Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Atlantic Union Bankshares Reports First Quarter Financial Results By: Atlantic Union Bankshares Corporation via Business Wire April 23, 2024 at 06:30 AM EDT 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/Contacts Robert M. Gorman - (804) 523‑7828 Executive Vice President / Chief Financial Officer Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Atlantic Union Bankshares Reports First Quarter Financial Results By: Atlantic Union Bankshares Corporation via Business Wire April 23, 2024 at 06:30 AM EDT 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/Contacts Robert M. Gorman - (804) 523‑7828 Executive Vice President / Chief Financial Officer
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/