Atlantic Union Bankshares Corporation (the “Company” or “Atlantic
Union”) (Nasdaq: AUB) reported net income available to common
shareholders of $59.3 million and basic and diluted earnings per
common share of $0.79 for the second quarter ended June 30, 2022.
Adjusted operating earnings available to common shareholders(1)
were $51.3 million, diluted operating earnings per common share(1)
were $0.69, and pre-tax pre-provision adjusted operating earnings
available to common shareholders(1) were $66.2 million for the
second quarter ended June 30, 2022.
“Atlantic Union Bankshares delivered solid second quarter
results with upper single digit annualized loan growth, strong
credit metrics, and an expanding net interest margin,” said John C.
Asbury, president and chief executive officer of Atlantic Union.
“We continue to be mindful of the current economic uncertainties,
but remain encouraged by our competitive positioning, market
dynamics, asset sensitivity and the economic strength in our
footprint, which gives us confidence in our ability to achieve our
top tier financial targets in the second half of the year.”
“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.”
Share Repurchase Program
On December 10, 2021, the Company’s Board of Directors
authorized a share repurchase program (the “Repurchase Program”) to
purchase up to $100 million of the Company’s common stock through
December 9, 2022 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
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
As part of the Repurchase Program, approximately 1.3 million shares
(or $48.2 million) were repurchased during the six months ended
June 30, 2022, and of these shares approximately 649,000 shares (or
$23.2 million) were repurchased during the second quarter of 2022.
At June 30, 2022, approximately $51.8 million of share repurchases
remain available under the Repurchase Program.
NET INTEREST INCOME
For the second quarter of 2022, net interest income was $138.8
million, an increase of $7.9 million from $130.9 million for the
first quarter of 2022. Net interest income (FTE)(1) was $142.3
million in the second quarter of 2022, an increase of approximately
$8.1 million from the first quarter of 2022. The increases in net
interest income and net interest income (FTE)(1) were primarily
driven by higher interest income due to average loan growth from
the prior quarter, increases in loan yields on the Company’s
variable rate loans due to higher market interest rates and the
additional day count in the second quarter, partially offset by
increases in deposit and borrowing costs. The second quarter net
interest margin increased 18 basis points to 3.15% from the
previous quarter, and the net interest margin (FTE)(1) increased 20
basis points during the same period to 3.24%. The cost of funds
increased by 4 basis points to 22 basis points, compared to the
first quarter of 2022, driven by higher deposit and borrowing costs
as noted above.
The Company’s net interest margin (FTE) (1) includes the impact
of acquisition accounting fair value adjustments. Net accretion
related to acquisition accounting was $2.7 million for the quarter
ended June 30, 2022, representing an increase of $621,000 from the
prior quarter. The first and second quarters of 2022 and the
remaining estimated net accretion impact are reflected in the
following table (dollars in thousands):
|
Loan |
|
Deposit |
|
Borrowings |
|
|
|
|
Accretion |
|
Amortization |
|
Amortization |
|
Total |
For the quarter ended March 31, 2022 |
$ |
2,253 |
|
|
$ |
(10 |
) |
|
$ |
(203 |
) |
|
$ |
2,040 |
|
For the quarter ended
June 30, 2022 |
|
2,879 |
|
|
|
(11 |
) |
|
|
(207 |
) |
|
|
2,661 |
|
For the remaining six months
of 2022 (estimated) |
|
2,026 |
|
|
|
(23 |
) |
|
|
(418 |
) |
|
|
1,585 |
|
For the years ending
(estimated): |
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
3,390 |
|
|
|
(31 |
) |
|
|
(852 |
) |
|
|
2,507 |
|
2024 |
|
2,769 |
|
|
|
(4 |
) |
|
|
(877 |
) |
|
|
1,888 |
|
2025 |
|
2,162 |
|
|
|
(1 |
) |
|
|
(900 |
) |
|
|
1,261 |
|
2026 |
|
1,727 |
|
|
|
— |
|
|
|
(926 |
) |
|
|
801 |
|
2027 |
|
1,317 |
|
|
|
— |
|
|
|
(953 |
) |
|
|
364 |
|
Thereafter |
|
6,532 |
|
|
|
— |
|
|
|
(7,993 |
) |
|
|
(1,461 |
) |
Total remaining acquisition accounting fair value adjustments at
June 30, 2022 |
$ |
19,923 |
|
|
$ |
(59 |
) |
|
$ |
(12,919 |
) |
|
$ |
6,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
OverviewDuring the second quarter of 2022,
nonperforming assets (“NPAs”) as a percentage of loans remained low
at 0.23% at June 30, 2022. Accruing past due loan levels as a
percentage of total loans held for investment at June 30, 2022
totaled 15 basis points, which was a 7 basis point decrease as
compared to March 31, 2022, and 3 basis points lower than at June
30, 2021. Net charge-off levels remained low at 0.03% of total
average loans for the second quarter of 2022. The allowance for
credit losses (“ACL”) totaled $113.2 million at June 30, 2022, a
$2.6 million increase from the prior quarter.
Nonperforming AssetsAt June 30, 2022, NPAs totaled $31.1
million, an increase of $407,000 from March 31, 2022. The following
table shows a summary of NPA balances at the quarter ended (dollars
in thousands):
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
Nonaccrual loans |
$ |
29,070 |
|
|
$ |
29,032 |
|
|
$ |
31,100 |
|
|
$ |
35,472 |
|
|
$ |
36,399 |
|
Foreclosed properties |
|
2,065 |
|
|
|
1,696 |
|
|
|
1,696 |
|
|
|
1,696 |
|
|
|
1,696 |
|
Total nonperforming
assets |
$ |
31,135 |
|
|
$ |
30,728 |
|
|
$ |
32,796 |
|
|
$ |
37,168 |
|
|
$ |
38,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
|
2021 |
Beginning Balance |
$ |
29,032 |
|
|
$ |
31,100 |
|
|
$ |
35,472 |
|
|
$ |
36,399 |
|
|
$ |
41,866 |
|
Net customer payments |
|
(2,472 |
) |
|
|
(4,132 |
) |
|
|
(5,068 |
) |
|
|
(4,719 |
) |
|
|
(9,307 |
) |
Additions |
|
3,203 |
|
|
|
2,087 |
|
|
|
1,294 |
|
|
|
4,177 |
|
|
|
4,162 |
|
Charge-offs |
|
(311 |
) |
|
|
(23 |
) |
|
|
(598 |
) |
|
|
(385 |
) |
|
|
(183 |
) |
Loans returning to accruing status |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(153 |
) |
Transfers to foreclosed property |
|
(382 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Ending Balance |
$ |
29,070 |
|
|
$ |
29,032 |
|
|
$ |
31,100 |
|
|
$ |
35,472 |
|
|
$ |
36,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due LoansPast due loans still accruing
interest totaled $20.4 million or 0.15% of total loans held for
investment at June 30, 2022, compared to $29.6 million or
0.22% of total loans held for investment at March 31, 2022, and
$25.1 million or 0.18% of total loans held for investment at June
30, 2021. Of the total past due loans still accruing interest,
$4.6 million or 0.03% of total loans held for investment were loans
past due 90 days or more at June 30, 2022, compared to
$8.2 million or 0.06% of total loans held for investment at March
31, 2022, and $8.7 million or 0.06% of total loans held for
investment at June 30, 2021.
Net Charge-offsNet charge-offs were $939,000 or
0.03% of total average loans on an annualized basis for the
quarter ended June 30, 2022, compared to insignificant net
charge-offs of less than 0.01% for the first quarter of 2022 and
the second quarter of 2021. On a year to date basis through June
30, 2022, net charge-offs were $935,000 or 0.01% of total average
loans (annualized).
Provision for Credit LossesFor the quarter
ended June 30, 2022, the Company recorded a provision for credit
losses of $3.6 million, compared to a provision for credit losses
of $2.8 million in the previous quarter, and a negative provision
for credit losses of $27.4 million recorded during the same quarter
in 2021. The provision for credit losses for the second quarter of
2022 reflected a provision of $2.6 million for loan and securities
losses and $1.0 million for unfunded commitments.
Allowance for Credit Losses At June 30, 2022,
the ACL was $113.2 million and included an allowance for loan and
lease losses (“ALLL”) of $104.2 million and a reserve for unfunded
commitments (“RUC”) of $9.0 million. The ACL at June 30, 2022
increased $2.6 million from March 31, 2022, primarily due to
increased uncertainty in the macroeconomic outlook and the impact
of loan growth in the second quarter of 2022.
The ACL as a percentage of total loans increased slightly to
0.83% at June 30, 2022, compared to 0.82% at March 31, 2022. The
ALLL as a percentage of total loans was 0.76% at June 30, 2022,
consistent with March 31, 2022.
NONINTEREST INCOME
Noninterest income increased $8.1 million to $38.3 million for
the quarter ended June 30, 2022 from $30.2 million in the prior
quarter, primarily due to a $9.1 million pre-tax gain resulting
from the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”),
a $458,000 increase in interchange fees due to an increase in
transaction and dollar volumes, and a $444,000 increase in service
charges on deposit accounts. These noninterest category increases
were partially offset by a decrease in loan interest rate swap fee
income of $1.3 million due to a decrease in average swap fees, a
decrease in unrealized gains on equity method investments of $1.1
million, and lower mortgage banking income of $917,000, resulting
from declining gain on sale margins.
NONINTEREST EXPENSE
Noninterest expense decreased $6.5 million to $98.8 million for
the quarter ended June 30, 2022 from $105.3 million in the prior
quarter, primarily driven by a decrease in restructuring expenses,
as the prior quarter reflected $5.5 million related to the
Company’s restructure activity that included the consolidation of
16 branches that was completed in March 2022. In addition, salaries
and benefits expense declined by $3.0 million during the second
quarter, due to decreases in payroll related taxes and 401(k)
contribution expenses, which are typically seasonally higher in the
first quarter. Partially offsetting these expense reductions was an
increase of $590,000 in professional services expenses, an increase
of $350,000 in Teammate related expenses (included as a component
of other expenses) associated with the re-opening of our corporate
offices, an increase in marketing and advertising expenses of
$339,000, and an increase in FDIC assessment premiums of
$281,000.
INCOME TAXES
The effective tax rate for the three months ended June
30, 2022 was 16.7%, compared to 17.5% for the three months
ended March 31, 2022, reflecting the impact of discrete items
related to the sale of DHFB.
BALANCE SHEET
At June 30, 2022, total assets were $19.7 billion, a
decrease of $120.6 million or approximately 2.4% (annualized) from
March 31, 2022, and a decrease of $327.6 million or
approximately 1.6% from June 30, 2021. Total assets
declined from the prior quarter due to a decline in the investment
securities portfolio of $207.1 million primarily due to the impact
of market interest rate increases on the market value of the AFS
securities portfolio, partially offset by the net impact of the
decrease in cash and cash equivalents of $154.9 million, which was
deployed to fund $196.1 million in loan growth during the
quarter.
At June 30, 2022, loans held for investment (net of
deferred fees and costs) totaled $13.7 billion, including $21.7
million in Paycheck Protection Program (“PPP”) loans, an increase
of $196.1 million or 5.8% (annualized) from $13.5 billion,
including $67.4 million in PPP loans, at March 31, 2022.
Average loans held for investment (net of deferred fees and costs)
totaled $13.5 billion at June 30, 2022, an increase of $224.7
million or 6.8% (annualized) from the prior quarter. Excluding the
effects of the PPP(1), adjusted loans held for investment (net of
deferred fees and costs) at June 30, 2022 increased $241.8 million
or 7.2% (annualized) from March 31, 2022 and adjusted average loans
increased $284.4 million or 8.6% (annualized) from the prior
quarter. At June 30, 2022 loans held for investment (net
of deferred fees and costs) decreased $42.5 million or 0.3% from
June 30, 2021, and quarterly average loans decreased $446.4
million or 3.2% from the same period in the prior year. Excluding
the effects of the PPP(1), adjusted loans held for investment (net
of deferred fees and costs) at June 30, 2022 increased $795.1
million or 6.2% from the same period in the prior year, and
adjusted quarterly average loans during the second quarter of 2022
increased $697.8 million or 5.5% from the same period in the prior
year.
At June 30, 2022, total deposits were $16.1 billion, a
decrease of $355.6 million or approximately 8.7% (annualized) from
March 31, 2022. Average deposits at June 30, 2022 also
decreased from the prior quarter by $323.3 million or 7.9%
(annualized). The decline in deposits was primarily driven by a
public funds client that used available deposit funds to repay
higher cost, longer-term debt obligations during the second
quarter. Total deposits at June 30, 2022 decreased $530.6 million
or 3.2% from June 30, 2021, and quarterly average deposits at
June 30, 2022 decreased $309.5 million or 1.9% from the same period
in the prior year. The decrease in total deposits from the prior
year was primarily due to a decline in money market account
balances of $494.7 million and maturing time deposits.
The following table shows the Company’s capital ratios at the
quarters ended:
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2022 |
|
2021 |
|
2021 |
|
Common equity Tier 1 capital
ratio (2) |
9.96 |
% |
9.86 |
% |
10.56 |
% |
Tier 1 capital ratio (2) |
11.00 |
% |
10.91 |
% |
11.68 |
% |
Total capital ratio (2) |
13.85 |
% |
13.79 |
% |
14.05 |
% |
Leverage ratio (Tier 1 capital
to average assets) (2) |
9.26 |
% |
9.07 |
% |
9.20 |
% |
Common equity to total
assets |
11.32 |
% |
11.79 |
% |
12.91 |
% |
Tangible common equity to
tangible assets (1) |
6.78 |
% |
7.21 |
% |
8.40 |
% |
_______________
For the quarter ended June 30, 2022, the Company’s common equity
to total assets capital ratio and the tangible common equity to
tangible assets capital ratio decreased from the prior quarter and
prior year primarily due to the unrealized losses on the AFS
securities portfolio recorded in other comprehensive income due to
market interest rate increases in the second quarter of 2022.
During the second quarter of 2022, the Company declared and paid
a quarterly dividend on the outstanding shares of Series A
Preferred Stock of $171.88 per share (equivalent to $0.43 per
outstanding depositary share), consistent with the first quarter of
2022 and the second quarter of 2021. During the second quarter of
2022, the Company also declared and paid cash dividends of $0.28
per common share, consistent with the first quarter of 2022 and the
second quarter of 2021.
_______________(1) These are financial measures not calculated
in accordance with generally accepted accounting principles
(“GAAP”). For a reconciliation of these non-GAAP financial
measures, see Alternative Performance Measures (non-GAAP) section
of the Key Financial Results.
(2) All ratios at June 30, 2022 are estimates and subject
to change pending the Company’s filing of its FR Y9-C. All other
periods are presented as filed.
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 114 branches and approximately 130
ATMs located throughout Virginia, and in portions of Maryland and
North Carolina. Certain non-bank financial services affiliates of
Atlantic Union Bank include: Atlantic Union Equipment Finance,
Inc., which provides equipment financing; Atlantic Union Financial
Consultants, LLC, which provides brokerage services; and Union
Insurance Group, LLC, which offers various lines of insurance
products.
Sale of Dixon, Hubard, Feinour & Brown,
Inc.
Effective June 30, 2022, the Company transferred its ownership
interest in DHFB, which was formerly a subsidiary of Atlantic Union
Bank (the “Bank”) to Cary Street Partners Financial LLC (“CSP”) in
exchange for a minority ownership interest in CSP.
SECOND QUARTER 2022 EARNINGS RELEASE CONFERENCE
CALL
The Company will hold a conference call and webcast for analysts
on Thursday, July 21, 2022 at 9:00 a.m. Eastern Time during
which management will review the financial results for the three
and six months ended June 30, 2022 and provide an update on recent
activities.
Interested parties may participate in the call by registering at
the following URL:
https://register.vevent.com/register/BI251d953edb164e91bd37f98e5106e347.
The conference call provider has changed its dial-in procedures, so
all attendees must utilize the link to receive an audio dial-in
number and their Access PIN.
Management will conduct a listen-only webcast with accompanying
slides, which can be found at:
https://edge.media-server.com/mmc/p/8t2h7c2u.
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, 2022, 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 are statements that include, without limitation,
statements made in Mr. Asbury’s quotes, statements regarding the
Company’s outlook on future economic conditions and the impacts of
the current economic uncertainties and statements that include,
projections, predictions, expectations, or beliefs about future
events or results, including the Company’s ability to meet its top
tier financial targets, or otherwise are not statements of
historical fact. Such forward-looking statements are based on
certain assumptions as of the time they are made, and are
inherently subject to known and unknown risks, uncertainties, and
other factors, some of which cannot be predicted or quantified,
that may cause actual results, performance, or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such statements are often characterized
by the use of qualified words (and their derivatives) such as
“expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,”
“intend,” “will,” “may,” “view,” “opportunity,” “potential,” 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 future results,
performance, or achievements of, or trends affecting, the Company
will not differ materially from any projected future results,
performance, achievements or trends expressed or implied by such
forward-looking statements. Actual future results, performance,
achievements or trends may differ materially from historical
results or those anticipated depending on a variety of factors,
including, but not limited to the effects of or changes in:
- market interest rates and the impacts on macroeconomic
conditions, customer and client behavior, the Company’s funding
costs and the Company’s loan and securities portfolio;
- inflation and its impacts on economic growth and customer and
client behavior;
- 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;
- monetary and fiscal policies of the U.S. government, including
policies of the U.S. Department of the Treasury and the Federal
Reserve;
- the quality or composition of 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;
- real estate values in the Bank’s lending area;
- an insufficient ACL;
- changes in accounting principles, including without limitation,
relating to the CECL methodology;
- 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, geopolitical conflicts (such as the ongoing conflict between
Russia and Ukraine) 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 the
COVID-19 pandemic, 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;
- potential claims, damages, and fines related to litigation or
government actions;
- the effects of changes in federal, state or local tax laws and
regulations;
- 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, 2021 and related
disclosures in other filings, which have been filed with the U.S.
Securities and Exchange Commission (“SEC”) and are available on the
SEC’s website at www.sec.gov. All risk factors and uncertainties
described herein should be considered in evaluating forward-looking
statements, all 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
the press release, and undue reliance should not be placed on such
forward-looking statements. Forward-looking statements speak only
as of the date they are made. The Company does not intend or assume
any obligation to update, revise or clarify any forward-looking
statements that may be made from time to time by or on behalf of
the Company, whether as a result of new information, future events
or otherwise.
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Results of
Operations |
|
|
|
|
|
|
|
|
|
|
Interest and dividend income |
$ |
148,755 |
|
$ |
138,456 |
|
$ |
150,852 |
|
|
$ |
287,212 |
|
$ |
298,525 |
|
|
Interest expense |
|
9,988 |
|
|
7,525 |
|
|
10,304 |
|
|
|
17,514 |
|
|
23,079 |
|
|
Net interest income |
|
138,767 |
|
|
130,931 |
|
|
140,548 |
|
|
|
269,698 |
|
|
275,446 |
|
|
Provision for credit losses |
|
3,559 |
|
|
2,800 |
|
|
(27,414 |
) |
|
|
6,359 |
|
|
(41,037 |
) |
|
Net interest income after provision for credit losses |
|
135,208 |
|
|
128,131 |
|
|
167,962 |
|
|
|
263,339 |
|
|
316,483 |
|
|
Noninterest income |
|
38,286 |
|
|
30,153 |
|
|
28,466 |
|
|
|
68,439 |
|
|
59,451 |
|
|
Noninterest expenses |
|
98,768 |
|
|
105,321 |
|
|
91,971 |
|
|
|
204,089 |
|
|
203,908 |
|
|
Income before income taxes |
|
74,726 |
|
|
52,963 |
|
|
104,457 |
|
|
|
127,689 |
|
|
172,026 |
|
|
Income tax expense |
|
12,500 |
|
|
9,273 |
|
|
19,073 |
|
|
|
21,773 |
|
|
30,453 |
|
|
Net income |
|
62,226 |
|
|
43,690 |
|
|
85,384 |
|
|
|
105,916 |
|
|
141,573 |
|
|
Dividends on preferred stock |
|
2,967 |
|
|
2,967 |
|
|
2,967 |
|
|
|
5,934 |
|
|
5,934 |
|
|
Net income available to common shareholders |
$ |
59,259 |
|
$ |
40,723 |
|
$ |
82,417 |
|
|
$ |
99,982 |
|
$ |
135,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earned on earning assets (FTE) (1) |
$ |
152,332 |
|
$ |
141,792 |
|
$ |
153,996 |
|
|
$ |
294,124 |
|
$ |
304,722 |
|
|
Net interest income (FTE) (1) |
|
142,344 |
|
|
134,267 |
|
|
143,692 |
|
|
|
276,610 |
|
|
281,643 |
|
|
Total revenue (FTE) (1) |
|
180,630 |
|
|
164,420 |
|
|
172,158 |
|
|
|
345,049 |
|
|
341,094 |
|
|
Pre-tax pre-provision adjusted operating earnings (8) |
|
69,205 |
|
|
61,271 |
|
|
77,021 |
|
|
|
130,476 |
|
|
146,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share, diluted |
$ |
0.79 |
|
$ |
0.54 |
|
$ |
1.05 |
|
|
$ |
1.33 |
|
$ |
1.72 |
|
|
Return on average assets (ROA) |
|
1.27 |
% |
|
0.89 |
% |
|
1.72 |
|
% |
|
1.08 |
% |
|
1.44 |
|
% |
Return on average equity (ROE) |
|
10.21 |
% |
|
6.66 |
% |
|
12.46 |
|
% |
|
8.37 |
% |
|
10.44 |
|
% |
Return on average tangible common equity (ROTCE) (2) (3) |
|
18.93 |
% |
|
11.53 |
% |
|
21.44 |
|
% |
|
14.97 |
% |
|
18.06 |
|
% |
Efficiency ratio |
|
55.78 |
% |
|
65.38 |
% |
|
54.42 |
|
% |
|
60.36 |
% |
|
60.89 |
|
% |
Efficiency ratio (FTE) (1) |
|
54.68 |
% |
|
64.06 |
% |
|
53.42 |
|
% |
|
59.15 |
% |
|
59.78 |
|
% |
Net interest margin |
|
3.15 |
% |
|
2.97 |
% |
|
3.15 |
|
% |
|
3.06 |
% |
|
3.12 |
|
% |
Net interest margin (FTE) (1) |
|
3.24 |
% |
|
3.04 |
% |
|
3.23 |
|
% |
|
3.14 |
% |
|
3.19 |
|
% |
Yields on earning assets (FTE) (1) |
|
3.46 |
% |
|
3.22 |
% |
|
3.46 |
|
% |
|
3.34 |
% |
|
3.46 |
|
% |
Cost of interest-bearing liabilities |
|
0.35 |
% |
|
0.26 |
% |
|
0.35 |
|
% |
|
0.30 |
% |
|
0.39 |
|
% |
Cost of deposits |
|
0.15 |
% |
|
0.11 |
% |
|
0.18 |
|
% |
|
0.13 |
% |
|
0.20 |
|
% |
Cost of funds |
|
0.22 |
% |
|
0.18 |
% |
|
0.23 |
|
% |
|
0.20 |
% |
|
0.27 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Measures (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating earnings |
$ |
54,244 |
|
$ |
48,041 |
|
$ |
85,367 |
|
|
$ |
102,285 |
|
$ |
153,833 |
|
|
Adjusted operating earnings available to common shareholders |
|
51,277 |
|
|
45,074 |
|
|
82,400 |
|
|
|
96,351 |
|
|
147,899 |
|
|
Adjusted operating earnings per common share, diluted |
$ |
0.69 |
|
$ |
0.60 |
|
$ |
1.05 |
|
|
$ |
1.28 |
|
$ |
1.88 |
|
|
Adjusted operating ROA |
|
1.10 |
% |
|
0.98 |
% |
|
1.72 |
|
% |
|
1.04 |
% |
|
1.57 |
|
% |
Adjusted operating ROE |
|
8.90 |
% |
|
7.32 |
% |
|
12.46 |
|
% |
|
8.08 |
% |
|
11.35 |
|
% |
Adjusted operating ROTCE (2) (3) |
|
16.47 |
% |
|
12.69 |
% |
|
21.44 |
|
% |
|
14.45 |
% |
|
19.63 |
|
% |
Adjusted operating efficiency ratio (FTE) (1)(7) |
|
55.88 |
% |
|
58.86 |
% |
|
51.36 |
|
% |
|
57.34 |
% |
|
53.08 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share, basic |
$ |
0.79 |
|
$ |
0.54 |
|
$ |
1.05 |
|
|
$ |
1.33 |
|
$ |
1.72 |
|
|
Earnings per common share, diluted |
|
0.79 |
|
|
0.54 |
|
|
1.05 |
|
|
|
1.33 |
|
|
1.72 |
|
|
Cash dividends paid per common share |
|
0.28 |
|
|
0.28 |
|
|
0.28 |
|
|
|
0.56 |
|
|
0.53 |
|
|
Market value per share |
|
33.92 |
|
|
36.69 |
|
|
36.22 |
|
|
|
33.92 |
|
|
36.22 |
|
|
Book value per common share |
|
29.95 |
|
|
31.12 |
|
|
33.30 |
|
|
|
29.95 |
|
|
33.30 |
|
|
Tangible book value per common share (2) |
|
17.07 |
|
|
18.10 |
|
|
20.59 |
|
|
|
17.07 |
|
|
20.59 |
|
|
Price to earnings ratio, diluted |
|
10.68 |
|
|
16.75 |
|
|
8.60 |
|
|
|
12.65 |
|
|
10.44 |
|
|
Price to book value per common share ratio |
|
1.13 |
|
|
1.18 |
|
|
1.09 |
|
|
|
1.13 |
|
|
1.09 |
|
|
Price to tangible book value per common share ratio (2) |
|
1.99 |
|
|
2.03 |
|
|
1.76 |
|
|
|
1.99 |
|
|
1.76 |
|
|
Weighted average common shares outstanding, basic |
|
74,847,899 |
|
|
75,544,644 |
|
|
78,819,697 |
|
|
|
75,194,347 |
|
|
78,841,462 |
|
|
Weighted average common shares outstanding, diluted |
|
74,849,871 |
|
|
75,556,127 |
|
|
78,843,724 |
|
|
|
75,201,326 |
|
|
78,863,859 |
|
|
Common shares outstanding at end of period |
|
74,688,314 |
|
|
75,335,956 |
|
|
77,928,948 |
|
|
|
74,688,314 |
|
|
77,928,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital ratio (5) |
|
9.96 |
% |
|
9.86 |
% |
|
10.56 |
% |
|
9.96 |
% |
|
10.56 |
% |
Tier 1 capital ratio (5) |
|
11.00 |
% |
|
10.91 |
% |
|
11.68 |
% |
|
11.00 |
% |
|
11.68 |
% |
Total capital ratio (5) |
|
13.85 |
% |
|
13.79 |
% |
|
14.05 |
% |
|
13.85 |
% |
|
14.05 |
% |
Leverage ratio (Tier 1 capital to average assets) (5) |
|
9.26 |
% |
|
9.07 |
% |
|
9.20 |
% |
|
9.26 |
% |
|
9.20 |
% |
Common equity to total assets |
|
11.32 |
% |
|
11.79 |
% |
|
12.91 |
% |
|
11.32 |
% |
|
12.91 |
% |
Tangible common equity to tangible assets (2) |
|
6.78 |
% |
|
7.21 |
% |
|
8.40 |
% |
|
6.78 |
% |
|
8.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Condition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,661,799 |
|
$ |
19,782,430 |
|
$ |
19,989,356 |
|
$ |
19,661,799 |
|
$ |
19,989,356 |
|
Loans held for investment (net of deferred fees and costs) |
|
13,655,408 |
|
|
13,459,349 |
|
|
13,697,929 |
|
|
13,655,408 |
|
|
13,697,929 |
|
Securities |
|
3,820,078 |
|
|
4,027,185 |
|
|
3,491,669 |
|
|
3,820,078 |
|
|
3,491,669 |
|
Earning Assets |
|
17,578,979 |
|
|
17,731,089 |
|
|
17,824,283 |
|
|
17,578,979 |
|
|
17,824,283 |
|
Goodwill |
|
925,211 |
|
|
935,560 |
|
|
935,560 |
|
|
925,211 |
|
|
935,560 |
|
Amortizable intangibles, net |
|
31,621 |
|
|
40,273 |
|
|
49,917 |
|
|
31,621 |
|
|
49,917 |
|
Deposits |
|
16,128,635 |
|
|
16,484,223 |
|
|
16,659,219 |
|
|
16,128,635 |
|
|
16,659,219 |
|
Borrowings |
|
797,948 |
|
|
504,032 |
|
|
380,079 |
|
|
797,948 |
|
|
380,079 |
|
Stockholders' equity |
|
2,391,476 |
|
|
2,498,335 |
|
|
2,747,597 |
|
|
2,391,476 |
|
|
2,747,597 |
|
Tangible common equity (2) |
|
1,268,287 |
|
|
1,356,145 |
|
|
1,595,763 |
|
|
1,268,287 |
|
|
1,595,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment, net of deferred fees and costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
988,379 |
|
$ |
969,059 |
|
$ |
838,722 |
|
$ |
988,379 |
|
$ |
838,722 |
|
Commercial real estate - owner occupied |
|
1,965,702 |
|
|
2,007,671 |
|
|
2,069,658 |
|
|
1,965,702 |
|
|
2,069,658 |
|
Commercial real estate - non-owner occupied |
|
3,860,819 |
|
|
3,875,681 |
|
|
3,712,607 |
|
|
3,860,819 |
|
|
3,712,607 |
|
Multifamily real estate |
|
762,502 |
|
|
723,940 |
|
|
860,081 |
|
|
762,502 |
|
|
860,081 |
|
Commercial & Industrial |
|
2,595,891 |
|
|
2,540,680 |
|
|
2,990,622 |
|
|
2,595,891 |
|
|
2,990,622 |
|
Residential 1-4 Family - Commercial |
|
553,771 |
|
|
569,801 |
|
|
637,485 |
|
|
553,771 |
|
|
637,485 |
|
Residential 1-4 Family - Consumer |
|
865,174 |
|
|
824,163 |
|
|
823,355 |
|
|
865,174 |
|
|
823,355 |
|
Residential 1-4 Family - Revolving |
|
583,073 |
|
|
568,403 |
|
|
559,014 |
|
|
583,073 |
|
|
559,014 |
|
Auto |
|
525,301 |
|
|
499,855 |
|
|
411,073 |
|
|
525,301 |
|
|
411,073 |
|
Consumer |
|
180,045 |
|
|
171,875 |
|
|
195,036 |
|
|
180,045 |
|
|
195,036 |
|
Other Commercial |
|
774,751 |
|
|
708,221 |
|
|
600,276 |
|
|
774,751 |
|
|
600,276 |
|
Total loans held for investment |
$ |
13,655,408 |
|
$ |
13,459,349 |
|
$ |
13,697,929 |
|
$ |
13,655,408 |
|
$ |
13,697,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking accounts |
$ |
3,943,303 |
|
$ |
4,121,257 |
|
$ |
3,777,540 |
|
$ |
3,943,303 |
|
$ |
3,777,540 |
|
Money market accounts |
|
3,956,050 |
|
|
4,151,155 |
|
|
4,450,724 |
|
|
3,956,050 |
|
|
4,450,724 |
|
Savings accounts |
|
1,165,577 |
|
|
1,166,922 |
|
|
1,032,171 |
|
|
1,165,577 |
|
|
1,032,171 |
|
Time deposits of $250,000 and over |
|
360,158 |
|
|
365,796 |
|
|
566,180 |
|
|
360,158 |
|
|
566,180 |
|
Other time deposits |
|
1,342,009 |
|
|
1,309,030 |
|
|
1,610,032 |
|
|
1,342,009 |
|
|
1,610,032 |
|
Time deposits |
|
1,702,167 |
|
|
1,674,826 |
|
|
2,176,212 |
|
|
1,702,167 |
|
|
2,176,212 |
|
Total interest-bearing deposits |
$ |
10,767,097 |
|
$ |
11,114,160 |
|
$ |
11,436,647 |
|
$ |
10,767,097 |
|
$ |
11,436,647 |
|
Demand deposits |
|
5,361,538 |
|
|
5,370,063 |
|
|
5,222,572 |
|
|
5,361,538 |
|
|
5,222,572 |
|
Total deposits |
$ |
16,128,635 |
|
$ |
16,484,223 |
|
$ |
16,659,219 |
|
$ |
16,128,635 |
|
$ |
16,659,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Averages |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
19,719,402 |
|
$ |
19,920,368 |
|
$ |
19,922,978 |
|
$ |
19,819,330 |
|
$ |
19,805,569 |
|
Loans held for investment (net of deferred fees and costs) |
|
13,525,529 |
|
|
13,300,789 |
|
|
13,971,939 |
|
|
13,413,780 |
|
|
14,017,777 |
|
Loans held for sale |
|
20,634 |
|
|
14,636 |
|
|
36,790 |
|
|
17,652 |
|
|
49,834 |
|
Securities |
|
3,930,912 |
|
|
4,198,582 |
|
|
3,420,329 |
|
|
4,064,007 |
|
|
3,315,435 |
|
Earning assets |
|
17,646,470 |
|
|
17,885,018 |
|
|
17,868,938 |
|
|
17,765,085 |
|
|
17,781,005 |
|
Deposits |
|
16,191,056 |
|
|
16,514,375 |
|
|
16,500,541 |
|
|
16,351,822 |
|
|
16,288,772 |
|
Time deposits |
|
1,667,378 |
|
|
1,766,657 |
|
|
2,270,217 |
|
|
1,716,743 |
|
|
2,379,716 |
|
Interest-bearing deposits |
|
10,824,465 |
|
|
11,286,277 |
|
|
11,446,768 |
|
|
11,054,095 |
|
|
11,468,826 |
|
Borrowings |
|
765,886 |
|
|
511,722 |
|
|
399,855 |
|
|
639,506 |
|
|
486,784 |
|
Interest-bearing liabilities |
|
11,590,351 |
|
|
11,797,999 |
|
|
11,846,623 |
|
|
11,693,601 |
|
|
11,955,610 |
|
Stockholders' equity |
|
2,445,045 |
|
|
2,660,984 |
|
|
2,747,864 |
|
|
2,552,418 |
|
|
2,733,980 |
|
Tangible common equity (2) |
|
1,304,536 |
|
|
1,517,325 |
|
|
1,594,311 |
|
|
1,410,342 |
|
|
1,578,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses (ACL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, Allowance for loan and lease losses (ALLL) |
$ |
102,591 |
|
$ |
99,787 |
|
$ |
142,911 |
|
|
$ |
99,787 |
|
$ |
160,540 |
|
|
Add: Recoveries |
|
1,018 |
|
|
1,513 |
|
|
1,876 |
|
|
|
2,531 |
|
|
4,345 |
|
|
Less: Charge-offs |
|
1,957 |
|
|
1,509 |
|
|
1,945 |
|
|
|
3,466 |
|
|
5,586 |
|
|
Add: Provision for loan losses |
|
2,532 |
|
|
2,800 |
|
|
(24,581 |
) |
|
|
5,332 |
|
|
(41,038 |
) |
|
Ending balance, ALLL |
$ |
104,184 |
|
$ |
102,591 |
|
$ |
118,261 |
|
|
$ |
104,184 |
|
$ |
118,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, Reserve for unfunded commitment (RUC) |
$ |
8,000 |
|
$ |
8,000 |
|
$ |
12,833 |
|
|
$ |
8,000 |
|
$ |
10,000 |
|
|
Add: Provision for unfunded commitments |
|
1,000 |
|
|
— |
|
|
(2,833 |
) |
|
|
1,000 |
|
|
— |
|
|
Ending balance, RUC |
$ |
9,000 |
|
$ |
8,000 |
|
$ |
10,000 |
|
|
$ |
9,000 |
|
$ |
10,000 |
|
|
Total ACL |
$ |
113,184 |
|
$ |
110,591 |
|
$ |
128,261 |
|
|
$ |
113,184 |
|
$ |
128,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL / total outstanding loans |
|
0.83 |
% |
|
0.82 |
% |
|
0.94 |
|
% |
|
0.83 |
% |
|
0.94 |
|
% |
ACL / total adjusted loans(9) |
|
0.83 |
% |
|
0.83 |
% |
|
1.00 |
|
% |
|
0.83 |
% |
|
1.00 |
|
% |
ALLL / total outstanding loans |
|
0.76 |
% |
|
0.76 |
% |
|
0.86 |
|
% |
|
0.76 |
% |
|
0.86 |
|
% |
ALLL / total adjusted loans(9) |
|
0.76 |
% |
|
0.77 |
% |
|
0.92 |
|
% |
|
0.76 |
% |
|
0.92 |
|
% |
Net charge-offs / total average loans |
|
0.03 |
% |
|
0.00 |
% |
|
0.00 |
|
% |
|
0.01 |
% |
|
0.02 |
|
% |
Net charge-offs / total adjusted average loans(9) |
|
0.03 |
% |
|
0.00 |
% |
|
0.00 |
|
% |
|
0.01 |
% |
|
0.02 |
|
% |
Provision for loan losses/ total average loans |
|
0.08 |
% |
|
0.09 |
% |
|
(0.71 |
) |
% |
|
0.08 |
% |
|
(0.59 |
) |
% |
Provision for loan losses/ total adjusted average loans(9) |
|
0.08 |
% |
|
0.09 |
% |
|
(0.77 |
) |
% |
|
0.08 |
% |
|
(0.65 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
581 |
|
$ |
869 |
|
$ |
2,685 |
|
|
$ |
581 |
|
$ |
2,685 |
|
|
Commercial real estate - owner occupied |
|
4,996 |
|
|
4,865 |
|
|
6,969 |
|
|
|
4,996 |
|
|
6,969 |
|
|
Commercial real estate - non-owner occupied |
|
3,301 |
|
|
3,287 |
|
|
3,026 |
|
|
|
3,301 |
|
|
3,026 |
|
|
Multifamily real estate |
|
— |
|
|
— |
|
|
113 |
|
|
|
— |
|
|
113 |
|
|
Commercial & Industrial |
|
2,728 |
|
|
1,975 |
|
|
1,908 |
|
|
|
2,728 |
|
|
1,908 |
|
|
Residential 1-4 Family - Commercial |
|
2,031 |
|
|
2,239 |
|
|
4,200 |
|
|
|
2,031 |
|
|
4,200 |
|
|
Residential 1-4 Family - Consumer |
|
12,084 |
|
|
12,039 |
|
|
13,489 |
|
|
|
12,084 |
|
|
13,489 |
|
|
Residential 1-4 Family - Revolving |
|
3,069 |
|
|
3,371 |
|
|
3,726 |
|
|
|
3,069 |
|
|
3,726 |
|
|
Auto |
|
279 |
|
|
333 |
|
|
179 |
|
|
|
279 |
|
|
179 |
|
|
Consumer |
|
1 |
|
|
54 |
|
|
104 |
|
|
|
1 |
|
|
104 |
|
|
Nonaccrual loans |
$ |
29,070 |
|
$ |
29,032 |
|
$ |
36,399 |
|
|
$ |
29,070 |
|
$ |
36,399 |
|
|
Foreclosed property |
|
2,065 |
|
|
1,696 |
|
|
1,696 |
|
|
|
2,065 |
|
|
1,696 |
|
|
Total nonperforming assets (NPAs) |
$ |
31,135 |
|
$ |
30,728 |
|
$ |
38,095 |
|
|
$ |
31,135 |
|
$ |
38,095 |
|
|
Construction and land development |
$ |
1 |
|
$ |
1 |
|
$ |
186 |
|
|
$ |
1 |
|
$ |
186 |
|
|
Commercial real estate - owner occupied |
|
792 |
|
|
2,396 |
|
|
2,276 |
|
|
|
792 |
|
|
2,276 |
|
|
Commercial real estate - non-owner occupied |
|
642 |
|
|
1,735 |
|
|
827 |
|
|
|
642 |
|
|
827 |
|
|
Commercial & Industrial |
|
322 |
|
|
763 |
|
|
1,088 |
|
|
|
322 |
|
|
1,088 |
|
|
Residential 1-4 Family - Commercial |
|
184 |
|
|
878 |
|
|
759 |
|
|
|
184 |
|
|
759 |
|
|
Residential 1-4 Family - Consumer |
|
1,112 |
|
|
1,147 |
|
|
2,725 |
|
|
|
1,112 |
|
|
2,725 |
|
|
Residential 1-4 Family - Revolving |
|
997 |
|
|
1,065 |
|
|
561 |
|
|
|
997 |
|
|
561 |
|
|
Auto |
|
134 |
|
|
192 |
|
|
168 |
|
|
|
134 |
|
|
168 |
|
|
Consumer |
|
79 |
|
|
70 |
|
|
156 |
|
|
|
79 |
|
|
156 |
|
|
Other Commercial |
|
329 |
|
|
— |
|
|
— |
|
|
|
329 |
|
|
— |
|
|
Loans ≥ 90 days and still accruing |
$ |
4,592 |
|
$ |
8,247 |
|
$ |
8,746 |
|
|
$ |
4,592 |
|
$ |
8,746 |
|
|
Total NPAs and loans ≥ 90 days |
$ |
35,727 |
|
$ |
38,975 |
|
$ |
46,841 |
|
|
$ |
35,727 |
|
$ |
46,841 |
|
|
NPAs / total outstanding loans |
|
0.23 |
% |
|
0.23 |
% |
|
0.28 |
|
% |
|
0.23 |
% |
|
0.28 |
|
% |
NPAs / total adjusted loans(9) |
|
0.23 |
% |
|
0.23 |
% |
|
0.30 |
|
% |
|
0.23 |
% |
|
0.30 |
|
% |
NPAs / total assets |
|
0.16 |
% |
|
0.16 |
% |
|
0.19 |
|
% |
|
0.16 |
% |
|
0.19 |
|
% |
ALLL / nonaccrual loans |
|
358.39 |
% |
|
353.37 |
% |
|
324.90 |
|
% |
|
358.39 |
% |
|
324.90 |
|
% |
ALLL/ nonperforming assets |
|
334.62 |
% |
|
333.87 |
% |
|
310.44 |
|
% |
|
334.62 |
% |
|
310.44 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Past Due Detail (6) |
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
645 |
|
$ |
170 |
|
$ |
798 |
|
$ |
645 |
|
$ |
798 |
|
Commercial real estate - owner occupied |
|
1,374 |
|
|
5,081 |
|
|
1,450 |
|
|
1,374 |
|
|
1,450 |
|
Commercial real estate - non-owner occupied |
|
511 |
|
|
79 |
|
|
1,501 |
|
|
511 |
|
|
1,501 |
|
Multifamily real estate |
|
— |
|
|
124 |
|
|
156 |
|
|
— |
|
|
156 |
|
Commercial & Industrial |
|
2,581 |
|
|
1,382 |
|
|
948 |
|
|
2,581 |
|
|
948 |
|
Residential 1-4 Family - Commercial |
|
1,944 |
|
|
827 |
|
|
710 |
|
|
1,944 |
|
|
710 |
|
Residential 1-4 Family - Consumer |
|
594 |
|
|
5,890 |
|
|
764 |
|
|
594 |
|
|
764 |
|
Residential 1-4 Family - Revolving |
|
1,368 |
|
|
1,157 |
|
|
919 |
|
|
1,368 |
|
|
919 |
|
Auto |
|
1,841 |
|
|
1,508 |
|
|
1,333 |
|
|
1,841 |
|
|
1,333 |
|
Consumer |
|
361 |
|
|
467 |
|
|
545 |
|
|
361 |
|
|
545 |
|
Other Commercial |
|
11 |
|
|
1,270 |
|
|
375 |
|
|
11 |
|
|
375 |
|
Loans 30-59 days past due |
$ |
11,230 |
|
$ |
17,955 |
|
$ |
9,499 |
|
$ |
11,230 |
|
$ |
9,499 |
|
Construction and land development |
$ |
— |
|
$ |
— |
|
$ |
310 |
|
$ |
— |
|
$ |
310 |
|
Commercial real estate - owner occupied |
|
807 |
|
|
— |
|
|
2,008 |
|
|
807 |
|
|
2,008 |
|
Commercial real estate - non-owner occupied |
|
— |
|
|
223 |
|
|
78 |
|
|
— |
|
|
78 |
|
Commercial & Industrial |
|
546 |
|
|
745 |
|
|
1,733 |
|
|
546 |
|
|
1,733 |
|
Residential 1-4 Family - Commercial |
|
474 |
|
|
251 |
|
|
565 |
|
|
474 |
|
|
565 |
|
Residential 1-4 Family - Consumer |
|
1,646 |
|
|
1,018 |
|
|
992 |
|
|
1,646 |
|
|
992 |
|
Residential 1-4 Family - Revolving |
|
731 |
|
|
651 |
|
|
678 |
|
|
731 |
|
|
678 |
|
Auto |
|
213 |
|
|
183 |
|
|
165 |
|
|
213 |
|
|
165 |
|
Consumer |
|
210 |
|
|
201 |
|
|
297 |
|
|
210 |
|
|
297 |
|
Other Commercial |
|
— |
|
|
95 |
|
|
— |
|
|
— |
|
|
— |
|
Loans 60-89 days past due |
$ |
4,627 |
|
$ |
3,367 |
|
$ |
6,826 |
|
$ |
4,627 |
|
$ |
6,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due and still accruing |
$ |
20,449 |
|
$ |
29,569 |
|
$ |
25,071 |
|
$ |
20,449 |
|
$ |
25,071 |
|
Past Due and still accruing / total loans |
|
0.15 |
% |
|
0.22 |
% |
|
0.18 |
% |
|
0.15 |
% |
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled Debt Restructurings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing |
$ |
10,662 |
|
$ |
12,157 |
|
$ |
13,053 |
|
$ |
10,662 |
|
$ |
13,053 |
|
Nonperforming |
|
7,298 |
|
|
7,552 |
|
|
6,231 |
|
|
7,298 |
|
|
6,231 |
|
Total troubled debt restructurings |
$ |
17,960 |
|
$ |
19,709 |
|
$ |
19,284 |
|
$ |
17,960 |
|
$ |
19,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternative
Performance Measures (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE)
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
138,767 |
|
$ |
130,931 |
|
$ |
140,548 |
|
$ |
269,698 |
|
$ |
275,446 |
|
FTE adjustment |
|
3,577 |
|
|
3,336 |
|
|
3,144 |
|
|
6,912 |
|
|
6,197 |
|
Net interest income (FTE) (non-GAAP) |
$ |
142,344 |
|
$ |
134,267 |
|
$ |
143,692 |
|
$ |
276,610 |
|
$ |
281,643 |
|
Noninterest income (GAAP) |
|
38,286 |
|
|
30,153 |
|
|
28,466 |
|
|
68,439 |
|
|
59,451 |
|
Total revenue (FTE) (non-GAAP) |
$ |
180,630 |
|
$ |
164,420 |
|
$ |
172,158 |
|
$ |
345,049 |
|
$ |
341,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
17,646,470 |
|
$ |
17,885,018 |
|
$ |
17,868,938 |
|
$ |
17,765,085 |
|
$ |
17,781,005 |
|
Net interest margin |
|
3.15 |
% |
|
2.97 |
% |
|
3.15 |
% |
|
3.06 |
% |
|
3.12 |
% |
Net interest margin (FTE) |
|
3.24 |
% |
|
3.04 |
% |
|
3.23 |
% |
|
3.14 |
% |
|
3.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Assets (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending assets (GAAP) |
$ |
19,661,799 |
|
$ |
19,782,430 |
|
$ |
19,989,356 |
|
$ |
19,661,799 |
|
$ |
19,989,356 |
|
Less: Ending goodwill |
|
925,211 |
|
|
935,560 |
|
|
935,560 |
|
|
925,211 |
|
|
935,560 |
|
Less: Ending amortizable intangibles |
|
31,621 |
|
|
40,273 |
|
|
49,917 |
|
|
31,621 |
|
|
49,917 |
|
Ending tangible assets (non-GAAP) |
$ |
18,704,967 |
|
$ |
18,806,597 |
|
$ |
19,003,879 |
|
$ |
18,704,967 |
|
$ |
19,003,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending equity (GAAP) |
$ |
2,391,476 |
|
$ |
2,498,335 |
|
$ |
2,747,597 |
|
$ |
2,391,476 |
|
$ |
2,747,597 |
|
Less: Ending goodwill |
|
925,211 |
|
|
935,560 |
|
|
935,560 |
|
|
925,211 |
|
|
935,560 |
|
Less: Ending amortizable intangibles |
|
31,621 |
|
|
40,273 |
|
|
49,917 |
|
|
31,621 |
|
|
49,917 |
|
Less: Perpetual preferred stock |
|
166,357 |
|
|
166,357 |
|
|
166,357 |
|
|
166,357 |
|
|
166,357 |
|
Ending tangible common equity (non-GAAP) |
$ |
1,268,287 |
|
$ |
1,356,145 |
|
$ |
1,595,763 |
|
$ |
1,268,287 |
|
$ |
1,595,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity (GAAP) |
$ |
2,445,045 |
|
$ |
2,660,984 |
|
$ |
2,747,864 |
|
$ |
2,552,418 |
|
$ |
2,733,980 |
|
Less: Average goodwill |
|
935,446 |
|
|
935,560 |
|
|
935,560 |
|
|
935,503 |
|
|
935,560 |
|
Less: Average amortizable intangibles |
|
38,707 |
|
|
41,743 |
|
|
51,637 |
|
|
40,217 |
|
|
53,533 |
|
Less: Average perpetual preferred stock |
|
166,356 |
|
|
166,356 |
|
|
166,356 |
|
|
166,356 |
|
|
166,356 |
|
Average tangible common equity (non-GAAP) |
$ |
1,304,536 |
|
$ |
1,517,325 |
|
$ |
1,594,311 |
|
$ |
1,410,342 |
|
$ |
1,578,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROTCE (2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders (GAAP) |
$ |
59,259 |
|
$ |
40,723 |
|
$ |
82,417 |
|
$ |
99,982 |
|
$ |
135,639 |
|
Plus: Amortization of intangibles, tax effected |
|
2,303 |
|
|
2,401 |
|
|
2,819 |
|
|
4,704 |
|
|
5,765 |
|
Net income available to common shareholders before amortization of
intangibles (non-GAAP) |
$ |
61,562 |
|
$ |
43,124 |
|
$ |
85,236 |
|
$ |
104,686 |
|
$ |
141,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity (ROTCE) |
|
18.93 |
% |
|
11.53 |
% |
|
21.44 |
% |
|
14.97 |
% |
|
18.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Operating Measures (4) |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
62,226 |
|
|
$ |
43,690 |
|
$ |
85,384 |
|
|
$ |
105,916 |
|
|
$ |
141,573 |
|
|
Plus: Net loss related to balance sheet repositioning, net of
tax |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
11,609 |
|
|
Less: (Loss) gain on sale of securities, net of tax |
|
(2 |
) |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
62 |
|
|
Less: Gain on sale of DHFB, net of tax |
|
7,984 |
|
|
|
— |
|
|
— |
|
|
|
7,984 |
|
|
|
— |
|
|
Plus: Branch closing and facility consolidation costs, net of
tax |
|
— |
|
|
|
4,351 |
|
|
(17 |
) |
|
|
4,351 |
|
|
|
713 |
|
|
Adjusted operating earnings (non-GAAP) |
|
54,244 |
|
|
|
48,041 |
|
|
85,367 |
|
|
|
102,285 |
|
|
|
153,833 |
|
|
Less: Dividends on preferred stock |
|
2,967 |
|
|
|
2,967 |
|
|
2,967 |
|
|
|
5,934 |
|
|
|
5,934 |
|
|
Adjusted operating earnings available to common shareholders
(non-GAAP) |
$ |
51,277 |
|
|
$ |
45,074 |
|
$ |
82,400 |
|
|
$ |
96,351 |
|
|
$ |
147,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
98,768 |
|
|
$ |
105,321 |
|
$ |
91,971 |
|
|
$ |
204,089 |
|
|
$ |
203,908 |
|
|
Less: Amortization of intangible assets |
|
2,915 |
|
|
|
3,039 |
|
|
3,568 |
|
|
|
5,954 |
|
|
|
7,298 |
|
|
Less: Losses related to balance sheet repositioning |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
14,695 |
|
|
Less: Branch closing and facility consolidation costs |
|
— |
|
|
|
5,508 |
|
|
(22 |
) |
|
|
5,508 |
|
|
|
902 |
|
|
Adjusted operating noninterest expense (non-GAAP) |
$ |
95,853 |
|
|
$ |
96,774 |
|
$ |
88,425 |
|
|
$ |
192,627 |
|
|
$ |
181,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
$ |
38,286 |
|
|
$ |
30,153 |
|
$ |
28,466 |
|
|
$ |
68,439 |
|
|
$ |
59,451 |
|
|
Less: (Loss) gain on sale of securities |
|
(2 |
) |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
78 |
|
|
Less: Gain on sale of DHFB |
|
9,082 |
|
|
|
— |
|
|
— |
|
|
|
9,082 |
|
|
|
— |
|
|
Adjusted operating noninterest income (non-GAAP) |
$ |
29,206 |
|
|
$ |
30,153 |
|
$ |
28,466 |
|
|
$ |
59,359 |
|
|
$ |
59,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (FTE) (non-GAAP) (1) |
$ |
142,344 |
|
|
$ |
134,267 |
|
$ |
143,692 |
|
|
$ |
276,610 |
|
|
$ |
281,643 |
|
|
Adjusted operating noninterest income (non-GAAP) |
|
29,206 |
|
|
|
30,153 |
|
|
28,466 |
|
|
|
59,359 |
|
|
|
59,373 |
|
|
Total adjusted revenue (FTE) (non-GAAP) (1) |
$ |
171,550 |
|
|
$ |
164,420 |
|
$ |
172,158 |
|
|
$ |
335,969 |
|
|
$ |
341,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
55.78 |
|
% |
|
65.38 |
% |
|
54.42 |
|
% |
|
60.36 |
|
% |
|
60.89 |
|
% |
Efficiency ratio (FTE) (1) |
|
54.68 |
|
% |
|
64.06 |
% |
|
53.42 |
|
% |
|
59.15 |
|
% |
|
59.78 |
|
% |
Adjusted operating efficiency ratio (FTE) (1)(7) |
|
55.88 |
|
% |
|
58.86 |
% |
|
51.36 |
|
% |
|
57.34 |
|
% |
|
53.08 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ROTCE (2)(3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating earnings available to common shareholders
(non-GAAP) |
$ |
51,277 |
|
|
$ |
45,074 |
|
$ |
82,400 |
|
|
$ |
96,351 |
|
|
$ |
147,899 |
|
|
Plus: Amortization of intangibles, tax effected |
|
2,303 |
|
|
|
2,401 |
|
|
2,819 |
|
|
|
4,704 |
|
|
|
5,765 |
|
|
Adjusted operating earnings available to common shareholders before
amortization of intangibles (non-GAAP) |
$ |
53,580 |
|
|
$ |
47,475 |
|
$ |
85,219 |
|
|
$ |
101,054 |
|
|
$ |
153,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average tangible common equity (non-GAAP) |
$ |
1,304,536 |
|
|
$ |
1,517,325 |
|
$ |
1,594,311 |
|
|
$ |
1,410,342 |
|
|
$ |
1,578,531 |
|
|
Adjusted operating return on average tangible common equity
(non-GAAP) |
|
16.47 |
|
% |
|
12.69 |
% |
|
21.44 |
|
% |
|
14.45 |
|
% |
|
19.63 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision adjusted operating earnings
(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
62,226 |
|
|
$ |
43,690 |
|
$ |
85,384 |
|
|
$ |
105,916 |
|
|
$ |
141,573 |
|
|
Plus: Provision for credit losses |
|
3,559 |
|
|
|
2,800 |
|
|
(27,414 |
) |
|
|
6,359 |
|
|
|
(41,037 |
) |
|
Plus: Income tax expense |
|
12,500 |
|
|
|
9,273 |
|
|
19,073 |
|
|
|
21,773 |
|
|
|
30,453 |
|
|
Plus: Net loss related to balance sheet repositioning |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
14,695 |
|
|
Less: (Loss) gain on sale of securities |
|
(2 |
) |
|
|
— |
|
|
— |
|
|
|
(2 |
) |
|
|
78 |
|
|
Less: Gain on sale of DHFB |
|
9,082 |
|
|
|
— |
|
|
— |
|
|
|
9,082 |
|
|
|
— |
|
|
Plus: Branch closing and facility consolidation costs |
|
— |
|
|
|
5,508 |
|
|
(22 |
) |
|
|
5,508 |
|
|
|
902 |
|
|
Pre-tax pre-provision adjusted operating earnings (non-GAAP) |
$ |
69,205 |
|
|
$ |
61,271 |
|
$ |
77,021 |
|
|
$ |
130,476 |
|
|
$ |
146,508 |
|
|
Less: Dividends on preferred stock |
|
2,967 |
|
|
|
2,967 |
|
|
2,967 |
|
|
|
5,934 |
|
|
|
5,934 |
|
|
Pre-tax pre-provision adjusted operating earnings available to
common shareholders (non-GAAP) |
$ |
66,238 |
|
|
$ |
58,304 |
|
$ |
74,054 |
|
|
$ |
124,542 |
|
|
$ |
140,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding, diluted |
|
74,849,871 |
|
|
|
75,556,127 |
|
|
78,843,724 |
|
|
|
75,201,326 |
|
|
|
78,863,859 |
|
|
Pre-tax pre-provision earnings per common share, diluted |
$ |
0.88 |
|
|
$ |
0.77 |
|
$ |
0.94 |
|
|
$ |
1.66 |
|
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Loans (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment (net of deferred fees and costs)
(GAAP) |
$ |
13,655,408 |
|
|
$ |
13,459,349 |
|
$ |
13,697,929 |
|
|
$ |
13,655,408 |
|
|
$ |
13,697,929 |
|
|
Less: PPP adjustments (net of deferred fees and costs) |
|
21,749 |
|
|
|
67,444 |
|
|
859,386 |
|
|
|
21,749 |
|
|
|
859,386 |
|
|
Total adjusted loans (non-GAAP) |
$ |
13,633,659 |
|
|
$ |
13,391,905 |
|
$ |
12,838,543 |
|
|
$ |
13,633,659 |
|
|
$ |
12,838,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for investment (net of deferred fees and costs)
(GAAP) |
$ |
13,525,529 |
|
|
$ |
13,300,789 |
|
$ |
13,971,939 |
|
|
$ |
13,413,780 |
|
|
$ |
14,017,777 |
|
|
Less: Average PPP adjustments (net of deferred fees and costs) |
|
43,391 |
|
|
|
103,041 |
|
|
1,187,641 |
|
|
|
73,052 |
|
|
|
1,248,147 |
|
|
Total adjusted average loans (non-GAAP) |
$ |
13,482,138 |
|
|
$ |
13,197,748 |
|
$ |
12,784,298 |
|
|
$ |
13,340,728 |
|
|
$ |
12,769,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESKEY FINANCIAL RESULTS
(UNAUDITED)(Dollars in thousands, except share data)
|
As of & For Three Months Ended |
|
As of & For Six Months Ended |
|
|
06/30/22 |
|
03/31/22 |
|
06/30/21 |
|
06/30/22 |
|
06/30/21 |
|
Mortgage Origination
Held for Sale Volume |
|
|
|
|
|
|
|
|
|
|
Refinance Volume |
$ |
14,916 |
|
$ |
33,201 |
|
$ |
73,330 |
|
$ |
48,116 |
|
$ |
192,248 |
|
Purchase Volume |
|
84,551 |
|
|
58,295 |
|
|
88,747 |
|
|
142,846 |
|
|
156,704 |
|
Total Mortgage loan
originations held for sale |
$ |
99,467 |
|
$ |
91,496 |
|
$ |
162,077 |
|
$ |
190,962 |
|
$ |
348,952 |
|
% of originations held for
sale that are refinances |
|
15.0 |
% |
|
36.3 |
% |
|
45.2 |
% |
|
25.2 |
% |
|
55.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets under management (AUM) |
$ |
4,415,537 |
|
$ |
6,519,974 |
|
$ |
6,396,010 |
|
$ |
4,415,537 |
|
$ |
6,396,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period full-time employees |
|
1,856 |
|
|
1,853 |
|
|
1,884 |
|
|
1,856 |
|
|
1,884 |
|
Number of full-service branches |
|
114 |
|
|
114 |
|
|
129 |
|
|
114 |
|
|
129 |
|
Number of automatic transaction machines (ATMs) |
|
131 |
|
|
132 |
|
|
149 |
|
|
131 |
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________(1) These are non-GAAP financial
measures. Net interest income (FTE) and total adjusted revenue
(FTE), which are used in computing net interest margin (FTE),
efficiency ratio (FTE) and adjusted operating efficiency ratio
(FTE), provide valuable additional insight into the net interest
margin and the efficiency ratio by adjusting for differences in tax
treatment of interest income sources. The entire FTE adjustment is
attributable to interest income on earning assets, which is used in
computing yield on earning assets. Interest expense and the related
cost of interest-bearing liabilities and cost of funds ratios are
not affected by the FTE components.(2) These are
non-GAAP financial measures. Tangible assets and tangible common
equity are used in the calculation of certain profitability,
capital, and per share ratios. The Company believes tangible
assets, tangible common equity and the related ratios are
meaningful measures of capital adequacy because they provide a
meaningful base for period-to-period and company-to-company
comparisons, which the Company believes will assist investors in
assessing the capital of the Company and its ability to absorb
potential losses.(3) These are non-GAAP financial
measures. The Company believes that ROTCE is a meaningful
supplement to GAAP financial measures and useful to investors
because it measures the performance of a business consistently
across time without regard to whether components of the business
were acquired or developed internally.(4) These
are non-GAAP financial measures. Adjusted operating measures
exclude the gains or losses related to balance sheet repositioning
(principally composed of gains and losses on debt extinguishment),
gains or losses on sale of securities, gain on the sale of DHFB, as
well as branch closing and facility consolidation costs
(principally composed of real estate, leases and other assets write
downs, as well as severance associated with branch closing and
corporate expense reduction initiatives). The Company believes
these non-GAAP adjusted measures provide investors with important
information about the continuing economic results of the
organization’s operations. Prior periods reflect adjustments for
previously announced branch closing and corporate expense reduction
initiatives.(5) All ratios at June 30, 2022 are
estimates and subject to change pending the Company’s filing of its
FR Y9-C. All other periods are presented as
filed.(6) These balances reflect the impact of the
CARES Act and the joint guidance issued by the five federal bank
regulatory agencies and the Conference of State Bank Supervisors on
March 22, 2020, as subsequently revised on April 7, 2020, which
provides relief for TDR designations and also provides guidance on
past due reporting for modified loans.(7) The
adjusted operating efficiency ratio (FTE) excludes the amortization
of intangible assets, gains or losses on sale of securities, gain
on the sale of DHFB, gains or losses related to balance sheet
repositioning (principally composed of gains and losses on debt
extinguishment), as well as branch closing and facility
consolidation costs. This measure is similar to the measure
utilized by the Company when analyzing corporate performance and is
also similar to the measure utilized for incentive compensation.
The Company believes this adjusted measure provides investors with
important information about the combined economic results of the
organization’s operations. Prior periods reflect adjustments for
previously announced branch closing and corporate expense reduction
initiatives.(8) This is a non-GAAP financial
measure. Pre-tax pre-provision adjusted earnings excludes the
provision for credit losses, which can fluctuate significantly from
period-to-period under the CECL methodology, income tax expense,
gains or losses related to balance sheet repositioning (principally
composed of gains and losses on debt extinguishment), gains or
losses on sale of securities, gain on the sale of DHFB, as well as
branch closing and facility consolidation costs. The Company
believes this adjusted measure provides investors with important
information about the combined economic results of the
organization’s operations. Prior periods reflect adjustments for
previously announced branch closing and corporate expense reduction
initiatives.(9) These are non-GAAP financial
measures. PPP adjustment impact excludes the unforgiven portion of
PPP loans. The Company believes loans held for investment (net of
deferred fees and costs), excluding PPP is useful to investors as
it provides more clarity on the Company’s organic growth. The
Company also believes that the related non-GAAP financial measures
of past due loans still accruing interest as a percentage of total
loans held for investment (net of deferred fees and costs),
excluding PPP, are useful to investors as loans originated under
the PPP carry a Small Business Administration (“SBA”) guarantee.
The Company believes that the ALLL as a percentage of loans held
for investment (net of deferred fees and costs), excluding PPP, is
useful to investors because of the size of the Company’s PPP
originations and the impact of the embedded credit enhancement
provided by the SBA guarantee.
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Dollars in thousands, except share data)
|
June 30, |
|
December 31, |
|
June 30, |
|
2022 |
|
2021 |
|
2021 |
ASSETS |
(unaudited) |
|
|
(audited) |
|
|
|
(unaudited) |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
158,902 |
|
|
$ |
180,963 |
|
|
$ |
268,682 |
|
Interest-bearing deposits in other banks |
|
82,086 |
|
|
|
618,714 |
|
|
|
593,271 |
|
Federal funds sold |
|
388 |
|
|
|
2,824 |
|
|
|
3,217 |
|
Total cash and cash equivalents |
|
241,376 |
|
|
|
802,501 |
|
|
|
865,170 |
|
Securities available for sale, at fair value |
|
2,951,421 |
|
|
|
3,481,650 |
|
|
|
2,873,405 |
|
Securities held to maturity, at carrying
value |
|
780,749 |
|
|
|
628,000 |
|
|
|
541,439 |
|
Restricted stock, at cost |
|
87,908 |
|
|
|
76,825 |
|
|
|
76,825 |
|
Loans held for sale, at fair value |
|
15,866 |
|
|
|
20,861 |
|
|
|
32,726 |
|
Loans held for investment, net of deferred fees and
costs |
|
13,655,408 |
|
|
|
13,195,843 |
|
|
|
13,697,929 |
|
Less: allowance for loan and lease losses |
|
104,184 |
|
|
|
99,787 |
|
|
|
118,261 |
|
Total loans held for investment, net |
|
13,551,224 |
|
|
|
13,096,056 |
|
|
|
13,579,668 |
|
Premises and equipment, net |
|
128,661 |
|
|
|
134,808 |
|
|
|
161,114 |
|
Goodwill |
|
925,211 |
|
|
|
935,560 |
|
|
|
935,560 |
|
Amortizable intangibles, net |
|
31,621 |
|
|
|
43,312 |
|
|
|
49,917 |
|
Bank owned life insurance |
|
436,703 |
|
|
|
431,517 |
|
|
|
427,727 |
|
Other assets |
|
511,059 |
|
|
|
413,706 |
|
|
|
445,805 |
|
Total assets |
$ |
19,661,799 |
|
|
$ |
20,064,796 |
|
|
$ |
19,989,356 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
5,361,538 |
|
|
$ |
5,207,324 |
|
|
$ |
5,222,572 |
|
Interest-bearing deposits |
|
10,767,097 |
|
|
|
11,403,744 |
|
|
|
11,436,647 |
|
Total deposits |
|
16,128,635 |
|
|
|
16,611,068 |
|
|
|
16,659,219 |
|
Securities sold under agreements to
repurchase |
|
118,658 |
|
|
|
117,870 |
|
|
|
89,749 |
|
Other short-term borrowings |
|
290,000 |
|
|
|
— |
|
|
|
— |
|
Long-term borrowings |
|
389,290 |
|
|
|
388,724 |
|
|
|
290,330 |
|
Other liabilities |
|
343,740 |
|
|
|
237,063 |
|
|
|
202,461 |
|
Total liabilities |
|
17,270,323 |
|
|
|
17,354,725 |
|
|
|
17,241,759 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Preferred stock, $10.00 par value |
|
173 |
|
|
|
173 |
|
|
|
173 |
|
Common stock, $1.33 par value |
|
98,822 |
|
|
|
100,101 |
|
|
|
103,091 |
|
Additional paid-in capital |
|
1,767,063 |
|
|
|
1,807,368 |
|
|
|
1,881,395 |
|
Retained earnings |
|
841,701 |
|
|
|
783,794 |
|
|
|
709,866 |
|
Accumulated other comprehensive income (loss) |
|
(316,283 |
) |
|
|
18,635 |
|
|
|
53,072 |
|
Total stockholders' equity |
|
2,391,476 |
|
|
|
2,710,071 |
|
|
|
2,747,597 |
|
Total liabilities and stockholders' equity |
$ |
19,661,799 |
|
|
$ |
20,064,796 |
|
|
$ |
19,989,356 |
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
74,688,314 |
|
|
|
75,663,648 |
|
|
|
77,928,948 |
|
Common shares authorized |
|
200,000,000 |
|
|
|
200,000,000 |
|
|
|
200,000,000 |
|
Preferred shares outstanding |
|
17,250 |
|
|
|
17,250 |
|
|
|
17,250 |
|
Preferred shares authorized |
|
500,000 |
|
|
|
500,000 |
|
|
|
500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ATLANTIC UNION BANKSHARES CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)(Dollars in thousands, except share data)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
123,266 |
|
|
$ |
114,200 |
|
|
$ |
130,570 |
|
|
$ |
237,466 |
|
|
$ |
258,576 |
|
Interest on deposits in other banks |
|
157 |
|
|
|
131 |
|
|
|
86 |
|
|
|
288 |
|
|
|
163 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
14,695 |
|
|
|
13,666 |
|
|
|
10,519 |
|
|
|
28,361 |
|
|
|
20,872 |
|
Nontaxable |
|
10,637 |
|
|
|
10,459 |
|
|
|
9,677 |
|
|
|
21,097 |
|
|
|
18,914 |
|
Total interest and dividend income |
|
148,755 |
|
|
|
138,456 |
|
|
|
150,852 |
|
|
|
287,212 |
|
|
|
298,525 |
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
6,097 |
|
|
|
4,483 |
|
|
|
7,238 |
|
|
|
10,580 |
|
|
|
16,366 |
|
Interest on short-term borrowings |
|
555 |
|
|
|
21 |
|
|
|
21 |
|
|
|
576 |
|
|
|
69 |
|
Interest on long-term borrowings |
|
3,336 |
|
|
|
3,021 |
|
|
|
3,045 |
|
|
|
6,358 |
|
|
|
6,644 |
|
Total interest expense |
|
9,988 |
|
|
|
7,525 |
|
|
|
10,304 |
|
|
|
17,514 |
|
|
|
23,079 |
|
Net interest income |
|
138,767 |
|
|
|
130,931 |
|
|
|
140,548 |
|
|
|
269,698 |
|
|
|
275,446 |
|
Provision for credit
losses |
|
3,559 |
|
|
|
2,800 |
|
|
|
(27,414 |
) |
|
|
6,359 |
|
|
|
(41,037 |
) |
Net interest income after provision for credit
losses |
|
135,208 |
|
|
|
128,131 |
|
|
|
167,962 |
|
|
|
263,339 |
|
|
|
316,483 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
8,040 |
|
|
|
7,596 |
|
|
|
6,607 |
|
|
|
15,637 |
|
|
|
12,116 |
|
Other service charges, commissions and fees |
|
1,709 |
|
|
|
1,655 |
|
|
|
1,735 |
|
|
|
3,364 |
|
|
|
3,436 |
|
Interchange fees |
|
2,268 |
|
|
|
1,810 |
|
|
|
2,203 |
|
|
|
4,078 |
|
|
|
4,050 |
|
Fiduciary and asset management fees |
|
6,939 |
|
|
|
7,255 |
|
|
|
6,819 |
|
|
|
14,194 |
|
|
|
13,294 |
|
Mortgage banking income |
|
2,200 |
|
|
|
3,117 |
|
|
|
4,619 |
|
|
|
5,317 |
|
|
|
12,874 |
|
Bank owned life insurance income |
|
2,716 |
|
|
|
2,697 |
|
|
|
3,209 |
|
|
|
5,413 |
|
|
|
5,475 |
|
Loan-related interest rate swap fees |
|
2,600 |
|
|
|
3,860 |
|
|
|
1,321 |
|
|
|
6,460 |
|
|
|
3,075 |
|
Other operating income |
|
11,814 |
|
|
|
2,163 |
|
|
|
1,953 |
|
|
|
13,976 |
|
|
|
5,131 |
|
Total noninterest income |
|
38,286 |
|
|
|
30,153 |
|
|
|
28,466 |
|
|
|
68,439 |
|
|
|
59,451 |
|
Noninterest
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
55,305 |
|
|
|
58,298 |
|
|
|
50,766 |
|
|
|
113,603 |
|
|
|
103,426 |
|
Occupancy expenses |
|
6,395 |
|
|
|
6,883 |
|
|
|
7,140 |
|
|
|
13,278 |
|
|
|
14,454 |
|
Furniture and equipment expenses |
|
3,590 |
|
|
|
3,597 |
|
|
|
3,911 |
|
|
|
7,187 |
|
|
|
7,880 |
|
Technology and data processing |
|
7,862 |
|
|
|
7,796 |
|
|
|
7,219 |
|
|
|
15,658 |
|
|
|
14,123 |
|
Professional services |
|
4,680 |
|
|
|
4,090 |
|
|
|
4,408 |
|
|
|
8,770 |
|
|
|
9,369 |
|
Marketing and advertising expense |
|
2,502 |
|
|
|
2,163 |
|
|
|
2,738 |
|
|
|
4,665 |
|
|
|
4,782 |
|
FDIC assessment premiums and other insurance |
|
2,765 |
|
|
|
2,485 |
|
|
|
2,319 |
|
|
|
5,250 |
|
|
|
4,626 |
|
Franchise and other taxes |
|
4,500 |
|
|
|
4,499 |
|
|
|
4,435 |
|
|
|
8,999 |
|
|
|
8,871 |
|
Loan-related expenses |
|
1,867 |
|
|
|
1,776 |
|
|
|
1,909 |
|
|
|
3,643 |
|
|
|
3,786 |
|
Amortization of intangible assets |
|
2,915 |
|
|
|
3,039 |
|
|
|
3,568 |
|
|
|
5,954 |
|
|
|
7,298 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,695 |
|
Other expenses |
|
6,387 |
|
|
|
10,695 |
|
|
|
3,558 |
|
|
|
17,082 |
|
|
|
10,598 |
|
Total noninterest expenses |
|
98,768 |
|
|
|
105,321 |
|
|
|
91,971 |
|
|
|
204,089 |
|
|
|
203,908 |
|
Income before income taxes |
|
74,726 |
|
|
|
52,963 |
|
|
|
104,457 |
|
|
|
127,689 |
|
|
|
172,026 |
|
Income tax expense |
|
12,500 |
|
|
|
9,273 |
|
|
|
19,073 |
|
|
|
21,773 |
|
|
|
30,453 |
|
Net income |
$ |
62,226 |
|
|
$ |
43,690 |
|
|
$ |
85,384 |
|
|
|
105,916 |
|
|
|
141,573 |
|
Dividends on preferred
stock |
|
2,967 |
|
|
|
2,967 |
|
|
|
2,967 |
|
|
|
5,934 |
|
|
|
5,934 |
|
Net income available to common shareholders |
$ |
59,259 |
|
|
$ |
40,723 |
|
|
$ |
82,417 |
|
|
$ |
99,982 |
|
|
$ |
135,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.79 |
|
|
$ |
0.54 |
|
|
$ |
1.05 |
|
|
$ |
1.33 |
|
|
$ |
1.72 |
|
Diluted earnings per common
share |
$ |
0.79 |
|
|
$ |
0.54 |
|
|
$ |
1.05 |
|
|
$ |
1.33 |
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES
(TAXABLE EQUIVALENT BASIS) (UNAUDITED)
|
For the Quarter Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
AverageBalance |
|
InterestIncome /
Expense (1) |
|
Yield /Rate (1)(2) |
|
AverageBalance |
|
InterestIncome /
Expense (1) |
|
Yield /Rate (1)(2) |
|
(Dollars in thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
2,322,024 |
|
|
$ |
14,695 |
|
2.54 |
% |
|
$ |
2,617,156 |
|
|
$ |
13,666 |
|
2.12 |
% |
Tax-exempt |
|
1,608,888 |
|
|
|
13,465 |
|
3.36 |
% |
|
|
1,581,426 |
|
|
|
13,240 |
|
3.40 |
% |
Total securities |
|
3,930,912 |
|
|
|
28,160 |
|
2.87 |
% |
|
|
4,198,582 |
|
|
|
26,906 |
|
2.60 |
% |
Loans, net (3) |
|
13,525,529 |
|
|
|
123,764 |
|
3.67 |
% |
|
|
13,300,789 |
|
|
|
114,602 |
|
3.49 |
% |
Other earning assets |
|
190,029 |
|
|
|
408 |
|
0.86 |
% |
|
|
385,647 |
|
|
|
284 |
|
0.30 |
% |
Total earning assets |
$ |
17,646,470 |
|
|
$ |
152,332 |
|
3.46 |
% |
|
$ |
17,885,018 |
|
|
$ |
141,792 |
|
3.22 |
% |
Allowance for loan and lease
losses |
|
(103,211 |
) |
|
|
|
|
|
|
|
(100,342 |
) |
|
|
|
|
|
Total non-earning
assets |
|
2,176,143 |
|
|
|
|
|
|
|
|
2,135,692 |
|
|
|
|
|
|
Total
assets |
$ |
19,719,402 |
|
|
|
|
|
|
|
$ |
19,920,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction and money market accounts |
$ |
7,987,888 |
|
|
$ |
3,082 |
|
0.15 |
% |
|
$ |
8,376,766 |
|
|
$ |
1,324 |
|
0.06 |
% |
Regular savings |
|
1,169,199 |
|
|
|
55 |
|
0.02 |
% |
|
|
1,142,854 |
|
|
|
55 |
|
0.02 |
% |
Time deposits |
|
1,667,378 |
|
|
|
2,960 |
|
0.71 |
% |
|
|
1,766,657 |
|
|
|
3,104 |
|
0.71 |
% |
Total interest-bearing deposits |
|
10,824,465 |
|
|
|
6,097 |
|
0.23 |
% |
|
|
11,286,277 |
|
|
|
4,483 |
|
0.16 |
% |
Other borrowings |
|
765,886 |
|
|
|
3,891 |
|
2.04 |
% |
|
|
511,722 |
|
|
|
3,042 |
|
2.41 |
% |
Total interest-bearing liabilities |
$ |
11,590,351 |
|
|
$ |
9,988 |
|
0.35 |
% |
|
$ |
11,797,999 |
|
|
$ |
7,525 |
|
0.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
5,366,591 |
|
|
|
|
|
|
|
|
5,228,098 |
|
|
|
|
|
|
Other liabilities |
|
317,415 |
|
|
|
|
|
|
|
|
233,287 |
|
|
|
|
|
|
Total liabilities |
$ |
17,274,357 |
|
|
|
|
|
|
|
$ |
17,259,384 |
|
|
|
|
|
|
Stockholders' equity |
|
2,445,045 |
|
|
|
|
|
|
|
|
2,660,984 |
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
19,719,402 |
|
|
|
|
|
|
|
$ |
19,920,368 |
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
142,344 |
|
|
|
|
|
|
$ |
134,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
3.11 |
% |
|
|
|
|
|
|
|
2.96 |
% |
Cost of
funds |
|
|
|
|
|
|
0.22 |
% |
|
|
|
|
|
|
|
0.18 |
% |
Net interest
margin |
|
|
|
|
|
|
3.24 |
% |
|
|
|
|
|
|
|
3.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________(1) Income and yields are
reported on a taxable equivalent basis using the statutory federal
corporate tax rate of 21%.(2) Rates and yields are
annualized and calculated from actual, not rounded amounts in
thousands, which appear above.(3) Nonaccrual loans
are included in average loans outstanding.
Contact: |
|
Robert M. Gorman - (804) 523-7828Executive Vice President /
Chief Financial Officer |
|
|
|
Atlantic Union Bankshares (NASDAQ:AUB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Atlantic Union Bankshares (NASDAQ:AUB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024