STOCK TITAN
  1. Home
  2. News
  3. AUB

Atlantic Union Bankshares Reports Second Quarter Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Atlantic Union Bankshares Corporation (Nasdaq: AUB) reported Q2 2021 net income of $82.4 million, resulting in earnings per share of $1.05. For the first half of 2021, net income reached $135.6 million with EPS of $1.72. The company noted modest loan growth and strong credit quality. Net interest income rose to $140.5 million, alongside a decrease in nonperforming assets to 0.28% of total loans. The bank repurchased 1.1 million shares under a $125 million buyback program. The allowance for credit losses was $128.3 million, reflecting improved economic conditions.

Positive
  • Net income of $82.4 million for Q2 2021.
  • Earnings per share (EPS) of $1.05 for Q2 2021.
  • Increase in net interest income to $140.5 million.
  • Decrease in nonperforming assets to 0.28% of total loans.
  • Share repurchase program of $125 million with $42.3 million spent on 1.1 million shares.
Negative
  • Noninterest income decreased by $2.5 million to $28.5 million.
  • Mortgage banking income declined by $3.6 million due to lower origination volumes.

RICHMOND, Va., July 22, 2021 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $82.4 million and basic and diluted earnings per common share of $1.05 for the second quarter ended June 30, 2021. Pre-tax pre-provision adjusted operating earnings(1) were $77.0 million for the second quarter ended June 30, 2021.

Net income available to common shareholders was $135.6 million and basic and diluted earnings per common share of $1.72 for the six months ended June 30, 2021. Adjusted operating earnings available to common shareholders(1) were $147.2 million, diluted operating earnings per common share(1) were $1.87, and pre-tax pre-provision adjusted operating earnings(1) were $145.6 million for the six months ended June 30, 2021.

“Atlantic Union delivered solid financial results in the second quarter reflective of steadily improving economic conditions as the headwinds from COVID-19 continued to subside,” said John C. Asbury, president and chief executive officer of Atlantic Union. “During the second quarter, loan balances grew modestly, credit quality remained pristine and our capital and liquidity positions continue to be strong.

“As we head into the second half of 2021, we expect that loan growth will accelerate as economic activity picks up over the next several quarters and credit losses will remain historically low due to the positive economic outlook. 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.”

Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”)

The Company has participated in the SBA PPP under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act (“PPP Round One”), which was intended to provide economic relief to small businesses that have been adversely impacted by the COVID-19 global pandemic (“COVID-19”). The Company processed over 11,000 PPP loans totaling $1.7 billion in 2020 pursuant to the CARES Act. The loans carry a 1% interest rate. As of June 30, 2021, PPP Round One loans have a recorded investment of $337.7 million and unamortized deferred fees of $2.0 million.

Certain provisions of the CARES Act, including additional PPP funding, were extended during December 2020 and expired on May 31, 2021 (“PPP Round Two”). The Company processed over 5,000 loans pursuant to PPP Round Two, with a recorded investment of $546.1 million and unamortized deferred fees of $22.4 million as of June 30, 2021. The loans carry a 1% interest rate.

In addition to an insignificant amount of PPP loan pay offs, the Company has processed $1.3 billion(*) of loan forgiveness on 9,800 PPP loans(*) through June 30, 2021. In the second quarter of 2021, 4,500 PPP Round One(*) loans totaling $696.0 million(*) were processed for forgiveness and 500 PPP Round Two loans(*) totaling $9.0 million(*) were processed for forgiveness.

Share Repurchase Program

On May 4, 2021, the Company’s Board of Directors authorized a share repurchase program (or the “Repurchase Program”) to purchase up to $125 million worth of the Company’s common stock 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 Exchange Act. The Repurchase Program expires on June 30, 2022 and replaced the prior repurchase program that was due to expire on June 30, 2021. Under the Repurchase Program, 1.1 million shares were repurchased for $42.3 million in the aggregate during the quarter ended June 30, 2021. As of June 30, 2021, the Company has remaining repurchase authorization of $82.7 million available under the Repurchase Program.
(*) PPP values are rounded and approximate values

NET INTEREST INCOME

For the second quarter of 2021, net interest income was $140.5 million, an increase from $134.9 million reported in the first quarter of 2021. Net interest income (FTE)(1) was $143.7 million in the second quarter of 2021, an increase of $5.7 million from the first quarter of 2021. The increases in the net interest income and net interest income (FTE) were primarily driven by the increase in PPP loan accretion included in interest income to $11.5 million in the second quarter of 2021 from $7.8 million in the first quarter of 2021, an increase of $176.8 million in average earning assets and the higher calendar day count in the second quarter. The second quarter net interest margin increased 6 basis points to 3.15% from 3.09% in the previous quarter, while the net interest margin (FTE)(1)  increased 7 basis points to 3.23% from 3.16% during the same period as a result of stable earning asset yields compared to the first quarter and a 7 basis point decline in cost of funds.

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting declined $167,000 from the prior quarter to $3.9 million for the quarter ended June 30, 2021. The first and second quarters of 2021 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

            
    Deposit     
 Loan Accretion Borrowings   
 Accretion (Amortization) Amortization Total
For the quarter ended March 31, 2021$4,287 20  (198) $4,109
For the quarter ended June 30, 2021 4,132 12  (202)  3,942
For the remaining six months of 2021 (estimated) 3,607 (17) (407)  3,183
For the years ending (estimated):         
2022 6,166 (43) (829)  5,294
2023 4,594 (32) (852)  3,710
2024 3,756 (4) (877)  2,875
2025 2,877 (1) (900)  1,976
2026 2,298 —  (926)  1,372
Thereafter 10,374 —  (8,945)  1,429
Total remaining acquisition accounting fair value adjustments at June 30, 2021$33,672 (97) (13,736) $19,839

ASSET QUALITY

Overview
During the second quarter of 2021, nonperforming assets (“NPAs”) as a percentage of loans decreased slightly and remained low at 0.28% at June 30, 2021. Accruing past due loan levels as a percentage of total loans held for investment at June 30, 2021 decreased 7 basis points as compared to March 31, 2021 and were 10 basis points lower than accruing past due loan levels at June 30, 2020. Net charge-off levels remained low at less than 0.01% of average loans for the second quarter 2021, which is a 3 basis point decrease from the first quarter of 2021, and a 9 basis point decrease from the second quarter of 2020. The allowance for credit losses (“ACL”) totaled $128.3 million at June 30, 2021, a $27.5 million decrease from the prior quarter due to lower expected losses than previously estimated and improvements in the macroeconomic outlook.

Nonperforming Assets
At June 30, 2021, NPAs totaled $38.1 million, a decrease of $6.1 million from March 31, 2021. NPAs as a percentage of total outstanding loans at June 30, 2021 were 0.28%, a decrease of 3 basis points from 0.31% at March 31, 2021. Excluding the impact of the PPP loans(1), NPAs as a percentage of total adjusted loans held for investment were 0.30% at June 30, 2021, a decrease of 5 basis points from 0.35% at March 31, 2021.

The following table shows a summary of nonperforming asset balances at the quarter ended (dollars in thousands):

               
 June 30,     March 31,     December 31,     September 30,     June 30, 
 2021 2021 2020 2020 2020
Nonaccrual loans$36,399 $41,866 $42,448 $39,023 $39,624
Foreclosed properties 1,696  2,344  2,773  4,159  4,397
Total nonperforming assets$38,095 $44,210 $45,221 $43,182 $44,021

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, 
 2021 2021 2020 2020 2020
Beginning Balance$41,866  $42,448  $39,023  $39,624  $44,022 
Net customer payments (9,307)  (4,133)  (4,640)  (2,803)  (6,524)
Additions 4,162   3,821   8,211   2,790   3,206 
Charge-offs (183)  (270)  (146)  (588)  (1,088)
Loans returning to accruing status (153)  —   —   —   8 
Transfers to foreclosed property 14   —   —   —   — 
Ending Balance$36,399  $41,866  $42,448  $39,023  $39,624 

The following table shows the activity in foreclosed properties for the quarter ended (dollars in thousands):

               
 June 30,     March 31,     December 31,     September 30,     June 30, 
 2021 2021 2020 2020 2020
Beginning Balance$2,344  $2,773  $4,159  $4,397  $4,444 
Additions of foreclosed property 14   —   —   —   — 
Valuation adjustments —   —   (35)  —   — 
Proceeds from sales (572)  (419)  (1,357)  (254)  (55)
Gains (losses) from sales (90)  (10)  6   16   8 
Ending Balance$1,696  $2,344  $2,773  $4,159  $4,397 

Past Due Loans
Past due loans still accruing interest totaled $25.1 million or 0.18% of total loans held for investment at June 30, 2021, compared to $36.0 million or 0.25% of total loans held for investment at March 31, 2021, and $40.5 million or 0.28% of total loans held for investment at June 30, 2020. Excluding the impact of the PPP loans(1), past due loans still accruing interest were 0.20% of total adjusted loans held for investment at June 30, 2021, compared to 0.28% of total adjusted loans held for investment at March 31, 2021, and 0.32% of total adjusted loans held for investment at June 30, 2020. Of the total past due loans still accruing interest, $8.7 million or 0.06% of total loans held for investment were loans past due 90 days or more at June 30, 2021, compared to $9.8 million or 0.07% of total loans held for investment at March 31, 2021, and $19.3 million or 0.13% of total loans held for investment at June 30, 2020.

Net Charge-offs
Net charge-offs totaled $69,000 or less than 0.01% of total average loans (annualized) for the quarter ended June 30, 2021, compared to $1.2 million or 0.03% for the first quarter of 2021, and $3.3 million or 0.09% for the second quarter of 2020. Excluding the impact of the PPP loans(1), net charge-offs for the second quarter of 2021 were less than 0.01% of total adjusted average loans on an annualized basis, compared to 0.04% for the first quarter of 2021, and 0.10% for the second quarter of 2020.

Provision for Credit Losses
For the quarter ended June 30, 2021, the Company recorded a negative provision for credit losses of $27.4 million, compared to a negative provision of credit losses of $13.6 million in the previous quarter, and which decreased $61.6 million compared to the provision for credit losses of $34.2 million recorded during the same quarter in 2020. The provision for credit losses for the second quarter of 2021 reflected a negative provision of $24.6 million in provision for loan losses and a negative provision of $2.8 million for unfunded commitments. The decrease in the provision for credit losses as compared to the same quarter in 2020 was driven by the benign credit impacts since the pandemic began, the significant recovery in the economy since last year, as well as the improvement in the economic forecast utilized in estimating the ACL as of June 30, 2021.

Allowance for Credit Losses
At June 30, 2021, the ACL was $128.3 million and included an allowance for loan and lease losses (“ALLL”) of $118.3 million and a reserve for unfunded commitments (“RUC”) of $10.0 million. The ACL at June 30, 2021 decreased $27.5 million from March 31, 2021, due to lower expected losses than previously estimated as a result of benign credit quality metrics to date and an improved economic outlook due to the roll-out of COVID-19 vaccines and the impact of government stimulus inclusive of PPP loan funding. The ACL as a percentage of total loans was 0.94% at June 30, 2021 and 1.09% at March 31, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ACL as a percentage of total adjusted loans at June 30, 2021 decreased 22 basis points to 1.00% from the prior quarter.

At June 30, 2021, the ALLL decreased $24.7 million and the RUC decreased $2.8 million from March 31, 2021. The ALLL as a percentage of the total loan portfolio was 0.86% at June 30, 2021 and 1.00% at March 31, 2021. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ALLL as a percentage of total adjusted loans decreased 20 basis points from the prior quarter to 0.92% at June 30, 2021. The ratio of the ALLL to nonaccrual loans was 324.9% at June 30, 2021, compared to 341.4% at March 31, 2021.

NONINTEREST INCOME

Noninterest income decreased $2.5 million to $28.5 million for the quarter ended June 30, 2021 from $31.0 million in the prior quarter, primarily driven by a $3.6 million decline in mortgage banking income driven by lower mortgage origination volumes and a decline in loan-related interest rate swap income of $433,000 due to lower transaction volumes. In addition, there was a decline in unrealized gains on equity method investments of approximately $1.1 million during the second quarter of 2021. These quarterly declines were partially offset by increases in several other non-interest income categories including, an increase in service charges on deposit accounts of $1.1 million related to service charges on deposit accounts, higher debit card interchange fees of $356,000, an increase in bank owned life insurance income of $944,000 primarily due to life insurance proceeds received during the quarter, and an increase in fiduciary and asset management fees of $344,000 due to growth in assets under management.  

NONINTEREST EXPENSE

Noninterest expense decreased $19.9 million to $92.0 million for the quarter ended June 30, 2021 from $111.9 million in the prior quarter. The decreases in non-interest expense was primarily driven by the recognition of debt extinguishment costs of $14.7 million during the first quarter of 2021, resulting from the prepayment of $200.0 million in long-term FHLB advances. Salaries and benefits declined by approximately $1.9 million primarily due to decreases in payroll related taxes, which are typically seasonally higher in the first quarter. Professional services declined $552,000 primarily due to legal fees and costs related to strategic projects recognized in the first quarter of 2021. In addition, noninterest expense decreased $1.3 million due to costs related to the Company’s closure of five branches in February 2021 recognized during the first quarter of 2021. OREO and related credit expenses declined from the first quarter of 2021 by approximately $795,000, primarily driven by gains of $930,000 on the sale of closed branches during the second quarter. These net reductions were offset by an increase of $694,000 in marketing and advertising expenses and an increase in technology and data processing of $315,000. Noninterest expense for the second quarter of 2021 also included approximately $200,000 in costs related to the Company’s response to the COVID-19 pandemic and approximately $250,000 in expenses related to PPP loan forgiveness processing incurred during the second quarter of 2021.

INCOME TAXES

The effective tax rate for the three months ended June 30, 2021 was 18.3%, compared to 16.8% for the three months ended March 31, 2021. The increase in the effective tax rate is primarily due to changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At June 30, 2021, total assets were $20.0 billion, an increase of $134.7 million or approximately 2.7% (annualized) from March 31, 2021, and an increase of $237.0 million or approximately 1.2% from June 30, 2020. The increase in assets from the prior quarter was primarily driven by an increase in cash and cash equivalents, as well as net growth in the investment securities portfolio. The increase in assets from the prior quarter was partially offset by a decrease in loans due to PPP loan forgiveness. The increase in assets from the prior year was primarily driven by net growth in the investment securities portfolio and organic loan growth, partially offset by a decrease in loans due to PPP loan forgiveness.

At June 30, 2021, loans held for investment (net of deferred fees and costs) were $13.7 billion, including $859.4 million in PPP loans, a decrease of $574.4 million or 16.1% (annualized) from March 31, 2021, and average loans decreased $92.2 million or 2.6% (annualized) from the prior quarter. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) increased $79.0 million or 2.5% (annualized) from March 31, 2021, and average loans increased $29.5 million or 0.9% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $610.7 million or 4.3% from June 30, 2020, while quarterly average loans increased $14.2 million or 0.1% from the same period in the prior year. Excluding the effects of the PPP(1), loans held for investment (net of deferred fees and costs) at June 30, 2021 increased $128.6 million or 1.0% from the same period in the prior year, and quarterly average loans during the second quarter of 2021 increased $100.5 million or 0.8% from the same period in the prior year. In addition to an insignificant amount of PPP loan payoffs, the Company processed approximately $705.0 million of loan forgiveness on approximately 5,000 PPP loans during the second quarter of 2021, in addition to $165.0 million of loan forgiveness on approximately 2,500 PPP loans during the first quarter of 2021.

At June 30, 2021, total deposits were $16.7 billion, an increase of $361.2 million or approximately 8.9% (annualized) from March 31, 2021, and average deposits increased $425.9 million or 10.6% (annualized) from the prior quarter. Deposits increased $1.1 billion or 6.8% from June 30, 2020, and quarterly average deposits increased $1.5 billion or 10.3% from the same period in the prior year. The increases in deposits from the prior quarter and prior year were primarily due to the impact of PPP loan related deposits and government stimulus actions.

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

       
 June 30,     March 31,     June 30,  
 2021 2020 2020 
Common equity Tier 1 capital ratio (2)10.56%10.56%9.88%
Tier 1 capital ratio (2)11.67%11.70%11.03%
Total capital ratio (2)14.05%14.25%13.81%
Leverage ratio (Tier 1 capital to average assets) (2)9.20%9.18%8.82%
Common equity to total assets12.91%12.81%12.41%
Tangible common equity to tangible assets (1)8.40%8.24%7.74%

_____________________________
(2) All ratios at June 30, 2021 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 second quarter of 2021, the Company declared and paid cash dividends of $0.28 per common share, an increase of $0.03, or approximately 12.0%, compared to both the first quarter of 2021 and the second quarter of 2020. During the second quarter of 2021, the Company also 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).

On May 4, 2021, the Company’s Board of Directors authorized the Repurchase Program to purchase up to $125 million worth of the Company’s common stock 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 Exchange Act. The Repurchase Program expires on June 30, 2022 and replaced the prior repurchase program that was due to expire on June 30, 2021. As part of the Repurchase Program, 1.1 million shares (or $42.3 million) were repurchased during the quarter ended June 30, 2021. As of June 30, 2021, the Company is authorized to repurchase approximately $82.7 million of the Company’s common stock.

_____________________________
(1) These are financial measures not calculated in accordance with GAAP. For a reconciliation of these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

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 129 branches and approximately 150 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; Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour, & Brown, Inc., which provide investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

SECOND QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for analysts on Thursday, July 22, 2021 at 9:00 a.m. Eastern Time during which management will review the second quarter 2021 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (866) 220-4170; international callers wishing to participate may do so by dialing (864) 663-5235. The conference ID number is 2240959. Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/e3ix8xvr.

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, 2021, 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, including without limitation, statements made in Mr. Asbury’s quotes are statements that include, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Such forward-looking statements are based on various 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 accompanied by words that convey projected future events or outcomes 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 results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, or achievements 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:

  • changes in interest rates;
  • 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, including as a result of COVID-19;
  • 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;
  • the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;
  • real estate values in the Bank’s lending area;
  • an insufficient ACL;
  • changes in accounting principles;
  • 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 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 COVID-19, 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, including the impact of the CARES Act, as amended by the CAA, and other legislative and regulatory reactions to COVID-19;
  • potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to COVID-19, including, among other things, the CARES Act, as amended by the CAA;
  • the effects of changes in federal, state or local tax laws and regulations;
  • monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
  • 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, 2020 and related disclosures in other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the 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 this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

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

               
 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21    03/31/21    06/30/20 06/30/21 06/30/20
Results of Operations(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Interest and dividend income$150,852  $147,673  $162,867  $298,525  $334,193 
Interest expense10,304  12,775  25,562  23,079  61,880 
Net interest income140,548  134,898  137,305  275,446  272,313 
Provision for credit losses(27,414) (13,624) 34,200  (41,037) 94,396 
Net interest income after provision for credit losses167,962  148,522  103,105  316,483  177,917 
Noninterest income28,466  30,985  35,932  59,451  64,838 
Noninterest expenses91,971  111,937  102,814  203,908  198,459 
Income before income taxes104,457  67,570  36,223  172,026  44,296 
Income tax expense19,073  11,381  5,514  30,453  6,498 
Net income85,384  56,189  30,709  141,573  37,798 
Dividends on preferred stock2,967  2,967  —  5,934  — 
Net income available to common shareholders$82,417  $53,222  $30,709  $135,639  $37,798 
               
Interest earned on earning assets (FTE) (1)$153,996  $150,726  $165,672  $304,722  $339,755 
Net interest income (FTE) (1)143,692  137,951  140,110  281,643  277,875 
Total revenue (FTE) (1)172,158  168,936  176,042  341,094  342,713 
Pre-tax pre-provision adjusted operating earnings (8)77,043  68,563  70,390  145,606  138,492 
               
Key Ratios              
Earnings per common share, diluted$1.05  $0.67  $0.39  $1.72  $0.48 
Return on average assets (ROA)1.72%  1.16%  0.64% 1.44%  0.41%
Return on average equity (ROE)12.46%  8.38%  4.96%  10.44%  3.06%
Return on average tangible common equity (ROTCE) (2) (3)21.44%  14.58%  9.46%  18.06%  6.13%
Efficiency ratio54.42%  67.48%  59.35%  60.89%  58.86%
Net interest margin3.15%  3.09%  3.23%  3.12%  3.35%
Net interest margin (FTE) (1)3.23%  3.16%  3.29%  3.19%  3.42%
Yields on earning assets (FTE) (1)3.46%  3.46%  3.90%  3.46%  4.18%
Cost of interest-bearing liabilities0.35%  0.43%  0.84%  0.39%  1.03%
Cost of deposits0.18%  0.23%  0.53%  0.20%  0.68%
Cost of funds0.23%  0.30%  0.61%  0.27%  0.76%
               
Operating Measures (4)              
Adjusted operating earnings$85,384  $67,736  $30,682  $153,120  $37,640 
Adjusted operating earnings available to common shareholders82,417  64,769  30,682  147,186  37,640 
Adjusted operating earnings per common share, diluted$1.05  $0.82  $0.39  $1.87  $0.48 
Adjusted operating ROA1.72%  1.40%  0.64%  1.56%  0.41%
Adjusted operating ROE12.46%  10.10%  4.96%  11.29%  3.04%
Adjusted operating ROTCE (2) (3)21.44%  17.58%  9.46%  19.54%  6.11%
Adjusted operating efficiency ratio (FTE) (1)(7)51.35%  55.38%  53.28%  53.34%  54.04%
               
Per Share Data              
Earnings per common share, basic$1.05  $0.67  $0.39  $1.72  $0.48 
Earnings per common share, diluted1.05  0.67  0.39  1.72  0.48 
Cash dividends paid per common share0.28  0.25  0.25  0.53  0.50 
Market value per share36.22  38.36  23.16  36.22  23.16 
Book value per common share33.30  32.37  31.32  33.30  31.32 
Tangible book value per common share (2)20.59  19.78  18.54  20.59  18.54 
Price to earnings ratio, diluted8.60  14.12  14.77  10.44  23.99 
Price to book value per common share ratio1.09  1.19  0.74  1.09  0.74 
Price to tangible book value per common share ratio (2)1.76  1.94  1.25  1.76  1.25 
Weighted average common shares outstanding, basic78,819,697  78,863,468  78,711,765  78,841,462  79,001,058 
Weighted average common shares outstanding, diluted78,843,724  78,884,235  78,722,690  78,863,859  79,020,036 
Common shares outstanding at end of period77,928,948  79,006,331  78,713,056  77,928,948  78,713,056 


                
 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21    03/31/21    06/30/20 06/30/21
 06/30/20
Capital Ratios(unaudited) (unaudited) (unaudited) (unaudited)
  (unaudited)
Common equity Tier 1 capital ratio (5)10.56% 10.56% 9.88% 10.56%  9.88%
Tier 1 capital ratio (5)11.67%  11.70%  11.03%  11.67%   11.03%
Total capital ratio (5)14.05%  14.25%  13.81%  14.05%   13.81%
Leverage ratio (Tier 1 capital to average assets) (5)9.20%  9.18%  8.82%  9.20%   8.82%
Common equity to total assets12.91%  12.81%  12.41%  12.91%   12.41%
Tangible common equity to tangible assets (2)8.40%  8.24%  7.74%  8.40%   7.74%
                
Financial Condition               
Assets$19,989,356  $19,854,612  $19,752,317  $19,989,356  $19,752,317 
Loans held for investment, net13,697,929  14,272,280  14,308,646  13,697,929   14,308,646 
Securities3,491,669  3,317,442  2,672,557  3,491,669   2,672,557 
Earning Assets17,824,283  17,889,174  17,680,876  17,824,283   17,680,876 
Goodwill935,560  935,560  935,560  935,560   935,560 
Amortizable intangibles, net49,917  53,471  65,105  49,917   65,105 
Deposits16,659,219  16,298,017  15,605,139  16,659,219   15,605,139 
Borrowings380,079  563,600  1,125,030  380,079   1,125,030 
Stockholders' equity2,747,597  2,709,732  2,618,226  2,747,597   2,618,226 
Tangible common equity (2)1,595,763  1,554,344  1,451,197  1,595,763   1,451,197 
                
Loans held for investment, net of deferred fees and costs               
Construction and land development$838,722  $884,303  $1,247,939  $838,722  $1,247,939 
Commercial real estate - owner occupied2,069,658  2,083,155  2,067,087  2,069,658   2,067,087 
Commercial real estate - non-owner occupied3,712,607  3,671,471  3,455,125  3,712,607   3,455,125 
Multifamily real estate860,081  842,906  717,719  860,081   717,719 
Commercial & Industrial2,990,622  3,599,884  3,555,971  2,990,622   3,555,971 
Residential 1-4 Family - Commercial637,485  658,051  715,384  637,485   715,384 
Residential 1-4 Family - Consumer823,355  816,916  841,051  823,355   841,051 
Residential 1-4 Family - Revolving559,014  563,786  627,765  559,014   627,765 
Auto411,073  406,349  380,053  411,073   380,053 
Consumer195,036  215,711  311,362  195,036   311,362 
Other Commercial600,276  529,748  389,190  600,276   389,190 
Total loans held for investment$13,697,929  $14,272,280  $14,308,646  $13,697,929  $14,308,646 
                
Deposits               
NOW accounts$3,777,540  $3,612,135  $3,618,523  $3,777,540  $3,618,523 
Money market accounts4,450,724  4,244,092  4,158,325  4,450,724   4,158,325 
Savings accounts1,032,171  991,418  824,164  1,032,171   824,164 
Time deposits of $250,000 and over566,180  619,040  689,693  566,180   689,693 
Other time deposits1,610,032  1,764,933  1,968,474  1,610,032   1,968,474 
Time deposits2,176,212  2,383,973  2,658,167  2,176,212   2,658,167 
Total interest-bearing deposits$11,436,647  $11,231,618  $11,259,179  $11,436,647  $11,259,179 
Demand deposits5,222,572  5,066,399  4,345,960  5,222,572   4,345,960 
Total deposits$16,659,219  $16,298,017  $15,605,139  $16,659,219  $15,605,139 
                
Averages               
Assets$19,922,978  $19,686,854  $19,157,238  $19,805,569  $18,358,579 
Loans held for investment, net13,971,939  14,064,123  13,957,711  14,017,777   13,275,817 
Loans held for sale36,790  63,022  56,846  49,834   53,783 
Securities3,420,329  3,209,377  2,648,967  3,315,435   2,635,202 
Earning assets17,868,938  17,692,095  17,106,132  17,781,005   16,334,901 
Deposits16,500,541  16,074,650  14,960,386  16,288,772   14,153,621 
Time deposits2,270,217  2,490,432  2,667,268  2,379,716   2,711,384 
Interest-bearing deposits11,446,768  11,491,129  10,941,368  11,468,826   10,681,393 
Borrowings399,855  574,678  1,344,994  486,784   1,395,539 
Interest-bearing liabilities11,846,623  12,065,807  12,286,362  11,955,610   12,076,932 
Stockholders' equity2,747,864  2,719,941  2,489,969  2,733,980   2,487,807 
Tangible common equity (2)1,594,311  1,562,575  1,446,948  1,578,531   1,462,875 


                    
 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21    03/31/21    06/30/20 06/30/21 06/30/20
Asset Quality(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Allowance for Credit Losses (ACL)              
Beginning balance, Allowance for loan and lease losses (ALLL)$142,911  $160,540  $141,043  $160,540  $42,294 
Add: Day 1 impact from adoption of CECL—  —  —  —  47,484 
Add: Recoveries1,876  2,469  1,411  4,345  3,571 
Less: Charge-offs1,945  3,641  4,677  5,586  11,828 
Add: Provision for loan losses(24,581) (16,457) 32,200  (41,038) 88,456 
Ending balance, ALLL$118,261  $142,911  $169,977  $118,261  $169,977 
               
Beginning balance, Reserve for unfunded commitment (RUC)$12,833  $10,000  $9,000  $10,000  $900 
Add: Day 1 impact from adoption of CECL—  —  —  —  4,160 
Add: Provision for unfunded commitments(2,833) 2,833  2,000  —  5,940 
Ending balance, RUC$10,000  $12,833  $11,000  $10,000  $11,000 
Total ACL$128,261  $155,744  $180,977  $128,261  $180,977 
               
ACL / total outstanding loans0.94% 1.09% 1.26% 0.94% 1.26%
ACL / total adjusted loans(9)1.00% 1.22% 1.42% 1.00% 1.42%
ALLL / total outstanding loans0.86% 1.00% 1.19% 0.86% 1.19%
ALLL / total adjusted loans(9)0.92% 1.12% 1.34% 0.92% 1.34%
Net charge-offs / total average loans0.00% 0.03% 0.09% 0.02% 0.13%
Net charge-offs / total adjusted average loans(9)0.00% 0.04% 0.10% 0.02% 0.14%
Provision for loan losses/ total average loans(0.71)% (0.47)% 0.93% (0.59)% 1.34%
Provision for loan losses/ total adjusted average loans(9)(0.77)% (0.52)% 1.02% (0.65)% 1.48%
               
Nonperforming Assets (6)              
Construction and land development$2,685  $2,637  $3,977  $2,685  $3,977 
Commercial real estate - owner occupied6,969  7,016  8,924  6,969  8,924 
Commercial real estate - non-owner occupied3,026  1,958  1,877  3,026  1,877 
Multifamily real estate113  —  33  113  33 
Commercial & Industrial1,908  2,023  2,708  1,908  2,708 
Residential 1-4 Family - Commercial4,200  9,190  5,784  4,200  5,784 
Residential 1-4 Family - Consumer13,489  14,770  12,029  13,489  12,029 
Residential 1-4 Family - Revolving3,726  3,853  3,626  3,726  3,626 
Auto179  303  584  179  584 
Consumer104  116  81  104  81 
Other Commercial—  —  1  —  1 
Nonaccrual loans$36,399  $41,866  $39,624  $36,399  $39,624 
Foreclosed property1,696  2,344  4,397  1,696  4,397 
Total nonperforming assets (NPAs)$38,095  $44,210  $44,021  $38,095  $44,021 
Construction and land development$186  $189  $473  $186  $473 
Commercial real estate - owner occupied2,276  3,180  7,851  2,276  7,851 
Commercial real estate - non-owner occupied827  817  878  827  878 
Multifamily real estate—  —  366  —  366 
Commercial & Industrial1,088  654  178  1,088  178 
Residential 1-4 Family - Commercial759  576  578  759  578 
Residential 1-4 Family - Consumer2,725  3,041  5,099  2,725  5,099 
Residential 1-4 Family - Revolving561  917  1,995  561  1,995 
Auto168  154  181  168  181 
Consumer156  248  1,157  156  1,157 
Other Commercial—  —  499  —  499 
Loans ≥ 90 days and still accruing$8,746  $9,776  $19,255  $8,746  $19,255 
Total NPAs and loans ≥ 90 days$46,841  $53,986  $63,276  $46,841  $63,276 
NPAs / total outstanding loans0.28% 0.31% 0.31% 0.28% 0.31%
NPAs / total adjusted loans(9)0.30% 0.35% 0.35% 0.30% 0.35%
NPAs / total assets0.19% 0.22% 0.22% 0.19% 0.22%
ALLL / nonaccrual loans324.90% 341.35% 428.97% 324.90% 428.97%
ALLL/ nonperforming assets310.44% 323.25% 386.13% 310.44% 386.13%
               


 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21    03/31/21    06/30/20 06/30/21 06/30/20
Past Due Detail (6)(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Construction and land development$798  $865  $1,683  $798  $1,683 
Commercial real estate - owner occupied1,450  3,426  1,679  1,450  1,679 
Commercial real estate - non-owner occupied1,501  1,055  930  1,501  930 
Multifamily real estate156  187  —  156  — 
Commercial & Industrial948  3,086  1,602  948  1,602 
Residential 1-4 Family - Commercial710  1,803  480  710  480 
Residential 1-4 Family - Consumer764  6,831  1,229  764  1,229 
Residential 1-4 Family - Revolving919  1,397  1,924  919  1,924 
Auto1,333  1,035  1,176  1,333  1,176 
Consumer545  595  844  545  844 
Other Commercial375  407  456  375  456 
Loans 30-59 days past due$9,499  $20,687  $12,003  $9,499  $12,003 
Construction and land development$310  $473  $294  $310  $294 
Commercial real estate - owner occupied2,008  514  430  2,008  430 
Commercial real estate - non-owner occupied78  1,413  369  78  369 
Multifamily real estate—  81  —  —  — 
Commercial & Industrial1,733  613  296  1,733  296 
Residential 1-4 Family - Commercial565  798  2,105  565  2,105 
Residential 1-4 Family - Consumer992  808  3,817  992  3,817 
Residential 1-4 Family - Revolving678  284  1,048  678  1,048 
Auto165  165  290  165  290 
Consumer297  314  561  297  561 
Other Commercial—  88  —  —  — 
Loans 60-89 days past due$6,826  $5,551  $9,210  $6,826  $9,210 
               
Past Due and still accruing$25,071  $36,014  $40,468  $25,071  $40,468 
Past Due and still accruing / total loans0.18% 0.25% 0.28% 0.18% 0.28%
Past Due and still accruing / total adjusted loans(9)0.20%  0.28%  0.32%  0.20%  0.32%
               
Troubled Debt Restructurings              
Performing$13,053  $13,670  $15,303  $13,053  $15,303 
Nonperforming6,231  6,058  5,042  6,231  5,042 
Total troubled debt restructurings$19,284  $19,728  $20,345  $19,284  $20,345 
               
Alternative Performance Measures (non-GAAP)              
Net interest income (FTE) (1)              
Net interest income (GAAP)$140,548  $134,898  $137,305  $275,446  $272,313 
FTE adjustment3,144  3,053  2,805  6,197  5,562 
Net interest income (FTE) (non-GAAP)$143,692  $137,951  $140,110  $281,643  $277,875 
Noninterest income (GAAP)28,466  30,985  35,932  59,451  64,838 
Total revenue (FTE) (non-GAAP)$172,158  $168,936  $176,042  $341,094  $342,713 
               
Average earning assets$17,868,938  $17,692,095  $17,106,132  $17,781,005  $16,334,901 
Net interest margin3.15%  3.09%  3.23%  3.12%  3.35%
Net interest margin (FTE)3.23%  3.16%  3.29%  3.19%  3.42%
               
Tangible Assets (2)              
Ending assets (GAAP)$19,989,356  $19,854,612  $19,752,317  $19,989,356  $19,752,317 
Less: Ending goodwill935,560  935,560  935,560  935,560  935,560 
Less: Ending amortizable intangibles49,917  53,471  65,105  49,917  65,105 
Ending tangible assets (non-GAAP)$19,003,879  $18,865,581  $18,751,652  $19,003,879  $18,751,652 
               
Tangible Common Equity (2)              
Ending equity (GAAP)$2,747,597  $2,709,732  $2,618,226  $2,747,597  $2,618,226 
Less: Ending goodwill935,560  935,560  935,560  935,560  935,560 
Less: Ending amortizable intangibles49,917  53,471  65,105  49,917  65,105 
Less: Perpetual preferred stock166,357  166,357  166,364  166,357  166,364 
Ending tangible common equity (non-GAAP)$1,595,763  $1,554,344  $1,451,197  $1,595,763  $1,451,197 
               
Average equity (GAAP)$2,747,864  $2,719,941  $2,489,969  $2,733,980  $2,487,807 
Less: Average goodwill935,560  935,560  935,560  935,560  935,560 
Less: Average amortizable intangibles51,637  55,450  67,136  53,533  69,210 
Less: Average perpetual preferred stock166,356  166,356  40,325  166,356  20,162 
Average tangible common equity (non-GAAP)$1,594,311  $1,562,575  $1,446,948  $1,578,531  $1,462,875 
               
ROTCE (2)(3)              
Net income available to common shareholders (GAAP)$82,417  $53,222  $30,709  $135,639  $37,798 
Plus: Amortization of intangibles, tax effected2,819  2,947  3,336  5,765  6,813 
Net income available to common shareholders before amortization of intangibles (non-GAAP)$85,236  $56,169  $34,045  $141,404  $44,611 
               
Return on average tangible common equity (ROTCE) (2) (3)21.44%  14.58%  9.46%  18.06%  6.13%


               
 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21   03/31/21  06/30/20  06/30/21 06/30/20
 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Operating Measures (4)              
Net income (GAAP)$85,384  $56,189  $30,709  $141,573  $37,798 
Plus: Net loss related to balance sheet repositioning, net of tax—  11,609  8,141  11,609  9,539 
Less: Gain on sale of securities, net of tax—  62  8,168  62  9,697 
Adjusted operating earnings (non-GAAP)85,384  67,736  30,682  153,120  37,640 
Less: Dividends on preferred stock2,967  2,967  —  5,934  — 
Adjusted operating earnings available to common shareholders (non-GAAP)$82,417  $64,769  $30,682  $147,186  $37,640 
               
Noninterest expense (GAAP)$91,971  $111,937  $102,814  $203,908  $198,459 
Less: Amortization of intangible assets3,568  3,730  4,223  7,298  8,624 
Less: Losses related to balance sheet repositioning—  14,695  10,306  14,695  10,306 
Adjusted operating noninterest expense (non-GAAP)$88,403  $93,512  $88,285  $181,915  $179,529 
               
Noninterest income (GAAP)$28,466  $30,985  $35,932  $59,451  $64,838 
Less: Losses related to balance sheet repositioning—  —  —  —  (1,769)
Less: Gain on sale of securities—  78  10,339  78  12,275 
Adjusted operating noninterest income (non-GAAP)$28,466  $30,907  $25,593  $59,373  $54,332 
               
Net interest income (FTE) (non-GAAP) (1)$143,692  $137,951  $140,110  $281,643  $277,875 
Adjusted operating noninterest income (non-GAAP)28,466  30,907  25,593  59,373  54,332 
Total adjusted revenue (FTE) (non-GAAP) (1)$172,158  $168,858  $165,703  $341,016  $332,207 
               
Efficiency ratio54.42% 67.48% 59.35% 60.89% 58.86%
Adjusted operating efficiency ratio (FTE) (1)(7)51.35% 55.38% 53.28% 53.34% 54.04%
               
Operating ROTCE (2)(3)(4)              
Adjusted operating earnings available to common shareholders (non-GAAP)$82,417  $64,769  $30,682  $147,186  $37,640 
Plus: Amortization of intangibles, tax effected2,819  2,947  3,336  5,765  6,813 
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)$85,236  $67,716  $34,018  $152,951  $44,453 
               
Average tangible common equity (non-GAAP)$1,594,311  $1,562,575  $1,446,948  $1,578,531  $1,462,875 
Adjusted operating return on average tangible common equity (non-GAAP)21.44% 17.58% 9.46% 19.54% 6.11%
               
Pre-tax pre-provision adjusted operating earnings (8)              
Net income (GAAP)$85,384  $56,189  $30,709  $141,573  $37,798 
Plus: Provision for credit losses(27,414) (13,624) 34,200  (41,037) 94,396 
Plus: Income tax expense19,073  11,381  5,514  30,453  6,498 
Plus: Net loss related to balance sheet repositioning—  14,695  10,306  14,695  12,075 
Less: Gain on sale of securities—  78  10,339  78  12,275 
Pre-tax pre-provision adjusted operating earnings (non-GAAP)$77,043  $68,563  $70,390  $145,606  $138,492 
               
Weighted average common shares outstanding, diluted78,843,724  78,884,235  78,722,690  78,863,859  79,020,036 
Pre-tax pre-provision earnings per share, diluted$0.98  $0.87  $0.89  $1.85  $1.75 
               
Adjusted Loans (9)              
Loans held for investment (net of deferred fees and costs)(GAAP)$13,697,929  $14,272,280  $14,308,646  $13,697,929  $14,308,646 
Less: PPP adjustments (net of deferred fees and costs)859,386  1,512,714  1,598,718  859,386  1,598,718 
Total adjusted loans (non-GAAP)$12,838,543  $12,759,566  $12,709,928  $12,838,543  $12,709,928 
               
Average loans held for investment (net of deferred fees and costs)(GAAP)$13,971,939  $14,064,123  $13,957,711  $14,017,777  $13,275,817 
Less: Average PPP adjustments (net of deferred fees and costs)1,187,641  1,309,326  1,273,883  1,248,147  1,273,883 
Total adjusted average loans (non-GAAP)$12,784,298  $12,754,797  $12,683,828  $12,769,630  $12,001,934 


               
 As of & For Three Months Ended
 As of & For Six Months Ended
 06/30/21   03/31/21  06/30/20  06/30/21 06/30/20
 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Mortgage Origination Held for Sale Volume (10)              
Refinance Volume$73,330  $118,918  $121,389  $192,248  $178,424 
Purchase Volume88,747  67,957  61,131  156,704  114,681 
Total Mortgage loan originations held for sale$162,077  $186,875  $182,520  $348,952  $293,105 
% of originations held for sale that are refinances45.2% 63.6% 66.5% 55.1% 60.9%
               
Wealth              
Assets under management ("AUM")$6,396,010  $6,056,475  $5,271,288  $6,396,010  $5,271,288 
               
Other Data              
End of period full-time employees1,884  1,869  1,973  1,884  1,973 
Number of full-service branches129  129  149  129  149 
Number of automatic transaction machines ("ATMs")149  153  169  149  169 


_____________________________
(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) and adjusted operating efficiency ratio (FTE), respectively, 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) and gains or losses on sale of securities. The Company believes these non-GAAP adjusted measures provide investors with important information about the combined economic results of the organization’s operations.
(5)All ratios at June 30, 2021 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, 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 and gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment). 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.
(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), and gains or losses on sale of securities. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations.
(9)These are non-GAAP financial measures. PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. 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 an 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.
(10)Prior periods have been restated to adjust for certain mortgage loans held for investment that were previously included.
  

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

         
 June 30, December 31, June 30,
 2021 2020 2020
ASSETS (unaudited)  (audited)  (unaudited)
Cash and cash equivalents:        
Cash and due from banks$ 268,682 $172,307 $202,947
Interest-bearing deposits in other banks  593,271  318,974  636,211
Federal funds sold  3,217  2,013  2,862
Total cash and cash equivalents  865,170  493,294  842,020
Securities available for sale, at fair value  2,873,405  2,540,419  2,019,164
Securities held to maturity, at carrying value  541,439  544,851  547,561
Restricted stock, at cost  76,825  94,782  105,832
Loans held for sale, at fair value  32,726  96,742  55,067
Loans held for investment, net of deferred fees and costs  13,697,929  14,021,314  14,308,646
Less allowance for loan and lease losses  118,261  160,540  169,977
Total loans held for investment, net  13,579,668  13,860,774  14,138,669
Premises and equipment, net  161,114  163,829  164,321
Goodwill  935,560  935,560  935,560
Amortizable intangibles, net  49,917  57,185  65,105
Bank owned life insurance  427,727  326,892  327,075
Other assets  445,805  514,121  551,943
Total assets$ 19,989,356 $19,628,449 $19,752,317
LIABILITIES        
Noninterest-bearing demand deposits$ 5,222,572 $4,368,703 $4,345,960
Interest-bearing deposits  11,436,647  11,354,062  11,259,179
Total deposits  16,659,219  15,722,765  15,605,139
Securities sold under agreements to repurchase  89,749  100,888  77,216
Other short-term borrowings  —  250,000  —
Long-term borrowings  290,330  489,829  1,047,814
Other liabilities  202,461  356,477  403,922
Total liabilities  17,241,759  16,919,959  17,134,091
Commitments and contingencies        
STOCKHOLDERS' EQUITY        
Preferred stock, $10.00 par value  173  173  173
Common stock, $1.33 par value  103,091  104,169  104,126
Additional paid-in capital  1,881,395  1,917,081  1,911,985
Retained earnings  709,866  616,052  540,638
Accumulated other comprehensive income (loss)  53,072  71,015  61,304
Total stockholders' equity  2,747,597  2,708,490  2,618,226
Total liabilities and stockholders' equity$ 19,989,356 $19,628,449 $19,752,317
         
Common shares outstanding  77,928,948  78,729,212  78,713,056
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 Six Months Ended
 June 30, March 31, June 30, June 30, June 30,
 2021 2021 2020 2021 2020
Interest and dividend income:              
Interest and fees on loans$ 130,570  $128,006  $143,234  $ 258,576  $294,361
Interest on deposits in other banks  86   77   155    163   1,017
Interest and dividends on securities:              
Taxable  10,519   10,353   11,267    20,872   22,895
Nontaxable  9,677   9,237   8,211    18,914   15,920
Total interest and dividend income  150,852   147,673   162,867    298,525   334,193
Interest expense:              
Interest on deposits  7,238   9,128   19,861    16,366   48,375
Interest on short-term borrowings  21   48   186    69   1,526
Interest on long-term borrowings  3,045   3,599   5,515    6,644   11,979
Total interest expense  10,304   12,775   25,562    23,079   61,880
Net interest income  140,548   134,898   137,305    275,446   272,313
Provision for credit losses  (27,414)  (13,624)  34,200    (41,037)  94,396
Net interest income after provision for credit losses  167,962   148,522   103,105    316,483   177,917
Noninterest income:              
Service charges on deposit accounts  6,607   5,509   4,930    12,116   12,508
Other service charges, commissions and fees  1,735   1,701   1,354    3,436   2,978
Interchange fees  2,203   1,847   1,697    4,050   3,321
Fiduciary and asset management fees  6,819   6,475   5,515    13,294   11,499
Mortgage banking income  4,619   8,255   5,826    12,874   7,847
Gains on securities transactions  —   78   10,339    78   12,275
Bank owned life insurance income  3,209   2,265   2,027    5,475   4,076
Loan-related interest rate swap fees  1,321   1,754   5,484    3,075   9,432
Other operating income  1,953   3,101   (1,240)   5,053   902
Total noninterest income  28,466   30,985   35,932    59,451   64,838
Noninterest expenses:              
Salaries and benefits  50,766   52,660   49,896    103,426   100,013
Occupancy expenses  7,140   7,315   7,224    14,454   14,357
Furniture and equipment expenses  3,911   3,968   3,406    7,880   7,147
Technology and data processing  7,219   6,904   6,454    14,123   12,623
Professional services  4,408   4,960   2,989    9,369   6,297
Marketing and advertising expense  2,738   2,044   2,043    4,782   4,782
FDIC assessment premiums and other insurance  2,319   2,307   2,907    4,626   5,768
Other taxes  4,435   4,436   4,120    8,871   8,240
Loan-related expenses  1,909   1,877   2,501    3,786   5,198
Amortization of intangible assets  3,568   3,730   4,223    7,298   8,624
Loss on debt extinguishment  —   14,695   10,306    14,695   10,306
Other expenses  3,558   7,041   6,745    10,598   15,104
Total noninterest expenses  91,971   111,937   102,814    203,908   198,459
Income before income taxes  104,457   67,570   36,223    172,026   44,296
Income tax expense  19,073   11,381   5,514    30,453   6,498
Net income$ 85,384  $56,189  $30,709    141,573   37,798
Dividends on preferred stock  2,967   2,967   —    5,934   —
Net income available to common shareholders$ 82,417  $53,222  $30,709  $ 135,639  $37,798
               
Basic earnings per common share$1.05  $0.67  $0.39  $1.72  $0.48
Diluted earnings per common share$1.05  $0.67  $0.39  $1.72  $0.48
                   

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

                    
 For the Quarter Ended
 June 30, 2021 March 31, 2021
 Average
Balance		    Interest
Income /
Expense (1)		    Yield /
Rate (1)(2)		    Average
Balance		    Interest
Income /
Expense (1)		    Yield /
Rate (1)(2)
     
 (unaudited)  (unaudited)
Assets:               
Securities:               
Taxable$ 2,028,637  $ 10,519 2.08% $1,906,585  $10,353 2.20%
Tax-exempt  1,391,692    12,249 3.53%  1,302,792   11,693 3.64%
Total securities  3,420,329    22,768 2.67%  3,209,377   22,046 2.79%
Loans, net (3) (4)  13,971,939    130,840 3.76%  14,064,123   128,122 3.69%
Other earning assets  476,670    388 0.33%  418,595   558 0.54%
Total earning assets  17,868,938  $ 153,996 3.46%  17,692,095  $150,726 3.46%
Allowance for loan and lease losses  (137,997)       (157,802)     
Total non-earning assets  2,192,037        2,152,561      
Total assets$ 19,922,978       $19,686,854      
                
Liabilities and Stockholders' Equity:               
Interest-bearing deposits:               
Transaction and money market accounts$ 8,159,890  $ 1,809 0.09% $8,060,328  $2,152 0.11%
Regular savings  1,016,661    55 0.02%  940,369   59 0.03%
Time deposits (5)  2,270,217    5,374 0.95%  2,490,432   6,917 1.13%
Total interest-bearing deposits   11,446,768    7,238 0.25%  11,491,129   9,128 0.32%
Other borrowings (6)  399,855    3,066 3.08%  574,678   3,647 2.57%
Total interest-bearing liabilities  11,846,623  $ 10,304 0.35%  12,065,807  $12,775 0.43%
                
Noninterest-bearing liabilities:               
Demand deposits  5,053,773        4,583,521      
Other liabilities  274,718        317,585      
Total liabilities  17,175,114        16,966,913      
Stockholders' equity  2,747,864        2,719,941      
Total liabilities and stockholders' equity$ 19,922,978       $19,686,854      
Net interest income   $ 143,692      $137,951  
                
Interest rate spread      3.11%       3.03%
Cost of funds      0.23%       0.30%
Net interest margin      3.23%       3.16%


_____________________________
(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.
(4)Interest income on loans includes $4.1 million and $4.3 million for the three months ended June 30, 2021 and March 31, 2021, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5)Interest expense on time deposits includes $12,000 and $20,000 for the three months ended June 30, 2021 and March 31, 2021, respectively, in accretion of the fair market value adjustments related to acquisitions.
(6)Interest expense on borrowings includes $202,000 and $198,000 for the three months ended March 31, 2021 and March 31, 2021, in amortization of the fair market value adjustments related to acquisitions.
  

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


FAQ

What were Atlantic Union Bankshares' earnings for Q2 2021?

Atlantic Union Bankshares reported earnings of $82.4 million for Q2 2021.

What is the EPS for Atlantic Union Bankshares for the first half of 2021?

The EPS for Atlantic Union Bankshares for the first half of 2021 was $1.72.

How much net interest income did Atlantic Union Bankshares report in Q2 2021?

Atlantic Union Bankshares reported net interest income of $140.5 million in Q2 2021.

What percentage of loans were nonperforming at Atlantic Union Bankshares?

Nonperforming assets at Atlantic Union Bankshares were 0.28% of total loans as of June 30, 2021.

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

Atlantic Union Bankshares has a share repurchase program of $125 million, with $42.3 million spent on 1.1 million shares in Q2 2021.

Stock AUB logo
Atlantic Union Bankshares Corporation

NYSE:AUB

AUB Rankings

#1488 Ranked by Market Cap
#951 Ranked by Dividends

AUB Latest News

Oct 24, 2024
Atlantic Union Bankshares Corporation Declares Quarterly Common Stock Dividend and Preferred Stock Dividend
Oct 21, 2024
Atlantic Union Bankshares Reports Third Quarter Financial Results
Oct 21, 2024
Atlantic Union Bankshares Corporation Announces Pricing of an Underwritten Offering of 9,859,155 Shares of Common Stock
Oct 21, 2024
Atlantic Union Bankshares Corporation Announces Agreement to Acquire Sandy Spring Bancorp
Oct 1, 2024
Atlantic Union Bankshares Corporation To Release Third Quarter 2024 Financial Results

AUB Stock Data

3.85B
88.85M
1.02%
76.84%
3.61%
Banks - Regional
State Commercial Banks
Link
United States of America
GLEN ALLEN