Atlantic Union Bankshares Reports Third Quarter Results

Rhea-AI Summary

Atlantic Union Bankshares Corporation (AUB) reported a strong third-quarter net income of $71.6 million, translating to earnings per share of $0.94. For the nine months ending September 30, 2021, net income totaled $207.2 million, with earnings per share reaching $2.66. Despite a decrease in net interest income to $137.5 million, largely due to lower Paycheck Protection Program (PPP) loan accretion, the company's credit quality remains strong. Nonperforming assets were stable at 0.28% of total loans. The company declared a dividend of $0.28 per share, maintaining its prior rate.

Positive

• Net income of $71.6 million for Q3 2021.
• Earnings per share of $0.94 for Q3 2021.
• Total net income of $207.2 million for the first nine months of 2021.
• Strong credit quality with nonperforming assets at 0.28% of loans.
• Dividends increased by 12% year-over-year to $0.28 per share.
• Successfully repurchased 2.3 million shares for $82.7 million in Q3.

Negative

• Net interest income decreased to $137.5 million from $140.5 million in Q2 2021.
• Loan balances declined, with an annualized decrease of 16.2% from Q2 2021.
• Decrease in provision for credit losses noted, indicating economic uncertainties.

RICHMOND, Va., Oct. 25, 2021 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $71.6 million and basic and diluted earnings per common share of $0.94 for the third quarter ended September 30, 2021. Pre-tax pre-provision adjusted operating earnings⁽¹⁾ were $72.1 million for the third quarter ended September 30, 2021.

Net income available to common shareholders was $207.2 million and basic and diluted earnings per common share were $2.66 for the nine months ended September 30, 2021. Adjusted operating earnings available to common shareholders⁽¹⁾ were $218.8 million, diluted operating earnings per common share⁽¹⁾ were $2.80, and pre-tax pre-provision adjusted operating earnings⁽¹⁾ were $217.7 million for the nine months ended September 30, 2021.

“Atlantic Union delivered solid financial results in the third quarter as we continue to see the headwinds from COVID-19 abate,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Loan balances exclusive of PPP declined during the third quarter, which we believe was a combination of historically high levels of commercial real estate pay-offs and suppressed commercial line utilization due to excess liquidity. We have seen a strong start to loan growth in October, our credit quality remains pristine, and our capital and liquidity positions continue to be strong.”

“As we finish off 2021, we expect economic activity to pick 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 participated in the SBA PPP under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was intended to provide economic relief to small businesses that had been adversely impacted by the COVID-19 global pandemic (“COVID-19”). The PPP loan funding program expired on May 31, 2021. The Company had PPP loans with a recorded investment of $481.7 million and unamortized deferred fees of $15.1 million as of September 30, 2021. The loans carry a 1% interest rate.

In addition to an insignificant amount of PPP loan pay offs, the Company has processed $1.7 billion^(*) of loan forgiveness on 13,000 PPP loans^(*) since the inception of the program through September 30, 2021. In the third quarter of 2021, the Company processed $391.8 million ^(*) on 3,000 PPP loans 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 that was due to expire on June 30, 2022. As part of the Repurchase Program, 1.1 million shares (or $42.3 million) were repurchased during the quarter ended June 30, 2021, and 2.3 million shares (or $82.7 million) were repurchased during the quarter ended September 30, 2021, fully utilizing the $125 million authorized under the Repurchase Program.
^(*) Number and amount of PPP loans processed for forgiveness are rounded and approximate values

NET INTEREST INCOME

For the third quarter of 2021, net interest income was $137.5 million, a decrease from $140.5 million reported in the second quarter of 2021. Net interest income (FTE)⁽¹⁾ was $140.7 million in the third quarter of 2021, a decrease of $3.0 million from the second quarter of 2021. The decreases in net interest income and net interest income (FTE) were primarily driven by a decrease in PPP loan accretion included in interest income to $9.4 million in the third quarter of 2021 from $11.5 million in the second quarter of 2021. The third quarter net interest margin decreased 10 basis points to 3.05% from 3.15% in the previous quarter, while the net interest margin (FTE)⁽¹⁾ decreased 11 basis points to 3.12% from 3.23% during the same period as earning asset yields declined by 15 basis points compared to the second quarter due to the impact of the low interest rate environment on core loan and investment securities yields and the increase in low yielding cash balances due to excess liquidity, partially offset by a 4 basis point decline in the cost of funds compared to the second quarter driven by lower deposit costs.

The Company’s net interest margin (FTE) ⁽¹⁾ includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $4.0 million for the quarter ended September 30, 2021. The first, second, and third 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 quarter ended September 30, 2021			4,176			(8	)			(203	)			3,965
For the remaining three months of 2021 (estimated)			1,627			(11	)			(203	)			1,413
For the years ending (estimated):
2022			5,757			(43	)			(829	)			4,885
2023			4,281			(32	)			(852	)			3,397
2024			3,501			(4	)			(877	)			2,620
2025			2,724			(1	)			(900	)			1,823
2026			2,176			—				(926	)			1,250
Thereafter			9,433			—				(8,946	)			487
Total remaining acquisition accounting fair value adjustments at September 30, 2021		$	29,499		$	(91	)		$	(13,533	)		$	15,875

ASSET QUALITY

Overview
During the third quarter of 2021, nonperforming assets (“NPAs”) as a percentage of loans was consistent with the prior quarter and remained low at 0.28% at September 30, 2021. Accruing past due loan levels as a percentage of total loans held for investment at September 30, 2021 increased 12 basis points as compared to June 30, 2021 and were 5 basis points lower than accruing past due loan levels at September 30, 2020. The increase in past due loan levels from June 30, 2021 was primarily within the 30-59 days past due category and due to increases in past due credit relationships within the commercial & industrial portfolio. Net charge-offs of $113,000 were insignificant and consistent with the second quarter of 2021. The allowance for credit losses (“ACL”) totaled $109.3 million at September 30, 2021, a $19.0 million decrease from the prior quarter due to lower expected losses than previously estimated and improvements in the macroeconomic outlooks.

Nonperforming Assets
At September 30, 2021, NPAs totaled $37.2 million, a decrease of $927,000 from June 30, 2021. NPAs as a percentage of total outstanding loans at September 30, 2021 were 0.28%, consistent with June 30, 2021. Excluding the impact of the PPP loans⁽¹⁾, NPAs as a percentage of total adjusted loans held for investment were 0.29% at September 30, 2021, a decrease of 1 basis point from 0.30% at June 30, 2021.

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

		September 30,			June 30,			March 31,			December 31,			September 30,
		2021			2021			2021			2020			2020
Nonaccrual loans		$	35,472		$	36,399		$	41,866		$	42,448		$	39,023
Foreclosed properties			1,696			1,696			2,344			2,773			4,159
Total nonperforming assets		$	37,168		$	38,095		$	44,210		$	45,221		$	43,182

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

		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Beginning Balance		$	36,399			$	41,866			$	42,448			$	39,023			$	39,624
Net customer payments			(4,719	)			(9,307	)			(4,133	)			(4,640	)			(2,803	)
Additions			4,177				4,162				3,821				8,211				2,790
Charge-offs			(385	)			(183	)			(270	)			(146	)			(588	)
Loans returning to accruing status			—				(153	)			—				—				—
Transfers to foreclosed property			—				14				—				—				—
Ending Balance		$	35,472			$	36,399			$	41,866			$	42,448			$	39,023

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

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

Past Due Loans
Past due loans still accruing interest totaled $38.8 million or 0.30% of total loans held for investment at September 30, 2021, compared to $25.1 million or 0.18% of total loans held for investment at June 30, 2021, and $50.9 million or 0.35% of total loans held for investment at September 30, 2020. The increase in past due loans in the third quarter of 2021 as compared to the second quarter was primarily within the 30-59 days past due category and due to increases in past due credit relationships within the commercial & industrial portfolio. Of the total past due loans still accruing interest, $11.0 million or 0.08% of total loans held for investment were loans past due 90 days or more at September 30, 2021, compared to $8.7 million or 0.06% of total loans held for investment at June 30, 2021, and $15.6 million or 0.11% of total loans held for investment at September 30, 2020.

Net Charge-offs
Including and excluding the impact of the PPP loans ⁽¹⁾, net charge-offs totaled $113,000 or less than 0.01% of total average loans (annualized) for the quarter ended September 30, 2021, compared to $69,000 or less than 0.01% for the second quarter of 2021, and $1.4 million or 0.04% for the third quarter of 2020.

Provision for Credit Losses
For the quarter ended September 30, 2021, the Company recorded a negative provision for credit losses of $18.8 million, compared to a negative provision for credit losses of $27.4 million in the previous quarter, and which decreased $25.4 million compared to the provision for credit losses of $6.6 million recorded during the same quarter in 2020. The provision for credit losses for the third quarter of 2021 reflected a negative provision of $16.3 million for loan losses and a negative provision of $2.5 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 September 30, 2021.

Allowance for Credit Losses
At September 30, 2021, the ACL was $109.3 million and included an allowance for loan and lease losses (“ALLL”) of $101.8 million and a reserve for unfunded commitments (“RUC”) of $7.5 million. The ACL at September 30, 2021 decreased $19.0 million from June 30, 2021, due to lower expected losses than previously estimated as a result of an improved economic forecast outlook and improvement in credit trends during the third quarter of 2021. The ACL as a percentage of total loans was 0.83% at September 30, 2021 and 0.94% at June 30, 2021. When excluding PPP loans⁽¹⁾, which are 100% guaranteed by the SBA, the ACL as a percentage of total adjusted loans at September 30, 2021 decreased 14 basis points to 0.86% from the prior quarter.

At September 30, 2021, the ALLL decreased $16.5 million and the RUC decreased $2.5 million from June 30, 2021. The ALLL as a percentage of the total loan portfolio was 0.77% at September 30, 2021 and 0.86% at June 30, 2021. When excluding PPP loans⁽¹⁾, which are 100% guaranteed by the SBA, the ALLL as a percentage of total adjusted loans decreased 12 basis points from the prior quarter to 0.80% at September 30, 2021.

NONINTEREST INCOME

Noninterest income increased $1.5 million to $30.0 million for the quarter ended September 30, 2021 from $28.5 million in the prior quarter, primarily driven by an increase in the unrealized gain on equity method investments of approximately $1.1 million that is included in other operating income, a $591,000 increase in deposit and other service charges, and increases in mortgage banking income of $199,000 and asset management fees of $210,000. These quarterly increases were partially offset by declines in other non-interest income categories including a $500,000 decrease in income on bank owned life insurance, as life insurance proceeds that were collected during the prior quarter were not matched during the third quarter of 2021.

NONINTEREST EXPENSE

Noninterest expense increased $3.3 million to $95.3 million for the quarter ended September 30, 2021 from $92.0 million in the prior quarter. This increase was mainly due to increases in salaries and benefits of $2.8 million, driven by performance based variable incentive compensation and profit-sharing expenses of $655,000, higher compensation costs of approximately $1.0 million as a result of branch banking pay structure changes made during the third quarter of 2021, and employee related recruiting, severance, and other cost increases of approximately $900,000. In addition, other expenses increased by $1.6 million for the quarter ended September 30, 2021 primarily due to OREO and related credit expenses increasing by $1.0 million, reflecting the impact of gains on the sale of closed branches recorded as a reduction to other expenses in the prior quarter. Noninterest expense increases were partially offset by declines in professional services fees of $616,000. Noninterest expense for the third quarter of 2021 also included approximately $200,000 in expenses related to PPP loan forgiveness processing, compared to approximately $250,000 in expenses for the quarter ended June 30, 2021.

INCOME TAXES

The effective tax rate for the three months ended September 30, 2021 was 18.0%, compared to 18.3% for the three months ended June 30, 2021. The decrease in the effective tax rate is primarily due to changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At September 30, 2021, total assets were $19.9 billion, a decrease of $53.7 million or approximately 1.1% (annualized) from June 30, 2021, and an increase of $5.0 million from September 30, 2020. Total assets have remained relatively consistent to these prior periods with loans decreasing due to PPP forgiveness, cash and cash equivalents increasing due to excess liquidity, and net growth in the investment securities portfolio.

At September 30, 2021, loans held for investment (net of deferred fees and costs) totaled $13.1 billion, including $466.6 million in PPP loans, a decrease of $558.3 million or 16.2% (annualized) from June 30, 2021, and average loans at September 30, 2021 decreased $520.3 million or 14.8% (annualized) from the prior quarter. Excluding the effects of the PPP⁽¹⁾, loans held for investment (net of deferred fees and costs) at September 30, 2021 decreased $165.6 million or 5.1% (annualized) from June 30, 2021, and average loans decreased $19.9 million or 0.6% (annualized) from the prior quarter. Loans held for investment (net of deferred fees and costs) decreased $1.2 billion or 8.6% from September 30, 2020, while quarterly average loans decreased $907.0 million or 6.3% 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 September 30, 2021 decreased $109.7 million or 0.9% from the same period in the prior year, and quarterly average loans during the third quarter of 2021 increased $44.0 million or 0.3% from the same period in the prior year. In addition to an insignificant amount of PPP loan payoffs, the Company processed $391.8 million^(*) of loan forgiveness on 3,000 PPP loans^(*) during the third quarter of 2021, compared to $705.0 million^(*) of loan forgiveness on 5,000 PPP loans^(*) during the second quarter of 2021.

At September 30, 2021, total deposits were $16.6 billion, a decrease of $37.1 million or approximately 0.9% (annualized) from June 30, 2021, and average deposits increased $217.6 million or 5.2% (annualized) from the prior quarter. Deposits at September 30, 2021 increased $1.0 billion or 6.7% from September 30, 2020, and quarterly average deposits at September 30, 2021 increased $1.1 billion or 7.3% from the same period in the prior year. The increases in deposits from the prior year were primarily due to additional liquidity of bank customers due to higher levels of government assistance programs since the start of COVID.

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

		September 30,		June 30,		September 30,
		2021		2021		2020
Common equity Tier 1 capital ratio (2)		10.37	%	10.56	%	10.05	%
Tier 1 capital ratio (2)		11.49	%	11.68	%	11.18	%
Total capital ratio (2)		13.78	%	14.05	%	13.93	%
Leverage ratio (Tier 1 capital to average assets) (2)		8.97	%	9.20	%	8.82	%
Common equity to total assets		12.68	%	12.91	%	12.52	%
Tangible common equity to tangible assets (1)		8.16	%	8.40	%	7.91	%

_________________________
During the third quarter of 2021, the Company declared and paid cash dividends of $0.28 per common share, consistent with the second quarter of 2021, and an increase of $0.03, or approximately 12.0%, compared to the third quarter of 2020. During the third 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 was due to expire 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, and 2.3 million shares (or $82.7 million) were repurchased during the quarter ended September 30, 2021, fully utilizing the repurchase authorization under the Repurchase Program.

^{______________________________
(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.

⁽²⁾ All ratios at September 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.

^(*) Number and amount of PPP loans processed for forgiveness are rounded and approximate values

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 130 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; Dixon, Hubard, Feinour & Brown, Inc., which provides investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2021 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for analysts on Monday, October 25, 2021 at 9:00 a.m. Eastern Time during which management will review the third 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 1236699. Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/zze37wck.

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 September 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 Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
Results of Operations		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Interest and dividend income		$	146,379			$	150,852			$	157,414			$	444,904			$	491,607
Interest expense			8,891				10,304				20,033				31,970				81,913
Net interest income			137,488				140,548				137,381				412,934				409,694
Provision for credit losses			(18,850	)			(27,414	)			6,558				(59,888	)			100,954
Net interest income after provision for credit losses			156,338				167,962				130,823				472,822				308,740
Noninterest income			29,938				28,466				34,407				89,388				99,245
Noninterest expenses			95,343				91,971				93,222				299,251				291,681
Income before income taxes			90,933				104,457				72,008				262,959				116,304
Income tax expense			16,368				19,073				11,008				46,821				17,506
Net income			74,565				85,384				61,000				216,138				98,798
Dividends on preferred stock			2,967				2,967				2,691				8,901				2,691
Net income available to common shareholders		$	71,598			$	82,417			$	58,309			$	207,237			$	96,107
Interest earned on earning assets (FTE) (1)		$	149,543			$	153,996			$	160,315			$	454,265			$	500,069
Net interest income (FTE) (1)			140,652				143,692				140,282				422,295				418,156
Total revenue (FTE) (1)			170,590				172,158				174,689				511,683				517,401
Pre-tax pre-provision adjusted operating earnings (8)			72,074				77,043				78,548				217,679				217,040
Key Ratios
Earnings per common share, diluted		$	0.94			$	1.05			$	0.74			$	2.66			$	1.22
Return on average assets (ROA)			1.47	%			1.72	%			1.23	%			1.45	%			0.70	%
Return on average equity (ROE)			10.88	%			12.46	%			9.16	%			10.59	%			5.19	%
Return on average tangible common equity (ROTCE) (2) (3)			18.79	%			21.44	%			16.49	%			18.31	%			9.64	%
Efficiency ratio			56.95	%			54.42	%			54.27	%			59.57	%			57.31	%
Net interest margin			3.05	%			3.15	%			3.08	%			3.10	%			3.26	%
Net interest margin (FTE) (1)			3.12	%			3.23	%			3.14	%			3.17	%			3.32	%
Yields on earning assets (FTE) (1)			3.31	%			3.46	%			3.59	%			3.41	%			3.97	%
Cost of interest-bearing liabilities			0.30	%			0.35	%			0.64	%			0.36	%			0.90	%
Cost of deposits			0.14	%			0.18	%			0.39	%			0.18	%			0.58	%
Cost of funds			0.19	%			0.23	%			0.45	%			0.24	%			0.65	%
Operating Measures (4)
Adjusted operating earnings		$	74,558			$	85,384			$	60,986			$	227,678			$	98,626
Adjusted operating earnings available to common shareholders			71,591				82,417				58,295				218,777				95,935
Adjusted operating earnings per common share, diluted		$	0.94			$	1.05			$	0.74			$	2.80			$	1.22
Adjusted operating ROA			1.47	%			1.72	%			1.23	%			1.53	%			0.70	%
Adjusted operating ROE			10.88	%			12.46	%			9.16	%			11.16	%			5.18	%
Adjusted operating ROTCE (2) (3)			18.79	%			21.44	%			16.49	%			19.29	%			9.63	%
Adjusted operating efficiency ratio (FTE) (1)(7)			53.91	%			51.35	%			51.05	%			53.53	%			53.01	%
Per Share Data
Earnings per common share, basic		$	0.94			$	1.05			$	0.74			$	2.66			$	1.22
Earnings per common share, diluted			0.94				1.05				0.74				2.66				1.22
Cash dividends paid per common share			0.28				0.28				0.25				0.81				0.75
Market value per share			36.85				36.22				21.37				36.85				21.37
Book value per common share			33.60				33.30				31.86				33.60				31.86
Tangible book value per common share (2)			20.55				20.59				19.13				20.55				19.13
Price to earnings ratio, diluted			9.88				8.60				7.26				10.36				13.11
Price to book value per common share ratio			1.10				1.09				0.67				1.10				0.67
Price to tangible book value per common share ratio (2)			1.79				1.76				1.12				1.79				1.12
Weighted average common shares outstanding, basic			76,309,355				78,819,697				78,714,353				77,988,151				78,904,792
Weighted average common shares outstanding, diluted			76,322,736				78,848,724				78,725,346				78,007,543				78,921,108
Common shares outstanding at end of period			75,645,031				77,928,948				78,718,850				75,645,031				78,718,850

		As of & For Three Months Ended												As of & For Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
Capital Ratios		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Common equity Tier 1 capital ratio (5)			10.37	%			10.56	%			10.05	%			10.37	%			10.05	%
Tier 1 capital ratio (5)			11.49	%			11.68	%			11.18	%			11.49	%			11.18	%
Total capital ratio (5)			13.78	%			14.05	%			13.93	%			13.78	%			13.93	%
Leverage ratio (Tier 1 capital to average assets) (5)			8.97	%			9.20	%			8.82	%			8.97	%			8.82	%
Common equity to total assets			12.68	%			12.91	%			12.52	%			12.68	%			12.52	%
Tangible common equity to tangible assets (2)			8.16	%			8.40	%			7.91	%			8.16	%			7.91	%
Financial Condition
Assets		$	19,935,657			$	19,989,356			$	19,930,650			$	19,935,657			$	19,930,650
Loans held for investment (net of deferred fees and costs)			13,139,586				13,697,929				14,383,215				13,139,586				14,383,215
Securities			3,807,723				3,491,669				3,102,217				3,807,723				3,102,217
Earning Assets			17,795,784				17,824,283				17,885,975				17,795,784				17,885,975
Goodwill			935,560				935,560				935,560				935,560				935,560
Amortizable intangibles, net			46,537				49,917				61,068				46,537				61,068
Deposits			16,622,160				16,659,219				15,576,098				16,622,160				15,576,098
Borrowings			385,765				380,079				1,314,322				385,765				1,314,322
Stockholders' equity			2,694,439				2,747,597				2,660,885				2,694,439				2,660,885
Tangible common equity (2)			1,545,985				1,595,763				1,497,900				1,545,985				1,497,900
Loans held for investment, net of deferred fees and costs
Construction and land development		$	877,351			$	838,722			$	1,207,190			$	877,351			$	1,207,190
Commercial real estate - owner occupied			2,027,299				2,069,658				2,107,333				2,027,299				2,107,333
Commercial real estate - non-owner occupied			3,730,720				3,712,607				3,497,929				3,730,720				3,497,929
Multifamily real estate			776,287				860,081				731,582				776,287				731,582
Commercial & Industrial			2,580,190				2,990,622				3,536,249				2,580,190				3,536,249
Residential 1-4 Family - Commercial			624,347				637,485				696,944				624,347				696,944
Residential 1-4 Family - Consumer			822,971				823,355				830,144				822,971				830,144
Residential 1-4 Family - Revolving			557,803				559,014				618,320				557,803				618,320
Auto			425,436				411,073				387,417				425,436				387,417
Consumer			182,039				195,036				276,023				182,039				276,023
Other Commercial			535,143				600,276				494,084				535,143				494,084
Total loans held for investment		$	13,139,586			$	13,697,929			$	14,383,215			$	13,139,586			$	14,383,215
Deposits
NOW accounts		$	4,016,505			$	3,777,540			$	3,460,480			$	4,016,505			$	3,460,480
Money market accounts			4,152,986				4,450,724				4,269,696				4,152,986				4,269,696
Savings accounts			1,079,735				1,032,171				861,685				1,079,735				861,685
Time deposits of $250,000 and over			546,199				566,180				633,252				546,199				633,252
Other time deposits			1,497,897				1,610,032				1,930,320				1,497,897				1,930,320
Time deposits			2,044,096				2,176,212				2,563,572				2,044,096				2,563,572
Total interest-bearing deposits		$	11,293,322			$	11,436,647			$	11,155,433			$	11,293,322			$	11,155,433
Demand deposits			5,328,838				5,222,572				4,420,665				5,328,838				4,420,665
Total deposits		$	16,622,160			$	16,659,219			$	15,576,098			$	16,622,160			$	15,576,098
Averages
Assets		$	20,056,570			$	19,922,978			$	19,785,167			$	19,890,155			$	18,837,580
Loans held for investment (net of deferred fees and costs)			13,451,674				13,971,939				14,358,666				13,827,002				13,639,401
Loans held for sale			30,035				36,790				45,201				43,162				50,902
Securities			3,679,977				3,420,329				2,891,210				3,438,285				2,721,161
Earning assets			17,910,389				17,868,938				17,748,152				17,824,607				16,809,423
Deposits			16,718,144				16,500,541				15,580,469				16,433,470				14,632,709
Time deposits			2,109,131				2,270,217				2,579,991				2,288,530				2,667,267
Interest-bearing deposits			11,512,825				11,446,768				11,260,244				11,483,654				10,875,752
Borrowings			395,984				399,855				1,183,839				456,184				1,324,457
Interest-bearing liabilities			11,908,809				11,846,623				12,444,083				11,939,838				12,200,209
Stockholders' equity			2,718,032				2,747,864				2,648,777				2,728,605				2,541,856
Tangible common equity (2)			1,567,937				1,594,311				1,483,848				1,574,961				1,469,918

		As of & For Three Months Ended												As of & For Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
Asset Quality		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Allowance for Credit Losses (ACL)
Beginning balance, Allowance for loan and lease losses (ALLL)		$	118,261			$	142,911			$	169,977			$	160,540			$	42,294
Add: Day 1 impact from adoption of CECL			—				—				—				—				47,484
Add: Recoveries			2,153				1,876				1,566				6,498				5,137
Less: Charge-offs			2,266				1,945				2,978				7,852				14,806
Add: Provision for loan losses			(16,350	)			(24,581	)			5,557				(57,388	)			94,013
Ending balance, ALLL		$	101,798			$	118,261			$	174,122			$	101,798			$	174,122
Beginning balance, Reserve for unfunded commitment (RUC)		$	10,000			$	12,833			$	11,000			$	10,000			$	900
Add: Day 1 impact from adoption of CECL			—				—				—				—				4,160
Add: Provision for unfunded commitments			(2,500	)			(2,833	)			1,000				(2,500	)			6,940
Ending balance, RUC		$	7,500			$	10,000			$	12,000			$	7,500			$	12,000
Total ACL		$	109,298			$	128,261			$	186,122			$	109,298			$	186,122
ACL / total outstanding loans			0.83	%			0.94	%			1.29	%			0.83	%			1.29	%
ACL / total adjusted loans(9)			0.86	%			1.00	%			1.46	%			0.86	%			1.46	%
ALLL / total outstanding loans			0.77	%			0.86	%			1.21	%			0.77	%			1.21	%
ALLL / total adjusted loans(9)			0.80	%			0.92	%			1.36	%			0.80	%			1.36	%
Net charge-offs / total average loans			0.00	%			0.00	%			0.04	%			0.01	%			0.09	%
Net charge-offs / total adjusted average loans(9)			0.00	%			0.00	%			0.04	%			0.01	%			0.11	%
Provision for loan losses/ total average loans			(0.48	%			(0.71	)%			0.15	%			(0.55	)%			0.92	%
Provision for loan losses/ total adjusted average loans(9)			(0.51	%			(0.77	)%			0.17	%			(0.60	)%			1.03	%
	`
Nonperforming Assets (6)
Construction and land development		$	2,710			$	2,685			$	3,520			$	2,710			$	3,520
Commercial real estate - owner occupied			7,786				6,969				9,267				7,786				9,267
Commercial real estate - non-owner occupied			4,174				3,026				1,992				4,174				1,992
Multifamily real estate			113				113				33				113				33
Commercial & Industrial			2,062				1,908				1,592				2,062				1,592
Residential 1-4 Family - Commercial			2,445				4,200				5,743				2,445				5,743
Residential 1-4 Family - Consumer			12,150				13,489				12,620				12,150				12,620
Residential 1-4 Family - Revolving			3,723				3,726				3,664				3,723				3,664
Auto			255				179				517				255				517
Consumer			54				104				75				54				75
Nonaccrual loans		$	35,472			$	36,399			$	39,023			$	35,472			$	39,023
Foreclosed property			1,696				1,696				4,159				1,696				4,159
Total nonperforming assets (NPAs)		$	37,168			$	38,095			$	43,182			$	37,168			$	43,182
Construction and land development		$	304			$	186			$	93			$	304			$	93
Commercial real estate - owner occupied			1,886				2,276				1,726				1,886				1,726
Commercial real estate - non-owner occupied			1,175				827				168				1,175				168
Multifamily real estate			—				—				359				—				359
Commercial & Industrial			1,256				1,088				604				1,256				604
Residential 1-4 Family - Commercial			1,091				759				5,298				1,091				5,298
Residential 1-4 Family - Consumer			2,462				2,725				4,495				2,462				4,495
Residential 1-4 Family - Revolving			2,474				561				2,276				2,474				2,276
Auto			209				168				315				209				315
Consumer			173				156				327				173				327
Loans ≥ 90 days and still accruing		$	11,030			$	8,746			$	15,661			$	11,030			$	15,661
Total NPAs and loans ≥ 90 days		$	48,198			$	46,841			$	58,843			$	48,198			$	58,843
NPAs / total outstanding loans			0.28	%			0.28	%			0.30	%			0.28	%			0.30	%
NPAs / total adjusted loans(9)			0.29	%			0.30	%			0.34	%			0.29	%			0.34	%
NPAs / total assets			0.19	%			0.19	%			0.22	%			0.19	%			0.22	%
ALLL / nonaccrual loans			286.98	%			324.90	%			446.20	%			286.98	%			446.20	%
ALLL/ nonperforming assets			273.89	%			310.44	%			403.23	%			273.89	%			403.23	%

		As of & For Three Months Ended												As of & For Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
Past Due Detail (6)		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Construction and land development		$	744			$	798			$	2,625			$	744			$	2,625
Commercial real estate - owner occupied			735				1,450				4,924				735				4,924
Commercial real estate - non-owner occupied			1,302				1,501				1,291				1,302				1,291
Multifamily real estate			—				156				—				—				—
Commercial & Industrial			11,089				948				4,322				11,089				4,322
Residential 1-4 Family - Commercial			807				710				1,236				807				1,236
Residential 1-4 Family - Consumer			406				764				2,998				406				2,998
Residential 1-4 Family - Revolving			1,092				919				2,669				1,092				2,669
Auto			1,548				1,333				1,513				1,548				1,513
Consumer			790				545				1,020				790				1,020
Other Commercial			631				375				613				631				613
Loans 30-59 days past due		$	19,144			$	9,499			$	23,211			$	19,144			$	23,211
Construction and land development		$	58			$	310			$	223			$	58			$	223
Commercial real estate - owner occupied			61				2,008				1,310				61				1,310
Commercial real estate - non-owner occupied			570				78				1,371				570				1,371
Commercial & Industrial			3,328				1,733				1,448				3,328				1,448
Residential 1-4 Family - Commercial			698				565				937				698				937
Residential 1-4 Family - Consumer			2,188				992				3,976				2,188				3,976
Residential 1-4 Family - Revolving			587				678				1,141				587				1,141
Auto			202				165				453				202				453
Consumer			317				297				772				317				772
Other Commercial			600				—				427				600				427
Loans 60-89 days past due		$	8,609			$	6,826			$	12,058			$	8,609			$	12,058
Past Due and still accruing		$	38,783			$	25,071			$	50,930			$	38,783			$	50,930
Past Due and still accruing / total loans			0.30	%			0.18	%			0.35	%			0.30	%			0.35	%
Troubled Debt Restructurings
Performing		$	11,335			$	13,053			$	14,515			$	11,335			$	14,515
Nonperforming			7,365				6,231				7,045				7,365				7,045
Total troubled debt restructurings		$	18,700			$	19,284			$	21,560			$	18,700			$	21,560
Alternative Performance Measures (non-GAAP)
Net interest income (FTE) (1)
Net interest income (GAAP)		$	137,488			$	140,548			$	137,381			$	412,934			$	409,694
FTE adjustment			3,164				3,144				2,901				9,361				8,462
Net interest income (FTE) (non-GAAP)		$	140,652			$	143,692			$	140,282			$	422,295			$	418,156
Noninterest income (GAAP)			29,938				28,466				34,407				89,388				99,245
Total revenue (FTE) (non-GAAP)		$	170,590			$	172,158			$	174,689			$	511,683			$	517,401
Average earning assets		$	17,910,389			$	17,868,938			$	17,748,152			$	17,824,607			$	16,809,423
Net interest margin			3.05	%			3.15	%			3.08	%			3.10	%			3.26	%
Net interest margin (FTE)			3.12	%			3.23	%			3.14	%			3.17	%			3.32	%
Tangible Assets (2)
Ending assets (GAAP)		$	19,935,657			$	19,989,356			$	19,930,650			$	19,935,657			$	19,930,650
Less: Ending goodwill			935,560				935,560				935,560				935,560				935,560
Less: Ending amortizable intangibles			46,537				49,917				61,068				46,537				61,068
Ending tangible assets (non-GAAP)		$	18,953,560			$	19,003,879			$	18,934,022			$	18,953,560			$	18,934,022
Tangible Common Equity (2)
Ending equity (GAAP)		$	2,694,439			$	2,747,597			$	2,660,885			$	2,694,439			$	2,660,885
Less: Ending goodwill			935,560				935,560				935,560				935,560				935,560
Less: Ending amortizable intangibles			46,537				49,917				61,068				46,537				61,068
Less: Perpetual preferred stock			166,357				166,357				166,357				166,357				166,357
Ending tangible common equity (non-GAAP)		$	1,545,985			$	1,595,763			$	1,497,900			$	1,545,985			$	1,497,900
Average equity (GAAP)		$	2,718,032			$	2,747,864			$	2,648,777			$	2,728,605			$	2,541,856
Less: Average goodwill			935,560				935,560				935,560				935,560				935,560
Less: Average amortizable intangibles			48,179				51,637				63,016				51,728				67,130
Less: Average perpetual preferred stock			166,356				166,356				166,353				166,356				69,248
Average tangible common equity (non-GAAP)		$	1,567,937			$	1,594,311			$	1,483,848			$	1,574,961			$	1,469,918
ROTCE (2)(3)
Net income available to common shareholders (GAAP)		$	71,598			$	82,417			$	58,309			$	207,237			$	96,107
Plus: Amortization of intangibles, tax effected			2,671				2,819				3,202				8,436				10,014
Net income available to common shareholders before amortization of intangibles (non-GAAP)		$	74,269			$	85,236			$	61,511			$	215,673			$	106,121
Return on average tangible common equity (ROTCE)			18.79	%			21.44	%			16.49	%			18.31	%			9.64	%

		As of & For Three Months Ended												As of & For Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Operating Measures (4)
Net income (GAAP)		$	74,565			$	85,384			$	61,000			$	216,138			$	98,798
Plus: Net loss related to balance sheet repositioning, net of tax			—				—				—				11,609				9,539
Less: Gain on sale of securities, net of tax			7				—				14				69				9,711
Adjusted operating earnings (non-GAAP)			74,558				85,384				60,986				227,678				98,626
Less: Dividends on preferred stock			2,967				2,967				2,691				8,901				2,691
Adjusted operating earnings available to common shareholders (non-GAAP)		$	71,591			$	82,417			$	58,295			$	218,777			$	95,935
Noninterest expense (GAAP)		$	95,343			$	91,971			$	93,222			$	299,251			$	291,681
Less: Amortization of intangible assets			3,381				3,568				4,053				10,679				12,676
Less: Losses related to balance sheet repositioning			—				—				—				14,695				10,306
Adjusted operating noninterest expense (non-GAAP)		$	91,962			$	88,403			$	89,169			$	273,877			$	268,699
Noninterest income (GAAP)		$	29,938			$	28,466			$	34,407			$	89,388			$	99,245
Plus: Losses related to balance sheet repositioning			—				—				—				—				(1,769	)
Less: Gain on sale of securities			9				—				18				87				12,293
Adjusted operating noninterest income (non-GAAP)		$	29,929			$	28,466			$	34,389			$	89,301			$	88,721
Net interest income (FTE) (non-GAAP) (1)		$	140,652			$	143,692			$	140,282			$	422,295			$	418,156
Adjusted operating noninterest income (non-GAAP)			29,929				28,466				34,389				89,301				88,721
Total adjusted revenue (FTE) (non-GAAP) (1)		$	170,581			$	172,158			$	174,671			$	511,596			$	506,877
Efficiency ratio			56.95	%			54.42	%			54.27	%			59.57	%			57.31	%
Adjusted operating efficiency ratio (FTE) (1)(7)			53.91	%			51.35	%			51.05	%			53.53	%			53.01	%
Operating ROTCE (2)(3)(4)
Adjusted operating earnings available to common shareholders (non-GAAP)		$	71,591			$	82,417			$	58,295			$	218,777			$	95,935
Plus: Amortization of intangibles, tax effected			2,671				2,819				3,202				8,436				10,014
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)		$	74,262			$	85,236			$	61,497			$	227,213			$	105,949
Average tangible common equity (non-GAAP)		$	1,567,937			$	1,594,311			$	1,483,848			$	1,574,961			$	1,469,918
Adjusted operating return on average tangible common equity (non-GAAP)			18.79	%			21.44	%			16.49	%			19.29	%			9.63	%
Pre-tax pre-provision adjusted operating earnings (8)
Net income (GAAP)		$	74,565			$	85,384			$	61,000			$	216,138			$	98,798
Plus: Provision for credit losses			(18,850	)			(27,414	)			6,558				(59,888	)			100,954
Plus: Income tax expense			16,368				19,073				11,008				46,821				17,506
Plus: Net loss related to balance sheet repositioning			—				—				—				14,695				12,075
Less: Gain on sale of securities			9				—				18				87				12,293
Pre-tax pre-provision adjusted operating earnings (non-GAAP)		$	72,074			$	77,043			$	78,548			$	217,679			$	217,040
Weighted average common shares outstanding, diluted			76,322,736				78,848,724				78,725,346				78,007,543				78,921,108
Pre-tax pre-provision earnings per share, diluted		$	0.94			$	0.98			$	1.00			$	2.79			$	2.75
Adjusted Loans (9)
Loans held for investment (net of deferred fees and costs) (GAAP)		$	13,139,586			$	13,697,929			$	14,383,215			$	13,139,586			$	14,383,215
Less: PPP adjustments (net of deferred fees and costs)			466,609				859,386				1,600,577				466,609				1,600,577
Total adjusted loans (non-GAAP)		$	12,672,977			$	12,838,543			$	12,782,638			$	12,672,977			$	12,782,638
Average loans held for investment (net of deferred fees and costs) (GAAP)		$	13,451,674			$	13,971,939			$	14,358,666			$	13,827,002			$	13,639,401
Less: Average PPP adjustments (net of deferred fees and costs)			687,259				1,187,641				1,638,204				1,059,130				1,457,091
Total adjusted average loans (non-GAAP)		$	12,764,415			$	12,784,298			$	12,720,462			$	12,767,872			$	12,182,310

		As of & For Three Months Ended												As of & For Nine Months Ended
		09/30/21				06/30/21				09/30/20				09/30/21				09/30/20
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
Mortgage Origination Held for Sale Volume (10)
Refinance Volume		$	49,154			$	73,330			$	125,571			$	241,401			$	303,995
Purchase Volume			93,819				88,747				96,010				250,523				210,691
Total Mortgage loan originations held for sale		$	142,973			$	162,077			$	221,581			$	491,924			$	514,686
% of originations held for sale that are refinances			34.4	%			45.2	%			56.7	%			49.1	%			59.1	%
Wealth
Assets under management (AUM)		$	6,377,518			$	6,396,010			$	5,455,268			$	6,377,518			$	5,455,268
Other Data
End of period full-time employees			1,918				1,884				1,883				1,918				1,883
Number of full-service branches			130				129				135				130				135
Number of automatic transaction machines (ATMs)			149				149				157				149				157

(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 September 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, the gain on sale of securities 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)	Periods ended September 30, 2020 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)

	September 30,			December 31,			September 30,
	2021			2020			2020
ASSETS		(unaudited)			(audited)			(unaudited)
Cash and cash equivalents:
Cash and due from banks	$	255,648		$	172,307		$	178,563
Interest-bearing deposits in other banks		807,225			318,974			335,111
Federal funds sold		377			2,013			7,292
Total cash and cash equivalents		1,063,250			493,294			520,966
Securities available for sale, at fair value		3,195,176			2,540,419			2,443,340
Securities held to maturity, at carrying value		535,722			544,851			546,661
Restricted stock, at cost		76,825			94,782			112,216
Loans held for sale, at fair value		35,417			96,742			52,607
Loans held for investment, net of deferred fees and costs		13,139,586			14,021,314			14,383,215
Less allowance for loan and lease losses		101,798			160,540			174,122
Total loans held for investment, net		13,037,788			13,860,774			14,209,093
Premises and equipment, net		159,588			163,829			156,934
Goodwill		935,560			935,560			935,560
Amortizable intangibles, net		46,537			57,185			61,068
Bank owned life insurance		430,341			326,892			325,538
Other assets		419,453			514,121			566,667
Total assets	$	19,935,657		$	19,628,449		$	19,930,650
LIABILITIES
Noninterest-bearing demand deposits	$	5,328,838		$	4,368,703		$	4,420,665
Interest-bearing deposits		11,293,322			11,354,062			11,155,433
Total deposits		16,622,160			15,722,765			15,576,098
Securities sold under agreements to repurchase		95,181			100,888			91,086
Other short-term borrowings		—			250,000			175,200
Long-term borrowings		290,584			489,829			1,048,036
Other liabilities		233,293			356,477			379,345
Total liabilities		17,241,218			16,919,959			17,269,765
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $10.00 par value		173			173			173
Common stock, $1.33 par value		100,062			104,169			104,141
Additional paid-in capital		1,804,617			1,917,081			1,914,640
Retained earnings		760,164			616,052			579,269
Accumulated other comprehensive income (loss)		29,423			71,015			62,662
Total stockholders' equity		2,694,439			2,708,490			2,660,885
Total liabilities and stockholders' equity	$	19,935,657		$	19,628,449		$	19,930,650
Common shares outstanding		75,645,031			78,729,212			78,718,850
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											Nine Months Ended
	September 30,				June 30,				September 30,			September 30,				September 30,
	2021				2021				2020			2021				2020
Interest and dividend income:
Interest and fees on loans	$	124,999			$	130,570			$	138,402		$	383,575			$	432,763
Interest on deposits in other banks		291				86				137			454				1,154
Interest and dividends on securities:
Taxable		11,230				10,519				10,275			32,102				33,170
Nontaxable		9,859				9,677				8,600			28,773				24,520
Total interest and dividend income		146,379				150,852				157,414			444,904				491,607
Interest expense:
Interest on deposits		5,837				7,238				15,568			22,203				63,943
Interest on short-term borrowings		22				21				72			91				1,598
Interest on long-term borrowings		3,032				3,045				4,393			9,676				16,372
Total interest expense		8,891				10,304				20,033			31,970				81,913
Net interest income		137,488				140,548				137,381			412,934				409,694
Provision for credit losses		(18,850	)			(27,414	)			6,558			(59,888	)			100,954
Net interest income after provision for credit losses		156,338				167,962				130,823			472,822				308,740
Noninterest income:
Service charges on deposit accounts		7,198				6,607				6,041			19,314				18,549
Other service charges, commissions and fees		1,534				1,735				1,621			4,970				4,600
Interchange fees		2,203				2,203				1,979			6,252				5,300
Fiduciary and asset management fees		7,029				6,819				6,045			20,323				17,543
Mortgage banking income		4,818				4,619				8,897			17,692				16,744
Gains on securities transactions		9				—				18			87				12,293
Bank owned life insurance income		2,727				3,209				3,421			8,202				7,498
Loan-related interest rate swap fees		1,102				1,321				3,170			4,176				12,602
Other operating income		3,318				1,953				3,215			8,372				4,116
Total noninterest income		29,938				28,466				34,407			89,388				99,245
Noninterest expenses:
Salaries and benefits		53,534				50,766				49,000			156,959				149,013
Occupancy expenses		7,251				7,140				7,441			21,705				21,798
Furniture and equipment expenses		4,040				3,911				3,895			11,919				11,042
Technology and data processing		7,534				7,219				6,564			21,657				19,187
Professional services		3,792				4,408				2,914			13,161				9,211
Marketing and advertising expense		2,548				2,738				2,631			7,330				7,413
FDIC assessment premiums and other insurance		2,172				2,319				1,811			6,798				7,578
Other taxes		4,432				4,435				4,124			13,303				12,364
Loan-related expenses		1,503				1,909				2,314			5,289				7,512
Amortization of intangible assets		3,381				3,568				4,053			10,679				12,676
Loss on debt extinguishment		—				—				—			14,695				10,306
Other expenses		5,156				3,558				8,475			15,756				23,581
Total noninterest expenses		95,343				91,971				93,222			299,251				291,681
Income before income taxes		90,933				104,457				72,008			262,959				116,304
Income tax expense		16,368				19,073				11,008			46,821				17,506
Net income	$	74,565			$	85,384			$	61,000			216,138				98,798
Dividends on preferred stock		2,967				2,967				2,691			8,901				2,691
Net income available to common shareholders	$	71,598			$	82,417			$	58,309		$	207,237			$	96,107
Basic earnings per common share	$	0.94			$	1.05			$	0.74		$	2.66			$	1.22
Diluted earnings per common share	$	0.94			$	1.05			$	0.74		$	2.66			$	1.22

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

	For the Quarter Ended
	September 30, 2021										June 30, 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	$	2,248,478			$	11,230		1.98	%		$	2,028,637			$	10,519		2.08	%
Tax-exempt		1,431,499				12,480		3.46	%			1,391,692				12,249		3.53	%
Total securities		3,679,977				23,710		2.56	%			3,420,329				22,768		2.67	%
Loans, net (3) (4)		13,451,674				125,290		3.70	%			13,971,939				130,840		3.76	%
Other earning assets		778,738				543		0.28	%			476,670				388		0.33	%
Total earning assets		17,910,389			$	149,543		3.31	%			17,868,938			$	153,996		3.46	%
Allowance for loan and lease losses		(117,414	)									(137,997	)
Total non-earning assets		2,263,595										2,192,037
Total assets	$	20,056,570									$	19,922,978
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	8,345,410			$	1,501		0.07	%		$	8,159,890			$	1,809		0.09	%
Regular savings		1,058,284				55		0.02	%			1,016,661				55		0.02	%
Time deposits (5)		2,109,131				4,281		0.81	%			2,270,217				5,374		0.95	%
Total interest-bearing deposits		11,512,825				5,837		0.20	%			11,446,768				7,238		0.25	%
Other borrowings (6)		395,984				3,054		3.06	%			399,855				3,066		3.08	%
Total interest-bearing liabilities		11,908,809			$	8,891		0.30	%			11,846,623			$	10,304		0.35	%
Noninterest-bearing liabilities:
Demand deposits		5,205,319										5,053,773
Other liabilities		224,410										274,718
Total liabilities		17,338,538										17,175,114
Stockholders' equity		2,718,032										2,747,864
Total liabilities and stockholders' equity	$	20,056,570									$	19,922,978
Net interest income					$	140,652									$	143,692
Interest rate spread								3.01	%									3.11	%
Cost of funds								0.19	%									0.23	%
Net interest margin								3.12	%									3.23	%

(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 $4.2 million and $4.1 million for the three months ended September 30, 2021 and June 30, 2021, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5)	Interest expense on time deposits includes amortization of $8,000 for the three months ended September 30, 2021 and accretion of $12,000 for the three months ended June 30, 2021, for the fair market value adjustments related to acquisitions.
(6)	Interest expense on borrowings includes $203,000 and $202,000 for the three months ended September 30, 2021 and June 30, 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 Q3 2021?

Atlantic Union reported a net income of $71.6 million and earnings per share of $0.94 for Q3 2021.

How did the net interest income change for Atlantic Union in Q3 2021?

Net interest income decreased to $137.5 million in Q3 2021, down from $140.5 million in Q2 2021.

What was the status of nonperforming assets for AUB in Q3 2021?

Nonperforming assets remained stable at 0.28% of total loans as of September 30, 2021.

What dividend did Atlantic Union declare in Q3 2021?

The company declared a dividend of $0.28 per share, consistent with the previous quarter.

How much did AUB repurchase in shares during Q3 2021?

Atlantic Union repurchased 2.3 million shares for a total of $82.7 million during Q3 2021.