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Atlantic Union Bankshares Corporation (AUB)

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Previous Close26.60
Open26.29
Bid0.00 x 1000
Ask0.00 x 1100
Day's Range25.86 - 26.37
52 Week Range18.55 - 38.86
Volume190,269
Avg. Volume251,307
Market Cap2.074B
Beta (5Y Monthly)1.39
PE Ratio (TTM)10.93
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.00 (3.76%)
Ex-Dividend DateAug 06, 2020
1y Target EstN/A
  • Atlantic Union Bankshares Reports Third Quarter Results
    GlobeNewswire

    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 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 MeasuresDuring 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 ResultsNET INTEREST INCOMEFor 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 QUALITYOverview 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 ResultsIn 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 ResultsPast 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 INCOMENoninterest 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 EXPENSENoninterest 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 TAXESThe 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 SHEETAt 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 CORPORATIONHeadquartered 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 CALLThe 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 MEASURESIn 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 STATEMENTSCertain 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

  • GlobeNewswire

    Atlantic Union Bankshares Corporation To Release Third Quarter 2020 Results

    RICHMOND, Va., Oct. 06, 2020 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company”) today announced that it will release third quarter 2020 results before the market opens on Thursday, October 22, 2020. Following the release, the Company will host a conference call and webcast for analysts at 9:00 a.m. Eastern Time on Thursday, October 22, 2020.Management will conduct a conference call and listen-only webcast with accompanying slides, which can be found at: https://edge.media-server.com/mmc/p/s65vcnnd To participate in the call, please use one of the following telephone numbers. Participant Toll-Free Dial-In Number:(866) 220-4170 Participant International Dial-In Number:(864) 663-5235 The conference ID is: 9936549A replay of the webcast, and the accompanying slides, will be available on the Company’s website for 90 days at: https://investors.atlanticunionbank.com/. 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., Dixon, Hubard, Feinour & Brown, Inc., and Middleburg Investment Services, LLC, which provide investment advisory and/or brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.Contact:Bill Cimino, Senior Vice President and Director of Investor Relations 804.448.0937

  • GlobeNewswire

    Atlantic Union Bankshares Corporation To Present at Barclays Financial Services Conference

    RICHMOND, Va., Sept. 01, 2020 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation today announced President and CEO John C. Asbury will present at the Barclays Global Financial Services Conference, which will be held virtually on Monday, September 14, 2020.  The presentation is scheduled for approximately 2:00 p.m. EDT. The conference presentation may be viewed via live webcast and can be accessed at: https://kvgo.com/barclays/atlantic-september-2020A replay of the webcast will be archived and accessible at that website following the conclusion of the live conference.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 149 branches and approximately 170 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., Dixon, Hubard, Feinour, & Brown, Inc., and Middleburg Investment Services, LLC, which provide investment advisory and/or brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.Contact: Bill Cimino, Senior Vice President and Director of Investor Relations 804.448.0937