior year primarily due to an increase in Federal Home Loan Bank short-term borrowings, which was used to fund loan growth.

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

    

June 30, 

    

March 31, 

    

June 30, 

 

2023

2023

2022

 

Common equity Tier 1 capital ratio (2)

 

9.86

%  

9.91

%  

9.96

%

Tier 1 capital ratio (2)

 

10.81

%  

10.89

%  

11.00

%

Total capital ratio (2)

 

13.64

%  

13.76

%  

13.86

%

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

 

9.64

%  

9.38

%  

9.26

%

Common equity to total assets

 

10.96

%  

11.31

%  

11.32

%

Tangible common equity to tangible assets (1)

 

6.66

%  

6.91

%  

6.78

%


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

During the second quarter of 2023, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the first quarter of 2023 and the second quarter of 2022. During the second quarter of 2023, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the first quarter of 2023 and an increase of $0.02 or approximately 7.1% from the second quarter of 2022.



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

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

ANNOUNCED TRANSACTION

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

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and approximately 125 ATMs located throughout Virginia and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

SECOND QUARTER 2023 EARNINGS RELEASE CONFERENCE CALL

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

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

https://edge.media-server.com/mmc/p/g5jw6mu3.

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

https://register.vevent.com/register/BI1a5d16a5982740369c57e980002f5ab6. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

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

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the period ended June 30, 2023, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”


FORWARD-LOOKING STATEMENTS

This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base, the impact of future economic conditions, the impact of cost saving measures, and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of or changes in:

market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs and our loan and securities portfolios;
inflation and its impacts on economic growth and customer and client behavior;
adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior;
the sufficiency of liquidity;
general economic and financial market conditions, in the United States generally and particularly in the markets in which we operate and which our loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
the quality or composition of our loan or investment portfolios and changes therein;
demand for loan products and financial services in our market areas;
our ability to manage our growth or implement our growth strategy;
the effectiveness of expense reduction plans;
the introduction of new lines of business or new products and services;
our ability to recruit and retain key employees;
real estate values in our lending area;
changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements;
an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors;
our liquidity and capital positions;
concentrations of loans secured by real estate, particularly commercial real estate;
the effectiveness of our credit processes and management of our credit risk;
our ability to compete in the market for financial services and increased competition from fintech companies;
technological risks and developments, and cyber threats, attacks, or events;
operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;
the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for the our loans or our

other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on our liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of our business operations and on financial markets and economic growth;
the discontinuation of LIBOR and its impact on the financial markets, and our ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
performance by our counterparties or vendors;
deposit flows;
the availability of financing and the terms thereof;
the level of prepayments on loans and mortgage-backed securities;
legislative or regulatory changes and requirements;
actual or potential claims, damages, and fines related to litigation or government actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
the effects of changes in federal, state or local tax laws and regulations;
any event or development that would cause us to conclude that there was an impairment of any asset, including intangible assets, such as goodwill;
other factors, many of which are beyond our control; and
the risks, uncertainties and assumptions set forth under the heading “Caution About Forward-Looking Statements” in the joint press release issued by the Company and American National on the date hereof with respect to the proposed merger transaction between the Company and American National.

Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2022, Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/23

    

03/31/23

    

06/30/22

 

06/30/23

06/30/22

Results of Operations

Interest and dividend income

$

230,247

$

217,546

$

148,755

$

447,793

$

287,212

Interest expense

 

78,163

 

64,103

 

9,988

 

142,265

 

17,514

Net interest income

 

152,084

 

153,443

 

138,767

 

305,528

 

269,698

Provision for credit losses

 

6,069

 

11,850

 

3,559

 

17,920

 

6,359

Net interest income after provision for credit losses

 

146,015

 

141,593

 

135,208

 

287,608

 

263,339

Noninterest income

 

24,197

 

9,628

 

38,286

 

33,824

 

68,439

Noninterest expenses

 

105,661

 

108,274

 

98,768

 

213,934

 

204,089

Income before income taxes

 

64,551

 

42,947

 

74,726

 

107,498

 

127,689

Income tax expense

 

9,310

 

7,294

 

12,500

 

16,604

 

21,773

Net income

 

55,241

 

35,653

 

62,226

 

90,894

 

105,916

Dividends on preferred stock

2,967

2,967

2,967

5,934

5,934

Net income available to common shareholders

$

52,274

$

32,686

$

59,259

$

84,960

$

99,982

Interest earned on earning assets (FTE) (1)

$

233,913

$

221,334

$

152,332

$

455,248

$

294,124

Net interest income (FTE) (1)

 

155,750

 

157,231

 

142,344

 

312,983

 

276,610

Total revenue (FTE) (1)

179,947

166,859

180,630

346,807

345,049

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

74,553

73,197

69,205

147,751

130,476

Key Ratios

Earnings per common share, diluted

$

0.70

$

0.44

$

0.79

$

1.13

$

1.33

Return on average assets (ROA)

 

1.10

%  

 

0.71

%  

 

1.27

%

 

0.90

%  

 

1.08

%

Return on average equity (ROE)

 

9.00

%  

 

5.97

%  

 

10.21

%

 

7.51

%  

 

8.37

%

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

 

16.11

%  

 

10.71

%  

 

18.93

%

 

13.46

%  

 

14.97

%

Efficiency ratio

 

59.94

%  

 

66.40

%  

 

55.78

%

 

63.04

%  

 

60.36

%

Efficiency ratio (FTE) (1)

58.72

%  

 

64.89

%  

 

54.68

%

 

61.69

%  

 

59.15

%

Net interest margin

 

3.37

%  

 

3.41

%  

 

3.15

%

 

3.39

%  

 

3.06

%

Net interest margin (FTE) (1)

 

3.45

%  

 

3.50

%  

 

3.24

%

 

3.47

%  

 

3.14

%

Yields on earning assets (FTE) (1)

 

5.19

%  

 

4.92

%  

 

3.46

%

 

5.05

%  

 

3.34

%

Cost of interest-bearing liabilities

 

2.42

%  

 

2.02

%  

 

0.35

%

 

2.22

%  

 

0.30

%

Cost of deposits

 

1.61

%  

 

1.28

%  

 

0.15

%

 

1.44

%  

 

0.13

%

Cost of funds

 

1.74

%  

 

1.42

%  

 

0.22

%

 

1.58

%  

 

0.20

%

Operating Measures (4)

Adjusted operating earnings

$

58,348

$

50,189

$

54,244

$

108,537

$

102,285

Adjusted operating earnings available to common shareholders

55,381

47,222

51,277

102,603

96,351

Adjusted operating earnings per common share, diluted

$

0.74

$

0.63

$

0.69

$

1.37

$

1.28

Adjusted operating ROA

 

1.16

%  

 

1.00

%  

 

1.10

%

 

1.08

%  

 

1.04

%

Adjusted operating ROE

 

9.51

%  

 

8.40

%  

 

8.90

%

8.96

%  

 

8.08

%

Adjusted operating ROTCE (2) (3)

 

17.03

%  

 

15.22

%  

 

16.47

%

 

16.14

%  

 

14.45

%

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

 

55.30

%  

 

56.03

%  

 

55.88

%

 

55.66

%  

 

57.34

%

Per Share Data

Earnings per common share, basic

$

0.70

$

0.44

$

0.79

$

1.13

$

1.33

Earnings per common share, diluted

 

0.70

 

0.44

 

0.79

 

1.13

 

1.33

Cash dividends paid per common share

 

0.30

 

0.30

 

0.28

 

0.60

 

0.56

Market value per share

 

25.95

 

35.05

 

33.92

 

25.95

 

33.92

Book value per common share

 

30.31

 

30.53

 

29.95

 

30.31

 

29.95

Tangible book value per common share (2)

 

17.58

 

17.78

 

17.07

 

17.58

 

17.07

Price to earnings ratio, diluted

 

9.28

 

19.77

 

10.68

 

11.35

 

12.65

Price to book value per common share ratio

 

0.86

 

1.15

 

1.13

 

0.86

 

1.13

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

 

1.48

 

1.97

 

1.99

 

1.48

 

1.99

Weighted average common shares outstanding, basic

 

74,995,450

 

74,832,141

 

74,847,899

 

74,914,247

 

75,194,347

Weighted average common shares outstanding, diluted

 

74,995,557

 

74,835,514

 

74,849,871

 

74,915,977

 

75,201,326

Common shares outstanding at end of period

 

74,998,075

 

74,989,228

 

74,688,314

 

74,998,075

 

74,688,314


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/23

    

03/31/23

    

06/30/22

 

06/30/23

06/30/22

 

Capital Ratios

 

Common equity Tier 1 capital ratio (5)

 

9.86

%  

9.91

%  

9.96

%

9.86

%  

9.96

%

Tier 1 capital ratio (5)

 

10.81

%  

10.89

%  

11.00

%

10.81

%  

11.00

%

Total capital ratio (5)

 

13.64

%  

13.76

%  

13.86

%

13.64

%  

13.86

%

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

 

9.64

%  

9.38

%  

9.26

%

9.64

%  

9.26

%

Common equity to total assets

 

10.96

%  

11.31

%  

11.32

%

10.96

%  

11.32

%

Tangible common equity to tangible assets (2)

 

6.66

%  

6.91

%  

6.78

%

6.66

%  

6.78

%

Financial Condition

 

  

 

  

 

  

  

 

  

Assets

$

20,602,332

$

20,103,370

$

19,661,799

$

20,602,332

$

19,661,799

LHFI (net of deferred fees and costs)

 

15,066,930

 

14,584,280

 

13,655,408

 

15,066,930

 

13,655,408

Securities

 

3,143,236

 

3,195,399

 

3,820,078

 

3,143,236

 

3,820,078

Earning Assets

 

18,452,007

 

17,984,057

 

17,578,979

 

18,452,007

 

17,578,979

Goodwill

 

925,211

 

925,211

 

925,211

 

925,211

 

925,211

Amortizable intangibles, net

 

23,469

 

24,482

 

31,621

 

23,469

 

31,621

Deposits

 

16,411,987

 

16,455,910

 

16,128,635

 

16,411,987

 

16,128,635

Borrowings

 

1,320,301

 

798,910

 

797,948

 

1,320,301

 

797,948

Stockholders' equity

 

2,424,470

 

2,440,236

 

2,391,476

 

2,424,470

 

2,391,476

Tangible common equity (2)

 

1,309,433

 

1,324,186

 

1,268,287

 

1,309,433

 

1,268,287

LHFI, net of deferred fees and costs

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

1,231,720

$

1,179,872

$

988,379

$

1,231,720

$

988,379

Commercial real estate - owner occupied

 

1,952,189

 

1,956,585

 

1,965,702

 

1,952,189

 

1,965,702

Commercial real estate - non-owner occupied

 

4,113,318

 

3,968,085

 

3,860,819

 

4,113,318

 

3,860,819

Multifamily real estate

 

788,895

 

822,006

 

762,502

 

788,895

 

762,502

Commercial & Industrial

 

3,373,148

 

3,082,478

 

2,595,891

 

3,373,148

 

2,595,891

Residential 1-4 Family - Commercial

 

518,317

 

522,760

 

553,771

 

518,317

 

553,771

Residential 1-4 Family - Consumer

 

1,017,698

 

974,511

 

865,174

 

1,017,698

 

865,174

Residential 1-4 Family - Revolving

 

600,339

 

589,791

 

583,073

 

600,339

 

583,073

Auto

 

585,756

 

600,658

 

525,301

 

585,756

 

525,301

Consumer

 

134,709

 

145,090

 

180,045

 

134,709

 

180,045

Other Commercial

 

750,841

 

742,444

 

774,751

 

750,841

 

774,751

Total LHFI

$

15,066,930

$

14,584,280

$

13,655,408

$

15,066,930

$

13,655,408

Deposits

 

  

 

  

 

  

 

  

 

  

Interest checking accounts

$

4,824,192

$

4,714,366

$

3,943,303

$

4,824,192

$

3,943,303

Money market accounts

 

3,413,936

 

3,547,514

 

3,956,046

 

3,413,936

 

3,956,046

Savings accounts

 

986,081

 

1,047,914

 

1,165,577

 

986,081

 

1,165,577

Customer time deposits of $250,000 and over

 

578,739

 

541,447

 

335,706

 

578,739

 

335,706

Other customer time deposits

1,813,031

1,648,747

1,308,493

1,813,031

1,308,493

Time deposits

 

2,391,770

 

2,190,194

 

1,644,199

 

2,391,770

 

1,644,199

Total interest-bearing customer deposits

11,615,979

11,499,988

10,709,125

11,615,979

10,709,125

Brokered deposits

485,702

377,913

57,972

485,702

57,972

Total interest-bearing deposits

$

12,101,681

$

11,877,901

$

10,767,097

$

12,101,681

$

10,767,097

Demand deposits

 

4,310,306

 

4,578,009

 

5,361,538

 

4,310,306

 

5,361,538

Total deposits

$

16,411,987

$

16,455,910

$

16,128,635

$

16,411,987

$

16,128,635

Averages

 

  

 

  

 

  

 

  

 

  

Assets

$

20,209,687

$

20,384,351

$

19,719,402

$

20,296,536

$

19,819,330

LHFI (net of deferred fees and costs)

 

14,746,218

 

14,505,611

 

13,525,529

 

14,626,579

 

13,413,780

Loans held for sale

 

14,413

 

5,876

 

20,634

 

10,168

 

17,652

Securities

 

3,176,662

 

3,467,561

 

3,930,912

 

3,321,308

 

4,064,007

Earning assets

 

18,091,809

 

18,238,088

 

17,646,470

 

18,164,545

 

17,765,085

Deposits

 

16,280,154

 

16,417,212

 

16,191,056

 

16,348,304

 

16,351,822

Time deposits

 

2,500,966

 

2,291,530

 

1,667,378

 

2,396,827

 

1,716,743

Interest-bearing deposits

 

11,903,004

 

11,723,865

 

10,824,465

 

11,813,929

 

11,054,095

Borrowings

 

1,071,171

 

1,122,244

 

765,886

 

1,096,567

 

639,506

Interest-bearing liabilities

 

12,974,175

 

12,846,109

 

11,590,351

 

12,910,496

 

11,693,601

Stockholders' equity

 

2,460,741

 

2,423,600

 

2,445,045

 

2,442,273

 

2,552,418

Tangible common equity (2)

 

1,345,426

 

1,306,445

 

1,304,536

 

1,326,043

 

1,410,342


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/23

    

03/31/23

    

06/30/22

 

06/30/23

06/30/22

 

Asset Quality

 

Allowance for Credit Losses (ACL)

 

  

 

  

 

  

  

 

  

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

$

116,512

$

110,768

$

102,591

$

110,768

$

99,787

Add: Recoveries

 

1,035

 

1,167

 

1,018

 

2,202

 

2,531

Less: Charge-offs

 

2,602

 

5,726

 

1,957

 

8,328

 

3,466

Add: Provision for loan losses

 

5,738

 

10,303

 

2,532

 

16,041

 

5,332

Ending balance, ALLL

$

120,683

$

116,512

$

104,184

$

120,683

$

104,184

Beginning balance, Reserve for unfunded commitment (RUC)

$

15,199

$

13,675

$

8,000

$

13,675

$

8,000

Add: Provision for unfunded commitments

349

1,524

1,000

1,873

1,000

Ending balance, RUC

$

15,548

$

15,199

$

9,000

$

15,548

$

9,000

Total ACL

$

136,231

$

131,711

$

113,184

$

136,231

$

113,184

ACL / total LHFI

0.90

%  

0.90

%  

0.83

%

0.90

%  

0.83

%

ALLL / total LHFI

 

0.80

%  

 

0.80

%  

 

0.76

%

 

0.80

%  

 

0.76

%

Net charge-offs / total average LHFI

 

0.04

%  

 

0.13

%  

 

0.03

%

 

0.08

%  

 

0.01

%

Provision for loan losses/ total average LHFI

 

0.16

%  

 

0.29

%  

 

0.08

%

 

0.22

%  

 

0.08

%

Nonperforming Assets

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

284

$

363

$

581

$

284

$

581

Commercial real estate - owner occupied

 

3,978

 

6,174

 

4,996

 

3,978

 

4,996

Commercial real estate - non-owner occupied

 

6,473

 

1,481

 

3,301

 

6,473

 

3,301

Commercial & Industrial

 

2,738

 

4,815

 

2,728

 

2,738

 

2,728

Residential 1-4 Family - Commercial

 

1,844

 

1,907

 

2,031

 

1,844

 

2,031

Residential 1-4 Family - Consumer

 

10,033

 

10,540

 

12,084

 

10,033

 

12,084

Residential 1-4 Family - Revolving

 

3,461

 

3,449

 

3,069

 

3,461

 

3,069

Auto

 

291

 

347

 

279

 

291

 

279

Consumer

3

6

1

3

1

Nonaccrual loans

$

29,105

$

29,082

$

29,070

$

29,105

$

29,070

Foreclosed property

 

50

 

29

 

2,065

 

50

 

2,065

Total nonperforming assets (NPAs)

$

29,155

$

29,111

$

31,135

$

29,155

$

31,135

Construction and land development

$

24

$

249

$

1

$

24

$

1

Commercial real estate - owner occupied

 

2,463

 

2,133

 

792

 

2,463

 

792

Commercial real estate - non-owner occupied

2,763

1,032

642

2,763

642

Commercial & Industrial

 

810

 

633

 

322

 

810

 

322

Residential 1-4 Family - Commercial

 

693

 

232

 

184

 

693

 

184

Residential 1-4 Family - Consumer

 

1,716

 

859

 

1,112

 

1,716

 

1,112

Residential 1-4 Family - Revolving

 

1,259

 

1,766

 

997

 

1,259

 

997

Auto

 

243

 

137

 

134

 

243

 

134

Consumer

 

74

 

137

 

79

 

74

 

79

Other Commercial

66

66

329

66

329

LHFI ≥ 90 days and still accruing

$

10,111

$

7,244

$

4,592

$

10,111

$

4,592

Total NPAs and LHFI ≥ 90 days

$

39,266

$

36,355

$

35,727

$

39,266

$

35,727

NPAs / total LHFI

0.19

%  

 

0.20

%  

 

0.23

%

 

0.19

%  

 

0.23

%

NPAs / total assets

 

0.14

%  

 

0.14

%  

 

0.16

%

 

0.14

%  

 

0.16

%

ALLL / nonaccrual loans

 

414.65

%  

 

400.63

%  

 

358.39

%

 

414.65

%  

 

358.39

%

ALLL/ nonperforming assets

 

413.94

%  

 

400.23

%  

 

334.62

%

 

413.94

%  

 

334.62

%


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/23

    

03/31/23

    

06/30/22

 

06/30/23

06/30/22

 

Past Due Detail

 

Construction and land development

$

295

$

815

$

645

$

295

$

645

Commercial real estate - owner occupied

 

602

 

2,251

 

1,374

 

602

 

1,374

Commercial real estate - non-owner occupied

 

 

52

 

511

 

 

511

Commercial & Industrial

 

254

 

981

 

2,581

 

254

 

2,581

Residential 1-4 Family - Commercial

 

1,076

 

1,399

 

1,944

 

1,076

 

1,944

Residential 1-4 Family - Consumer

 

1,504

 

11,579

 

594

 

1,504

 

594

Residential 1-4 Family - Revolving

 

1,729

 

1,384

 

1,368

 

1,729

 

1,368

Auto

 

2,877

 

2,026

 

1,841

 

2,877

 

1,841

Consumer

334

295

361

334

361

Other Commercial

23

11

23

11

LHFI 30-59 days past due

$

8,694

$

20,782

$

11,230

$

8,694

$

11,230

Commercial real estate - owner occupied

 

10

 

798

 

807

 

10

 

807

Commercial & Industrial

 

400

 

61

 

546

 

400

 

546

Residential 1-4 Family - Commercial

 

189

 

271

 

474

 

189

 

474

Residential 1-4 Family - Consumer

 

2,813

 

158

 

1,646

 

2,813

 

1,646

Residential 1-4 Family - Revolving

 

1,114

 

1,069

 

731

 

1,114

 

731

Auto

 

564

 

295

 

213

 

564

 

213

Consumer

214

176

210

214

210

LHFI 60-89 days past due

$

5,304

$

2,828

$

4,627

$

5,304

$

4,627

Past Due and still accruing

$

24,109

$

30,854

$

20,449

$

24,109

$

20,449

Past Due and still accruing / total LHFI

0.16

%  

0.21

%  

0.15

%  

0.16

%  

0.15

%