Atlantic Union Bankshares Reports Fourth Quarter and Full Year Financial Results

Rhea-AI Summary

Atlantic Union Bankshares (NYSE: AUB) reported Q4 2024 net income of $54.8 million with basic and diluted EPS of $0.61 and $0.60, respectively. For the full year 2024, net income was $197.3 million with basic and diluted EPS of $2.29 and $2.24.

Q4 2024 highlights include net interest income of $183.2 million, a slight increase from Q3. The net interest margin decreased 5 basis points to 3.26% due to lower yields on earning assets. The company recorded a provision for credit losses of $17.5 million, up from $2.6 million in Q3, primarily due to a $13.1 million specific reserve on an impaired commercial loan.

Total assets were $24.6 billion at year-end, with loans held for investment increasing by $133.3 million to $18.5 billion. Total deposits grew to $20.4 billion, up $92.3 million from Q3. The company maintained strong capital ratios with a Common equity Tier 1 ratio of 9.96%.

Positive

• Net interest income increased to $183.2 million in Q4 2024
• Total deposits grew by $92.3 million to $20.4 billion
• Loans held for investment increased by $133.3 million to $18.5 billion
• Quarterly dividend increased by 6.3% to $0.34 per common share

Negative

• Net interest margin decreased 5 basis points to 3.26%
• Provision for credit losses increased to $17.5 million from $2.6 million in Q3
• Nonperforming assets increased to 0.32% of total loans, up 12 basis points
• Total assets decreased by $218.4 million from Q3 2024

Insights

Financial Analyst

Atlantic Union Bankshares delivered a mixed fourth quarter 2024 performance, with notable strengths and challenges worth examining. The bank reported $54.8 million in net income, while maintaining an impressive $24.6 billion in total assets.

Key performance indicators reveal several important trends:

• Net interest income remained relatively stable at $183.2 million, with net interest margin at 3.26%, showing resilience despite rate pressures
• Loan portfolio grew by 2.9% annualized to $18.5 billion, demonstrating continued organic growth momentum
• Deposits increased by 1.8% annualized to $20.4 billion, reflecting solid funding stability

The bank's asset quality metrics warrant attention, with nonperforming assets increasing to 0.32% of total loans, primarily due to a $27.7 million commercial loan becoming nonaccrual. This resulted in a $13.1 million specific reserve, highlighting potential challenges in the commercial portfolio.

Strategic positioning shows significant progress through two key acquisitions: The completed American National merger and the pending Sandy Spring acquisition. These moves are transforming Atlantic Union from a Virginia-focused institution into the largest regional bank headquartered in the lower Mid-Atlantic, significantly expanding its market presence and competitive positioning.

The interest rate environment's impact is evident in the bank's financials, with the 100 basis point Fed rate cut since September 2024 affecting both asset yields and funding costs. While earning asset yields decreased 20 basis points to 5.74%, the cost of funds improved by 15 basis points to 2.41%, showing effective margin management in a challenging rate environment.

RICHMOND, Va.--(BUSINESS WIRE)-- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $54.8 million and basic and diluted earnings per common share of $0.61 and $0.60, respectively, for the fourth quarter of 2024 and adjusted operating earnings available to common shareholders⁽¹⁾ of $61.4 million and adjusted diluted operating earnings per common share⁽¹⁾ of $0.67 for the fourth quarter of 2024.

Net income available to common shareholders was $197.3 million and basic and diluted earnings per common share were $2.29 and $2.24, respectively, for the year ended December 31, 2024. Adjusted operating earnings available to common shareholders⁽¹⁾ were $241.3 million and adjusted diluted operating earnings per common share⁽¹⁾ were $2.74 for the year ended December 31, 2024.

“2024 was a good year, and a consequential year, for Atlantic Union,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We were excited to close our acquisition of American National Bankshares Inc. on April 1st and we announced the proposed acquisition of Sandy Spring Bancorp, Inc. on October 21st. We were pleased to have received merger approvals from the Federal Reserve Bank of Richmond seven weeks after filing the merger applications. Atlantic Union is a story of transformation from a Virginia community bank to the largest regional bank headquartered in Virginia, with operations in North Carolina and Maryland, to what will be the largest regional bank headquartered in the lower Mid-Atlantic upon closing our proposed acquisition of Sandy Spring.

“While our results for the fourth quarter were noisy with merger-related costs and a larger than typical specific reserve on an impaired loan, we delivered solid adjusted operating financial results for the year and the fourth quarter. We continue to be on a steady loan and deposit growth path.

“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 2024, net interest income was $183.2 million, an increase of $316,000 from $182.9 million in the third quarter of 2024. Net interest income - fully taxable equivalent (“FTE”)⁽¹⁾ was $187.0 million in the fourth quarter of 2024, an increase of $208,000 from $186.8 million in the third quarter of 2024. The increases from the prior quarter in both net interest income and net interest income (FTE)⁽¹⁾ reflect the impacts of a decrease in interest expense due to lower short-term borrowing costs resulting from a $312.2 million decrease in average borrowings, lower deposit costs, as the Federal Reserve began cutting interest rates, resulting in a 100 basis points decrease in the Federal Funds rate since September 2024, as well as an increase in interest income from other earning assets as a result of a $402.0 million increase in average cash and other earning asset balances, partially offset by a decrease in interest income on loans held for investment (“LHFI”), due to lower loan yields, primarily driven by the impact of the interest rate cuts on our variable rate loans. For the fourth quarter of 2024, both the Company’s net interest margin and the net interest margin (FTE)⁽¹⁾ decreased 5 basis points compared to the prior quarter to 3.26% and 3.33%, respectively, due to lower yields on earning assets primarily driven by the decreases in variable rate loan yields, partially offset by a reduction in the cost of funds and an increase in yields on cash and other earning assets. Earning asset yields for the fourth quarter of 2024 decreased 20 basis points to 5.74% compared to the third quarter of 2024, primarily due to lower yields on loans. Cost of funds decreased from the prior quarter by 15 basis points to 2.41% for the fourth quarter of 2024, reflecting lower borrowing and deposit costs.

The Company’s net interest margin (FTE) ⁽¹⁾ includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $12.6 million for the quarter ended December 31, 2024. The impact of accretion and amortization for the periods presented are reflected in the following table (dollars in thousands):

		Loan				Deposit				Borrowings
		Accretion				Amortization				Amortization				Total
For the quarter ended September 30, 2024		$	13,926			$	(913	)		$	(288	)		$	12,725
For the quarter ended December 31, 2024			13,668				(775	)			(288	)			12,605

ASSET QUALITY

Overview

At December 31, 2024, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.32%, an increase of 12 basis points from the prior quarter and included nonaccrual loans of $58.0 million. The increase in NPAs was primarily due to one new nonaccrual loan within the commercial and industrial portfolio of $27.7 million, for which the Company recorded a specific reserve of $13.1 million. Accruing past due loans as a percentage of total LHFI totaled 31 basis points at December 31, 2024, an increase of 1 basis point from September 30, 2024, and consistent with December 31, 2023. Net charge-offs were 0.03% of total average LHFI (annualized) for the fourth quarter of 2024, an increase of 2 basis points from September 30, 2024, and consistent with December 31, 2023. The allowance for credit losses (“ACL”) totaled $193.7 million at December 31, 2024, a $16.1 million increase from the prior quarter, primarily impacted by the aforementioned commercial and industrial loan with the $13.1 million specific reserve added in the current quarter.

Nonperforming Assets

At December 31, 2024, NPAs totaled $58.4 million, compared to $37.3 million in the prior quarter. The following table shows a summary of NPA balances at the quarters ended (dollars in thousands):

		December 31,				September 30,				June 30,				March 31,				December 31,
		2024				2024				2024				2024				2023
Nonaccrual loans		$	57,969			$	36,847			$	35,913			$	36,389			$	36,860
Foreclosed properties			404				404				230				29				29
Total nonperforming assets		$	58,373			$	37,251			$	36,143			$	36,418			$	36,889

The following table shows the activity in nonaccrual loans for the quarters ended (dollars in thousands):

		December 31,				September 30,				June 30,				March 31,				December 31,
		2024				2024				2024				2024				2023
Beginning Balance		$	36,847			$	35,913			$	36,389			$	36,860			$	28,626
Net customer payments			(11,491	)			(2,219	)			(6,293	)			(1,583	)			(2,198	)
Additions			34,446				5,347				6,831				5,047				10,604
Charge-offs			(1,231	)			(542	)			(759	)			(3,935	)			(172	)
Loans returning to accruing status			(602	)			(1,478	)			(54	)			—				—
Transfers to foreclosed property			—				(174	)			(201	)			—				—
Ending Balance		$	57,969			$	36,847			$	35,913			$	36,389			$	36,860

Past Due Loans

At December 31, 2024, past due loans still accruing interest totaled $57.7 million or 0.31% of total LHFI, compared to $55.2 million or 0.30% of total LHFI at September 30, 2024, and $48.4 million or 0.31% of total LHFI at December 31, 2023. The increase in past due loan levels at December 31, 2024 from September 30, 2024 was primarily within the commercial and industrial and residential 1-4 family – consumer portfolios. Of the total past due loans still accruing interest, $14.1 million or 0.08% of total LHFI were past due 90 days or more at December 31, 2024, compared to $15.2 million or 0.08% of total LHFI at September 30, 2024, and $13.9 million or 0.09% of total LHFI at December 31, 2023.

Allowance for Credit Losses

At December 31, 2024, the ACL was $193.7 million and included an allowance for loan and lease losses (“ALLL”) of $178.6 million and a reserve for unfunded commitments (“RUC”) of $15.0 million. The ACL at December 31, 2024 increased $16.1 million from September 30, 2024, primarily due to the $13.1 million new specific reserve on the impaired loan in the commercial and industrial portfolio discussed above, the impact of continued uncertainty in the economic outlook on certain portfolios and organic loan growth. The RUC at December 31, 2024 decreased $1.9 million from September 30, 2024, primarily due to a decrease in unfunded commitments.

The ACL as a percentage of total LHFI was 1.05% at December 31, 2024, compared to 0.97% at September 30, 2024. The ALLL as a percentage of total LHFI was 0.97% at December 31, 2024, compared to 0.88% at September 30, 2024.

Net Charge-offs

Net charge-offs were $1.4 million or 0.03% of total average LHFI on an annualized basis for the fourth quarter of 2024, compared to $0.7 million or 0.01% (annualized) for the third quarter of 2024, and $1.2 million or 0.03% (annualized) for the fourth quarter of 2023.

Provision for Credit Losses

For the fourth quarter of 2024, the Company recorded a provision for credit losses of $17.5 million, compared to $2.6 million in the prior quarter, and $8.7 million in the fourth quarter of 2023. The increase in the provision for credit losses in the fourth quarter of 2024 is primarily driven by the $13.1 million specific reserve on the impaired loan in the commercial and industrial portfolio.

NONINTEREST INCOME

Noninterest income increased $941,000 to $35.2 million for the fourth quarter of 2024 from $34.3 million in the prior quarter, primarily driven by a $3.6 million increase in loan-related interest rate swap fees due to an increase in transaction volumes, partially offset by a $1.5 million decrease in bank owned life insurance income primarily driven by death benefits received in the prior quarter, and a $770,000 decrease in other operating income primarily due to a decrease in equity method investment income.

NONINTEREST EXPENSE

Noninterest expense increased $7.1 million to $129.7 million for the fourth quarter of 2024 from $122.6 million in the prior quarter, primarily driven by a $5.6 million increase in pre-tax merger-related costs associated with the pending Sandy Spring Bancorp, Inc. (“Sandy Spring”) acquisition.

Adjusted operating noninterest expense,⁽¹⁾ which excludes merger-related costs ($7.0 million in the fourth quarter and $1.4 million in the third quarter) and amortization of intangible assets ($5.6 million in the fourth quarter and $5.8 million in the third quarter), increased $1.6 million to $117.0 million for the fourth quarter from $115.4 million in the prior quarter, primarily driven by a $1.8 million increase in salaries and benefits expense primarily due to increases in variable incentive compensation expense and self-insured related group insurance costs, as well as a $1.4 million increase in professional services fees related to projects that occurred during the fourth quarter. These increases were partially offset by a $1.7 million decrease in franchise and other taxes.

INCOME TAXES

The Company’s effective tax rate for the three months ended December 31, 2024 and 2023 was 19.0% and 14.9%, respectively, and the effective tax rate for the years ended December 31, 2024 and 2023 was 19.5% and 15.9%. respectively. The increase in effective tax rate for the quarter ended December 31, 2024 was primarily driven by the proportionality of tax exempt income to pre-tax income. The increase in the effective tax rate for the year ended December 31, 2024 was primarily due to a valuation allowance for certain state net operating loss carryforwards established during the second quarter of 2024, which resulted in a 170 basis points increase in the year to date effective tax rate, and the proportionality of tax exempt income to pre-tax income.

BALANCE SHEET

At December 31, 2024, total assets were $24.6 billion, a decrease of $218.4 million or approximately 3.5% (annualized) from September 30, 2024 and an increase of $3.4 billion or approximately 16.2% from December 31, 2023. Total assets decreased from the prior quarter primarily due to a decrease in the investment securities portfolio due to principal paydowns and a decrease in the market value of the available for sale (“AFS”) securities portfolio, as well as a decrease in cash and cash equivalents due to greater funding needs combined with increases in individual deposits in the prior quarter. The increase in total assets from the prior year was primarily due to the American National Bankshares Inc. (“American National”) acquisition, as well as LHFI growth.

The Company’s recorded preliminary goodwill related to the American National acquisition totaling $288.8 million at December 31, 2024, a $1.3 million increase from preliminary goodwill of $287.5 million at September 30, 2024. This increase was due to an adjustment to the purchase price allocation for certain provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period adjustment recorded in the fourth quarter of 2024 related to franchise tax accruals.

At December 31, 2024, LHFI totaled $18.5 billion, an increase of $133.3 million or 2.9% (annualized) from September 30, 2024, and an increase of $2.8 billion or 18.1% from December 31, 2023. Quarterly average LHFI totaled $18.4 billion at December 31, 2024, an increase of $47.5 million or 1.0% (annualized) from the prior quarter, and an increase of $3.0 billion or 19.3% from December 31, 2023. LHFI increased from the prior quarter primarily due to increases in the construction and land development loan portfolio, as well as increases in the commercial and industrial loan portfolios, partially offset by decreases in the multifamily real estate loan portfolio. The increase from the prior year was primarily due to the American National acquisition.

At December 31, 2024, total investments were $3.3 billion, a decrease of $184.2 million or 20.7% (annualized) from September 30, 2024, and an increase of $164.9 million or 5.2% from December 31, 2023. The decrease compared to the prior quarter was primarily due to paydown activity and a decrease in the market value of the AFS securities portfolio, and the increase compared to the prior year was primarily due to the American National acquisition. AFS securities totaled $2.4 billion at December 31, 2024, $2.6 billion at September 30, 2024, and $2.2 billion at December 31, 2023. Total net unrealized losses on the AFS securities portfolio were $402.6 million at December 31, 2024, compared to $334.5 million at September 30, 2024, and $384.3 million at December 31, 2023. Held to maturity securities are carried at cost and totaled $803.9 million at December 31, 2024, $807.1 million at September 30, 2024, and $837.4 million at December 31, 2023 and had net unrealized losses of $44.5 million at December 31, 2024, $30.3 million at September 30, 2024, and $29.3 million at December 31, 2023.

At December 31, 2024, total deposits were $20.4 billion, an increase of $92.3 million or 1.8% (annualized) from the prior quarter. Average deposits at December 31, 2024 increased $583.4 million or 11.5% (annualized) from the prior quarter. Both total deposits and average deposits at December 31, 2024 increased $3.6 billion or 21.3% from December 31, 2023. The increase in deposit balances from the prior quarter was primarily due to an increase of $438.6 million in interest bearing customer deposits, partially offset by decreases in demand deposits and brokered deposits of $145.9 million and $200.4 million, respectively. The increase from the prior year was primarily related to the addition of the American National acquired deposits, as well as an increase of $669.5 million in brokered deposits.

At December 31, 2024, total borrowings were $534.6 million, a decrease of $317.6 million from September 30, 2024 and a decrease of $777.3 million from December 31, 2023. At December 31, 2024 average borrowings were $543.1 million, a decrease of $312.2 million from September 30, 2024, and a decrease of $249.6 million from December 31, 2023. The decreases in average borrowings from the prior quarter and the prior year were primarily due to repayment of short-term FHLB advances using funds from customer deposit growth.

The following table shows the Company’s capital ratios at the quarters ended:

		December 31,		September 30,		December 31,
		2024		2024		2023
Common equity Tier 1 capital ratio (2)		9.96	%	9.77	%	9.84	%
Tier 1 capital ratio (2)		10.76	%	10.57	%	10.76	%
Total capital ratio (2)		13.61	%	13.33	%	13.55	%
Leverage ratio (Tier 1 capital to average assets) (2)		9.29	%	9.27	%	9.63	%
Common equity to total assets		12.11	%	12.16	%	11.29	%
Tangible common equity to tangible assets (1)		7.21	%	7.29	%	7.15	%

________________

(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, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

During the fourth quarter of 2024, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the third quarter of 2024 and the fourth quarter of 2023. During the fourth quarter of 2024, the Company also declared and paid cash dividends of $0.34 per common share, a $0.02 increase or approximately 6.3% from both the third quarter of 2024 and fourth quarter of 2023.

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 had 129 branches located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2024. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

FOURTH QUARTER AND FULL YEAR 2024 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Thursday, January 23, 2025, during which management will review our financial results for the fourth quarter and full year 2024 and provide an update on our recent activities.

The listen-only webcast and the accompanying slides can be accessed at:
https://edge.media-server.com/mmc/p/oji8po5i.

For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI0fd9e3319b0d4273b9a974581412c683. 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, 2024, we have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which we use to prepare our financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. We use the non-GAAP financial measures discussed herein in our analysis of our performance. 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 our 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 the pending merger with Sandy Spring and expectations with regard to the benefits of the pending merger, statements regarding our future ability to recognize the benefits of certain tax assets, our business, financial and operating results, including our deposit base and funding, the impact of future economic conditions, changes in economic conditions, management’s beliefs regarding our liquidity, capital resources, asset quality, CRE loan portfolio, our customer relationships, and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “seek to,” “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 and changes in our capital position;
• 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 proposed merger with Sandy Spring when expected or at all because remaining required regulatory approvals, Company shareholder or Sandy Spring stockholder or other approvals or 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 the Company or Sandy Spring to terminate the merger agreement;
• risks related to Sandy Spring’s business to which we will be subject after closing, including its CRE portfolio;
• any change in the purchase accounting assumptions regarding the Sandy Spring assets to be acquired and liabilities to be assumed used to determine the fair value and credit marks;
• the proposed merger with Sandy Spring may be more expensive or take 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 due to the proposed merger with Sandy Spring;
• the dilutive effect of shares of the Company’s common stock to be issued in connection with the proposed merger with Sandy Spring or pursuant to the previously disclosed forward sale agreements with Morgan Stanley & Co. LLC;
• changes in the Company’s or Sandy Spring’s share price before closing;
• the impact of purchase accounting with respect to the American National acquisition, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine the fair value and credit marks;
• the possibility that the anticipated benefits of the proposed merger with Sandy Spring or the American National acquisition, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy, competitive factors in the areas where we do business, or as a result of other unexpected factors or events;
• potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger with Sandy Spring or the American National acquisition;
• 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 identify, recruit, and retain key employees;
• real estate values in our lending area;
• changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements;
• an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by changing economic conditions, credit concentrations, inflation, changing interest rates, or other factors;
• concentrations of loans secured by real estate, particularly CRE;
• 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 consideration;
• the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events (such as pandemics), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to us, on the value of collateral securing loans, on the demand for our loans or our other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on our liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of our business operations and on financial markets and economic growth;
• performance by our counterparties or vendors;
• deposit flows;
• the availability of financing and the terms thereof;
• the level of prepayments on loans and mortgage-backed securities;
• the effects of legislative or regulatory changes and requirements, including changes in federal, state or local tax laws;
• 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;
• any event or development that would cause us to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
• other factors, many of which are beyond our control.

Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10‑K for the year ended December 31, 2023, Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, 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 the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise, except as required by law.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES KEY FINANCIAL RESULTS (Dollars in thousands, except share data)
	As of & For Three Months Ended												As of & For Year Ended
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Results of Operations
Interest and dividend income	$	319,204			$	324,528			$	259,497			$	1,227,535			$	954,450
Interest expense		135,956				141,596				105,953				528,996				343,437
Net interest income		183,248				182,932				153,544				698,539				611,013
Provision for credit losses		17,496				2,603				8,707				50,089				31,618
Net interest income after provision for credit losses		165,752				180,329				144,837				648,450				579,395
Noninterest income		35,227				34,286				29,959				118,878				90,877
Noninterest expenses		129,675				122,582				107,929				507,534				430,371
Income before income taxes		71,304				92,033				66,867				259,794				239,901
Income tax expense		13,519				15,618				9,960				50,663				38,083
Net income		57,785				76,415				56,907				209,131				201,818
Dividends on preferred stock		2,967				2,967				2,967				11,868				11,868
Net income available to common shareholders	$	54,818			$	73,448			$	53,940			$	197,263			$	189,950
Interest earned on earning assets (FTE) (1)	$	322,995			$	328,427			$	263,209			$	1,242,761			$	969,360
Net interest income (FTE) (1)		187,039				186,831				157,256				713,765				625,923
Total revenue (FTE) (1)		222,266				221,117				187,215				832,643				716,800
Pre-tax pre-provision adjusted operating earnings (7)		95,796				95,985				81,356				357,234				310,193
Key Ratios
Earnings per common share, diluted	$	0.60			$	0.82			$	0.72			$	2.24			$	2.53
Return on average assets (ROA)		0.92		%		1.24		%		1.08		%		0.88		%		0.98		%
Return on average equity (ROE)		7.23		%		9.77		%		9.29		%		7.04		%		8.27		%
Return on average tangible common equity (ROTCE) (2) (3)		13.77		%		18.89		%		16.72		%		13.35		%		14.85		%
Efficiency ratio		59.35		%		56.43		%		58.82		%		62.09		%		61.32		%
Efficiency ratio (FTE) (1)		58.34		%		55.44		%		57.65		%		60.95		%		60.04		%
Net interest margin		3.26		%		3.31		%		3.26		%		3.27		%		3.33		%
Net interest margin (FTE) (1)		3.33		%		3.38		%		3.34		%		3.34		%		3.41		%
Yields on earning assets (FTE) (1)		5.74		%		5.94		%		5.59		%		5.82		%		5.28		%
Cost of interest-bearing liabilities		3.20		%		3.40		%		3.04		%		3.29		%		2.59		%
Cost of deposits		2.48		%		2.57		%		2.23		%		2.48		%		1.78		%
Cost of funds		2.41		%		2.56		%		2.25		%		2.48		%		1.87		%
Operating Measures (4)
Adjusted operating earnings	$	64,364			$	77,497			$	61,820			$	253,174			$	233,106
Adjusted operating earnings available to common shareholders		61,397				74,530				58,853				241,306				221,238
Adjusted operating earnings per common share, diluted	$	0.67			$	0.83			$	0.78			$	2.74			$	2.95
Adjusted operating ROA		1.03		%		1.25		%		1.18		%		1.06		%		1.14		%
Adjusted operating ROE		8.06		%		9.91		%		10.09		%		8.52		%		9.55		%
Adjusted operating ROTCE (2) (3)		15.30		%		19.15		%		18.20		%		16.12		%		17.21		%
Adjusted operating efficiency ratio (FTE) (1)(6)		52.67		%		52.20		%		52.97		%		53.31		%		54.15		%
Per Share Data
Earnings per common share, basic	$	0.61			$	0.82			$	0.72			$	2.29			$	2.53
Earnings per common share, diluted		0.60				0.82				0.72				2.24				2.53
Cash dividends paid per common share		0.34				0.32				0.32				1.30				1.22
Market value per share		37.88				37.67				36.54				37.88				36.54
Book value per common share(8)		33.40				33.85				32.06				33.40				32.06
Tangible book value per common share (2)(8)		18.83				19.23				19.39				18.83				19.39
Price to earnings ratio, diluted		15.90				11.57				12.80				16.88				14.42
Price to book value per common share ratio (8)		1.13				1.11				1.14				1.13				1.14
Price to tangible book value per common share ratio (2)(8)		2.01				1.96				1.88				2.01				1.88
Unvested shares of restricted stock awards(8)		658,001				680,936				476,630				658,001				476,630
Weighted average common shares outstanding, basic		89,774,079				89,780,531				75,016,402				86,149,978				74,961,390
Weighted average common shares outstanding, diluted		91,533,273				89,780,531				75,016,858				87,909,237				74,962,363
Common shares outstanding at end of period		89,770,231				89,774,392				75,023,327				89,770,231				75,023,327

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
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Capital Ratios
Common equity Tier 1 capital ratio (5)		9.96		%		9.77		%		9.84		%		9.96		%		9.84		%
Tier 1 capital ratio (5)		10.76		%		10.57		%		10.76		%		10.76		%		10.76		%
Total capital ratio (5)		13.61		%		13.33		%		13.55		%		13.61		%		13.55		%
Leverage ratio (Tier 1 capital to average assets) (5)		9.29		%		9.27		%		9.63		%		9.29		%		9.63		%
Common equity to total assets		12.11		%		12.16		%		11.29		%		12.11		%		11.29		%
Tangible common equity to tangible assets (2)		7.21		%		7.29		%		7.15		%		7.21		%		7.15		%
Financial Condition
Assets	$	24,585,323			$	24,803,723			$	21,166,197			$	24,585,323			$	21,166,197
LHFI (net of deferred fees and costs)		18,470,621				18,337,299				15,635,043				18,470,621				15,635,043
Securities		3,348,971				3,533,143				3,184,111				3,348,971				3,184,111
Earning Assets		21,989,690				22,180,501				19,010,309				21,989,690				19,010,309
Goodwill		1,214,053				1,212,710				925,211				1,214,053				925,211
Amortizable intangibles, net		84,563				90,176				19,183				84,563				19,183
Deposits		20,397,619				20,305,287				16,818,129				20,397,619				16,818,129
Borrowings		534,578				852,164				1,311,858				534,578				1,311,858
Stockholders' equity		3,142,879				3,182,416				2,556,327				3,142,879				2,556,327
Tangible common equity (2)		1,677,906				1,713,173				1,445,576				1,677,906				1,445,576
Loans held for investment, net of deferred fees and costs
Construction and land development	$	1,731,108			$	1,588,531			$	1,107,850			$	1,731,108			$	1,107,850
Commercial real estate - owner occupied		2,370,119				2,401,807				1,998,787				2,370,119				1,998,787
Commercial real estate - non-owner occupied		4,935,590				4,885,785				4,172,401				4,935,590				4,172,401
Multifamily real estate		1,240,209				1,357,730				1,061,997				1,240,209				1,061,997
Commercial & Industrial		3,864,695				3,799,872				3,589,347				3,864,695				3,589,347
Residential 1-4 Family - Commercial		719,425				729,315				522,580				719,425				522,580
Residential 1-4 Family - Consumer		1,293,817				1,281,914				1,078,173				1,293,817				1,078,173
Residential 1-4 Family - Revolving		756,944				738,665				619,433				756,944				619,433
Auto		316,368				354,570				486,926				316,368				486,926
Consumer		104,882				109,522				120,641				104,882				120,641
Other Commercial		1,137,464				1,089,588				876,908				1,137,464				876,908
Total LHFI	$	18,470,621			$	18,337,299			$	15,635,043			$	18,470,621			$	15,635,043
Deposits
Interest checking accounts	$	5,494,550			$	5,208,794			$	4,697,819			$	5,494,550			$	4,697,819
Money market accounts		4,291,097				4,250,763				3,850,679				4,291,097				3,850,679
Savings accounts		1,025,896				1,037,229				909,223				1,025,896				909,223
Customer time deposits of $250,000 and over		1,202,657				1,160,262				674,939				1,202,657				674,939
Other customer time deposits		2,888,476				2,807,077				2,173,904				2,888,476				2,173,904
Time deposits		4,091,133				3,967,339				2,848,843				4,091,133				2,848,843
Total interest-bearing customer deposits		14,902,676				14,464,125				12,306,564				14,902,676				12,306,564
Brokered deposits		1,217,895				1,418,253				548,384				1,217,895				548,384
Total interest-bearing deposits	$	16,120,571			$	15,882,378			$	12,854,948			$	16,120,571			$	12,854,948
Demand deposits		4,277,048				4,422,909				3,963,181				4,277,048				3,963,181
Total deposits	$	20,397,619			$	20,305,287			$	16,818,129			$	20,397,619			$	16,818,129
Averages
Assets	$	24,971,836			$	24,613,518			$	20,853,306			$	23,862,190			$	20,512,402
LHFI (net of deferred fees and costs)		18,367,657				18,320,122				15,394,500				17,647,589				14,949,487
Loans held for sale		12,606				13,485				6,470				11,912				9,357
Securities		3,442,340				3,501,879				3,031,475				3,394,095				3,192,891
Earning assets		22,373,970				21,983,946				18,676,967				21,347,677				18,368,806
Deposits		20,757,521				20,174,158				17,113,368				19,533,259				16,653,888
Time deposits		4,862,446				4,758,039				3,128,048				4,333,362				2,711,491
Interest-bearing deposits		16,343,745				15,736,797				13,026,138				15,212,033				12,311,751
Borrowings		543,061				855,306				792,629				862,716				971,715
Interest-bearing liabilities		16,886,806				16,592,103				13,818,767				16,074,749				13,283,466
Stockholders' equity		3,177,934				3,112,509				2,430,711				2,971,111				2,440,525
Tangible common equity (2)		1,711,580				1,643,562				1,318,952				1,591,349				1,326,007

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
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Asset Quality
Allowance for Credit Losses (ACL)
Beginning balance, Allowance for loan and lease losses (ALLL)	$	160,685			$	158,131			$	125,627			$	132,182			$	110,768
Add: Recoveries		2,816				2,053				853				7,194				4,390
Less: Charge-offs		4,255				2,719				2,038				15,956				11,995
Add: Initial Allowance - Purchased Credit Deteriorated (PCD) American National loans		—				—				—				3,896				—
Add: Initial Provision - Non-PCD American National loans		—				—				—				13,229				—
Add: Provision for loan losses		19,398				3,220				7,740				38,099				29,019
Ending balance, ALLL	$	178,644			$	160,685			$	132,182			$	178,644			$	132,182
Beginning balance, Reserve for unfunded commitment (RUC)	$	16,943			$	17,557			$	15,302			$	16,269			$	13,675
Add: Initial Provision - RUC American National loans		—				—				—				1,353				—
Add: Provision for unfunded commitments		(1,902	)			(614	)			967				(2,581	)			2,594
Ending balance, RUC	$	15,041			$	16,943			$	16,269			$	15,041			$	16,269
Total ACL	$	193,685			$	177,628			$	148,451			$	193,685			$	148,451
ACL / total LHFI		1.05		%		0.97		%		0.95		%		1.05		%		0.95		%
ALLL / total LHFI		0.97		%		0.88		%		0.85		%		0.97		%		0.85		%
Net charge-offs / total average LHFI (annualized)		0.03		%		0.01		%		0.03		%		0.05		%		0.05		%
Provision for loan losses/ total average LHFI (annualized)		0.42		%		0.07		%		0.20		%		0.29		%		0.19		%
Nonperforming Assets
Construction and land development	$	1,313			$	1,945			$	348			$	1,313			$	348
Commercial real estate - owner occupied		2,915				4,781				3,001				2,915				3,001
Commercial real estate - non-owner occupied		1,167				9,919				12,616				1,167				12,616
Multifamily real estate		132				—				—				132				—
Commercial & Industrial		33,702				3,048				4,556				33,702				4,556
Residential 1-4 Family - Commercial		1,510				1,727				1,804				1,510				1,804
Residential 1-4 Family - Consumer		12,725				11,925				11,098				12,725				11,098
Residential 1-4 Family - Revolving		3,826				2,960				3,087				3,826				3,087
Auto		659				532				350				659				350
Consumer		20				10				—				20				—
Nonaccrual loans	$	57,969			$	36,847			$	36,860			$	57,969			$	36,860
Foreclosed property		404				404				29				404				29
Total nonperforming assets (NPAs)	$	58,373			$	37,251			$	36,889			$	58,373			$	36,889
Construction and land development	$	120			$	82			$	25			$	120			$	25
Commercial real estate - owner occupied		1,592				1,239				2,579				1,592				2,579
Commercial real estate - non-owner occupied		6,874				1,390				2,967				6,874				2,967
Multifamily real estate		—				53				—				—				—
Commercial & Industrial		955				862				782				955				782
Residential 1-4 Family - Commercial		949				801				1,383				949				1,383
Residential 1-4 Family - Consumer		1,307				1,890				4,470				1,307				4,470
Residential 1-4 Family - Revolving		1,710				1,186				1,095				1,710				1,095
Auto		284				401				410				284				410
Consumer		44				143				152				44				152
Other Commercial		308				7,127				—				308				—
LHFI ≥ 90 days and still accruing	$	14,143			$	15,174			$	13,863			$	14,143			$	13,863
Total NPAs and LHFI ≥ 90 days	$	72,516			$	52,425			$	50,752			$	72,516			$	50,752
NPAs / total LHFI		0.32		%		0.20		%		0.24		%		0.32		%		0.24		%
NPAs / total assets		0.24		%		0.15		%		0.17		%		0.24		%		0.17		%
ALLL / nonaccrual loans		308.17		%		436.09		%		358.61		%		308.17		%		358.61		%
ALLL/ nonperforming assets		306.04		%		431.36		%		358.32		%		306.04		%		358.32		%

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
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Past Due Detail
Construction and land development	$	38			$	1,559			$	270			$	38			$	270
Commercial real estate - owner occupied		2,080				2,291				1,575				2,080				1,575
Commercial real estate - non-owner occupied		1,381				1,085				545				1,381				545
Multifamily real estate		1,366				821				—				1,366				—
Commercial & Industrial		9,405				5,876				4,303				9,405				4,303
Residential 1-4 Family - Commercial		697				656				567				697				567
Residential 1-4 Family - Consumer		5,928				471				7,546				5,928				7,546
Residential 1-4 Family - Revolving		1,824				3,309				2,238				1,824				2,238
Auto		3,615				2,796				4,737				3,615				4,737
Consumer		804				700				770				804				770
Other Commercial		2,167				2				6,569				2,167				6,569
LHFI 30-59 days past due	$	29,305			$	19,566			$	29,120			$	29,305			$	29,120
Construction and land development	$	—			$	369			$	24				—				24
Commercial real estate - owner occupied		1,074				1,306				—				1,074				—
Commercial real estate - non-owner occupied		—				6,875				184				—				184
Multifamily real estate		—				135				146				—				146
Commercial & Industrial		69				549				49				69				49
Residential 1-4 Family - Commercial		665				736				676				665				676
Residential 1-4 Family - Consumer		7,390				6,950				1,804				7,390				1,804
Residential 1-4 Family - Revolving		2,110				2,672				1,429				2,110				1,429
Auto		456				468				872				456				872
Consumer		486				182				232				486				232
Other Commercial		2,029				185				—				2,029				—
LHFI 60-89 days past due	$	14,279			$	20,427			$	5,416			$	14,279			$	5,416
Past Due and still accruing	$	57,727			$	55,167			$	48,399			$	57,727			$	48,399
Past Due and still accruing / total LHFI		0.31		%		0.30		%		0.31		%		0.31		%		0.31		%
Alternative Performance Measures (non-GAAP)
Net interest income (FTE) (1)
Net interest income (GAAP)	$	183,248			$	182,932			$	153,544			$	698,539			$	611,013
FTE adjustment		3,791				3,899				3,712				15,226				14,910
Net interest income (FTE) (non-GAAP)	$	187,039			$	186,831			$	157,256			$	713,765			$	625,923
Noninterest income (GAAP)		35,227				34,286				29,959				118,878				90,877
Total revenue (FTE) (non-GAAP)	$	222,266			$	221,117			$	187,215			$	832,643			$	716,800
Average earning assets	$	22,373,970			$	21,983,946			$	18,676,967			$	21,347,677			$	18,368,806
Net interest margin		3.26		%		3.31		%		3.26		%		3.27		%		3.33		%
Net interest margin (FTE)		3.33		%		3.38		%		3.34		%		3.34		%		3.41		%
Tangible Assets (2)
Ending assets (GAAP)	$	24,585,323			$	24,803,723			$	21,166,197			$	24,585,323			$	21,166,197
Less: Ending goodwill		1,214,053				1,212,710				925,211				1,214,053				925,211
Less: Ending amortizable intangibles		84,563				90,176				19,183				84,563				19,183
Ending tangible assets (non-GAAP)	$	23,286,707			$	23,500,837			$	20,221,803			$	23,286,707			$	20,221,803
Tangible Common Equity (2)
Ending equity (GAAP)	$	3,142,879			$	3,182,416			$	2,556,327			$	3,142,879			$	2,556,327
Less: Ending goodwill		1,214,053				1,212,710				925,211				1,214,053				925,211
Less: Ending amortizable intangibles		84,563				90,176				19,183				84,563				19,183
Less: Perpetual preferred stock		166,357				166,357				166,357				166,357				166,357
Ending tangible common equity (non-GAAP)	$	1,677,906			$	1,713,173			$	1,445,576			$	1,677,906			$	1,445,576
Average equity (GAAP)	$	3,177,934			$	3,112,509			$	2,430,711			$	2,971,111			$	2,440,525
Less: Average goodwill		1,212,724				1,209,590				925,211				1,139,422				925,211
Less: Average amortizable intangibles		87,274				93,001				20,192				73,984				22,951
Less: Average perpetual preferred stock		166,356				166,356				166,356				166,356				166,356
Average tangible common equity (non-GAAP)	$	1,711,580			$	1,643,562			$	1,318,952			$	1,591,349			$	1,326,007
ROTCE (2)(3)
Net income available to common shareholders (GAAP)	$	54,818			$	73,448			$	53,940			$	197,263			$	189,950
Plus: Amortization of intangibles, tax effected		4,435				4,585				1,654				15,253				6,937
Net income available to common shareholders before amortization of intangibles (non-GAAP)	$	59,253			$	78,033			$	55,594			$	212,516			$	196,887
Return on average tangible common equity (ROTCE)		13.77		%		18.89		%		16.72		%		13.35		%		14.85		%

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
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Operating Measures (4)
Net income (GAAP)	$	57,785			$	76,415			$	56,907			$	209,131			$	201,818
Plus: Merger-related costs, net of tax		6,592				1,085				884				33,476				2,850
Plus: Strategic cost saving initiatives, net of tax		—				—				—				—				9,959
Plus: FDIC special assessment, net of tax		—				—				2,656				664				2,656
Plus: Legal reserve, net of tax		—				—				2,859				—				6,809
Plus: Deferred tax asset write-down		—				—				—				4,774				—
Less: Gain (loss) on sale of securities, net of tax		13				3				2				(5,129	)			(32,381	)
Less: Gain on sale-leaseback transaction, net of tax		—				—				1,484				—				23,367
Adjusted operating earnings (non-GAAP)		64,364				77,497				61,820				253,174				233,106
Less: Dividends on preferred stock		2,967				2,967				2,967				11,868				11,868
Adjusted operating earnings available to common shareholders (non-GAAP)	$	61,397			$	74,530			$	58,853			$	241,306			$	221,238
Operating Efficiency Ratio (1)(6)
Noninterest expense (GAAP)	$	129,675			$	122,582			$	107,929			$	507,534			$	430,371
Less: Amortization of intangible assets		5,614				5,804				2,094				19,307				8,781
Less: Merger-related costs		7,013				1,353				1,002				40,018				2,995
Less: FDIC special assessment		—				—				3,362				840				3,362
Less: Strategic cost saving initiatives		—				—				—				—				12,607
Less: Legal reserve		—				—				3,300				—				8,300
Adjusted operating noninterest expense (non-GAAP)	$	117,048			$	115,425			$	98,171			$	447,369			$	394,326
Noninterest income (GAAP)	$	35,227			$	34,286			$	29,959			$	118,878			$	90,877
Less: Gain (loss) on sale of securities		17				4				3				(6,493	)			(40,989	)
Less: Gain on sale-leaseback transaction		—				—				1,879				—				29,579
Adjusted operating noninterest income (non-GAAP)	$	35,210			$	34,282			$	28,077			$	125,371			$	102,287
Net interest income (FTE) (non-GAAP) (1)	$	187,039			$	186,831			$	157,256			$	713,765			$	625,923
Adjusted operating noninterest income (non-GAAP)		35,210				34,282				28,077				125,371				102,287
Total adjusted revenue (FTE) (non-GAAP) (1)	$	222,249			$	221,113			$	185,333			$	839,136			$	728,210
Efficiency ratio		59.35		%		56.43		%		58.82		%		62.09		%		61.32		%
Efficiency ratio (FTE) (1)		58.34		%		55.44		%		57.65		%		60.95		%		60.04		%
Adjusted operating efficiency ratio (FTE) (1)(6)		52.67		%		52.20		%		52.97		%		53.31		%		54.15		%
Operating ROA & ROE (4)
Adjusted operating earnings (non-GAAP)	$	64,364			$	77,497			$	61,820			$	253,174			$	233,106
Average assets (GAAP)	$	24,971,836			$	24,613,518			$	20,853,306			$	23,862,190			$	20,512,402
Return on average assets (ROA) (GAAP)		0.92		%		1.24		%		1.08		%		0.88		%		0.98		%
Adjusted operating return on average assets (ROA) (non-GAAP)		1.03		%		1.25		%		1.18		%		1.06		%		1.14		%
Average equity (GAAP)	$	3,177,934			$	3,112,509			$	2,430,711			$	2,971,111			$	2,440,525
Return on average equity (ROE) (GAAP)		7.23		%		9.77		%		9.29		%		7.04		%		8.27		%
Adjusted operating return on average equity (ROE) (non-GAAP)		8.06		%		9.91		%		10.09		%		8.52		%		9.55		%
Operating ROTCE (2)(3)(4)
Adjusted operating earnings available to common shareholders (non-GAAP)	$	61,397			$	74,530			$	58,853			$	241,306			$	221,238
Plus: Amortization of intangibles, tax effected		4,435				4,585				1,654				15,253				6,937
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)	$	65,832			$	79,115			$	60,507			$	256,559			$	228,175
Average tangible common equity (non-GAAP)	$	1,711,580			$	1,643,562			$	1,318,952			$	1,591,349			$	1,326,007
Adjusted operating return on average tangible common equity (non-GAAP)		15.30		%		19.15		%		18.20		%		16.12		%		17.21		%
Pre-tax pre-provision adjusted operating earnings (7)
Net income (GAAP)	$	57,785			$	76,415			$	56,907			$	209,131			$	201,818
Plus: Provision for credit losses		17,496				2,603				8,707				50,089				31,618
Plus: Income tax expense		13,519				15,618				9,960				50,663				38,083
Plus: Merger-related costs		7,013				1,353				1,002				40,018				2,995
Plus: Strategic cost saving initiatives		—				—				—				—				12,607
Plus: FDIC special assessment		—				—				3,362				840				3,362
Plus: Legal reserve		—				—				3,300				—				8,300
Less: Gain (loss) on sale of securities, net of tax		17				4				3				(6,493	)			(40,989	)
Less: Gain on sale-leaseback transaction		—				—				1,879				—				29,579
Pre-tax pre-provision adjusted operating earnings (non-GAAP)	$	95,796			$	95,985			$	81,356			$	357,234			$	310,193
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)	$	92,829			$	93,018			$	78,389			$	345,366			$	298,325
Weighted average common shares outstanding, diluted		91,533,273				89,780,531				75,016,858				87,909,237				74,962,363
Pre-tax pre-provision earnings per common share, diluted	$	1.01			$	1.04			$	1.04			$	3.93			$	3.98

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
	12/31/24				9/30/24				12/31/23				12/31/24				12/31/23
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Mortgage Origination Held for Sale Volume
Refinance Volume	$	7,335			$	4,285			$	3,972			$	21,492			$	13,740
Purchase Volume		42,677				56,634				27,871				179,565				128,046
Total Mortgage loan originations held for sale	$	50,012			$	60,919			$	31,843			$	201,057			$	141,786
% of originations held for sale that are refinances		14.7		%		7.0		%		12.5		%		10.7		%		9.7		%
Wealth
Assets under management	$	6,798,258			$	6,826,123			$	5,014,208			$	6,798,258			$	5,014,208
Other Data
End of period full-time equivalent employees		2,125				2,122				1,804				2,125				1,804
Number of full-service branches		129				129				109				129				109
Number of automatic transaction machines (ATMs)		148				149				123				148				123

________________________________________
(1)	These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing the yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.
(2)	These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies.
(3)	These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and is useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.
(4)	These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, merger-related costs, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), FDIC special assessments, legal reserves associated with our previously disclosed settlement with the CFPB, deferred tax asset write-down, gain (loss) on sale of securities, and gain on sale-leaseback transaction. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the Company’s operations.
(5)	All ratios at December 31, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9 C. All other periods are presented as filed.
(6)	The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, merger-related costs, FDIC special assessments, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), legal reserves associated with our previously disclosed settlement with the CFPB, gain (loss) on sale of securities, and gain on sale-leaseback transaction. This measure is similar to the measure used by the Company when analyzing corporate performance and is also similar to the measure used for incentive compensation. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.
(7)	These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, merger-related costs, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions and charges for exiting leases), FDIC special assessments, legal reserves associated with our previously disclosed settlement with the CFPB, gain (loss) on sale of securities, and gain on sale-leaseback transaction. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.
(8)	The calculations exclude the impact of unvested restricted stock awards outstanding as of each period end.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data)
	December 31,				September 30,				December 31,
	2024				2024				2023
ASSETS	(unaudited)				(unaudited)				(audited)
Cash and cash equivalents:
Cash and due from banks	$	196,435			$	232,222			$	196,754
Interest-bearing deposits in other banks		153,695				291,163				167,601
Federal funds sold		3,944				4,685				13,776
Total cash and cash equivalents		354,074				528,070				378,131
Securities available for sale, at fair value		2,442,166				2,608,182				2,231,261
Securities held to maturity, at carrying value		803,851				807,080				837,378
Restricted stock, at cost		102,954				117,881				115,472
Loans held for sale		9,420				11,078				6,710
Loans held for investment, net of deferred fees and costs		18,470,621				18,337,299				15,635,043
Less: allowance for loan and lease losses		178,644				160,685				132,182
Total loans held for investment, net		18,291,977				18,176,614				15,502,861
Premises and equipment, net		112,704				115,093				90,959
Goodwill		1,214,053				1,212,710				925,211
Amortizable intangibles, net		84,563				90,176				19,183
Bank owned life insurance		493,396				489,759				452,565
Other assets		676,165				647,080				606,466
Total assets	$	24,585,323			$	24,803,723			$	21,166,197
LIABILITIES
Noninterest-bearing demand deposits	$	4,277,048			$	4,422,909			$	3,963,181
Interest-bearing deposits		16,120,571				15,882,378				12,854,948
Total deposits		20,397,619				20,305,287				16,818,129
Securities sold under agreements to repurchase		56,275				59,227				110,833
Other short-term borrowings		60,000				375,000				810,000
Long-term borrowings		418,303				417,937				391,025
Other liabilities		510,247				463,856				479,883
Total liabilities		21,442,444				21,621,307				18,609,870
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $10.00 par value		173				173				173
Common stock, $1.33 par value		118,519				118,494				99,147
Additional paid-in capital		2,280,547				2,277,024				1,782,286
Retained earnings		1,103,326				1,079,032				1,018,070
Accumulated other comprehensive loss		(359,686	)			(292,307	)			(343,349	)
Total stockholders' equity		3,142,879				3,182,416				2,556,327
Total liabilities and stockholders' equity	$	24,585,323			$	24,803,723			$	21,166,197
Common shares outstanding		89,770,231				89,774,392				75,023,327
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,
	2024				2024				2023				2024				2023
	(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Interest and dividend income:
Interest and fees on loans	$	282,116			$	291,089			$	230,378			$	1,093,004			$	846,923
Interest on deposits in other banks		5,774				1,060				2,255				10,751				6,071
Interest and dividends on securities:
Taxable		23,179				24,247				18,703				91,191				67,075
Nontaxable		8,135				8,132				8,161				32,589				34,381
Total interest and dividend income		319,204				324,528				259,497				1,227,535				954,450
Interest expense:
Interest on deposits		129,311				130,216				95,998				483,894				296,689
Interest on short-term borrowings		1,187				5,698				5,043				23,236				27,148
Interest on long-term borrowings		5,458				5,682				4,912				21,866				19,600
Total interest expense		135,956				141,596				105,953				528,996				343,437
Net interest income		183,248				182,932				153,544				698,539				611,013
Provision for credit losses		17,496				2,603				8,707				50,089				31,618
Net interest income after provision for credit losses		165,752				180,329				144,837				648,450				579,395
Noninterest income:
Service charges on deposit accounts		9,832				9,792				8,662				37,279				33,240
Other service charges, commissions and fees		1,811				2,002				1,789				7,511				7,860
Interchange fees		3,342				3,371				2,581				12,134				9,678
Fiduciary and asset management fees		6,925				6,858				4,526				25,528				17,695
Mortgage banking income		928				1,214				774				4,202				2,743
Gain (loss) on sale of securities		17				4				3				(6,493	)			(40,989	)
Bank owned life insurance income		3,555				5,037				3,088				15,629				11,759
Loan-related interest rate swap fees		5,082				1,503				3,588				9,435				10,037
Other operating income		3,735				4,505				4,948				13,653				38,854
Total noninterest income		35,227				34,286				29,959				118,878				90,877
Noninterest expenses:
Salaries and benefits		71,297				69,454				56,686				271,164				236,682
Occupancy expenses		7,964				7,806				6,644				30,232				25,146
Furniture and equipment expenses		3,783				3,685				3,517				14,582				14,282
Technology and data processing		9,383				9,737				7,853				37,520				32,484
Professional services		5,353				3,994				4,346				16,804				15,483
Marketing and advertising expense		3,517				3,308				3,018				12,126				10,406
FDIC assessment premiums and other insurance		5,155				5,282				7,630				20,255				19,861
Franchise and other taxes		3,594				5,256				4,505				18,364				18,013
Loan-related expenses		1,470				1,445				1,060				5,513				5,619
Amortization of intangible assets		5,614				5,804				2,094				19,307				8,781
Merger-related costs		7,013				1,353				1,002				40,018				2,995
Other expenses		5,532				5,458				9,574				21,649				40,619
Total noninterest expenses		129,675				122,582				107,929				507,534				430,371
Income before income taxes		71,304				92,033				66,867				259,794				239,901
Income tax expense		13,519				15,618				9,960				50,663				38,083
Net Income	$	57,785			$	76,415			$	56,907			$	209,131			$	201,818
Dividends on preferred stock		2,967				2,967				2,967				11,868				11,868
Net income available to common shareholders	$	54,818			$	73,448			$	53,940			$	197,263			$	189,950
Basic earnings per common share	$	0.61			$	0.82			$	0.72			$	2.29			$	2.53
Diluted earnings per common share	$	0.60			$	0.82			$	0.72			$	2.24			$	2.53

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED) (Dollars in thousands)
	For the Quarter Ended
	December 31, 2024											September 30, 2024
	Average Balance				Interest Income / Expense (1)				Yield / Rate (1)(2)			Average Balance				Interest Income / Expense (1)				Yield / Rate (1)(2)
Assets:
Securities:
Taxable	$	2,187,887			$	23,179			4.21	%		$	2,248,207			$	24,247			4.29	%
Tax-exempt		1,254,453				10,297			3.27	%			1,253,672				10,293			3.27	%
Total securities		3,442,340				33,476			3.87	%			3,501,879				34,540			3.92	%
LHFI, net of deferred fees and costs (3)(4)		18,367,657				283,459			6.14	%			18,320,122				292,469			6.35	%
Other earning assets		563,973				6,060			4.27	%			161,945				1,418			3.48	%
Total earning assets		22,373,970			$	322,995			5.74	%			21,983,946			$	328,427			5.94	%
Allowance for loan and lease losses		(160,682	)										(159,023	)
Total non-earning assets		2,758,548											2,788,595
Total assets	$	24,971,836										$	24,613,518
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	10,452,638			$	74,408			2.83	%		$	9,932,247			$	74,996			3.00	%
Regular savings		1,028,661				569			0.22	%			1,046,511				579			0.22	%
Time deposits (5)		4,862,446				54,334			4.45	%			4,758,039				54,641			4.57	%
Total interest-bearing deposits		16,343,745				129,311			3.15	%			15,736,797				130,216			3.29	%
Other borrowings (6)		543,061				6,645			4.87	%			855,306				11,380			5.29	%
Total interest-bearing liabilities	$	16,886,806			$	135,956			3.20	%		$	16,592,103			$	141,596			3.40	%
Noninterest-bearing liabilities:
Demand deposits		4,413,776											4,437,361
Other liabilities		493,320											471,545
Total liabilities		21,793,902											21,501,009
Stockholders' equity		3,177,934											3,112,509
Total liabilities and stockholders' equity	$	24,971,836										$	24,613,518
Net interest income (FTE)					$	187,039										$	186,831
Interest rate spread									2.54	%										2.54	%
Cost of funds									2.41	%										2.56	%
Net interest margin (FTE)									3.33	%										3.38	%

________________
(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.
(4)	Interest income on loans includes $13.7 million and $13.9 million for the three months ended December 31, 2024 and September 30, 2024, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5)	Interest expense on time deposits includes $775,000 and $913,000 for the three months ended December 31, 2024 and September 30, 2024, respectively, in amortization of the fair market value adjustments related to acquisitions.
(6)	Interest expense on borrowings includes $288,000 for both the three months ended December 31, 2024 and September 30, 2024, in amortization of the fair market value adjustments related to acquisitions.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250123065360/en/

Robert M. Gorman - (804) 523‑7828

Executive Vice President / Chief Financial Officer

Source: Atlantic Union Bankshares Corporation

FAQ

What were Atlantic Union Bankshares' (AUB) Q4 2024 earnings per share?

Atlantic Union Bankshares reported basic EPS of $0.61 and diluted EPS of $0.60 for Q4 2024.

How much did AUB's provision for credit losses increase in Q4 2024?

The provision for credit losses increased to $17.5 million in Q4 2024, up from $2.6 million in Q3 2024.

What was AUB's total deposit growth in Q4 2024?

Total deposits increased by $92.3 million to $20.4 billion in Q4 2024.

How did AUB's net interest margin change in Q4 2024?

The net interest margin decreased by 5 basis points to 3.26% in Q4 2024.

What was AUB's dividend increase in Q4 2024?

AUB increased its quarterly dividend by 6.3% to $0.34 per common share.