Atlantic Union Bankshares Reports Second Quarter Results

Rhea-AI Summary

Atlantic Union Bankshares Corporation (Nasdaq: AUB) reported a net income of $59.3 million and earnings per share of $0.79 for Q2 2022. Adjusted operating earnings were $51.3 million, with diluted EPS at $0.69. The bank experienced annualized loan growth of upper single digits, net interest income rose to $138.8 million, and the net interest margin increased to 3.15%. Despite low nonperforming assets at 0.23%, total deposits decreased by 8.7% from the previous quarter. The share repurchase program continued, with $51.8 million remaining available for buybacks.

Positive

• Q2 2022 net income of $59.3 million, EPS at $0.79.
• Adjusted operating earnings were $51.3 million, diluted EPS at $0.69.
• Annualized loan growth in upper single digits.
• Net interest income increased by $7.9 million to $138.8 million.
• Net interest margin rose 18 basis points to 3.15%.

Negative

• Total deposits decreased by $355.6 million or 8.7% from Q1 2022.
• Total assets declined by $120.6 million or 2.4% from Q1 2022.

RICHMOND, Va., July 21, 2022 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) reported net income available to common shareholders of $59.3 million and basic and diluted earnings per common share of $0.79 for the second quarter ended June 30, 2022. Adjusted operating earnings available to common shareholders⁽¹⁾ were $51.3 million, diluted operating earnings per common share⁽¹⁾ were $0.69, and pre-tax pre-provision adjusted operating earnings available to common shareholders⁽¹⁾ were $66.2 million for the second quarter ended June 30, 2022.

“Atlantic Union Bankshares delivered solid second quarter results with upper single digit annualized loan growth, strong credit metrics, and an expanding net interest margin,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We continue to be mindful of the current economic uncertainties, but remain encouraged by our competitive positioning, market dynamics, asset sensitivity and the economic strength in our footprint, which gives us confidence in our ability to achieve our top tier financial targets in the second half of the year.”

“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.”

Share Repurchase Program

On December 10, 2021, the Company’s Board of Directors authorized a share repurchase program (the “Repurchase Program”) to purchase up to $100 million of the Company’s common stock through December 9, 2022 in open market transactions or privately negotiated transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and / or Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As part of the Repurchase Program, approximately 1.3 million shares (or $48.2 million) were repurchased during the six months ended June 30, 2022, and of these shares approximately 649,000 shares (or $23.2 million) were repurchased during the second quarter of 2022. At June 30, 2022, approximately $51.8 million of share repurchases remain available under the Repurchase Program.

NET INTEREST INCOME

For the second quarter of 2022, net interest income was $138.8 million, an increase of $7.9 million from $130.9 million for the first quarter of 2022. Net interest income (FTE)⁽¹⁾ was $142.3 million in the second quarter of 2022, an increase of approximately $8.1 million from the first quarter of 2022. The increases in net interest income and net interest income (FTE)⁽¹⁾ were primarily driven by higher interest income due to average loan growth from the prior quarter, increases in loan yields on the Company’s variable rate loans due to higher market interest rates and the additional day count in the second quarter, partially offset by increases in deposit and borrowing costs. The second quarter net interest margin increased 18 basis points to 3.15% from the previous quarter, and the net interest margin (FTE)⁽¹⁾ increased 20 basis points during the same period to 3.24%. The cost of funds increased by 4 basis points to 22 basis points, compared to the first quarter of 2022, driven by higher deposit and borrowing costs 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 $2.7 million for the quarter ended June 30, 2022, representing an increase of $621,000 from the prior quarter. The first and second quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

	Loan				Deposit				Borrowings
	Accretion				Amortization				Amortization				Total
For the quarter ended March 31, 2022	$	2,253			$	(10	)		$	(203	)		$	2,040
For the quarter ended June 30, 2022		2,879				(11	)			(207	)			2,661
For the remaining six months of 2022 (estimated)		2,026				(23	)			(418	)			1,585
For the years ending (estimated):
2023		3,390				(31	)			(852	)			2,507
2024		2,769				(4	)			(877	)			1,888
2025		2,162				(1	)			(900	)			1,261
2026		1,727				—				(926	)			801
2027		1,317				—				(953	)			364
Thereafter		6,532				—				(7,993	)			(1,461	)
Total remaining acquisition accounting fair value adjustments at June 30, 2022	$	19,923			$	(59	)		$	(12,919	)		$	6,945

ASSET QUALITY

Overview
During the second quarter of 2022, nonperforming assets (“NPAs”) as a percentage of loans remained low at 0.23% at June 30, 2022. Accruing past due loan levels as a percentage of total loans held for investment at June 30, 2022 totaled 15 basis points, which was a 7 basis point decrease as compared to March 31, 2022, and 3 basis points lower than at June 30, 2021. Net charge-off levels remained low at 0.03% of total average loans for the second quarter of 2022. The allowance for credit losses (“ACL”) totaled $113.2 million at June 30, 2022, a $2.6 million increase from the prior quarter.

Nonperforming Assets
At June 30, 2022, NPAs totaled $31.1 million, an increase of $407,000 from March 31, 2022. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

	June 30,				March 31,				December 31,				September 30,				June 30,
	2022				2022				2021				2021				2021
Nonaccrual loans	$	29,070			$	29,032			$	31,100			$	35,472			$	36,399
Foreclosed properties		2,065				1,696				1,696				1,696				1,696
Total nonperforming assets	$	31,135			$	30,728			$	32,796			$	37,168			$	38,095

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

	June 30,				March 31,				December 31,				September 30,				June 30,
	2022				2022				2021				2021				2021
Beginning Balance	$	29,032			$	31,100			$	35,472			$	36,399			$	41,866
Net customer payments		(2,472	)			(4,132	)			(5,068	)			(4,719	)			(9,307	)
Additions		3,203				2,087				1,294				4,177				4,162
Charge-offs		(311	)			(23	)			(598	)			(385	)			(183	)
Loans returning to accruing status		—				—				—				—				(153	)
Transfers to foreclosed property		(382	)			—				—				—				14
Ending Balance	$	29,070			$	29,032			$	31,100			$	35,472			$	36,399

Past Due Loans
Past due loans still accruing interest totaled $20.4 million or 0.15% of total loans held for investment at June 30, 2022, compared to $29.6 million or 0.22% of total loans held for investment at March 31, 2022, and $25.1 million or 0.18% of total loans held for investment at June 30, 2021. Of the total past due loans still accruing interest, $4.6 million or 0.03% of total loans held for investment were loans past due 90 days or more at June 30, 2022, compared to $8.2 million or 0.06% of total loans held for investment at March 31, 2022, and $8.7 million or 0.06% of total loans held for investment at June 30, 2021.

Net Charge-offs
Net charge-offs were $939,000 or 0.03% of total average loans on an annualized basis for the quarter ended June 30, 2022, compared to insignificant net charge-offs of less than 0.01% for the first quarter of 2022 and the second quarter of 2021. On a year to date basis through June 30, 2022, net charge-offs were $935,000 or 0.01% of total average loans (annualized).

Provision for Credit Losses
For the quarter ended June 30, 2022, the Company recorded a provision for credit losses of $3.6 million, compared to a provision for credit losses of $2.8 million in the previous quarter, and a negative provision for credit losses of $27.4 million recorded during the same quarter in 2021. The provision for credit losses for the second quarter of 2022 reflected a provision of $2.6 million for loan and securities losses and $1.0 million for unfunded commitments.

Allowance for Credit Losses
At June 30, 2022, the ACL was $113.2 million and included an allowance for loan and lease losses (“ALLL”) of $104.2 million and a reserve for unfunded commitments (“RUC”) of $9.0 million. The ACL at June 30, 2022 increased $2.6 million from March 31, 2022, primarily due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the second quarter of 2022.

The ACL as a percentage of total loans increased slightly to 0.83% at June 30, 2022, compared to 0.82% at March 31, 2022. The ALLL as a percentage of total loans was 0.76% at June 30, 2022, consistent with March 31, 2022.

NONINTEREST INCOME

Noninterest income increased $8.1 million to $38.3 million for the quarter ended June 30, 2022 from $30.2 million in the prior quarter, primarily due to a $9.1 million pre-tax gain resulting from the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”), a $458,000 increase in interchange fees due to an increase in transaction and dollar volumes, and a $444,000 increase in service charges on deposit accounts. These noninterest category increases were partially offset by a decrease in loan interest rate swap fee income of $1.3 million due to a decrease in average swap fees, a decrease in unrealized gains on equity method investments of $1.1 million, and lower mortgage banking income of $917,000, resulting from declining gain on sale margins.

NONINTEREST EXPENSE

Noninterest expense decreased $6.5 million to $98.8 million for the quarter ended June 30, 2022 from $105.3 million in the prior quarter, primarily driven by a decrease in restructuring expenses, as the prior quarter reflected $5.5 million related to the Company’s restructure activity that included the consolidation of 16 branches that was completed in March 2022. In addition, salaries and benefits expense declined by $3.0 million during the second quarter, due to decreases in payroll related taxes and 401(k) contribution expenses, which are typically seasonally higher in the first quarter. Partially offsetting these expense reductions was an increase of $590,000 in professional services expenses, an increase of $350,000 in Teammate related expenses (included as a component of other expenses) associated with the re-opening of our corporate offices, an increase in marketing and advertising expenses of $339,000, and an increase in FDIC assessment premiums of $281,000.

INCOME TAXES

The effective tax rate for the three months ended June 30, 2022 was 16.7%, compared to 17.5% for the three months ended March 31, 2022, reflecting the impact of discrete items related to the sale of DHFB.

BALANCE SHEET

At June 30, 2022, total assets were $19.7 billion, a decrease of $120.6 million or approximately 2.4% (annualized) from March 31, 2022, and a decrease of $327.6 million or approximately 1.6% from June 30, 2021. Total assets declined from the prior quarter due to a decline in the investment securities portfolio of $207.1 million primarily due to the impact of market interest rate increases on the market value of the AFS securities portfolio, partially offset by the net impact of the decrease in cash and cash equivalents of $154.9 million, which was deployed to fund $196.1 million in loan growth during the quarter.

At June 30, 2022, loans held for investment (net of deferred fees and costs) totaled $13.7 billion, including $21.7 million in Paycheck Protection Program (“PPP”) loans, an increase of $196.1 million or 5.8% (annualized) from $13.5 billion, including $67.4 million in PPP loans, at March 31, 2022. Average loans held for investment (net of deferred fees and costs) totaled $13.5 billion at June 30, 2022, an increase of $224.7 million or 6.8% (annualized) from the prior quarter. Excluding the effects of the PPP⁽¹⁾, adjusted loans held for investment (net of deferred fees and costs) at June 30, 2022 increased $241.8 million or 7.2% (annualized) from March 31, 2022 and adjusted average loans increased $284.4 million or 8.6% (annualized) from the prior quarter. At June 30, 2022 loans held for investment (net of deferred fees and costs) decreased $42.5 million or 0.3% from June 30, 2021, and quarterly average loans decreased $446.4 million or 3.2% from the same period in the prior year. Excluding the effects of the PPP⁽¹⁾, adjusted loans held for investment (net of deferred fees and costs) at June 30, 2022 increased $795.1 million or 6.2% from the same period in the prior year, and adjusted quarterly average loans during the second quarter of 2022 increased $697.8 million or 5.5% from the same period in the prior year.

At June 30, 2022, total deposits were $16.1 billion, a decrease of $355.6 million or approximately 8.7% (annualized) from March 31, 2022. Average deposits at June 30, 2022 also decreased from the prior quarter by $323.3 million or 7.9% (annualized). The decline in deposits was primarily driven by a public funds client that used available deposit funds to repay higher cost, longer-term debt obligations during the second quarter. Total deposits at June 30, 2022 decreased $530.6 million or 3.2% from June 30, 2021, and quarterly average deposits at June 30, 2022 decreased $309.5 million or 1.9% from the same period in the prior year. The decrease in total deposits from the prior year was primarily due to a decline in money market account balances of $494.7 million and maturing time deposits.

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

	June 30,		March 31,		June 30,
	2022		2021		2021
Common equity Tier 1 capital ratio (2)	9.96	%	9.86	%	10.56	%
Tier 1 capital ratio (2)	11.00	%	10.91	%	11.68	%
Total capital ratio (2)	13.85	%	13.79	%	14.05	%
Leverage ratio (Tier 1 capital to average assets) (2)	9.26	%	9.07	%	9.20	%
Common equity to total assets	11.32	%	11.79	%	12.91	%
Tangible common equity to tangible assets (1)	6.78	%	7.21	%	8.40	%

_______________

For the quarter ended June 30, 2022, the Company’s common equity to total assets capital ratio and the tangible common equity to tangible assets capital ratio decreased from the prior quarter and prior year primarily due to the unrealized losses on the AFS securities portfolio recorded in other comprehensive income due to market interest rate increases in the second quarter of 2022.

During the second quarter of 2022, 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 first quarter of 2022 and the second quarter of 2021. During the second quarter of 2022, the Company also declared and paid cash dividends of $0.28 per common share, consistent with the first quarter of 2022 and the second quarter of 2021.

_______________
⁽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 Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

⁽²⁾ All ratios at June 30, 2022 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 (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

Sale of Dixon, Hubard, Feinour & Brown, Inc.

Effective June 30, 2022, the Company transferred its ownership interest in DHFB, which was formerly a subsidiary of Atlantic Union Bank (the “Bank”) to Cary Street Partners Financial LLC (“CSP”) in exchange for a minority ownership interest in CSP.

SECOND QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for analysts on Thursday, July 21, 2022 at 9:00 a.m. Eastern Time during which management will review the financial results for the three and six months ended June 30, 2022 and provide an update on recent activities.

Interested parties may participate in the call by registering at the following URL:
https://register.vevent.com/register/BI251d953edb164e91bd37f98e5106e347. The conference call provider has changed its dial-in procedures, so all attendees must utilize the link to receive an audio dial-in number and their Access PIN.

Management will conduct a listen-only webcast with accompanying slides, which can be found at:
https://edge.media-server.com/mmc/p/8t2h7c2u.

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 periods ended June 30, 2022, 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) section of the Key Financial Results.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release 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 quotes, statements regarding the Company’s outlook on future economic conditions and the impacts of the current economic uncertainties and statements that include, projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, 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. Such 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,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, the Company 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 the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolio;
• inflation and its impacts on economic growth and customer and client behavior;
• general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
• monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
• the quality or composition of the loan or investment portfolios and changes therein;
• demand for loan products and financial services in the Company’s market area;
• the Company’s ability to manage its growth or implement its growth strategy;
• the effectiveness of expense reduction plans;
• the introduction of new lines of business or new products and services;
• the Company’s ability to recruit and retain key employees;
• real estate values in the Bank’s lending area;
• an insufficient ACL;
• changes in accounting principles, including without limitation, relating to the CECL methodology;
• the Company’s liquidity and capital positions;
• concentrations of loans secured by real estate, particularly commercial real estate;
• the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
• the Company’s 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;
• the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
• the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;
• the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
• performance by the Company’s 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;
• potential claims, damages, and fines related to litigation or government actions;
• the effects of changes in federal, state or local tax laws and regulations;
• changes to applicable accounting principles and guidelines; and
• other factors, many of which are beyond the control of the Company.

Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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 should be considered in evaluating forward-looking statements, all forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in the press release, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended										As of & For Six Months Ended
	06/30/22			03/31/22			06/30/21				06/30/22			06/30/21
Results of Operations
Interest and dividend income	$	148,755		$	138,456		$	150,852			$	287,212		$	298,525
Interest expense		9,988			7,525			10,304				17,514			23,079
Net interest income		138,767			130,931			140,548				269,698			275,446
Provision for credit losses		3,559			2,800			(27,414	)			6,359			(41,037	)
Net interest income after provision for credit losses		135,208			128,131			167,962				263,339			316,483
Noninterest income		38,286			30,153			28,466				68,439			59,451
Noninterest expenses		98,768			105,321			91,971				204,089			203,908
Income before income taxes		74,726			52,963			104,457				127,689			172,026
Income tax expense		12,500			9,273			19,073				21,773			30,453
Net income		62,226			43,690			85,384				105,916			141,573
Dividends on preferred stock		2,967			2,967			2,967				5,934			5,934
Net income available to common shareholders	$	59,259		$	40,723		$	82,417			$	99,982		$	135,639
Interest earned on earning assets (FTE) (1)	$	152,332		$	141,792		$	153,996			$	294,124		$	304,722
Net interest income (FTE) (1)		142,344			134,267			143,692				276,610			281,643
Total revenue (FTE) (1)		180,630			164,420			172,158				345,049			341,094
Pre-tax pre-provision adjusted operating earnings (8)		69,205			61,271			77,021				130,476			146,508
Key Ratios
Earnings per common share, diluted	$	0.79		$	0.54		$	1.05			$	1.33		$	1.72
Return on average assets (ROA)		1.27	%		0.89	%		1.72		%		1.08	%		1.44		%
Return on average equity (ROE)		10.21	%		6.66	%		12.46		%		8.37	%		10.44		%
Return on average tangible common equity (ROTCE) (2) (3)		18.93	%		11.53	%		21.44		%		14.97	%		18.06		%
Efficiency ratio		55.78	%		65.38	%		54.42		%		60.36	%		60.89		%
Efficiency ratio (FTE) (1)		54.68	%		64.06	%		53.42		%		59.15	%		59.78		%
Net interest margin		3.15	%		2.97	%		3.15		%		3.06	%		3.12		%
Net interest margin (FTE) (1)		3.24	%		3.04	%		3.23		%		3.14	%		3.19		%
Yields on earning assets (FTE) (1)		3.46	%		3.22	%		3.46		%		3.34	%		3.46		%
Cost of interest-bearing liabilities		0.35	%		0.26	%		0.35		%		0.30	%		0.39		%
Cost of deposits		0.15	%		0.11	%		0.18		%		0.13	%		0.20		%
Cost of funds		0.22	%		0.18	%		0.23		%		0.20	%		0.27		%
Operating Measures (4)
Adjusted operating earnings	$	54,244		$	48,041		$	85,367			$	102,285		$	153,833
Adjusted operating earnings available to common shareholders		51,277			45,074			82,400				96,351			147,899
Adjusted operating earnings per common share, diluted	$	0.69		$	0.60		$	1.05			$	1.28		$	1.88
Adjusted operating ROA		1.10	%		0.98	%		1.72		%		1.04	%		1.57		%
Adjusted operating ROE		8.90	%		7.32	%		12.46		%		8.08	%		11.35		%
Adjusted operating ROTCE (2) (3)		16.47	%		12.69	%		21.44		%		14.45	%		19.63		%
Adjusted operating efficiency ratio (FTE) (1)(7)		55.88	%		58.86	%		51.36		%		57.34	%		53.08		%
Per Share Data
Earnings per common share, basic	$	0.79		$	0.54		$	1.05			$	1.33		$	1.72
Earnings per common share, diluted		0.79			0.54			1.05				1.33			1.72
Cash dividends paid per common share		0.28			0.28			0.28				0.56			0.53
Market value per share		33.92			36.69			36.22				33.92			36.22
Book value per common share		29.95			31.12			33.30				29.95			33.30
Tangible book value per common share (2)		17.07			18.10			20.59				17.07			20.59
Price to earnings ratio, diluted		10.68			16.75			8.60				12.65			10.44
Price to book value per common share ratio		1.13			1.18			1.09				1.13			1.09
Price to tangible book value per common share ratio (2)		1.99			2.03			1.76				1.99			1.76
Weighted average common shares outstanding, basic		74,847,899			75,544,644			78,819,697				75,194,347			78,841,462
Weighted average common shares outstanding, diluted		74,849,871			75,556,127			78,843,724				75,201,326			78,863,859
Common shares outstanding at end of period		74,688,314			75,335,956			77,928,948				74,688,314			77,928,948

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Six Months Ended
	06/30/22			03/31/22			06/30/21			06/30/22			06/30/21
Capital Ratios
Common equity Tier 1 capital ratio (5)		9.96	%		9.86	%		10.56	%		9.96	%		10.56	%
Tier 1 capital ratio (5)		11.00	%		10.91	%		11.68	%		11.00	%		11.68	%
Total capital ratio (5)		13.85	%		13.79	%		14.05	%		13.85	%		14.05	%
Leverage ratio (Tier 1 capital to average assets) (5)		9.26	%		9.07	%		9.20	%		9.26	%		9.20	%
Common equity to total assets		11.32	%		11.79	%		12.91	%		11.32	%		12.91	%
Tangible common equity to tangible assets (2)		6.78	%		7.21	%		8.40	%		6.78	%		8.40	%
Financial Condition
Assets	$	19,661,799		$	19,782,430		$	19,989,356		$	19,661,799		$	19,989,356
Loans held for investment (net of deferred fees and costs)		13,655,408			13,459,349			13,697,929			13,655,408			13,697,929
Securities		3,820,078			4,027,185			3,491,669			3,820,078			3,491,669
Earning Assets		17,578,979			17,731,089			17,824,283			17,578,979			17,824,283
Goodwill		925,211			935,560			935,560			925,211			935,560
Amortizable intangibles, net		31,621			40,273			49,917			31,621			49,917
Deposits		16,128,635			16,484,223			16,659,219			16,128,635			16,659,219
Borrowings		797,948			504,032			380,079			797,948			380,079
Stockholders' equity		2,391,476			2,498,335			2,747,597			2,391,476			2,747,597
Tangible common equity (2)		1,268,287			1,356,145			1,595,763			1,268,287			1,595,763
Loans held for investment, net of deferred fees and costs
Construction and land development	$	988,379		$	969,059		$	838,722		$	988,379		$	838,722
Commercial real estate - owner occupied		1,965,702			2,007,671			2,069,658			1,965,702			2,069,658
Commercial real estate - non-owner occupied		3,860,819			3,875,681			3,712,607			3,860,819			3,712,607
Multifamily real estate		762,502			723,940			860,081			762,502			860,081
Commercial & Industrial		2,595,891			2,540,680			2,990,622			2,595,891			2,990,622
Residential 1-4 Family - Commercial		553,771			569,801			637,485			553,771			637,485
Residential 1-4 Family - Consumer		865,174			824,163			823,355			865,174			823,355
Residential 1-4 Family - Revolving		583,073			568,403			559,014			583,073			559,014
Auto		525,301			499,855			411,073			525,301			411,073
Consumer		180,045			171,875			195,036			180,045			195,036
Other Commercial		774,751			708,221			600,276			774,751			600,276
Total loans held for investment	$	13,655,408		$	13,459,349		$	13,697,929		$	13,655,408		$	13,697,929
Deposits
Interest checking accounts	$	3,943,303		$	4,121,257		$	3,777,540		$	3,943,303		$	3,777,540
Money market accounts		3,956,050			4,151,155			4,450,724			3,956,050			4,450,724
Savings accounts		1,165,577			1,166,922			1,032,171			1,165,577			1,032,171
Time deposits of $250,000 and over		360,158			365,796			566,180			360,158			566,180
Other time deposits		1,342,009			1,309,030			1,610,032			1,342,009			1,610,032
Time deposits		1,702,167			1,674,826			2,176,212			1,702,167			2,176,212
Total interest-bearing deposits	$	10,767,097		$	11,114,160		$	11,436,647		$	10,767,097		$	11,436,647
Demand deposits		5,361,538			5,370,063			5,222,572			5,361,538			5,222,572
Total deposits	$	16,128,635		$	16,484,223		$	16,659,219		$	16,128,635		$	16,659,219
Averages
Assets	$	19,719,402		$	19,920,368		$	19,922,978		$	19,819,330		$	19,805,569
Loans held for investment (net of deferred fees and costs)		13,525,529			13,300,789			13,971,939			13,413,780			14,017,777
Loans held for sale		20,634			14,636			36,790			17,652			49,834
Securities		3,930,912			4,198,582			3,420,329			4,064,007			3,315,435
Earning assets		17,646,470			17,885,018			17,868,938			17,765,085			17,781,005
Deposits		16,191,056			16,514,375			16,500,541			16,351,822			16,288,772
Time deposits		1,667,378			1,766,657			2,270,217			1,716,743			2,379,716
Interest-bearing deposits		10,824,465			11,286,277			11,446,768			11,054,095			11,468,826
Borrowings		765,886			511,722			399,855			639,506			486,784
Interest-bearing liabilities		11,590,351			11,797,999			11,846,623			11,693,601			11,955,610
Stockholders' equity		2,445,045			2,660,984			2,747,864			2,552,418			2,733,980
Tangible common equity (2)		1,304,536			1,517,325			1,594,311			1,410,342			1,578,531

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended										As of & For Six Months Ended
	06/30/22			03/31/22			06/30/21				06/30/22			06/30/21
Asset Quality
Allowance for Credit Losses (ACL)
Beginning balance, Allowance for loan and lease losses (ALLL)	$	102,591		$	99,787		$	142,911			$	99,787		$	160,540
Add: Recoveries		1,018			1,513			1,876				2,531			4,345
Less: Charge-offs		1,957			1,509			1,945				3,466			5,586
Add: Provision for loan losses		2,532			2,800			(24,581	)			5,332			(41,038	)
Ending balance, ALLL	$	104,184		$	102,591		$	118,261			$	104,184		$	118,261
Beginning balance, Reserve for unfunded commitment (RUC)	$	8,000		$	8,000		$	12,833			$	8,000		$	10,000
Add: Provision for unfunded commitments		1,000			—			(2,833	)			1,000			—
Ending balance, RUC	$	9,000		$	8,000		$	10,000			$	9,000		$	10,000
Total ACL	$	113,184		$	110,591		$	128,261			$	113,184		$	128,261
ACL / total outstanding loans		0.83	%		0.82	%		0.94		%		0.83	%		0.94		%
ACL / total adjusted loans(9)		0.83	%		0.83	%		1.00		%		0.83	%		1.00		%
ALLL / total outstanding loans		0.76	%		0.76	%		0.86		%		0.76	%		0.86		%
ALLL / total adjusted loans(9)		0.76	%		0.77	%		0.92		%		0.76	%		0.92		%
Net charge-offs / total average loans		0.03	%		0.00	%		0.00		%		0.01	%		0.02		%
Net charge-offs / total adjusted average loans(9)		0.03	%		0.00	%		0.00		%		0.01	%		0.02		%
Provision for loan losses/ total average loans		0.08	%		0.09	%		(0.71	)	%		0.08	%		(0.59	)	%
Provision for loan losses/ total adjusted average loans(9)		0.08	%		0.09	%		(0.77	)	%		0.08	%		(0.65	)	%
Nonperforming Assets (6)
Construction and land development	$	581		$	869		$	2,685			$	581		$	2,685
Commercial real estate - owner occupied		4,996			4,865			6,969				4,996			6,969
Commercial real estate - non-owner occupied		3,301			3,287			3,026				3,301			3,026
Multifamily real estate		—			—			113				—			113
Commercial & Industrial		2,728			1,975			1,908				2,728			1,908
Residential 1-4 Family - Commercial		2,031			2,239			4,200				2,031			4,200
Residential 1-4 Family - Consumer		12,084			12,039			13,489				12,084			13,489
Residential 1-4 Family - Revolving		3,069			3,371			3,726				3,069			3,726
Auto		279			333			179				279			179
Consumer		1			54			104				1			104
Nonaccrual loans	$	29,070		$	29,032		$	36,399			$	29,070		$	36,399
Foreclosed property		2,065			1,696			1,696				2,065			1,696
Total nonperforming assets (NPAs)	$	31,135		$	30,728		$	38,095			$	31,135		$	38,095
Construction and land development	$	1		$	1		$	186			$	1		$	186
Commercial real estate - owner occupied		792			2,396			2,276				792			2,276
Commercial real estate - non-owner occupied		642			1,735			827				642			827
Commercial & Industrial		322			763			1,088				322			1,088
Residential 1-4 Family - Commercial		184			878			759				184			759
Residential 1-4 Family - Consumer		1,112			1,147			2,725				1,112			2,725
Residential 1-4 Family - Revolving		997			1,065			561				997			561
Auto		134			192			168				134			168
Consumer		79			70			156				79			156
Other Commercial		329			—			—				329			—
Loans ≥ 90 days and still accruing	$	4,592		$	8,247		$	8,746			$	4,592		$	8,746
Total NPAs and loans ≥ 90 days	$	35,727		$	38,975		$	46,841			$	35,727		$	46,841
NPAs / total outstanding loans		0.23	%		0.23	%		0.28		%		0.23	%		0.28		%
NPAs / total adjusted loans(9)		0.23	%		0.23	%		0.30		%		0.23	%		0.30		%
NPAs / total assets		0.16	%		0.16	%		0.19		%		0.16	%		0.19		%
ALLL / nonaccrual loans		358.39	%		353.37	%		324.90		%		358.39	%		324.90		%
ALLL/ nonperforming assets		334.62	%		333.87	%		310.44		%		334.62	%		310.44		%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Six Months Ended
	06/30/22			03/31/22			06/30/21			06/30/22			06/30/21
Past Due Detail (6)
Construction and land development	$	645		$	170		$	798		$	645		$	798
Commercial real estate - owner occupied		1,374			5,081			1,450			1,374			1,450
Commercial real estate - non-owner occupied		511			79			1,501			511			1,501
Multifamily real estate		—			124			156			—			156
Commercial & Industrial		2,581			1,382			948			2,581			948
Residential 1-4 Family - Commercial		1,944			827			710			1,944			710
Residential 1-4 Family - Consumer		594			5,890			764			594			764
Residential 1-4 Family - Revolving		1,368			1,157			919			1,368			919
Auto		1,841			1,508			1,333			1,841			1,333
Consumer		361			467			545			361			545
Other Commercial		11			1,270			375			11			375
Loans 30-59 days past due	$	11,230		$	17,955		$	9,499		$	11,230		$	9,499
Construction and land development	$	—		$	—		$	310		$	—		$	310
Commercial real estate - owner occupied		807			—			2,008			807			2,008
Commercial real estate - non-owner occupied		—			223			78			—			78
Commercial & Industrial		546			745			1,733			546			1,733
Residential 1-4 Family - Commercial		474			251			565			474			565
Residential 1-4 Family - Consumer		1,646			1,018			992			1,646			992
Residential 1-4 Family - Revolving		731			651			678			731			678
Auto		213			183			165			213			165
Consumer		210			201			297			210			297
Other Commercial		—			95			—			—			—
Loans 60-89 days past due	$	4,627		$	3,367		$	6,826		$	4,627		$	6,826
Past Due and still accruing	$	20,449		$	29,569		$	25,071		$	20,449		$	25,071
Past Due and still accruing / total loans		0.15	%		0.22	%		0.18	%		0.15	%		0.18	%
Troubled Debt Restructurings
Performing	$	10,662		$	12,157		$	13,053		$	10,662		$	13,053
Nonperforming		7,298			7,552			6,231			7,298			6,231
Total troubled debt restructurings	$	17,960		$	19,709		$	19,284		$	17,960		$	19,284
Alternative Performance Measures (non-GAAP)
Net interest income (FTE) (1)
Net interest income (GAAP)	$	138,767		$	130,931		$	140,548		$	269,698		$	275,446
FTE adjustment		3,577			3,336			3,144			6,912			6,197
Net interest income (FTE) (non-GAAP)	$	142,344		$	134,267		$	143,692		$	276,610		$	281,643
Noninterest income (GAAP)		38,286			30,153			28,466			68,439			59,451
Total revenue (FTE) (non-GAAP)	$	180,630		$	164,420		$	172,158		$	345,049		$	341,094
Average earning assets	$	17,646,470		$	17,885,018		$	17,868,938		$	17,765,085		$	17,781,005
Net interest margin		3.15	%		2.97	%		3.15	%		3.06	%		3.12	%
Net interest margin (FTE)		3.24	%		3.04	%		3.23	%		3.14	%		3.19	%
Tangible Assets (2)
Ending assets (GAAP)	$	19,661,799		$	19,782,430		$	19,989,356		$	19,661,799		$	19,989,356
Less: Ending goodwill		925,211			935,560			935,560			925,211			935,560
Less: Ending amortizable intangibles		31,621			40,273			49,917			31,621			49,917
Ending tangible assets (non-GAAP)	$	18,704,967		$	18,806,597		$	19,003,879		$	18,704,967		$	19,003,879
Tangible Common Equity (2)
Ending equity (GAAP)	$	2,391,476		$	2,498,335		$	2,747,597		$	2,391,476		$	2,747,597
Less: Ending goodwill		925,211			935,560			935,560			925,211			935,560
Less: Ending amortizable intangibles		31,621			40,273			49,917			31,621			49,917
Less: Perpetual preferred stock		166,357			166,357			166,357			166,357			166,357
Ending tangible common equity (non-GAAP)	$	1,268,287		$	1,356,145		$	1,595,763		$	1,268,287		$	1,595,763
Average equity (GAAP)	$	2,445,045		$	2,660,984		$	2,747,864		$	2,552,418		$	2,733,980
Less: Average goodwill		935,446			935,560			935,560			935,503			935,560
Less: Average amortizable intangibles		38,707			41,743			51,637			40,217			53,533
Less: Average perpetual preferred stock		166,356			166,356			166,356			166,356			166,356
Average tangible common equity (non-GAAP)	$	1,304,536		$	1,517,325		$	1,594,311		$	1,410,342		$	1,578,531
ROTCE (2)(3)
Net income available to common shareholders (GAAP)	$	59,259		$	40,723		$	82,417		$	99,982		$	135,639
Plus: Amortization of intangibles, tax effected		2,303			2,401			2,819			4,704			5,765
Net income available to common shareholders before amortization of intangibles (non-GAAP)	$	61,562		$	43,124		$	85,236		$	104,686		$	141,404
Return on average tangible common equity (ROTCE)		18.93	%		11.53	%		21.44	%		14.97	%		18.06	%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended											As of & For Six Months Ended
	06/30/22				03/31/22			06/30/21				06/30/22				06/30/21
Operating Measures (4)
Net income (GAAP)	$	62,226			$	43,690		$	85,384			$	105,916			$	141,573
Plus: Net loss related to balance sheet repositioning, net of tax		—				—			—				—				11,609
Less: (Loss) gain on sale of securities, net of tax		(2	)			—			—				(2	)			62
Less: Gain on sale of DHFB, net of tax		7,984				—			—				7,984				—
Plus: Branch closing and facility consolidation costs, net of tax		—				4,351			(17	)			4,351				713
Adjusted operating earnings (non-GAAP)		54,244				48,041			85,367				102,285				153,833
Less: Dividends on preferred stock		2,967				2,967			2,967				5,934				5,934
Adjusted operating earnings available to common shareholders (non-GAAP)	$	51,277			$	45,074		$	82,400			$	96,351			$	147,899
Noninterest expense (GAAP)	$	98,768			$	105,321		$	91,971			$	204,089			$	203,908
Less: Amortization of intangible assets		2,915				3,039			3,568				5,954				7,298
Less: Losses related to balance sheet repositioning		—				—			—				—				14,695
Less: Branch closing and facility consolidation costs		—				5,508			(22	)			5,508				902
Adjusted operating noninterest expense (non-GAAP)	$	95,853			$	96,774		$	88,425			$	192,627			$	181,013
Noninterest income (GAAP)	$	38,286			$	30,153		$	28,466			$	68,439			$	59,451
Less: (Loss) gain on sale of securities		(2	)			—			—				(2	)			78
Less: Gain on sale of DHFB		9,082				—			—				9,082				—
Adjusted operating noninterest income (non-GAAP)	$	29,206			$	30,153		$	28,466			$	59,359			$	59,373
Net interest income (FTE) (non-GAAP) (1)	$	142,344			$	134,267		$	143,692			$	276,610			$	281,643
Adjusted operating noninterest income (non-GAAP)		29,206				30,153			28,466				59,359				59,373
Total adjusted revenue (FTE) (non-GAAP) (1)	$	171,550			$	164,420		$	172,158			$	335,969			$	341,016
Efficiency ratio		55.78		%		65.38	%		54.42		%		60.36		%		60.89		%
Efficiency ratio (FTE) (1)		54.68		%		64.06	%		53.42		%		59.15		%		59.78		%
Adjusted operating efficiency ratio (FTE) (1)(7)		55.88		%		58.86	%		51.36		%		57.34		%		53.08		%
Operating ROTCE (2)(3)(4)
Adjusted operating earnings available to common shareholders (non-GAAP)	$	51,277			$	45,074		$	82,400			$	96,351			$	147,899
Plus: Amortization of intangibles, tax effected		2,303				2,401			2,819				4,704				5,765
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)	$	53,580			$	47,475		$	85,219			$	101,054			$	153,665
Average tangible common equity (non-GAAP)	$	1,304,536			$	1,517,325		$	1,594,311			$	1,410,342			$	1,578,531
Adjusted operating return on average tangible common equity (non-GAAP)		16.47		%		12.69	%		21.44		%		14.45		%		19.63		%
Pre-tax pre-provision adjusted operating earnings (8)
Net income (GAAP)	$	62,226			$	43,690		$	85,384			$	105,916			$	141,573
Plus: Provision for credit losses		3,559				2,800			(27,414	)			6,359				(41,037	)
Plus: Income tax expense		12,500				9,273			19,073				21,773				30,453
Plus: Net loss related to balance sheet repositioning		—				—			—				—				14,695
Less: (Loss) gain on sale of securities		(2	)			—			—				(2	)			78
Less: Gain on sale of DHFB		9,082				—			—				9,082				—
Plus: Branch closing and facility consolidation costs		—				5,508			(22	)			5,508				902
Pre-tax pre-provision adjusted operating earnings (non-GAAP)	$	69,205			$	61,271		$	77,021			$	130,476			$	146,508
Less: Dividends on preferred stock		2,967				2,967			2,967				5,934				5,934
Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP)	$	66,238			$	58,304		$	74,054			$	124,542			$	140,574
Weighted average common shares outstanding, diluted		74,849,871				75,556,127			78,843,724				75,201,326				78,863,859
Pre-tax pre-provision earnings per common share, diluted	$	0.88			$	0.77		$	0.94			$	1.66			$	1.78
Adjusted Loans (9)
Loans held for investment (net of deferred fees and costs) (GAAP)	$	13,655,408			$	13,459,349		$	13,697,929			$	13,655,408			$	13,697,929
Less: PPP adjustments (net of deferred fees and costs)		21,749				67,444			859,386				21,749				859,386
Total adjusted loans (non-GAAP)	$	13,633,659			$	13,391,905		$	12,838,543			$	13,633,659			$	12,838,543
Average loans held for investment (net of deferred fees and costs) (GAAP)	$	13,525,529			$	13,300,789		$	13,971,939			$	13,413,780			$	14,017,777
Less: Average PPP adjustments (net of deferred fees and costs)		43,391				103,041			1,187,641				73,052				1,248,147
Total adjusted average loans (non-GAAP)	$	13,482,138			$	13,197,748		$	12,784,298			$	13,340,728			$	12,769,630

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Six Months Ended
	06/30/22			03/31/22			06/30/21			06/30/22			06/30/21
Mortgage Origination Held for Sale Volume
Refinance Volume	$	14,916		$	33,201		$	73,330		$	48,116		$	192,248
Purchase Volume		84,551			58,295			88,747			142,846			156,704
Total Mortgage loan originations held for sale	$	99,467		$	91,496		$	162,077		$	190,962		$	348,952
% of originations held for sale that are refinances		15.0	%		36.3	%		45.2	%		25.2	%		55.1	%
Wealth
Assets under management (AUM)	$	4,415,537		$	6,519,974		$	6,396,010		$	4,415,537		$	6,396,010
Other Data
End of period full-time employees		1,856			1,853			1,884			1,856			1,884
Number of full-service branches		114			114			129			114			129
Number of automatic transaction machines (ATMs)		131			132			149			131			149

_______________
(1)   These are non-GAAP financial measures. Net interest income (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.
(3)   These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and 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 the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance associated with branch closing and corporate expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
(5)   All ratios at June 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.
(6)   These balances reflect the impact of the CARES Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.
(7)   The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gain on the sale of DHFB, gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), as well as branch closing and facility consolidation costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
(8)   This is a non-GAAP financial measure. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
(9)   These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic growth. The Company also believes that the related non-GAAP financial measures of past due loans still accruing interest as a percentage of total loans held for investment (net of deferred fees and costs), excluding PPP, are useful to investors as loans originated under the PPP carry a Small Business Administration (“SBA”) guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)

	June 30,				December 31,				June 30,
	2022				2021				2021
ASSETS	(unaudited)					(audited)				(unaudited)
Cash and cash equivalents:
Cash and due from banks	$	158,902			$	180,963			$	268,682
Interest-bearing deposits in other banks		82,086				618,714				593,271
Federal funds sold		388				2,824				3,217
Total cash and cash equivalents		241,376				802,501				865,170
Securities available for sale, at fair value		2,951,421				3,481,650				2,873,405
Securities held to maturity, at carrying value		780,749				628,000				541,439
Restricted stock, at cost		87,908				76,825				76,825
Loans held for sale, at fair value		15,866				20,861				32,726
Loans held for investment, net of deferred fees and costs		13,655,408				13,195,843				13,697,929
Less: allowance for loan and lease losses		104,184				99,787				118,261
Total loans held for investment, net		13,551,224				13,096,056				13,579,668
Premises and equipment, net		128,661				134,808				161,114
Goodwill		925,211				935,560				935,560
Amortizable intangibles, net		31,621				43,312				49,917
Bank owned life insurance		436,703				431,517				427,727
Other assets		511,059				413,706				445,805
Total assets	$	19,661,799			$	20,064,796			$	19,989,356
LIABILITIES
Noninterest-bearing demand deposits	$	5,361,538			$	5,207,324			$	5,222,572
Interest-bearing deposits		10,767,097				11,403,744				11,436,647
Total deposits		16,128,635				16,611,068				16,659,219
Securities sold under agreements to repurchase		118,658				117,870				89,749
Other short-term borrowings		290,000				—				—
Long-term borrowings		389,290				388,724				290,330
Other liabilities		343,740				237,063				202,461
Total liabilities		17,270,323				17,354,725				17,241,759
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $10.00 par value		173				173				173
Common stock, $1.33 par value		98,822				100,101				103,091
Additional paid-in capital		1,767,063				1,807,368				1,881,395
Retained earnings		841,701				783,794				709,866
Accumulated other comprehensive income (loss)		(316,283	)			18,635				53,072
Total stockholders' equity		2,391,476				2,710,071				2,747,597
Total liabilities and stockholders' equity	$	19,661,799			$	20,064,796			$	19,989,356
Common shares outstanding		74,688,314				75,663,648				77,928,948
Common shares authorized		200,000,000				200,000,000				200,000,000
Preferred shares outstanding		17,250				17,250				17,250
Preferred shares authorized		500,000				500,000				500,000

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except share data)

	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
	2022				2022				2021				2022				2021
Interest and dividend income:
Interest and fees on loans	$	123,266			$	114,200			$	130,570			$	237,466			$	258,576
Interest on deposits in other banks		157				131				86				288				163
Interest and dividends on securities:
Taxable		14,695				13,666				10,519				28,361				20,872
Nontaxable		10,637				10,459				9,677				21,097				18,914
Total interest and dividend income		148,755				138,456				150,852				287,212				298,525
Interest expense:
Interest on deposits		6,097				4,483				7,238				10,580				16,366
Interest on short-term borrowings		555				21				21				576				69
Interest on long-term borrowings		3,336				3,021				3,045				6,358				6,644
Total interest expense		9,988				7,525				10,304				17,514				23,079
Net interest income		138,767				130,931				140,548				269,698				275,446
Provision for credit losses		3,559				2,800				(27,414	)			6,359				(41,037	)
Net interest income after provision for credit losses		135,208				128,131				167,962				263,339				316,483
Noninterest income:
Service charges on deposit accounts		8,040				7,596				6,607				15,637				12,116
Other service charges, commissions and fees		1,709				1,655				1,735				3,364				3,436
Interchange fees		2,268				1,810				2,203				4,078				4,050
Fiduciary and asset management fees		6,939				7,255				6,819				14,194				13,294
Mortgage banking income		2,200				3,117				4,619				5,317				12,874
Bank owned life insurance income		2,716				2,697				3,209				5,413				5,475
Loan-related interest rate swap fees		2,600				3,860				1,321				6,460				3,075
Other operating income		11,814				2,163				1,953				13,976				5,131
Total noninterest income		38,286				30,153				28,466				68,439				59,451
Noninterest expenses:
Salaries and benefits		55,305				58,298				50,766				113,603				103,426
Occupancy expenses		6,395				6,883				7,140				13,278				14,454
Furniture and equipment expenses		3,590				3,597				3,911				7,187				7,880
Technology and data processing		7,862				7,796				7,219				15,658				14,123
Professional services		4,680				4,090				4,408				8,770				9,369
Marketing and advertising expense		2,502				2,163				2,738				4,665				4,782
FDIC assessment premiums and other insurance		2,765				2,485				2,319				5,250				4,626
Franchise and other taxes		4,500				4,499				4,435				8,999				8,871
Loan-related expenses		1,867				1,776				1,909				3,643				3,786
Amortization of intangible assets		2,915				3,039				3,568				5,954				7,298
Loss on debt extinguishment		—				—				—				—				14,695
Other expenses		6,387				10,695				3,558				17,082				10,598
Total noninterest expenses		98,768				105,321				91,971				204,089				203,908
Income before income taxes		74,726				52,963				104,457				127,689				172,026
Income tax expense		12,500				9,273				19,073				21,773				30,453
Net income	$	62,226			$	43,690			$	85,384				105,916				141,573
Dividends on preferred stock		2,967				2,967				2,967				5,934				5,934
Net income available to common shareholders	$	59,259			$	40,723			$	82,417			$	99,982			$	135,639
Basic earnings per common share	$	0.79			$	0.54			$	1.05			$	1.33			$	1.72
Diluted earnings per common share	$	0.79			$	0.54			$	1.05			$	1.33			$	1.72

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED)

	For the Quarter Ended
	June 30, 2022										March 31, 2022
	Average Balance				Interest Income / Expense (1)			Yield / Rate (1)(2)			Average Balance				Interest Income / Expense (1)			Yield / Rate (1)(2)
	(Dollars in thousands)
Assets:
Securities:
Taxable	$	2,322,024			$	14,695		2.54	%		$	2,617,156			$	13,666		2.12	%
Tax-exempt		1,608,888				13,465		3.36	%			1,581,426				13,240		3.40	%
Total securities		3,930,912				28,160		2.87	%			4,198,582				26,906		2.60	%
Loans, net (3)		13,525,529				123,764		3.67	%			13,300,789				114,602		3.49	%
Other earning assets		190,029				408		0.86	%			385,647				284		0.30	%
Total earning assets	$	17,646,470			$	152,332		3.46	%		$	17,885,018			$	141,792		3.22	%
Allowance for loan and lease losses		(103,211	)									(100,342	)
Total non-earning assets		2,176,143										2,135,692
Total assets	$	19,719,402									$	19,920,368
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	7,987,888			$	3,082		0.15	%		$	8,376,766			$	1,324		0.06	%
Regular savings		1,169,199				55		0.02	%			1,142,854				55		0.02	%
Time deposits		1,667,378				2,960		0.71	%			1,766,657				3,104		0.71	%
Total interest-bearing deposits		10,824,465				6,097		0.23	%			11,286,277				4,483		0.16	%
Other borrowings		765,886				3,891		2.04	%			511,722				3,042		2.41	%
Total interest-bearing liabilities	$	11,590,351			$	9,988		0.35	%		$	11,797,999			$	7,525		0.26	%
Noninterest-bearing liabilities:
Demand deposits		5,366,591										5,228,098
Other liabilities		317,415										233,287
Total liabilities	$	17,274,357									$	17,259,384
Stockholders' equity		2,445,045										2,660,984
Total liabilities and stockholders' equity	$	19,719,402									$	19,920,368
Net interest income					$	142,344									$	134,267
Interest rate spread								3.11	%									2.96	%
Cost of funds								0.22	%									0.18	%
Net interest margin								3.24	%									3.04	%

_______________
⁽¹⁾   Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.
⁽²⁾   Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.
⁽³⁾   Nonaccrual loans are included in average loans outstanding.

Contact:		Robert M. Gorman - (804) 523-7828 Executive Vice President / Chief Financial Officer

FAQ

What were Atlantic Union Bankshares' earnings results for Q2 2022?

Atlantic Union Bankshares reported a net income of $59.3 million for Q2 2022, with earnings per share at $0.79.

How did the net interest margin perform in Q2 2022 for AUB?

The net interest margin for Atlantic Union Bankshares increased to 3.15% in Q2 2022.

What is the current status of Atlantic Union's share repurchase program?

The share repurchase program authorized up to $100 million, with approximately $51.8 million remaining available for buybacks as of June 30, 2022.

What was the loan growth figure reported for Q2 2022 by Atlantic Union Bankshares?

Atlantic Union reported upper single-digit annualized loan growth for Q2 2022.

How much did total deposits decrease in Q2 2022 for Atlantic Union Bankshares?

Total deposits decreased by $355.6 million or approximately 8.7% from Q1 2022.