Atlantic Union Bankshares Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING AND REVENUE (Tables)

SEGMENT REPORTING AND REVENUE (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

The following tables present the Company’s operating segment results for the three months and six months ended June 30, 2023 and 2022 (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other		Total
Three Months Ended June 30, 2023
Net interest income	$	66,133	$	63,749	$	22,202	$	152,084
Provision for credit losses		6,054		32		(17)		6,069
Net interest income after provision for credit losses		60,079		63,717		22,219		146,015
Noninterest income		8,861		12,287		3,049		24,197
Noninterest expenses		41,236		56,539		7,886		105,661
Income before income taxes	$	27,704	$	19,465	$	17,382	$	64,551
Three Months Ended June 30, 2022
Net interest income	$	72,930	$	51,037	$	14,800	$	138,767
Provision for credit losses		2,757		775		27		3,559
Net interest income after provision for credit losses		70,173		50,262		14,773		135,208
Noninterest income		8,327		16,577		13,382		38,286
Noninterest expenses		38,401		55,092		5,275		98,768
Income before income taxes	$	40,099	$	11,747	$	22,880	$	74,726



	Wholesale Banking		Consumer Banking		Corporate Other		Total
Six Months Ended June 30, 2023
Net interest income	$	133,674	$	126,893	$	44,961	$	305,528
Provision for credit losses		16,543		1,371		6		17,920
Net interest income after provision for credit losses		117,131		125,522		44,955		287,608
Noninterest income		16,275		24,466		(6,917)		33,824
Noninterest expenses		83,550		113,594		16,790		213,934
Income before income taxes	$	49,856	$	36,394	$	21,248	$	107,498
Six Months Ended June 30, 2022
Net interest income	$	144,354	$	99,169	$	26,175	$	269,698
Provision for credit losses		4,374		1,958		27		6,359
Net interest income after provision for credit losses		139,980		97,211		26,148		263,339
Noninterest income		17,514		33,196		17,729		68,439
Noninterest expenses		78,410		110,426		15,253		204,089
Income before income taxes	$	79,084	$	19,981	$	28,624	$	127,689

Schedule of operating segment results - balance sheet metrics

The following table presents the Company’s operating segment results for key balance sheet metrics as of June 30, 2023 and December 31, 2022 (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other		Total
As of June 30, 2023
LHFI, net of deferred fees and costs ⁽¹⁾	$	12,078,442	$	3,001,369	$	(12,881)	$	15,066,930
Goodwill		639,180		286,031		—		925,211
Deposits		6,190,224		9,580,892		640,871		16,411,987
As of December 31, 2022
LHFI, net of deferred fees and costs ⁽¹⁾⁽²⁾	$	11,476,258	$	2,990,017	$	(17,133)	$	14,449,142
Goodwill ⁽³⁾		639,180		286,031		—		925,211
Deposits ⁽⁴⁾		6,128,729		9,724,598		78,350		15,931,677

⁽¹⁾Corporate Other includes acquisition accounting fair value adjustments.

⁽²⁾Wholesale Banking includes a $136.6 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.

⁽³⁾Wholesale Banking includes a $9.6 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.

⁽⁴⁾Wholesale Banking includes a $258.7 million reallocation from Consumer Banking due to the January 1, 2023 organizational change discussed above.

Schedule of Disaggregation of Revenue

Noninterest income disaggregated by major source for the three and six months ended June 30, 2023 and 2022, consisted of the following (dollars in thousands):


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Noninterest income:
Deposit Service Charges ⁽¹⁾:
Overdraft fees	$	4,839	$	5,305	$	9,662	$	10,299
Maintenance fees & other		3,279		2,735		6,358		5,338
Other service charges, commissions, and fees ⁽¹⁾		1,693		1,709		3,439		3,364
Interchange fees⁽¹⁾		2,459		2,268		4,784		4,078
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees		3,103		3,299		6,209		6,690
Registered advisor management fees		—		2,438		—		5,088
Brokerage management fees		1,256		1,202		2,411		2,416
Mortgage banking income		449		2,200		1,303		5,317
Gain (loss) on sale of securities		2		(2)		(13,398)		(2)
Bank owned life insurance income		2,870		2,716		5,698		5,413
Loan-related interest rate swap fees		2,316		2,600		3,755		6,460
Other operating income ⁽²⁾		1,931		11,816		3,603		13,978
Total noninterest income	$	24,197	$	38,286	$	33,824	$	68,439

⁽¹⁾ Income within scope of ASC 606, Revenue from Contracts with Customers.

⁽²⁾ Includes a $9.1 million gain related to the sale of DHFB for the three and six months ended June 30, 2022.

Disaggregated noninterest income by segment

The following tables present noninterest income disaggregated by reportable operating segment for the three and six months ended June 30, 2023 and 2022 (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other⁽¹⁾⁽²⁾		Total
Three Months Ended June 30, 2023
Noninterest income:
Deposit service charges	$	2,109	$	6,009	$	—	$	8,118
Other service charges and fees		296		1,397		—		1,693
Fiduciary and asset management fees		3,033		1,326		—		4,359
Mortgage banking income		—		449		—		449
Other income		3,423		3,106		3,049		9,578
Total noninterest income	$	8,861	$	12,287	$	3,049	$	24,197
Three Months Ended June 30, 2022
Noninterest income:
Deposit service charges	$	1,641	$	6,399	$	—	$	8,040
Other service charges and fees		395		1,314		—		1,709
Fiduciary and asset management fees		3,224		3,715		—		6,939
Mortgage banking income		—		2,200		—		2,200
Other income		3,067		2,949		13,382		19,398
Total noninterest income	$	8,327	$	16,577	$	13,382	$	38,286



	Wholesale Banking		Consumer Banking		Corporate Other⁽¹⁾⁽²⁾		Total
Six Months Ended June 30, 2023
Noninterest income:
Deposit service charges	$	4,084	$	11,936	$	—	$	16,020
Other service charges and fees		741		2,698		—		3,439
Fiduciary and asset management fees		6,067		2,553		—		8,620
Mortgage banking income		—		1,303		—		1,303
Other income		5,383		5,976		(6,917)		4,442
Total noninterest income	$	16,275	$	24,466	$	(6,917)	$	33,824
Six Months Ended June 30, 2022
Noninterest income:
Deposit service charges	$	3,207	$	12,430	$	—	$	15,637
Other service charges and fees		830		2,534		—		3,364
Fiduciary and asset management fees		6,540		7,654		—		14,194
Mortgage banking income		—		5,317		—		5,317
Other income		6,937		5,261		17,729		29,927
Total noninterest income	$	17,514	$	33,196	$	17,729	$	68,439

⁽¹⁾ For the three months and six months ended June 30, 2022, other income primarily includes a $9.1 million gain related to the sale of DHFB and income from BOLI.

⁽²⁾ For the three months ended June 30, 2023, other income primarily consists of income from BOLI. For the six months ended June 30, 2023, other income primarily includes $13.4 million of losses incurred on the sale of AFS securities and income from BOLI.