Exhibit 99.1

Graphic

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

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS SECOND QUARTER RESULTS

Richmond, Va., July 22, 2021 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $82.4 million and basic and diluted earnings per common share of $1.05 for the second quarter ended June 30, 2021. Pre-tax pre-provision adjusted operating earnings(1) were $77.0 million for the second quarter ended June 30, 2021.

Net income available to common shareholders was $135.6 million and basic and diluted earnings per common share of $1.72 for the six months ended June 30, 2021. Adjusted operating earnings available to common shareholders(1) were $147.2 million, diluted operating earnings per common share(1) were $1.87, and pre-tax pre-provision adjusted operating earnings(1) were $145.6 million for the six months ended June 30, 2021.

“Atlantic Union delivered solid financial results in the second quarter reflective of steadily improving economic conditions as the headwinds from COVID-19 continued to subside,” said John C. Asbury, president and chief executive officer of Atlantic Union. “During the second quarter, loan balances grew modestly, credit quality remained pristine and our capital and liquidity positions continue to be strong.

“As we head into the second half of 2021, we expect that loan growth will accelerate as economic activity picks up over the next several quarters and credit losses will remain historically low due to the positive economic outlook. Operating under the mantra of soundness, profitability and growth – in that order of priority - Atlantic Union remains committed to generating sustainable, profitable growth and building long term value for our shareholders.”

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

The Company has participated in the SBA PPP under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act (“PPP Round One”), which was intended to provide economic relief to small businesses that have been adversely impacted by the COVID-19 global pandemic (“COVID-19”). The Company processed over 11,000 PPP loans totaling $1.7 billion in 2020 pursuant to the CARES Act. The loans carry a 1% interest rate. As of June 30, 2021, PPP Round One loans have a recorded investment of $337.7 million and unamortized deferred fees of $2.0 million.

Certain provisions of the CARES Act, including additional PPP funding, were extended during December 2020 and expired on May 31, 2021 (“PPP Round Two”). The Company processed over 5,000 loans pursuant to PPP Round Two, with a recorded investment of $546.1 million and unamortized deferred fees of $22.4 million as of June 30, 2021. The loans carry a 1% interest rate.

In addition to an insignificant amount of PPP loan pay offs, the Company has processed $1.3 billion(*) of loan forgiveness on 9,800 PPP loans(*) through June 30, 2021. In the second quarter of 2021, 4,500 PPP Round One(*) loans totaling $696.0 million(*) were processed for forgiveness and 500 PPP Round Two loans(*) totaling $9.0 million(*) were processed for forgiveness.

Share Repurchase Program

On May 4, 2021, the Company’s Board of Directors authorized a share repurchase program (or the “Repurchase

Program”) to purchase up to $125 million worth of the Company’s common stock in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Exchange Act. The Repurchase Program expires on June 30, 2022 and replaced the prior repurchase program that was due to expire on June 30, 2021. Under the Repurchase Program, 1.1 million shares were repurchased


for $42.3 million in the aggregate during the quarter ended June 30, 2021. As of June 30, 2021, the Company has remaining repurchase authorization of $82.7 million available under the Repurchase Program.

(*) PPP values are rounded and approximate values

NET INTEREST INCOME

For the second quarter of 2021, net interest income was $140.5 million, an increase from $134.9 million reported in the first quarter of 2021. Net interest income (FTE)(1) was $143.7 million in the second quarter of 2021, an increase of $5.7 million from the first quarter of 2021. The increases in the net interest income and net interest income (FTE) were primarily driven by the increase in PPP loan accretion included in interest income to $11.5 million in the second quarter of 2021 from $7.8 million in the first quarter of 2021, an increase of $176.8 million in average earning assets and the higher calendar day count in the second quarter. The second quarter net interest margin increased 6 basis points to 3.15% from 3.09% in the previous quarter, while the net interest margin (FTE)(1)  increased 7 basis points to 3.23% from 3.16% during the same period as a result of stable earning asset yields compared to the first quarter and a 7 basis point decline in cost of funds.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting declined $167,000 from the prior quarter to $3.9 million for the quarter ended June 30, 2021. The first and second quarters of 2021 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

Deposit 

Loan

Accretion

Borrowings

    

Accretion

    

(Amortization)

    

Amortization

    

Total

For the quarter ended March 31, 2021

$

4,287

20

(198)

$

4,109

For the quarter ended June 30, 2021

4,132

12

(202)

3,942

For the remaining six months of 2021 (estimated)

 

3,607

(17)

(407)

 

3,183

For the years ending (estimated):

 

  

 

  

 

  

 

  

2022

 

6,166

 

(43)

 

(829)

 

5,294

2023

 

4,594

 

(32)

 

(852)

 

3,710

2024

 

3,756

 

(4)

 

(877)

 

2,875

2025

 

2,877

 

(1)

 

(900)

 

1,976

2026

 

2,298

 

 

(926)

 

1,372

Thereafter

 

10,374

 

 

(8,945)

 

1,429

Total remaining acquisition accounting fair value adjustments at June 30, 2021

$

33,672

(97)

(13,736)

$

19,839

ASSET QUALITY

Overview

During the second quarter of 2021, nonperforming assets (“NPAs”) as a percentage of loans decreased slightly and remained low at 0.28% at June 30, 2021. Accruing past due loan levels as a percentage of total loans held for investment at June 30, 2021 decreased 7 basis points as compared to March 31, 2021 and were 10 basis points lower than accruing past due loan levels at June 30, 2020. Net charge-off levels remained low at less than 0.01% of average loans for the second quarter 2021, which is a 3 basis point decrease from the first quarter of 2021, and a 9 basis point decrease from the second quarter of 2020. The allowance for credit losses (“ACL”) totaled $128.3 million at June 30, 2021, a $27.5 million decrease from the prior quarter due to lower expected losses than previously estimated and improvements in the macroeconomic outlook.

Nonperforming Assets

At June 30, 2021, NPAs totaled $38.1 million, a decrease of $6.1 million from March 31, 2021. NPAs as a percentage of total outstanding loans at June 30, 2021 were 0.28%, a decrease of 3 basis points from 0.31% at March 31, 2021. Excluding the impact of the PPP loans(1), NPAs as a percentage of total adjusted loans held for investment were 0.30% at June 30, 2021, a decrease of 5 basis points from 0.35% at March 31, 2021.


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

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

    

June 30, 

2021

2021

2020

2020

2020

Nonaccrual loans

$

36,399

$

41,866

$

42,448

$

39,023

$

39,624

Foreclosed properties

 

1,696

 

2,344

 

2,773

 

4,159

 

4,397

Total nonperforming assets

$

38,095

$

44,210

$

45,221

$

43,182

$

44,021

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, 

2021

2021

2020

2020

2020

Beginning Balance

$

41,866

$

42,448

$

39,023

$

39,624

$

44,022

Net customer payments

 

(9,307)

 

(4,133)

 

(4,640)

 

(2,803)

 

(6,524)

Additions

 

4,162

 

3,821

 

8,211

 

2,790

 

3,206

Charge-offs

 

(183)

 

(270)

 

(146)

 

(588)

 

(1,088)

Loans returning to accruing status

 

(153)

 

 

 

 

8

Transfers to foreclosed property

 

14

 

 

 

 

Ending Balance

$

36,399

$

41,866

$

42,448

$

39,023

$

39,624

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

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

    

June 30, 

2021

2021

2020

2020

2020

Beginning Balance

$

2,344

$

2,773

$

4,159

$

4,397

$

4,444

Additions of foreclosed property

 

14

 

 

 

 

Valuation adjustments

 

 

 

(35)

 

 

Proceeds from sales

 

(572)

 

(419)

 

(1,357)

 

(254)

 

(55)

Gains (losses) from sales

 

(90)

 

(10)

 

6

 

16

 

8

Ending Balance

$

1,696

$

2,344

$

2,773

$

4,159

$

4,397

Past Due Loans

Past due loans still accruing interest totaled $25.1 million or 0.18% of total loans held for investment at June 30, 2021, compared to $36.0 million or 0.25% of total loans held for investment at March 31, 2021, and $40.5 million or 0.28% of total loans held for investment at June 30, 2020. Excluding the impact of the PPP loans(1), past due loans still accruing interest were 0.20% of total adjusted loans held for investment at June 30, 2021, compared to 0.28% of total adjusted loans held for investment at March 31, 2021, and 0.32% of total adjusted loans held for investment at June 30, 2020. Of the total past due loans still accruing interest, $8.7 million or 0.06% of total loans held for investment were loans past due 90 days or more at June 30, 2021, compared to $9.8 million or 0.07% of total loans held for investment at March 31, 2021, and $19.3 million or 0.13% of total loans held for investment at June 30, 2020.

Net Charge-offs

Net charge-offs totaled $69,000 or less than 0.01% of total average loans (annualized) for the quarter ended June 30, 2021, compared to $1.2 million or 0.03% for the first quarter of 2021, and $3.3 million or 0.09% for the second quarter of 2020. Excluding the impact of the PPP loans(1), net charge-offs for the second quarter of 2021 were less than 0.01% of total adjusted average loans on an annualized basis, compared to 0.04% for the first quarter of 2021, and 0.10% for the second quarter of 2020.

Provision for Credit Losses

For the quarter ended June 30, 2021, the Company recorded a negative provision for credit losses of $27.4 million, compared to a negative provision of credit losses of $13.6 million in the previous quarter, and which decreased $61.6 million compared to the provision for credit losses of $34.2 million recorded during the same quarter in 2020. The provision for credit losses for the second quarter of 2021 reflected a negative provision of $24.6 million in provision for loan losses and a negative provision of $2.8 million for unfunded commitments. The decrease in the provision for credit losses as compared to the same quarter in 2020 was driven by the benign credit impacts since the pandemic began, the significant recovery in the economy since last year, as well as the improvement in the economic forecast utilized in estimating the ACL as of June 30, 2021.


Allowance for Credit Losses

At June 30, 2021, the ACL was $128.3 million and included an allowance for loan and lease losses (“ALLL”) of $118.3 million and a reserve for unfunded commitments (“RUC”) of $10.0 million. The ACL at June 30, 2021 decreased $27.5 million from March 31, 2021, due to lower expected losses than previously estimated as a result of benign credit quality metrics to date and an improved economic outlook due to the roll-out of COVID-19 vaccines and the impact of government stimulus inclusive of PPP loan funding. The ACL as a percentage of total loans was 0.94% at June 30, 2021 and 1.09% at March 31, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ACL as a percentage of total adjusted loans at June 30, 2021 decreased 22 basis points to 1.00% from the prior quarter.

At June 30, 2021, the ALLL decreased $24.7 million and the RUC decreased $2.8 million from March 31, 2021. The ALLL as a percentage of the total loan portfolio was 0.86% at June 30, 2021 and 1.00% at March 31, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ALLL as a percentage of total adjusted loans decreased 20 basis points from the prior quarter to 0.92% at June 30, 2021. The ratio of the ALLL to nonaccrual loans was 324.9% at June 30, 2021, compared to 341.4% at March 31, 2021.

NONINTEREST INCOME

Noninterest income decreased $2.5 million to $28.5 million for the quarter ended June 30, 2021 from $31.0 million in the prior quarter, primarily driven by a $3.6 million decline in mortgage banking income driven by lower mortgage origination volumes and a decline in loan-related interest rate swap income of $433,000 due to lower transaction volumes. In addition, there was a decline in unrealized gains on equity method investments of approximately $1.1 million during the second quarter of 2021. These quarterly declines were partially offset by increases in several other non-interest income categories including, an increase in service charges on deposit accounts of $1.1 million related to service charges on deposit accounts, higher debit card interchange fees of $356,000, an increase in bank owned life insurance income of $944,000 primarily due to life insurance proceeds received during the quarter, and an increase in fiduciary and asset management fees of $344,000 due to growth in assets under management.

NONINTEREST EXPENSE

Noninterest expense decreased $19.9 million to $92.0 million for the quarter ended June 30, 2021 from $111.9 million in the prior quarter. The decreases in non-interest expense was primarily driven by the recognition of debt extinguishment costs of $14.7 million during the first quarter of 2021, resulting from the prepayment of $200.0 million in long-term

FHLB advances. Salaries and benefits declined by approximately $1.9 million primarily due to decreases in payroll related taxes, which are typically seasonally higher in the first quarter. Professional services declined $552,000 primarily due to legal fees and costs related to strategic projects recognized in the first quarter of 2021. In addition, noninterest expense decreased $1.3 million due to costs related to the Company’s closure of five branches in February 2021 recognized during the first quarter of 2021. OREO and related credit expenses declined from the first quarter of 2021 by approximately $795,000, primarily driven by gains of $930,000 on the sale of closed branches during the second quarter. These net reductions were offset by an increase of $694,000 in marketing and advertising expenses and an increase in technology and data processing of $315,000. Noninterest expense for the second quarter of 2021 also included approximately $200,000 in costs related to the Company’s response to the COVID-19 pandemic and approximately $250,000 in expenses related to PPP loan forgiveness processing incurred during the second quarter of 2021.

INCOME TAXES

The effective tax rate for the three months ended June 30, 2021 was 18.3%, compared to 16.8% for the three months ended March 31, 2021. The increase in the effective tax rate is primarily due to changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At June 30, 2021, total assets were $20.0 billion, an increase of $134.7 million or approximately 2.7% (annualized) from March 31, 2021, and an increase of $237.0 million or approximately 1.2% from June 30, 2020. The increase in assets from the prior quarter was primarily driven by an increase in cash and cash equivalents, as well as net growth in the investment securities portfolio. The increase in assets from the prior quarter was partially offset by a decrease in loans due to PPP loan forgiveness. The increase in assets from the prior year was primarily driven by net growth in the


investment securities portfolio and organic loan growth, partially offset by a decrease in loans due to PPP loan forgiveness.

At June 30, 2021, loans held for investment (net of deferred fees and costs) were $13.7 billion, including $859.4 million in PPP loans, a decrease of $574.4 million or 16.1% (annualized) from March 31, 2021, and average loans decreased $92.2 million or 2.6% (annualized) from the prior quarter. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) increased $79.0 million or 2.5% (annualized) from March 31, 2021, and average loans increased $29.5 million or 0.9% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $610.7 million or 4.3% from June 30, 2020, while quarterly average loans increased $14.2 million or 0.1% from the same period in the prior year. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at June 30, 2021 increased $128.6 million or 1.0% from the same period in the prior year, and quarterly average loans during the second quarter of 2021 increased $100.5 million or 0.8% from the same period in the prior year. In addition to an insignificant amount of PPP loan payoffs, the Company processed approximately $705.0 million of loan forgiveness on approximately 5,000 PPP loans during the second quarter of 2021, in addition to $165.0 million of loan forgiveness on approximately 2,500 PPP loans during the first quarter of 2021.

At June 30, 2021, total deposits were $16.7 billion, an increase of $361.2 million or approximately 8.9% (annualized) from March 31, 2021, and average deposits increased $425.9 million or 10.6% (annualized) from the prior quarter. Deposits increased $1.1 billion or 6.8% from June 30, 2020, and quarterly average deposits increased $1.5 billion or 10.3% from the same period in the prior year. The increases in deposits from the prior quarter and prior year were primarily due to the impact of PPP loan related deposits and government stimulus actions.

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

    

June 30, 

    

March 31, 

    

June 30, 

 

2021

2020

2020

 

Common equity Tier 1 capital ratio (2)

 

10.56

%  

10.56

%  

9.88

%

Tier 1 capital ratio (2)

 

11.67

%  

11.70

%  

11.03

%

Total capital ratio (2)

 

14.05

%  

14.25

%  

13.81

%

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

 

9.20

%  

9.18

%  

8.82

%

Common equity to total assets

 

12.91

%  

12.81

%  

12.41

%

Tangible common equity to tangible assets (1)

 

8.40

%  

8.24

%  

7.74

%


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

During the second quarter of 2021, the Company declared and paid cash dividends of $0.28 per common share, an increase of $0.03, or approximately 12.0%, compared to both the first quarter of 2021 and the second quarter of 2020. During the second quarter of 2021, the Company also declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share).

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


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

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 129 branches and approximately 150 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic


Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour, & Brown, Inc., which provide investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

SECOND QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for analysts on Thursday, July 22, 2021 at 9:00 a.m. Eastern Time during which management will review the second quarter 2021 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (866) 220-4170; international callers wishing to participate may do so by dialing (864) 663-5235. The conference ID number is 2240959. Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/e3ix8xvr.

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 June 30, 2021, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including without limitation, statements made in Mr. Asbury’s quotes are statements that include, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to the effects of or changes in:

changes in interest rates;
general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth, including as a result of COVID-19;
the quality or composition of the loan or investment portfolios and changes therein;
demand for loan products and financial services in the Company’s market area;

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

Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and related disclosures in other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/21

    

03/31/21

    

06/30/20

 

06/30/21

06/30/20

Results of Operations

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

Interest and dividend income

$

150,852

$

147,673

$

162,867

$

298,525

$

334,193

Interest expense

 

10,304

 

12,775

 

25,562

 

23,079

 

61,880

Net interest income

 

140,548

 

134,898

 

137,305

 

275,446

 

272,313

Provision for credit losses

 

(27,414)

 

(13,624)

 

34,200

 

(41,037)

 

94,396

Net interest income after provision for credit losses

 

167,962

 

148,522

 

103,105

 

316,483

 

177,917

Noninterest income

 

28,466

 

30,985

 

35,932

 

59,451

 

64,838

Noninterest expenses

 

91,971

 

111,937

 

102,814

 

203,908

 

198,459

Income before income taxes

 

104,457

 

67,570

 

36,223

 

172,026

 

44,296

Income tax expense

 

19,073

 

11,381

 

5,514

 

30,453

 

6,498

Net income

85,384

56,189

30,709

141,573

37,798

Dividends on preferred stock

2,967

2,967

5,934

Net income available to common shareholders

$

82,417

$

53,222

$

30,709

$

135,639

$

37,798

Interest earned on earning assets (FTE) (1)

$

153,996

$

150,726

$

165,672

$

304,722

$

339,755

Net interest income (FTE) (1)

 

143,692

 

137,951

 

140,110

 

281,643

 

277,875

Total revenue (FTE) (1)

172,158

168,936

176,042

341,094

342,713

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

77,043

68,563

70,390

145,606

138,492

Key Ratios

Earnings per common share, diluted

$

1.05

$

0.67

$

0.39

$

1.72

$

0.48

Return on average assets (ROA)

 

1.72

%  

 

1.16

%  

 

0.64

%

 

1.44

%  

 

0.41

%

Return on average equity (ROE)

 

12.46

%  

 

8.38

%  

 

4.96

%

 

10.44

%  

 

3.06

%

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

 

21.44

%  

 

14.58

%  

 

9.46

%

 

18.06

%  

 

6.13

%

Efficiency ratio

 

54.42

%  

 

67.48

%  

 

59.35

%

 

60.89

%  

 

58.86

%

Net interest margin

 

3.15

%  

 

3.09

%  

 

3.23

%

 

3.12

%  

 

3.35

%

Net interest margin (FTE) (1)

 

3.23

%  

 

3.16

%  

 

3.29

%

 

3.19

%  

 

3.42

%

Yields on earning assets (FTE) (1)

 

3.46

%  

 

3.46

%  

 

3.90

%

 

3.46

%  

 

4.18

%

Cost of interest-bearing liabilities

 

0.35

%  

 

0.43

%  

 

0.84

%

 

0.39

%  

 

1.03

%

Cost of deposits

 

0.18

%  

 

0.23

%  

 

0.53

%

 

0.20

%  

 

0.68

%

Cost of funds

 

0.23

%  

 

0.30

%  

 

0.61

%

 

0.27

%  

 

0.76

%

Operating Measures (4)

Adjusted operating earnings

$

85,384

$

67,736

$

30,682

$

153,120

$

37,640

Adjusted operating earnings available to common shareholders

82,417

64,769

30,682

147,186

37,640

Adjusted operating earnings per common share, diluted

$

1.05

$

0.82

$

0.39

$

1.87

$

0.48

Adjusted operating ROA

 

1.72

%  

 

1.40

%  

 

0.64

%

 

1.56

%  

 

0.41

%

Adjusted operating ROE

 

12.46

%  

 

10.10

%  

 

4.96

%

11.29

%  

 

3.04

%

Adjusted operating ROTCE (2) (3)

 

21.44

%  

 

17.58

%  

 

9.46

%

 

19.54

%  

 

6.11

%

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

 

51.35

%  

 

55.38

%  

 

53.28

%

 

53.34

%  

 

54.04

%

Per Share Data

Earnings per common share, basic

$

1.05

$

0.67

$

0.39

$

1.72

$

0.48

Earnings per common share, diluted

 

1.05

 

0.67

 

0.39

 

1.72

 

0.48

Cash dividends paid per common share

 

0.28

 

0.25

 

0.25

 

0.53

 

0.50

Market value per share

 

36.22

 

38.36

 

23.16

 

36.22

 

23.16

Book value per common share

 

33.30

 

32.37

 

31.32

 

33.30

 

31.32

Tangible book value per common share (2)

 

20.59

 

19.78

 

18.54

 

20.59

 

18.54

Price to earnings ratio, diluted

 

8.60

 

14.12

 

14.77

 

10.44

 

23.99

Price to book value per common share ratio

 

1.09

 

1.19

 

0.74

 

1.09

 

0.74

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

 

1.76

 

1.94

 

1.25

 

1.76

 

1.25

Weighted average common shares outstanding, basic

 

78,819,697

 

78,863,468

 

78,711,765

 

78,841,462

 

79,001,058

Weighted average common shares outstanding, diluted

 

78,843,724

 

78,884,235

 

78,722,690

 

78,863,859

 

79,020,036

Common shares outstanding at end of period

 

77,928,948

 

79,006,331

 

78,713,056

 

77,928,948

 

78,713,056


As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/21

    

03/31/21

    

06/30/20

 

06/30/21

06/30/20

 

Capital Ratios

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Common equity Tier 1 capital ratio (5)

 

10.56

%  

10.56

%  

9.88

%

10.56

%  

9.88

%

Tier 1 capital ratio (5)

 

11.67

%  

11.70

%  

11.03

%

11.67

%  

11.03

%

Total capital ratio (5)

 

14.05

%  

14.25

%  

13.81

%

14.05

%  

13.81

%

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

 

9.20

%  

9.18

%  

8.82

%

9.20

%  

8.82

%

Common equity to total assets

 

12.91

%  

12.81

%  

12.41

%

12.91

%  

12.41

%

Tangible common equity to tangible assets (2)

 

8.40

%  

8.24

%  

7.74

%

8.40

%  

7.74

%

Financial Condition

 

  

 

  

 

  

  

 

  

Assets

$

19,989,356

$

19,854,612

$

19,752,317

$

19,989,356

$

19,752,317

Loans held for investment, net

 

13,697,929

 

14,272,280

 

14,308,646

 

13,697,929

 

14,308,646

Securities

 

3,491,669

 

3,317,442

 

2,672,557

 

3,491,669

 

2,672,557

Earning Assets

 

17,824,283

 

17,889,174

 

17,680,876

 

17,824,283

 

17,680,876

Goodwill

 

935,560

 

935,560

 

935,560

 

935,560

 

935,560

Amortizable intangibles, net

 

49,917

 

53,471

 

65,105

 

49,917

 

65,105

Deposits

 

16,659,219

 

16,298,017

 

15,605,139

 

16,659,219

 

15,605,139

Borrowings

 

380,079

 

563,600

 

1,125,030

 

380,079

 

1,125,030

Stockholders' equity

 

2,747,597

 

2,709,732

 

2,618,226

 

2,747,597

 

2,618,226

Tangible common equity (2)

 

1,595,763

 

1,554,344

 

1,451,197

 

1,595,763

 

1,451,197

Loans held for investment, net of deferred fees and costs

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

838,722

$

884,303

$

1,247,939

$

838,722

$

1,247,939

Commercial real estate - owner occupied

 

2,069,658

 

2,083,155

 

2,067,087

 

2,069,658

 

2,067,087

Commercial real estate - non-owner occupied

 

3,712,607

 

3,671,471

 

3,455,125

 

3,712,607

 

3,455,125

Multifamily real estate

 

860,081

 

842,906

 

717,719

 

860,081

 

717,719

Commercial & Industrial

 

2,990,622

 

3,599,884

 

3,555,971

 

2,990,622

 

3,555,971

Residential 1-4 Family - Commercial

 

637,485

 

658,051

 

715,384

 

637,485

 

715,384

Residential 1-4 Family - Consumer

 

823,355

 

816,916

 

841,051

 

823,355

 

841,051

Residential 1-4 Family - Revolving

 

559,014

 

563,786

 

627,765

 

559,014

 

627,765

Auto

 

411,073

 

406,349

 

380,053

 

411,073

 

380,053

Consumer

 

195,036

 

215,711

 

311,362

 

195,036

 

311,362

Other Commercial

 

600,276

 

529,748

 

389,190

 

600,276

 

389,190

Total loans held for investment

$

13,697,929

$

14,272,280

$

14,308,646

$

13,697,929

$

14,308,646

Deposits

 

  

 

  

 

  

 

  

 

  

NOW accounts

$

3,777,540

$

3,612,135

$

3,618,523

$

3,777,540

$

3,618,523

Money market accounts

 

4,450,724

 

4,244,092

 

4,158,325

 

4,450,724

 

4,158,325

Savings accounts

 

1,032,171

 

991,418

 

824,164

 

1,032,171

 

824,164

Time deposits of $250,000 and over

 

566,180

 

619,040

 

689,693

 

566,180

 

689,693

Other time deposits

1,610,032

1,764,933

1,968,474

1,610,032

1,968,474

Time deposits

 

2,176,212

 

2,383,973

 

2,658,167

 

2,176,212

 

2,658,167

Total interest-bearing deposits

$

11,436,647

$

11,231,618

$

11,259,179

$

11,436,647

$

11,259,179

Demand deposits

 

5,222,572

 

5,066,399

 

4,345,960

 

5,222,572

 

4,345,960

Total deposits

$

16,659,219

$

16,298,017

$

15,605,139

$

16,659,219

$

15,605,139

Averages

 

  

 

  

 

  

 

  

 

  

Assets

$

19,922,978

$

19,686,854

$

19,157,238

$

19,805,569

$

18,358,579

Loans held for investment, net

 

13,971,939

 

14,064,123

 

13,957,711

 

14,017,777

 

13,275,817

Loans held for sale

 

36,790

 

63,022

 

56,846

 

49,834

 

53,783

Securities

 

3,420,329

 

3,209,377

 

2,648,967

 

3,315,435

 

2,635,202

Earning assets

 

17,868,938

 

17,692,095

 

17,106,132

 

17,781,005

 

16,334,901

Deposits

 

16,500,541

 

16,074,650

 

14,960,386

 

16,288,772

 

14,153,621

Time deposits

 

2,270,217

 

2,490,432

 

2,667,268

 

2,379,716

 

2,711,384

Interest-bearing deposits

 

11,446,768

 

11,491,129

 

10,941,368

 

11,468,826

 

10,681,393

Borrowings

 

399,855

 

574,678

 

1,344,994

 

486,784

 

1,395,539

Interest-bearing liabilities

 

11,846,623

 

12,065,807

 

12,286,362

 

11,955,610

 

12,076,932

Stockholders' equity

 

2,747,864

 

2,719,941

 

2,489,969

 

2,733,980

 

2,487,807

Tangible common equity (2)

 

1,594,311

 

1,562,575

 

1,446,948

 

1,578,531

 

1,462,875


As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/21

    

03/31/21

    

06/30/20

 

06/30/21

06/30/20

 

Asset Quality

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Allowance for Credit Losses (ACL)

 

  

 

  

 

  

  

 

  

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

$

142,911

$

160,540

$

141,043

$

160,540

$

42,294

Add: Day 1 impact from adoption of CECL

47,484

Add: Recoveries

 

1,876

 

2,469

 

1,411

 

4,345

 

3,571

Less: Charge-offs

 

1,945

 

3,641

 

4,677

 

5,586

 

11,828

Add: Provision for loan losses

 

(24,581)

 

(16,457)

 

32,200

 

(41,038)

 

88,456

Ending balance, ALLL

$

118,261

$

142,911

$

169,977

$

118,261

$

169,977

Beginning balance, Reserve for unfunded commitment (RUC)

$

12,833

$

10,000

$

9,000

$

10,000

$

900

Add: Day 1 impact from adoption of CECL

4,160

Add: Provision for unfunded commitments

(2,833)

2,833

2,000

5,940

Ending balance, RUC

$

10,000

$

12,833

$

11,000

$

10,000

$

11,000

Total ACL

$

128,261

$

155,744

$

180,977

$

128,261

$

180,977

ACL / total outstanding loans

0.94

%  

1.09

%  

1.26

%

0.94

%  

1.26

%

ACL / total adjusted loans(9)

1.00

%  

1.22

%  

1.42

%

1.00

%  

1.42

%

ALLL / total outstanding loans

 

0.86

%  

 

1.00

%  

 

1.19

%

 

0.86

%  

 

1.19

%

ALLL / total adjusted loans(9)

0.92

%  

1.12

%  

1.34

%  

0.92

%  

1.34

%  

Net charge-offs / total average loans

 

0.00

%  

 

0.03

%  

 

0.09

%

 

0.02

%  

 

0.13

%

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

0.00

%  

0.04

%  

0.10

%

0.02

%  

0.14

%

Provision for loan losses/ total average loans

 

(0.71)

%  

 

(0.47)

%  

 

0.93

%

 

(0.59)

%  

 

1.34

%

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

(0.77)

%  

(0.52)

%  

1.02

%

(0.65)

%  

1.48

%

`

Nonperforming Assets (6)

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

2,685

$

2,637

$

3,977

$

2,685

$

3,977

Commercial real estate - owner occupied

 

6,969

 

7,016

 

8,924

 

6,969

 

8,924

Commercial real estate - non-owner occupied

 

3,026

 

1,958

 

1,877

 

3,026

 

1,877

Multifamily real estate

113

33

113

33

Commercial & Industrial

 

1,908

 

2,023

 

2,708

 

1,908

 

2,708

Residential 1-4 Family - Commercial

 

4,200

 

9,190

 

5,784

 

4,200

 

5,784

Residential 1-4 Family - Consumer

 

13,489

 

14,770

 

12,029

 

13,489

 

12,029

Residential 1-4 Family - Revolving

 

3,726

 

3,853

 

3,626

 

3,726

 

3,626

Auto

 

179

 

303

 

584

 

179

 

584

Consumer

104

116

81

104

81

Other Commercial

1

 

1

Nonaccrual loans

$

36,399

$

41,866

$

39,624

$

36,399

$

39,624

Foreclosed property

 

1,696

 

2,344

 

4,397

 

1,696

 

4,397

Total nonperforming assets (NPAs)

$

38,095

$

44,210

$

44,021

$

38,095

$

44,021

Construction and land development

$

186

$

189

$

473

$

186

$

473

Commercial real estate - owner occupied

 

2,276

 

3,180

 

7,851

 

2,276

 

7,851

Commercial real estate - non-owner occupied

827

817

878

827

878

Multifamily real estate

366

366

Commercial & Industrial

 

1,088

 

654

 

178

 

1,088

 

178

Residential 1-4 Family - Commercial

 

759

 

576

 

578

 

759

 

578

Residential 1-4 Family - Consumer

 

2,725

 

3,041

 

5,099

 

2,725

 

5,099

Residential 1-4 Family - Revolving

 

561

 

917

 

1,995

 

561

 

1,995

Auto

 

168

 

154

 

181

 

168

 

181

Consumer

 

156

 

248

 

1,157

 

156

 

1,157

Other Commercial

499

499

Loans ≥ 90 days and still accruing

$

8,746

$

9,776

$

19,255

$

8,746

$

19,255

Total NPAs and loans ≥ 90 days

$

46,841

$

53,986

$

63,276

$

46,841

$

63,276

NPAs / total outstanding loans

0.28

%  

 

0.31

%  

 

0.31

%

 

0.28

%  

 

0.31

%

NPAs / total adjusted loans(9)

0.30

%  

0.35

%  

0.35

%  

0.30

%  

0.35

%  

NPAs / total assets

 

0.19

%  

 

0.22

%  

 

0.22

%

 

0.19

%  

 

0.22

%

ALLL / nonaccrual loans

 

324.90

%  

 

341.35

%  

 

428.97

%

 

324.90

%  

 

428.97

%

ALLL/ nonperforming assets

 

310.44

%  

 

323.25

%  

 

386.13

%

 

310.44

%  

 

386.13

%

 

  

 

  

 

  

 

  

 

  


As of & For Three Months Ended

 

As of & For Six Months Ended

    

06/30/21

    

03/31/21

    

06/30/20

 

06/30/21

06/30/20

 

Past Due Detail (6)

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Construction and land development

$

798

$

865

$

1,683

$

798

$

1,683

Commercial real estate - owner occupied

 

1,450

 

3,426

 

1,679

 

1,450

 

1,679

Commercial real estate - non-owner occupied

 

1,501

 

1,055

 

930

 

1,501