Exhibit 99.1

Graphic

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

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER RESULTS

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

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

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

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

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

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

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

Share Repurchase Program

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

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


NET INTEREST INCOME

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

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

Deposit 

Loan

Accretion

Borrowings

    

Accretion

    

(Amortization)

    

Amortization

    

Total

For the quarter ended March 31, 2021

$

4,287

$

20

$

(198)

$

4,109

For the quarter ended June 30, 2021

4,132

12

(202)

3,942

For the quarter ended September 30, 2021

 

4,176

(8)

(203)

 

3,965

For the remaining three months of 2021 (estimated)

 

1,627

(11)

(203)

 

1,413

For the years ending (estimated):

 

  

 

  

 

  

 

  

2022

 

5,757

 

(43)

 

(829)

 

4,885

2023

 

4,281

 

(32)

 

(852)

 

3,397

2024

 

3,501

 

(4)

 

(877)

 

2,620

2025

 

2,724

 

(1)

 

(900)

 

1,823

2026

 

2,176

 

 

(926)

 

1,250

Thereafter

 

9,433

 

 

(8,946)

 

487

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

$

29,499

$

(91)

$

(13,533)

$

15,875

ASSET QUALITY

Overview

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

Nonperforming Assets

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


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

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

2021

2021

2021

2020

2020

Nonaccrual loans

$

35,472

$

36,399

$

41,866

$

42,448

$

39,023

Foreclosed properties

 

1,696

 

1,696

 

2,344

 

2,773

 

4,159

Total nonperforming assets

$

37,168

$

38,095

$

44,210

$

45,221

$

43,182

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

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

2021

2021

2021

2020

2020

Beginning Balance

$

36,399

$

41,866

$

42,448

$

39,023

$

39,624

Net customer payments

 

(4,719)

 

(9,307)

 

(4,133)

 

(4,640)

 

(2,803)

Additions

 

4,177

 

4,162

 

3,821

 

8,211

 

2,790

Charge-offs

 

(385)

 

(183)

 

(270)

 

(146)

 

(588)

Loans returning to accruing status

 

 

(153)

 

 

 

Transfers to foreclosed property

 

 

14

 

 

 

Ending Balance

$

35,472

$

36,399

$

41,866

$

42,448

$

39,023

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

    

September 30, 

    

June 30, 

    

March 31, 

    

December 31, 

    

September 30, 

2021

2021

2021

2020

2020

Beginning Balance

$

1,696

$

2,344

$

2,773

$

4,159

$

4,397

Additions of foreclosed property

 

 

14

 

 

 

Valuation adjustments

 

 

 

 

(35)

 

Proceeds from sales

 

 

(572)

 

(419)

 

(1,357)

 

(254)

Gains (losses) from sales

 

 

(90)

 

(10)

 

6

 

16

Ending Balance

$

1,696

$

1,696

$

2,344

$

2,773

$

4,159

Past Due Loans

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

Net Charge-offs

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

Provision for Credit Losses

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


Allowance for Credit Losses

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

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

NONINTEREST INCOME

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

NONINTEREST EXPENSE

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

INCOME TAXES

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

BALANCE SHEET

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

At September 30, 2021, loans held for investment (net of deferred fees and costs) totaled $13.1 billion, including $466.6 million in PPP loans, a decrease of $558.3 million or 16.2% (annualized) from June 30, 2021, and average loans at September 30, 2021 decreased $520.3 million or 14.8% (annualized) from the prior quarter. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at September 30, 2021 decreased $165.6 million or 5.1% (annualized) from June 30, 2021, and average loans decreased $19.9 million or 0.6% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $1.2 billion or 8.6% from September


30, 2020, while quarterly average loans decreased $907.0 million or 6.3% from the same period in the prior year. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at September 30, 2021 decreased $109.7 million or 0.9% from the same period in the prior year, and quarterly average loans during the third quarter of 2021 increased $44.0 million or 0.3% from the same period in the prior year. In addition to an insignificant amount of PPP loan payoffs, the Company processed $391.8 million(*) of loan forgiveness on 3,000 PPP loans(*) during the third quarter of 2021, compared to $705.0 million(*) of loan forgiveness on 5,000 PPP loans(*) during the second quarter of 2021.

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

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

    

September 30, 

    

June 30, 

    

September 30, 

 

2021

2021

2020

 

Common equity Tier 1 capital ratio (2)

 

10.37

%  

10.56

%  

10.05

%

Tier 1 capital ratio (2)

 

11.49

%  

11.68

%  

11.18

%

Total capital ratio (2)

 

13.78

%  

14.05

%  

13.93

%

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

 

8.97

%  

9.20

%  

8.82

%

Common equity to total assets

 

12.68

%  

12.91

%  

12.52

%

Tangible common equity to tangible assets (1)

 

8.16

%  

8.40

%  

7.91

%


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

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


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

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

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

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 130 branches and approximately 150 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Dixon, Hubard, Feinour & Brown, Inc., which provides investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.


THIRD QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL

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

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

NON-GAAP FINANCIAL MEASURES

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

FORWARD-LOOKING STATEMENTS

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

changes in interest rates;
general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth, including as a result of COVID-19;
the quality or composition of the loan or investment portfolios and changes therein;
demand for loan products and financial services in the Company’s market area;
the Company’s ability to manage its growth or implement its growth strategy;
the effectiveness of expense reduction plans;
the introduction of new lines of business or new products and services;
the Company’s ability to recruit and retain key employees;
the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;

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

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


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

As of & For Three Months Ended

 

As of & For Nine Months Ended

    

09/30/21

    

06/30/21

    

09/30/20

 

09/30/21

09/30/20

Results of Operations

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

Interest and dividend income

$

146,379

$

150,852

$

157,414

$

444,904

$

491,607

Interest expense

 

8,891

 

10,304

 

20,033

 

31,970

 

81,913

Net interest income

 

137,488

 

140,548

 

137,381

 

412,934

 

409,694

Provision for credit losses

 

(18,850)

 

(27,414)

 

6,558

 

(59,888)

 

100,954

Net interest income after provision for credit losses

 

156,338

 

167,962

 

130,823

 

472,822

 

308,740

Noninterest income

 

29,938

 

28,466

 

34,407

 

89,388

 

99,245

Noninterest expenses

 

95,343

 

91,971

 

93,222

 

299,251

 

291,681

Income before income taxes

 

90,933

 

104,457

 

72,008

 

262,959

 

116,304

Income tax expense

 

16,368

 

19,073

 

11,008

 

46,821

 

17,506

Net income

74,565

85,384

61,000

216,138

98,798

Dividends on preferred stock

2,967

2,967

2,691

8,901

2,691

Net income available to common shareholders

$

71,598

$

82,417

$

58,309

$

207,237

$

96,107

Interest earned on earning assets (FTE) (1)

$

149,543

$

153,996

$

160,315

$

454,265

$

500,069

Net interest income (FTE) (1)

 

140,652

 

143,692

 

140,282

 

422,295

 

418,156

Total revenue (FTE) (1)

170,590

172,158

174,689

511,683

517,401

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

72,074

77,043

78,548

217,679

217,040

Key Ratios

Earnings per common share, diluted

$

0.94

$

1.05

$

0.74

$

2.66

$

1.22

Return on average assets (ROA)

 

1.47

%  

 

1.72

%  

 

1.23

%

 

1.45

%  

 

0.70

%

Return on average equity (ROE)

 

10.88

%  

 

12.46

%  

 

9.16

%

 

10.59

%  

 

5.19

%

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

 

18.79

%  

 

21.44

%  

 

16.49

%

 

18.31

%  

 

9.64

%

Efficiency ratio

 

56.95

%  

 

54.42

%  

 

54.27

%

 

59.57

%  

 

57.31

%

Net interest margin

 

3.05

%  

 

3.15

%  

 

3.08

%

 

3.10

%  

 

3.26

%

Net interest margin (FTE) (1)

 

3.12

%  

 

3.23

%  

 

3.14

%

 

3.17

%  

 

3.32

%

Yields on earning assets (FTE) (1)

 

3.31

%  

 

3.46

%  

 

3.59

%

 

3.41

%  

 

3.97

%

Cost of interest-bearing liabilities

 

0.30

%  

 

0.35

%  

 

0.64

%

 

0.36

%  

 

0.90

%

Cost of deposits

 

0.14

%  

 

0.18

%  

 

0.39

%

 

0.18

%  

 

0.58

%

Cost of funds

 

0.19

%  

 

0.23

%  

 

0.45

%

 

0.24

%  

 

0.65

%

Operating Measures (4)

Adjusted operating earnings

$

74,558

$

85,384

$

60,986

$

227,678

$

98,626

Adjusted operating earnings available to common shareholders

71,591

82,417

58,295

218,777

95,935

Adjusted operating earnings per common share, diluted

$

0.94

$

1.05

$

0.74

$

2.80

$

1.22

Adjusted operating ROA

 

1.47

%  

 

1.72

%  

 

1.23

%

 

1.53

%  

 

0.70

%

Adjusted operating ROE

 

10.88

%  

 

12.46

%  

 

9.16

%

11.16

%  

 

5.18

%

Adjusted operating ROTCE (2) (3)

 

18.79

%  

 

21.44

%  

 

16.49

%

 

19.29

%  

 

9.63

%

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

 

53.91

%  

 

51.35

%  

 

51.05

%

 

53.53

%  

 

53.01

%

Per Share Data

Earnings per common share, basic

$

0.94

$

1.05

$

0.74

$

2.66

$

1.22

Earnings per common share, diluted

 

0.94

 

1.05

 

0.74

 

2.66

 

1.22

Cash dividends paid per common share

 

0.28

 

0.28

 

0.25

 

0.81

 

0.75

Market value per share

 

36.85

 

36.22

 

21.37

 

36.85

 

21.37

Book value per common share

 

33.60

 

33.30

 

31.86

 

33.60

 

31.86

Tangible book value per common share (2)

 

20.55

 

20.59

 

19.13

 

20.55

 

19.13

Price to earnings ratio, diluted

 

9.88

 

8.60

 

7.26

 

10.36

 

13.11

Price to book value per common share ratio

 

1.10

 

1.09

 

0.67

 

1.10

 

0.67

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

 

1.79

 

1.76

 

1.12

 

1.79

 

1.12

Weighted average common shares outstanding, basic

 

76,309,355

 

78,819,697

 

78,714,353

 

77,988,151

 

78,904,792

Weighted average common shares outstanding, diluted

 

76,322,736

 

78,848,724

 

78,725,346

 

78,007,543

 

78,921,108

Common shares outstanding at end of period

 

75,645,031

 

77,928,948

 

78,718,850

 

75,645,031

 

78,718,850


As of & For Three Months Ended

 

As of & For Nine Months Ended

    

09/30/21

    

06/30/21

    

09/30/20

 

09/30/21

09/30/20

 

Capital Ratios

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Common equity Tier 1 capital ratio (5)

 

10.37

%  

10.56

%  

10.05

%

10.37

%  

10.05

%

Tier 1 capital ratio (5)

 

11.49

%  

11.68

%  

11.18

%

11.49

%  

11.18

%

Total capital ratio (5)

 

13.78

%  

14.05

%  

13.93

%

13.78

%  

13.93

%

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

 

8.97

%  

9.20

%  

8.82

%

8.97

%  

8.82

%

Common equity to total assets

 

12.68

%  

12.91

%  

12.52

%

12.68

%  

12.52

%

Tangible common equity to tangible assets (2)

 

8.16

%  

8.40

%  

7.91

%

8.16

%  

7.91

%

Financial Condition

 

  

 

  

 

  

  

 

  

Assets

$

19,935,657

$

19,989,356

$

19,930,650

$

19,935,657

$

19,930,650

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

 

13,139,586

 

13,697,929

 

14,383,215

 

13,139,586

 

14,383,215

Securities

 

3,807,723

 

3,491,669

 

3,102,217

 

3,807,723

 

3,102,217

Earning Assets

 

17,795,784

 

17,824,283

 

17,885,975

 

17,795,784

 

17,885,975

Goodwill

 

935,560

 

935,560

 

935,560

 

935,560

 

935,560

Amortizable intangibles, net

 

46,537

 

49,917

 

61,068

 

46,537

 

61,068

Deposits

 

16,622,160

 

16,659,219

 

15,576,098

 

16,622,160

 

15,576,098

Borrowings

 

385,765

 

380,079

 

1,314,322

 

385,765

 

1,314,322

Stockholders' equity

 

2,694,439

 

2,747,597

 

2,660,885

 

2,694,439

 

2,660,885

Tangible common equity (2)

 

1,545,985

 

1,595,763

 

1,497,900

 

1,545,985

 

1,497,900

Loans held for investment, net of deferred fees and costs

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

877,351

$

838,722

$

1,207,190

$

877,351

$

1,207,190

Commercial real estate - owner occupied

 

2,027,299

 

2,069,658

 

2,107,333

 

2,027,299

 

2,107,333

Commercial real estate - non-owner occupied

 

3,730,720

 

3,712,607

 

3,497,929

 

3,730,720

 

3,497,929

Multifamily real estate

 

776,287

 

860,081

 

731,582

 

776,287

 

731,582

Commercial & Industrial

 

2,580,190

 

2,990,622

 

3,536,249

 

2,580,190

 

3,536,249

Residential 1-4 Family - Commercial

 

624,347

 

637,485

 

696,944

 

624,347

 

696,944

Residential 1-4 Family - Consumer

 

822,971

 

823,355

 

830,144

 

822,971

 

830,144

Residential 1-4 Family - Revolving

 

557,803

 

559,014

 

618,320

 

557,803

 

618,320

Auto

 

425,436

 

411,073

 

387,417

 

425,436

 

387,417

Consumer

 

182,039

 

195,036

 

276,023

 

182,039

 

276,023

Other Commercial

 

535,143

 

600,276

 

494,084

 

535,143

 

494,084

Total loans held for investment

$

13,139,586

$

13,697,929

$

14,383,215

$

13,139,586

$

14,383,215

Deposits

 

  

 

  

 

  

 

  

 

  

NOW accounts

$

4,016,505

$

3,777,540

$

3,460,480

$

4,016,505

$

3,460,480

Money market accounts

 

4,152,986

 

4,450,724

 

4,269,696

 

4,152,986

 

4,269,696

Savings accounts

 

1,079,735

 

1,032,171

 

861,685

 

1,079,735

 

861,685

Time deposits of $250,000 and over

 

546,199

 

566,180

 

633,252

 

546,199

 

633,252

Other time deposits

1,497,897

1,610,032

1,930,320

1,497,897

1,930,320

Time deposits

 

2,044,096

 

2,176,212

 

2,563,572

 

2,044,096

 

2,563,572

Total interest-bearing deposits

$

11,293,322

$

11,436,647

$

11,155,433

$

11,293,322

$

11,155,433

Demand deposits

 

5,328,838

 

5,222,572

 

4,420,665

 

5,328,838

 

4,420,665

Total deposits

$

16,622,160

$

16,659,219

$

15,576,098

$

16,622,160

$

15,576,098

Averages

 

  

 

  

 

  

 

  

 

  

Assets

$

20,056,570

$

19,922,978

$

19,785,167

$

19,890,155

$

18,837,580

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

 

13,451,674

 

13,971,939

 

14,358,666

 

13,827,002

 

13,639,401

Loans held for sale

 

30,035

 

36,790

 

45,201

 

43,162

 

50,902

Securities

 

3,679,977

 

3,420,329

 

2,891,210

 

3,438,285

 

2,721,161

Earning assets

 

17,910,389

 

17,868,938

 

17,748,152

 

17,824,607

 

16,809,423

Deposits

 

16,718,144

 

16,500,541

 

15,580,469

 

16,433,470

 

14,632,709

Time deposits

 

2,109,131

 

2,270,217

 

2,579,991

 

2,288,530

 

2,667,267

Interest-bearing deposits

 

11,512,825

 

11,446,768

 

11,260,244

 

11,483,654

 

10,875,752

Borrowings

 

395,984

 

399,855

 

1,183,839

 

456,184

 

1,324,457

Interest-bearing liabilities

 

11,908,809

 

11,846,623

 

12,444,083

 

11,939,838

 

12,200,209

Stockholders' equity

 

2,718,032

 

2,747,864

 

2,648,777

 

2,728,605

 

2,541,856

Tangible common equity (2)

 

1,567,937

 

1,594,311

 

1,483,848

 

1,574,961

 

1,469,918


As of & For Three Months Ended

 

As of & For Nine Months Ended

    

09/30/21

    

06/30/21

    

09/30/20

 

09/30/21

09/30/20

 

Asset Quality

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Allowance for Credit Losses (ACL)

 

  

 

  

 

  

  

 

  

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

$

118,261

$

142,911

$

169,977

$

160,540

$

42,294

Add: Day 1 impact from adoption of CECL

47,484

Add: Recoveries

 

2,153

 

1,876

 

1,566

 

6,498

 

5,137

Less: Charge-offs

 

2,266

 

1,945

 

2,978

 

7,852

 

14,806

Add: Provision for loan losses

 

(16,350)

 

(24,581)

 

5,557

 

(57,388)

 

94,013

Ending balance, ALLL

$

101,798

$

118,261

$

174,122

$

101,798

$

174,122

Beginning balance, Reserve for unfunded commitment (RUC)

$

10,000

$

12,833

$

11,000

$

10,000

$

900

Add: Day 1 impact from adoption of CECL

4,160

Add: Provision for unfunded commitments

(2,500)

(2,833)

1,000

(2,500)

6,940

Ending balance, RUC

$

7,500

$

10,000

$

12,000

$

7,500

$

12,000

Total ACL

$

109,298

$

128,261

$

186,122

$

109,298

$

186,122

ACL / total outstanding loans

0.83

%  

0.94

%  

1.29

%

0.83

%  

1.29

%

ACL / total adjusted loans(9)

0.86

%  

1.00

%  

1.46

%

0.86

%  

1.46

%

ALLL / total outstanding loans

 

0.77

%  

 

0.86

%  

 

1.21

%

 

0.77

%  

 

1.21

%

ALLL / total adjusted loans(9)

0.80

%  

0.92

%  

1.36

%  

0.80

%  

1.36

%  

Net charge-offs / total average loans

 

0.00

%  

 

0.00

%  

 

0.04

%

 

0.01

%  

 

0.09

%

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

0.00

%  

0.00

%  

0.04

%

0.01

%  

0.11

%

Provision for loan losses/ total average loans

 

(0.48)

%  

 

(0.71)

%  

 

0.15

%

 

(0.55)

%  

 

0.92

%

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

(0.51)

%  

(0.77)

%  

0.17

%

(0.60)

%  

1.03

%

`

Nonperforming Assets (6)

 

  

 

  

 

  

 

  

 

  

Construction and land development

$

2,710

$

2,685

$

3,520

$

2,710

$

3,520

Commercial real estate - owner occupied

 

7,786

 

6,969

 

9,267

 

7,786

 

9,267

Commercial real estate - non-owner occupied

 

4,174

 

3,026

 

1,992

 

4,174

 

1,992

Multifamily real estate

113

113

33

113

33

Commercial & Industrial

 

2,062

 

1,908

 

1,592

 

2,062

 

1,592

Residential 1-4 Family - Commercial

 

2,445

 

4,200

 

5,743

 

2,445

 

5,743

Residential 1-4 Family - Consumer

 

12,150

 

13,489

 

12,620

 

12,150

 

12,620

Residential 1-4 Family - Revolving

 

3,723

 

3,726

 

3,664

 

3,723

 

3,664

Auto

 

255

 

179

 

517

 

255

 

517

Consumer

54

104

75

54

75

Nonaccrual loans

$

35,472

$

36,399

$

39,023

$

35,472

$

39,023

Foreclosed property

 

1,696

 

1,696

 

4,159

 

1,696

 

4,159

Total nonperforming assets (NPAs)

$

37,168

$

38,095

$

43,182

$

37,168

$

43,182

Construction and land development

$

304

$

186

$

93

$

304

$

93

Commercial real estate - owner occupied

 

1,886

 

2,276

 

1,726

 

1,886

 

1,726

Commercial real estate - non-owner occupied

1,175

827

168

1,175

168

Multifamily real estate

359

359

Commercial & Industrial

 

1,256

 

1,088

 

604

 

1,256

 

604

Residential 1-4 Family - Commercial

 

1,091

 

759

 

5,298

 

1,091

 

5,298

Residential 1-4 Family - Consumer

 

2,462

 

2,725

 

4,495

 

2,462

 

4,495

Residential 1-4 Family - Revolving

 

2,474

 

561

 

2,276

 

2,474

 

2,276

Auto

 

209

 

168

 

315

 

209

 

315

Consumer

 

173

 

156

 

327

 

173

 

327

Loans ≥ 90 days and still accruing

$

11,030

$

8,746

$

15,661

$

11,030

$

15,661

Total NPAs and loans ≥ 90 days

$

48,198

$

46,841

$

58,843

$

48,198

$

58,843

NPAs / total outstanding loans

0.28

%  

 

0.28

%  

 

0.30

%

 

0.28

%  

 

0.30

%

NPAs / total adjusted loans(9)

0.29

%  

0.30

%  

0.34

%  

0.29

%  

0.34

%  

NPAs / total assets

 

0.19

%  

 

0.19

%  

 

0.22

%

 

0.19

%  

 

0.22

%

ALLL / nonaccrual loans

 

286.98

%  

 

324.90

%  

 

446.20

%

 

286.98

%  

 

446.20

%

ALLL/ nonperforming assets

 

273.89

%  

 

310.44

%  

 

403.23

%

 

273.89

%  

 

403.23

%

 

  

 

  

 

  

 

  

 

  


As of & For Three Months Ended

 

As of & For Nine Months Ended

    

09/30/21

    

06/30/21

    

09/30/20

 

09/30/21

09/30/20

 

Past Due Detail (6)

(unaudited)

(unaudited)

(unaudited)

 

(unaudited)

(unaudited)

 

Construction and land development

$

744

$

798

$

2,625

$

744

$

2,625

Commercial real estate - owner occupied

 

735

 

1,450

 

4,924

 

735

 

4,924

Commercial real estate - non-owner occupied

 

1,302

 

1,501

 

1,291

 

1,302

 

1,291

Multifamily real estate

 

 

156

 

 

 

Commercial & Industrial

 

11,089

 

948

 

4,322