Atlantic Union Bankshares Corporation (the “Company” or
“Atlantic Union”) (NYSE: AUB) reported net income available to
common shareholders of $46.8 million and basic and diluted earnings
per common share of $0.62 for the first quarter of 2024 and
adjusted operating earnings available to common shareholders(1) of
$49.0 million and adjusted diluted operating earnings per common
share(1) of $0.65 for the first quarter of 2024.
Merger with American National Bankshares Inc. (“American
National”)
On April 1, 2024, the Company completed its merger with American
National. Under the terms of the merger agreement, at the effective
time of the merger, each outstanding share of American National
common stock was converted into 1.35 shares of the Company’s common
stock. With the acquisition of American National, we acquired 26
branches, deepening our presence in Central, Western and Southern
Virginia and providing entry into North Carolina’s Piedmont Triad
region and Raleigh.
During the first quarter of 2024, the Company incurred pre-tax
merger costs of approximately $1.9 million related to the merger
with American National. Because the merger closed on April 1, 2024,
the historical consolidated financial results of American National
are not included in the Company’s results of operations for the
quarter ended March 31, 2024.
“Atlantic Union delivered good operating metrics in the first
quarter as the industry saw continued pressure from the higher for
longer interest rate environment and economic uncertainty,” said
John C. Asbury, president and chief executive officer of Atlantic
Union. “Our markets remain healthy, and we grew loans at an
annualized mid-single digit rate and more than funded them with
growth in customer deposits. Credit metrics remained stable, and
operating expenses were well managed in line with our 2024
financial plan. We continue to believe that our business model of a
diversified, traditional, full-service bank that delivers the
products and services that our customers want and need, combined
with local decision making, responsiveness, and client service
orientation positively sets us apart from other banks, both larger
and smaller. 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.
“I want to welcome our new shareholders, customers and Teammates
from the American National Bankshares merger which closed on April
1, 2024. We look forward to a successful integration of American
National into Atlantic Union and believe that this combination will
be a catalyst for future growth and differentiated financial
performance."
NET INTEREST INCOME
For the first quarter of 2024, net interest income was $147.8
million, a decrease of $5.7 million from $153.5 million in the
fourth quarter of 2023. Net interest income (FTE)(1) was $151.5
million in the first quarter of 2024, a decrease of $5.8 million
from $157.3 million in the fourth quarter of 2023. The decreases in
net interest income and net interest income (FTE)( 1) were
primarily driven by higher deposit costs due to growth in average
deposit balances and changes in the deposit mix as depositors
continued to migrate to higher costing interest bearing deposit
accounts and the lower day count in the quarter, as well as higher
short-term borrowing costs due to an increase in average short-term
borrowings in the quarter. These decreases were partially offset by
higher yields on the loan portfolio and higher average balances of
loans held for investment (“LHFI”). Both our net interest margin
and net interest margin (FTE)(1) decreased 15 basis points from the
prior quarter to 3.11% and 3.19%, respectively, for the quarter
ended March 31, 2024, reflecting higher cost of funds, partially
offset by higher yields on earning assets. Earning asset yields for
the first quarter of 2024 increased 3 basis points to 5.62%
compared to the fourth quarter of 2023, primarily due to higher
yields on LHFI, as well as loan growth. The Company’s cost of funds
increased by 18 basis points to 2.43% at March 31, 2024 compared to
the prior quarter, due primarily to higher deposit costs driven by
higher rates and changes in the deposit mix 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 $602,000 for the quarter
ended March 31, 2024. The impact of net accretion in the fourth
quarter of 2023 and first quarter of 2024 are reflected in the
following table (dollars in thousands):
Loan
Deposit
Borrowings
Accretion
Amortization
Amortization
Total
For the quarter ended December 31,
2023
$
937
$
(4
)
$
(215
)
$
718
For the quarter ended March 31, 2024
819
(1
)
(216
)
602
ASSET QUALITY
Overview
At March 31, 2024, nonperforming assets (“NPAs”) as a percentage
of total LHFI was 0.23%, a decrease of 1 basis point from the prior
quarter and included nonaccrual loans of $36.4 million. Accruing
past due loans as a percentage of total LHFI totaled 32 basis
points at March 31, 2024, an increase of 1 basis point from
December 31, 2023 and an increase of 11 basis points from March 31,
2023. Net charge-offs were 0.13% of total average LHFI (annualized)
for the first quarter of 2024, an increase of 10 basis points from
December 31, 2023 and consistent with March 31, 2023. The net
charge-offs in the first quarter of 2024 were primarily related to
two credit relationships, which were previously reserved for in the
prior quarter’s allowance for credit losses (“ACL”). The ACL
totaled $151.8 million at March 31, 2024, a $3.3 million increase
from the prior quarter, reflecting the impact of loan growth and
continued uncertainty in the economic outlook on certain
portfolios.
Nonperforming Assets
At March 31, 2024, NPAs totaled $36.4 million, compared to $36.9
million in the prior quarter. The following table shows a summary
of NPA balances at the quarter ended (dollars in thousands):
March 31,
December 31,
September 30,
June 30,
March 31,
2024
2023
2023
2023
2023
Nonaccrual loans
$
36,389
$
36,860
$
28,626
$
29,105
$
29,082
Foreclosed properties
29
29
149
50
29
Total nonperforming assets
$
36,418
$
36,889
$
28,775
$
29,155
$
29,111
The following table shows the activity in nonaccrual loans for
the quarter ended (dollars in thousands):
March 31,
December 31,
September 30,
June 30,
March 31,
2024
2023
2023
2023
2023
Beginning Balance
$
36,860
$
28,626
$
29,105
$
29,082
$
27,038
Net customer payments
(1,583
)
(2,198
)
(1,947
)
(5,950
)
(1,755
)
Additions
5,047
10,604
1,651
6,685
4,151
Charge-offs
(3,935
)
(172
)
(64
)
(712
)
(39
)
Loans returning to accruing status
—
—
(119
)
—
(313
)
Ending Balance
$
36,389
$
36,860
$
28,626
$
29,105
$
29,082
Past Due Loans
At March 31, 2024, past due loans still accruing interest
totaled $50.7 million or 0.32% of total LHFI, compared to $48.4
million or 0.31% of total LHFI at December 31, 2023, and $30.9
million or 0.21% of total LHFI at March 31, 2023. The increase in
past due loan levels at March 31, 2024 from December 31, 2023 and
March 31, 2023 was primarily within the 30-59 days past due
category. Of the total past due loans still accruing interest,
$11.4 million or 0.07% of total LHFI were past due 90 days or more
at March 31, 2024, compared to $13.9 million or 0.09% of total LHFI
at December 31, 2023, and $7.2 million or 0.05% of total LHFI at
March 31, 2023.
Allowance for Credit Losses
At March 31, 2024, the ACL was $151.8 million and included an
allowance for loan and lease losses (“ALLL”) of $136.2 million and
a reserve for unfunded commitments of $15.6 million. The ACL at
March 31, 2024 increased $3.3 million from December 31, 2023
primarily due to loan growth in the first quarter of 2024 and the
impact of continued uncertainty in the economic outlook on certain
portfolios.
The ACL as a percentage of total LHFI was 0.96% at March 31,
2024, an increase of 1 basis point from December 31, 2023. The ALLL
as a percentage of total LHFI was 0.86% at March 31, 2024, compared
to 0.85% at December 31, 2023.
Net Charge-offs
Net charge-offs were $4.9 million or 0.13% of total average LHFI
on an annualized basis for the first quarter of 2024, compared to
$1.2 million or 0.03% (annualized) for the fourth quarter of 2023,
and $4.6 million or 0.13% (annualized) for the first quarter of
2023. The net charge-offs in the first quarter of 2024 were
primarily related to two credit relationships, which were
previously reserved for in the prior quarter’s ACL.
Provision for Credit Losses
For the first quarter of 2024, the Company recorded a provision
for credit losses of $8.2 million, compared to a provision for
credit losses of $8.7 million in the prior quarter, and a provision
for credit losses of $11.9 million in the first quarter of
2023.
NONINTEREST INCOME
Noninterest income decreased $4.4 million to $25.6 million for
the first quarter of 2024 from $30.0 million in the prior quarter,
primarily driven by a $2.4 million decrease in loan-related
interest swap fees in the first quarter as swap transactions
decreased from the seasonally high fourth quarter, and a $2.2
million decrease in other operating income, as the prior quarter
included a $1.9 million gain related to a sale-leaseback
transaction of one branch location.
NONINTEREST EXPENSE
Noninterest expense decreased $2.6 million to $105.3 million for
the first quarter of 2024 from $107.9 million in the prior quarter,
primarily driven by a $3.5 million decrease in other expenses,
which included a $3.3 million legal reserve incurred in the prior
quarter related to our previously disclosed settlement with the
CFPB; a $2.5 million decrease in FDIC assessment premiums and other
insurance, which included a $3.4 million FDIC special assessment in
the prior quarter, compared to $840,000 in the first quarter of
2024; a $1.3 million decrease in professional services expense
primarily due to a decrease in costs related to strategic
initiatives as the Company focused on completing its merger with
American National; and a $700,000 decrease in marketing and
advertising expenses. These decreases were partially offset by a
$5.2 million increase in salaries and benefits due to seasonal
increases in payroll related taxes and 401(k) contribution expenses
in the first quarter.
INCOME TAXES
The effective tax rate for the three months ended March 31, 2024
and 2023 was 16.9% and 17.0%, respectively.
BALANCE SHEET
At March 31, 2024, total assets were $21.4 billion, an increase
of $211.9 million or approximately 4.0% (annualized) from December
31, 2023 and $1.3 billion or approximately 6.3% from March 31,
2023. The increases in total assets were primarily driven by growth
in LHFI (net of deferred fees and costs).
At March 31, 2024, LHFI (net of deferred fees and costs) totaled
$15.9 billion, an increase of $216.6 million or 5.6% (annualized)
from $15.6 billion at December 31, 2023, and an increase of $1.3
billion or 8.7% from March 31, 2023. Quarterly average LHFI (net of
deferred fees and costs) totaled $15.7 billion at March 31, 2024,
an increase of $338.1 million or 8.8% (annualized) from the prior
quarter, and an increase of $1.2 billion or 8.5% from March 31,
2023. LHFI (net of deferred fees and costs) increased from the
prior quarter primarily due to increases in the construction and
land development and other commercial loan portfolios, and
increased from the same period in the prior year primarily due to
increases in the commercial and industrial, commercial real estate
non-owner occupied, multifamily real estate, and other commercial
loan portfolios.
At March 31, 2024, total investments were $3.1 billion, a
decrease of $42.7 million or 5.4% (annualized) from December 31,
2023, and a decrease of $54.0 million or 1.7% from March 31, 2023.
Available for sale (“AFS”) securities totaled $2.2 billion at both
March 31, 2024 and December 31, 2023 and decreased slightly from
$2.3 billion at March 31, 2023. Total net unrealized losses on the
AFS securities portfolio were $410.9 million at March 31, 2024,
compared to $384.3 million at December 31, 2023 and $407.9 million
at March 31, 2023. Held to maturity securities are carried at cost
and totaled $828.9 million at March 31, 2024, $837.4 million at
December 31, 2023, and $855.4 million at March 31, 2023 and had net
unrealized losses of $37.6 million at March 31, 2024, compared to
$29.3 million at December 31, 2023 and $32.3 million at March 31,
2023.
At March 31, 2024, total deposits were $17.3 billion, an
increase of $460.3 million or 11.0% (annualized) from the prior
quarter. Average deposits at March 31, 2024 increased from the
prior quarter by $33.8 million or 0.8% (annualized). Total deposits
at March 31, 2024 increased $822.5 million or 5.0% from March 31,
2023, and quarterly average deposits at March 31, 2024 increased
$730.0 million or 4.4% from the same period in the prior year.
Total deposits increased from the prior quarter and the same period
in the prior year primarily due to increases in interest bearing
customer deposits and brokered deposits, partially offset by
decreases in demand deposits.
At March 31, 2024, total borrowings were $1.1 billion, a
decrease of $254.1 million from December 31, 2023 and an increase
of $258.8 million from March 31, 2023. At March 31, 2024, average
borrowings were $1.0 billion, an increase of $220.5 million from
December 31, 2023, and a decrease of $108.2 million from March 31,
2023. The increase in average borrowings from the prior quarter was
primarily driven by increased use of short-term borrowings to fund
loan growth, while the decrease from the same period in the prior
year was due to paydowns of short-term borrowings due to deposit
growth.
The following table shows the Company’s capital ratios at the
quarters ended:
March 31,
December 31,
March 31,
2024
2023
2023
Common equity Tier 1 capital ratio (2)
9.87
%
9.84
%
9.91
%
Tier 1 capital ratio (2)
10.77
%
10.76
%
10.89
%
Total capital ratio (2)
13.62
%
13.55
%
13.76
%
Leverage ratio (Tier 1 capital to average
assets) (2)
9.62
%
9.63
%
9.38
%
Common equity to total assets
11.14
%
11.29
%
11.31
%
Tangible common equity to tangible assets
(1)
7.05
%
7.15
%
6.91
%
_________________________
During the first quarter of 2024, 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 fourth quarter
of 2023 and the first quarter of 2023. During the first quarter of
2024, the Company also declared and paid cash dividends of $0.32
per common share, consistent with the fourth quarter of 2023 and a
$0.02 increase or approximately 6.7% from the first quarter of
2023.
_________________________
(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 the “Alternative Performance Measures
(non-GAAP)” section of the Key Financial Results.
(2) All ratios at March 31, 2024 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 (NYSE: AUB) is the holding company for Atlantic Union
Bank. Atlantic Union Bank has 135 branches and approximately 150
ATMs located throughout Virginia and in portions of Maryland and
North Carolina as of April 1, 2024. 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.
FIRST QUARTER 2024 EARNINGS RELEASE CONFERENCE CALL
The Company will hold a conference call and webcast for
investors at 9:00 a.m. Eastern Time on Tuesday, April 23, 2024,
during which management will review our financial results for the
first quarter 2024 and provide an update on our recent
activities.
The listen-only webcast and the accompanying slides can be
accessed at: https://edge.media-server.com/mmc/p/m7656v4x.
For analysts who wish to participate in the conference call,
please register at the following URL:
https://register.vevent.com/register/BI5e168257724b4c1d8f709d38b7cc139c.
To participate in the conference call, you must use the link to
receive an audio dial-in number and an Access PIN.
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 period ended March
31, 2024, 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)” in the tables within the section “Key Financial
Results.”
FORWARD-LOOKING STATEMENTS
This press release and statements by our management 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 quotations, statements regarding
our expectations with regard to our business, financial and
operating results, including our deposit base and funding, the
impact of future economic conditions, changes in economic
conditions, our asset quality, our customer relationships, and
statements that include other projections, predictions,
expectations, or beliefs about future events or results 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.
Forward-looking 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,” “continue,”
“confidence,” or words of similar meaning or other statements
concerning opinions or judgment of the Company and our management
about future events. Although we believe that our expectations with
respect to forward-looking statements are based upon reasonable
assumptions within the bounds of our existing knowledge of our
business and operations, there can be no assurance that actual
future results, performance, or achievements of, or trends
affecting, us 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 their related impacts on
macroeconomic conditions, customer and client behavior, our funding
costs and our loan and securities portfolios;
- inflation and its impacts on economic growth and customer and
client behavior;
- adverse developments in the financial industry generally, such
as bank failures, responsive measures to mitigate and manage such
developments, related supervisory and regulatory actions and costs,
and related impacts on customer and client behavior;
- the sufficiency of liquidity;
- general economic and financial market conditions, in the United
States generally and particularly in the markets in which we
operate and which our loans are concentrated, including the effects
of declines in real estate values, an increase in unemployment
levels and slowdowns in economic growth;
- the impact of purchase accounting with respect to our merger
with American National, or any change in the assumptions used
regarding the assets acquired and liabilities assumed to determine
the fair value and credit marks;
- the possibility that the anticipated benefits of our merger
with American National, including anticipated cost savings and
strategic gains, are not realized when expected or at all,
including as a result of the impact of, or problems arising from,
the integration of the two companies or as a result of the strength
of the economy, competitive factors in the areas where we do
business, or as a result of other unexpected factors or
events;
- potential adverse reactions or changes to business or employee
relationships, including those resulting from our merger with
American National;
- the integration of the business and operations of American
National may take longer or be more costly than anticipated;
- 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 our loan or investment portfolios
and changes therein;
- demand for loan products and financial services in our market
areas;
- our ability to manage our growth or implement our growth
strategy;
- the effectiveness of expense reduction plans;
- the introduction of new lines of business or new products and
services;
- our ability to recruit and retain key employees;
- real estate values in our lending area;
- changes in accounting principles, standards, rules, and
interpretations, and the related impact on our financial
statements;
- an insufficient ACL or volatility in the ACL resulting from the
CECL methodology, either alone or as that may be affected by
changing economic conditions, credit concentrations, inflation,
changing interest rates, or other factors;
- our liquidity and capital positions;
- concentrations of loans secured by real estate, particularly
commercial real estate;
- the effectiveness of our credit processes and management of our
credit risk;
- our 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;
- operational, technological, cultural, regulatory, legal,
credit, and other risks associated with the exploration,
consummation and integration of potential future acquisitions,
whether involving stock or cash considerations;
- the potential adverse effects of unusual and infrequently
occurring events, such as weather-related disasters, terrorist
acts, geopolitical conflicts or public health events (such as
pandemics), and of governmental and societal responses thereto;
these potential adverse effects may include, without limitation,
adverse effects on the ability of our borrowers to satisfy their
obligations to us, on the value of collateral securing loans, on
the demand for our loans or our other products and services, on
supply chains and methods used to distribute products and services,
on incidents of cyberattack and fraud, on our liquidity or capital
positions, on risks posed by reliance on third-party service
providers, on other aspects of our business operations and on
financial markets and economic growth;
- performance by our 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;
- actual or potential claims, damages, and fines related to
litigation or government actions, which may result in, among other
things, additional costs, fines, penalties, restrictions on our
business activities, reputational harm, or other adverse
consequences;
- the effects of changes in federal, state or local tax laws and
regulations;
- any event or development that would cause us to conclude that
there was an impairment of any asset, including intangible assets,
such as goodwill; and
- other factors, many of which are beyond our control.
Please also refer to such other factors as discussed throughout
Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” of our Annual Report on Form 10‑K for the year ended
December 31, 2023 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 and therein should
be considered in evaluating forward-looking statements, and all of
the forward-looking statements are expressly qualified by the
cautionary statements contained or referred to herein and therein.
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 our businesses or
operations. Readers are cautioned not to rely too heavily on
forward-looking statements. Forward-looking statements speak only
as of the date they are made. We do 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, except as required by law.
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Results of
Operations
Interest and dividend income
$
262,915
$
259,497
$
217,546
Interest expense
115,090
105,953
64,103
Net interest income
147,825
153,544
153,443
Provision for credit losses
8,239
8,707
11,850
Net interest income after provision for
credit losses
139,586
144,837
141,593
Noninterest income
25,552
29,959
9,628
Noninterest expenses
105,273
107,929
108,274
Income before income taxes
59,865
66,867
42,947
Income tax expense
10,096
9,960
7,294
Net income
49,769
56,907
35,653
Dividends on preferred stock
2,967
2,967
2,967
Net income available to common
shareholders
$
46,802
$
53,940
$
32,686
Interest earned on earning assets (FTE)
(1)
$
266,636
$
263,209
$
221,334
Net interest income (FTE) (1)
151,546
157,256
157,231
Total revenue (FTE) (1)
177,098
187,215
166,859
Pre-tax pre-provision adjusted operating
earnings (7)
70,815
81,356
73,197
Key
Ratios
Earnings per common share, diluted
$
0.62
$
0.72
$
0.44
Return on average assets (ROA)
0.94
%
1.08
%
0.71
%
Return on average equity (ROE)
7.79
%
9.29
%
5.97
%
Return on average tangible common equity
(ROTCE) (2) (3)
13.32
%
16.72
%
10.71
%
Efficiency ratio
60.72
%
58.82
%
66.40
%
Efficiency ratio (FTE) (1)
59.44
%
57.65
%
64.89
%
Net interest margin
3.11
%
3.26
%
3.41
%
Net interest margin (FTE) (1)
3.19
%
3.34
%
3.50
%
Yields on earning assets (FTE) (1)
5.62
%
5.59
%
4.92
%
Cost of interest-bearing liabilities
3.23
%
3.04
%
2.02
%
Cost of deposits
2.39
%
2.23
%
1.28
%
Cost of funds
2.43
%
2.25
%
1.42
%
Operating
Measures (4)
Adjusted operating earnings
$
51,994
$
61,820
$
50,189
Adjusted operating earnings available to
common shareholders
49,027
58,853
47,222
Adjusted operating earnings per common
share, diluted
$
0.65
$
0.78
$
0.63
Adjusted operating ROA
0.99
%
1.18
%
1.00
%
Adjusted operating ROE
8.14
%
10.09
%
8.40
%
Adjusted operating ROTCE (2) (3)
13.93
%
18.20
%
15.22
%
Adjusted operating efficiency ratio (FTE)
(1)(6)
56.84
%
52.97
%
56.03
%
Per Share
Data
Earnings per common share, basic
$
0.62
$
0.72
$
0.44
Earnings per common share, diluted
0.62
0.72
0.44
Cash dividends paid per common share
0.32
0.32
0.30
Market value per share
35.31
36.54
35.05
Book value per common share
31.88
32.06
30.53
Tangible book value per common share
(2)
19.27
19.39
17.78
Price to earnings ratio, diluted
14.11
12.80
19.77
Price to book value per common share
ratio
1.11
1.14
1.15
Price to tangible book value per common
share ratio (2)
1.83
1.88
1.97
Weighted average common shares
outstanding, basic
75,197,113
75,016,402
74,832,141
Weighted average common shares
outstanding, diluted
75,197,376
75,016,858
74,835,514
Common shares outstanding at end of
period
75,381,740
75,023,327
74,989,228
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Capital
Ratios
Common equity Tier 1 capital ratio (5)
9.87
%
9.84
%
9.91
%
Tier 1 capital ratio (5)
10.77
%
10.76
%
10.89
%
Total capital ratio (5)
13.62
%
13.55
%
13.76
%
Leverage ratio (Tier 1 capital to average
assets) (5)
9.62
%
9.63
%
9.38
%
Common equity to total assets
11.14
%
11.29
%
11.31
%
Tangible common equity to tangible assets
(2)
7.05
%
7.15
%
6.91
%
Financial
Condition
Assets
$
21,378,120
$
21,166,197
$
20,103,370
LHFI (net of deferred fees and costs)
15,851,628
15,635,043
14,584,280
Securities
3,141,416
3,184,111
3,195,399
Earning Assets
19,236,100
19,010,309
17,984,057
Goodwill
925,211
925,211
925,211
Amortizable intangibles, net
17,288
19,183
24,482
Deposits
17,278,435
16,818,129
16,455,910
Borrowings
1,057,724
1,311,858
798,910
Stockholders' equity
2,548,928
2,556,327
2,440,236
Tangible common equity (2)
1,440,072
1,445,576
1,324,186
Loans held for
investment, net of deferred fees and costs
Construction and land development
$
1,246,251
$
1,107,850
$
1,179,872
Commercial real estate - owner
occupied
1,981,613
1,998,787
1,956,585
Commercial real estate - non-owner
occupied
4,225,018
4,172,401
3,968,085
Multifamily real estate
1,074,957
1,061,997
822,006
Commercial & Industrial
3,561,971
3,589,347
3,082,478
Residential 1-4 Family - Commercial
515,667
522,580
522,760
Residential 1-4 Family - Consumer
1,081,094
1,078,173
974,511
Residential 1-4 Family - Revolving
616,951
619,433
589,791
Auto
440,118
486,926
600,658
Consumer
113,414
120,641
145,090
Other Commercial
994,574
876,908
742,444
Total LHFI
$
15,851,628
$
15,635,043
$
14,584,280
Deposits
Interest checking accounts
$
4,753,485
$
4,697,819
$
4,714,366
Money market accounts
4,104,282
3,850,679
3,547,514
Savings accounts
895,213
909,223
1,047,914
Customer time deposits of $250,000 and
over
721,155
674,939
541,447
Other customer time deposits
2,293,800
2,173,904
1,648,747
Time deposits
3,014,955
2,848,843
2,190,194
Total interest-bearing customer
deposits
12,767,935
12,306,564
11,499,988
Brokered deposits
665,309
548,384
377,913
Total interest-bearing deposits
$
13,433,244
$
12,854,948
$
11,877,901
Demand deposits
3,845,191
3,963,181
4,578,009
Total deposits
$
17,278,435
$
16,818,129
$
16,455,910
Averages
Assets
$
21,222,756
$
20,853,306
$
20,384,351
LHFI (net of deferred fees and costs)
15,732,599
15,394,500
14,505,611
Loans held for sale
9,142
6,470
5,876
Securities
3,153,556
3,031,475
3,467,561
Earning assets
19,089,393
18,676,967
18,238,088
Deposits
17,147,181
17,113,369
16,417,212
Time deposits
3,459,138
3,128,048
2,291,530
Interest-bearing deposits
13,311,837
13,026,138
11,723,865
Borrowings
1,012,797
792,629
1,122,244
Interest-bearing liabilities
14,324,634
13,818,767
12,846,109
Stockholders' equity
2,568,243
2,430,711
2,423,600
Tangible common equity (2)
1,458,478
1,318,952
1,306,445
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Asset
Quality
Allowance for
Credit Losses (ACL)
Beginning balance, Allowance for loan and
lease losses (ALLL)
$
132,182
$
125,627
$
110,768
Add: Recoveries
977
853
1,167
Less: Charge-offs
5,894
2,038
5,726
Add: Provision for loan losses
8,925
7,740
10,303
Ending balance, ALLL
$
136,190
$
132,182
$
116,512
Beginning balance, Reserve for unfunded
commitment (RUC)
$
16,269
$
15,302
$
13,675
Add: Provision for unfunded
commitments
(687)
967
1,524
Ending balance, RUC
$
15,582
$
16,269
$
15,199
Total ACL
$
151,772
$
148,451
$
131,711
ACL / total LHFI
0.96
%
0.95
%
0.90
%
ALLL / total LHFI
0.86
%
0.85
%
0.80
%
Net charge-offs / total average LHFI
(annualized)
0.13
%
0.03
%
0.13
%
Provision for loan losses/ total average
LHFI (annualized)
0.23
%
0.20
%
0.29
%
Nonperforming
Assets
Construction and land development
$
342
$
348
$
363
Commercial real estate - owner
occupied
2,888
3,001
6,174
Commercial real estate - non-owner
occupied
10,335
12,616
1,481
Commercial & Industrial
6,480
4,556
4,815
Residential 1-4 Family - Commercial
1,790
1,804
1,907
Residential 1-4 Family - Consumer
10,990
11,098
10,540
Residential 1-4 Family - Revolving
3,135
3,087
3,449
Auto
429
350
347
Consumer
—
—
6
Nonaccrual loans
$
36,389
$
36,860
$
29,082
Foreclosed property
29
29
29
Total nonperforming assets (NPAs)
$
36,418
$
36,889
$
29,111
Construction and land development
$
171
$
25
$
249
Commercial real estate - owner
occupied
3,634
2,579
2,133
Commercial real estate - non-owner
occupied
1,197
2,967
1,032
Multifamily real estate
144
—
—
Commercial & Industrial
1,860
782
633
Residential 1-4 Family - Commercial
1,030
1,383
232
Residential 1-4 Family - Consumer
1,641
4,470
859
Residential 1-4 Family - Revolving
1,343
1,095
1,766
Auto
284
410
137
Consumer
141
152
137
Other Commercial
—
—
66
LHFI ≥ 90 days and still accruing
$
11,445
$
13,863
$
7,244
Total NPAs and LHFI ≥ 90 days
$
47,863
$
50,752
$
36,355
NPAs / total LHFI
0.23
%
0.24
%
0.20
%
NPAs / total assets
0.17
%
0.17
%
0.14
%
ALLL / nonaccrual loans
374.26
%
358.61
%
400.63
%
ALLL/ nonperforming assets
373.96
%
358.32
%
400.23
%
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Past Due
Detail
Construction and land development
$
2,163
$
270
$
815
Commercial real estate - owner
occupied
3,663
1,575
2,251
Commercial real estate - non-owner
occupied
2,271
545
52
Commercial & Industrial
5,540
4,303
981
Residential 1-4 Family - Commercial
1,407
567
1,399
Residential 1-4 Family - Consumer
6,070
7,546
11,579
Residential 1-4 Family - Revolving
1,920
2,238
1,384
Auto
3,192
4,737
2,026
Consumer
418
770
295
Other Commercial
8,187
6,569
—
LHFI 30-59 days past due
$
34,831
$
29,120
$
20,782
Construction and land development
$
1,097
$
24
$
—
Commercial real estate - owner
occupied
—
—
798
Commercial real estate - non-owner
occupied
558
184
—
Multifamily real estate
—
146
—
Commercial & Industrial
348
49
61
Residential 1-4 Family - Commercial
98
676
271
Residential 1-4 Family - Consumer
204
1,804
158
Residential 1-4 Family - Revolving
1,477
1,429
1,069
Auto
330
872
295
Consumer
197
232
176
Other Commercial
102
—
—
LHFI 60-89 days past due
$
4,411
$
5,416
$
2,828
Past Due and still accruing
$
50,687
$
48,399
$
30,854
Past Due and still accruing / total
LHFI
0.32
%
0.31
%
0.21
%
Alternative
Performance Measures (non-GAAP)
Net interest
income (FTE) (1)
Net interest income (GAAP)
$
147,825
$
153,544
$
153,443
FTE adjustment
3,721
3,712
3,788
Net interest income (FTE) (non-GAAP)
$
151,546
$
157,256
$
157,231
Noninterest income (GAAP)
25,552
29,959
9,628
Total revenue (FTE) (non-GAAP)
$
177,098
$
187,215
$
166,859
Average earning assets
$
19,089,393
$
18,676,967
$
18,238,088
Net interest margin
3.11
%
3.26
%
3.41
%
Net interest margin (FTE)
3.19
%
3.34
%
3.50
%
Tangible
Assets (2)
Ending assets (GAAP)
$
21,378,120
$
21,166,197
$
20,103,370
Less: Ending goodwill
925,211
925,211
925,211
Less: Ending amortizable intangibles
17,288
19,183
24,482
Ending tangible assets (non-GAAP)
$
20,435,621
$
20,221,803
$
19,153,677
Tangible Common
Equity (2)
Ending equity (GAAP)
$
2,548,928
$
2,556,327
$
2,440,236
Less: Ending goodwill
925,211
925,211
925,211
Less: Ending amortizable intangibles
17,288
19,183
24,482
Less: Perpetual preferred stock
166,357
166,357
166,357
Ending tangible common equity
(non-GAAP)
$
1,440,072
$
1,445,576
$
1,324,186
Average equity (GAAP)
$
2,568,243
$
2,430,711
$
2,423,600
Less: Average goodwill
925,211
925,211
925,211
Less: Average amortizable intangibles
18,198
20,192
25,588
Less: Average perpetual preferred
stock
166,356
166,356
166,356
Average tangible common equity
(non-GAAP)
$
1,458,478
$
1,318,952
$
1,306,445
ROTCE
(2)(3)
Net income available to common
shareholders (GAAP)
$
46,802
$
53,940
$
32,686
Plus: Amortization of intangibles, tax
effected
1,497
1,654
1,800
Net income available to common
shareholders before amortization of intangibles (non-GAAP)
$
48,299
$
55,594
$
34,486
Return on average tangible common equity
(ROTCE)
13.32
%
16.72
%
10.71
%
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Operating
Measures (4)
Net income (GAAP)
$
49,769
$
56,907
$
35,653
Plus: Merger-related costs, net of tax
1,563
884
—
Plus: FDIC special assessment, net of
tax
664
2,656
—
Plus: Legal reserve, net of tax
—
2,859
3,950
Less: Gain (loss) on sale of securities,
net of tax
2
2
(10,586)
Less: Gain on sale-leaseback transaction,
net of tax
—
1,484
—
Adjusted operating earnings (non-GAAP)
51,994
61,820
50,189
Less: Dividends on preferred stock
2,967
2,967
2,967
Adjusted operating earnings available to
common shareholders (non-GAAP)
$
49,027
$
58,853
$
47,222
Operating
Efficiency Ratio (1)(6)
Noninterest expense (GAAP)
$
105,273
$
107,929
$
108,274
Less: Amortization of intangible
assets
1,895
2,094
2,279
Less: Merger-related costs
1,874
1,002
—
Less: FDIC special assessment
840
3,362
—
Less: Legal reserve
—
3,300
5,000
Adjusted operating noninterest expense
(non-GAAP)
$
100,664
$
98,171
$
100,995
Noninterest income (GAAP)
$
25,552
$
29,959
$
9,628
Less: Gain (loss) on sale of
securities
3
3
(13,400)
Less: Gain on sale-leaseback
transaction
—
1,879
—
Adjusted operating noninterest income
(non-GAAP)
$
25,549
$
28,077
$
23,028
Net interest income (FTE) (non-GAAP)
(1)
$
151,546
$
157,256
$
157,231
Adjusted operating noninterest income
(non-GAAP)
25,549
28,077
23,028
Total adjusted revenue (FTE) (non-GAAP)
(1)
$
177,095
$
185,333
$
180,259
Efficiency ratio
60.72
%
58.82
%
66.40
%
Efficiency ratio (FTE) (1)
59.44
%
57.65
%
64.89
%
Adjusted operating efficiency ratio (FTE)
(1)(6)
56.84
%
52.97
%
56.03
%
Operating ROA
& ROE (4)
Adjusted operating earnings (non-GAAP)
$
51,994
$
61,820
$
50,189
Average assets (GAAP)
$
21,222,756
$
20,853,306
$
20,384,351
Return on average assets (ROA) (GAAP)
0.94
%
1.08
%
0.71
%
Adjusted operating return on average
assets (ROA) (non-GAAP)
0.99
%
1.18
%
1.00
%
Average equity (GAAP)
$
2,568,243
$
2,430,711
$
2,423,600
Return on average equity (ROE) (GAAP)
7.79
%
9.29
%
5.97
%
Adjusted operating return on average
equity (ROE) (non-GAAP)
8.14
%
10.09
%
8.40
%
Operating
ROTCE (2)(3)(4)
Adjusted operating earnings available to
common shareholders (non-GAAP)
$
49,027
$
58,853
$
47,222
Plus: Amortization of intangibles, tax
effected
1,497
1,654
1,800
Adjusted operating earnings available to
common shareholders before amortization of intangibles
(non-GAAP)
$
50,524
$
60,507
$
49,022
Average tangible common equity
(non-GAAP)
$
1,458,478
$
1,318,952
$
1,306,445
Adjusted operating return on average
tangible common equity (non-GAAP)
13.93
%
18.20
%
15.22
%
Pre-tax
pre-provision adjusted operating earnings (7)
Net income (GAAP)
$
49,769
$
56,907
$
35,653
Plus: Provision for credit losses
8,239
8,707
11,850
Plus: Income tax expense
10,096
9,960
7,294
Plus: Merger-related costs
1,874
1,002
—
Plus: FDIC special assessment
840
3,362
—
Plus: Legal reserve
—
3,300
5,000
Less: Gain (loss) on sale of
securities
3
3
(13,400)
Less: Gain on sale-leaseback
transaction
—
1,879
—
Pre-tax pre-provision adjusted operating
earnings (non-GAAP)
$
70,815
$
81,356
$
73,197
Less: Dividends on preferred stock
2,967
2,967
2,967
Pre-tax pre-provision adjusted operating
earnings available to common shareholders (non-GAAP)
$
67,848
$
78,389
$
70,230
Weighted average common shares
outstanding, diluted
75,197,376
75,016,858
74,835,514
Pre-tax pre-provision earnings per common
share, diluted
$
0.90
$
1.04
$
0.94
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
3/31/24
12/31/23
3/31/23
Mortgage
Origination Held for Sale Volume
Refinance Volume
$
5,638
$
3,972
$
3,452
Purchase Volume
31,768
27,871
32,192
Total Mortgage loan originations held for
sale
$
37,406
$
31,843
$
35,644
% of originations held for sale that are
refinances
15.1
%
12.5
%
9.7
%
Wealth
Assets under management
$
5,258,880
$
5,014,208
$
4,494,268
Other
Data
End of period full-time employees
1,745
1,804
1,840
Number of full-service branches
109
109
109
Number of automatic transaction machines
(ATMs)
123
123
127
_________________________________
(1)
These are non-GAAP financial measures. The
Company believes net interest income (FTE), total revenue (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 the 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. The Company
believes tangible common equity is an important indication of its
ability to grow organically and through business combinations as
well as its ability to pay dividends and to engage in various
capital management strategies.
(3)
These are non-GAAP financial measures. The
Company believes that ROTCE is a meaningful supplement to GAAP
financial measures and is 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, as applicable, merger-related
costs, FDIC special assessments, legal reserves associated with our
previously disclosed settlement with the CFPB, gain (loss) on sale
of securities, and gain on sale-leaseback transaction. The Company
believes these non-GAAP adjusted measures provide investors with
important information about the continuing economic results of the
Company’s operations.
(5)
All ratios at March 31, 2024 are estimates
and subject to change pending the Company’s filing of its FR Y9‑C.
All other periods are presented as filed.
(6)
The adjusted operating efficiency ratio
(FTE) excludes, as applicable, the amortization of intangible
assets, merger-related costs, FDIC special assessments, legal
reserves associated with our previously disclosed settlement with
the CFPB, gain (loss) on sale of securities, and gain on
sale-leaseback transaction. This measure is similar to the measure
used by the Company when analyzing corporate performance and is
also similar to the measure used for incentive compensation. The
Company believes this adjusted measure provides investors with
important information about the continuing economic results of the
Company’s operations.
(7)
These are non-GAAP financial measures.
Pre-tax pre-provision adjusted earnings excludes, as applicable,
the provision for credit losses, which can fluctuate significantly
from period-to-period under the CECL methodology, income tax
expense, merger-related costs, FDIC special assessments, legal
reserves associated with our previously disclosed settlement with
the CFPB, gain (loss) on sale of securities, and gain on
sale-leaseback transaction. The Company believes this adjusted
measure provides investors with important information about the
continuing economic results of the Company’s operations.
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share
data)
March 31,
December 31,
March 31,
2024
2023
2023
ASSETS
(unaudited)
(audited)
(unaudited)
Cash and cash equivalents:
Cash and due from banks
$
168,850
$
196,754
$
187,106
Interest-bearing deposits in other
banks
225,386
167,601
184,371
Federal funds sold
2,434
13,776
719
Total cash and cash equivalents
396,670
378,131
372,196
Securities available for sale, at fair
value
2,202,216
2,231,261
2,252,365
Securities held to maturity, at
carrying value
828,928
837,378
855,418
Restricted stock, at cost
110,272
115,472
87,616
Loans held for sale
12,200
6,710
14,213
Loans held for investment, net of
deferred fees and costs
15,851,628
15,635,043
14,584,280
Less: allowance for loan and lease
losses
136,190
132,182
116,512
Total loans held for investment,
net
15,715,438
15,502,861
14,467,768
Premises and equipment, net
90,126
90,959
116,466
Goodwill
925,211
925,211
925,211
Amortizable intangibles, net
17,288
19,183
24,482
Bank owned life insurance
455,885
452,565
443,537
Other assets
623,886
606,466
544,098
Total assets
$
21,378,120
$
21,166,197
$
20,103,370
LIABILITIES
Noninterest-bearing demand
deposits
$
3,845,191
$
3,963,181
$
4,578,009
Interest-bearing deposits
13,433,244
12,854,948
11,877,901
Total deposits
17,278,435
16,818,129
16,455,910
Securities sold under agreements to
repurchase
66,405
110,833
163,760
Other short-term borrowings
600,000
810,000
245,000
Long-term borrowings
391,319
391,025
390,150
Other liabilities
493,033
479,883
408,314
Total liabilities
18,829,192
18,609,870
17,663,134
Commitments and contingencies
STOCKHOLDERS'
EQUITY
Preferred stock, $10.00 par
value
173
173
173
Common stock, $1.33 par value
99,399
99,147
99,072
Additional paid-in capital
1,782,809
1,782,286
1,773,118
Retained earnings
1,040,845
1,018,070
929,806
Accumulated other comprehensive
loss
(374,298
)
(343,349
)
(361,933
)
Total stockholders' equity
2,548,928
2,556,327
2,440,236
Total liabilities and stockholders'
equity
$
21,378,120
$
21,166,197
$
20,103,370
Common shares outstanding
75,381,740
75,023,327
74,989,228
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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollars in thousands, except share
data)
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Interest and dividend income:
Interest and fees on loans
$
234,600
$
230,378
$
189,992
Interest on deposits in other banks
1,280
2,255
1,493
Interest and dividends on securities:
Taxable
18,879
18,703
16,753
Nontaxable
8,156
8,161
9,308
Total interest and dividend
income
262,915
259,497
217,546
Interest expense:
Interest on deposits
101,864
95,998
51,834
Interest on short-term borrowings
8,161
5,043
7,563
Interest on long-term borrowings
5,065
4,912
4,706
Total interest expense
115,090
105,953
64,103
Net interest income
147,825
153,544
153,443
Provision for credit losses
8,239
8,707
11,850
Net interest income after provision for
credit losses
139,586
144,837
141,593
Noninterest income:
Service charges on deposit accounts
8,569
8,662
7,902
Other service charges, commissions and
fees
1,731
1,789
1,746
Interchange fees
2,294
2,581
2,325
Fiduciary and asset management fees
4,838
4,526
4,262
Mortgage banking income
867
774
854
Gain (loss) on sale of securities
3
3
(13,400
)
Bank owned life insurance income
3,245
3,088
2,828
Loan-related interest rate swap fees
1,216
3,588
1,439
Other operating income
2,789
4,948
1,672
Total noninterest income
25,552
29,959
9,628
Noninterest expenses:
Salaries and benefits
61,882
56,686
60,529
Occupancy expenses
6,625
6,644
6,356
Furniture and equipment expenses
3,309
3,517
3,752
Technology and data processing
8,127
7,853
8,142
Professional services
3,081
4,346
3,413
Marketing and advertising expense
2,318
3,018
2,351
FDIC assessment premiums and other
insurance
5,143
7,630
3,899
Franchise and other taxes
4,501
4,505
4,498
Loan-related expenses
1,323
1,060
1,552
Amortization of intangible assets
1,895
2,094
2,279
Other expenses
7,069
10,576
11,503
Total noninterest expenses
105,273
107,929
108,274
Income before income taxes
59,865
66,867
42,947
Income tax expense
10,096
9,960
7,294
Net Income
$
49,769
$
56,907
$
35,653
Dividends on preferred stock
2,967
2,967
2,967
Net income available to common
shareholders
$
46,802
$
53,940
$
32,686
Basic earnings per common share
$
0.62
$
0.72
$
0.44
Diluted earnings per common share
$
0.62
$
0.72
$
0.44
AVERAGE BALANCES, INCOME AND EXPENSES,
YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED)
(Dollars in thousands)
For the Quarter Ended
March 31, 2024
December 31, 2023
Average Balance
Interest Income / Expense
(1)
Yield / Rate (1)(2)
Average Balance
Interest Income / Expense
(1)
Yield / Rate (1)(2)
Assets:
Securities:
Taxable
$
1,895,820
$
18,879
4.01
%
$
1,771,312
$
18,703
4.19
%
Tax-exempt
1,257,736
10,324
3.30
%
1,260,163
10,330
3.25
%
Total securities
3,153,556
29,203
3.72
%
3,031,475
29,033
3.80
%
LHFI, net of deferred fees and costs
(3)
15,732,599
235,832
6.03
%
15,394,500
231,687
5.97
%
Other earning assets
203,238
1,601
3.17
%
250,992
2,489
3.93
%
Total earning assets
19,089,393
$
266,636
5.62
%
18,676,967
$
263,209
5.59
%
Allowance for loan and lease losses
(133,090
)
(123,954
)
Total non-earning assets
2,266,453
2,300,293
Total assets
$
21,222,756
$
20,853,306
Liabilities and
Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts
$
8,952,119
$
65,254
2.93
%
$
8,974,437
$
64,456
2.85
%
Regular savings
900,580
501
0.22
%
923,653
509
0.22
%
Time deposits
3,459,138
36,109
4.20
%
3,128,048
31,033
3.94
%
Total interest-bearing deposits
13,311,837
101,864
3.08
%
13,026,138
95,998
2.92
%
Other borrowings
1,012,797
13,226
5.25
%
792,629
9,955
4.98
%
Total interest-bearing
liabilities
$
14,324,634
$
115,090
3.23
%
$
13,818,767
$
105,953
3.04
%
Noninterest-bearing
liabilities:
Demand deposits
3,835,344
4,087,231
Other liabilities
494,535
516,597
Total liabilities
18,654,513
18,422,595
Stockholders' equity
2,568,243
2,430,711
Total liabilities and stockholders'
equity
$
21,222,756
$
20,853,306
Net interest income (FTE)
$
151,546
$
157,256
Interest rate spread
2.39
%
2.55
%
Cost of funds
2.43
%
2.25
%
Net interest margin (FTE)
3.19
%
3.34
%
______________________
(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 rounded amounts in thousands, which appear
above.
(3)
Nonaccrual loans are included in average
loans outstanding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240423083856/en/
Robert M. Gorman - (804) 523‑7828 Executive Vice President /
Chief Financial Officer
Atlantic Union Bankshares (NYSE:AUB)
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