Atlantic Union Bankshares Corporation (the “Company” or
“Atlantic Union”) (NYSE: AUB) reported net income available to
common shareholders of $32.7 million and basic and diluted earnings
per common share of $0.44 for the first quarter of 2023.
Excluding a pre-tax loss on the sale of securities of $13.4
million due to the sale of available for sale (“AFS”) securities
and a $5.0 million legal reserve associated with an ongoing
regulatory matter we previously disclosed, the Company reported for
the quarter ended March 31, 2023, adjusted operating earnings
available to common shareholders(1) of $47.2 million and adjusted
diluted operating earnings per common share(1) of $0.63.
On January 18, 2023, February 9, 2023, and March 6th through the
9th of 2023, the Company executed a balance sheet repositioning
strategy and sold AFS securities with a total book value of $505.7
million at a pre-tax loss of $13.4 million and used the net
proceeds to reduce existing high costing Federal Home Loan Bank
borrowings. The deleverage strategy provides the Company with
improved liquidity, enhanced tangible common equity, and additional
run rate earnings. The Company estimates the loss will be earned
back in approximately two years.
“Atlantic Union’s business model has stood the test of time over
our 121-year history,” said John C. Asbury, president and chief
executive officer of Atlantic Union. “Our franchise remains strong
even in these uncertain times as we are a diversified, traditional,
full-service bank that delivers the products and services of a
larger bank with the local decision making, responsiveness and
client service orientation to positively set us apart from other
banks, both larger and smaller. We also believe that our stable
deposit base remains a particular strength of our franchise.”
“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.”
NET INTEREST INCOME
For the first quarter of 2023, net interest income was $153.4
million, a decrease of $10.4 million from $163.8 million in the
fourth quarter of 2022. Net interest income (FTE)(1) was $157.2
million in the first quarter of 2023, a decrease of $10.7 million
from the fourth quarter of 2022. The decreases in net interest
income and net interest income (FTE)(1) were primarily driven by
the lower day count in the quarter, higher deposit and borrowing
costs due to increases in market interest rates, as well as changes
in the deposit mix as depositors migrated to higher costing
interest bearing deposit accounts. These decreases were partially
offset by an increase in loan yields due primarily to variable rate
loans repricing as short-term interest rates increased and an
increase in average loans. Our net interest margin decreased 20
basis points from the prior quarter to 3.41% at March 31, 2023, and
our net interest margin (FTE)(1) decreased 20 basis points during
the same period to 3.50%. Earning asset yields increased by 38
basis points to 4.92% in the first quarter of 2023 compared to the
fourth quarter of 2022, primarily due to the impact of increases in
market interest rates on loans. Our cost of funds increased by 58
basis points to 1.42% at March 31, 2023 compared to the prior
quarter, driven by higher deposit and borrowing costs and funding
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 $883,000 for the quarter
ended March 31, 2023, representing a decrease of $380,000 from the
prior quarter. The fourth quarter of 2022, the first quarter of
2023, 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 December 31,
2022
$
1,484
$
(12
)
$
(209
)
$
1,263
For the quarter ended March 31, 2023
1,106
(14
)
(209
)
883
For the remaining nine months of 2023
(estimated)
2,285
(17
)
(642
)
1,626
For the years ending (estimated):
2024
2,554
(4
)
(877
)
1,673
2025
1,983
(1
)
(900
)
1,082
2026
1,606
—
(926
)
680
2027
1,222
—
(953
)
269
2028
932
—
(983
)
(51
)
Thereafter
5,446
—
(7,011
)
(1,565
)
Total remaining acquisition accounting
fair value adjustments at March 31, 2023
$
16,028
$
(22
)
$
(12,292
)
$
3,714
ASSET QUALITY
Overview
At March 31, 2023, nonperforming assets (“NPAs”) as a percentage
of loans increased 1 basis point from the prior quarter to 0.20%
and included nonaccrual loans of $29.1 million. Accruing past due
loans as a percentage of total loans held for investment (“LHFI”)
totaled 21 basis points at both March 31, 2023 and December 31,
2022, representing a 1 basis point decrease from March 31, 2022.
Net charge-offs were 0.13% of total average loans (annualized) for
the first quarter of 2023, an increase of 11 basis points from
December 31, 2022, and an increase of 13 basis points from March
31, 2022, primarily due to charge-offs associated with two
commercial loans. The allowance for credit losses (“ACL”) totaled
$131.7 million at March 31, 2023, a $7.3 million increase from the
prior quarter.
Nonperforming Assets
At March 31, 2023, NPAs totaled $29.1 million, an increase of
$2.0 million from December 31, 2022. 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,
2023
2022
2022
2022
2022
Nonaccrual loans
$
29,082
$
27,038
$
26,500
$
29,070
$
29,032
Foreclosed properties
29
76
2,087
2,065
1,696
Total nonperforming assets
$
29,111
$
27,114
$
28,587
$
31,135
$
30,728
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,
2023
2022
2022
2022
2022
Beginning Balance
$
27,038
$
26,500
$
29,070
$
29,032
$
31,100
Net customer payments
(1,755
)
(1,805
)
(3,725
)
(2,472
)
(4,132
)
Additions
4,151
2,935
1,302
3,203
2,087
Charge-offs
(39
)
(461
)
(125
)
(311
)
(23
)
Loans returning to accruing status
(313
)
(131
)
—
—
—
Transfers to foreclosed property
—
—
(22
)
(382
)
—
Ending Balance
$
29,082
$
27,038
$
26,500
$
29,070
$
29,032
Past Due Loans
At March 31, 2023, past due loans still accruing interest
totaled $30.9 million or 0.21% of LHFI, compared to $30.0 million
or 0.21% of LHFI at December 31, 2022, and $29.6 million or 0.22%
of LHFI at March 31, 2022. Of the total past due loans still
accruing interest, $7.2 million or 0.05% of LHFI were loans past
due 90 days or more at March 31, 2023, compared to $7.5 million or
0.05% of LHFI at December 31, 2022, and $8.2 million or 0.06% of
LHFI at March 31, 2022.
Allowance for Credit Losses
At March 31, 2023, the ACL was $131.7 million and included an
allowance for loan and lease losses (“ALLL”) of $116.5 million and
a reserve for unfunded commitments of $15.2 million. The ACL at
March 31, 2023 increased $7.3 million from December 31, 2022 due to
increasing uncertainty in the economic outlook and loan growth
during the first quarter of 2023.
The ACL as a percentage of LHFI was 0.90% at March 31, 2023, an
increase of 4 basis points from December 31, 2022. The ALLL as a
percentage of LHFI was 0.80% at March 31, 2023, compared to 0.77%
at December 31, 2022.
Net Charge-offs
Net charge-offs were $4.6 million or 0.13% of total average LHFI
on an annualized basis for the first quarter of 2023, compared to
$810,000 or 0.02% (annualized) for the fourth quarter of 2022, and
less than 0.01% of total average LHFI (annualized) for the first
quarter of 2022. The majority of net charge-offs in the first
quarter of 2023 were related to two commercial loans within the
commercial and industrial and commercial real estate
portfolios.
Provision for Credit Losses
For the first quarter of 2023, the Company recorded a provision
for credit losses of $11.9 million, compared to a provision for
credit losses of $6.3 million in the prior quarter, and a provision
for credit losses of $2.8 million in the first quarter of 2022. The
provision for credit losses for the first quarter of 2023 reflected
a provision of $10.4 million for loan losses and a $1.5 million
provision for unfunded commitments.
NONINTEREST INCOME
Noninterest income decreased $14.9 million to $9.6 million for
the first quarter of 2023 from $24.5 million in the prior quarter,
primarily due to $13.4 million of losses incurred on the sale of
AFS securities, driven by the Company’s balance sheet repositioning
transactions executed during the quarter. In addition, loan-related
interest rate swap fees decreased $2.2 million from the prior
quarter due to lower transaction volumes. These declines in
noninterest income were partially offset by increases in several
noninterest income categories including certain service charges,
fiduciary and asset management fees, mortgage banking income, and
bank owned life insurance income.
NONINTEREST EXPENSE
Noninterest expense for the first quarter of 2023 increased to
$108.3 million from $99.8 million in the prior quarter primarily
due to a $1.8 million increase in salaries and benefits expense due
to seasonal increases in payroll related taxes and 401(k)
contribution expenses in the first quarter, (which was partially
offset by decreases in performance based variable incentive
compensation and profit-sharing expenses), a $2.0 million increase
in Federal Deposit Insurance Commission (“FDIC”) assessment fees
due to the increase in the FDIC assessment rates, effective January
1, 2023, and the impact of prior periods’ FDIC assessment fee
refunds reflected in the prior quarter, and other expenses
increased $7.0 million, reflecting a $5.0 million legal reserve
associated with an ongoing regulatory matter previously disclosed,
and a prior quarter gain of $3.2 million related to the sale and
leaseback of an office building, partially offset by lower teammate
and travel costs. These increases in noninterest expense were
partially offset by a $1.3 million decrease in technology and data
processing primarily due to the write-down of obsolete software in
the prior quarter, and a $1.0 million decrease in professional
services related to strategic projects that occurred in the prior
quarter.
INCOME TAXES
The effective tax rate for the three months ended March 31, 2023
was 17.0%, compared to 17.5% for the three months ended March 31,
2022. The decrease in the effective tax rate primarily reflects the
impact of changes in the proportion of tax-exempt income to pre-tax
income.
BALANCE SHEET
At March 31, 2023, total assets were $20.1 billion, a decrease
of $357.8 million or approximately 7.1% (annualized) from December
31, 2022, and an increase of $320.9 million or approximately 1.6%
from March 31, 2022. Total assets decreased from the prior quarter
primarily due to a decline in the investment securities portfolio
of $514.4 million, primarily due to the sale of AFS securities as
part of the Company’s balance sheet repositioning executed during
the quarter. The decrease in assets from the prior quarter was
partially offset by a $135.1 million increase in loans held for
investment (net of deferred fees and costs), driven by loan growth.
Total assets increased from the prior year due to the increase in
total loans held for investment (net of deferred fees and costs) of
$1.1 billion, driven by loan growth, partially offset by a decrease
in the investment securities portfolio of $831.8 million primarily
due to a decline in the market value of the AFS securities
portfolio, as well as the sale of AFS securities as part of the
Company’s balance sheet restructuring executed during the first
quarter of 2023.
At March 31, 2023, loans held for investment (net of deferred
fees and costs) totaled $14.6 billion, an increase of $135.1
million or 3.8% (annualized) from $14.4 billion, at December 31,
2022. Average loans held for investment (net of deferred fees and
costs) totaled $14.5 billion at March 31, 2023, an increase of
$388.2 million or 11.2% (annualized) from the prior quarter. At
March 31, 2023, loans held for investment (net of deferred fees and
costs) increased $1.1 billion or 8.4% from March 31, 2022, and
quarterly average loans increased $1.2 billion or 9.1% from the
same period in the prior year.
At March 31, 2023, total investments were $3.2 billion, a
decrease of $514.4 million from December 31, 2022, and a decrease
of $831.8 million from March 31, 2022. AFS securities totaled $2.3
billion at March 31, 2023, $2.7 billion at December 31, 2022, and
$3.2 billion at March 31, 2022. At March 31, 2023, total net
unrealized losses on the AFS securities portfolio were $407.9
million, an improvement of $54.7 million from total net unrealized
losses on AFS securities of $462.6 at December 31, 2022. Held to
maturity (“HTM”) securities are carried at cost and totaled $855.4
million at March 31, 2023, $847.7 million at December 31, 2022, and
$756.9 million at March 31, 2022 and have net unrealized losses of
$32.3 million at March 31, 2023, an improvement of $13.5 million
from net unrealized losses on HTM securities of $45.8 at December
31, 2022.
At March 31, 2023, total deposits were $16.5 billion, an
increase of $524.2 million or approximately 13.3% (annualized) from
December 31, 2022. Average deposits at March 31, 2023 decreased
from the prior quarter by $194.5 million or 4.7% (annualized).
Total deposits at March 31, 2023 decreased $28.3 million or 0.2%
from March 31, 2022, and quarterly average deposits at March 31,
2023 decreased $97.1 million or 0.6% from the same period in the
prior year. Total deposits increased from the prior quarter due to
a $829.5 million increase in interest-bearing deposits, which
includes approximately $377.9 million in brokered deposits,
partially offset by a $305.2 million decrease in demand deposits,
as customers moved funds from lower to higher yielding deposit
products.
The following table shows the Company’s capital ratios at the
quarters ended:
March 31,
December 31,
March 31,
2023
2022
2022
Common equity Tier 1 capital ratio (2)
9.91
%
9.95
%
9.86
%
Tier 1 capital ratio (2)
10.89
%
10.93
%
10.91
%
Total capital ratio (2)
13.76
%
13.70
%
13.79
%
Leverage ratio (Tier 1 capital to average
assets) (2)
9.38
%
9.42
%
9.07
%
Common equity to total assets
11.31
%
10.78
%
11.79
%
Tangible common equity to tangible assets
(1)
6.91
%
6.43
%
7.21
%
_____________________________
At March 31, 2023, the Company’s common equity to total assets
ratio and tangible common equity to tangible assets ratio increased
compared to the prior quarter primarily due to the decline in
unrealized losses on the AFS securities portfolio, driven by lower
long-term interest rates. These ratios decreased compared to the
prior year primarily due to unrealized losses on the AFS securities
portfolio recorded in other comprehensive income due to higher
market interest rates.
During the first quarter of 2023, 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 2022 and the first quarter of 2022. During the first quarter of
2023, the Company also declared and paid cash dividends of $0.30
per common share, consistent with the fourth quarter of 2022 and an
increase of $0.02 or approximately 7.1% from the first quarter of
2022.
_____________________________
(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, 2023 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 109 branches and approximately 125
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.
FIRST QUARTER 2023 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 25, 2023
during which management will review the financial results for the
first quarter 2023 and provide an update on recent activities.
The listen-only webcast and the accompanying slides can be
accessed at: https://edge.media-server.com/mmc/p/uhe7ig3g.
For analysts who wish to participate in the conference call,
please register at the following URL:
https://register.vevent.com/register/BIfbfa2d1f08f640fdac388b823867a523.
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, 2023, 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, the impact of future
economic conditions, estimates with respect to the earn back period
related to our recent balance sheet repositioning and the remaining
net accretion related to acquisition accounting, 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 the recent 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;
- 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
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, 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 the 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;
- the discontinuation of LIBOR and its impact on the financial
markets, and our 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 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 the Company’s Annual Report on Form 10‑K for the
year ended December 31, 2022 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
its businesses or operations. Readers are cautioned not to rely too
heavily on the forward-looking statements, and undue reliance
should not be placed on such 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.
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Results of
Operations
Interest and dividend income
$
217,546
$
202,068
$
138,456
Interest expense
64,103
38,220
7,525
Net interest income
153,443
163,848
130,931
Provision for credit losses
11,850
6,257
2,800
Net interest income after provision for
credit losses
141,593
157,591
128,131
Noninterest income
9,628
24,500
30,153
Noninterest expenses
108,274
99,790
105,321
Income before income taxes
42,947
82,301
52,963
Income tax expense
7,294
11,777
9,273
Net income
35,653
70,524
43,690
Dividends on preferred stock
2,967
2,967
2,967
Net income available to common
shareholders
$
32,686
$
67,557
$
40,723
Interest earned on earning assets (FTE)
(1)
$
221,334
$
206,186
$
141,792
Net interest income (FTE) (1)
157,231
167,966
134,267
Total revenue (FTE) (1)
166,859
192,466
164,420
Pre-tax pre-provision adjusted operating
earnings (7)
73,197
88,559
61,271
Key
Ratios
Earnings per common share, diluted
$
0.44
$
0.90
$
0.54
Return on average assets (ROA)
0.71
%
1.39
%
0.89
%
Return on average equity (ROE)
5.97
%
12.05
%
6.66
%
Return on average tangible common equity
(ROTCE) (2) (3)
10.71
%
22.92
%
11.53
%
Efficiency ratio
66.40
%
52.98
%
65.38
%
Efficiency ratio (FTE) (1)
64.89
%
51.85
%
64.06
%
Net interest margin
3.41
%
3.61
%
2.97
%
Net interest margin (FTE) (1)
3.50
%
3.70
%
3.04
%
Yields on earning assets (FTE) (1)
4.92
%
4.54
%
3.22
%
Cost of interest-bearing liabilities
2.02
%
1.24
%
0.26
%
Cost of deposits
1.28
%
0.72
%
0.11
%
Cost of funds
1.42
%
0.84
%
0.18
%
Operating
Measures (4)
Adjusted operating earnings
$
50,189
$
70,525
$
48,041
Adjusted operating earnings available to
common shareholders
47,222
67,558
45,074
Adjusted operating earnings per common
share, diluted
$
0.63
$
0.90
$
0.60
Adjusted operating ROA
1.00
%
1.39
%
0.98
%
Adjusted operating ROE
8.40
%
12.05
%
7.32
%
Adjusted operating ROTCE (2) (3)
15.22
%
22.92
%
12.69
%
Adjusted operating efficiency ratio (FTE)
(1)(6)
56.03
%
50.61
%
58.86
%
Per Share
Data
Earnings per common share, basic
$
0.44
$
0.90
$
0.54
Earnings per common share, diluted
0.44
0.90
0.54
Cash dividends paid per common share
0.30
0.30
0.28
Market value per share
35.05
35.14
36.69
Book value per common share
30.53
29.68
31.12
Tangible book value per common share
(2)
17.78
16.87
18.10
Price to earnings ratio, diluted
19.77
9.79
16.75
Price to book value per common share
ratio
1.15
1.18
1.18
Price to tangible book value per common
share ratio (2)
1.97
2.08
2.03
Weighted average common shares
outstanding, basic
74,832,141
74,712,040
75,544,644
Weighted average common shares
outstanding, diluted
74,835,514
74,713,972
75,556,127
Common shares outstanding at end of
period
74,989,228
74,712,622
75,335,956
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Capital
Ratios
Common equity Tier 1 capital ratio (5)
9.91
%
9.95
%
9.86
%
Tier 1 capital ratio (5)
10.89
%
10.93
%
10.91
%
Total capital ratio (5)
13.76
%
13.70
%
13.79
%
Leverage ratio (Tier 1 capital to average
assets) (5)
9.38
%
9.42
%
9.07
%
Common equity to total assets
11.31
%
10.78
%
11.79
%
Tangible common equity to tangible assets
(2)
6.91
%
6.43
%
7.21
%
Financial
Condition
Assets
$
20,103,370
$
20,461,138
$
19,782,430
LHFI (net of deferred fees and costs)
14,584,280
14,449,142
13,459,349
Securities
3,195,399
3,709,761
4,027,185
Earning Assets
17,984,057
18,271,430
17,731,089
Goodwill
925,211
925,211
935,560
Amortizable intangibles, net
24,482
26,761
40,273
Deposits
16,455,910
15,931,677
16,484,223
Borrowings
798,910
1,708,700
504,032
Stockholders' equity
2,440,236
2,372,737
2,498,335
Tangible common equity (2)
1,324,186
1,254,408
1,356,145
LHFI, net of
deferred fees and costs
Construction and land development
$
1,179,872
$
1,101,260
$
969,059
Commercial real estate - owner
occupied
1,956,585
1,982,608
2,007,671
Commercial real estate - non-owner
occupied
3,968,085
3,996,130
3,875,681
Multifamily real estate
822,006
802,923
723,940
Commercial & Industrial
3,082,478
2,983,349
2,540,680
Residential 1-4 Family - Commercial
522,760
538,063
569,801
Residential 1-4 Family - Consumer
974,511
940,275
824,163
Residential 1-4 Family - Revolving
589,791
585,184
568,403
Auto
600,658
592,976
499,855
Consumer
145,090
152,545
171,875
Other Commercial
742,444
773,829
708,221
Total LHFI
$
14,584,280
$
14,449,142
$
13,459,349
Deposits
Interest checking accounts
$
4,714,366
$
4,186,505
$
4,121,257
Money market accounts
3,547,514
3,922,533
4,151,152
Savings accounts
1,047,914
1,130,899
1,166,922
Customer time deposits of $250,000 and
over
541,447
405,060
365,796
Other customer time deposits
1,648,747
1,396,011
1,309,030
Time deposits
2,190,194
1,801,071
1,674,826
Total interest-bearing customer
deposits
11,499,988
11,041,008
11,114,157
Brokered deposits
377,913
7,430
3
Total interest-bearing deposits
$
11,877,901
$
11,048,438
$
11,114,160
Demand deposits
4,578,009
4,883,239
5,370,063
Total deposits
$
16,455,910
$
15,931,677
$
16,484,223
Averages
Assets
$
20,384,351
$
20,174,152
$
19,920,368
LHFI (net of deferred fees and costs)
14,505,611
14,117,433
13,300,789
Loans held for sale
5,876
7,809
14,636
Securities
3,467,561
3,644,196
4,198,582
Earning assets
18,238,088
18,000,596
17,885,018
Deposits
16,417,212
16,611,749
16,514,375
Time deposits
2,291,530
1,764,596
1,766,657
Interest-bearing deposits
11,723,865
11,415,032
11,286,277
Borrowings
1,122,244
816,818
511,722
Interest-bearing liabilities
12,846,109
12,231,850
11,797,999
Stockholders' equity
2,423,600
2,321,208
2,660,984
Tangible common equity (2)
1,306,445
1,201,732
1,517,325
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Asset
Quality
Allowance for
Credit Losses (ACL)
Beginning balance, Allowance for loan and
lease losses (ALLL)
$
110,768
$
108,009
$
99,787
Add: Recoveries
1,167
1,332
1,513
Less: Charge-offs
5,726
2,142
1,509
Add: Provision for loan losses
10,303
3,569
2,800
Ending balance, ALLL
$
116,512
$
110,768
$
102,591
Beginning balance, Reserve for unfunded
commitment (RUC)
$
13,675
$
11,000
$
8,000
Add: Provision for unfunded
commitments
1,524
2,675
—
Ending balance, RUC
$
15,199
$
13,675
$
8,000
Total ACL
$
131,711
$
124,443
$
110,591
ACL / total LHFI
0.90
%
0.86
%
0.82
%
ALLL / total LHFI
0.80
%
0.77
%
0.76
%
Net charge-offs / total average LHFI
0.13
%
0.02
%
0.00
%
Provision for loan losses/ total average
LHFI
0.29
%
0.10
%
0.09
%
Nonperforming
Assets
Construction and land development
$
363
$
307
$
869
Commercial real estate - owner
occupied
6,174
7,178
4,865
Commercial real estate - non-owner
occupied
1,481
1,263
3,287
Commercial & Industrial
4,815
1,884
1,975
Residential 1-4 Family - Commercial
1,907
1,904
2,239
Residential 1-4 Family - Consumer
10,540
10,846
12,039
Residential 1-4 Family - Revolving
3,449
3,453
3,371
Auto
347
200
333
Consumer
6
3
54
Nonaccrual loans
$
29,082
$
27,038
$
29,032
Foreclosed property
29
76
1,696
Total nonperforming assets (NPAs)
$
29,111
$
27,114
$
30,728
Construction and land development
$
249
$
100
$
1
Commercial real estate - owner
occupied
2,133
2,167
2,396
Commercial real estate - non-owner
occupied
1,032
607
1,735
Commercial & Industrial
633
459
763
Residential 1-4 Family - Commercial
232
275
878
Residential 1-4 Family - Consumer
859
1,955
1,147
Residential 1-4 Family - Revolving
1,766
1,384
1,065
Auto
137
344
192
Consumer
137
108
70
Other Commercial
66
91
—
LHFI ≥ 90 days and still accruing
$
7,244
$
7,490
$
8,247
Total NPAs and LHFI ≥ 90 days
$
36,355
$
34,604
$
38,975
NPAs / total LHFI
0.20
%
0.19
%
0.23
%
NPAs / total assets
0.14
%
0.13
%
0.16
%
ALLL / nonaccrual loans
400.63
%
409.68
%
353.37
%
ALLL/ nonperforming assets
400.23
%
408.53
%
333.87
%
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Past Due
Detail
Construction and land development
$
815
$
1,253
$
170
Commercial real estate - owner
occupied
2,251
2,305
5,081
Commercial real estate - non-owner
occupied
52
1,121
79
Multifamily real estate
—
1,229
124
Commercial & Industrial
981
824
1,382
Residential 1-4 Family - Commercial
1,399
1,231
827
Residential 1-4 Family - Consumer
11,579
5,951
5,890
Residential 1-4 Family - Revolving
1,384
1,843
1,157
Auto
2,026
2,747
1,508
Consumer
295
351
467
Other Commercial
—
—
1,270
LHFI 30-59 days past due
$
20,782
$
18,855
$
17,955
Construction and land development
$
—
$
45
$
—
Commercial real estate - owner
occupied
798
635
—
Commercial real estate - non-owner
occupied
—
48
223
Commercial & Industrial
61
174
745
Residential 1-4 Family - Commercial
271
—
251
Residential 1-4 Family - Consumer
158
1,690
1,018
Residential 1-4 Family - Revolving
1,069
511
651
Auto
295
450
183
Consumer
176
125
201
Other Commercial
—
—
95
LHFI 60-89 days past due
$
2,828
$
3,678
$
3,367
Past Due and still accruing
$
30,854
$
30,023
$
29,569
Past Due and still accruing / total
LHFI
0.21
%
0.21
%
0.22
%
Alternative
Performance Measures (non-GAAP)
Net interest
income (FTE) (1)
Net interest income (GAAP)
$
153,443
$
163,848
$
130,931
FTE adjustment
3,788
4,118
3,336
Net interest income (FTE) (non-GAAP)
$
157,231
$
167,966
$
134,267
Noninterest income (GAAP)
9,628
24,500
30,153
Total revenue (FTE) (non-GAAP)
$
166,859
$
192,466
$
164,420
Average earning assets
$
18,238,088
$
18,000,596
$
17,885,018
Net interest margin
3.41
%
3.61
%
2.97
%
Net interest margin (FTE)
3.50
%
3.70
%
3.04
%
Tangible
Assets (2)
Ending assets (GAAP)
$
20,103,370
$
20,461,138
$
19,782,430
Less: Ending goodwill
925,211
925,211
935,560
Less: Ending amortizable intangibles
24,482
26,761
40,273
Ending tangible assets (non-GAAP)
$
19,153,677
$
19,509,166
$
18,806,597
Tangible Common
Equity (2)
Ending equity (GAAP)
$
2,440,236
$
2,372,737
$
2,498,335
Less: Ending goodwill
925,211
925,211
935,560
Less: Ending amortizable intangibles
24,482
26,761
40,273
Less: Perpetual preferred stock
166,357
166,357
166,357
Ending tangible common equity
(non-GAAP)
$
1,324,186
$
1,254,408
$
1,356,145
Average equity (GAAP)
$
2,423,600
$
2,321,208
$
2,660,984
Less: Average goodwill
925,211
925,211
935,560
Less: Average amortizable intangibles
25,588
27,909
41,743
Less: Average perpetual preferred
stock
166,356
166,356
166,356
Average tangible common equity
(non-GAAP)
$
1,306,445
$
1,201,732
$
1,517,325
ROTCE
(2)(3)
Net income available to common
shareholders (GAAP)
$
32,686
$
67,557
$
40,723
Plus: Amortization of intangibles, tax
effected
1,800
1,881
2,401
Net income available to common
shareholders before amortization of intangibles (non-GAAP)
$
34,486
$
69,438
$
43,124
Return on average tangible common equity
(ROTCE)
10.71
%
22.92
%
11.53
%
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Operating
Measures (4)
Net income (GAAP)
$
35,653
$
70,524
$
43,690
Plus: Legal reserve, net of tax
3,950
—
—
Plus: Strategic branch closing and
facility consolidation costs, net of tax
—
—
4,351
Plus: Loss on sale of securities, net of
tax
10,586
1
—
Adjusted operating earnings (non-GAAP)
50,189
70,525
48,041
Less: Dividends on preferred stock
2,967
2,967
2,967
Adjusted operating earnings available to
common shareholders (non-GAAP)
$
47,222
$
67,558
$
45,074
Noninterest expense (GAAP)
$
108,274
$
99,790
$
105,321
Less: Amortization of intangible
assets
2,279
2,381
3,039
Less: Legal reserve
5,000
—
—
Less: Strategic branch closing and
facility consolidation costs
—
—
5,508
Adjusted operating noninterest expense
(non-GAAP)
$
100,995
$
97,409
$
96,774
Noninterest income (GAAP)
$
9,628
$
24,500
$
30,153
Plus: Loss on sale of securities
13,400
1
—
Adjusted operating noninterest income
(non-GAAP)
$
23,028
$
24,501
$
30,153
Net interest income (FTE) (non-GAAP)
(1)
$
157,231
$
167,966
$
134,267
Adjusted operating noninterest income
(non-GAAP)
23,028
24,501
30,153
Total adjusted revenue (FTE) (non-GAAP)
(1)
$
180,259
$
192,467
$
164,420
Efficiency ratio
66.40
%
52.98
%
65.38
%
Efficiency ratio (FTE) (1)
64.89
%
51.85
%
64.06
%
Adjusted operating efficiency ratio (FTE)
(1)(6)
56.03
%
50.61
%
58.86
%
Operating ROA
& ROE (4)
Adjusted operating earnings (non-GAAP)
$
50,189
$
70,525
$
48,041
Average assets (GAAP)
$
20,384,351
$
20,174,152
$
19,920,368
Return on average assets (ROA) (GAAP)
0.71
%
1.39
%
0.89
%
Adjusted operating return on average
assets (ROA) (non-GAAP)
1.00
%
1.39
%
0.98
%
Average equity (GAAP)
$
2,423,600
$
2,321,208
$
2,660,984
Return on average equity (ROE) (GAAP)
5.97
%
12.05
%
6.66
%
Adjusted operating return on average
equity (ROE) (non-GAAP)
8.40
%
12.05
%
7.32
%
Operating
ROTCE (2)(3)(4)
Adjusted operating earnings available to
common shareholders (non-GAAP)
$
47,222
$
67,558
$
45,074
Plus: Amortization of intangibles, tax
effected
1,800
1,881
2,401
Adjusted operating earnings available to
common shareholders before amortization of intangibles
(non-GAAP)
$
49,022
$
69,439
$
47,475
Average tangible common equity
(non-GAAP)
$
1,306,445
$
1,201,732
$
1,517,325
Adjusted operating return on average
tangible common equity (non-GAAP)
15.22
%
22.92
%
12.69
%
Pre-tax
pre-provision adjusted operating earnings (7)
Net income (GAAP)
$
35,653
$
70,524
$
43,690
Plus: Provision for credit losses
11,850
6,257
2,800
Plus: Income tax expense
7,294
11,777
9,273
Plus: Legal reserve
5,000
—
—
Plus: Strategic branch closing and
facility consolidation costs
—
—
5,508
Plus: Loss on sale of securities
13,400
1
—
Pre-tax pre-provision adjusted operating
earnings (non-GAAP)
$
73,197
$
88,559
$
61,271
Less: Dividends on preferred stock
2,967
2,967
2,967
Pre-tax pre-provision adjusted operating
earnings available to common shareholders (non-GAAP)
$
70,230
$
85,592
$
58,304
Weighted average common shares
outstanding, diluted
74,835,514
74,713,972
75,556,127
Pre-tax pre-provision earnings per common
share, diluted
$
0.94
$
1.15
$
0.77
ATLANTIC UNION BANKSHARES CORPORATION
AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(UNAUDITED)
(Dollars in thousands, except share
data)
As of & For Three Months
Ended
03/31/23
12/31/22
03/31/22
Mortgage
Origination Held for Sale Volume
Refinance Volume
$
3,452
$
2,312
$
33,201
Purchase Volume
32,192
29,262
58,295
Total Mortgage loan originations held for
sale
$
35,644
$
31,574
$
91,496
% of originations held for sale that are
refinances
9.7
%
7.3
%
36.3
%
Wealth
Assets under management
$
4,494,268
$
4,271,728
$
6,519,974
Other
Data
End of period full-time employees
1,840
1,877
1,853
Number of full-service branches
109
114
114
Number of automatic transaction machines
("ATMs")
127
131
132
_____________________________
(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 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 losses on sale of securities, a
legal reserve associated with an ongoing regulatory matter
previously disclosed, as well as strategic branch closure
initiatives and related facility consolidation costs (principally
composed of real estate, leases and other assets write downs, as
well as severance and 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.
(5)
All ratios at March 31, 2023 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 the amortization of intangible assets, losses on
sale of securities, a legal reserve associated with an ongoing
regulatory matter previously disclosed, as well as strategic branch
closure initiatives and related 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 continuing economic results of the organization’s
operations.
(7)
These are non-GAAP financial measures.
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,
losses on sale of securities, a legal reserve associated with an
ongoing regulatory matter previously disclosed, as well as
strategic branch closure initiatives and related facility
consolidation costs. 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,
2023
2022
2022
ASSETS
(unaudited)
(audited)
(unaudited)
Cash and cash equivalents:
Cash and due from banks
$
187,106
$
216,384
$
178,225
Interest-bearing deposits in other
banks
184,371
102,107
213,140
Federal funds sold
719
1,457
4,938
Total cash and cash equivalents
372,196
319,948
396,303
Securities available for sale, at fair
value
2,252,365
2,741,816
3,193,280
Securities held to maturity, at
carrying value
855,418
847,732
756,872
Restricted stock, at cost
87,616
120,213
77,033
Loans held for sale, at fair
value
14,213
3,936
21,227
Loans held for investment, net of
deferred fees and costs
14,584,280
14,449,142
13,459,349
Less: allowance for loan and lease
losses
116,512
110,768
102,591
Total loans held for investment,
net
14,467,768
14,338,374
13,356,758
Premises and equipment, net
116,466
118,243
130,998
Goodwill
925,211
925,211
935,560
Amortizable intangibles, net
24,482
26,761
40,273
Bank owned life insurance
443,537
440,656
434,012
Other assets
544,098
578,248
440,114
Total assets
$
20,103,370
$
20,461,138
$
19,782,430
LIABILITIES
Noninterest-bearing demand
deposits
$
4,578,009
$
4,883,239
$
5,370,063
Interest-bearing deposits
11,877,901
11,048,438
11,114,160
Total deposits
16,455,910
15,931,677
16,484,223
Securities sold under agreements to
repurchase
163,760
142,837
115,027
Other short-term borrowings
245,000
1,176,000
—
Long-term borrowings
390,150
389,863
389,005
Other liabilities
408,314
448,024
295,840
Total liabilities
17,663,134
18,088,401
17,284,095
Commitments and contingencies
STOCKHOLDERS'
EQUITY
Preferred stock, $10.00 par
value
173
173
173
Common stock, $1.33 par value
99,072
98,873
99,651
Additional paid-in capital
1,773,118
1,772,440
1,786,640
Retained earnings
929,806
919,537
803,354
Accumulated other comprehensive
loss
(361,933
)
(418,286
)
(191,483
)
Total stockholders' equity
2,440,236
2,372,737
2,498,335
Total liabilities and stockholders'
equity
$
20,103,370
$
20,461,138
$
19,782,430
Common shares outstanding
74,989,228
74,712,622
75,335,956
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,
2023
2022
2022
Interest and dividend income:
Interest and fees on loans
$
189,992
$
173,475
$
114,200
Interest on deposits in other banks
1,493
1,383
131
Interest and dividends on securities:
Taxable
16,753
16,196
13,666
Nontaxable
9,308
11,014
10,459
Total interest and dividend
income
217,546
202,068
138,456
Interest expense:
Interest on deposits
51,834
30,236
4,483
Interest on short-term borrowings
7,563
3,588
21
Interest on long-term borrowings
4,706
4,396
3,021
Total interest expense
64,103
38,220
7,525
Net interest income
153,443
163,848
130,931
Provision for credit losses
11,850
6,257
2,800
Net interest income after provision for
credit losses
141,593
157,591
128,131
Noninterest income:
Service charges on deposit accounts
7,902
7,631
7,596
Other service charges, commissions and
fees
1,746
1,631
1,655
Interchange fees
2,325
2,571
1,810
Fiduciary and asset management fees
4,262
4,085
7,255
Mortgage banking income
854
379
3,117
Loss on sale of securities
(13,400
)
(1
)
—
Bank owned life insurance income
2,828
2,649
2,697
Loan-related interest rate swap fees
1,439
3,664
3,860
Other operating income
1,672
1,891
2,163
Total noninterest income
9,628
24,500
30,153
Noninterest expenses:
Salaries and benefits
60,529
58,723
58,298
Occupancy expenses
6,356
6,328
6,883
Furniture and equipment expenses
3,752
3,978
3,597
Technology and data processing
8,142
9,442
7,796
Professional services
3,413
4,456
4,090
Marketing and advertising expense
2,351
2,228
2,163
FDIC assessment premiums and other
insurance
3,899
1,896
2,485
Franchise and other taxes
4,498
4,500
4,499
Loan-related expenses
1,552
1,356
1,776
Amortization of intangible assets
2,279
2,381
3,039
Other expenses
11,503
4,502
10,695
Total noninterest expenses
108,274
99,790
105,321
Income before income taxes
42,947
82,301
52,963
Income tax expense
7,294
11,777
9,273
Net income
$
35,653
$
70,524
$
43,690
Dividends on preferred stock
2,967
2,967
2,967
Net income available to common
shareholders
$
32,686
$
67,557
$
40,723
Basic earnings per common share
$
0.44
$
0.90
$
0.54
Diluted earnings per common share
$
0.44
$
0.90
$
0.54
AVERAGE BALANCES, INCOME AND EXPENSES,
YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)
(UNAUDITED)
(Dollars in thousands)
For the Quarter Ended
March 31, 2023
December 31, 2022
Average Balance
Interest Income / Expense
(1)
Yield / Rate (1)(2)
Average Balance
Interest Income / Expense
(1)
Yield / Rate (1)(2)
Assets:
Securities:
Taxable
$
2,038,215
$
16,753
3.33
%
$
2,016,845
$
16,196
3.19
%
Tax-exempt
1,429,346
11,782
3.34
%
1,627,351
13,942
3.40
%
Total securities
3,467,561
28,535
3.34
%
3,644,196
30,138
3.28
%
Loans, net (3)
14,505,611
191,178
5.35
%
14,117,433
174,531
4.90
%
Other earning assets
264,916
1,621
2.48
%
238,967
1,517
2.52
%
Total earning assets
18,238,088
$
221,334
4.92
%
18,000,596
$
206,186
4.54
%
Allowance for loan and lease losses
(112,172
)
(109,535
)
Total non-earning assets
2,258,435
2,283,091
Total assets
$
20,384,351
$
20,174,152
Liabilities and
Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts
$
8,344,900
$
38,315
1.86
%
$
8,495,299
$
24,712
1.15
%
Regular savings
1,087,435
364
0.14
%
1,155,137
110
0.04
%
Time deposits
2,291,530
13,155
2.33
%
1,764,596
5,414
1.22
%
Total interest-bearing deposits
11,723,865
51,834
1.79
%
11,415,032
30,236
1.05
%
Other borrowings
1,122,244
12,269
4.43
%
816,818
7,984
3.88
%
Total interest-bearing
liabilities
$
12,846,109
$
64,103
2.02
%
$
12,231,850
$
38,220
1.24
%
Noninterest-bearing
liabilities:
Demand deposits
4,693,347
5,196,717
Other liabilities
421,295
424,377
Total liabilities
17,960,751
17,852,944
Stockholders' equity
2,423,600
2,321,208
Total liabilities and stockholders'
equity
$
20,384,351
$
20,174,152
Net interest income
$
157,231
$
167,966
Interest rate spread
2.90
%
3.30
%
Cost of funds
1.42
%
0.84
%
Net interest margin
3.50
%
3.70
%
_____________________________
(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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230425005259/en/
Robert M. Gorman - (804) 523‑7828 Executive Vice President /
Chief Financial Officer
Atlantic Union Bankshares (NYSE:AUB)
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