Atlantic Union Bankshares Reports First Quarter Financial Results
RICHMOND, Va.--(BUSINESS WIRE)--April 24, 2025--
Atlantic Union Bankshares Corporation (the "Company" or "Atlantic Union") $(AUB)$ reported net income available to common shareholders of $46.9 million and basic and diluted earnings per common share of $0.53 and $0.52, respectively, for the first quarter of 2025 and adjusted operating earnings available to common shareholders(1) of $51.6 million and adjusted diluted operating earnings per common share(1) of $0.57 for the first quarter of 2025.
Merger with Sandy Spring Bancorp, Inc. ("Sandy Spring") and Full Physical Settlement of the Forward Sale Agreements
On April 1, 2025, the Company completed its merger with Sandy Spring. Under the terms of the merger agreement, at the effective time of the merger, each outstanding share of Sandy Spring common stock, other than shares of restricted Sandy Spring common stock and shares of Sandy Spring common stock held by the Company or Sandy Spring, was converted into the right to receive 0.900 shares of the Company's common stock, with cash to be paid in lieu of fractional shares. With the acquisition of Sandy Spring, the Company acquired 53 branches, strengthening the Company's presence in Virginia and Maryland and creating the largest regional banking franchise headquartered in the lower Mid-Atlantic.
Also on April 1, 2025, the Company physically settled in full the previously disclosed forward sale agreements between the Company and Morgan Stanley & Co. LLC, as forward purchaser, by delivering 11,338,028 shares of the Company's common stock to the forward purchaser. The Company received net proceeds from such sale of shares of the Company's common stock and full physical settlement of the forward sale agreements, before expenses, of approximately $385.0 million.
During the first quarter of 2025, the Company incurred merger-related costs of approximately $4.9 million related to the merger with Sandy Spring. Because the merger closed on April 1, 2025, the historical consolidated financial results of Sandy Spring are not included in the Company's financial results for the quarter ended March 31, 2025.
"It was an eventful first quarter for Atlantic Union," said John C. Asbury, president and chief executive officer of Atlantic Union. "We were pleased to close our acquisition of Sandy Spring on April 1st, a full quarter ahead of our original expectations due to our receipt of required regulatory approvals earlier than anticipated. The earlier close is expected to accelerate the achievement of our anticipated cost savings from the transaction.
It was also a good start to the year as we experienced net interest margin expansion and average loan and customer deposit balance growth for the quarter. Asset quality also remained solid with negligible net charge offs. Over the quarter, however, the economic outlook became more uncertain, financial markets became more volatile, and governmental policies changed abruptly. Consequently, we took proactive steps to fortify our loan loss reserves in recognition of the increased uncertainty surrounding the macroeconomic environment.
Atlantic Union is a story of transformation from a Virginia community bank to the largest regional bank headquartered in the lower Mid-Atlantic with operations throughout Virginia, Maryland and a growing presence in North Carolina. Operating under the mantra of soundness, profitability, and growth -- in that order of priority -- Atlantic Union remains committed to generating sustainable, profitable growth, and building long-term value for our shareholders."
NET INTEREST INCOME
For the first quarter of 2025, net interest income was $184.2 million, an increase of $916,000 from $183.2 million in the fourth quarter of 2024. Net interest income - fully taxable equivalent ("FTE")(1) was $187.9 million in the first quarter of 2025, an increase of $882,000 from $187.0 million in the fourth quarter of 2024. The increases from the prior quarter in both net interest income and net interest income (FTE)(1) are due primarily to the impact of lower deposit costs, driven by the decrease in the federal funds rate, reflecting the full quarter impact of the Federal Reserve lowering rates three times between September and December in 2024, resulting in the current federal funds target rate range of 4.25% to 4.5%. The increases were partially offset by a decrease in interest income on loans held for investment ("LHFI") due to lower loan yields, primarily driven by the impact of the interest rate cuts on our variable rate loans, as well as the lower day count in the first quarter.
For the first quarter of 2025, both the Company's net interest margin and the net interest margin (FTE)(1) increased 12 basis points to 3.38% and 3.45%, respectively, compared to the fourth quarter of 2024, due to lower cost of funds on interest bearing liabilities, partially offset by a decline in earning assets yields. Cost of funds decreased by 18 basis points to 2.23% for the first quarter of 2025, compared to the fourth quarter of 2024, reflecting lower borrowing and deposit costs. Earning asset yields for the first quarter of 2025 decreased 6 basis points to 5.68%, compared to the fourth quarter of 2024, primarily due to lower yields on loans, as a result of the decreases in the Federal Fund rates.
The Company's net interest margin (FTE)(1) includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $12.6 million for the quarters ended March 31, 2025 and December 31, 2024. The impact of accretion and amortization for the periods presented are reflected in the following table (dollars in thousands):
Loan Deposit Borrowings
Accretion Amortization Amortization Total
----------- ---------------- ---------------- ---------
For the
quarter
ended
December
31, 2024 $ 13,668 $ (775) $ (288) $12,605
For the
quarter
ended
March 31,
2025 13,286 (415) (287) 12,584
ASSET QUALITY
Overview
At March 31, 2025, nonperforming assets ("NPAs") as a percentage of total LHFI was 0.38%, an increase of 6 basis points from the prior quarter and included nonaccrual loans of $69.0 million. The increase in NPAs was primarily due to one new nonaccrual loan within the commercial and industrial portfolio of $9.4 million. Accruing past due loans as a percentage of total LHFI totaled 27 basis points at March 31, 2025, a decrease of 4 basis points from December 31, 2024, and a decrease of 5 basis points from March 31, 2024. Net charge-offs were 0.05% of total average LHFI (annualized) for the first quarter of 2025, an increase of 2 basis points compared to December 31, 2024, and a decrease of 8 basis points from March 31, 2024. The allowance for credit losses ("ACL") totaled $209.0 million at March 31, 2025, a $15.3 million increase from the prior quarter, primarily reflecting the impacts of the increased uncertainty in the economic outlook.
Nonperforming Assets
At March 31, 2025, NPAs totaled $69.4 million, compared to $58.4 million in the prior quarter. The following table shows a summary of NPA balances at the quarters ended (dollars in thousands):
March December September June
31, 31, 30, 30, March 31,
2025 2024 2024 2024 2024
------ ------ ------- ------ ------
Nonaccrual
loans $69,015 $ 57,969 $ 36,847 $35,913 $36,389
Foreclosed
properties 404 404 404 230 29
------ ------ ------- ------ ------
Total
nonperforming
assets $69,419 $ 58,373 $ 37,251 $36,143 $36,418
====== ====== ======= ====== ======
The following table shows the activity in nonaccrual loans for the quarters ended (dollars in thousands):
March December September
31, 31, 30, June 30, March 31,
2025 2024 2024 2024 2024
------ ------- ------ ------ ------
Beginning
Balance $57,969 $ 36,847 $ 35,913 $36,389 $36,860
Net customer
payments (898) (11,491) (2,219) (6,293) (1,583)
Additions 13,197 34,446 5,347 6,831 5,047
Charge-offs (1,253) (1,231) (542) (759) (3,935)
Loans
returning to
accruing
status -- (602) (1,478) (54) --
Transfers to
foreclosed
property -- -- (174) (201) --
------ ------- ------ ------ ------
Ending Balance $69,015 $ 57,969 $ 36,847 $35,913 $36,389
====== ======= ====== ====== ======
Past Due Loans
At March 31, 2025, past due loans still accruing interest totaled $50.0 million or 0.27% of total LHFI, compared to $57.7 million or 0.31% of total LHFI at December 31, 2024, and $50.7 million or 0.32% of total LHFI at March 31, 2024. The decrease in past due loan levels at March 31, 2025 from December 31, 2024 was primarily within the commercial and industrial, commercial real estate non-owner occupied, and residential 1-4 family -- consumer portfolios. Of the total past due loans still accruing interest, $6.8 million or 0.04% of total LHFI were past due 90 days or more at March 31, 2025, compared to $14.1 million or 0.08% of total LHFI at December 31, 2024, and $11.4 million or 0.07% of total LHFI at March 31, 2024.
Allowance for Credit Losses
At March 31, 2025, the ACL was $209.0 million and included an allowance for loan and lease losses ("ALLL") of $193.8 million and a reserve for unfunded commitments ("RUC") of $15.2 million. The ACL at March 31, 2025 increased $15.3 million from December 31, 2024, primarily reflecting the impacts of the increased uncertainty in the economic outlook. The RUC at March 31, 2025 increased $208,000 from December 31, 2024.
The ACL as a percentage of total LHFI was 1.13% at March 31, 2025, compared to 1.05% at December 31, 2024. The ALLL as a percentage of total LHFI was 1.05% at March 31, 2025, compared to 0.97% at December 31, 2024.
Net Charge-offs
Net charge-offs were $2.3 million or 0.05% of total average LHFI on an annualized basis for the first quarter of 2025, compared to $1.4 million or 0.03% (annualized) for the fourth quarter of 2024, and $4.9 million or 0.13% (annualized) for the first quarter of 2024.
Provision for Credit Losses
For the first quarter of 2025, the Company recorded a provision for credit losses of $17.6 million, compared to $17.5 million in the prior quarter, and $8.2 million in the first quarter of 2024.
NONINTEREST INCOME
Noninterest income decreased $6.0 million to $29.2 million for the first quarter of 2025 from $35.2 million in the prior quarter, primarily driven by a $2.7 million decrease in loan-related interest rate swap fees due to seasonally lower transaction volumes, and a $2.5 million decrease in other operating income primarily due to a decline in equity method investment income and lower gains on the sale of lease equipment.
NONINTEREST EXPENSE
Noninterest expense increased $4.5 million to $134.2 million for the first quarter of 2025 from $129.7 million in the prior quarter, primarily driven by a $4.1 million increase in salaries and benefits expense due primarily to seasonal increases of $4.7 million in payroll taxes and 401(k) contribution expenses in the first quarter, a $1.3 million increase in other expenses primarily driven by OREO-related gains recognized in the prior quarter, a $1.0 million increase in franchise and other taxes, a $805,000 increase in technology and data processing expense primarily driven by expense related to an upgrade to the consumer online banking system in the first quarter, and a $616,000 increase in occupancy expenses primarily driven by seasonal winter weather-related expenses. These increases were partially offset by a $2.1 million decrease in merger-related costs and a $666,000 decrease in professional services fees.
INCOME TAXES
The Company's effective tax rate for both quarters ended March 31, 2025 and December 31, 2024 was 19.0%.
BALANCE SHEET
At March 31, 2025, total assets were $24.6 billion, an increase of $47.3 million or approximately 0.8% (annualized) from December 31, 2024, and an increase of $3.3 billion or approximately 15.2% from March 31, 2024. Total assets were relatively consistent with the prior quarter, and increased from the prior year primarily due to the American National Bankshares Inc. ("American National") acquisition.
At March 31, 2025, LHFI totaled $18.4 billion, a decrease of $42.9 million or 0.9% (annualized) from December 31, 2024, and an increase of $2.6 billion or 16.3% from March 31, 2024. Quarterly average LHFI totaled $18.4 billion at March 31, 2025, an increase of $61.1 million or 1.3% (annualized) from the prior quarter, and an increase of $2.7 billion or 17.1% from March 31, 2024. LHFI decreased from the prior quarter primarily due to declines in the construction and land development and commercial and industrial loan portfolios, partially offset by increases in the multifamily real estate and non-owner occupied commercial real estate loan portfolios. The increase from the prior year was primarily due to the American National acquisition.
At March 31, 2025, total investments were $3.4 billion, an increase of $56.2 million or 6.8% (annualized) from December 31, 2024, and an increase of $263.8 million or 8.4% from March 31, 2024. The increase compared to the prior quarter was primarily due to purchases of mortgage-backed securities and an increase in market value of the Company's existing available-for-sale ("AFS") securities portfolio. The increase compared to the prior year was primarily due to the American National acquisition. AFS securities totaled $2.5 billion at March 31, 2025, $2.4 billion at December 31, 2024, and $2.2 billion at March 31, 2024. Total net unrealized losses on the AFS securities portfolio were $382.0 million at March 31, 2025, compared to $402.6 million at December 31, 2024, and $410.9 million at March 31, 2024. Held to maturity securities are carried at cost and totaled $821.1 million at March 31, 2025, $803.9 million at December 31, 2024, and $828.9 million at March 31, 2024 and had net unrealized losses of $48.6 million at March 31, 2025, $44.5 million at December 31, 2024, and $37.6 million at March 31, 2024.
At March 31, 2025, total deposits were $20.5 billion, an increase of $105.3 million or 2.1% (annualized) from the prior quarter. Average deposits at March 31, 2025 decreased $291.4 million or 5.7% (annualized) from the prior quarter. Total deposits at March 31, 2025 increased $3.2 billion or 18.7% from March 31, 2024 and average deposits at March 31, 2025 increased $3.3 billion or 19.4% from March 31, 2024. The increase in deposit balances from the prior quarter was primarily due to an increase in demand deposits of $194.1 million, partially offset by a decrease in brokered deposits. The increase from the prior year was primarily due to the American National acquisition.
At March 31, 2025, total borrowings were $475.7 million, a decrease of $58.9 million from December 31, 2024, and a decrease of $582.0 million from March 31, 2024. At March 31, 2025 average borrowings were $525.9 million, a decrease of $17.2 million from December 31, 2024, and a decrease of $486.9 million from March 31, 2024. The decreases in average borrowings from the prior quarter and the prior year were primarily due to repayment of short-term Federal Home Loan Bank advances using funds from customer deposit growth.
The following table shows the Company's capital ratios at the quarters ended:
March 31, December 31, March 31,
2025 2024 2024
--------- ------------ ---------
Common equity Tier 1 capital
ratio (2) 10.07% 9.96% 9.86%
Tier 1 capital ratio (2) 10.87% 10.76% 10.77%
Total capital ratio (2) 13.88% 13.61% 13.62%
Leverage ratio (Tier 1
capital to average assets)
(2) 9.45% 9.29% 9.62%
Common equity to total
assets 12.26% 12.11% 11.14%
Tangible common equity to
tangible assets (1) 7.39% 7.21% 7.05%
_______________________
(1) These are financial measures not calculated in accordance with generally
accepted accounting principles ("GAAP"). For a reconciliation of these
non-GAAP financial measures, see the "Alternative Performance Measures
(non-GAAP)" section of the Key Financial Results.
(2) All ratios at March 31, 2025 are estimates and subject to change pending
the Company's filing of its FR Y9-C. All other periods are presented as
filed.
During the first quarter of 2025, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the fourth quarter of 2024 and the first quarter of 2024. During the first quarter of 2025, the Company also declared and paid cash dividends of $0.34 per common share, which is the same as the fourth quarter of 2024 and a $0.02, or an approximately 6.0%, increase from the dividend in the first quarter of 2024.
ABOUT ATLANTIC UNION BANKSHARES CORPORATION
Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has branches and ATMs located throughout Virginia and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.
FIRST QUARTER 2025 EARNINGS RELEASE CONFERENCE CALL
The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Thursday, April 24, 2025, during which management will review our financial results for the first quarter 2025 and provide an update on our recent activities.
The listen-only webcast and the accompanying slides can be accessed at:
https://edge.media-server.com/mmc/p/3hko8gh5.
For analysts who wish to participate in the conference call, please register at the following URL:
https://register-conf.media-server.com/register/BI7cdca0ca853c407f8506fb4f9b4f3640. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.
A replay of the webcast, and the accompanying slides, will be available on the Company's website for 90 days at: https://investors.atlanticunionbank.com/.
NON-GAAP FINANCIAL MEASURES
In reporting the results as of and for the period ended March 31, 2025, we have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which we use to prepare our financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. We use the non-GAAP financial measures discussed herein in our analysis of our performance. Management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance the comparability of our results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in our underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see "Alternative Performance Measures (non-GAAP)" in the tables within the section "Key Financial Results."
FORWARD-LOOKING STATEMENTS
This press release and statements by our management may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury's quotations, statements regarding the recently completed acquisition of Sandy Spring, including expectations with regard to the benefits of the Sandy Spring acquisition; statements regarding our business, financial and operating results, including our deposit base and funding; the impact of future economic conditions, anticipated changes in the interest rate environment and the related impacts on our net interest margin, changes in economic conditions; management's beliefs regarding our liquidity, capital resources, asset quality, CRE loan portfolio and our customer relationships; and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," "intend," "will," "may," "view," "opportunity," "seek to," "potential," "continue," "confidence," or words of similar meaning or other statements concerning opinions or judgment of the Company and our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of or changes in:
-- market interest rates and their related impacts on macroeconomic
conditions, customer and client behavior, our funding costs and our loan
and securities portfolios;
-- economic conditions, including inflation and recessionary conditions and
their related impacts on economic growth and customer and client
behavior;
-- U.S. and global trade policies and tensions, including change in, or the
imposition of, tariffs and/or trade barriers and the economic impacts,
volatility and uncertainty resulting therefrom, and geopolitical
instability;
-- volatility in the financial services sector, including failures or rumors
of failures of other depository institutions, along with actions taken by
governmental agencies to address such turmoil, and the effects on the
ability of depository institutions, including us, to attract and retain
depositors and to borrow or raise capital;
-- legislative or regulatory changes and requirements, including as part of
the regulatory reform agenda of the Trump administration, including
changes in federal, state or local tax laws and changes impacting the
rulemaking, supervision, examination and enforcement priorities of the
federal banking agencies;
-- the sufficiency of liquidity and changes in our capital position;
-- general economic and financial market conditions, in the United States
generally and particularly in the markets in which we operate and which
our loans are concentrated, including the effects of declines in real
estate values, an increase in unemployment levels, U.S. fiscal debt,
budget, and tax matters, and slowdowns in economic growth;
-- the diversion of management's attention from ongoing business operations
and opportunities due to our recent acquisition of Sandy Spring;
-- the impact of purchase accounting with respect to the Sandy Spring
acquisition, or any change in the assumptions used regarding the assets
acquired and liabilities assumed to determine the fair value and credit
marks;
-- the possibility that the anticipated benefits of our acquisition activity,
including our acquisitions of Sandy Spring and American National,
including anticipated cost savings and strategic gains, are not realized
when expected or at all, including as a result of the strength of the
economy, competitive factors in the areas where we do business, or as a
result of other unexpected factors or events, or with respect to our
acquisition of Sandy Spring, as a result of the impact of, or problems
arising from, the integration of the two companies;
-- the integration of the business and operations of Sandy Spring may take
longer or be more costly than anticipated;
-- potential adverse reactions or changes to business or employee
relationships, including those resulting from our acquisitions of Sandy
Spring and American National;
-- monetary, fiscal and regulatory policies of the U.S. government,
including policies of the U.S. Department of the Treasury and the Federal
Reserve;
-- the quality or composition of our loan or investment portfolios and
changes in these portfolios;
-- demand for loan products and financial services in our market areas;
-- our ability to manage our growth or implement our growth strategy;
-- the effectiveness of expense reduction plans;
-- the introduction of new lines of business or new products and services;
-- our ability to identify, recruit and retain key employees;
-- real estate values in our lending area;
-- changes in accounting principles, standards, rules, and interpretations,
and the related impact on our financial statements;
-- an insufficient ACL or volatility in the ACL resulting from the CECL
methodology, either alone or as that may be affected by changing economic
conditions, credit concentrations, inflation, changing interest rates, or
other factors;
-- concentrations of loans secured by real estate, particularly CRE;
-- the effectiveness of our credit processes and management of our credit
risk;
-- our ability to compete in the market for financial services and increased
competition from fintech companies;
-- technological risks and developments, and cyber threats, attacks, or
events;
-- operational, technological, cultural, regulatory, legal, credit, and
other risks associated with the exploration, consummation and integration
of potential future acquisitions, whether involving stock or cash
consideration;
-- the potential adverse effects of unusual and infrequently occurring
events, such as weather-related disasters, terrorist acts, geopolitical
conflicts or public health events (such as pandemics), and of
governmental and societal responses thereto; these potential adverse
effects may include, without limitation, adverse effects on the ability
of our borrowers to satisfy their obligations to us, on the value of
collateral securing loans, on the demand for our loans or our other
products and services, on supply chains and methods used to distribute
products and services, on incidents of cyberattack and fraud, on our
liquidity or capital positions, on risks posed by reliance on third-party
service providers, on other aspects of our business operations and on
financial markets and economic growth;
-- performance by our counterparties or vendors;
-- deposit flows;
-- the availability of financing and the terms thereof;
-- the level of prepayments on loans and mortgage-backed securities;
-- actual or potential claims, damages, and fines related to litigation or
government actions, which may result in, among other things, additional
costs, fines, penalties, restrictions on our business activities,
reputational harm, or other adverse consequences;
-- any event or development that would cause us to conclude that there was
an impairment of any asset, including intangible assets, such as
goodwill; and
-- other factors, many of which are beyond our control.
Please also refer to such other factors as discussed throughout Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10--K for the year ended December 31, 2024, and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise, except as required by law.
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
----------- ----------- -----------
Results of Operations
---------------------
Interest and
dividend income $ 305,836 $ 319,204 $ 262,915
Interest expense 121,672 135,956 115,090
---------- ---------- ----------
Net interest
income 184,164 183,248 147,825
Provision for
credit losses 17,638 17,496 8,239
---------- ---------- ----------
Net interest
income after
provision for
credit losses 166,526 165,752 139,586
Noninterest income 29,163 35,227 25,552
Noninterest
expenses 134,184 129,675 105,273
---------- ---------- ----------
Income before
income taxes 61,505 71,304 59,865
Income tax expense 11,687 13,519 10,096
---------- ---------- ----------
Net income 49,818 57,785 49,769
Dividends on
preferred stock 2,967 2,967 2,967
---------- ---------- ----------
Net income
available to
common
shareholders $ 46,851 $ 54,818 $ 46,802
========== ========== ==========
Interest earned on
earning assets
(FTE) (1) $ 309,593 $ 322,995 $ 266,636
Net interest
income (FTE) (1) 187,921 187,039 151,546
Total revenue
(FTE) (1) 217,084 222,266 177,098
Pre-tax
pre-provision
adjusted
operating
earnings (7) 84,185 95,796 70,815
Key Ratios
---------------------
Earnings per
common share,
diluted $ 0.52 $ 0.60 $ 0.62
Return on average
assets (ROA) 0.82% 0.92% 0.94%
Return on average
equity $(ROE)$ 6.35% 7.23% 7.79%
Return on average
tangible common
equity (ROTCE)
(2) (3) 12.04% 13.77% 13.32%
Efficiency ratio 62.90% 59.35% 60.72%
Efficiency ratio
(FTE) (1) 61.81% 58.34% 59.44%
Net interest
margin 3.38% 3.26% 3.11%
Net interest
margin (FTE) (1) 3.45% 3.33% 3.19%
Yields on earning
assets (FTE) (1) 5.68% 5.74% 5.62%
Cost of
interest-bearing
liabilities 2.97% 3.20% 3.23%
Cost of deposits 2.29% 2.48% 2.39%
Cost of funds 2.23% 2.41% 2.43%
Operating Measures
(4)
---------------------
Adjusted operating
earnings $ 54,542 $ 64,364 $ 51,994
Adjusted operating
earnings
available to
common
shareholders 51,575 61,397 49,027
Adjusted operating
earnings per
common share,
diluted $ 0.57 $ 0.67 $ 0.65
Adjusted operating
ROA 0.90% 1.03% 0.99%
Adjusted operating
ROE 6.95% 8.06% 8.14%
Adjusted operating
ROTCE (2) (3) 13.15% 15.30% 13.93%
Adjusted operating
efficiency ratio
(FTE) (1)(6) 57.02% 52.67% 56.84%
Per Share Data
---------------------
Earnings per
common share,
basic $ 0.53 $ 0.61 $ 0.62
Earnings per
common share,
diluted 0.52 0.60 0.62
Cash dividends
paid per common
share 0.34 0.34 0.32
Market value per
share 31.14 37.88 35.31
Book value per
common share(8) 33.79 33.40 31.88
Tangible book
value per common
share (2)(8) 19.32 18.83 19.27
Price to earnings
ratio, diluted 14.76 15.90 13.99
Price to book
value per common
share ratio (8) 0.92 1.13 1.11
Price to tangible
book value per
common share
ratio (2)(8) 1.61 2.01 1.83
Unvested shares of
restricted stock
awards(8) 806,420 658,001 645,540
Weighted average
common shares
outstanding,
basic 89,222,296 89,774,079 75,197,113
Weighted average
common shares
outstanding,
diluted 90,072,795 91,533,273 75,197,376
Common shares
outstanding at
end of period 89,340,541 89,770,231 75,381,740
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
----------- ----------- -----------
Capital Ratios
------------------------
Common equity Tier 1
capital ratio (5) 10.07% 9.96% 9.86%
Tier 1 capital ratio
(5) 10.87% 10.76% 10.77%
Total capital ratio
(5) 13.88% 13.61% 13.62%
Leverage ratio (Tier
1 capital to average
assets) (5) 9.45% 9.29% 9.62%
Common equity to
total assets 12.26% 12.11% 11.14%
Tangible common
equity to tangible
assets (2) 7.39% 7.21% 7.05%
Financial Condition
------------------------
Assets $24,632,611 $24,585,323 $21,378,120
LHFI (net of deferred
fees and costs) 18,427,689 18,470,621 15,851,628
Securities 3,405,206 3,348,971 3,141,416
Earning Assets 22,085,559 21,989,690 19,236,100
Goodwill 1,214,053 1,214,053 925,211
Amortizable
intangibles, net 79,165 84,563 17,288
Deposits 20,502,874 20,397,619 17,278,435
Borrowings 475,685 534,578 1,057,724
Stockholders' equity 3,185,216 3,142,879 2,548,928
Tangible common
equity (2) 1,725,641 1,677,906 1,440,072
Loans held for
investment, net of
deferred fees and costs
------------------------
Construction
and land
development $ 1,305,969 $ 1,731,108 $ 1,246,251
Commercial real
estate - owner
occupied 2,363,509 2,370,119 1,981,613
Commercial real
estate -
non-owner
occupied 5,072,694 4,935,590 4,225,018
Multifamily
real estate 1,531,547 1,240,209 1,074,957
Commercial &
Industrial 3,819,415 3,864,695 3,561,971
Residential 1-4
Family -
Commercial 738,388 719,425 515,667
Residential 1-4
Family -
Consumer 1,286,526 1,293,817 1,081,094
Residential 1-4
Family -
Revolving 778,527 756,944 616,951
Auto 279,517 316,368 440,118
Consumer 101,334 104,882 113,414
Other
Commercial 1,150,263 1,137,464 994,574
---------- ---------- ----------
Total LHFI $18,427,689 $18,470,621 $15,851,628
========== ========== ==========
Deposits
------------------------
Interest
checking
accounts $ 5,336,264 $ 5,494,550 $ 4,753,485
Money market
accounts 4,602,260 4,291,097 4,104,282
Savings
accounts 1,033,315 1,025,896 895,213
Customer
time
deposits of
$250,000
and over 1,141,311 1,202,657 721,155
Other
customer
time
deposits 2,810,070 2,888,476 2,293,800
---------- ---------- ----------
Time deposits 3,951,381 4,091,133 3,014,955
---------- ---------- ----------
Total
interest-bearing
customer
deposits 14,923,220 14,902,676 12,767,935
Brokered deposits 1,108,481 1,217,895 665,309
---------- ---------- ----------
Total
interest-bearing
deposits $16,031,701 $16,120,571 $13,433,244
Demand deposits 4,471,173 4,277,048 3,845,191
---------- ---------- ----------
Total deposits $20,502,874 $20,397,619 $17,278,435
========== ========== ==========
Averages
------------------------
Assets $24,678,974 $24,971,836 $21,222,756
LHFI (net of deferred
fees and costs) 18,428,710 18,367,657 15,732,599
Loans held for sale 8,172 12,606 9,142
Securities 3,387,627 3,442,340 3,153,556
Earning assets 22,108,618 22,373,970 19,089,393
Deposits 20,466,081 20,757,521 17,147,181
Time deposits 4,715,648 4,862,446 3,459,138
Interest-bearing
deposits 16,062,478 16,343,745 13,311,837
Borrowings 525,889 543,061 1,012,797
Interest-bearing
liabilities 16,588,367 16,886,806 14,324,634
Stockholders' equity 3,183,846 3,177,934 2,568,243
Tangible common
equity (2) 1,721,647 1,711,580 1,458,478
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
-------- -------- --------
Asset Quality
--------------------------
Allowance for Credit
Losses $(ACL.AU)$
--------------------------
Beginning balance,
Allowance for loan
and lease losses
(ALLL) $178,644 $160,685 $132,182
Add: Recoveries 607 2,816 977
Less: Charge-offs 2,885 4,255 5,894
Add: Provision for
loan losses 17,430 19,398 8,925
------- ------- -------
Ending balance, ALLL $193,796 $178,644 $136,190
------- ------- -------
Beginning balance,
Reserve for
unfunded commitment
(RUC) $ 15,041 $ 16,943 $ 16,269
Add: Provision for
unfunded
commitments 208 (1,902) (687)
------- ------- -------
Ending balance, RUC $ 15,249 $ 15,041 $ 15,582
------- ------- -------
Total ACL $209,045 $193,685 $151,772
======= ======= =======
ACL / total LHFI 1.13% 1.05% 0.96%
ALLL / total LHFI 1.05% 0.97% 0.86%
Net charge-offs /
total average LHFI
(annualized) 0.05% 0.03% 0.13%
Provision for loan
losses/ total
average LHFI
(annualized) 0.38% 0.42% 0.23%
Nonperforming Assets
--------------------------
Construction and
land
development $ 2,794 $ 1,313 $ 342
Commercial real
estate - owner
occupied 2,932 2,915 2,888
Commercial real
estate -
non-owner
occupied 1,159 1,167 10,335
Multifamily real
estate 124 132 --
Commercial &
Industrial 43,106 33,702 6,480
Residential 1-4
Family -
Commercial 1,610 1,510 1,790
Residential 1-4
Family -
Consumer 12,942 12,725 10,990
Residential 1-4
Family -
Revolving 3,593 3,826 3,135
Auto 641 659 429
Consumer 16 20 --
Other Commercial 98 -- --
------- ------- -------
Nonaccrual loans $ 69,015 $ 57,969 $ 36,389
Foreclosed property 404 404 29
------- ------- -------
Total nonperforming
assets (NPAs) $ 69,419 $ 58,373 $ 36,418
------- ------- -------
Construction and
land
development $ -- $ 120 $ 171
Commercial real
estate - owner
occupied 714 1,592 3,634
Commercial real
estate -
non-owner
occupied -- 6,874 1,197
Multifamily real
estate -- -- 144
Commercial &
Industrial 1,075 955 1,860
Residential 1-4
Family -
Commercial 1,091 949 1,030
Residential 1-4
Family -
Consumer 1,193 1,307 1,641
Residential 1-4
Family -
Revolving 2,397 1,710 1,343
Auto 196 284 284
Consumer 94 44 141
Other Commercial 22 308 --
------- ------- -------
LHFI >= 90 days and
still accruing $ 6,782 $ 14,143 $ 11,445
------- ------- -------
Total NPAs and LHFI
>= 90 days $ 76,201 $ 72,516 $ 47,863
------- ------- -------
NPAs / total LHFI 0.38% 0.32% 0.23%
NPAs / total assets 0.28% 0.24% 0.17%
ALLL / nonaccrual
loans 280.80% 308.17% 374.26%
ALLL/ nonperforming
assets 279.17% 306.04% 373.96%
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
----------- ----------- -----------
Past Due Detail
----------------------
Construction
and land
development $ 458 $ 38 $ 2,163
Commercial
real estate
- owner
occupied 1,455 2,080 3,663
Commercial
real estate
- non-owner
occupied 3,760 1,381 2,271
Multifamily
real estate 1,353 1,366 --
Commercial &
Industrial 4,192 9,405 5,540
Residential
1-4 Family -
Commercial 1,029 697 1,407
Residential
1-4 Family -
Consumer 11,005 5,928 6,070
Residential
1-4 Family -
Revolving 2,533 1,824 1,920
Auto 3,662 3,615 3,192
Consumer 479 804 418
Other
Commercial 6,875 2,167 8,187
---------- ---------- ----------
LHFI 30-59 days
past due $ 36,801 $ 29,305 $ 34,831
---------- ---------- ----------
Construction
and land
development $ 35 $ -- $ 1,097
Commercial
real estate
- owner
occupied 971 1,074 --
Commercial
real estate
- non-owner
occupied -- -- 558
Multifamily
real estate 981 -- --
Commercial &
Industrial 838 69 348
Residential
1-4 Family -
Commercial 19 665 98
Residential
1-4 Family -
Consumer 348 7,390 204
Residential
1-4 Family -
Revolving 1,137 2,110 1,477
Auto 539 456 330
Consumer 384 486 197
Other
Commercial 1,123 2,029 102
---------- ---------- ----------
LHFI 60-89 days
past due $ 6,375 $ 14,279 $ 4,411
---------- ---------- ----------
Past Due and still
accruing $ 49,958 $ 57,727 $ 50,687
Past Due and still
accruing / total
LHFI 0.27% 0.31% 0.32%
Alternative
Performance Measures
(non-GAAP)
----------------------
Net interest income
(FTE) (1)
----------------------
Net interest income
(GAAP) $ 184,164 $ 183,248 $ 147,825
FTE adjustment 3,757 3,791 3,721
---------- ---------- ----------
Net interest income
(FTE) (non-GAAP) $ 187,921 $ 187,039 $ 151,546
Noninterest income
(GAAP) 29,163 35,227 25,552
---------- ---------- ----------
Total revenue (FTE)
(non-GAAP) $ 217,084 $ 222,266 $ 177,098
---------- ---------- ----------
Average earning
assets $22,101,074 $22,373,970 $19,089,393
Net interest margin 3.38% 3.26% 3.11%
Net interest margin
(FTE) 3.45% 3.33% 3.19%
Tangible Assets (2)
----------------------
Ending assets
(GAAP) $24,632,611 $24,585,323 $21,378,120
Less: Ending
goodwill 1,214,053 1,214,053 925,211
Less: Ending
amortizable
intangibles 79,165 84,563 17,288
---------- ---------- ----------
Ending tangible
assets (non-GAAP) $23,339,393 $23,286,707 $20,435,621
---------- ---------- ----------
Tangible Common
Equity (2)
----------------------
Ending equity
(GAAP) $ 3,185,216 $ 3,142,879 $ 2,548,928
Less: Ending
goodwill 1,214,053 1,214,053 925,211
Less: Ending
amortizable
intangibles 79,165 84,563 17,288
Less: Perpetual
preferred
stock 166,357 166,357 166,357
---------- ---------- ----------
Ending tangible
common equity
(non-GAAP) $ 1,725,641 $ 1,677,906 $ 1,440,072
---------- ---------- ----------
Average equity
(GAAP) $ 3,183,846 $ 3,177,934 $ 2,568,243
Less: Average
goodwill 1,214,053 1,212,724 925,211
Less: Average
amortizable
intangibles 81,790 87,274 18,198
Less: Average
perpetual
preferred
stock 166,356 166,356 166,356
---------- ---------- ----------
Average tangible
common equity
(non-GAAP) $ 1,721,647 $ 1,711,580 $ 1,458,478
---------- ---------- ----------
ROTCE (2)(3)
----------------------
Net income
available to
common
shareholders
(GAAP) $ 46,851 $ 54,818 $ 46,802
Plus:
Amortization of
intangibles,
tax effected 4,264 4,435 1,497
---------- ---------- ----------
Net income
available to
common
shareholders
before
amortization of
intangibles
(non-GAAP) $ 51,115 $ 59,253 $ 48,299
---------- ---------- ----------
Return on average
tangible common
equity (ROTCE) 12.04% 13.77% 13.32%
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
----------- ----------- -----------
Operating Measures
(4)
---------------------
Net income (GAAP) $ 49,818 $ 57,785 $ 49,769
Plus:
Merger-related
costs, net of
tax 4,643 6,592 1,563
Plus: FDIC
special
assessment,
net of tax -- -- 664
Less: (Loss)
gain on sale
of securities,
net of tax (81) 13 2
---------- ---------- ----------
Adjusted operating
earnings
(non-GAAP) 54,542 64,364 51,994
---------- ---------- ----------
Less: Dividends
on preferred
stock 2,967 2,967 2,967
---------- ---------- ----------
Adjusted operating
earnings
available to
common
shareholders
(non-GAAP) $ 51,575 $ 61,397 $ 49,027
---------- ---------- ----------
Operating
Efficiency Ratio
(1)(6)
---------------------
Noninterest
expense (GAAP) $ 134,184 $ 129,675 $ 105,273
Less:
Amortization
of intangible
assets 5,398 5,614 1,895
Less:
Merger-related
costs 4,940 7,013 1,874
Less: FDIC
special
assessment -- -- 840
---------- ---------- ----------
Adjusted operating
noninterest
expense
(non-GAAP) $ 123,846 $ 117,048 $ 100,664
---------- ---------- ----------
Noninterest income
(GAAP) $ 29,163 $ 35,227 $ 25,552
Less: (Loss)
gain on sale
of securities (102) 17 3
---------- ---------- ----------
Adjusted operating
noninterest
income
(non-GAAP) $ 29,265 $ 35,210 $ 25,549
---------- ---------- ----------
Net interest
income (FTE)
(non-GAAP) (1) $ 187,921 $ 187,039 $ 151,546
Adjusted operating
noninterest
income
(non-GAAP) 29,265 35,210 25,549
---------- ---------- ----------
Total adjusted
revenue (FTE)
(non-GAAP) (1) $ 217,186 $ 222,249 $ 177,095
Efficiency ratio 62.90% 59.35% 60.72%
Efficiency ratio
(FTE) (1) 61.81% 58.34% 59.44%
Adjusted operating
efficiency ratio
(FTE) (1)(6) 57.02% 52.67% 56.84%
Operating ROA &
ROE (4)
---------------------
Adjusted operating
earnings
(non-GAAP) $ 54,542 $ 64,364 $ 51,994
Average assets
(GAAP) $24,678,974 $24,971,836 $21,222,756
Return on average
assets (ROA)
(GAAP) 0.82% 0.92% 0.94%
Adjusted operating
return on average
assets (ROA)
(non-GAAP) 0.90% 1.03% 0.99%
Average equity
(GAAP) $ 3,183,846 $ 3,177,934 $ 2,568,243
Return on average
equity (ROE)
(GAAP) 6.35% 7.23% 7.79%
Adjusted operating
return on average
equity (ROE)
(non-GAAP) 6.95% 8.06% 8.14%
Operating ROTCE
(2)(3)(4)
---------------------
Adjusted operating
earnings
available to
common
shareholders
(non-GAAP) $ 51,575 $ 61,397 $ 49,027
Plus:
Amortization
of
intangibles,
tax effected 4,264 4,435 1,497
---------- ---------- ----------
Adjusted operating
earnings
available to
common
shareholders
before
amortization of
intangibles
(non-GAAP) $ 55,839 $ 65,832 $ 50,524
---------- ---------- ----------
Average tangible
common equity
(non-GAAP) $ 1,721,647 $ 1,711,580 $ 1,458,478
Adjusted operating
return on average
tangible common
equity
(non-GAAP) 13.15% 15.30% 13.93%
Pre-tax
pre-provision
adjusted operating
earnings (7)
---------------------
Net income (GAAP) $ 49,818 $ 57,785 $ 49,769
Plus: Provision
for credit
losses 17,638 17,496 8,239
Plus: Income
tax expense 11,687 13,519 10,096
Plus:
Merger-related
costs 4,940 7,013 1,874
Plus: FDIC
special
assessment -- -- 840
Less: (Loss)
gain on sale
of securities (102) 17 3
---------- ---------- ----------
Pre-tax
pre-provision
adjusted
operating
earnings
(non-GAAP) $ 84,185 $ 95,796 $ 70,815
Less: Dividends
on preferred
stock 2,967 2,967 2,967
---------- ---------- ----------
Pre-tax
pre-provision
adjusted
operating
earnings
available to
common
shareholders
(non-GAAP) $ 81,218 $ 92,829 $ 67,848
---------- ---------- ----------
Weighted average
common shares
outstanding,
diluted 90,072,795 91,533,273 75,197,376
Pre-tax
pre-provision
earnings per
common share,
diluted $ 0.90 $ 1.01 $ 0.90
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS (UNAUDITED)
(Dollars in thousands, except share data)
As of & For Three Months Ended
3/31/25 12/31/24 3/31/24
---------- ---------- ----------
Mortgage Origination
Held for Sale Volume
------------------------
Refinance Volume $ 10,035 $ 7,335 $ 5,638
Purchase Volume 33,733 42,677 31,768
--------- --------- ---------
Total Mortgage loan
originations held
for sale $ 43,768 $ 50,012 $ 37,406
% of originations
held for sale that
are refinances 22.9% 14.7% 15.1%
Wealth
------------------------
Assets under
management $6,785,740 $6,798,258 $5,258,880
Other Data
------------------------
End of period
full-time
equivalent
employees 2,128 2,125 1,745
__________________________________
(1) These are non-GAAP financial measures. The Company believes net interest
income (FTE), total revenue (FTE), and total adjusted revenue (FTE),
which are used in computing net interest margin (FTE), efficiency ratio
(FTE) and adjusted operating efficiency ratio (FTE), provide valuable
additional insight into the net interest margin and the efficiency ratio
by adjusting for differences in tax treatment of interest income
sources. The entire FTE adjustment is attributable to interest income on
earning assets, which is used in computing the yield on earning assets.
Interest expense and the related cost of interest-bearing liabilities
and cost of funds ratios are not affected by the FTE components.
(2) These are non-GAAP financial measures. Tangible assets and tangible
common equity are used in the calculation of certain profitability,
capital, and per share ratios. The Company believes tangible assets,
tangible common equity and the related ratios are meaningful measures of
capital adequacy because they provide a meaningful base for
period-to-period and company-to-company comparisons, which the Company
believes will assist investors in assessing the capital of the Company
and its ability to absorb potential losses. The Company believes
tangible common equity is an important indication of its ability to grow
organically and through business combinations as well as its ability to
pay dividends and to engage in various capital management strategies.
(3) These are non-GAAP financial measures. The Company believes that ROTCE
is a meaningful supplement to GAAP financial measures and is useful to
investors because it measures the performance of a business consistently
across time without regard to whether components of the business were
acquired or developed internally.
(4) These are non-GAAP financial measures. Adjusted operating measures
exclude, as applicable, merger-related costs, FDIC special assessments,
and (loss) gain on sale of securities. The Company believes these
non-GAAP adjusted measures provide investors with important information
about the continuing economic results of the Company's operations.
(5) All ratios at March 31, 2025 are estimates and subject to change pending
the Company's filing of its FR Y9--C. All other periods are presented as
filed.
(6) The adjusted operating efficiency ratio (FTE) excludes, as applicable,
the amortization of intangible assets, merger-related costs, FDIC
special assessments, and (loss) gain on sale of securities. This measure
is similar to the measure used by the Company when analyzing corporate
performance and is also similar to the measure used for incentive
compensation. The Company believes this adjusted measure provides
investors with important information about the continuing economic
results of the Company's operations.
(7) These are non-GAAP financial measures. Pre-tax pre-provision adjusted
earnings excludes, as applicable, the provision for credit losses, which
can fluctuate significantly from period-to-period under the CECL
methodology, income tax expense, merger-related costs, FDIC special
assessments, and (loss) gain on sale of securities. The Company believes
this adjusted measure provides investors with important information
about the continuing economic results of the Company's operations.
(8) The prior period calculations exclude the impact of unvested restricted
stock awards outstanding as of each period end; however, unvested shares
are reflected in March 31, 2025 ratios.
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
March 31, December 31, March 31,
2025 2024 2024
------------- ------------- ---------------
ASSETS (unaudited) (audited) (unaudited)
-----------------------
Cash and cash
equivalents:
Cash and due from
banks $ 194,083 $ 196,435 $ 168,850
Interest-bearing
deposits in
other banks 236,094 153,695 225,386
Federal funds
sold 3,961 3,944 2,434
----------- ----------- -----------
Total cash and
cash
equivalents 434,138 354,074 396,670
----------- ----------- -----------
Securities available
for sale, at fair
value 2,483,835 2,442,166 2,202,216
Securities held to
maturity, at
carrying value 821,059 803,851 828,928
Restricted stock, at
cost 100,312 102,954 110,272
Loans held for sale 9,525 9,420 12,200
Loans held for
investment, net of
deferred fees and
costs 18,427,689 18,470,621 15,851,628
Less: allowance for
loan and lease
losses 193,796 178,644 136,190
----------- ----------- -----------
Total loans
held for
investment,
net 18,233,893 18,291,977 15,715,438
----------- ----------- -----------
Premises and
equipment, net 111,876 112,704 90,126
Goodwill 1,214,053 1,214,053 925,211
Amortizable
intangibles, net 79,165 84,563 17,288
Bank owned life
insurance 496,933 493,396 455,885
Other assets 647,822 676,165 623,886
----------- ----------- -----------
Total assets $ 24,632,611 $ 24,585,323 $ 21,378,120
=========== =========== ===========
LIABILITIES
-----------------------
Noninterest-bearing
demand deposits $ 4,471,173 $ 4,277,048 $ 3,845,191
Interest-bearing
deposits 16,031,701 16,120,571 13,433,244
----------- ----------- -----------
Total deposits 20,502,874 20,397,619 17,278,435
----------- ----------- -----------
Securities sold
under agreements to
repurchase 57,018 56,275 66,405
Other short-term
borrowings -- 60,000 600,000
Long-term borrowings 418,667 418,303 391,319
Other liabilities 468,836 510,247 493,033
----------- ----------- -----------
Total
liabilities 21,447,395 21,442,444 18,829,192
----------- ----------- -----------
Commitments and
contingencies
STOCKHOLDERS' EQUITY
-----------------------
Preferred stock,
$10.00 par value 173 173 173
Common stock, $1.33
par value 118,823 118,519 99,399
Additional paid-in
capital 2,280,300 2,280,547 1,782,809
Retained earnings 1,119,635 1,103,326 1,040,845
Accumulated other
comprehensive loss (333,715) (359,686) (374,298)
----------- ----------- -----------
Total
stockholders'
equity 3,185,216 3,142,879 2,548,928
----------- ----------- -----------
Total
liabilities
and
stockholders'
equity $ 24,632,611 $ 24,585,323 $ 21,378,120
=========== =========== ===========
Common shares
outstanding 89,340,541 89,770,231 75,381,740
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
----------------------------------------
March 31, December 31, March 31,
2025 2024 2024
--------- -------------- -------------
Interest and dividend
income:
Interest and fees on
loans $271,515 $ 282,116 $ 234,600
Interest on deposits in
other banks 2,513 5,774 1,280
Interest and dividends
on securities:
Taxable 23,648 23,179 18,879
Nontaxable 8,160 8,135 8,156
------- ---------- -------
Total interest
and dividend
income 305,836 319,204 262,915
------- ---------- -------
Interest expense:
Interest on deposits 115,587 129,311 101,864
Interest on short-term
borrowings 909 1,187 8,161
Interest on long-term
borrowings 5,176 5,458 5,065
------- ---------- -------
Total interest
expense 121,672 135,956 115,090
------- ---------- -------
Net interest
income 184,164 183,248 147,825
Provision for credit
losses 17,638 17,496 8,239
------- ---------- -------
Net interest
income after
provision for
credit losses 166,526 165,752 139,586
------- ---------- -------
Noninterest income:
Service charges on
deposit accounts 9,683 9,832 8,569
Other service charges,
commissions and fees 1,762 1,811 1,731
Interchange fees 2,949 3,342 2,294
Fiduciary and asset
management fees 6,697 6,925 4,838
Mortgage banking income 973 928 867
(Loss) gain on sale of
securities (102) 17 3
Bank owned life
insurance income 3,537 3,555 3,245
Loan-related interest
rate swap fees 2,400 5,082 1,216
Other operating income 1,264 3,735 2,789
------- ---------- -------
Total noninterest
income 29,163 35,227 25,552
------- ---------- -------
Noninterest expenses:
Salaries and benefits 75,415 71,297 61,882
Occupancy expenses 8,580 7,964 6,625
Furniture and equipment
expenses 3,914 3,783 3,309
Technology and data
processing 10,188 9,383 8,127
Professional services 4,687 5,353 3,081
Marketing and
advertising expense 3,184 3,517 2,318
FDIC assessment
premiums and other
insurance 5,201 5,155 5,143
Franchise and other
taxes 4,643 3,594 4,501
Loan-related expenses 1,249 1,470 1,323
Amortization of
intangible assets 5,398 5,614 1,895
Merger-related costs 4,940 7,013 1,874
Other expenses 6,785 5,532 5,195
------- ---------- -------
Total noninterest
expenses 134,184 129,675 105,273
------- ---------- -------
Income before income
taxes 61,505 71,304 59,865
Income tax expense 11,687 13,519 10,096
------- ---------- -------
Net Income $ 49,818 $ 57,785 $ 49,769
======= ========== =======
Dividends on preferred
stock 2,967 2,967 2,967
------- ---------- -------
Net income
available to
common
shareholders $ 46,851 $ 54,818 $ 46,802
======= ========== =======
Basic earnings per common
share $ 0.53 $ 0.61 $ 0.62
======= ========== =======
Diluted earnings per
common share $ 0.52 $ 0.60 $ 0.62
======= ========== =======
ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS) (UNAUDITED)
(Dollars in thousands)
For the Quarter Ended
----------------------------------------------------------------------
March 31, 2025 December 31, 2024
---------------------------------- ----------------------------------
Interest Interest
Income / Yield / Income / Yield /
Average Expense Rate Average Expense Rate
Balance (1) (1)(2) Balance (1) (1)(2)
------------ -------- ---------- ------------ -------- ----------
Assets:
-----------------------
Securities:
Taxable $ 2,131,859 $ 23,648 4.50% $ 2,187,887 $ 23,179 4.21%
Tax-exempt 1,255,768 10,329 3.34% 1,254,453 10,297 3.27%
---------- ------- ---------- -------
Total securities 3,387,627 33,977 4.07% 3,442,340 33,476 3.87%
LHFI, net of deferred
fees and costs (3)(4) 18,428,710 272,904 6.01% 18,367,657 283,459 6.14%
Other earning assets 292,281 2,712 3.76% 563,973 6,060 4.27%
---------- ------- ---------- -------
Total earning
assets 22,108,618 $309,593 5.68% 22,373,970 $322,995 5.74%
------- -------
Allowance for loan and
lease losses (179,601) (160,682)
Total non-earning
assets 2,749,957 2,758,548
---------- ----------
Total assets $24,678,974 $24,971,836
========== ==========
Liabilities and
Stockholders' Equity:
-----------------------
Interest-bearing
deposits:
Transaction and
money market
accounts $10,316,955 $ 66,688 2.62% $10,452,638 $ 74,408 2.83%
Regular savings 1,029,875 501 0.20% 1,028,661 569 0.22%
Time deposits (5) 4,715,648 48,398 4.16% 4,862,446 54,334 4.45%
---------- ------- ---------- -------
Total
interest-bearing
deposits 16,062,478 115,587 2.92% 16,343,745 129,311 3.15%
Other borrowings (6) 525,889 6,085 4.69% 543,061 6,645 4.87%
---------- ------- ---------- -------
Total
interest-bearing
liabilities $16,588,367 $121,672 2.97% $16,886,806 $135,956 3.20%
---------- ------- ---------- -------
Noninterest-bearing
liabilities:
Demand deposits 4,403,603 4,413,776
Other liabilities 503,158 493,320
---------- ----------
Total liabilities 21,495,128 21,793,902
Stockholders' equity 3,183,846 3,177,934
---------- ----------
Total liabilities and
stockholders' equity $24,678,974 $24,971,836
========== ==========
Net interest income
(FTE) $187,921 $187,039
======= =======
Interest rate spread 2.71% 2.54%
Cost of funds 2.23% 2.41%
Net interest margin
(FTE) 3.45% 3.33%
_________________________
(1) Income and yields are reported on a taxable equivalent basis using the
statutory federal corporate tax rate of 21%.
(2) Rates and yields are annualized and calculated from rounded amounts in
thousands, which appear above.
(3) Nonaccrual loans are included in average loans outstanding.
(4) Interest income on loans includes $13.3 million and $13.7 million for
the three months ended March 31, 2025 and December 31, 2024,
respectively, in accretion of the fair market value adjustments related
to acquisitions.
(5) Interest expense on time deposits includes $415,000 and $775,000 for the
three months ended March 31, 2025 and December 31, 2024, respectively,
in amortization of the fair market value adjustments related to
acquisitions.
(6) Interest expense on borrowings includes $287,000 and $288,000 for the
three months ended March 31, 2025 and December 31, 2024, respectively,
in amortization of the fair market value adjustments related to
acquisitions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250424933601/en/
CONTACT: Robert M. Gorman - (804) 523--7828
Executive Vice President / Chief Financial Officer
(END) Dow Jones Newswires
April 24, 2025 06:45 ET (10:45 GMT)
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