Atlantic Union Bankshares Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

DERIVATIVES

DERIVATIVES

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

11. DERIVATIVES

The Company has cash flow and fair value hedges that are derivatives designated as accounting hedges. The Company also has derivatives not designated as accounting hedges that include foreign exchange contracts, interest rate contracts, and Risk Participation Agreements. The Company’s mortgage banking derivatives do not have a material impact to the Company and are not included within the derivatives disclosures noted below.

The following table summarizes key elements of the Company’s derivative instruments as of December 31, (dollars in thousands):


	2024						2023
			Derivative ⁽²⁾						Derivative ⁽²⁾
	Notional or						Notional or
	Contractual						Contractual
	Amount ⁽¹⁾		Assets		Liabilities		Amount ⁽¹⁾		Assets		Liabilities
Derivatives designated as accounting hedges:
Interest rate contracts: ⁽³⁾
Cash flow hedges	$	900,000	$	—	$	6,467	$	900,000	$	1,419	$	4,359
Fair value hedges:
Loans		72,807		1,469		—		78,072		1,633		—
Securities		50,000		1,157		—		50,000		1,329		—
Derivatives not designated as accounting hedges:
Interest rate contracts⁽³⁾⁽⁴⁾		7,529,494		94,772		192,683		6,595,975		88,646		202,202
Foreign exchange contracts		12,449		47		398		12,726		16		1,219

Cash collateral (received)/pledged ⁽⁵⁾	$	—	$	(15,685)	$	—	$	—	$	(14,879)	$	—

⁽¹⁾Notional amounts are not recorded on the Company’s Consolidated Balance Sheets and are generally used only as a

basis on which interest and other payments are determined.

⁽²⁾Balances represent fair value of derivative financial instruments.

⁽³⁾The Company’s cleared derivatives are classified as a single-unit of accounting, resulting in the fair value of the

designated swap being reduced by the variation margin, which is treated as settlement of the related derivatives fair

value for accounting purposes and is reported on a net basis.

⁽⁴⁾Includes Risk Participation Agreements.

⁽⁵⁾The fair value of derivative assets and liabilities is presented on a gross basis. The Company has not applied

collateral netting; as such the amounts of cash collateral received or pledged are not offset against the derivative

assets and derivative liabilities in the Consolidated Balance Sheets.

The following table summarizes the carrying value of the Company’s hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of December 31, (dollars in thousands):

2024

2023

Cumulative

Amount of Basis

Adjustments

Included in the

Carrying Amount

Carrying

Carrying Amount

Carrying

of Hedged

Amount of the

of Hedged

Amount of the

Assets/(Liabilities)

Hedged

Assets/(Liabilities)

Hedged

Amount ⁽¹⁾

Assets/(Liabilities)

Amount ⁽¹⁾

Assets/(Liabilities)

Line items on the Consolidated Balance Sheets in which the hedged item is included:

Securities available-for-sale ^{(1) (2)}

73,603

(1,150)

82,203

(1,323)

Loans⁽³⁾

72,807

(10,063)

78,072

(9,392)

⁽¹⁾ These amounts include the amortized cost basis of the investment securities designated in hedging relationships for

which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. The amount of

the designated hedged item at December 31, 2024 and 2023 totaled $50 million.

⁽²⁾ Carrying value represents amortized cost.

⁽³⁾ The fair value of the swaps associated with the derivative related to hedged items at December 31, 2024 and 2023 was

an unrealized gain of $10.2 million and $9.6 million, respectively.