Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Atlantic Union Bankshares Reports Fourth Quarter and Full Year Financial Results By: Atlantic Union Bankshares Corporation via Business Wire January 23, 2024 at 06:45 AM EST Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $53.9 million and basic and diluted earnings per common share of $0.72 for the fourth quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $58.9 million and adjusted diluted operating earnings per common share(1) of $0.78 for the fourth quarter of 2023. Net income available to common shareholders was $190.0 million and basic and diluted earnings per common share were $2.53 for the year ended December 31, 2023. Adjusted operating earnings available to common shareholders(1) were $221.2 million and adjusted diluted operating earnings per common share(1) were $2.95 for the year ended December 31, 2023. In the fourth quarter of 2023, the Company’s adjusted operating earnings(1) included the following main pre-tax adjustments: a $3.4 million Federal Deposit Insurance Corporation (“FDIC“) special assessment; an additional $3.3 million legal reserve related to the previously disclosed settlement with the Consumer Financial Protection Bureau (“CFPB”); $1.0 million in merger related costs associated with our pending merger with American National Bankshares Inc. (“American National”); and $1.9 million gain related to a sale-leaseback transaction executed in the quarter. “Looking back at 2023, it was a successful year for Atlantic Union, as we made good progress against our strategic plan, successfully responded to challenges within the banking industry, and delivered strong operating results,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We undertook important actions that we believe will better position Atlantic Union for the future and preserve positive operating leverage, including a meaningful reduction to our structural expense base, our pending acquisition of American National Bank in Danville, Virginia, and balance sheet restructuring. Additionally, our strong customer relationships, our stable deposit base, and strong asset quality have served us well in this demanding operating environment.” “We believe that our 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.” NET INTEREST INCOME For the fourth quarter of 2023, net interest income was $153.5 million, an increase of $1.6 million from $151.9 million in the third quarter of 2023. Net interest income (FTE)(1) was $157.3 million in the fourth quarter of 2023, an increase of $1.6 million from $155.7 million in the third quarter of 2023. The increases in net interest income and net interest income (FTE)( 1) were driven by higher yields on both available for sale (“AFS”) securities and the loan portfolio, as well as growth in average loans held for investment (“LHFI”). These increases were partially offset by higher deposit costs driven by continued competition for deposits, which drove higher customer deposit rates, changes in the deposit mix, as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances. Our net interest margin decreased 1 basis point from the prior quarter to 3.26% for the quarter ended December 31, 2023, and our net interest margin (FTE)(1) decreased 1 basis point to 3.34% for the quarter ended December 31, 2023. Earning asset yields for the fourth quarter of 2023 increased 20 basis points to 5.59% compared to the third quarter of 2023, primarily due to higher yields on loans and investments, as well as loan growth. Our cost of funds increased by 21 basis points to 2.25% at December 31, 2023 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 $718,000 for the quarter ended December 31, 2023, representing a decrease of $361,000. The impact of net accretion in the third and fourth quarters of 2023 are reflected in the following table (dollars in thousands): Loan Deposit Borrowings Accretion Amortization Amortization Total For the quarter ended September 30, 2023 $ 1,300 $ (6 ) $ (215 ) $ 1,079 For the quarter ended December 31, 2023 937 (4 ) (215 ) 718 ASSET QUALITY Overview At December 31, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.24%, an increase of 5 basis points from the prior quarter and included nonaccrual loans of $36.9 million. The increase in NPAs was primarily due to two new nonaccrual loans within the commercial real estate – non owner occupied and commercial and industrial portfolios. Accruing past due loans as a percentage of total LHFI totaled 31 basis points at December 31, 2023, an increase of 4 basis points from September 30, 2023, and an increase of 10 basis points from December 31, 2022. The increase in past due loan levels from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase in residential 1-4 family – consumer loans that were 30 days past due as of year-end, the majority of which subsequently became current. Net charge-offs were 0.03% of total average LHFI (annualized) for the fourth quarter of 2023, an increase of 2 basis points from September 30, 2023, and an increase of 1 basis point from December 31, 2022. The allowance for credit losses (“ACL”) totaled $148.5 million at December 31, 2023, a $7.5 million increase from the prior quarter. Nonperforming Assets At December 31, 2023, NPAs totaled $36.9 million, compared to $28.8 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Nonaccrual loans $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Foreclosed properties 29 149 50 29 76 Total nonperforming assets $ 36,889 $ 28,775 $ 29,155 $ 29,111 $ 27,114 The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Beginning Balance $ 28,626 $ 29,105 $ 29,082 $ 27,038 $ 26,500 Net customer payments (2,198 ) (1,947 ) (5,950 ) (1,755 ) (1,805 ) Additions 10,604 1,651 6,685 4,151 2,935 Charge-offs (172 ) (64 ) (712 ) (39 ) (461 ) Loans returning to accruing status — (119 ) — (313 ) (131 ) Ending Balance $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Past Due Loans At December 31, 2023, past due loans still accruing interest totaled $48.4 million or 0.31% of total LHFI, compared to $40.6 million or 0.27% of total LHFI at September 30, 2023, and $30.0 million or 0.21% of total LHFI at December 31, 2022. The increase in past due loan levels at December 31, 2023 from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase related to residential 1-4 family – consumer loans that were 30 days past due at year-end, the majority of which subsequently became current. Of the total past due loans still accruing interest, $13.9 million or 0.09% of total LHFI were loans past due 90 days or more at December 31, 2023, compared to $11.9 million or 0.08% of total LHFI at September 30, 2023, and $7.5 million or 0.05% of total LHFI at December 31, 2022. The increase in loans past due 90 days or more at December 31, 2023 from both September 30, 2023 was primarily due to one credit relationship within the residential 1-4 family – commercial portfolio and two credit relationships within the residential 1-4 family – consumer portfolio. Allowance for Credit Losses At December 31, 2023, the ACL was $148.5 million and included an allowance for loan and lease losses (“ALLL”) of $132.2 million and a reserve for unfunded commitments of $16.3 million. The ACL at December 31, 2023 increased $7.5 million from September 30, 2023 primarily due to loan growth in the fourth quarter of 2023 and an increase in the allowance on two individually assessed loans due to changes in borrower-specific circumstances. The reserve for unfunded commitments at December 31, 2023 increased $967,000 from September 30, 2023, primarily driven by an increase in unfunded commitments. The ACL as a percentage of total LHFI was 0.95% at December 31, 2023, an increase of 3 basis points from September 30, 2023. The ALLL as a percentage of total LHFI was 0.85% at December 31, 2023, compared to 0.82% at September 30, 2023. Net Charge-offs Net charge-offs were $1.2 million or 0.03% of total average LHFI on an annualized basis for the fourth quarter of 2023, compared to $294,000 or 0.01% (annualized) for the third quarter of 2023, and $810,000 or 0.02% (annualized) for the fourth quarter of 2022. The majority of net charge-offs in the fourth quarter of 2023 were related to overdrawn deposit accounts and third-party lending loans within the consumer portfolio. Provision for Credit Losses For the fourth quarter of 2023, the Company recorded a provision for credit losses of $8.7 million, compared to a provision for credit losses of $5.0 million in the prior quarter, and a provision for credit losses of $6.3 million in the fourth quarter of 2022. NONINTEREST INCOME Noninterest income increased $2.9 million to $30.0 million for the fourth quarter of 2023 from $27.1 million in the prior quarter, primarily driven by a $1.9 million gain related to a sale-leaseback transaction associated with one branch location executed during the fourth quarter, a $893,000 increase in loan-related interest rate swap fees in the fourth quarter due to several new swap transactions, and a $679,000 increase in loan syndication revenue in the fourth quarter (included in other operating income). In addition, other service charges, commissions, and fees decreased $843,000 in the fourth quarter, primarily due to a merchant vendor contract signing bonus realized in the prior quarter. Noninterest income in the prior quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities. NONINTEREST EXPENSE Noninterest expense decreased $579,000 to $107.9 million for the fourth quarter of 2023 from $108.5 million in the prior quarter, primarily driven by a decrease in other expenses due to costs associated with our strategic cost savings initiatives in the third quarter and lower merger-related costs associated with our pending merger with American National in the fourth quarter, partially offset by an increase in FDIC assessment premiums and other insurance due to a special assessment fee incurred in the fourth quarter and an increase in legal reserve related to our previously disclosed settlement with the CFPB (included in other expenses). Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.1 million in the fourth quarter and $2.2 million in the third quarter), a FDIC special assessment ($3.4 million recognized in the fourth quarter), the legal reserve related to our previously disclosed settlement with the CFPB ($3.3 million in the fourth quarter), merger-related costs associated with our pending merger with American National ($1.0 million in the fourth quarter and $2.0 million in the third quarter), and expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter), increased $2.5 million to $98.2 million for the fourth quarter from $95.7 million in the prior quarter, primarily due to a $1.2 million increase in other expenses reflecting an increase in OREO and credit related expenses, higher teammate training and travel expenses, and annual debit card inventory purchases, a $1.1 million increase in professional services expense primarily in support of strategic initiatives in the fourth quarter and higher legal fees, a $799,000 increase in marketing and advertising expense primarily due to annual customer disclosure mailings, and a $591,000 increase in occupancy expense driven by the increased lease payments related to the sale-leaseback transaction executed in the third quarter. These increases were partially offset by a $763,000 decrease in salaries and benefits, reflecting the impact of headcount reductions from our strategic cost savings initiatives. INCOME TAXES The effective tax rate for the three months ended December 31, 2023 and 2022 was 14.9% and 14.3%, respectively, and the effective tax rate for the years ended December 31, 2023 and 2022 was 15.9% and 16.2%, respectively. The changes in the effective tax rate for the quarter ended and year ended December 31, 2023, compared to December 31, 2022 are primarily driven by the changes in the proportion of tax-exempt income to pre-tax income. BALANCE SHEET At December 31, 2023, total assets were $21.2 billion, an increase of $430.0 million or approximately 8.2% (annualized) from September 30, 2023, and an increase of $705.1 million or approximately 3.4% from December 31, 2022. Total assets increased from the prior quarter primarily due to a $351.4 million increase in LHFI (net of deferred fees and costs). In addition, investment securities increased $151.1 million primarily due to a decrease in unrealized losses in the AFS securities portfolio due to the impact of declining market interest rates. Total assets increased from the same period in the prior year primarily due to a $1.2 billion increase in LHFI (net of deferred fees and costs), partially offset by a $525.7 million decrease in investment securities due primarily to the sale of AFS securities in the first quarter of 2023. At December 31, 2023, LHFI (net of deferred fees and costs) totaled $15.6 billion, an increase of $351.4 million or 9.1% (annualized) from $15.3 billion at September 30, 2023, and an increase of $1.2 billion or 8.2% from December 31, 2022. Quarterly average LHFI (net of deferred fees and costs) totaled $15.4 billion at December 31, 2023, an increase of $254.7 million or 6.7% (annualized) from the prior quarter, and an increase of $1.3 billion or 9.0% from December 31, 2022. LHFI (net of deferred fees and costs) increased from both the prior quarter and the prior year, primarily due to increases in the commercial and industrial and the multifamily real estate portfolios. At December 31, 2023, total investments were $3.2 billion, an increase of $151.1 million from September 30, 2023 and a decrease of $525.7 million from December 31, 2022. AFS securities totaled $2.2 billion at December 31, 2023, $2.1 billion at September 30, 2023, and $2.7 billion at December 31, 2022. Total net unrealized losses on the AFS securities portfolio were $384.3 million at December 31, 2023, compared to $523.1 million at September 30, 2023 and $462.5 million at December 31, 2022. Held to maturity securities are carried at cost and totaled $837.4 million at December 31, 2023, $843.3 million at September 30, 2023, and $847.7 million at December 31, 2022 and had net unrealized losses of $29.3 million at December 31, 2023, compared to $81.2 million at September 30, 2023 and $45.8 million at December 31, 2022. At December 31, 2023, total deposits were $16.8 billion, a slight increase compared to the prior quarter. Average deposits at December 31, 2023 increased from the prior quarter by $317.8 million or 7.5% (annualized). Total deposits at December 31, 2023 increased $886.5 million or 5.6% from December 31, 2022, and quarterly average deposits at December 31, 2023 increased $501.6 million or 3.0% 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 December 31, 2023, total borrowings were $1.3 billion, an increase of $291.2 million from September 30, 2023, and a decrease of $396.8 million from December 31, 2022. Total borrowings increased from the prior quarter primarily due to increased short-term borrowings used to fund loan growth and decreased from the same period in the prior year due to paydowns of short-term borrowings due to deposit growth. The following table shows the Company’s capital ratios at the quarters ended: December 31, September 30, December 31, 2023 2023 2022 Common equity Tier 1 capital ratio (2) 9.84 % 9.94 % 9.95 % Tier 1 capital ratio (2) 10.76 % 10.88 % 10.93 % Total capital ratio (2) 13.55 % 13.70 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (2) 9.63 % 9.62 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % Tangible common equity to tangible assets (1) 7.15 % 6.45 % 6.43 % _________________________ During the fourth quarter of 2023, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the third quarter of 2023 and the fourth quarter of 2022. During the fourth quarter of 2023, the Company also declared and paid cash dividends of $0.32 per common share, a $0.02 increase or approximately 6.7% from both the third quarter of 2023 and the fourth quarter of 2022. _________________________ (1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see the “Alternative Performance Measures (non-GAAP)” section of the Key Financial Results. (2) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed. ABOUT ATLANTIC UNION BANKSHARES CORPORATION Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2023. 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. FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE CONFERENCE CALL The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 23, 2024, during which the Company’s management will review the Company’s financial results for the fourth quarter and full year 2023 and provide an update on recent activities. The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/7yyvrwjv. For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BIfcd55f61c1d2456f9533b66bb36886b9. 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 December 31, 2023, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.” FORWARD-LOOKING STATEMENTS This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base and funding, the impact of future economic conditions, changes in economic conditions, our asset quality, our customer relationships, the expected impact of our cost saving measures initiated in the second quarter of 2023, 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 failure to close our previously announced merger with American National when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National; any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current interest rate environment; the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all; the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events; the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger; the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger; changes in the Company’s or American National’s share price before closing; monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve; the quality or composition of our loan or investment portfolios and changes therein; demand for loan products and financial services in our market areas; our ability to manage our growth or implement our growth strategy; the effectiveness of expense reduction plans; the introduction of new lines of business or new products and services; our ability to recruit and retain key employees; real estate values in our lending area; changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements; an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors; our liquidity and capital positions; concentrations of loans secured by real estate, particularly commercial real estate; the effectiveness of our credit processes and management of our credit risk; our ability to compete in the market for financial services and increased competition from fintech companies; technological risks and developments, and cyber threats, attacks, or events; operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for 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, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and March 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 the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise. ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Results of Operations Interest and dividend income $ 259,497 $ 247,159 $ 202,068 $ 954,450 $ 660,435 Interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income 56,907 54,017 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Interest earned on earning assets (FTE) (1) $ 263,209 $ 250,903 $ 206,186 $ 969,360 $ 675,308 Net interest income (FTE) (1) 157,256 155,685 167,966 625,923 599,134 Total revenue (FTE) (1) 187,215 182,779 192,466 716,800 717,657 Pre-tax pre-provision adjusted operating earnings (7) 81,356 81,086 88,559 310,193 295,411 Key Ratios Earnings per common share, diluted $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Return on average assets (ROA) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Return on average equity (ROE) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Return on average tangible common equity (ROTCE) (2) (3) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) (1) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Yields on earning assets (FTE) (1) 5.59 % 5.39 % 4.54 % 5.28 % 3.78 % Cost of interest-bearing liabilities 3.04 % 2.80 % 1.24 % 2.59 % 0.64 % Cost of deposits 2.23 % 1.97 % 0.72 % 1.78 % 0.34 % Cost of funds 2.25 % 2.04 % 0.84 % 1.87 % 0.42 % Operating Measures (4) Adjusted operating earnings $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Adjusted operating earnings available to common shareholders 58,853 59,782 67,558 221,238 219,011 Adjusted operating earnings per common share, diluted $ 0.78 $ 0.80 $ 0.90 $ 2.95 $ 2.92 Adjusted operating ROA 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Adjusted operating ROE 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Adjusted operating ROTCE (2) (3) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Per Share Data Earnings per common share, basic $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Earnings per common share, diluted 0.72 0.68 0.90 2.53 2.97 Cash dividends paid per common share 0.32 0.30 0.30 1.22 1.16 Market value per share 36.54 28.78 35.14 36.54 35.14 Book value per common share 32.06 29.82 29.68 32.06 29.68 Tangible book value per common share (2) 19.39 17.12 16.87 19.39 16.87 Price to earnings ratio, diluted 12.80 10.65 9.79 14.42 11.83 Price to book value per common share ratio 1.14 0.97 1.18 1.14 1.18 Price to tangible book value per common share ratio (2) 1.88 1.68 2.08 1.88 2.08 Weighted average common shares outstanding, basic 75,016,402 74,999,128 74,712,040 74,961,390 74,949,109 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Common shares outstanding at end of period 75,023,327 74,997,132 74,712,622 75,023,327 74,712,622 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Capital Ratios Common equity Tier 1 capital ratio (5) 9.84 % 9.94 % 9.95 % 9.84 % 9.95 % Tier 1 capital ratio (5) 10.76 % 10.88 % 10.93 % 10.76 % 10.93 % Total capital ratio (5) 13.55 % 13.70 % 13.70 % 13.55 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (5) 9.63 % 9.62 % 9.42 % 9.63 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % 11.29 % 10.78 % Tangible common equity to tangible assets (2) 7.15 % 6.45 % 6.43 % 7.15 % 6.43 % Financial Condition Assets $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 LHFI (net of deferred fees and costs) 15,635,043 15,283,620 14,449,142 15,635,043 14,449,142 Securities 3,184,111 3,032,982 3,709,761 3,184,111 3,709,761 Earning Assets 19,010,309 18,491,561 18,271,430 19,010,309 18,271,430 Goodwill 925,211 925,211 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 19,183 26,761 Deposits 16,818,129 16,786,505 15,931,677 16,818,129 15,931,677 Borrowings 1,311,858 1,020,669 1,708,700 1,311,858 1,708,700 Stockholders' equity 2,556,327 2,388,801 2,372,737 2,556,327 2,372,737 Tangible common equity (2) 1,445,576 1,275,956 1,254,408 1,445,576 1,254,408 LHFI, net of deferred fees and costs Construction and land development $ 1,107,850 $ 1,132,940 $ 1,101,260 $ 1,107,850 $ 1,101,260 Commercial real estate - owner occupied 1,998,787 1,975,281 1,982,608 1,998,787 1,982,608 Commercial real estate - non-owner occupied 4,172,401 4,148,218 3,996,130 4,172,401 3,996,130 Multifamily real estate 1,061,997 947,153 802,923 1,061,997 802,923 Commercial & Industrial 3,589,347 3,432,319 2,983,349 3,589,347 2,983,349 Residential 1-4 Family - Commercial 522,580 517,034 538,063 522,580 538,063 Residential 1-4 Family - Consumer 1,078,173 1,057,294 940,275 1,078,173 940,275 Residential 1-4 Family - Revolving 619,433 599,282 585,184 619,433 585,184 Auto 486,926 534,361 592,976 486,926 592,976 Consumer 120,641 126,151 152,545 120,641 152,545 Other Commercial 876,908 813,587 773,829 876,908 773,829 Total LHFI $ 15,635,043 $ 15,283,620 $ 14,449,142 $ 15,635,043 $ 14,449,142 Deposits Interest checking accounts $ 4,697,819 $ 5,055,464 $ 4,186,505 $ 4,697,819 $ 4,186,505 Money market accounts 3,850,679 3,472,953 3,922,533 3,850,679 3,922,533 Savings accounts 909,223 950,363 1,130,899 909,223 1,130,899 Customer time deposits of $250,000 and over 674,939 634,950 405,060 674,939 405,060 Other customer time deposits 2,173,904 2,011,106 1,396,011 2,173,904 1,396,011 Time deposits 2,848,843 2,646,056 1,801,071 2,848,843 1,801,071 Total interest-bearing customer deposits 12,306,564 12,124,836 11,041,008 12,306,564 11,041,008 Brokered deposits 548,384 516,720 7,430 548,384 7,430 Total interest-bearing deposits $ 12,854,948 $ 12,641,556 $ 11,048,438 $ 12,854,948 $ 11,048,438 Demand deposits 3,963,181 4,144,949 4,883,239 3,963,181 4,883,239 Total deposits $ 16,818,129 $ 16,786,505 $ 15,931,677 $ 16,818,129 $ 15,931,677 Averages Assets $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 LHFI (net of deferred fees and costs) 15,394,500 15,139,761 14,117,433 14,949,487 13,671,714 Loans held for sale 6,470 10,649 7,809 9,357 14,519 Securities 3,031,475 3,101,658 3,644,196 3,192,891 3,896,337 Earning assets 18,676,967 18,462,505 18,000,596 18,368,806 17,853,216 Deposits 17,113,369 16,795,611 16,611,749 16,653,888 16,451,718 Time deposits 3,128,048 2,914,004 1,764,596 2,711,491 1,735,983 Interest-bearing deposits 13,026,138 12,576,776 11,415,032 12,311,751 11,172,759 Borrowings 792,629 905,170 816,818 971,715 700,271 Interest-bearing liabilities 13,818,767 13,481,946 12,231,850 13,283,466 11,873,030 Stockholders' equity 2,430,711 2,446,902 2,321,208 2,440,525 2,465,049 Tangible common equity (2) 1,318,952 1,332,993 1,201,732 1,326,007 1,333,751 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Asset Quality Allowance for Credit Losses (ACL) Beginning balance, Allowance for loan and lease losses (ALLL) $ 125,627 $ 120,683 $ 108,009 $ 110,768 $ 99,787 Add: Recoveries 853 1,335 1,332 4,390 5,076 Less: Charge-offs 2,038 1,629 2,142 11,995 7,409 Add: Provision for loan losses 7,740 5,238 3,569 29,019 13,314 Ending balance, ALLL $ 132,182 $ 125,627 $ 110,768 $ 132,182 $ 110,768 Beginning balance, Reserve for unfunded commitment (RUC) $ 15,302 $ 15,548 $ 11,000 $ 13,675 $ 8,000 Add: Provision for unfunded commitments 967 (246) 2,675 2,594 5,675 Ending balance, RUC $ 16,269 $ 15,302 $ 13,675 $ 16,269 $ 13,675 Total ACL $ 148,451 $ 140,929 $ 124,443 $ 148,451 $ 124,443 ACL / total LHFI 0.95 % 0.92 % 0.86 % 0.95 % 0.86 % ALLL / total LHFI 0.85 % 0.82 % 0.77 % 0.85 % 0.77 % Net charge-offs / total average LHFI (annualized) 0.03 % 0.01 % 0.02 % 0.05 % 0.02 % Provision for loan losses/ total average LHFI (annualized) 0.20 % 0.14 % 0.10 % 0.19 % 0.10 % Nonperforming Assets Construction and land development $ 348 $ 355 $ 307 $ 348 $ 307 Commercial real estate - owner occupied 3,001 3,882 7,178 3,001 7,178 Commercial real estate - non-owner occupied 12,616 5,999 1,263 12,616 1,263 Commercial & Industrial 4,556 2,256 1,884 4,556 1,884 Residential 1-4 Family - Commercial 1,804 1,833 1,904 1,804 1,904 Residential 1-4 Family - Consumer 11,098 10,368 10,846 11,098 10,846 Residential 1-4 Family - Revolving 3,087 3,572 3,453 3,087 3,453 Auto 350 361 200 350 200 Consumer — — 3 — 3 Nonaccrual loans $ 36,860 $ 28,626 $ 27,038 $ 36,860 $ 27,038 Foreclosed property 29 149 76 29 76 Total nonperforming assets (NPAs) $ 36,889 $ 28,775 $ 27,114 $ 36,889 $ 27,114 Construction and land development $ 25 $ 25 $ 100 $ 25 $ 100 Commercial real estate - owner occupied 2,579 2,395 2,167 2,579 2,167 Commercial real estate - non-owner occupied 2,967 2,835 607 2,967 607 Commercial & Industrial 782 792 459 782 459 Residential 1-4 Family - Commercial 1,383 817 275 1,383 275 Residential 1-4 Family - Consumer 4,470 3,632 1,955 4,470 1,955 Residential 1-4 Family - Revolving 1,095 1,034 1,384 1,095 1,384 Auto 410 229 344 410 344 Consumer 152 97 108 152 108 Other Commercial — 15 91 — 91 LHFI ≥ 90 days and still accruing $ 13,863 $ 11,871 $ 7,490 $ 13,863 $ 7,490 Total NPAs and LHFI ≥ 90 days $ 50,752 $ 40,646 $ 34,604 $ 50,752 $ 34,604 NPAs / total LHFI 0.24 % 0.19 % 0.19 % 0.24 % 0.19 % NPAs / total assets 0.17 % 0.14 % 0.13 % 0.17 % 0.13 % ALLL / nonaccrual loans 358.61 % 438.86 % 409.68 % 358.61 % 409.68 % ALLL/ nonperforming assets 358.32 % 436.58 % 408.53 % 358.32 % 408.53 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Past Due Detail Construction and land development $ 270 $ — $ 1,253 $ 270 $ 1,253 Commercial real estate - owner occupied 1,575 3,501 2,305 1,575 2,305 Commercial real estate - non-owner occupied 545 4,573 1,121 545 1,121 Commercial & Industrial 4,303 3,049 824 4,303 824 Residential 1-4 Family - Commercial 567 744 1,231 567 1,231 Residential 1-4 Family - Consumer 7,546 1,000 5,951 7,546 5,951 Residential 1-4 Family - Revolving 2,238 2,326 1,843 2,238 1,843 Auto 4,737 2,703 2,747 4,737 2,747 Consumer 770 517 351 770 351 Other Commercial 6,569 3,545 — 6,569 — LHFI 30-59 days past due $ 29,120 $ 21,958 $ 18,855 $ 29,120 $ 18,855 Construction and land development $ 24 $ 386 $ 45 $ 24 $ 45 Commercial real estate - owner occupied — 1,902 635 — 635 Commercial real estate - non-owner occupied 184 797 48 184 48 Multifamily real estate 146 150 — 146 — Commercial & Industrial 49 576 174 49 174 Residential 1-4 Family - Commercial 676 67 — 676 — Residential 1-4 Family - Consumer 1,804 1,775 1,690 1,804 1,690 Residential 1-4 Family - Revolving 1,429 602 511 1,429 511 Auto 872 339 450 872 450 Consumer 232 164 125 232 125 LHFI 60-89 days past due $ 5,416 $ 6,758 $ 3,678 $ 5,416 $ 3,678 Past Due and still accruing $ 48,399 $ 40,587 $ 30,023 $ 48,399 $ 30,023 Past Due and still accruing / total LHFI 0.31 % 0.27 % 0.21 % 0.31 % 0.21 % Alternative Performance Measures (non-GAAP) Net interest income (FTE) (1) Net interest income (GAAP) $ 153,544 $ 151,941 $ 163,848 $ 611,013 $ 584,261 FTE adjustment 3,712 3,744 4,118 14,910 14,873 Net interest income (FTE) (non-GAAP) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Noninterest income (GAAP) 29,959 27,094 24,500 90,877 118,523 Total revenue (FTE) (non-GAAP) $ 187,215 $ 182,779 $ 192,466 $ 716,800 $ 717,657 Average earning assets $ 18,676,967 $ 18,462,505 $ 18,000,596 $ 18,368,806 $ 17,853,216 Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Tangible Assets (2) Ending assets (GAAP) $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Ending tangible assets (non-GAAP) $ 20,221,803 $ 19,789,748 $ 19,509,166 $ 20,221,803 $ 19,509,166 Tangible Common Equity (2) Ending equity (GAAP) $ 2,556,327 $ 2,388,801 $ 2,372,737 $ 2,556,327 $ 2,372,737 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Less: Perpetual preferred stock 166,357 166,357 166,357 166,357 166,357 Ending tangible common equity (non-GAAP) $ 1,445,576 $ 1,275,956 $ 1,254,408 $ 1,445,576 $ 1,254,408 Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Less: Average goodwill 925,211 925,211 925,211 925,211 930,315 Less: Average amortizable intangibles 20,192 22,342 27,909 22,951 34,627 Less: Average perpetual preferred stock 166,356 166,356 166,356 166,356 166,356 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 ROTCE (2)(3) Net income available to common shareholders (GAAP) $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Net income available to common shareholders before amortization of intangibles (non-GAAP) $ 55,594 $ 52,782 $ 69,438 $ 196,887 $ 231,186 Return on average tangible common equity (ROTCE) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Operating Measures (4) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Strategic cost saving initiatives, net of tax — 6,851 — 9,959 — Plus: Merger-related costs, net of tax 884 1,965 — 2,850 — Plus: Legal reserve, net of tax 2,859 — — 6,809 — Plus: FDIC special assessment, net of tax 2,656 — — 2,656 — Plus: Strategic branch closing and facility consolidation costs, net of tax — — — — 4,351 Less: Gain (loss) on sale of securities, net of tax 2 (21,799 ) (1 ) (32,381 ) (2 ) Less: Gain on sale-leaseback transaction, net of tax 1,484 21,883 — 23,367 — Less: Gain on sale of DHFB, net of tax — — — — 7,984 Adjusted operating earnings (non-GAAP) 61,820 62,749 70,525 233,106 230,879 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Operating Efficiency Ratio (1)(6) Noninterest expense (GAAP) $ 107,929 $ 108,508 $ 99,790 $ 430,371 $ 403,802 Less: Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Less: Strategic cost saving initiatives — 8,672 — 12,607 — Less: Merger-related costs 1,002 1,993 — 2,995 — Less: Legal reserve 3,300 — — 8,300 — Less: FDIC special assessment 3,362 — — 3,362 — Less: Strategic branch closing and facility consolidation costs — — — — 5,508 Adjusted operating noninterest expense (non-GAAP) $ 98,171 $ 95,650 $ 97,409 $ 394,326 $ 387,479 Noninterest income (GAAP) $ 29,959 $ 27,094 $ 24,500 $ 90,877 $ 118,523 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Adjusted operating noninterest income (non-GAAP) $ 28,077 $ 26,988 $ 24,501 $ 102,287 $ 109,444 Net interest income (FTE) (non-GAAP) (1) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Adjusted operating noninterest income (non-GAAP) 28,077 26,988 24,501 102,287 109,444 Total adjusted revenue (FTE) (non-GAAP) (1) $ 185,333 $ 182,673 $ 192,467 $ 728,210 $ 708,578 Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Operating ROA & ROE (4) Adjusted operating earnings (non-GAAP) $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Average assets (GAAP) $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 Return on average assets (ROA) (GAAP) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Adjusted operating return on average assets (ROA) (non-GAAP) 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Return on average equity (ROE) (GAAP) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Adjusted operating return on average equity (ROE) (non-GAAP) 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Operating ROTCE (2)(3)(4) Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) $ 60,507 $ 61,514 $ 69,439 $ 228,175 $ 227,555 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 Adjusted operating return on average tangible common equity (non-GAAP) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Pre-tax pre-provision adjusted operating earnings (7) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Plus: Income tax expense 9,960 11,519 11,777 38,083 45,444 Plus: Strategic cost saving initiatives — 8,672 — 12,607 — Plus: Merger-related costs 1,002 1,993 — 2,995 — Plus: Legal reserve 3,300 — — 8,300 — Plus: FDIC special assessment, net of tax 3,362 — — 3,362 — Plus: Strategic branch closing and facility consolidation costs — — — — 5,508 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 81,356 $ 81,086 $ 88,559 $ 310,193 $ 295,411 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) $ 78,389 $ 78,119 $ 85,592 $ 298,325 $ 283,543 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Pre-tax pre-provision earnings per common share, diluted $ 1.04 $ 1.04 $ 1.15 $ 3.98 $ 3.78 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Mortgage Origination Held for Sale Volume Refinance Volume $ 3,972 $ 2,239 $ 2,312 $ 13,740 $ 55,725 Purchase Volume 27,871 35,815 29,262 128,046 238,310 Total Mortgage loan originations held for sale $ 31,843 $ 38,054 $ 31,574 $ 141,786 $ 294,035 % of originations held for sale that are refinances 12.5 % 5.9 % 7.3 % 9.7 % 19.0 % Wealth Assets under management $ 5,014,208 $ 4,675,523 $ 4,271,728 $ 5,014,208 $ 4,271,728 Other Data End of period full-time employees 1,804 1,788 1,877 1,804 1,877 Number of full-service branches 109 109 114 109 114 Number of automatic transaction machines ("ATMs") 123 123 131 123 131 __________________________________ (1) These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components. (2) These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies. (3) These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and is useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally. (4) These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. (5) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed. (6) The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the organization’s operations. (7) These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closure initiatives and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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) December 31, September 30, December 31, 2023 2023 2022 ASSETS (unaudited) (unaudited) (audited) Cash and cash equivalents: Cash and due from banks $ 196,754 $ 233,526 $ 216,384 Interest-bearing deposits in other banks 167,601 159,718 102,107 Federal funds sold 13,776 5,701 1,457 Total cash and cash equivalents 378,131 398,945 319,948 Securities available for sale, at fair value 2,231,261 2,084,928 2,741,816 Securities held to maturity, at carrying value 837,378 843,269 847,732 Restricted stock, at cost 115,472 104,785 120,213 Loans held for sale 6,710 6,608 3,936 Loans held for investment, net of deferred fees and costs 15,635,043 15,283,620 14,449,142 Less: allowance for loan and lease losses 132,182 125,627 110,768 Total loans held for investment, net 15,502,861 15,157,993 14,338,374 Premises and equipment, net 90,959 94,510 118,243 Goodwill 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 Bank owned life insurance 452,565 449,452 440,656 Other assets 606,466 649,258 578,248 Total assets $ 21,166,197 $ 20,736,236 $ 20,461,138 LIABILITIES Noninterest-bearing demand deposits $ 3,963,181 $ 4,144,949 $ 4,883,239 Interest-bearing deposits 12,854,948 12,641,556 11,048,438 Total deposits 16,818,129 16,786,505 15,931,677 Securities sold under agreements to repurchase 110,833 134,936 142,837 Other short-term borrowings 810,000 495,000 1,176,000 Long-term borrowings 391,025 390,733 389,863 Other liabilities 479,883 540,261 448,024 Total liabilities 18,609,870 18,347,435 18,088,401 Commitments and contingencies STOCKHOLDERS' EQUITY Preferred stock, $10.00 par value 173 173 173 Common stock, $1.33 par value 99,147 99,120 98,873 Additional paid-in capital 1,782,286 1,779,281 1,772,440 Retained earnings 1,018,070 988,133 919,537 Accumulated other comprehensive loss (343,349 ) (477,906 ) (418,286 ) Total stockholders' equity 2,556,327 2,388,801 2,372,737 Total liabilities and stockholders' equity $ 21,166,197 $ 20,736,236 $ 20,461,138 Common shares outstanding 75,023,327 74,997,132 74,712,622 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 (Dollars in thousands, except share data) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Interest and dividend income: Interest and fees on loans $ 230,378 $ 221,380 $ 173,475 $ 846,923 $ 555,614 Interest on deposits in other banks 2,255 1,309 1,383 6,071 2,612 Interest and dividends on securities: Taxable 18,703 16,055 16,196 67,075 59,306 Nontaxable 8,161 8,415 11,014 34,381 42,903 Total interest and dividend income 259,497 247,159 202,068 954,450 660,435 Interest expense: Interest on deposits 95,998 83,590 30,236 296,689 56,201 Interest on short-term borrowings 5,043 6,499 3,588 27,148 5,393 Interest on long-term borrowings 4,912 5,129 4,396 19,600 14,580 Total interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income: Service charges on deposit accounts 8,662 8,557 7,631 33,240 30,052 Other service charges, commissions and fees 1,789 2,632 1,631 7,860 6,765 Interchange fees 2,581 2,314 2,571 9,678 9,110 Fiduciary and asset management fees 4,526 4,549 4,085 17,695 22,414 Mortgage banking income 774 666 379 2,743 7,085 Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Bank owned life insurance income 3,088 2,973 2,649 11,759 11,507 Loan-related interest rate swap fees 3,588 2,695 3,664 10,037 12,174 Other operating income 4,948 30,302 1,891 38,854 19,419 Total noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses: Salaries and benefits 56,686 57,449 58,723 236,682 228,926 Occupancy expenses 6,644 6,053 6,328 25,146 26,013 Furniture and equipment expenses 3,517 3,449 3,978 14,282 14,838 Technology and data processing 7,853 7,923 9,442 32,484 33,372 Professional services 4,346 3,291 4,456 15,483 16,730 Marketing and advertising expense 3,018 2,219 2,228 10,406 9,236 FDIC assessment premiums and other insurance 7,630 4,258 1,896 19,861 10,241 Franchise and other taxes 4,505 4,510 4,500 18,013 18,006 Loan-related expenses 1,060 1,388 1,356 5,619 6,574 Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Other expenses 10,576 15,775 4,502 43,614 29,051 Total noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income $ 56,907 $ 54,017 $ 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Basic earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Diluted earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED) (Dollars in thousands) For the Quarter Ended December 31, 2023 September 30, 2023 Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Assets: Securities: Taxable $ 1,771,312 $ 18,703 4.19% $ 1,799,675 $ 16,055 3.54% Tax-exempt 1,260,163 10,330 3.25% 1,301,983 10,653 3.25% Total securities 3,031,475 29,033 3.80% 3,101,658 26,708 3.42% LHFI, net of deferred fees and costs (3) 15,394,500 231,687 5.97% 15,139,761 222,698 5.84% Other earning assets 250,992 2,489 3.93% 221,086 1,497 2.69% Total earning assets 18,676,967 $ 263,209 5.59% 18,462,505 $ 250,903 5.39% Allowance for loan and lease losses (123,954 ) (121,229 ) Total non-earning assets 2,300,293 2,254,913 Total assets $ 20,853,306 $ 20,596,189 Liabilities and Stockholders' Equity: Interest-bearing deposits: Transaction and money market accounts $ 8,974,437 $ 64,456 2.85% $ 8,697,801 $ 57,378 2.62% Regular savings 923,653 509 0.22% 964,971 499 0.21% Time deposits 3,128,048 31,033 3.94% 2,914,004 25,713 3.50% Total interest-bearing deposits 13,026,138 95,998 2.92% 12,576,776 83,590 2.64% Other borrowings 792,629 9,955 4.98% 905,170 11,628 5.10% Total interest-bearing liabilities $ 13,818,767 $ 105,953 3.04% $ 13,481,946 $ 95,218 2.80% Noninterest-bearing liabilities: Demand deposits 4,087,231 4,218,835 Other liabilities 516,597 448,506 Total liabilities 18,422,595 18,149,287 Stockholders' equity 2,430,711 2,446,902 Total liabilities and stockholders' equity $ 20,853,306 $ 20,596,189 Net interest income (FTE) $ 157,256 $ 155,685 Interest rate spread 2.55% 2.59% Cost of funds 2.25% 2.04% Net interest margin (FTE) 3.34% 3.35% ________________________ (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/20240123265061/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 Fourth Quarter and Full Year Financial Results By: Atlantic Union Bankshares Corporation via Business Wire January 23, 2024 at 06:45 AM EST Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $53.9 million and basic and diluted earnings per common share of $0.72 for the fourth quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $58.9 million and adjusted diluted operating earnings per common share(1) of $0.78 for the fourth quarter of 2023. Net income available to common shareholders was $190.0 million and basic and diluted earnings per common share were $2.53 for the year ended December 31, 2023. Adjusted operating earnings available to common shareholders(1) were $221.2 million and adjusted diluted operating earnings per common share(1) were $2.95 for the year ended December 31, 2023. In the fourth quarter of 2023, the Company’s adjusted operating earnings(1) included the following main pre-tax adjustments: a $3.4 million Federal Deposit Insurance Corporation (“FDIC“) special assessment; an additional $3.3 million legal reserve related to the previously disclosed settlement with the Consumer Financial Protection Bureau (“CFPB”); $1.0 million in merger related costs associated with our pending merger with American National Bankshares Inc. (“American National”); and $1.9 million gain related to a sale-leaseback transaction executed in the quarter. “Looking back at 2023, it was a successful year for Atlantic Union, as we made good progress against our strategic plan, successfully responded to challenges within the banking industry, and delivered strong operating results,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We undertook important actions that we believe will better position Atlantic Union for the future and preserve positive operating leverage, including a meaningful reduction to our structural expense base, our pending acquisition of American National Bank in Danville, Virginia, and balance sheet restructuring. Additionally, our strong customer relationships, our stable deposit base, and strong asset quality have served us well in this demanding operating environment.” “We believe that our 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.” NET INTEREST INCOME For the fourth quarter of 2023, net interest income was $153.5 million, an increase of $1.6 million from $151.9 million in the third quarter of 2023. Net interest income (FTE)(1) was $157.3 million in the fourth quarter of 2023, an increase of $1.6 million from $155.7 million in the third quarter of 2023. The increases in net interest income and net interest income (FTE)( 1) were driven by higher yields on both available for sale (“AFS”) securities and the loan portfolio, as well as growth in average loans held for investment (“LHFI”). These increases were partially offset by higher deposit costs driven by continued competition for deposits, which drove higher customer deposit rates, changes in the deposit mix, as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances. Our net interest margin decreased 1 basis point from the prior quarter to 3.26% for the quarter ended December 31, 2023, and our net interest margin (FTE)(1) decreased 1 basis point to 3.34% for the quarter ended December 31, 2023. Earning asset yields for the fourth quarter of 2023 increased 20 basis points to 5.59% compared to the third quarter of 2023, primarily due to higher yields on loans and investments, as well as loan growth. Our cost of funds increased by 21 basis points to 2.25% at December 31, 2023 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 $718,000 for the quarter ended December 31, 2023, representing a decrease of $361,000. The impact of net accretion in the third and fourth quarters of 2023 are reflected in the following table (dollars in thousands): Loan Deposit Borrowings Accretion Amortization Amortization Total For the quarter ended September 30, 2023 $ 1,300 $ (6 ) $ (215 ) $ 1,079 For the quarter ended December 31, 2023 937 (4 ) (215 ) 718 ASSET QUALITY Overview At December 31, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.24%, an increase of 5 basis points from the prior quarter and included nonaccrual loans of $36.9 million. The increase in NPAs was primarily due to two new nonaccrual loans within the commercial real estate – non owner occupied and commercial and industrial portfolios. Accruing past due loans as a percentage of total LHFI totaled 31 basis points at December 31, 2023, an increase of 4 basis points from September 30, 2023, and an increase of 10 basis points from December 31, 2022. The increase in past due loan levels from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase in residential 1-4 family – consumer loans that were 30 days past due as of year-end, the majority of which subsequently became current. Net charge-offs were 0.03% of total average LHFI (annualized) for the fourth quarter of 2023, an increase of 2 basis points from September 30, 2023, and an increase of 1 basis point from December 31, 2022. The allowance for credit losses (“ACL”) totaled $148.5 million at December 31, 2023, a $7.5 million increase from the prior quarter. Nonperforming Assets At December 31, 2023, NPAs totaled $36.9 million, compared to $28.8 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Nonaccrual loans $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Foreclosed properties 29 149 50 29 76 Total nonperforming assets $ 36,889 $ 28,775 $ 29,155 $ 29,111 $ 27,114 The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Beginning Balance $ 28,626 $ 29,105 $ 29,082 $ 27,038 $ 26,500 Net customer payments (2,198 ) (1,947 ) (5,950 ) (1,755 ) (1,805 ) Additions 10,604 1,651 6,685 4,151 2,935 Charge-offs (172 ) (64 ) (712 ) (39 ) (461 ) Loans returning to accruing status — (119 ) — (313 ) (131 ) Ending Balance $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Past Due Loans At December 31, 2023, past due loans still accruing interest totaled $48.4 million or 0.31% of total LHFI, compared to $40.6 million or 0.27% of total LHFI at September 30, 2023, and $30.0 million or 0.21% of total LHFI at December 31, 2022. The increase in past due loan levels at December 31, 2023 from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase related to residential 1-4 family – consumer loans that were 30 days past due at year-end, the majority of which subsequently became current. Of the total past due loans still accruing interest, $13.9 million or 0.09% of total LHFI were loans past due 90 days or more at December 31, 2023, compared to $11.9 million or 0.08% of total LHFI at September 30, 2023, and $7.5 million or 0.05% of total LHFI at December 31, 2022. The increase in loans past due 90 days or more at December 31, 2023 from both September 30, 2023 was primarily due to one credit relationship within the residential 1-4 family – commercial portfolio and two credit relationships within the residential 1-4 family – consumer portfolio. Allowance for Credit Losses At December 31, 2023, the ACL was $148.5 million and included an allowance for loan and lease losses (“ALLL”) of $132.2 million and a reserve for unfunded commitments of $16.3 million. The ACL at December 31, 2023 increased $7.5 million from September 30, 2023 primarily due to loan growth in the fourth quarter of 2023 and an increase in the allowance on two individually assessed loans due to changes in borrower-specific circumstances. The reserve for unfunded commitments at December 31, 2023 increased $967,000 from September 30, 2023, primarily driven by an increase in unfunded commitments. The ACL as a percentage of total LHFI was 0.95% at December 31, 2023, an increase of 3 basis points from September 30, 2023. The ALLL as a percentage of total LHFI was 0.85% at December 31, 2023, compared to 0.82% at September 30, 2023. Net Charge-offs Net charge-offs were $1.2 million or 0.03% of total average LHFI on an annualized basis for the fourth quarter of 2023, compared to $294,000 or 0.01% (annualized) for the third quarter of 2023, and $810,000 or 0.02% (annualized) for the fourth quarter of 2022. The majority of net charge-offs in the fourth quarter of 2023 were related to overdrawn deposit accounts and third-party lending loans within the consumer portfolio. Provision for Credit Losses For the fourth quarter of 2023, the Company recorded a provision for credit losses of $8.7 million, compared to a provision for credit losses of $5.0 million in the prior quarter, and a provision for credit losses of $6.3 million in the fourth quarter of 2022. NONINTEREST INCOME Noninterest income increased $2.9 million to $30.0 million for the fourth quarter of 2023 from $27.1 million in the prior quarter, primarily driven by a $1.9 million gain related to a sale-leaseback transaction associated with one branch location executed during the fourth quarter, a $893,000 increase in loan-related interest rate swap fees in the fourth quarter due to several new swap transactions, and a $679,000 increase in loan syndication revenue in the fourth quarter (included in other operating income). In addition, other service charges, commissions, and fees decreased $843,000 in the fourth quarter, primarily due to a merchant vendor contract signing bonus realized in the prior quarter. Noninterest income in the prior quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities. NONINTEREST EXPENSE Noninterest expense decreased $579,000 to $107.9 million for the fourth quarter of 2023 from $108.5 million in the prior quarter, primarily driven by a decrease in other expenses due to costs associated with our strategic cost savings initiatives in the third quarter and lower merger-related costs associated with our pending merger with American National in the fourth quarter, partially offset by an increase in FDIC assessment premiums and other insurance due to a special assessment fee incurred in the fourth quarter and an increase in legal reserve related to our previously disclosed settlement with the CFPB (included in other expenses). Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.1 million in the fourth quarter and $2.2 million in the third quarter), a FDIC special assessment ($3.4 million recognized in the fourth quarter), the legal reserve related to our previously disclosed settlement with the CFPB ($3.3 million in the fourth quarter), merger-related costs associated with our pending merger with American National ($1.0 million in the fourth quarter and $2.0 million in the third quarter), and expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter), increased $2.5 million to $98.2 million for the fourth quarter from $95.7 million in the prior quarter, primarily due to a $1.2 million increase in other expenses reflecting an increase in OREO and credit related expenses, higher teammate training and travel expenses, and annual debit card inventory purchases, a $1.1 million increase in professional services expense primarily in support of strategic initiatives in the fourth quarter and higher legal fees, a $799,000 increase in marketing and advertising expense primarily due to annual customer disclosure mailings, and a $591,000 increase in occupancy expense driven by the increased lease payments related to the sale-leaseback transaction executed in the third quarter. These increases were partially offset by a $763,000 decrease in salaries and benefits, reflecting the impact of headcount reductions from our strategic cost savings initiatives. INCOME TAXES The effective tax rate for the three months ended December 31, 2023 and 2022 was 14.9% and 14.3%, respectively, and the effective tax rate for the years ended December 31, 2023 and 2022 was 15.9% and 16.2%, respectively. The changes in the effective tax rate for the quarter ended and year ended December 31, 2023, compared to December 31, 2022 are primarily driven by the changes in the proportion of tax-exempt income to pre-tax income. BALANCE SHEET At December 31, 2023, total assets were $21.2 billion, an increase of $430.0 million or approximately 8.2% (annualized) from September 30, 2023, and an increase of $705.1 million or approximately 3.4% from December 31, 2022. Total assets increased from the prior quarter primarily due to a $351.4 million increase in LHFI (net of deferred fees and costs). In addition, investment securities increased $151.1 million primarily due to a decrease in unrealized losses in the AFS securities portfolio due to the impact of declining market interest rates. Total assets increased from the same period in the prior year primarily due to a $1.2 billion increase in LHFI (net of deferred fees and costs), partially offset by a $525.7 million decrease in investment securities due primarily to the sale of AFS securities in the first quarter of 2023. At December 31, 2023, LHFI (net of deferred fees and costs) totaled $15.6 billion, an increase of $351.4 million or 9.1% (annualized) from $15.3 billion at September 30, 2023, and an increase of $1.2 billion or 8.2% from December 31, 2022. Quarterly average LHFI (net of deferred fees and costs) totaled $15.4 billion at December 31, 2023, an increase of $254.7 million or 6.7% (annualized) from the prior quarter, and an increase of $1.3 billion or 9.0% from December 31, 2022. LHFI (net of deferred fees and costs) increased from both the prior quarter and the prior year, primarily due to increases in the commercial and industrial and the multifamily real estate portfolios. At December 31, 2023, total investments were $3.2 billion, an increase of $151.1 million from September 30, 2023 and a decrease of $525.7 million from December 31, 2022. AFS securities totaled $2.2 billion at December 31, 2023, $2.1 billion at September 30, 2023, and $2.7 billion at December 31, 2022. Total net unrealized losses on the AFS securities portfolio were $384.3 million at December 31, 2023, compared to $523.1 million at September 30, 2023 and $462.5 million at December 31, 2022. Held to maturity securities are carried at cost and totaled $837.4 million at December 31, 2023, $843.3 million at September 30, 2023, and $847.7 million at December 31, 2022 and had net unrealized losses of $29.3 million at December 31, 2023, compared to $81.2 million at September 30, 2023 and $45.8 million at December 31, 2022. At December 31, 2023, total deposits were $16.8 billion, a slight increase compared to the prior quarter. Average deposits at December 31, 2023 increased from the prior quarter by $317.8 million or 7.5% (annualized). Total deposits at December 31, 2023 increased $886.5 million or 5.6% from December 31, 2022, and quarterly average deposits at December 31, 2023 increased $501.6 million or 3.0% 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 December 31, 2023, total borrowings were $1.3 billion, an increase of $291.2 million from September 30, 2023, and a decrease of $396.8 million from December 31, 2022. Total borrowings increased from the prior quarter primarily due to increased short-term borrowings used to fund loan growth and decreased from the same period in the prior year due to paydowns of short-term borrowings due to deposit growth. The following table shows the Company’s capital ratios at the quarters ended: December 31, September 30, December 31, 2023 2023 2022 Common equity Tier 1 capital ratio (2) 9.84 % 9.94 % 9.95 % Tier 1 capital ratio (2) 10.76 % 10.88 % 10.93 % Total capital ratio (2) 13.55 % 13.70 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (2) 9.63 % 9.62 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % Tangible common equity to tangible assets (1) 7.15 % 6.45 % 6.43 % _________________________ During the fourth quarter of 2023, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the third quarter of 2023 and the fourth quarter of 2022. During the fourth quarter of 2023, the Company also declared and paid cash dividends of $0.32 per common share, a $0.02 increase or approximately 6.7% from both the third quarter of 2023 and the fourth quarter of 2022. _________________________ (1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see the “Alternative Performance Measures (non-GAAP)” section of the Key Financial Results. (2) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed. ABOUT ATLANTIC UNION BANKSHARES CORPORATION Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2023. 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. FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE CONFERENCE CALL The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 23, 2024, during which the Company’s management will review the Company’s financial results for the fourth quarter and full year 2023 and provide an update on recent activities. The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/7yyvrwjv. For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BIfcd55f61c1d2456f9533b66bb36886b9. 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 December 31, 2023, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.” FORWARD-LOOKING STATEMENTS This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base and funding, the impact of future economic conditions, changes in economic conditions, our asset quality, our customer relationships, the expected impact of our cost saving measures initiated in the second quarter of 2023, 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 failure to close our previously announced merger with American National when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National; any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current interest rate environment; the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all; the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events; the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger; the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger; changes in the Company’s or American National’s share price before closing; monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve; the quality or composition of our loan or investment portfolios and changes therein; demand for loan products and financial services in our market areas; our ability to manage our growth or implement our growth strategy; the effectiveness of expense reduction plans; the introduction of new lines of business or new products and services; our ability to recruit and retain key employees; real estate values in our lending area; changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements; an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors; our liquidity and capital positions; concentrations of loans secured by real estate, particularly commercial real estate; the effectiveness of our credit processes and management of our credit risk; our ability to compete in the market for financial services and increased competition from fintech companies; technological risks and developments, and cyber threats, attacks, or events; operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for 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, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and March 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 the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise. ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Results of Operations Interest and dividend income $ 259,497 $ 247,159 $ 202,068 $ 954,450 $ 660,435 Interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income 56,907 54,017 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Interest earned on earning assets (FTE) (1) $ 263,209 $ 250,903 $ 206,186 $ 969,360 $ 675,308 Net interest income (FTE) (1) 157,256 155,685 167,966 625,923 599,134 Total revenue (FTE) (1) 187,215 182,779 192,466 716,800 717,657 Pre-tax pre-provision adjusted operating earnings (7) 81,356 81,086 88,559 310,193 295,411 Key Ratios Earnings per common share, diluted $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Return on average assets (ROA) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Return on average equity (ROE) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Return on average tangible common equity (ROTCE) (2) (3) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) (1) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Yields on earning assets (FTE) (1) 5.59 % 5.39 % 4.54 % 5.28 % 3.78 % Cost of interest-bearing liabilities 3.04 % 2.80 % 1.24 % 2.59 % 0.64 % Cost of deposits 2.23 % 1.97 % 0.72 % 1.78 % 0.34 % Cost of funds 2.25 % 2.04 % 0.84 % 1.87 % 0.42 % Operating Measures (4) Adjusted operating earnings $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Adjusted operating earnings available to common shareholders 58,853 59,782 67,558 221,238 219,011 Adjusted operating earnings per common share, diluted $ 0.78 $ 0.80 $ 0.90 $ 2.95 $ 2.92 Adjusted operating ROA 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Adjusted operating ROE 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Adjusted operating ROTCE (2) (3) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Per Share Data Earnings per common share, basic $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Earnings per common share, diluted 0.72 0.68 0.90 2.53 2.97 Cash dividends paid per common share 0.32 0.30 0.30 1.22 1.16 Market value per share 36.54 28.78 35.14 36.54 35.14 Book value per common share 32.06 29.82 29.68 32.06 29.68 Tangible book value per common share (2) 19.39 17.12 16.87 19.39 16.87 Price to earnings ratio, diluted 12.80 10.65 9.79 14.42 11.83 Price to book value per common share ratio 1.14 0.97 1.18 1.14 1.18 Price to tangible book value per common share ratio (2) 1.88 1.68 2.08 1.88 2.08 Weighted average common shares outstanding, basic 75,016,402 74,999,128 74,712,040 74,961,390 74,949,109 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Common shares outstanding at end of period 75,023,327 74,997,132 74,712,622 75,023,327 74,712,622 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Capital Ratios Common equity Tier 1 capital ratio (5) 9.84 % 9.94 % 9.95 % 9.84 % 9.95 % Tier 1 capital ratio (5) 10.76 % 10.88 % 10.93 % 10.76 % 10.93 % Total capital ratio (5) 13.55 % 13.70 % 13.70 % 13.55 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (5) 9.63 % 9.62 % 9.42 % 9.63 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % 11.29 % 10.78 % Tangible common equity to tangible assets (2) 7.15 % 6.45 % 6.43 % 7.15 % 6.43 % Financial Condition Assets $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 LHFI (net of deferred fees and costs) 15,635,043 15,283,620 14,449,142 15,635,043 14,449,142 Securities 3,184,111 3,032,982 3,709,761 3,184,111 3,709,761 Earning Assets 19,010,309 18,491,561 18,271,430 19,010,309 18,271,430 Goodwill 925,211 925,211 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 19,183 26,761 Deposits 16,818,129 16,786,505 15,931,677 16,818,129 15,931,677 Borrowings 1,311,858 1,020,669 1,708,700 1,311,858 1,708,700 Stockholders' equity 2,556,327 2,388,801 2,372,737 2,556,327 2,372,737 Tangible common equity (2) 1,445,576 1,275,956 1,254,408 1,445,576 1,254,408 LHFI, net of deferred fees and costs Construction and land development $ 1,107,850 $ 1,132,940 $ 1,101,260 $ 1,107,850 $ 1,101,260 Commercial real estate - owner occupied 1,998,787 1,975,281 1,982,608 1,998,787 1,982,608 Commercial real estate - non-owner occupied 4,172,401 4,148,218 3,996,130 4,172,401 3,996,130 Multifamily real estate 1,061,997 947,153 802,923 1,061,997 802,923 Commercial & Industrial 3,589,347 3,432,319 2,983,349 3,589,347 2,983,349 Residential 1-4 Family - Commercial 522,580 517,034 538,063 522,580 538,063 Residential 1-4 Family - Consumer 1,078,173 1,057,294 940,275 1,078,173 940,275 Residential 1-4 Family - Revolving 619,433 599,282 585,184 619,433 585,184 Auto 486,926 534,361 592,976 486,926 592,976 Consumer 120,641 126,151 152,545 120,641 152,545 Other Commercial 876,908 813,587 773,829 876,908 773,829 Total LHFI $ 15,635,043 $ 15,283,620 $ 14,449,142 $ 15,635,043 $ 14,449,142 Deposits Interest checking accounts $ 4,697,819 $ 5,055,464 $ 4,186,505 $ 4,697,819 $ 4,186,505 Money market accounts 3,850,679 3,472,953 3,922,533 3,850,679 3,922,533 Savings accounts 909,223 950,363 1,130,899 909,223 1,130,899 Customer time deposits of $250,000 and over 674,939 634,950 405,060 674,939 405,060 Other customer time deposits 2,173,904 2,011,106 1,396,011 2,173,904 1,396,011 Time deposits 2,848,843 2,646,056 1,801,071 2,848,843 1,801,071 Total interest-bearing customer deposits 12,306,564 12,124,836 11,041,008 12,306,564 11,041,008 Brokered deposits 548,384 516,720 7,430 548,384 7,430 Total interest-bearing deposits $ 12,854,948 $ 12,641,556 $ 11,048,438 $ 12,854,948 $ 11,048,438 Demand deposits 3,963,181 4,144,949 4,883,239 3,963,181 4,883,239 Total deposits $ 16,818,129 $ 16,786,505 $ 15,931,677 $ 16,818,129 $ 15,931,677 Averages Assets $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 LHFI (net of deferred fees and costs) 15,394,500 15,139,761 14,117,433 14,949,487 13,671,714 Loans held for sale 6,470 10,649 7,809 9,357 14,519 Securities 3,031,475 3,101,658 3,644,196 3,192,891 3,896,337 Earning assets 18,676,967 18,462,505 18,000,596 18,368,806 17,853,216 Deposits 17,113,369 16,795,611 16,611,749 16,653,888 16,451,718 Time deposits 3,128,048 2,914,004 1,764,596 2,711,491 1,735,983 Interest-bearing deposits 13,026,138 12,576,776 11,415,032 12,311,751 11,172,759 Borrowings 792,629 905,170 816,818 971,715 700,271 Interest-bearing liabilities 13,818,767 13,481,946 12,231,850 13,283,466 11,873,030 Stockholders' equity 2,430,711 2,446,902 2,321,208 2,440,525 2,465,049 Tangible common equity (2) 1,318,952 1,332,993 1,201,732 1,326,007 1,333,751 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Asset Quality Allowance for Credit Losses (ACL) Beginning balance, Allowance for loan and lease losses (ALLL) $ 125,627 $ 120,683 $ 108,009 $ 110,768 $ 99,787 Add: Recoveries 853 1,335 1,332 4,390 5,076 Less: Charge-offs 2,038 1,629 2,142 11,995 7,409 Add: Provision for loan losses 7,740 5,238 3,569 29,019 13,314 Ending balance, ALLL $ 132,182 $ 125,627 $ 110,768 $ 132,182 $ 110,768 Beginning balance, Reserve for unfunded commitment (RUC) $ 15,302 $ 15,548 $ 11,000 $ 13,675 $ 8,000 Add: Provision for unfunded commitments 967 (246) 2,675 2,594 5,675 Ending balance, RUC $ 16,269 $ 15,302 $ 13,675 $ 16,269 $ 13,675 Total ACL $ 148,451 $ 140,929 $ 124,443 $ 148,451 $ 124,443 ACL / total LHFI 0.95 % 0.92 % 0.86 % 0.95 % 0.86 % ALLL / total LHFI 0.85 % 0.82 % 0.77 % 0.85 % 0.77 % Net charge-offs / total average LHFI (annualized) 0.03 % 0.01 % 0.02 % 0.05 % 0.02 % Provision for loan losses/ total average LHFI (annualized) 0.20 % 0.14 % 0.10 % 0.19 % 0.10 % Nonperforming Assets Construction and land development $ 348 $ 355 $ 307 $ 348 $ 307 Commercial real estate - owner occupied 3,001 3,882 7,178 3,001 7,178 Commercial real estate - non-owner occupied 12,616 5,999 1,263 12,616 1,263 Commercial & Industrial 4,556 2,256 1,884 4,556 1,884 Residential 1-4 Family - Commercial 1,804 1,833 1,904 1,804 1,904 Residential 1-4 Family - Consumer 11,098 10,368 10,846 11,098 10,846 Residential 1-4 Family - Revolving 3,087 3,572 3,453 3,087 3,453 Auto 350 361 200 350 200 Consumer — — 3 — 3 Nonaccrual loans $ 36,860 $ 28,626 $ 27,038 $ 36,860 $ 27,038 Foreclosed property 29 149 76 29 76 Total nonperforming assets (NPAs) $ 36,889 $ 28,775 $ 27,114 $ 36,889 $ 27,114 Construction and land development $ 25 $ 25 $ 100 $ 25 $ 100 Commercial real estate - owner occupied 2,579 2,395 2,167 2,579 2,167 Commercial real estate - non-owner occupied 2,967 2,835 607 2,967 607 Commercial & Industrial 782 792 459 782 459 Residential 1-4 Family - Commercial 1,383 817 275 1,383 275 Residential 1-4 Family - Consumer 4,470 3,632 1,955 4,470 1,955 Residential 1-4 Family - Revolving 1,095 1,034 1,384 1,095 1,384 Auto 410 229 344 410 344 Consumer 152 97 108 152 108 Other Commercial — 15 91 — 91 LHFI ≥ 90 days and still accruing $ 13,863 $ 11,871 $ 7,490 $ 13,863 $ 7,490 Total NPAs and LHFI ≥ 90 days $ 50,752 $ 40,646 $ 34,604 $ 50,752 $ 34,604 NPAs / total LHFI 0.24 % 0.19 % 0.19 % 0.24 % 0.19 % NPAs / total assets 0.17 % 0.14 % 0.13 % 0.17 % 0.13 % ALLL / nonaccrual loans 358.61 % 438.86 % 409.68 % 358.61 % 409.68 % ALLL/ nonperforming assets 358.32 % 436.58 % 408.53 % 358.32 % 408.53 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Past Due Detail Construction and land development $ 270 $ — $ 1,253 $ 270 $ 1,253 Commercial real estate - owner occupied 1,575 3,501 2,305 1,575 2,305 Commercial real estate - non-owner occupied 545 4,573 1,121 545 1,121 Commercial & Industrial 4,303 3,049 824 4,303 824 Residential 1-4 Family - Commercial 567 744 1,231 567 1,231 Residential 1-4 Family - Consumer 7,546 1,000 5,951 7,546 5,951 Residential 1-4 Family - Revolving 2,238 2,326 1,843 2,238 1,843 Auto 4,737 2,703 2,747 4,737 2,747 Consumer 770 517 351 770 351 Other Commercial 6,569 3,545 — 6,569 — LHFI 30-59 days past due $ 29,120 $ 21,958 $ 18,855 $ 29,120 $ 18,855 Construction and land development $ 24 $ 386 $ 45 $ 24 $ 45 Commercial real estate - owner occupied — 1,902 635 — 635 Commercial real estate - non-owner occupied 184 797 48 184 48 Multifamily real estate 146 150 — 146 — Commercial & Industrial 49 576 174 49 174 Residential 1-4 Family - Commercial 676 67 — 676 — Residential 1-4 Family - Consumer 1,804 1,775 1,690 1,804 1,690 Residential 1-4 Family - Revolving 1,429 602 511 1,429 511 Auto 872 339 450 872 450 Consumer 232 164 125 232 125 LHFI 60-89 days past due $ 5,416 $ 6,758 $ 3,678 $ 5,416 $ 3,678 Past Due and still accruing $ 48,399 $ 40,587 $ 30,023 $ 48,399 $ 30,023 Past Due and still accruing / total LHFI 0.31 % 0.27 % 0.21 % 0.31 % 0.21 % Alternative Performance Measures (non-GAAP) Net interest income (FTE) (1) Net interest income (GAAP) $ 153,544 $ 151,941 $ 163,848 $ 611,013 $ 584,261 FTE adjustment 3,712 3,744 4,118 14,910 14,873 Net interest income (FTE) (non-GAAP) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Noninterest income (GAAP) 29,959 27,094 24,500 90,877 118,523 Total revenue (FTE) (non-GAAP) $ 187,215 $ 182,779 $ 192,466 $ 716,800 $ 717,657 Average earning assets $ 18,676,967 $ 18,462,505 $ 18,000,596 $ 18,368,806 $ 17,853,216 Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Tangible Assets (2) Ending assets (GAAP) $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Ending tangible assets (non-GAAP) $ 20,221,803 $ 19,789,748 $ 19,509,166 $ 20,221,803 $ 19,509,166 Tangible Common Equity (2) Ending equity (GAAP) $ 2,556,327 $ 2,388,801 $ 2,372,737 $ 2,556,327 $ 2,372,737 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Less: Perpetual preferred stock 166,357 166,357 166,357 166,357 166,357 Ending tangible common equity (non-GAAP) $ 1,445,576 $ 1,275,956 $ 1,254,408 $ 1,445,576 $ 1,254,408 Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Less: Average goodwill 925,211 925,211 925,211 925,211 930,315 Less: Average amortizable intangibles 20,192 22,342 27,909 22,951 34,627 Less: Average perpetual preferred stock 166,356 166,356 166,356 166,356 166,356 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 ROTCE (2)(3) Net income available to common shareholders (GAAP) $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Net income available to common shareholders before amortization of intangibles (non-GAAP) $ 55,594 $ 52,782 $ 69,438 $ 196,887 $ 231,186 Return on average tangible common equity (ROTCE) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Operating Measures (4) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Strategic cost saving initiatives, net of tax — 6,851 — 9,959 — Plus: Merger-related costs, net of tax 884 1,965 — 2,850 — Plus: Legal reserve, net of tax 2,859 — — 6,809 — Plus: FDIC special assessment, net of tax 2,656 — — 2,656 — Plus: Strategic branch closing and facility consolidation costs, net of tax — — — — 4,351 Less: Gain (loss) on sale of securities, net of tax 2 (21,799 ) (1 ) (32,381 ) (2 ) Less: Gain on sale-leaseback transaction, net of tax 1,484 21,883 — 23,367 — Less: Gain on sale of DHFB, net of tax — — — — 7,984 Adjusted operating earnings (non-GAAP) 61,820 62,749 70,525 233,106 230,879 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Operating Efficiency Ratio (1)(6) Noninterest expense (GAAP) $ 107,929 $ 108,508 $ 99,790 $ 430,371 $ 403,802 Less: Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Less: Strategic cost saving initiatives — 8,672 — 12,607 — Less: Merger-related costs 1,002 1,993 — 2,995 — Less: Legal reserve 3,300 — — 8,300 — Less: FDIC special assessment 3,362 — — 3,362 — Less: Strategic branch closing and facility consolidation costs — — — — 5,508 Adjusted operating noninterest expense (non-GAAP) $ 98,171 $ 95,650 $ 97,409 $ 394,326 $ 387,479 Noninterest income (GAAP) $ 29,959 $ 27,094 $ 24,500 $ 90,877 $ 118,523 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Adjusted operating noninterest income (non-GAAP) $ 28,077 $ 26,988 $ 24,501 $ 102,287 $ 109,444 Net interest income (FTE) (non-GAAP) (1) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Adjusted operating noninterest income (non-GAAP) 28,077 26,988 24,501 102,287 109,444 Total adjusted revenue (FTE) (non-GAAP) (1) $ 185,333 $ 182,673 $ 192,467 $ 728,210 $ 708,578 Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Operating ROA & ROE (4) Adjusted operating earnings (non-GAAP) $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Average assets (GAAP) $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 Return on average assets (ROA) (GAAP) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Adjusted operating return on average assets (ROA) (non-GAAP) 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Return on average equity (ROE) (GAAP) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Adjusted operating return on average equity (ROE) (non-GAAP) 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Operating ROTCE (2)(3)(4) Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) $ 60,507 $ 61,514 $ 69,439 $ 228,175 $ 227,555 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 Adjusted operating return on average tangible common equity (non-GAAP) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Pre-tax pre-provision adjusted operating earnings (7) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Plus: Income tax expense 9,960 11,519 11,777 38,083 45,444 Plus: Strategic cost saving initiatives — 8,672 — 12,607 — Plus: Merger-related costs 1,002 1,993 — 2,995 — Plus: Legal reserve 3,300 — — 8,300 — Plus: FDIC special assessment, net of tax 3,362 — — 3,362 — Plus: Strategic branch closing and facility consolidation costs — — — — 5,508 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 81,356 $ 81,086 $ 88,559 $ 310,193 $ 295,411 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) $ 78,389 $ 78,119 $ 85,592 $ 298,325 $ 283,543 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Pre-tax pre-provision earnings per common share, diluted $ 1.04 $ 1.04 $ 1.15 $ 3.98 $ 3.78 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Mortgage Origination Held for Sale Volume Refinance Volume $ 3,972 $ 2,239 $ 2,312 $ 13,740 $ 55,725 Purchase Volume 27,871 35,815 29,262 128,046 238,310 Total Mortgage loan originations held for sale $ 31,843 $ 38,054 $ 31,574 $ 141,786 $ 294,035 % of originations held for sale that are refinances 12.5 % 5.9 % 7.3 % 9.7 % 19.0 % Wealth Assets under management $ 5,014,208 $ 4,675,523 $ 4,271,728 $ 5,014,208 $ 4,271,728 Other Data End of period full-time employees 1,804 1,788 1,877 1,804 1,877 Number of full-service branches 109 109 114 109 114 Number of automatic transaction machines ("ATMs") 123 123 131 123 131 __________________________________ (1) These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components. (2) These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies. (3) These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and is useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally. (4) These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. (5) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed. (6) The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the organization’s operations. (7) These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closure initiatives and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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) December 31, September 30, December 31, 2023 2023 2022 ASSETS (unaudited) (unaudited) (audited) Cash and cash equivalents: Cash and due from banks $ 196,754 $ 233,526 $ 216,384 Interest-bearing deposits in other banks 167,601 159,718 102,107 Federal funds sold 13,776 5,701 1,457 Total cash and cash equivalents 378,131 398,945 319,948 Securities available for sale, at fair value 2,231,261 2,084,928 2,741,816 Securities held to maturity, at carrying value 837,378 843,269 847,732 Restricted stock, at cost 115,472 104,785 120,213 Loans held for sale 6,710 6,608 3,936 Loans held for investment, net of deferred fees and costs 15,635,043 15,283,620 14,449,142 Less: allowance for loan and lease losses 132,182 125,627 110,768 Total loans held for investment, net 15,502,861 15,157,993 14,338,374 Premises and equipment, net 90,959 94,510 118,243 Goodwill 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 Bank owned life insurance 452,565 449,452 440,656 Other assets 606,466 649,258 578,248 Total assets $ 21,166,197 $ 20,736,236 $ 20,461,138 LIABILITIES Noninterest-bearing demand deposits $ 3,963,181 $ 4,144,949 $ 4,883,239 Interest-bearing deposits 12,854,948 12,641,556 11,048,438 Total deposits 16,818,129 16,786,505 15,931,677 Securities sold under agreements to repurchase 110,833 134,936 142,837 Other short-term borrowings 810,000 495,000 1,176,000 Long-term borrowings 391,025 390,733 389,863 Other liabilities 479,883 540,261 448,024 Total liabilities 18,609,870 18,347,435 18,088,401 Commitments and contingencies STOCKHOLDERS' EQUITY Preferred stock, $10.00 par value 173 173 173 Common stock, $1.33 par value 99,147 99,120 98,873 Additional paid-in capital 1,782,286 1,779,281 1,772,440 Retained earnings 1,018,070 988,133 919,537 Accumulated other comprehensive loss (343,349 ) (477,906 ) (418,286 ) Total stockholders' equity 2,556,327 2,388,801 2,372,737 Total liabilities and stockholders' equity $ 21,166,197 $ 20,736,236 $ 20,461,138 Common shares outstanding 75,023,327 74,997,132 74,712,622 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 (Dollars in thousands, except share data) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Interest and dividend income: Interest and fees on loans $ 230,378 $ 221,380 $ 173,475 $ 846,923 $ 555,614 Interest on deposits in other banks 2,255 1,309 1,383 6,071 2,612 Interest and dividends on securities: Taxable 18,703 16,055 16,196 67,075 59,306 Nontaxable 8,161 8,415 11,014 34,381 42,903 Total interest and dividend income 259,497 247,159 202,068 954,450 660,435 Interest expense: Interest on deposits 95,998 83,590 30,236 296,689 56,201 Interest on short-term borrowings 5,043 6,499 3,588 27,148 5,393 Interest on long-term borrowings 4,912 5,129 4,396 19,600 14,580 Total interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income: Service charges on deposit accounts 8,662 8,557 7,631 33,240 30,052 Other service charges, commissions and fees 1,789 2,632 1,631 7,860 6,765 Interchange fees 2,581 2,314 2,571 9,678 9,110 Fiduciary and asset management fees 4,526 4,549 4,085 17,695 22,414 Mortgage banking income 774 666 379 2,743 7,085 Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Bank owned life insurance income 3,088 2,973 2,649 11,759 11,507 Loan-related interest rate swap fees 3,588 2,695 3,664 10,037 12,174 Other operating income 4,948 30,302 1,891 38,854 19,419 Total noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses: Salaries and benefits 56,686 57,449 58,723 236,682 228,926 Occupancy expenses 6,644 6,053 6,328 25,146 26,013 Furniture and equipment expenses 3,517 3,449 3,978 14,282 14,838 Technology and data processing 7,853 7,923 9,442 32,484 33,372 Professional services 4,346 3,291 4,456 15,483 16,730 Marketing and advertising expense 3,018 2,219 2,228 10,406 9,236 FDIC assessment premiums and other insurance 7,630 4,258 1,896 19,861 10,241 Franchise and other taxes 4,505 4,510 4,500 18,013 18,006 Loan-related expenses 1,060 1,388 1,356 5,619 6,574 Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Other expenses 10,576 15,775 4,502 43,614 29,051 Total noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income $ 56,907 $ 54,017 $ 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Basic earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Diluted earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED) (Dollars in thousands) For the Quarter Ended December 31, 2023 September 30, 2023 Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Assets: Securities: Taxable $ 1,771,312 $ 18,703 4.19% $ 1,799,675 $ 16,055 3.54% Tax-exempt 1,260,163 10,330 3.25% 1,301,983 10,653 3.25% Total securities 3,031,475 29,033 3.80% 3,101,658 26,708 3.42% LHFI, net of deferred fees and costs (3) 15,394,500 231,687 5.97% 15,139,761 222,698 5.84% Other earning assets 250,992 2,489 3.93% 221,086 1,497 2.69% Total earning assets 18,676,967 $ 263,209 5.59% 18,462,505 $ 250,903 5.39% Allowance for loan and lease losses (123,954 ) (121,229 ) Total non-earning assets 2,300,293 2,254,913 Total assets $ 20,853,306 $ 20,596,189 Liabilities and Stockholders' Equity: Interest-bearing deposits: Transaction and money market accounts $ 8,974,437 $ 64,456 2.85% $ 8,697,801 $ 57,378 2.62% Regular savings 923,653 509 0.22% 964,971 499 0.21% Time deposits 3,128,048 31,033 3.94% 2,914,004 25,713 3.50% Total interest-bearing deposits 13,026,138 95,998 2.92% 12,576,776 83,590 2.64% Other borrowings 792,629 9,955 4.98% 905,170 11,628 5.10% Total interest-bearing liabilities $ 13,818,767 $ 105,953 3.04% $ 13,481,946 $ 95,218 2.80% Noninterest-bearing liabilities: Demand deposits 4,087,231 4,218,835 Other liabilities 516,597 448,506 Total liabilities 18,422,595 18,149,287 Stockholders' equity 2,430,711 2,446,902 Total liabilities and stockholders' equity $ 20,853,306 $ 20,596,189 Net interest income (FTE) $ 157,256 $ 155,685 Interest rate spread 2.55% 2.59% Cost of funds 2.25% 2.04% Net interest margin (FTE) 3.34% 3.35% ________________________ (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/20240123265061/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 $53.9 million and basic and diluted earnings per common share of $0.72 for the fourth quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $58.9 million and adjusted diluted operating earnings per common share(1) of $0.78 for the fourth quarter of 2023. Net income available to common shareholders was $190.0 million and basic and diluted earnings per common share were $2.53 for the year ended December 31, 2023. Adjusted operating earnings available to common shareholders(1) were $221.2 million and adjusted diluted operating earnings per common share(1) were $2.95 for the year ended December 31, 2023. In the fourth quarter of 2023, the Company’s adjusted operating earnings(1) included the following main pre-tax adjustments: a $3.4 million Federal Deposit Insurance Corporation (“FDIC“) special assessment; an additional $3.3 million legal reserve related to the previously disclosed settlement with the Consumer Financial Protection Bureau (“CFPB”); $1.0 million in merger related costs associated with our pending merger with American National Bankshares Inc. (“American National”); and $1.9 million gain related to a sale-leaseback transaction executed in the quarter. “Looking back at 2023, it was a successful year for Atlantic Union, as we made good progress against our strategic plan, successfully responded to challenges within the banking industry, and delivered strong operating results,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We undertook important actions that we believe will better position Atlantic Union for the future and preserve positive operating leverage, including a meaningful reduction to our structural expense base, our pending acquisition of American National Bank in Danville, Virginia, and balance sheet restructuring. Additionally, our strong customer relationships, our stable deposit base, and strong asset quality have served us well in this demanding operating environment.” “We believe that our 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.” NET INTEREST INCOME For the fourth quarter of 2023, net interest income was $153.5 million, an increase of $1.6 million from $151.9 million in the third quarter of 2023. Net interest income (FTE)(1) was $157.3 million in the fourth quarter of 2023, an increase of $1.6 million from $155.7 million in the third quarter of 2023. The increases in net interest income and net interest income (FTE)( 1) were driven by higher yields on both available for sale (“AFS”) securities and the loan portfolio, as well as growth in average loans held for investment (“LHFI”). These increases were partially offset by higher deposit costs driven by continued competition for deposits, which drove higher customer deposit rates, changes in the deposit mix, as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances. Our net interest margin decreased 1 basis point from the prior quarter to 3.26% for the quarter ended December 31, 2023, and our net interest margin (FTE)(1) decreased 1 basis point to 3.34% for the quarter ended December 31, 2023. Earning asset yields for the fourth quarter of 2023 increased 20 basis points to 5.59% compared to the third quarter of 2023, primarily due to higher yields on loans and investments, as well as loan growth. Our cost of funds increased by 21 basis points to 2.25% at December 31, 2023 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 $718,000 for the quarter ended December 31, 2023, representing a decrease of $361,000. The impact of net accretion in the third and fourth quarters of 2023 are reflected in the following table (dollars in thousands): Loan Deposit Borrowings Accretion Amortization Amortization Total For the quarter ended September 30, 2023 $ 1,300 $ (6 ) $ (215 ) $ 1,079 For the quarter ended December 31, 2023 937 (4 ) (215 ) 718 ASSET QUALITY Overview At December 31, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.24%, an increase of 5 basis points from the prior quarter and included nonaccrual loans of $36.9 million. The increase in NPAs was primarily due to two new nonaccrual loans within the commercial real estate – non owner occupied and commercial and industrial portfolios. Accruing past due loans as a percentage of total LHFI totaled 31 basis points at December 31, 2023, an increase of 4 basis points from September 30, 2023, and an increase of 10 basis points from December 31, 2022. The increase in past due loan levels from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase in residential 1-4 family – consumer loans that were 30 days past due as of year-end, the majority of which subsequently became current. Net charge-offs were 0.03% of total average LHFI (annualized) for the fourth quarter of 2023, an increase of 2 basis points from September 30, 2023, and an increase of 1 basis point from December 31, 2022. The allowance for credit losses (“ACL”) totaled $148.5 million at December 31, 2023, a $7.5 million increase from the prior quarter. Nonperforming Assets At December 31, 2023, NPAs totaled $36.9 million, compared to $28.8 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Nonaccrual loans $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Foreclosed properties 29 149 50 29 76 Total nonperforming assets $ 36,889 $ 28,775 $ 29,155 $ 29,111 $ 27,114 The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands): December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 Beginning Balance $ 28,626 $ 29,105 $ 29,082 $ 27,038 $ 26,500 Net customer payments (2,198 ) (1,947 ) (5,950 ) (1,755 ) (1,805 ) Additions 10,604 1,651 6,685 4,151 2,935 Charge-offs (172 ) (64 ) (712 ) (39 ) (461 ) Loans returning to accruing status — (119 ) — (313 ) (131 ) Ending Balance $ 36,860 $ 28,626 $ 29,105 $ 29,082 $ 27,038 Past Due Loans At December 31, 2023, past due loans still accruing interest totaled $48.4 million or 0.31% of total LHFI, compared to $40.6 million or 0.27% of total LHFI at September 30, 2023, and $30.0 million or 0.21% of total LHFI at December 31, 2022. The increase in past due loan levels at December 31, 2023 from September 30, 2023 was primarily within the 30-59 days past due category, primarily driven by a seasonal increase related to residential 1-4 family – consumer loans that were 30 days past due at year-end, the majority of which subsequently became current. Of the total past due loans still accruing interest, $13.9 million or 0.09% of total LHFI were loans past due 90 days or more at December 31, 2023, compared to $11.9 million or 0.08% of total LHFI at September 30, 2023, and $7.5 million or 0.05% of total LHFI at December 31, 2022. The increase in loans past due 90 days or more at December 31, 2023 from both September 30, 2023 was primarily due to one credit relationship within the residential 1-4 family – commercial portfolio and two credit relationships within the residential 1-4 family – consumer portfolio. Allowance for Credit Losses At December 31, 2023, the ACL was $148.5 million and included an allowance for loan and lease losses (“ALLL”) of $132.2 million and a reserve for unfunded commitments of $16.3 million. The ACL at December 31, 2023 increased $7.5 million from September 30, 2023 primarily due to loan growth in the fourth quarter of 2023 and an increase in the allowance on two individually assessed loans due to changes in borrower-specific circumstances. The reserve for unfunded commitments at December 31, 2023 increased $967,000 from September 30, 2023, primarily driven by an increase in unfunded commitments. The ACL as a percentage of total LHFI was 0.95% at December 31, 2023, an increase of 3 basis points from September 30, 2023. The ALLL as a percentage of total LHFI was 0.85% at December 31, 2023, compared to 0.82% at September 30, 2023. Net Charge-offs Net charge-offs were $1.2 million or 0.03% of total average LHFI on an annualized basis for the fourth quarter of 2023, compared to $294,000 or 0.01% (annualized) for the third quarter of 2023, and $810,000 or 0.02% (annualized) for the fourth quarter of 2022. The majority of net charge-offs in the fourth quarter of 2023 were related to overdrawn deposit accounts and third-party lending loans within the consumer portfolio. Provision for Credit Losses For the fourth quarter of 2023, the Company recorded a provision for credit losses of $8.7 million, compared to a provision for credit losses of $5.0 million in the prior quarter, and a provision for credit losses of $6.3 million in the fourth quarter of 2022. NONINTEREST INCOME Noninterest income increased $2.9 million to $30.0 million for the fourth quarter of 2023 from $27.1 million in the prior quarter, primarily driven by a $1.9 million gain related to a sale-leaseback transaction associated with one branch location executed during the fourth quarter, a $893,000 increase in loan-related interest rate swap fees in the fourth quarter due to several new swap transactions, and a $679,000 increase in loan syndication revenue in the fourth quarter (included in other operating income). In addition, other service charges, commissions, and fees decreased $843,000 in the fourth quarter, primarily due to a merchant vendor contract signing bonus realized in the prior quarter. Noninterest income in the prior quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities. NONINTEREST EXPENSE Noninterest expense decreased $579,000 to $107.9 million for the fourth quarter of 2023 from $108.5 million in the prior quarter, primarily driven by a decrease in other expenses due to costs associated with our strategic cost savings initiatives in the third quarter and lower merger-related costs associated with our pending merger with American National in the fourth quarter, partially offset by an increase in FDIC assessment premiums and other insurance due to a special assessment fee incurred in the fourth quarter and an increase in legal reserve related to our previously disclosed settlement with the CFPB (included in other expenses). Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.1 million in the fourth quarter and $2.2 million in the third quarter), a FDIC special assessment ($3.4 million recognized in the fourth quarter), the legal reserve related to our previously disclosed settlement with the CFPB ($3.3 million in the fourth quarter), merger-related costs associated with our pending merger with American National ($1.0 million in the fourth quarter and $2.0 million in the third quarter), and expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter), increased $2.5 million to $98.2 million for the fourth quarter from $95.7 million in the prior quarter, primarily due to a $1.2 million increase in other expenses reflecting an increase in OREO and credit related expenses, higher teammate training and travel expenses, and annual debit card inventory purchases, a $1.1 million increase in professional services expense primarily in support of strategic initiatives in the fourth quarter and higher legal fees, a $799,000 increase in marketing and advertising expense primarily due to annual customer disclosure mailings, and a $591,000 increase in occupancy expense driven by the increased lease payments related to the sale-leaseback transaction executed in the third quarter. These increases were partially offset by a $763,000 decrease in salaries and benefits, reflecting the impact of headcount reductions from our strategic cost savings initiatives. INCOME TAXES The effective tax rate for the three months ended December 31, 2023 and 2022 was 14.9% and 14.3%, respectively, and the effective tax rate for the years ended December 31, 2023 and 2022 was 15.9% and 16.2%, respectively. The changes in the effective tax rate for the quarter ended and year ended December 31, 2023, compared to December 31, 2022 are primarily driven by the changes in the proportion of tax-exempt income to pre-tax income. BALANCE SHEET At December 31, 2023, total assets were $21.2 billion, an increase of $430.0 million or approximately 8.2% (annualized) from September 30, 2023, and an increase of $705.1 million or approximately 3.4% from December 31, 2022. Total assets increased from the prior quarter primarily due to a $351.4 million increase in LHFI (net of deferred fees and costs). In addition, investment securities increased $151.1 million primarily due to a decrease in unrealized losses in the AFS securities portfolio due to the impact of declining market interest rates. Total assets increased from the same period in the prior year primarily due to a $1.2 billion increase in LHFI (net of deferred fees and costs), partially offset by a $525.7 million decrease in investment securities due primarily to the sale of AFS securities in the first quarter of 2023. At December 31, 2023, LHFI (net of deferred fees and costs) totaled $15.6 billion, an increase of $351.4 million or 9.1% (annualized) from $15.3 billion at September 30, 2023, and an increase of $1.2 billion or 8.2% from December 31, 2022. Quarterly average LHFI (net of deferred fees and costs) totaled $15.4 billion at December 31, 2023, an increase of $254.7 million or 6.7% (annualized) from the prior quarter, and an increase of $1.3 billion or 9.0% from December 31, 2022. LHFI (net of deferred fees and costs) increased from both the prior quarter and the prior year, primarily due to increases in the commercial and industrial and the multifamily real estate portfolios. At December 31, 2023, total investments were $3.2 billion, an increase of $151.1 million from September 30, 2023 and a decrease of $525.7 million from December 31, 2022. AFS securities totaled $2.2 billion at December 31, 2023, $2.1 billion at September 30, 2023, and $2.7 billion at December 31, 2022. Total net unrealized losses on the AFS securities portfolio were $384.3 million at December 31, 2023, compared to $523.1 million at September 30, 2023 and $462.5 million at December 31, 2022. Held to maturity securities are carried at cost and totaled $837.4 million at December 31, 2023, $843.3 million at September 30, 2023, and $847.7 million at December 31, 2022 and had net unrealized losses of $29.3 million at December 31, 2023, compared to $81.2 million at September 30, 2023 and $45.8 million at December 31, 2022. At December 31, 2023, total deposits were $16.8 billion, a slight increase compared to the prior quarter. Average deposits at December 31, 2023 increased from the prior quarter by $317.8 million or 7.5% (annualized). Total deposits at December 31, 2023 increased $886.5 million or 5.6% from December 31, 2022, and quarterly average deposits at December 31, 2023 increased $501.6 million or 3.0% 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 December 31, 2023, total borrowings were $1.3 billion, an increase of $291.2 million from September 30, 2023, and a decrease of $396.8 million from December 31, 2022. Total borrowings increased from the prior quarter primarily due to increased short-term borrowings used to fund loan growth and decreased from the same period in the prior year due to paydowns of short-term borrowings due to deposit growth. The following table shows the Company’s capital ratios at the quarters ended: December 31, September 30, December 31, 2023 2023 2022 Common equity Tier 1 capital ratio (2) 9.84 % 9.94 % 9.95 % Tier 1 capital ratio (2) 10.76 % 10.88 % 10.93 % Total capital ratio (2) 13.55 % 13.70 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (2) 9.63 % 9.62 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % Tangible common equity to tangible assets (1) 7.15 % 6.45 % 6.43 % _________________________ During the fourth quarter of 2023, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the third quarter of 2023 and the fourth quarter of 2022. During the fourth quarter of 2023, the Company also declared and paid cash dividends of $0.32 per common share, a $0.02 increase or approximately 6.7% from both the third quarter of 2023 and the fourth quarter of 2022. _________________________ (1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see the “Alternative Performance Measures (non-GAAP)” section of the Key Financial Results. (2) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed. ABOUT ATLANTIC UNION BANKSHARES CORPORATION Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2023. 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. FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE CONFERENCE CALL The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 23, 2024, during which the Company’s management will review the Company’s financial results for the fourth quarter and full year 2023 and provide an update on recent activities. The listen-only webcast and the accompanying slides can be accessed at: https://edge.media-server.com/mmc/p/7yyvrwjv. For analysts who wish to participate in the conference call, please register at the following URL: https://register.vevent.com/register/BIfcd55f61c1d2456f9533b66bb36886b9. 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 December 31, 2023, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.” FORWARD-LOOKING STATEMENTS This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base and funding, the impact of future economic conditions, changes in economic conditions, our asset quality, our customer relationships, the expected impact of our cost saving measures initiated in the second quarter of 2023, 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 failure to close our previously announced merger with American National when expected or at all because required regulatory approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National; any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current interest rate environment; the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all; the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events; the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger; the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger; changes in the Company’s or American National’s share price before closing; monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve; the quality or composition of our loan or investment portfolios and changes therein; demand for loan products and financial services in our market areas; our ability to manage our growth or implement our growth strategy; the effectiveness of expense reduction plans; the introduction of new lines of business or new products and services; our ability to recruit and retain key employees; real estate values in our lending area; changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements; an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors; our liquidity and capital positions; concentrations of loans secured by real estate, particularly commercial real estate; the effectiveness of our credit processes and management of our credit risk; our ability to compete in the market for financial services and increased competition from fintech companies; technological risks and developments, and cyber threats, attacks, or events; operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for 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, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and March 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 the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise. ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Results of Operations Interest and dividend income $ 259,497 $ 247,159 $ 202,068 $ 954,450 $ 660,435 Interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income 56,907 54,017 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Interest earned on earning assets (FTE) (1) $ 263,209 $ 250,903 $ 206,186 $ 969,360 $ 675,308 Net interest income (FTE) (1) 157,256 155,685 167,966 625,923 599,134 Total revenue (FTE) (1) 187,215 182,779 192,466 716,800 717,657 Pre-tax pre-provision adjusted operating earnings (7) 81,356 81,086 88,559 310,193 295,411 Key Ratios Earnings per common share, diluted $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Return on average assets (ROA) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Return on average equity (ROE) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Return on average tangible common equity (ROTCE) (2) (3) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) (1) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Yields on earning assets (FTE) (1) 5.59 % 5.39 % 4.54 % 5.28 % 3.78 % Cost of interest-bearing liabilities 3.04 % 2.80 % 1.24 % 2.59 % 0.64 % Cost of deposits 2.23 % 1.97 % 0.72 % 1.78 % 0.34 % Cost of funds 2.25 % 2.04 % 0.84 % 1.87 % 0.42 % Operating Measures (4) Adjusted operating earnings $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Adjusted operating earnings available to common shareholders 58,853 59,782 67,558 221,238 219,011 Adjusted operating earnings per common share, diluted $ 0.78 $ 0.80 $ 0.90 $ 2.95 $ 2.92 Adjusted operating ROA 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Adjusted operating ROE 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Adjusted operating ROTCE (2) (3) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Per Share Data Earnings per common share, basic $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Earnings per common share, diluted 0.72 0.68 0.90 2.53 2.97 Cash dividends paid per common share 0.32 0.30 0.30 1.22 1.16 Market value per share 36.54 28.78 35.14 36.54 35.14 Book value per common share 32.06 29.82 29.68 32.06 29.68 Tangible book value per common share (2) 19.39 17.12 16.87 19.39 16.87 Price to earnings ratio, diluted 12.80 10.65 9.79 14.42 11.83 Price to book value per common share ratio 1.14 0.97 1.18 1.14 1.18 Price to tangible book value per common share ratio (2) 1.88 1.68 2.08 1.88 2.08 Weighted average common shares outstanding, basic 75,016,402 74,999,128 74,712,040 74,961,390 74,949,109 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Common shares outstanding at end of period 75,023,327 74,997,132 74,712,622 75,023,327 74,712,622 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Capital Ratios Common equity Tier 1 capital ratio (5) 9.84 % 9.94 % 9.95 % 9.84 % 9.95 % Tier 1 capital ratio (5) 10.76 % 10.88 % 10.93 % 10.76 % 10.93 % Total capital ratio (5) 13.55 % 13.70 % 13.70 % 13.55 % 13.70 % Leverage ratio (Tier 1 capital to average assets) (5) 9.63 % 9.62 % 9.42 % 9.63 % 9.42 % Common equity to total assets 11.29 % 10.72 % 10.78 % 11.29 % 10.78 % Tangible common equity to tangible assets (2) 7.15 % 6.45 % 6.43 % 7.15 % 6.43 % Financial Condition Assets $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 LHFI (net of deferred fees and costs) 15,635,043 15,283,620 14,449,142 15,635,043 14,449,142 Securities 3,184,111 3,032,982 3,709,761 3,184,111 3,709,761 Earning Assets 19,010,309 18,491,561 18,271,430 19,010,309 18,271,430 Goodwill 925,211 925,211 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 19,183 26,761 Deposits 16,818,129 16,786,505 15,931,677 16,818,129 15,931,677 Borrowings 1,311,858 1,020,669 1,708,700 1,311,858 1,708,700 Stockholders' equity 2,556,327 2,388,801 2,372,737 2,556,327 2,372,737 Tangible common equity (2) 1,445,576 1,275,956 1,254,408 1,445,576 1,254,408 LHFI, net of deferred fees and costs Construction and land development $ 1,107,850 $ 1,132,940 $ 1,101,260 $ 1,107,850 $ 1,101,260 Commercial real estate - owner occupied 1,998,787 1,975,281 1,982,608 1,998,787 1,982,608 Commercial real estate - non-owner occupied 4,172,401 4,148,218 3,996,130 4,172,401 3,996,130 Multifamily real estate 1,061,997 947,153 802,923 1,061,997 802,923 Commercial & Industrial 3,589,347 3,432,319 2,983,349 3,589,347 2,983,349 Residential 1-4 Family - Commercial 522,580 517,034 538,063 522,580 538,063 Residential 1-4 Family - Consumer 1,078,173 1,057,294 940,275 1,078,173 940,275 Residential 1-4 Family - Revolving 619,433 599,282 585,184 619,433 585,184 Auto 486,926 534,361 592,976 486,926 592,976 Consumer 120,641 126,151 152,545 120,641 152,545 Other Commercial 876,908 813,587 773,829 876,908 773,829 Total LHFI $ 15,635,043 $ 15,283,620 $ 14,449,142 $ 15,635,043 $ 14,449,142 Deposits Interest checking accounts $ 4,697,819 $ 5,055,464 $ 4,186,505 $ 4,697,819 $ 4,186,505 Money market accounts 3,850,679 3,472,953 3,922,533 3,850,679 3,922,533 Savings accounts 909,223 950,363 1,130,899 909,223 1,130,899 Customer time deposits of $250,000 and over 674,939 634,950 405,060 674,939 405,060 Other customer time deposits 2,173,904 2,011,106 1,396,011 2,173,904 1,396,011 Time deposits 2,848,843 2,646,056 1,801,071 2,848,843 1,801,071 Total interest-bearing customer deposits 12,306,564 12,124,836 11,041,008 12,306,564 11,041,008 Brokered deposits 548,384 516,720 7,430 548,384 7,430 Total interest-bearing deposits $ 12,854,948 $ 12,641,556 $ 11,048,438 $ 12,854,948 $ 11,048,438 Demand deposits 3,963,181 4,144,949 4,883,239 3,963,181 4,883,239 Total deposits $ 16,818,129 $ 16,786,505 $ 15,931,677 $ 16,818,129 $ 15,931,677 Averages Assets $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 LHFI (net of deferred fees and costs) 15,394,500 15,139,761 14,117,433 14,949,487 13,671,714 Loans held for sale 6,470 10,649 7,809 9,357 14,519 Securities 3,031,475 3,101,658 3,644,196 3,192,891 3,896,337 Earning assets 18,676,967 18,462,505 18,000,596 18,368,806 17,853,216 Deposits 17,113,369 16,795,611 16,611,749 16,653,888 16,451,718 Time deposits 3,128,048 2,914,004 1,764,596 2,711,491 1,735,983 Interest-bearing deposits 13,026,138 12,576,776 11,415,032 12,311,751 11,172,759 Borrowings 792,629 905,170 816,818 971,715 700,271 Interest-bearing liabilities 13,818,767 13,481,946 12,231,850 13,283,466 11,873,030 Stockholders' equity 2,430,711 2,446,902 2,321,208 2,440,525 2,465,049 Tangible common equity (2) 1,318,952 1,332,993 1,201,732 1,326,007 1,333,751 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Asset Quality Allowance for Credit Losses (ACL) Beginning balance, Allowance for loan and lease losses (ALLL) $ 125,627 $ 120,683 $ 108,009 $ 110,768 $ 99,787 Add: Recoveries 853 1,335 1,332 4,390 5,076 Less: Charge-offs 2,038 1,629 2,142 11,995 7,409 Add: Provision for loan losses 7,740 5,238 3,569 29,019 13,314 Ending balance, ALLL $ 132,182 $ 125,627 $ 110,768 $ 132,182 $ 110,768 Beginning balance, Reserve for unfunded commitment (RUC) $ 15,302 $ 15,548 $ 11,000 $ 13,675 $ 8,000 Add: Provision for unfunded commitments 967 (246) 2,675 2,594 5,675 Ending balance, RUC $ 16,269 $ 15,302 $ 13,675 $ 16,269 $ 13,675 Total ACL $ 148,451 $ 140,929 $ 124,443 $ 148,451 $ 124,443 ACL / total LHFI 0.95 % 0.92 % 0.86 % 0.95 % 0.86 % ALLL / total LHFI 0.85 % 0.82 % 0.77 % 0.85 % 0.77 % Net charge-offs / total average LHFI (annualized) 0.03 % 0.01 % 0.02 % 0.05 % 0.02 % Provision for loan losses/ total average LHFI (annualized) 0.20 % 0.14 % 0.10 % 0.19 % 0.10 % Nonperforming Assets Construction and land development $ 348 $ 355 $ 307 $ 348 $ 307 Commercial real estate - owner occupied 3,001 3,882 7,178 3,001 7,178 Commercial real estate - non-owner occupied 12,616 5,999 1,263 12,616 1,263 Commercial & Industrial 4,556 2,256 1,884 4,556 1,884 Residential 1-4 Family - Commercial 1,804 1,833 1,904 1,804 1,904 Residential 1-4 Family - Consumer 11,098 10,368 10,846 11,098 10,846 Residential 1-4 Family - Revolving 3,087 3,572 3,453 3,087 3,453 Auto 350 361 200 350 200 Consumer — — 3 — 3 Nonaccrual loans $ 36,860 $ 28,626 $ 27,038 $ 36,860 $ 27,038 Foreclosed property 29 149 76 29 76 Total nonperforming assets (NPAs) $ 36,889 $ 28,775 $ 27,114 $ 36,889 $ 27,114 Construction and land development $ 25 $ 25 $ 100 $ 25 $ 100 Commercial real estate - owner occupied 2,579 2,395 2,167 2,579 2,167 Commercial real estate - non-owner occupied 2,967 2,835 607 2,967 607 Commercial & Industrial 782 792 459 782 459 Residential 1-4 Family - Commercial 1,383 817 275 1,383 275 Residential 1-4 Family - Consumer 4,470 3,632 1,955 4,470 1,955 Residential 1-4 Family - Revolving 1,095 1,034 1,384 1,095 1,384 Auto 410 229 344 410 344 Consumer 152 97 108 152 108 Other Commercial — 15 91 — 91 LHFI ≥ 90 days and still accruing $ 13,863 $ 11,871 $ 7,490 $ 13,863 $ 7,490 Total NPAs and LHFI ≥ 90 days $ 50,752 $ 40,646 $ 34,604 $ 50,752 $ 34,604 NPAs / total LHFI 0.24 % 0.19 % 0.19 % 0.24 % 0.19 % NPAs / total assets 0.17 % 0.14 % 0.13 % 0.17 % 0.13 % ALLL / nonaccrual loans 358.61 % 438.86 % 409.68 % 358.61 % 409.68 % ALLL/ nonperforming assets 358.32 % 436.58 % 408.53 % 358.32 % 408.53 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Past Due Detail Construction and land development $ 270 $ — $ 1,253 $ 270 $ 1,253 Commercial real estate - owner occupied 1,575 3,501 2,305 1,575 2,305 Commercial real estate - non-owner occupied 545 4,573 1,121 545 1,121 Commercial & Industrial 4,303 3,049 824 4,303 824 Residential 1-4 Family - Commercial 567 744 1,231 567 1,231 Residential 1-4 Family - Consumer 7,546 1,000 5,951 7,546 5,951 Residential 1-4 Family - Revolving 2,238 2,326 1,843 2,238 1,843 Auto 4,737 2,703 2,747 4,737 2,747 Consumer 770 517 351 770 351 Other Commercial 6,569 3,545 — 6,569 — LHFI 30-59 days past due $ 29,120 $ 21,958 $ 18,855 $ 29,120 $ 18,855 Construction and land development $ 24 $ 386 $ 45 $ 24 $ 45 Commercial real estate - owner occupied — 1,902 635 — 635 Commercial real estate - non-owner occupied 184 797 48 184 48 Multifamily real estate 146 150 — 146 — Commercial & Industrial 49 576 174 49 174 Residential 1-4 Family - Commercial 676 67 — 676 — Residential 1-4 Family - Consumer 1,804 1,775 1,690 1,804 1,690 Residential 1-4 Family - Revolving 1,429 602 511 1,429 511 Auto 872 339 450 872 450 Consumer 232 164 125 232 125 LHFI 60-89 days past due $ 5,416 $ 6,758 $ 3,678 $ 5,416 $ 3,678 Past Due and still accruing $ 48,399 $ 40,587 $ 30,023 $ 48,399 $ 30,023 Past Due and still accruing / total LHFI 0.31 % 0.27 % 0.21 % 0.31 % 0.21 % Alternative Performance Measures (non-GAAP) Net interest income (FTE) (1) Net interest income (GAAP) $ 153,544 $ 151,941 $ 163,848 $ 611,013 $ 584,261 FTE adjustment 3,712 3,744 4,118 14,910 14,873 Net interest income (FTE) (non-GAAP) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Noninterest income (GAAP) 29,959 27,094 24,500 90,877 118,523 Total revenue (FTE) (non-GAAP) $ 187,215 $ 182,779 $ 192,466 $ 716,800 $ 717,657 Average earning assets $ 18,676,967 $ 18,462,505 $ 18,000,596 $ 18,368,806 $ 17,853,216 Net interest margin 3.26 % 3.27 % 3.61 % 3.33 % 3.27 % Net interest margin (FTE) 3.34 % 3.35 % 3.70 % 3.41 % 3.36 % Tangible Assets (2) Ending assets (GAAP) $ 21,166,197 $ 20,736,236 $ 20,461,138 $ 21,166,197 $ 20,461,138 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Ending tangible assets (non-GAAP) $ 20,221,803 $ 19,789,748 $ 19,509,166 $ 20,221,803 $ 19,509,166 Tangible Common Equity (2) Ending equity (GAAP) $ 2,556,327 $ 2,388,801 $ 2,372,737 $ 2,556,327 $ 2,372,737 Less: Ending goodwill 925,211 925,211 925,211 925,211 925,211 Less: Ending amortizable intangibles 19,183 21,277 26,761 19,183 26,761 Less: Perpetual preferred stock 166,357 166,357 166,357 166,357 166,357 Ending tangible common equity (non-GAAP) $ 1,445,576 $ 1,275,956 $ 1,254,408 $ 1,445,576 $ 1,254,408 Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Less: Average goodwill 925,211 925,211 925,211 925,211 930,315 Less: Average amortizable intangibles 20,192 22,342 27,909 22,951 34,627 Less: Average perpetual preferred stock 166,356 166,356 166,356 166,356 166,356 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 ROTCE (2)(3) Net income available to common shareholders (GAAP) $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Net income available to common shareholders before amortization of intangibles (non-GAAP) $ 55,594 $ 52,782 $ 69,438 $ 196,887 $ 231,186 Return on average tangible common equity (ROTCE) 16.72 % 15.71 % 22.92 % 14.85 % 17.33 % ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Operating Measures (4) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Strategic cost saving initiatives, net of tax — 6,851 — 9,959 — Plus: Merger-related costs, net of tax 884 1,965 — 2,850 — Plus: Legal reserve, net of tax 2,859 — — 6,809 — Plus: FDIC special assessment, net of tax 2,656 — — 2,656 — Plus: Strategic branch closing and facility consolidation costs, net of tax — — — — 4,351 Less: Gain (loss) on sale of securities, net of tax 2 (21,799 ) (1 ) (32,381 ) (2 ) Less: Gain on sale-leaseback transaction, net of tax 1,484 21,883 — 23,367 — Less: Gain on sale of DHFB, net of tax — — — — 7,984 Adjusted operating earnings (non-GAAP) 61,820 62,749 70,525 233,106 230,879 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Operating Efficiency Ratio (1)(6) Noninterest expense (GAAP) $ 107,929 $ 108,508 $ 99,790 $ 430,371 $ 403,802 Less: Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Less: Strategic cost saving initiatives — 8,672 — 12,607 — Less: Merger-related costs 1,002 1,993 — 2,995 — Less: Legal reserve 3,300 — — 8,300 — Less: FDIC special assessment 3,362 — — 3,362 — Less: Strategic branch closing and facility consolidation costs — — — — 5,508 Adjusted operating noninterest expense (non-GAAP) $ 98,171 $ 95,650 $ 97,409 $ 394,326 $ 387,479 Noninterest income (GAAP) $ 29,959 $ 27,094 $ 24,500 $ 90,877 $ 118,523 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Adjusted operating noninterest income (non-GAAP) $ 28,077 $ 26,988 $ 24,501 $ 102,287 $ 109,444 Net interest income (FTE) (non-GAAP) (1) $ 157,256 $ 155,685 $ 167,966 $ 625,923 $ 599,134 Adjusted operating noninterest income (non-GAAP) 28,077 26,988 24,501 102,287 109,444 Total adjusted revenue (FTE) (non-GAAP) (1) $ 185,333 $ 182,673 $ 192,467 $ 728,210 $ 708,578 Efficiency ratio 58.82 % 60.61 % 52.98 % 61.32 % 57.46 % Efficiency ratio (FTE) (1) 57.65 % 59.37 % 51.85 % 60.04 % 56.27 % Adjusted operating efficiency ratio (FTE) (1)(6) 52.97 % 52.36 % 50.61 % 54.15 % 54.68 % Operating ROA & ROE (4) Adjusted operating earnings (non-GAAP) $ 61,820 $ 62,749 $ 70,525 $ 233,106 $ 230,879 Average assets (GAAP) $ 20,853,306 $ 20,596,189 $ 20,174,152 $ 20,512,402 $ 19,949,388 Return on average assets (ROA) (GAAP) 1.08 % 1.04 % 1.39 % 0.98 % 1.18 % Adjusted operating return on average assets (ROA) (non-GAAP) 1.18 % 1.21 % 1.39 % 1.14 % 1.16 % Average equity (GAAP) $ 2,430,711 $ 2,446,902 $ 2,321,208 $ 2,440,525 $ 2,465,049 Return on average equity (ROE) (GAAP) 9.29 % 8.76 % 12.05 % 8.27 % 9.51 % Adjusted operating return on average equity (ROE) (non-GAAP) 10.09 % 10.17 % 12.05 % 9.55 % 9.37 % Operating ROTCE (2)(3)(4) Adjusted operating earnings available to common shareholders (non-GAAP) $ 58,853 $ 59,782 $ 67,558 $ 221,238 $ 219,011 Plus: Amortization of intangibles, tax effected 1,654 1,732 1,881 6,937 8,544 Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) $ 60,507 $ 61,514 $ 69,439 $ 228,175 $ 227,555 Average tangible common equity (non-GAAP) $ 1,318,952 $ 1,332,993 $ 1,201,732 $ 1,326,007 $ 1,333,751 Adjusted operating return on average tangible common equity (non-GAAP) 18.20 % 18.31 % 22.92 % 17.21 % 17.06 % Pre-tax pre-provision adjusted operating earnings (7) Net income (GAAP) $ 56,907 $ 54,017 $ 70,524 $ 201,818 $ 234,510 Plus: Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Plus: Income tax expense 9,960 11,519 11,777 38,083 45,444 Plus: Strategic cost saving initiatives — 8,672 — 12,607 — Plus: Merger-related costs 1,002 1,993 — 2,995 — Plus: Legal reserve 3,300 — — 8,300 — Plus: FDIC special assessment, net of tax 3,362 — — 3,362 — Plus: Strategic branch closing and facility consolidation costs — — — — 5,508 Less: Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Less: Gain on sale-leaseback transaction 1,879 27,700 — 29,579 — Less: Gain on sale of DHFB — — — — 9,082 Pre-tax pre-provision adjusted operating earnings (non-GAAP) $ 81,356 $ 81,086 $ 88,559 $ 310,193 $ 295,411 Less: Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) $ 78,389 $ 78,119 $ 85,592 $ 298,325 $ 283,543 Weighted average common shares outstanding, diluted 75,016,858 74,999,128 74,713,972 74,962,363 74,953,398 Pre-tax pre-provision earnings per common share, diluted $ 1.04 $ 1.04 $ 1.15 $ 3.98 $ 3.78 ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data) As of & For Three Months Ended As of & For Year Ended 12/31/23 09/30/23 12/31/22 12/31/23 12/31/22 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Mortgage Origination Held for Sale Volume Refinance Volume $ 3,972 $ 2,239 $ 2,312 $ 13,740 $ 55,725 Purchase Volume 27,871 35,815 29,262 128,046 238,310 Total Mortgage loan originations held for sale $ 31,843 $ 38,054 $ 31,574 $ 141,786 $ 294,035 % of originations held for sale that are refinances 12.5 % 5.9 % 7.3 % 9.7 % 19.0 % Wealth Assets under management $ 5,014,208 $ 4,675,523 $ 4,271,728 $ 5,014,208 $ 4,271,728 Other Data End of period full-time employees 1,804 1,788 1,877 1,804 1,877 Number of full-service branches 109 109 114 109 114 Number of automatic transaction machines ("ATMs") 123 123 131 123 131 __________________________________ (1) These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components. (2) These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies. (3) These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and is useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally. (4) These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. (5) All ratios at December 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9‑C. All other periods are presented as filed. (6) The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closing and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the organization’s operations. (7) These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, strategic cost saving initiatives, merger-related costs, a legal reserve associated with our previously disclosed settlement with the CFPB, a FDIC special assessment, strategic branch closure initiatives and related facility consolidation costs, gain (loss) on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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) December 31, September 30, December 31, 2023 2023 2022 ASSETS (unaudited) (unaudited) (audited) Cash and cash equivalents: Cash and due from banks $ 196,754 $ 233,526 $ 216,384 Interest-bearing deposits in other banks 167,601 159,718 102,107 Federal funds sold 13,776 5,701 1,457 Total cash and cash equivalents 378,131 398,945 319,948 Securities available for sale, at fair value 2,231,261 2,084,928 2,741,816 Securities held to maturity, at carrying value 837,378 843,269 847,732 Restricted stock, at cost 115,472 104,785 120,213 Loans held for sale 6,710 6,608 3,936 Loans held for investment, net of deferred fees and costs 15,635,043 15,283,620 14,449,142 Less: allowance for loan and lease losses 132,182 125,627 110,768 Total loans held for investment, net 15,502,861 15,157,993 14,338,374 Premises and equipment, net 90,959 94,510 118,243 Goodwill 925,211 925,211 925,211 Amortizable intangibles, net 19,183 21,277 26,761 Bank owned life insurance 452,565 449,452 440,656 Other assets 606,466 649,258 578,248 Total assets $ 21,166,197 $ 20,736,236 $ 20,461,138 LIABILITIES Noninterest-bearing demand deposits $ 3,963,181 $ 4,144,949 $ 4,883,239 Interest-bearing deposits 12,854,948 12,641,556 11,048,438 Total deposits 16,818,129 16,786,505 15,931,677 Securities sold under agreements to repurchase 110,833 134,936 142,837 Other short-term borrowings 810,000 495,000 1,176,000 Long-term borrowings 391,025 390,733 389,863 Other liabilities 479,883 540,261 448,024 Total liabilities 18,609,870 18,347,435 18,088,401 Commitments and contingencies STOCKHOLDERS' EQUITY Preferred stock, $10.00 par value 173 173 173 Common stock, $1.33 par value 99,147 99,120 98,873 Additional paid-in capital 1,782,286 1,779,281 1,772,440 Retained earnings 1,018,070 988,133 919,537 Accumulated other comprehensive loss (343,349 ) (477,906 ) (418,286 ) Total stockholders' equity 2,556,327 2,388,801 2,372,737 Total liabilities and stockholders' equity $ 21,166,197 $ 20,736,236 $ 20,461,138 Common shares outstanding 75,023,327 74,997,132 74,712,622 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 (Dollars in thousands, except share data) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 (unaudited) (unaudited) (unaudited) (unaudited) (audited) Interest and dividend income: Interest and fees on loans $ 230,378 $ 221,380 $ 173,475 $ 846,923 $ 555,614 Interest on deposits in other banks 2,255 1,309 1,383 6,071 2,612 Interest and dividends on securities: Taxable 18,703 16,055 16,196 67,075 59,306 Nontaxable 8,161 8,415 11,014 34,381 42,903 Total interest and dividend income 259,497 247,159 202,068 954,450 660,435 Interest expense: Interest on deposits 95,998 83,590 30,236 296,689 56,201 Interest on short-term borrowings 5,043 6,499 3,588 27,148 5,393 Interest on long-term borrowings 4,912 5,129 4,396 19,600 14,580 Total interest expense 105,953 95,218 38,220 343,437 76,174 Net interest income 153,544 151,941 163,848 611,013 584,261 Provision for credit losses 8,707 4,991 6,257 31,618 19,028 Net interest income after provision for credit losses 144,837 146,950 157,591 579,395 565,233 Noninterest income: Service charges on deposit accounts 8,662 8,557 7,631 33,240 30,052 Other service charges, commissions and fees 1,789 2,632 1,631 7,860 6,765 Interchange fees 2,581 2,314 2,571 9,678 9,110 Fiduciary and asset management fees 4,526 4,549 4,085 17,695 22,414 Mortgage banking income 774 666 379 2,743 7,085 Gain (loss) on sale of securities 3 (27,594 ) (1 ) (40,989 ) (3 ) Bank owned life insurance income 3,088 2,973 2,649 11,759 11,507 Loan-related interest rate swap fees 3,588 2,695 3,664 10,037 12,174 Other operating income 4,948 30,302 1,891 38,854 19,419 Total noninterest income 29,959 27,094 24,500 90,877 118,523 Noninterest expenses: Salaries and benefits 56,686 57,449 58,723 236,682 228,926 Occupancy expenses 6,644 6,053 6,328 25,146 26,013 Furniture and equipment expenses 3,517 3,449 3,978 14,282 14,838 Technology and data processing 7,853 7,923 9,442 32,484 33,372 Professional services 4,346 3,291 4,456 15,483 16,730 Marketing and advertising expense 3,018 2,219 2,228 10,406 9,236 FDIC assessment premiums and other insurance 7,630 4,258 1,896 19,861 10,241 Franchise and other taxes 4,505 4,510 4,500 18,013 18,006 Loan-related expenses 1,060 1,388 1,356 5,619 6,574 Amortization of intangible assets 2,094 2,193 2,381 8,781 10,815 Other expenses 10,576 15,775 4,502 43,614 29,051 Total noninterest expenses 107,929 108,508 99,790 430,371 403,802 Income before income taxes 66,867 65,536 82,301 239,901 279,954 Income tax expense 9,960 11,519 11,777 38,083 45,444 Net income $ 56,907 $ 54,017 $ 70,524 201,818 234,510 Dividends on preferred stock 2,967 2,967 2,967 11,868 11,868 Net income available to common shareholders $ 53,940 $ 51,050 $ 67,557 $ 189,950 $ 222,642 Basic earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 Diluted earnings per common share $ 0.72 $ 0.68 $ 0.90 $ 2.53 $ 2.97 AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED) (Dollars in thousands) For the Quarter Ended December 31, 2023 September 30, 2023 Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Average Balance Interest Income / Expense (1) Yield / Rate (1)(2) Assets: Securities: Taxable $ 1,771,312 $ 18,703 4.19% $ 1,799,675 $ 16,055 3.54% Tax-exempt 1,260,163 10,330 3.25% 1,301,983 10,653 3.25% Total securities 3,031,475 29,033 3.80% 3,101,658 26,708 3.42% LHFI, net of deferred fees and costs (3) 15,394,500 231,687 5.97% 15,139,761 222,698 5.84% Other earning assets 250,992 2,489 3.93% 221,086 1,497 2.69% Total earning assets 18,676,967 $ 263,209 5.59% 18,462,505 $ 250,903 5.39% Allowance for loan and lease losses (123,954 ) (121,229 ) Total non-earning assets 2,300,293 2,254,913 Total assets $ 20,853,306 $ 20,596,189 Liabilities and Stockholders' Equity: Interest-bearing deposits: Transaction and money market accounts $ 8,974,437 $ 64,456 2.85% $ 8,697,801 $ 57,378 2.62% Regular savings 923,653 509 0.22% 964,971 499 0.21% Time deposits 3,128,048 31,033 3.94% 2,914,004 25,713 3.50% Total interest-bearing deposits 13,026,138 95,998 2.92% 12,576,776 83,590 2.64% Other borrowings 792,629 9,955 4.98% 905,170 11,628 5.10% Total interest-bearing liabilities $ 13,818,767 $ 105,953 3.04% $ 13,481,946 $ 95,218 2.80% Noninterest-bearing liabilities: Demand deposits 4,087,231 4,218,835 Other liabilities 516,597 448,506 Total liabilities 18,422,595 18,149,287 Stockholders' equity 2,430,711 2,446,902 Total liabilities and stockholders' equity $ 20,853,306 $ 20,596,189 Net interest income (FTE) $ 157,256 $ 155,685 Interest rate spread 2.55% 2.59% Cost of funds 2.25% 2.04% Net interest margin (FTE) 3.34% 3.35% ________________________ (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/20240123265061/en/