Atlantic Union Bankshares Reports Third Quarter Results

Nachrichtenquelle: globenewswire
22.10.2020, 13:30  |  156   |   |   

RICHMOND, Va., Oct. 22, 2020 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $58.3 million and diluted earnings per common share of $0.74 for its third quarter ended September 30, 2020. Pre-tax pre-provision operating earnings(1) were $78.6 million for the third quarter ended September 30, 2020.

Net income available to common shareholders was $96.1 million and diluted earnings per common share were $1.22 for the nine months ended September 30, 2020. Pre-tax pre-provision operating earnings (1) were $217.3 million for the nine months ended September 30, 2020.

“During the third quarter, Atlantic Union delivered strong financial results and continued to demonstrate the resilience, agility and innovation required to successfully navigate through the challenging economic, credit and interest rate headwinds of COVID-19,” said John C. Asbury, president and chief executive officer of Atlantic Union.

“Operating under the mantra of soundness, profitability and growth – in that order of priority - Atlantic Union continues to be in a strong financial position with ample liquidity and a well-fortified capital base. Our financial performance has and will continue to benefit from the decisive actions the Company has taken to reduce its expense run rate to more closely align with revenue growth pressures driven by the lower for longer interest rate environment. These expense reduction actions include the consolidation of 14 branches in September, or nearly 10% of our branch network.

Looking forward, we believe that Atlantic Union will emerge from the challenges of COVID-19 as a stronger company that is well positioned to generate sustainable, profitable growth and is committed to leveraging the Atlantic Union franchise to build long term value for our shareholders.”

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

During 2020, 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 have been adversely impacted by the COVID-19 global pandemic (“COVID-19”). The Company processed over 11,000 PPP loans, which totaled $1.7 billion with a recorded investment of $1.6 billion as of September 30, 2020, which included unamortized deferred fees of $32.6 million. The loans carry a 1% interest rate.

Expense Reduction Measures

During 2020, the Company undertook several actions, including the consolidation of 14 branches, which was completed in September 2020, to reduce expenses in light of the current and expected operating environment. These actions resulted in expenses during the third quarter of 2020 of approximately $2.6 million, primarily related to lease termination costs and real estate write-downs.


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

NET INTEREST INCOME

For the third quarter of 2020, net interest income was $137.4 million, an increase from $137.3 million reported in the second quarter of 2020. Net interest income (FTE)(1) was $140.3 million in the third quarter of 2020, an increase of $172,000 from the second quarter of 2020. The third quarter net interest margin decreased 15 basis points to 3.08% from 3.23% in the previous quarter, while the net interest margin (FTE)(1) decreased 15 basis points to 3.14% from 3.29% during the same period. The decreases in the net interest margin and net interest margin (FTE) were principally due to a 31 basis point decrease in the yield on earning assets (FTE)(1) offset by a 16 basis point decrease in cost of funds. The decline in the Company’s earning asset yields was driven by lower loan accretion income, an increase in the earning asset mix of lower yielding investment securities and the impact of lower market interest rates. The cost of funds decline was driven by lower deposit costs and wholesale borrowing costs driven by lower interest rate environment and a favorable funding mix.

The Company’s net interest margin (FTE) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting decreased $2.7 million from the prior quarter to $3.7 million for the quarter ended September 30, 2020. The second and third quarters of 2020, 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, 2020   $ 9,528     50       (138 )   $ 9,440
For the quarter ended June 30, 2020     6,443     34       (140 )     6,337
For the quarter ended September 30, 2020     3,814     26       (167 )     3,673
For the remaining three months of 2020 (estimated)     2,530     23       (187 )     2,366
For the years ending (estimated):                            
2021     9,242     14       (807 )     8,449
2022     7,449     (43 )     (829 )     6,577
2023     5,346     (32 )     (852 )     4,462
2024     4,334     (4 )     (877 )     3,453
2025     3,248     (1 )     (900 )     2,347
Thereafter     14,485           (9,873 )     4,612
Total remaining acquisition accounting fair value adjustments at September 30, 2020     46,634     (43 )     (14,325 )     32,266

ASSET QUALITY

Overview
During the third quarter of 2020, the Company experienced a slight decrease in nonperforming assets (“NPAs”). Past due loan levels as a percentage of total loans held for investment at September 30, 2020 were higher than past due loan levels at June 30, 2020 and lower than past due loan levels at September 30, 2019. The increase in past due loan levels from June 30, 2020 was primarily within the 30-59 days past due category. Net charge-off levels and the provision for loan losses for the third quarter of 2020 decreased from the second quarter of 2020.

Loan Modifications for Borrowers Affected by COVID-19
On March 22, 2020, the five federal bank regulatory agencies and the Conference of State Bank Supervisors issued joint guidance (subsequently revised on April 7, 2020) with respect to loan modifications for borrowers affected by COVID-19 (the “March 22 Joint Guidance”). The March 22 Joint Guidance encourages banks, savings associations, and credit unions to make loan modifications for borrowers affected by COVID-19 and, importantly, assures those financial institutions that they will not (i) receive supervisory criticism for such prudent loan modifications and (ii) be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. The federal banking regulators have confirmed with the Financial Accounting Standards Board (or FASB) that short-term loan modifications made on a good faith basis in response to COVID-19 to borrowers who were current (i.e., less than 30 days past due on contractual payments) when the modification program was implemented are not considered TDRs.


(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

In addition, Section 4013 of the CARES Act provides banks, savings associations, and credit unions with the ability to make loan modifications related to COVID-19 without categorizing the loan as a TDR or conducting the analysis to make the determination, which is intended to streamline the loan modification process. Any such suspension is effective for the term of the loan modification; however, the suspension is only permitted for loan modifications made during the effective period of Section 4013 and only for those loans that were not more than thirty days past due as of December 31, 2019.

The Company has made certain loan modifications pursuant to the March 22 Joint Guidance or Section 4013 of the CARES Act and as of September 30, 2020 approximately $769.6 million remain under their modified terms, a decline of $831.3 million as compared to June 30, 2020. The majority of the Company’s modifications as of September 30, 2020 were in the commercial real estate portfolios.

Nonperforming Assets
At September 30, 2020, NPAs totaled $43.2 million, a decrease of $839,000 from June 30, 2020. NPAs as a percentage of total outstanding loans at September 30, 2020 were 0.30%, a decrease of 1 basis point from 0.31% at June 30, 2020. Excluding the impact of the PPP loans(1), NPAs as a percentage of total outstanding loans were 0.34%, a decrease of 1 basis point from June 30, 2020.

The Company’s adoption of current expected credit loss (“CECL”) on January 1, 2020 resulted in a change in the accounting and reporting related to purchased credit impaired (“PCI”) loans, which are now defined as purchased credit deteriorated (“PCD”) and evaluated at the loan level instead of being evaluated in pools under PCI accounting.   All prior period nonaccrual and past due loan metrics discussed herein have not been restated for CECL accounting and exclude PCI-related loan balances.

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, 
    2020   2020   2020   2019   2019
Nonaccrual loans   $ 39,023   $ 39,624   $ 44,022   $ 28,232   $ 30,032
Foreclosed properties     4,159     4,397     4,444     4,708     6,385
Total nonperforming assets   $ 43,182   $ 44,021   $ 48,466   $ 32,940   $ 36,417

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, 
    2020   2020   2020   2019   2019
Beginning Balance   $ 39,624     $ 44,022     $ 28,232     $ 30,032     $ 27,462  
Net customer payments     (2,803 )     (6,524 )     (3,451 )     (5,741 )     (3,612 )
Additions     2,790       3,206       6,059       5,631       8,327  
Impact of CECL adoption                 14,381              
Charge-offs     (588 )     (1,088 )     (1,199 )     (1,690 )     (884 )
Loans returning to accruing status           8                   (1,103 )
Transfers to foreclosed property                             (158 )
Ending Balance   $ 39,023     $ 39,624     $ 44,022     $ 28,232     $ 30,032  

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, 
    2020   2020   2020   2019   2019
Beginning Balance   $ 4,397     $ 4,444     $ 4,708     $ 6,385     $ 6,506  
Additions of foreclosed property                 615       62       645  
Valuation adjustments                 (44 )     (375 )     (62 )
Proceeds from sales     (254 )     (55 )     (854 )     (1,442 )     (737 )
Gains (losses) from sales     16       8       19       78       33  
Ending Balance   $ 4,159     $ 4,397     $ 4,444     $ 4,708     $ 6,385  



(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

Past Due Loans
Past due loans still accruing interest totaled $50.9 million or 0.35% of total loans held for investment at September 30, 2020, compared to $40.5 million or 0.28% of total loans held for investment at June 30, 2020, and $55.1 million or 0.45% of total loans held for investment at September 30, 2019. Excluding the impact of the PPP loans(1), past due loans still accruing interest were 0.40% of total loans held for investment at September 30, 2020, compared to 0.32% of total loans held for investment at June 30, 2020. The increase in past due loans in the third quarter of 2020 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 owner occupied commercial real estate, commercial & industrial, and residential 1-4 family – consumer portfolios.

Of the total past due loans still accruing interest, $15.6 million or 0.11% of total loans held for investment were loans past due 90 days or more at September 30, 2020, compared to $19.3 million or 0.13% of total loans held for investment at June 30, 2020, and $12.0 million or 0.10% of total loans held for investment at September 30, 2019.

Net Charge-offs
For the third quarter of 2020, net charge-offs were $1.4 million, or 0.04% of total average loans on an annualized basis, compared to $3.3 million, or 0.09%, for the second quarter of 2020, and $7.7 million, or 0.25%, for the third quarter last year. Excluding the impact of the PPP loans(1), net charge-offs were 0.04% of total average loans on an annualized basis, compared to 0.10% for the second quarter of 2020. The majority of net charge-offs in the third quarter of 2020 were related to the third-party consumer loan portfolio.

Provision for Credit Losses
The provision for credit losses for the third quarter of 2020 was $6.6 million, a decrease of $27.6 million compared to the previous quarter and a decrease of $2.5 million compared to the same quarter in 2019. The provision for credit losses for the third quarter of 2020 consisted of $5.6 million in provision for loan losses and $1.0 million in provision for unfunded commitment.

Allowance for Credit Losses (“ACL”)
At September 30, 2020, the ACL was $186.1 million and included an allowance for loan and lease losses (“ALLL”) of $174.1 million and a reserve for unfunded commitments (“RUC”) of $12.0 million. The ACL increased $5.1 million from June 30, 2020, primarily due to the continued economic uncertainty related to COVID-19.

The ALLL increased $4.1 million and the RUC increased $1.0 million from June 30, 2020. The ALLL as a percentage of the total loan portfolio was 1.21% at September 30, 2020 and 1.19% at June 30, 2020. The ACL as percentage of total loans was 1.29% at September 30, 2020 and 1.26% at June 30, 2020. When excluding PPP loans(1), which are 100% guaranteed by the SBA, the ALLL as a percentage of adjusted loans increased 2 basis points to 1.36% from the prior quarter and the ACL as a percentage of adjusted loans increased 4 basis points to 1.46% from the prior quarter. The ratio of the ALLL to nonaccrual loans was 446.2% at September 30, 2020, compared to 429.0% at June 30, 2020.


(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.

NONINTEREST INCOME

Noninterest income decreased $1.5 million to $34.4 million for the quarter ended September 30, 2020 from $35.9 million in the prior quarter primarily driven by a $10.3 million gain on sale of investment securities recorded during the second quarter and a decline of $2.3 million in loan-related interest rate swap income due to lower transaction volumes during the third quarter, which were significantly offset by increases in several other non-interest income categories. These positive offsets include an increase in mortgage banking income of $3.1 million primarily due to increased mortgage loan origination volumes due to the current low interest rate environment. In addition, in the third quarter of 2020, $1.7 million in unrealized gains were recognized related to equity method investments that experienced unrealized losses during the second quarter, bank owned life insurance income increased $1.4 million primarily related to death benefit proceeds received during the quarter, and service charges on deposit accounts increased $1.1 million primarily due to higher NSF and overdraft fees.

NONINTEREST EXPENSE

Noninterest expense decreased $9.6 million to $93.2 million for the quarter ended September 30, 2020 from $102.8 million in the prior quarter primarily driven by the recognition of approximately $10.3 million loss on debt extinguishment in the second quarter resulting from the prepayment of approximately $200.0 million in long-term FHLB advances. In addition, during the third quarter of 2020, there was a decline in the FDIC assessment of approximately $1.1 million due to the positive impact of PPP loans on the Company’s assessment rate. Noninterest expense also included approximately $2.6 million in costs related to the Company’s expense reduction plans, including the closure of 14 branches in September, approximately $639,000 in costs related to the Company’s response to COVID-19, and an increase in marketing expenses related to donations made by the Company to support organizations that fight the injustices of inequality and contribute to change in our communities.

INCOME TAXES

The effective tax rate for the three months ended September 30, 2020 was 15.3% compared to 15.2% for the three months ended June 30, 2020.

BALANCE SHEET

At September 30, 2020, total assets were $19.9 billion, an increase of $178.3 million, or approximately 3.6% (annualized), from June 30, 2020, and an increase of $2.5 billion, or approximately 14.3% from September 30, 2019. The increase in assets from the prior quarter was driven by an increase in the Company’s securities portfolio partially offset by a reduction in cash balances while growth from the prior year was primarily a result of both organic and PPP loan growth.

At September 30, 2020, loans held for investment (net of deferred fees and costs) were $14.4 billion, an increase of $74.6 million, or 2.1% (annualized), from June 30, 2020, while average loans increased $401.0 million, or 11.4% (annualized), from the prior quarter. Loans held for investment (net of deferred fees and costs) increased $2.1 billion, or 16.9% from September 30, 2019, while quarterly average loans increased $2.1 billion, or 17.3% from the prior year. Excluding the effects of the PPP(2), loans held for investment (net of deferred fees and costs) increased $475.6 million, or 3.9%, while quarterly average loans increased $480.2 million, or 3.9% from the prior year.

At September 30, 2020, total deposits were $15.6 billion, a slight decrease of $29.0 million, or approximately 0.7% (annualized), from June 30, 2020, while average deposits increased $620.1 million, or 16.5% (annualized), from the prior quarter. Deposits increased $2.5 billion, or 19.4% from September 30, 2019, while quarterly average deposits increased $2.8 billion, or 21.6% from the prior year. The increase in deposits from the prior year was primarily due to the impact of PPP loan related deposits and government stimulus.

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

               
       September 30,       June 30,       September 30,   
    2020   2020   2019  
Common equity Tier 1 capital ratio (1)   10.04 %   9.88 %   10.48 %
Tier 1 capital ratio (1)   11.18 %   11.03 %   10.48 %
Total capital ratio (1)   13.92 %   13.81 %   12.93 %
Leverage ratio (Tier 1 capital to average assets) (1)   8.82 %   8.82 %   8.94 %
Common equity to total assets   12.52 %   12.41 %   14.48 %
Tangible common equity to tangible assets (2)   7.91 %   7.74 %   9.23 %



(1) All ratios at September 30, 2020 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.
(2) 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.

On June 9, 2020, the Company issued and sold 6,900,000 depositary shares, each representing a 1/400th ownership interest in a share of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A (“Series A Preferred Stock”), par value $10.00 per share of Series A Preferred Stock, with a liquidation preference of $10,000 per share of Series A Preferred Stock. The net proceeds received from the issuance of the Series A Preferred Stock was approximately $166.4 million, after deducting the underwriting discount and other offering expenses payable by the Company. The Series A Preferred Stock is included in Tier 1 capital.  

During the third quarter of 2020, the Company declared and paid cash dividends of $0.25 per common share, consistent with the second quarter of 2020 and the third quarter of 2019. During the third quarter of 2020, the Board also declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $156.60 per share (equivalent to $0.39 per outstanding depositary share). On July 10, 2019, the Company announced that its Board of Directors had authorized a share repurchase program (effective July 8, 2019) to purchase up to $150 million of the Company’s common stock through June 30, 2021 in open market transactions or privately negotiated transactions. On March 20, 2020, the Company suspended its share repurchase program, which had $20 million remaining in the authorization when it was suspended. The Company repurchased an aggregate of approximately 3.7 million shares, at an average price of $35.48 per share, under the authorization prior to the suspension.

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 135 branches and approximately 155 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Middleburg Financial is a brand name used by Atlantic Union Bank and certain affiliates when providing trust, wealth management, private banking, and investment advisory products and services. Certain non-bank affiliates of Atlantic Union Bank include: Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour, & Brown, Inc., which provide investment advisory services; Middleburg Investment Services, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2020 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call on Thursday, October 22, 2020 at 9:00 a.m. Eastern Time during which management will review the third quarter 2020 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (866) 2204170; international callers wishing to participate may do so by dialing (864) 6635235. The conference ID number is 9936549.   Management will conduct a listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/s65vcnnd

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 of the quarter ended September 30, 2020, 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:

  • 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 relating to loan loss recognition (CECL);
  • 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 relating to fintech;
  • 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 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, including whether there is a resurgence of COVID-19 infections in connection with the seasonal flu, 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;
  • 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 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;
  • 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 10K for the year ended December 31, 2019 and comparable “Risk Factors” sections of the Company’s Quarterly Reports on Form 10Q 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
       09/30/20      06/30/20      09/30/19   09/30/20   09/30/19
Results of Operations   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest and dividend income   $ 157,414   $ 162,867   $ 178,345   $ 491,607   $ 525,122  
Interest expense     20,033     25,562     41,744     81,913     122,379  
Net interest income     137,381     137,305     136,601     409,694     402,743  
Provision for credit losses     6,558     34,200     9,100     100,954     18,192  
Net interest income after provision for credit losses     130,823     103,105     127,501     308,740     384,551  
Noninterest income     34,407     35,932     48,106     99,245     103,621  
Noninterest expenses     93,222     102,814     111,687     291,681     324,022  
Income before income taxes     72,008     36,223     63,920     116,304     164,150  
Income tax expense     11,008     5,514     10,724     17,506     26,330  
Income from continuing operations     61,000     30,709     53,196     98,798     137,820  
Discontinued operations, net of tax             42         (128 )
Net income     61,000     30,709     53,238     98,798     137,692  
Dividends on preferred stock     2,691             2,691      
Net income available to common shareholders   $ 58,309   $ 30,709   $ 53,238   $ 96,107   $ 137,692  
                               
Interest earned on earning assets (FTE) (1)   $ 160,315   $ 165,672   $ 181,149   $ 500,069   $ 533,590  
Net interest income (FTE) (1)     140,282     140,110     139,405     418,156     411,211  
Total revenue (FTE) (1)     174,689     176,042     187,511     517,401     514,832  
Pre-tax pre-provision operating earnings (8)     78,566     70,423     76,630     217,258     214,695  
                               
Key Ratios                              
Earnings per common share, diluted   $ 0.74   $ 0.39   $ 0.65   $ 1.22   $ 1.72  
Return on average assets (ROA)     1.23 %     0.64 %     1.23 %   0.70 %     1.11
Return on average equity (ROE)     9.16 %     4.96 %     8.35 %   5.19 %     7.58
Efficiency ratio     54.27 %     59.35 %     60.47 %   57.31 %     63.99
Net interest margin     3.08 %     3.23 %     3.57 %   3.26 %     3.66
Net interest margin (FTE) (1)     3.14 %     3.29 %     3.64 %   3.32 %     3.74
Yields on earning assets (FTE) (1)     3.59 %     3.90 %     4.73 %   3.97 %     4.85
Cost of interest-bearing liabilities     0.64 %     0.84 %     1.45 %   0.90 %     1.47
Cost of deposits     0.39 %     0.53 %     0.95 %   0.58 %     0.92
Cost of funds     0.45 %     0.61 %     1.09 %   0.65 %     1.11
                               
Operating Measures (4)                              
Net operating earnings   $ 61,000   $ 30,709   $ 56,057   $ 98,798   $ 163,665  
Net operating earnings available to common shareholders     58,309     30,709     56,057     96,107     163,665  
Operating earnings per share, diluted   $ 0.74   $ 0.39   $ 0.69   $ 1.22   $ 2.04  
Operating ROA     1.23 %     0.64 %     1.29 %   0.70 %     1.32
Operating ROE     9.16 %     4.96 %     8.80 %   5.19 %     9.01
Operating ROTCE (2) (3)     16.49 %     9.46 %     15.64 %   9.64 %     16.18
Operating efficiency ratio (FTE) (1)(7)     51.04 %     56.00 %     55.12 %   53.92 %     53.92
                               
Per Share Data                              
Earnings per common share, basic   $ 0.74   $ 0.39   $ 0.65   $ 1.22   $ 1.72  
Earnings per common share, diluted     0.74     0.39     0.65     1.22     1.72  
Cash dividends paid per common share     0.25     0.25     0.25     0.75     0.71  
Market value per share     21.37     23.16     37.25     21.37     37.25  
Book value per common share     31.86     31.32     31.29     31.86     31.29  
Tangible book value per common share (2)     19.13     18.54     18.80     19.13     18.80  
Price to earnings ratio, diluted     7.26     14.77     14.44     13.11     16.20  
Price to book value per common share ratio     0.67     0.74     1.19     0.67     1.19  
Price to tangible book value per common share ratio (2)     1.12     1.25     1.98     1.12     1.98  
Weighted average common shares outstanding, basic     78,714,353     78,711,765     81,769,193     78,904,792     80,120,725  
Weighted average common shares outstanding, diluted     78,725,346     78,722,690     81,832,868     78,921,108     80,183,113  
Common shares outstanding at end of period     78,718,850     78,713,056     81,147,896     78,718,850     81,147,896  


                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
       09/30/20      06/30/20      09/30/19   09/30/20   09/30/19  
Capital Ratios   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Common equity Tier 1 capital ratio (5)     10.04 %     9.88 %     10.48 %   10.04 %     10.48 %
Tier 1 capital ratio (5)     11.18 %     11.03 %     10.48 %   11.18 %     10.48 %
Total capital ratio (5)     13.92 %     13.81 %     12.93 %   13.92 %     12.93 %
Leverage ratio (Tier 1 capital to average assets) (5)     8.82 %     8.82 %     8.94 %   8.82 %     8.94 %
Common equity to total assets     12.52 %     12.41 %     14.48 %   12.52 %     14.48 %
Tangible common equity to tangible assets (2)     7.91 %     7.74 %     9.23 %   7.91 %     9.23 %
                                 
Financial Condition                                     
Assets   $ 19,930,650   $ 19,752,317   $ 17,441,035   $ 19,930,650   $ 17,441,035  
Loans held for investment     14,383,215     14,308,646     12,306,997     14,383,215     12,306,997  
Securities     3,102,217     2,672,557     2,607,748     3,102,217     2,607,748  
Earning Assets     17,885,975     17,680,876     15,365,753     17,885,975     15,365,753  
Goodwill     935,560     935,560     929,815     935,560     929,815  
Amortizable intangibles, net     61,068     65,105     78,241     61,068     78,241  
Deposits     15,576,098     15,605,139     13,044,712     15,576,098     13,044,712  
Borrowings     1,314,322     1,125,030     1,549,181     1,314,322     1,549,181  
Stockholders' equity     2,660,885     2,618,226     2,525,031     2,660,885     2,525,031  
Tangible common equity (2)     1,497,900     1,451,197     1,516,975     1,497,900     1,516,975  
                                 
Loans held for investment, net of deferred fees and costs                                     
Construction and land development   $ 1,207,190   $ 1,247,939   $ 1,201,149   $ 1,207,190   $ 1,201,149  
Commercial real estate - owner occupied     2,107,333     2,067,087     1,979,052     2,107,333     1,979,052  
Commercial real estate - non-owner occupied     3,497,929     3,455,125     3,198,580     3,497,929     3,198,580  
Multifamily real estate     731,582     717,719     659,946     731,582     659,946  
Commercial & Industrial     3,536,249     3,555,971     2,058,133     3,536,249     2,058,133  
Residential 1-4 Family - Commercial     696,944     715,384     721,185     696,944     721,185  
Residential 1-4 Family - Consumer     830,144     841,051     913,245     830,144     913,245  
Residential 1-4 Family - Revolving     618,320     627,765     660,963     618,320     660,963  
Auto     387,417     380,053     328,456     387,417     328,456  
Consumer     276,023     311,362     386,848     276,023     386,848  
Other Commercial     494,084     389,190     199,440     494,084     199,440  
Total loans held for investment   $ 14,383,215   $ 14,308,646   $ 12,306,997   $ 14,383,215   $ 12,306,997  
                                 
Deposits                                     
NOW accounts   $ 3,460,480   $ 3,618,523   $ 2,515,777   $ 3,460,480   $ 2,515,777  
Money market accounts     4,269,696     4,158,325     3,737,426     4,269,696     3,737,426  
Savings accounts     861,685     824,164     739,505     861,685     739,505  
Time deposits of $250,000 and over     633,252     689,693     717,090     633,252     717,090  
Other time deposits     1,930,320     1,968,474     2,179,740     1,930,320     2,179,740  
Time deposits     2,563,572     2,658,167     2,896,830     2,563,572     2,896,830  
Total interest-bearing deposits   $ 11,155,433   $ 11,259,179   $ 9,889,538   $ 11,155,433   $ 9,889,538  
Demand deposits     4,420,665     4,345,960     3,155,174     4,420,665     3,155,174  
Total deposits   $ 15,576,098   $ 15,605,139   $ 13,044,712   $ 15,576,098   $ 13,044,712  
                                 
Averages                                     
Assets   $ 19,785,167   $ 19,157,238   $ 17,203,328   $ 18,837,580   $ 16,639,041  
Loans held for investment     14,358,666     13,957,711     12,240,254     13,639,401     11,821,612  
Loans held for sale     45,201     56,846     75,558     50,902     46,095  
Securities     2,891,210     2,648,967     2,660,270     2,721,161     2,681,463  
Earning assets     17,748,152     17,106,132     15,191,792     16,809,423     14,700,019  
Deposits     15,580,469     14,960,386     12,812,211     14,632,709     12,250,199  
Time deposits     2,579,991     2,667,268     2,769,574     2,667,267     2,554,058  
Interest-bearing deposits     11,260,244     10,941,368     9,803,624     10,875,752     9,408,182  
Borrowings     1,183,839     1,344,994     1,623,681     1,324,457     1,753,276  
Interest-bearing liabilities     12,444,083     12,286,362     11,427,305     12,200,209     11,161,458  
Stockholders' equity     2,648,777     2,489,969     2,528,435     2,541,856     2,429,912  
Tangible common equity (2)     1,483,848     1,446,948     1,517,400     1,469,918     1,442,831  


                               
    As of & For Three Months Ended   As of & For Nine Months Ended
       09/30/20      06/30/20      09/30/19   09/30/20   09/30/19
Asset Quality   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)
Allowance for Credit Losses (ACL)                                   
Beginning balance, Allowance for loan and lease losses (ALLL)   $ 169,977   $ 141,043   $ 42,463   $ 42,294   $ 41,045  
Add: Day 1 impact from adoption of CECL                 47,484      
Add: Recoveries     1,566     1,411     1,574     5,137     4,940  
Less: Charge-offs     2,978     4,677     9,317     14,806     21,190  
Add: Provision for loan losses     5,557     32,200     9,100     94,013     19,025  
Ending balance, ALLL   $ 174,122   $ 169,977   $ 43,820   $ 174,122   $ 43,820  
                               
Beginning balance, Reserve for unfunded commitment (RUC)   $ 11,000   $ 9,000   $ 1,100     900     900  
Add: Day 1 impact from adoption of CECL                 4,160      
Add: Impact of acquisition accounting                     1,033  
Add: Provision for unfunded commitments     1,000     2,000         6,940     (833 )
Ending balance, RUC   $ 12,000   $ 11,000   $ 1,100     12,000     1,100  
Total ACL   $ 186,122   $ 180,977   $ 44,920   $ 186,122   $ 44,920  
                               
ACL / total outstanding loans     1.29 %     1.26 %     0.36 %   1.29 %     0.36
ACL / total adjusted loans(9)     1.46 %     1.42 %     0.36 %   1.46 %     0.36
ALLL / total outstanding loans     1.21 %     1.19 %     0.36 %   1.21 %     0.36
ALLL / total adjusted loans(9)     1.36 %     1.34 %     0.36 %     1.36 %     0.36
Net charge-offs / total average loans     0.04 %     0.09 %     0.25 %   0.09 %     0.18
Net charge-offs / total adjusted average loans(9)     0.04 %     0.10 %     0.25 %   0.11 %     0.18
Provision for loan losses/ total average loans     0.15 %     0.93 %     0.29 %   0.92 %     0.22
Provision for loan losses/ total adjusted average loans(9)     0.17 %     1.02 %     0.29 %   1.03 %     0.22
  `                            
Nonperforming Assets(6)                                   
Construction and land development   $ 3,520   $ 3,977   $ 7,785   $ 3,520   $ 7,785  
Commercial real estate - owner occupied     9,267     8,924     5,684     9,267     5,684  
Commercial real estate - non-owner occupied     1,992     1,877     381     1,992     381  
Multifamily real estate     33     33         33      
Commercial & Industrial     1,592     2,708     1,585     1,592     1,585  
Residential 1-4 Family - Commercial     5,743     5,784     3,879     5,743     3,879  
Residential 1-4 Family - Consumer     12,620     12,029     8,292     12,620     8,292  
Residential 1-4 Family - Revolving     3,664     3,626     1,641     3,664     1,641  
Auto     517     584     604     517     604  
Consumer     75     81     84     75     84  
Other Commercial         1     97         97  
Nonaccrual loans   $ 39,023   $ 39,624   $ 30,032   $ 39,023   $ 30,032  
Foreclosed property     4,159     4,397     6,385     4,159     6,385  
Total nonperforming assets (NPAs)   $ 43,182   $ 44,021   $ 36,417   $ 43,182   $ 36,417  
Construction and land development   $ 93   $ 473   $ 171   $ 93   $ 171  
Commercial real estate - owner occupied     1,726     7,851     2,571     1,726     2,571  
Commercial real estate - non-owner occupied     168     878     36     168     36  
Multifamily real estate     359     366     1,212     359     1,212  
Commercial & Industrial     604     178     265     604     265  
Residential 1-4 Family - Commercial     5,298     578     916     5,298     916  
Residential 1-4 Family - Consumer     4,495     5,099     3,815     4,495     3,815  
Residential 1-4 Family - Revolving     2,276     1,995     1,674     2,276     1,674  
Auto     315     181     183     315     183  
Consumer     327     1,157     1,163     327     1,163  
Other Commercial         499     30         30  
Loans ≥ 90 days and still accruing   $ 15,661   $ 19,255   $ 12,036   $ 15,661   $ 12,036  
Total NPAs and loans ≥ 90 days   $ 58,843   $ 63,276   $ 48,453   $ 58,843   $ 48,453  
NPAs / total outstanding loans     0.30 %     0.31 %     0.30 %   0.30 %     0.30
NPAs / total adjusted loans(9)     0.34 %     0.35 %     0.30 %     0.34 %     0.30
NPAs / total assets     0.22 %     0.22 %     0.21 %   0.22 %     0.21
ALLL / nonaccrual loans     446.20 %     428.97 %     145.91 %   446.20 %     145.91
ALLL/ nonperforming assets     403.23 %     386.13 %     120.33 %   403.23 %     120.33
                                    


                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
       09/30/20      06/30/20      09/30/19   09/30/20   09/30/19  
Past Due Detail(6)   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Construction and land development   $ 2,625   $ 1,683   $ 1,062   $ 2,625   $ 1,062  
Commercial real estate - owner occupied     4,924     1,679     4,977     4,924     4,977  
Commercial real estate - non-owner occupied     1,291     930     5,757     1,291     5,757  
Multifamily real estate             107         107  
Commercial & Industrial     4,322     1,602     2,079     4,322     2,079  
Residential 1-4 Family - Commercial     1,236     480     1,842     1,236     1,842  
Residential 1-4 Family - Consumer     2,998     1,229     1,527     2,998     1,527  
Residential 1-4 Family - Revolving     2,669     1,924     4,965     2,669     4,965  
Auto     1,513     1,176     1,787     1,513     1,787  
Consumer     1,020     844     2,000     1,020     2,000  
Other Commercial     613     456     579     613     579  
Loans 30-59 days past due   $ 23,211   $ 12,003   $ 26,682   $ 23,211   $ 26,682  
Construction and land development   $ 223   $ 294   $ 351   $ 223   $ 351  
Commercial real estate - owner occupied     1,310     430         1,310      
Commercial real estate - non-owner occupied     1,371     369     1,878     1,371     1,878  
Multifamily real estate             164         164  
Commercial & Industrial     1,448     296     1,946     1,448     1,946  
Residential 1-4 Family - Commercial     937     2,105     3,081     937     3,081  
Residential 1-4 Family - Consumer     3,976     3,817     5,182     3,976     5,182  
Residential 1-4 Family - Revolving     1,141     1,048     1,747     1,141     1,747  
Auto     453     290     407     453     407  
Consumer     772     561     1,666     772     1,666  
Other Commercial     427         9     427     9  
Loans 60-89 days past due   $ 12,058   $ 9,210   $ 16,431   $ 12,058   $ 16,431  
                                 
Past Due and still accruing   $ 50,930   $ 40,468   $ 55,149   $ 50,930   $ 55,149  
Past Due and still accruing / total adjusted loans(9)     0.40 %     0.32 %     0.45 %     0.40 %     0.45 %  
                                 
Troubled Debt Restructurings                                     
Performing   $ 17,076   $ 15,303   $ 15,156   $ 17,076   $ 15,156  
Nonperforming     7,045     5,042     3,582     7,045     3,582  
Total troubled debt restructurings   $ 24,121   $ 20,345   $ 18,738   $ 24,121   $ 18,738  
                                 
Alternative Performance Measures (non-GAAP)                                     
Net interest income (FTE)                                     
Net interest income (GAAP)   $ 137,381   $ 137,305   $ 136,601   $ 409,694   $ 402,743  
FTE adjustment     2,901     2,805     2,804     8,462     8,468  
Net interest income (FTE) (non-GAAP) (1)   $ 140,282   $ 140,110   $ 139,405   $ 418,156   $ 411,211  
Noninterest income (GAAP)     34,407     35,932     48,106     99,245     103,621  
Total revenue (FTE) (non-GAAP) (1)   $ 174,689   $ 176,042   $ 187,511   $ 517,401   $ 514,832  
                                 
Average earning assets   $ 17,748,152   $ 17,106,132   $ 15,191,792   $ 16,809,423   $ 14,700,019  
Net interest margin     3.08 %     3.23 %     3.57 %   3.26 %     3.66 %
Net interest margin (FTE) (1)     3.14 %     3.29 %     3.64 %   3.32 %     3.74 %
                                 
Tangible Assets                                     
Ending assets (GAAP)   $ 19,930,650   $ 19,752,317   $ 17,441,035   $ 19,930,650   $ 17,441,035  
Less: Ending goodwill     935,560     935,560     929,815     935,560     929,815  
Less: Ending amortizable intangibles     61,068     65,105     78,241     61,068     78,241  
Ending tangible assets (non-GAAP)   $ 18,934,022   $ 18,751,652   $ 16,432,979   $ 18,934,022   $ 16,432,979  
                                 
Tangible Common Equity (2)                                     
Ending equity (GAAP)   $ 2,660,885   $ 2,618,226   $ 2,525,031   $ 2,660,885   $ 2,525,031  
Less: Ending goodwill     935,560     935,560     929,815     935,560     929,815  
Less: Ending amortizable intangibles     61,068     65,105     78,241     61,068     78,241  
Less: Perpetual preferred stock     166,357     166,364         166,357      
Ending tangible common equity (non-GAAP)   $ 1,497,900   $ 1,451,197   $ 1,516,975   $ 1,497,900   $ 1,516,975  
                                 
Average equity (GAAP)   $ 2,648,777   $ 2,489,969   $ 2,528,435   $ 2,541,856   $ 2,429,912  
Less: Average goodwill     935,560     935,560     930,525     935,560     906,476  
Less: Average amortizable intangibles     63,016     67,136     80,510     67,130     80,605  
Less: Average perpetual preferred stock     166,353     40,325     -     69,248     -  
Average tangible common equity (non-GAAP)   $ 1,483,848   $ 1,446,948   $ 1,517,400   $ 1,469,918   $ 1,442,831  
                                 


                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
     09/30/20     06/30/20    09/30/19    09/30/20    09/30/19  
    (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Operating Measures (4)                                     
Net income (GAAP)   $ 61,000   $ 30,709   $ 53,238   $ 98,798   $ 137,692  
Plus: Merger and rebranding-related costs, net of tax             2,819         25,973  
Net operating earnings (non-GAAP)     61,000     30,709     56,057     98,798     163,665  
Less: Dividends on preferred stock     2,691             2,691      
Net operating earnings available to common shareholders (non-GAAP)   $ 58,309   $ 30,709   $ 56,057   $ 96,107   $ 163,665  
                                 
Noninterest expense (GAAP)   $ 93,222   $ 102,814   $ 111,687   $ 291,681   $ 324,022  
Less: Merger Related Costs             2,435         26,928  
Less: Rebranding Costs             1,133         5,553  
Less: Amortization of intangible assets     4,053     4,223     4,764     12,676     13,919  
Operating noninterest expense (non-GAAP)   $ 89,169   $ 98,591   $ 103,355   $ 279,005   $ 277,622  
                                 
Net interest income (FTE) (non-GAAP) (1)   $ 140,282   $ 140,110   $ 139,405   $ 418,156   $ 411,211  
Noninterest income (GAAP)     34,407     35,932     48,106     99,245     103,621  
Total revenue (FTE) (non-GAAP) (1)   $ 174,689   $ 176,042   $ 187,511   $ 517,401   $ 514,832  
                                 
Efficiency ratio     54.27 %     59.35 %     60.47 %   57.31 %     63.99 %
Operating efficiency ratio (FTE) (1)(7)     51.04 %     56.00 %     55.12 %   53.92 %     53.92 %
                                 
Operating ROTCE (2)(3)(4)                                     
Net operating earnings available to common shareholders (non-GAAP)   $ 58,309   $ 30,709   $ 56,057   $ 96,107   $ 163,665  
Plus: Amortization of intangibles, tax effected     3,202     3,336     3,764     10,014     10,996  
Net operating earnings available to common shareholders before amortization of intangibles (non-GAAP)   $ 61,511   $ 34,045   $ 59,821   $ 106,121   $ 174,661  
                                 
Average tangible common equity (non-GAAP)   $ 1,483,848   $ 1,446,948   $ 1,517,400   $ 1,469,918   $ 1,442,831  
Operating return on average tangible common equity (non-GAAP)     16.49 %     9.46 %     15.64 %   9.64 %     16.18 %
                                 
Pre-tax pre-provision operating earnings (8)                                
Net income (GAAP)   $ 61,000   $ 30,709   $ 53,238   $ 98,798   $ 137,692  
Plus: Provision for credit losses     6,558     34,200     9,100     100,954     18,192  
Plus: Income tax expense     11,008     5,514     10,724     17,506     26,330  
Plus: Merger and rebranding-related costs             3,568         32,481  
Pre-tax pre-provision operating earnings (non-GAAP)   $ 78,566   $ 70,423   $ 76,630   $ 217,258   $ 214,695  
                                 
Paycheck Protection Program adjustment impact (9)                                
Loans held for investment (net of deferred fees and costs)(GAAP)   $ 14,383,215   $ 14,308,646   $ 12,306,997   $ 14,383,215   $ 12,306,997  
Less: PPP adjustments     1,600,577     1,598,718         1,600,577      
Loans held for investment (net of deferred fees and costs),net adjustments, excluding PPP (non-GAAP)   $ 12,782,638   $ 12,709,928   $ 12,306,997   $ 12,782,638   $ 12,306,997  
                                 
Average loans held for investment (GAAP)   $ 14,358,666   $ 13,957,711   $ 12,240,254   $ 13,639,401   $ 11,821,612  
Less: Average PPP adjustments     1,638,204     1,273,883         1,457,091      
Average loans held for investment, net adjustments, excluding PPP (non-GAAP)   $ 12,720,462   $ 12,683,828   $ 12,240,254   $ 12,182,310   $ 11,821,612  
                                 
Mortgage Origination Volume                                     
Refinance Volume   $ 145,718   $ 163,737   $ 62,230   $ 377,837   $ 102,069  
Construction Volume     6,448     12,966     3,915     27,251     4,275  
Purchase Volume     130,185     83,248     78,113     277,925     194,445  
Total Mortgage loan originations   $ 282,351   $ 259,951   $ 144,258   $ 683,013   $ 300,789  
% of originations that are refinances     51.6 %     63.0 %     43.1 %   55.3 %     33.9 %
                                 
Wealth                                     
Assets under management ("AUM")   $ 5,455,268   $ 5,271,288   $ 5,451,796   $ 5,455,268   $ 5,451,796  
                                 
Other Data                                     
End of period full-time employees     1,883     1,973     1,946     1,883     1,946  
Number of full-service branches     135     149     149     135     149  
Number of full automatic transaction machines ("ATMs")     157     169     169     157     169  



(1) These are non-GAAP financial measures. Net interest income (FTE) and total revenue (FTE), which are used in computing net interest margin (FTE) and 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 common equity is used in the calculation of certain profitability, capital, and per share ratios. The Company believes 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. Operating measures exclude merger and rebranding-related costs unrelated to the Company’s normal operations. The Company believes these measures are useful to investors as they exclude certain costs resulting from acquisition activity and allow investors to more clearly see the combined economic results of the organization’s operations.
(5) All ratios at September 30, 2020 are estimates and subject to change pending the Company’s filing of its FR Y9C. All other periods are presented as filed.
(6) Amounts are not directly comparable due to the Company’s adoption of CECL on January 1, 2020. Prior to January 1, 2020, nonaccrual and past due loan information excluded PCI-related loan balances. These balances also reflect the impact of the CARES Act and March 22 Joint Guidance, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.
(7) The operating efficiency ratio (FTE) excludes the amortization of intangible assets and merger-related costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this measure is useful to investors as it excludes certain costs resulting from acquisition activity allowing for greater comparability with others in the industry and allowing investors to more clearly see the combined economic results of the organization’s operations.
(8) This is a non-GAAP financial measure. Pre-tax pre-provision earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the recently adopted CECL methodology, merger and rebranding-related costs unrelated to the Company’s normal operations, and income tax expense. The Company believes this measure is useful to investors as it excludes certain costs resulting from acquisition activity as well as the potentially volatile provision measure, and allows for greater comparability with others in the industry and for investors to more clearly see 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 the first half of 2020. 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.


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

                       
  September 30,   June 30,   December 31,   September 30,
  2020   2020      2019      2019
ASSETS   (unaudited)     (unaudited)     (audited)     (unaudited)
Cash and cash equivalents:                      
Cash and due from banks $ 178,563   $ 202,947   $ 163,050   $ 218,584
Interest-bearing deposits in other banks   335,111     636,211     234,810     370,673
Federal funds sold   7,292     2,862     38,172     2,663
Total cash and cash equivalents   520,966     842,020     436,032     591,920
Securities available for sale, at fair value   2,443,340     2,019,164     1,945,445     1,918,859
Securities held to maturity, at carrying value   546,661     547,561     555,144     556,579
Restricted stock, at cost   112,216     105,832     130,848     132,310
Loans held for sale, at fair value   52,607     55,067     55,405     72,208
Loans held for investment, net of deferred fees and costs   14,383,215     14,308,646     12,610,936     12,306,997
Less allowance for loan and lease losses   174,122     169,977     42,294     43,820
Total loans held for investment, net   14,209,093     14,138,669     12,568,642     12,263,177
Premises and equipment, net   156,934     164,321     161,073     168,122
Goodwill   935,560     935,560     935,560     929,815
Amortizable intangibles, net   61,068     65,105     73,669     78,241
Bank owned life insurance   325,538     327,075     322,917     320,779
Other assets   566,667     551,943     378,255     409,025
Total assets $ 19,930,650   $ 19,752,317   $ 17,562,990   $ 17,441,035
LIABILITIES                      
Noninterest-bearing demand deposits $ 4,420,665   $ 4,345,960   $ 2,970,139   $ 3,155,174
Interest-bearing deposits   11,155,433     11,259,179     10,334,842     9,889,538
Total deposits   15,576,098     15,605,139     13,304,981     13,044,712
Securities sold under agreements to repurchase   91,086     77,216     66,053     67,260
Other short-term borrowings   175,200         370,200     344,600
Long-term borrowings   1,048,036     1,047,814     1,077,495     1,137,321
Other liabilities   379,345     403,922     231,159     322,111
Total liabilities   17,269,765     17,134,091     15,049,888     14,916,004
Commitments and contingencies                      
STOCKHOLDERS' EQUITY                      
Preferred stock, $10.00 par value   173     173        
Common stock, $1.33 par value   104,141     104,126     105,827     107,330
Additional paid-in capital   1,914,640     1,911,985     1,790,305     1,831,667
Retained earnings   579,269     540,638     581,395     545,665
Accumulated other comprehensive income (loss)   62,662     61,304     35,575     40,369
Total stockholders' equity   2,660,885     2,618,226     2,513,102     2,525,031
Total liabilities and stockholders' equity $ 19,930,650   $ 19,752,317   $ 17,562,990   $ 17,441,035
                       
Common shares outstanding   78,718,850     78,713,056     80,001,185     81,147,896
Common shares authorized   200,000,000     200,000,000     200,000,000     200,000,000
Preferred shares outstanding   17,250     17,250     -     -
Preferred shares authorized   500,000     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   Nine Months Ended
  September 30,   June 30,   September 30,   September 30,   September 30,
  2020      2020      2019      2020      2019
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Interest and dividend income:                            
Interest and fees on loans $ 138,402   $ 143,234     $ 156,651   $ 432,763   $ 459,603  
Interest on deposits in other banks   137     155       1,030     1,154     2,047  
Interest and dividends on securities:                            
Taxable   10,275     11,267       12,625     33,170     39,059  
Nontaxable   8,600     8,211       8,039     24,520     24,413  
Total interest and dividend income   157,414     162,867       178,345     491,607     525,122  
Interest expense:                            
Interest on deposits   15,568     19,861       30,849     63,943     84,088  
Interest on short-term borrowings   72     186       2,200     1,598     14,313  
Interest on long-term borrowings   4,393     5,515       8,695     16,372     23,978  
Total interest expense   20,033     25,562       41,744     81,913     122,379  
Net interest income   137,381     137,305       136,601     409,694     402,743  
Provision for credit losses   6,558     34,200       9,100     100,954     18,192  
Net interest income after provision for credit losses   130,823     103,105       127,501     308,740     384,551  
Noninterest income:                            
Service charges on deposit accounts   6,041     4,930       7,675     18,549     22,331  
Other service charges, commissions and fees   1,621     1,354       1,513     4,600     4,879  
Interchange fees   1,979     1,697       2,108     5,300     12,765  
Fiduciary and asset management fees   6,045     5,515       6,082     17,543     16,834  
Mortgage banking income   8,897     5,826       3,374     16,744     7,614  
Gains on securities transactions   18     10,339       7,104     12,293     7,306  
Bank owned life insurance income   3,421     2,027       2,062     7,498     6,191  
Loan-related interest rate swap fees   3,170     5,484       5,480     12,602     10,656  
Other operating income   3,215     (1,240 )     12,708     4,116     15,045  
Total noninterest income   34,407     35,932       48,106     99,245     103,621  
Noninterest expenses:                            
Salaries and benefits   49,000     49,896       49,718     149,013     148,116  
Occupancy expenses   7,441     7,224       7,493     21,798     22,427  
Furniture and equipment expenses   3,895     3,406       3,719     11,042     10,656  
Printing, postage, and supplies   904     999       1,268     3,194     3,763  
Technology and data processing   6,564     6,454       5,787     19,187     17,203  
Professional services   2,914     2,989       2,681     9,211     8,269  
Marketing and advertising expense   2,631     2,043       2,600     7,413     7,891  
FDIC assessment premiums and other insurance   1,811     2,907       381     7,578     5,620  
Other taxes   4,124     4,120       3,971     12,364     11,779  
Loan-related expenses   2,314     2,501       2,566     7,512     7,250  
OREO and credit-related expenses   413     411       1,005     1,512     3,162  
Amortization of intangible assets   4,053     4,223       4,764     12,676     13,919  
Training and other personnel costs   746     876       1,618     3,192     4,240  
Merger-related costs             2,435         26,928  
Rebranding expense             1,133         5,553  
Loss on debt extinguishment       10,306       16,397     10,306     16,397  
Other expenses   6,412     4,459       4,151     15,683     10,849  
Total noninterest expenses   93,222     102,814       111,687     291,681     324,022  
Income from continuing operations before income taxes   72,008     36,223       63,920     116,304     164,150  
Income tax expense   11,008     5,514       10,724     17,506     26,330  
Income from continuing operations $ 61,000   $ 30,709     $ 53,196   $ 98,798   $ 137,820  
Discontinued operations:                            
Income (loss) from operations of discontinued mortgage segment $   $     $ 56   $   $ (173 )
Income tax expense (benefit)             14         (45 )
Income (loss) on discontinued operations             42         (128 )
Net income   61,000     30,709       53,238     98,798     137,692  
Dividends on preferred stock   2,691     -       -     2,691     -  
Net income available to common shareholders $ 58,309   $ 30,709     $ 53,238   $ 96,107   $ 137,692  
                             
Basic earnings per common share $ 0.74   $ 0.39     $ 0.65   $ 1.22   $ 1.72  
Diluted earnings per common share $ 0.74   $ 0.39     $ 0.65   $ 1.22   $ 1.72  

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

                               
  For the Quarter Ended
  September 30, 2020   June 30, 2020
  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 $ 1,738,033     $ 10,275   2.35 %   $ 1,626,426     $ 11,267   2.79 %
Tax-exempt   1,153,177       10,886   3.76 %     1,022,541       10,394   4.09 %
Total securities   2,891,210       21,161   2.91 %     2,648,967       21,661   3.29 %
Loans, net (3) (4)   14,358,666       138,635   3.84 %     13,957,711       143,339   4.13 %
Other earning assets   498,276       519   0.41 %     499,454       672   0.54 %
Total earning assets   17,748,152     $ 160,315   3.59 %     17,106,132     $ 165,672   3.90 %
Allowance for credit losses   (174,171 )               (150,868 )          
Total non-earning assets   2,211,186                 2,201,974            
Total assets $ 19,785,167               $ 19,157,238            
                               
Liabilities and Stockholders' Equity:                              
Interest-bearing deposits:                              
Transaction and money market accounts $ 7,834,317     $ 4,684   0.24 %   $ 7,474,210     $ 7,303   0.39 %
Regular savings   845,936       128   0.06 %     799,890       123   0.06 %
Time deposits (5)   2,579,991       10,756   1.66 %     2,667,268       12,435   1.88 %
Total interest-bearing deposits   11,260,244       15,568   0.55 %     10,941,368       19,861   0.73 %
Other borrowings (6)   1,183,839       4,465   1.50 %     1,344,994       5,701   1.70 %
Total interest-bearing liabilities   12,444,083     $ 20,033   0.64 %     12,286,362     $ 25,562   0.84 %
                               
Noninterest-bearing liabilities:                              
Demand deposits   4,320,225                 4,019,018            
Other liabilities   372,082                 361,889            
Total liabilities   17,136,390                 16,667,269            
Stockholders' equity   2,648,777                 2,489,969            
Total liabilities and stockholders' equity $ 19,785,167               $ 19,157,238            
Net interest income       $ 140,282             $ 140,110    
                               
Interest rate spread             2.95 %               3.06 %
Cost of funds             0.45 %               0.61 %
Net interest margin             3.14 %               3.29 %



(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 $3.8 million and $6.4 million for the three months ended September 30, 2020 and June 30, 2020, respectively, in accretion of the fair market value adjustments related to acquisitions.
(5) Interest expense on time deposits includes $26,000 and $34,000 for the three months ended September 30, 2020 and June 30, 2020, respectively, in accretion of the fair market value adjustments related to acquisitions.
(6) Interest expense on borrowings includes $167,000 and $140,000 for the three months ended September 30, 2020 and June 30, 2020, in amortization of the fair market value adjustments related to acquisitions.

Contact:
Robert M. Gorman - (804) 5237828
Executive Vice President / Chief Financial Officer 


Atlantic Union Bankshares Corporation Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Atlantic Union Bankshares Reports Third Quarter Results RICHMOND, Va., Oct. 22, 2020 (GLOBE NEWSWIRE) - Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) today reported net income available to common shareholders of $58.3 million and diluted earnings per common …

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