EX-99.1 2 aub-20221020xex99d1.htm EX-99.1

Exhibit 99.1

Contact: Robert M. Gorman - (804) 523-7828

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER FINANCIAL RESULTS

Richmond, Va., October 20, 2022 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (Nasdaq: AUB) reported net income available to common shareholders of $55.1 million and basic and diluted earnings per common share of $0.74 for the third quarter ended September 30, 2022. Adjusted operating earnings available to common shareholders(1) were $55.1 million, diluted adjusted operating earnings per common share(1) were $0.74, and pre-tax pre-provision adjusted operating earnings available to common shareholders(1) were $73.4 million for the third quarter ended September 30, 2022.

​

“We believe the third quarter financial results show that Atlantic Union Bankshares is delivering on what we said we would do - with upper single digit annualized loan growth, double digit deposit growth, strong credit quality, an expanding net interest margin and positive operating leverage,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We continue to see resiliency and positive market dynamics in our footprint, which combined with our asset sensitivity, gives us confidence in our ability to achieve our top tier financial targets.”

​

“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 third quarter of 2022, net interest income was $150.7 million, an increase of $11.9 million from $138.8 million for the second quarter of 2022. Net interest income (FTE)(1) was $154.6 million in the third quarter of 2022, an increase of $12.2 million from the second quarter of 2022. The increases in net interest income and net interest income (FTE)(1) were primarily driven by increases in loan yields on the Company’s variable rate loans due to higher market interest rates, higher interest income due to average loan growth from the prior quarter, and the additional day count in the third quarter, compared to the second quarter. These increases were partially offset by decreases in Paycheck Protection Program (“PPP)” and fair value accretion interest income and increases in deposit and borrowing costs as a result of increases in short-term market rates and average deposit growth from the prior quarter. The third quarter net interest margin increased 19 basis points from the prior quarter to 3.34% at September 30, 2022, and the net interest margin (FTE)(1) increased 19 basis points during the same period to 3.43%. Earning asset yields increased by 42 basis points in the third quarter of 2022 compared to the second quarter due to the impact of rising market interest rates on loans and investment securities yields. The cost of funds increased from the prior quarter by 23 basis points to 45 basis points at September 30, 2022, driven by higher deposit and borrowing costs as noted above.

​

The Company’s net interest margin (FTE) (1) includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $1.1 million for the quarter ended September 30, 2022, representing a decrease of $1.6 million from the prior quarter. The first, second, and third quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Loan | ​ | Deposit | ​ | Borrowings | ​ | ​ | ​
​ |  | Accretion |  | Amortization |  | Amortization |  | Total
For the quarter ended March 31, 2022 | ​ | $ | 2,253 | ​ | $ | (10) | ​ | $ | (203) | ​ | $ | 2,040
For the quarter ended June 30, 2022 | ​ | ​ | 2,879 | ​ | ​ | (11) | ​ | ​ | (207) | ​ | ​ | 2,661
For the quarter ended September 30, 2022 | ​ | ​ | 1,326 | ​ | ​ | (11) | ​ | ​ | (209) | ​ | ​ | 1,106
For the remaining three months of 2022 (estimated) | ​ |  | 945 | ​ | ​ | (12) | ​ | ​ | (208) | ​ |  | 725
For the years ending (estimated): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2023 | ​ |  | 3,338 | ​ |  | (31) | ​ |  | (852) | ​ |  | 2,455
2024 | ​ |  | 2,714 | ​ |  | (4) | ​ |  | (877) | ​ |  | 1,833
2025 | ​ |  | 2,123 | ​ |  | (1) | ​ |  | (900) | ​ |  | 1,222
2026 | ​ |  | 1,707 | ​ |  | — | ​ |  | (926) | ​ |  | 781
2027 | ​ |  | 1,306 | ​ |  | — | ​ |  | (953) | ​ |  | 353
Thereafter | ​ |  | 6,469 | ​ |  | — | ​ |  | (7,994) | ​ |  | (1,525)
Total remaining acquisition accounting fair value adjustments at September 30, 2022 | ​ | $ | 18,602 | ​ | $ | (48) | ​ | $ | (12,710) | ​ | $ | 5,844

​

​

ASSET QUALITY

Overview

During the third quarter of 2022, nonperforming assets (“NPAs”) as a percentage of loans remained low at 0.21% at September 30, 2022. Accruing past due loan levels as a percentage of total loans held for investment at September 30, 2022 totaled 21 basis points, which was a 6 basis point increase from June 30, 2022, and a 9 basis point decrease from September 30, 2021. Net charge-off levels remained low at 0.02% of total average loans (annualized) for the third quarter of 2022. The allowance for credit losses (“ACL”) totaled $119.0 million at September 30, 2022, a $5.8 million increase from the prior quarter.

Nonperforming Assets

At September 30, 2022, NPAs totaled $28.6 million, a decrease of $2.5 million from June 30, 2022. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
​ | ​ | 2022 | ​ | 2022 | ​ | 2022 | ​ | 2021 | ​ | 2021
Nonaccrual loans | ​ | $ | 26,500 | ​ | $ | 29,070 | ​ | $ | 29,032 | ​ | $ | 31,100 | ​ | $ | 35,472
Foreclosed properties | ​ |  | 2,087 | ​ |  | 2,065 | ​ |  | 1,696 | ​ |  | 1,696 | ​ |  | 1,696
Total nonperforming assets | ​ | $ | 28,587 | ​ | $ | 31,135 | ​ | $ | 30,728 | ​ | $ | 32,796 | ​ | $ | 37,168

​

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,
​ | ​ | 2022 | ​ | 2022 | ​ | 2022 | ​ | 2021 | ​ | 2021
Beginning Balance | ​ | $ | 29,070 | ​ | $ | 29,032 | ​ | $ | 31,100 | ​ | $ | 35,472 | ​ | $ | 36,399
Net customer payments | ​ |  | (3,725) | ​ |  | (2,472) | ​ |  | (4,132) | ​ |  | (5,068) | ​ |  | (4,719)
Additions | ​ |  | 1,302 | ​ |  | 3,203 | ​ |  | 2,087 | ​ |  | 1,294 | ​ |  | 4,177
Charge-offs | ​ |  | (125) | ​ |  | (311) | ​ |  | (23) | ​ |  | (598) | ​ |  | (385)
Transfers to foreclosed property | ​ |  | (22) | ​ |  | (382) | ​ |  | — | ​ |  | — | ​ |  | —
Ending Balance | ​ | $ | 26,500 | ​ | $ | 29,070 | ​ | $ | 29,032 | ​ | $ | 31,100 | ​ | $ | 35,472

​

​

​

​

Past Due Loans

Past due loans still accruing interest totaled $29.0 million or 0.21% of total loans held for investment at September 30, 2022, compared to $20.4 million or 0.15% of total loans held for investment at June 30, 2022, and $38.8 million or 0.30% of total loans held for investment at September 30, 2021. The increase in past due loan levels in the third quarter of 2022 as compared to the second quarter of 2022 was primarily due to increases in past due credit relationships within the commercial real estate – owner occupied and commercial and industrial portfolios. Of the total past due loans still accruing interest, $7.4 million or 0.05% of total loans held for investment were loans past due 90 days or more at September 30, 2022, compared to $4.6 million or 0.03% of total loans held for investment at June 30, 2022, and $11.0 million or 0.08% of total loans held for investment at September 30, 2021.

Allowance for Credit Losses

At September 30, 2022, the ACL was $119.0 million and included an allowance for loan and lease losses (“ALLL”) of $108.0 million and a reserve for unfunded commitments (“RUC”) of $11.0 million. The ACL at September 30, 2022 increased $5.8 million from June 30, 2022, primarily due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the third quarter of 2022.

The ACL as a percentage of total loans increased to 0.86% at September 30, 2022, compared to 0.83% at June 30, 2022. The ALLL as a percentage of total loans was 0.78% at September 30, 2022, compared to 0.76% at June 30, 2022.

Net Charge-offs

Net charge-offs were $587,000 or 0.02% of total average loans on an annualized basis for the quarter ended September 30, 2022, compared to $939,000 or 0.03% (annualized) for the second quarter of 2022, and $113,000 or less than 0.01% (annualized) for the third quarter of 2021. On a year-to-date basis through September 30, 2022, net charge-offs totaled $1.5 million or 0.02% of total average loans (annualized).

Provision for Credit Losses

For the quarter ended September 30, 2022, the Company recorded a provision for credit losses of $6.4 million, compared to a provision for credit losses of $3.6 million in the previous quarter, and a negative provision for credit losses of $18.8 million recorded during the same quarter in 2021. The provision for credit losses for the third quarter of 2022 reflected a provision of $4.4 million for loan and lease losses and a $2.0 million reserve for unfunded commitments.

NONINTEREST INCOME

Noninterest income decreased $12.7 million to $25.6 million for the quarter ended September 30, 2022 from $38.3 million in the prior quarter, primarily due to the impact of the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”), as the prior quarter included a $9.1 million pre-tax gain on the transaction within other operating income. In addition, the current quarter’s fiduciary and asset management fees decreased $2.8 million from the prior quarter due to a decrease in assets under management primarily driven by the DHFB sale. Other decreases from the prior quarter include a $1.3 million decrease in service charges on deposit accounts, reflective of the changes to the Company’s overdraft policy, a $810,000 decrease in mortgage banking income due to a decline in mortgage origination volumes and lower gain on sales margins, and a $550,000 reduction in loan related interest rate swap fee income driven by a decrease in average transaction swap fees. These noninterest income category decreases were partially offset by increases of $819,000 primarily related to syndication, foreign exchange, and other capital market transaction fees, included in other operating income, an increase of $729,000 in bank owned life insurance income due to mortality benefits, and an increase of $193,000 in interchange fees.

NONINTEREST EXPENSE

Noninterest expense increased to $99.9 million for the quarter ended September 30, 2022 from $98.8 million in the prior quarter, primarily driven by a $1.3 million increase in salaries and benefits expense due primarily to elevated new hire recruiting expenses and lower deferred loan origination costs resulting from changes in loan originations production mix from the prior quarter. In addition, other expenses increased from the prior quarter by $1.1 million primarily driven by OREO gains of $631,000 realized in the prior quarter. The increases to noninterest expense were partially offset by a $1.2 million decline in professional services expense primarily driven by lower strategic project costs.

​

INCOME TAXES

The effective tax rate for the three months ended September 30, 2022 was 17.0%, compared to 16.7% for the three months ended June 30, 2022, as the prior quarter reflected the impact of discrete items related to the sale of DHFB.

BALANCE SHEET

At September 30, 2022, total assets were $20.0 billion, an increase of $288.4 million or approximately 5.8% (annualized) from June 30, 2022, and an increase of $14.6 million or approximately 0.1% from September 30, 2021. Total assets increased from the prior quarter due to the increase in total loans held for investment (net of deferred fees and costs) of $263.3 million driven by loan growth, as well as an increase in cash and cash equivalents of $150.0 million due to deposit growth, partially offset by a decline in the investment securities portfolio of $179.4 million primarily related to the impact of market interest rate increases on the market value of the available for sale securities portfolio.

At September 30, 2022, loans held for investment (net of deferred fees and costs) totaled $13.9 billion, including $12.1 million in PPP loans, an increase of $263.3 million or 7.7% (annualized) from $13.7 billion, including $21.7 million in PPP loans, at June 30, 2022. Average loans held for investment (net of deferred fees and costs) totaled $13.7 billion at September 30, 2022, an increase of $207.9 million or 6.1% (annualized) from the prior quarter. Excluding the effects of the PPP(1), adjusted loans held for investment (net of deferred fees and costs) at September 30, 2022 increased $272.9 million or 7.9% (annualized) from June 30, 2022 and adjusted average loans increased $237.0 million or 7.0% (annualized) from the prior quarter. At September 30, 2022, loans held for investment (net of deferred fees and costs) increased $779.1 million or 5.9% from September 30, 2021, and quarterly average loans increased $281.8 million or 2.1% from the same period in the prior year. Excluding the effects of the PPP(1), adjusted loans held for investment (net of deferred fees and costs) at September 30, 2022 increased $1.2 billion or 9.7% from the same period in the prior year, and adjusted quarterly average loans during the third quarter of 2022 increased $954.8 million or 7.5% from the same period in the prior year.

At September 30, 2022, total deposits were $16.5 billion, an increase of $417.6 million or approximately 10.3% (annualized) from June 30, 2022. Average deposits at September 30, 2022 also increased from the prior quarter by $297.2 million or 7.3% (annualized). Total deposits at September 30, 2022 decreased $75.9 million or 0.5% from September 30, 2021, and quarterly average deposits at September 30, 2022 decreased $229.9 million or 1.4% from the same period in the prior year. The decrease in total deposits from the prior year was primarily due to maturing high cost time deposits.

​

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

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | June 30, |  | September 30, |
​ | ​ | 2022 | ​ | 2022 | ​ | 2021 |
Common equity Tier 1 capital ratio (2) |  | 9.96 | % | 9.96 | % | 10.37 | %
Tier 1 capital ratio (2) |  | 10.98 | % | 11.00 | % | 11.49 | %
Total capital ratio (2) |  | 13.80 | % | 13.86 | % | 13.78 | %
Leverage ratio (Tier 1 capital to average assets) (2) |  | 9.32 | % | 9.26 | % | 8.97 | %
Common equity to total assets |  | 10.60 | % | 11.32 | % | 12.68 | %
Tangible common equity to tangible assets (1) |  | 6.11 | % | 6.78 | % | 8.16 | %

​

For the quarter ended September 30, 2022, the Company’s common equity to total assets capital ratio and the tangible common equity to tangible assets capital ratio decreased from the prior quarter and prior year primarily due to the unrealized losses on the available for sale securities portfolio recorded in other comprehensive income due to market interest rate increases in the third quarter of 2022.

During the third quarter of 2022, 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 second quarter of 2022 and the third quarter of 2021. During the third quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, an increase of $0.02 or approximately 7.1% from the second quarter of 2022 and the third quarter of 2021.

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

​

(2) All ratios at September 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

​

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 114 branches and approximately 130 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.

THIRD QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Thursday, October 20, 2022 during which management will review the financial results for the three and nine months ended September 30, 2022 and provide an update on recent activities.

​

The listen-only webcast and the accompanying slides can be accessed at:

https://edge.media-server.com/mmc/p/st4hi3qy.

​

For analysts who wish to participate in the call, please register at the following URL:

https://register.vevent.com/register/BI0d0b7ad4bc21407885cc5e244e5d623f. 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 periods ended September 30, 2022, 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)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotes, statements regarding the Company’s outlook on future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, statements that include, projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, or otherwise that 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. Such 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,” “potential,” “continue,” “confidence,” 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 future results, performance, or achievements of, or trends affecting, the Company 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 the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolio;

| ● | inflation and its impacts on economic growth and customer and client behavior;

| ● | 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;

| ● | monetary and fiscal 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 the Company’s loan or investment portfolios and changes therein;

| ● | demand for loan products and financial services in the Company’s market areas;

| ● | 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;

| ● | real estate values in the Company’s lending area;

| ● | an insufficient ACL;

| ● | changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;

| ● | volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;

| ● | the Company’s liquidity and capital positions;

| ● | concentrations of loans secured by real estate, particularly commercial real estate;

| ● | the effectiveness of the Company’s credit processes and management of the Company’s credit risk;

| ● | the Company’s ability to compete in the market for financial services and increased competition from fintech companies;

| ● | technological risks and developments, and cyber threats, attacks, or events;

| ● | 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 considerations;

| ● | the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;

| ● | the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;

| ● | the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;

| ● | performance by the Company’s counterparties or vendors;

| ● | deposit flows;

| ● | the availability of financing and the terms thereof;

| ● | the level of prepayments on loans and mortgage-backed securities;

| ● | legislative or regulatory changes and requirements;

| ● | potential claims, damages, and fines related to litigation or government actions;

| ● | the effects of changes in federal, state or local tax laws and regulations;

| ● | any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and

| ● | other factors, many of which are beyond the control of the Company.

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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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, all forward-looking statements made in this press release 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 its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in the press release, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does 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.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 | ​ | 09/30/21 | ​
Results of Operations | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest and dividend income | ​ | $ | 171,156 | ​ | $ | 148,755 | ​ | $ | 146,379 | ​ | $ | 458,367 | ​ | $ | 444,904 | ​
Interest expense | ​ |  | 20,441 | ​ |  | 9,988 | ​ |  | 8,891 | ​ |  | 37,954 | ​ |  | 31,970 | ​
Net interest income | ​ |  | 150,715 | ​ |  | 138,767 | ​ |  | 137,488 | ​ |  | 420,413 | ​ |  | 412,934 | ​
Provision for credit losses | ​ |  | 6,412 | ​ |  | 3,559 | ​ |  | (18,850) | ​ |  | 12,771 | ​ |  | (59,888) | ​
Net interest income after provision for credit losses | ​ |  | 144,303 | ​ |  | 135,208 | ​ |  | 156,338 | ​ |  | 407,642 | ​ |  | 472,822 | ​
Noninterest income | ​ |  | 25,584 | ​ |  | 38,286 | ​ |  | 29,938 | ​ |  | 94,023 | ​ |  | 89,388 | ​
Noninterest expenses | ​ |  | 99,923 | ​ |  | 98,768 | ​ |  | 95,343 | ​ |  | 304,012 | ​ |  | 299,251 | ​
Income before income taxes | ​ |  | 69,964 | ​ |  | 74,726 | ​ |  | 90,933 | ​ |  | 197,653 | ​ |  | 262,959 | ​
Income tax expense | ​ |  | 11,894 | ​ |  | 12,500 | ​ |  | 16,368 | ​ |  | 33,667 | ​ |  | 46,821 | ​
Net income | ​ | ​ | 58,070 | ​ | ​ | 62,226 | ​ | ​ | 74,565 | ​ | ​ | 163,986 | ​ | ​ | 216,138 | ​
Dividends on preferred stock | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901 | ​
Net income available to common shareholders | ​ | $ | 55,103 | ​ | $ | 59,259 | ​ | $ | 71,598 | ​ | $ | 155,085 | ​ | $ | 207,237 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest earned on earning assets (FTE) (1) | ​ | $ | 174,998 | ​ | $ | 152,332 | ​ | $ | 149,543 | ​ | $ | 469,122 | ​ | $ | 454,265 | ​
Net interest income (FTE) (1) | ​ |  | 154,557 | ​ |  | 142,344 | ​ |  | 140,652 | ​ |  | 431,168 | ​ |  | 422,295 | ​
Total revenue (FTE) (1) | ​ | ​ | 180,141 | ​ | ​ | 180,630 | ​ | ​ | 170,590 | ​ | ​ | 525,191 | ​ | ​ | 511,683 | ​
Pre-PPP total adjusted revenue (FTE) (1) (10) | ​ | ​ | 179,687 | ​ | ​ | 170,204 | ​ | ​ | 159,408 | ​ | ​ | 511,325 | ​ | ​ | 474,790 | ​
Pre-tax pre-provision adjusted operating earnings (8) | ​ | ​ | 76,376 | ​ | ​ | 69,205 | ​ | ​ | 72,074 | ​ | ​ | 206,852 | ​ | ​ | 218,581 | ​
Pre-PPP pre-tax pre-provision adjusted operating earnings (8) (10) | ​ | ​ | 75,922 | ​ | ​ | 67,859 | ​ | ​ | 60,901 | ​ | ​ | 202,066 | ​ | ​ | 181,775 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Key Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share, diluted | ​ | $ | 0.74 | ​ | $ | 0.79 | ​ | $ | 0.94 | ​ | $ | 2.07 | ​ | $ | 2.66 | ​
Return on average assets (ROA) | ​ |  | 1.15 | % |  | 1.27 | % |  | 1.47 | % |  | 1.10 | % |  | 1.45 | %
Return on average equity (ROE) | ​ |  | 9.45 | % |  | 10.21 | % |  | 10.88 | % |  | 8.72 | % |  | 10.59 | %
Return on average tangible common equity (ROTCE) (2) (3) | ​ |  | 17.21 | % |  | 18.93 | % |  | 18.79 | % |  | 15.69 | % |  | 18.31 | %
Efficiency ratio | ​ |  | 56.68 | % |  | 55.78 | % |  | 56.95 | % |  | 59.10 | % |  | 59.57 | %
Efficiency ratio (FTE) (1) | ​ | ​ | 55.47 | % |  | 54.68 | % |  | 55.89 | % |  | 57.89 | % |  | 58.48 | %
Net interest margin | ​ |  | 3.34 | % |  | 3.15 | % |  | 3.05 | % |  | 3.16 | % |  | 3.10 | %
Net interest margin (FTE) (1) | ​ |  | 3.43 | % |  | 3.24 | % |  | 3.12 | % |  | 3.24 | % |  | 3.17 | %
Yields on earning assets (FTE) (1) | ​ |  | 3.88 | % |  | 3.46 | % |  | 3.31 | % |  | 3.52 | % |  | 3.41 | %
Cost of interest-bearing liabilities | ​ |  | 0.68 | % |  | 0.35 | % |  | 0.30 | % |  | 0.43 | % |  | 0.36 | %
Cost of deposits | ​ |  | 0.37 | % |  | 0.15 | % |  | 0.14 | % |  | 0.21 | % |  | 0.18 | %
Cost of funds | ​ |  | 0.45 | % |  | 0.22 | % |  | 0.19 | % |  | 0.28 | % |  | 0.24 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating Measures (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted operating earnings | ​ | $ | 58,070 | ​ | $ | 54,244 | ​ | $ | 74,558 | ​ | $ | 160,355 | ​ | $ | 228,391 | ​
Adjusted operating earnings available to common shareholders | ​ | ​ | 55,103 | ​ | ​ | 51,277 | ​ | ​ | 71,591 | ​ | ​ | 151,454 | ​ | ​ | 219,490 | ​
Adjusted operating earnings per common share, diluted | ​ | $ | 0.74 | ​ | $ | 0.69 | ​ | $ | 0.94 | ​ | $ | 2.02 | ​ | $ | 2.81 | ​
Adjusted operating ROA | ​ |  | 1.15 | % |  | 1.10 | % |  | 1.47 | % |  | 1.08 | % |  | 1.54 | %
Adjusted operating ROE | ​ |  | 9.45 | % |  | 8.90 | % |  | 10.88 | % | ​ | 8.53 | % |  | 11.19 | %
Adjusted operating ROTCE (2) (3) | ​ |  | 17.21 | % |  | 16.47 | % |  | 18.79 | % |  | 15.34 | % |  | 19.35 | %
Adjusted operating efficiency ratio (FTE) (1)(7) | ​ |  | 54.09 | % |  | 55.88 | % |  | 53.91 | % |  | 56.20 | % |  | 53.36 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Per Share Data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share, basic | ​ | $ | 0.74 | ​ | $ | 0.79 | ​ | $ | 0.94 | ​ | $ | 2.07 | ​ | $ | 2.66 | ​
Earnings per common share, diluted | ​ |  | 0.74 | ​ |  | 0.79 | ​ |  | 0.94 | ​ |  | 2.07 | ​ |  | 2.66 | ​
Cash dividends paid per common share | ​ |  | 0.30 | ​ |  | 0.28 | ​ |  | 0.28 | ​ |  | 0.86 | ​ |  | 0.81 | ​
Market value per share | ​ |  | 30.38 | ​ |  | 33.92 | ​ |  | 36.85 | ​ |  | 30.38 | ​ |  | 36.85 | ​
Book value per common share | ​ |  | 28.46 | ​ |  | 29.95 | ​ |  | 33.60 | ​ |  | 28.46 | ​ |  | 33.60 | ​
Tangible book value per common share (2) | ​ |  | 15.61 | ​ |  | 17.07 | ​ |  | 20.55 | ​ |  | 15.61 | ​ |  | 20.55 | ​
Price to earnings ratio, diluted | ​ |  | 10.37 | ​ |  | 10.68 | ​ |  | 9.88 | ​ |  | 10.99 | ​ |  | 10.36 | ​
Price to book value per common share ratio | ​ |  | 1.07 | ​ |  | 1.13 | ​ |  | 1.10 | ​ |  | 1.07 | ​ |  | 1.10 | ​
Price to tangible book value per common share ratio (2) | ​ |  | 1.95 | ​ |  | 1.99 | ​ |  | 1.79 | ​ |  | 1.95 | ​ |  | 1.79 | ​
Weighted average common shares outstanding, basic | ​ |  | 74,703,699 | ​ |  | 74,847,899 | ​ |  | 76,309,355 | ​ |  | 75,029,000 | ​ |  | 77,988,151 | ​
Weighted average common shares outstanding, diluted | ​ |  | 74,705,054 | ​ |  | 74,849,871 | ​ |  | 76,322,736 | ​ |  | 75,034,084 | ​ |  | 78,007,543 | ​
Common shares outstanding at end of period | ​ |  | 74,703,774 | ​ |  | 74,688,314 | ​ |  | 75,645,031 | ​ |  | 74,703,774 | ​ |  | 75,645,031 | ​

​

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 | ​ | 09/30/21 |
Capital Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Common equity Tier 1 capital ratio (5) |  | ​ | 9.96 | % | ​ | 9.96 | % | ​ | 10.37 | % | ​ | 9.96 | % | ​ | 10.37 | %
Tier 1 capital ratio (5) |  | ​ | 10.98 | % | ​ | 11.00 | % | ​ | 11.49 | % | ​ | 10.98 | % | ​ | 11.49 | %
Total capital ratio (5) |  | ​ | 13.80 | % | ​ | 13.86 | % | ​ | 13.78 | % | ​ | 13.80 | % | ​ | 13.78 | %
Leverage ratio (Tier 1 capital to average assets) (5) |  | ​ | 9.32 | % | ​ | 9.26 | % | ​ | 8.97 | % | ​ | 9.32 | % | ​ | 8.97 | %
Common equity to total assets |  | ​ | 10.60 | % | ​ | 11.32 | % | ​ | 12.68 | % | ​ | 10.60 | % | ​ | 12.68 | %
Tangible common equity to tangible assets (2) |  | ​ | 6.11 | % | ​ | 6.78 | % | ​ | 8.16 | % | ​ | 6.11 | % | ​ | 8.16 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financial Condition |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​
Assets | ​ | $ | 19,950,231 | ​ | $ | 19,661,799 | ​ | $ | 19,935,657 | ​ | $ | 19,950,231 | ​ | $ | 19,935,657 | ​
Loans held for investment (net of deferred fees and costs) | ​ |  | 13,918,720 | ​ |  | 13,655,408 | ​ |  | 13,139,586 | ​ |  | 13,918,720 | ​ |  | 13,139,586 | ​
Securities | ​ |  | 3,640,722 | ​ |  | 3,820,078 | ​ |  | 3,807,723 | ​ |  | 3,640,722 | ​ |  | 3,807,723 | ​
Earning Assets | ​ |  | 17,790,324 | ​ |  | 17,578,979 | ​ |  | 17,795,784 | ​ |  | 17,790,324 | ​ |  | 17,795,784 | ​
Goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 935,560 | ​ |  | 925,211 | ​ |  | 935,560 | ​
Amortizable intangibles, net | ​ |  | 29,142 | ​ |  | 31,621 | ​ |  | 46,537 | ​ |  | 29,142 | ​ |  | 46,537 | ​
Deposits | ​ |  | 16,546,216 | ​ |  | 16,128,635 | ​ |  | 16,622,160 | ​ |  | 16,546,216 | ​ |  | 16,622,160 | ​
Borrowings | ​ |  | 669,558 | ​ |  | 797,948 | ​ |  | 385,765 | ​ |  | 669,558 | ​ |  | 385,765 | ​
Stockholders' equity | ​ |  | 2,281,150 | ​ |  | 2,391,476 | ​ |  | 2,694,439 | ​ |  | 2,281,150 | ​ |  | 2,694,439 | ​
Tangible common equity (2) | ​ |  | 1,160,440 | ​ |  | 1,268,287 | ​ |  | 1,545,985 | ​ |  | 1,160,440 | ​ |  | 1,545,985 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans held for investment, net of deferred fees and costs | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Construction and land development | ​ | $ | 1,068,201 | ​ | $ | 988,379 | ​ | $ | 877,351 | ​ | $ | 1,068,201 | ​ | $ | 877,351 | ​
Commercial real estate - owner occupied | ​ |  | 1,953,872 | ​ |  | 1,965,702 | ​ |  | 2,027,299 | ​ |  | 1,953,872 | ​ |  | 2,027,299 | ​
Commercial real estate - non-owner occupied | ​ |  | 3,900,325 | ​ |  | 3,860,819 | ​ |  | 3,730,720 | ​ |  | 3,900,325 | ​ |  | 3,730,720 | ​
Multifamily real estate | ​ |  | 774,970 | ​ |  | 762,502 | ​ |  | 776,287 | ​ |  | 774,970 | ​ |  | 776,287 | ​
Commercial & Industrial | ​ |  | 2,709,047 | ​ |  | 2,595,891 | ​ |  | 2,580,190 | ​ |  | 2,709,047 | ​ |  | 2,580,190 | ​
Residential 1-4 Family - Commercial | ​ |  | 542,612 | ​ |  | 553,771 | ​ |  | 624,347 | ​ |  | 542,612 | ​ |  | 624,347 | ​
Residential 1-4 Family - Consumer | ​ |  | 891,353 | ​ |  | 865,174 | ​ |  | 822,971 | ​ |  | 891,353 | ​ |  | 822,971 | ​
Residential 1-4 Family - Revolving | ​ |  | 588,452 | ​ |  | 583,073 | ​ |  | 557,803 | ​ |  | 588,452 | ​ |  | 557,803 | ​
Auto | ​ |  | 561,277 | ​ |  | 525,301 | ​ |  | 425,436 | ​ |  | 561,277 | ​ |  | 425,436 | ​
Consumer | ​ |  | 172,776 | ​ |  | 180,045 | ​ |  | 182,039 | ​ |  | 172,776 | ​ |  | 182,039 | ​
Other Commercial | ​ |  | 755,835 | ​ |  | 774,751 | ​ |  | 535,143 | ​ |  | 755,835 | ​ |  | 535,143 | ​
Total loans held for investment | ​ | $ | 13,918,720 | ​ | $ | 13,655,408 | ​ | $ | 13,139,586 | ​ | $ | 13,918,720 | ​ | $ | 13,139,586 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Interest checking accounts | ​ | $ | 4,354,351 | ​ | $ | 3,943,303 | ​ | $ | 4,016,505 | ​ | $ | 4,354,351 | ​ | $ | 4,016,505 | ​
Money market accounts | ​ |  | 3,962,473 | ​ |  | 3,956,050 | ​ |  | 4,152,986 | ​ |  | 3,962,473 | ​ |  | 4,152,986 | ​
Savings accounts | ​ |  | 1,173,566 | ​ |  | 1,165,577 | ​ |  | 1,079,735 | ​ |  | 1,173,566 | ​ |  | 1,079,735 | ​
Time deposits of $250,000 and over | ​ |  | 415,984 | ​ |  | 360,158 | ​ |  | 546,199 | ​ |  | 415,984 | ​ |  | 546,199 | ​
Other time deposits | ​ | ​ | 1,348,904 | ​ | ​ | 1,342,009 | ​ | ​ | 1,497,897 | ​ | ​ | 1,348,904 | ​ | ​ | 1,497,897 | ​
Time deposits | ​ |  | 1,764,888 | ​ |  | 1,702,167 | ​ |  | 2,044,096 | ​ |  | 1,764,888 | ​ |  | 2,044,096 | ​
Total interest-bearing deposits | ​ | $ | 11,255,278 | ​ | $ | 10,767,097 | ​ | $ | 11,293,322 | ​ | $ | 11,255,278 | ​ | $ | 11,293,322 | ​
Demand deposits | ​ |  | 5,290,938 | ​ |  | 5,361,538 | ​ |  | 5,328,838 | ​ |  | 5,290,938 | ​ |  | 5,328,838 | ​
Total deposits | ​ | $ | 16,546,216 | ​ | $ | 16,128,635 | ​ | $ | 16,622,160 | ​ | $ | 16,546,216 | ​ | $ | 16,622,160 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Averages | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Assets | ​ | $ | 19,980,500 | ​ | $ | 19,719,402 | ​ | $ | 20,056,570 | ​ | $ | 19,873,644 | ​ | $ | 19,890,155 | ​
Loans held for investment (net of deferred fees and costs) | ​ |  | 13,733,447 | ​ |  | 13,525,529 | ​ |  | 13,451,674 | ​ |  | 13,521,507 | ​ |  | 13,827,002 | ​
Loans held for sale | ​ |  | 15,063 | ​ |  | 20,634 | ​ |  | 30,035 | ​ |  | 16,779 | ​ |  | 43,162 | ​
Securities | ​ |  | 3,818,607 | ​ |  | 3,930,912 | ​ |  | 3,679,977 | ​ |  | 3,981,308 | ​ |  | 3,438,285 | ​
Earning assets | ​ |  | 17,879,222 | ​ |  | 17,646,470 | ​ |  | 17,910,389 | ​ |  | 17,803,550 | ​ |  | 17,824,607 | ​
Deposits | ​ |  | 16,488,224 | ​ |  | 16,191,056 | ​ |  | 16,718,144 | ​ |  | 16,397,790 | ​ |  | 16,433,470 | ​
Time deposits | ​ |  | 1,745,224 | ​ |  | 1,667,378 | ​ |  | 2,109,131 | ​ |  | 1,726,341 | ​ |  | 2,288,530 | ​
Interest-bearing deposits | ​ |  | 11,163,945 | ​ |  | 10,824,465 | ​ |  | 11,512,825 | ​ |  | 11,091,115 | ​ |  | 11,483,654 | ​
Borrowings | ​ |  | 703,272 | ​ |  | 765,886 | ​ |  | 395,984 | ​ |  | 660,995 | ​ |  | 456,184 | ​
Interest-bearing liabilities | ​ |  | 11,867,217 | ​ |  | 11,590,351 | ​ |  | 11,908,809 | ​ |  | 11,752,110 | ​ |  | 11,939,838 | ​
Stockholders' equity | ​ |  | 2,436,999 | ​ |  | 2,445,045 | ​ |  | 2,718,032 | ​ |  | 2,513,522 | ​ |  | 2,728,605 | ​
Tangible common equity (2) | ​ |  | 1,315,085 | ​ |  | 1,304,536 | ​ |  | 1,567,937 | ​ |  | 1,378,240 | ​ |  | 1,574,961 | ​

​

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 | ​ | 09/30/21 |
Asset Quality | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Allowance for Credit Losses (ACL) |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​
Beginning balance, Allowance for loan and lease losses (ALLL) | ​ | $ | 104,184 | ​ | $ | 102,591 | ​ | $ | 118,261 | ​ | $ | 99,787 | ​ | $ | 160,540 | ​
Add: Recoveries | ​ |  | 1,214 | ​ |  | 1,018 | ​ |  | 2,153 | ​ |  | 3,745 | ​ |  | 6,498 | ​
Less: Charge-offs | ​ |  | 1,801 | ​ |  | 1,957 | ​ |  | 2,266 | ​ |  | 5,267 | ​ |  | 7,852 | ​
Add: Provision for loan losses | ​ |  | 4,412 | ​ |  | 2,532 | ​ |  | (16,350) | ​ |  | 9,744 | ​ |  | (57,388) | ​
Ending balance, ALLL | ​ | $ | 108,009 | ​ | $ | 104,184 | ​ | $ | 101,798 | ​ | $ | 108,009 | ​ | $ | 101,798 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning balance, Reserve for unfunded commitment (RUC) | ​ | $ | 9,000 | ​ | $ | 8,000 | ​ | $ | 10,000 | ​ | $ | 8,000 | ​ | $ | 10,000 | ​
Add: Provision for unfunded commitments | ​ | ​ | 2,000 | ​ | ​ | 1,000 | ​ | ​ | (2,500) | ​ | ​ | 3,000 | ​ | ​ | (2,500) | ​
Ending balance, RUC | ​ | $ | 11,000 | ​ | $ | 9,000 | ​ | $ | 7,500 | ​ | $ | 11,000 | ​ | $ | 7,500 | ​
Total ACL | ​ | $ | 119,009 | ​ | $ | 113,184 | ​ | $ | 109,298 | ​ | $ | 119,009 | ​ | $ | 109,298 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ACL / total outstanding loans | ​ | ​ | 0.86 | % | ​ | 0.83 | % | ​ | 0.83 | % | ​ | 0.86 | % | ​ | 0.83 | %
ACL / total adjusted loans(9) | ​ | ​ | 0.86 | % | ​ | 0.83 | % | ​ | 0.86 | % | ​ | 0.86 | % | ​ | 0.86 | %
ALLL / total outstanding loans | ​ |  | 0.78 | % |  | 0.76 | % |  | 0.77 | % |  | 0.78 | % |  | 0.77 | %
ALLL / total adjusted loans(9) | ​ | ​ | 0.78 | % | ​ | 0.76 | % | ​ | 0.80 | % | ​ | 0.78 | % | ​ | 0.80 | %
Net charge-offs / total average loans | ​ |  | 0.02 | % |  | 0.03 | % |  | 0.00 | % |  | 0.02 | % |  | 0.01 | %
Net charge-offs / total adjusted average loans(9) | ​ | ​ | 0.02 | % | ​ | 0.03 | % | ​ | 0.00 | % | ​ | 0.02 | % | ​ | 0.01 | %
Provision for loan losses/ total average loans | ​ |  | 0.13 | % |  | 0.08 | % |  | (0.48) | % |  | 0.10 | % |  | (0.55) | %
Provision for loan losses/ total adjusted average loans(9) | ​ | ​ | 0.13 | % | ​ | 0.08 | % | ​ | (0.51) | % | ​ | 0.10 | % | ​ | (0.60) | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nonperforming Assets (6) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Construction and land development | ​ | $ | 421 | ​ | $ | 581 | ​ | $ | 2,710 | ​ | $ | 421 | ​ | $ | 2,710 | ​
Commercial real estate - owner occupied | ​ |  | 4,883 | ​ |  | 4,996 | ​ |  | 7,786 | ​ |  | 4,883 | ​ |  | 7,786 | ​
Commercial real estate - non-owner occupied | ​ |  | 1,923 | ​ |  | 3,301 | ​ |  | 4,174 | ​ |  | 1,923 | ​ |  | 4,174 | ​
Multifamily real estate | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 113 | ​ | ​ | — | ​ | ​ | 113 | ​
Commercial & Industrial | ​ |  | 2,289 | ​ |  | 2,728 | ​ |  | 2,062 | ​ |  | 2,289 | ​ |  | 2,062 | ​
Residential 1-4 Family - Commercial | ​ |  | 1,962 | ​ |  | 2,031 | ​ |  | 2,445 | ​ |  | 1,962 | ​ |  | 2,445 | ​
Residential 1-4 Family - Consumer | ​ |  | 11,121 | ​ |  | 12,084 | ​ |  | 12,150 | ​ |  | 11,121 | ​ |  | 12,150 | ​
Residential 1-4 Family - Revolving | ​ |  | 3,583 | ​ |  | 3,069 | ​ |  | 3,723 | ​ |  | 3,583 | ​ |  | 3,723 | ​
Auto | ​ |  | 318 | ​ |  | 279 | ​ |  | 255 | ​ |  | 318 | ​ |  | 255 | ​
Consumer | ​ | ​ | — | ​ | ​ | 1 | ​ | ​ | 54 | ​ | ​ | — | ​ | ​ | 54 | ​
Nonaccrual loans | ​ | $ | 26,500 | ​ | $ | 29,070 | ​ | $ | 35,472 | ​ | $ | 26,500 | ​ | $ | 35,472 | ​
Foreclosed property | ​ |  | 2,087 | ​ |  | 2,065 | ​ |  | 1,696 | ​ |  | 2,087 | ​ |  | 1,696 | ​
Total nonperforming assets (NPAs) | ​ | $ | 28,587 | ​ | $ | 31,135 | ​ | $ | 37,168 | ​ | $ | 28,587 | ​ | $ | 37,168 | ​
Construction and land development | ​ | $ | 115 | ​ | $ | 1 | ​ | $ | 304 | ​ | $ | 115 | ​ | $ | 304 | ​
Commercial real estate - owner occupied | ​ |  | 3,517 | ​ |  | 792 | ​ |  | 1,886 | ​ |  | 3,517 | ​ |  | 1,886 | ​
Commercial real estate - non-owner occupied | ​ | ​ | 621 | ​ | ​ | 642 | ​ | ​ | 1,175 | ​ | ​ | 621 | ​ | ​ | 1,175 | ​
Commercial & Industrial | ​ |  | 526 | ​ |  | 322 | ​ |  | 1,256 | ​ |  | 526 | ​ |  | 1,256 | ​
Residential 1-4 Family - Commercial | ​ |  | 308 | ​ |  | 184 | ​ |  | 1,091 | ​ |  | 308 | ​ |  | 1,091 | ​
Residential 1-4 Family - Consumer | ​ |  | 680 | ​ |  | 1,112 | ​ |  | 2,462 | ​ |  | 680 | ​ |  | 2,462 | ​
Residential 1-4 Family - Revolving | ​ |  | 1,255 | ​ |  | 997 | ​ |  | 2,474 | ​ |  | 1,255 | ​ |  | 2,474 | ​
Auto | ​ |  | 148 | ​ |  | 134 | ​ |  | 209 | ​ |  | 148 | ​ |  | 209 | ​
Consumer | ​ |  | 86 | ​ |  | 79 | ​ |  | 173 | ​ |  | 86 | ​ |  | 173 | ​
Other Commercial | ​ | ​ | 95 | ​ | ​ | 329 | ​ | ​ | — | ​ | ​ | 95 | ​ | ​ | — | ​
Loans ≥ 90 days and still accruing | ​ | $ | 7,351 | ​ | $ | 4,592 | ​ | $ | 11,030 | ​ | $ | 7,351 | ​ | $ | 11,030 | ​
Total NPAs and loans ≥ 90 days | ​ | $ | 35,938 | ​ | $ | 35,727 | ​ | $ | 48,198 | ​ | $ | 35,938 | ​ | $ | 48,198 | ​
NPAs / total outstanding loans | ​ | ​ | 0.21 | % |  | 0.23 | % |  | 0.28 | % |  | 0.21 | % |  | 0.28 | %
NPAs / total adjusted loans(9) | ​ | ​ | 0.21 | % | ​ | 0.23 | % | ​ | 0.29 | % | ​ | 0.21 | % | ​ | 0.29 | %
NPAs / total assets | ​ |  | 0.14 | % |  | 0.16 | % |  | 0.19 | % |  | 0.14 | % |  | 0.19 | %
ALLL / nonaccrual loans | ​ |  | 407.58 | % |  | 358.39 | % |  | 286.98 | % |  | 407.58 | % |  | 286.98 | %
ALLL/ nonperforming assets | ​ |  | 377.83 | % |  | 334.62 | % |  | 273.89 | % |  | 377.83 | % |  | 273.89 | %
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​

​

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 | ​ | 09/30/21 |
Past Due Detail (6) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Construction and land development | ​ | $ | 120 | ​ | $ | 645 | ​ | $ | 744 | ​ | $ | 120 | ​ | $ | 744 | ​
Commercial real estate - owner occupied | ​ |  | 7,337 | ​ |  | 1,374 | ​ |  | 735 | ​ |  | 7,337 | ​ |  | 735 | ​
Commercial real estate - non-owner occupied | ​ |  | — | ​ |  | 511 | ​ |  | 1,302 | ​ |  | — | ​ |  | 1,302 | ​
Commercial & Industrial | ​ |  | 796 | ​ |  | 2,581 | ​ |  | 11,089 | ​ |  | 796 | ​ |  | 11,089 | ​
Residential 1-4 Family - Commercial | ​ |  | 1,410 | ​ |  | 1,944 | ​ |  | 807 | ​ |  | 1,410 | ​ |  | 807 | ​
Residential 1-4 Family - Consumer | ​ |  | 1,123 | ​ |  | 594 | ​ |  | 406 | ​ |  | 1,123 | ​ |  | 406 | ​
Residential 1-4 Family - Revolving | ​ |  | 1,115 | ​ |  | 1,368 | ​ |  | 1,092 | ​ |  | 1,115 | ​ |  | 1,092 | ​
Auto | ​ |  | 1,876 | ​ |  | 1,841 | ​ |  | 1,548 | ​ |  | 1,876 | ​ |  | 1,548 | ​
Consumer | ​ | ​ | 409 | ​ | ​ | 361 | ​ | ​ | 790 | ​ | ​ | 409 | ​ | ​ | 790 | ​
Other Commercial | ​ | ​ | — | ​ | ​ | 11 | ​ | ​ | 631 | ​ | ​ | — | ​ | ​ | 631 | ​
Loans 30-59 days past due | ​ | $ | 14,186 | ​ | $ | 11,230 | ​ | $ | 19,144 | ​ | $ | 14,186 | ​ | $ | 19,144 | ​
Construction and land development | ​ | $ | 107 | ​ | $ | — | ​ | $ | 58 | ​ | $ | 107 | ​ | $ | 58 | ​
Commercial real estate - owner occupied | ​ |  | 763 | ​ |  | 807 | ​ |  | 61 | ​ |  | 763 | ​ |  | 61 | ​
Commercial real estate - non-owner occupied | ​ |  | 457 | ​ |  | — | ​ |  | 570 | ​ |  | 457 | ​ |  | 570 | ​
Commercial & Industrial | ​ |  | 3,128 | ​ |  | 546 | ​ |  | 3,328 | ​ |  | 3,128 | ​ |  | 3,328 | ​
Residential 1-4 Family - Commercial | ​ |  | 97 | ​ |  | 474 | ​ |  | 698 | ​ |  | 97 | ​ |  | 698 | ​
Residential 1-4 Family - Consumer | ​ |  | 1,449 | ​ |  | 1,646 | ​ |  | 2,188 | ​ |  | 1,449 | ​ |  | 2,188 | ​
Residential 1-4 Family - Revolving | ​ |  | 1,081 | ​ |  | 731 | ​ |  | 587 | ​ |  | 1,081 | ​ |  | 587 | ​
Auto | ​ |  | 257 | ​ |  | 213 | ​ |  | 202 | ​ |  | 257 | ​ |  | 202 | ​
Consumer | ​ | ​ | 101 | ​ | ​ | 210 | ​ | ​ | 317 | ​ | ​ | 101 | ​ | ​ | 317 | ​
Other Commercial | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 600 | ​ | ​ | — | ​ |  | 600 | ​
Loans 60-89 days past due | ​ | $ | 7,440 | ​ | $ | 4,627 | ​ | $ | 8,609 | ​ | $ | 7,440 | ​ | $ | 8,609 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Past Due and still accruing | ​ | $ | 28,977 | ​ | $ | 20,449 | ​ | $ | 38,783 | ​ | $ | 28,977 | ​ | $ | 38,783 | ​
Past Due and still accruing / total loans | ​ | ​ | 0.21 | % | ​ | 0.15 | % | ​ | 0.30 | % | ​ | 0.21 | % | ​ | 0.30 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Troubled Debt Restructurings | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Performing | ​ | $ | 10,333 | ​ | $ | 10,662 | ​ | $ | 11,335 | ​ | $ | 10,333 | ​ | $ | 11,335 | ​
Nonperforming | ​ |  | 5,298 | ​ |  | 7,298 | ​ |  | 7,365 | ​ |  | 5,298 | ​ |  | 7,365 | ​
Total troubled debt restructurings | ​ | $ | 15,631 | ​ | $ | 17,960 | ​ | $ | 18,700 | ​ | $ | 15,631 | ​ | $ | 18,700 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Alternative Performance Measures (non-GAAP) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Net interest income (FTE) (1) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Net interest income (GAAP) | ​ | $ | 150,715 | ​ | $ | 138,767 | ​ | $ | 137,488 | ​ | $ | 420,413 | ​ | $ | 412,934 | ​
FTE adjustment | ​ |  | 3,842 | ​ |  | 3,577 | ​ |  | 3,164 | ​ |  | 10,755 | ​ |  | 9,361 | ​
Net interest income (FTE) (non-GAAP) | ​ | $ | 154,557 | ​ | $ | 142,344 | ​ | $ | 140,652 | ​ | $ | 431,168 | ​ | $ | 422,295 | ​
Noninterest income (GAAP) | ​ | ​ | 25,584 | ​ | ​ | 38,286 | ​ | ​ | 29,938 | ​ | ​ | 94,023 | ​ | ​ | 89,388 | ​
Total revenue (FTE) (non-GAAP) | ​ | $ | 180,141 | ​ | $ | 180,630 | ​ | $ | 170,590 | ​ | $ | 525,191 | ​ | $ | 511,683 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average earning assets | ​ | $ | 17,879,222 | ​ | $ | 17,646,470 | ​ | $ | 17,910,389 | ​ | $ | 17,803,550 | ​ | $ | 17,824,607 | ​
Net interest margin | ​ |  | 3.34 | % |  | 3.15 | % |  | 3.05 | % |  | 3.16 | % |  | 3.10 | %
Net interest margin (FTE) | ​ |  | 3.43 | % |  | 3.24 | % |  | 3.12 | % |  | 3.24 | % |  | 3.17 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Assets (2) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Ending assets (GAAP) | ​ | $ | 19,950,231 | ​ | $ | 19,661,799 | ​ | $ | 19,935,657 | ​ | $ | 19,950,231 | ​ | $ | 19,935,657 | ​
Less: Ending goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 935,560 | ​ |  | 925,211 | ​ |  | 935,560 | ​
Less: Ending amortizable intangibles | ​ |  | 29,142 | ​ |  | 31,621 | ​ |  | 46,537 | ​ |  | 29,142 | ​ |  | 46,537 | ​
Ending tangible assets (non-GAAP) | ​ | $ | 18,995,878 | ​ | $ | 18,704,967 | ​ | $ | 18,953,560 | ​ | $ | 18,995,878 | ​ | $ | 18,953,560 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Common Equity (2) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Ending equity (GAAP) | ​ | $ | 2,281,150 | ​ | $ | 2,391,476 | ​ | $ | 2,694,439 | ​ | $ | 2,281,150 | ​ | $ | 2,694,439 | ​
Less: Ending goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 935,560 | ​ |  | 925,211 | ​ |  | 935,560 | ​
Less: Ending amortizable intangibles | ​ |  | 29,142 | ​ |  | 31,621 | ​ |  | 46,537 | ​ |  | 29,142 | ​ |  | 46,537 | ​
Less: Perpetual preferred stock | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​
Ending tangible common equity (non-GAAP) | ​ | $ | 1,160,440 | ​ | $ | 1,268,287 | ​ | $ | 1,545,985 | ​ | $ | 1,160,440 | ​ | $ | 1,545,985 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average equity (GAAP) | ​ | $ | 2,436,999 | ​ | $ | 2,445,045 | ​ | $ | 2,718,032 | ​ | $ | 2,513,522 | ​ | $ | 2,728,605 | ​
Less: Average goodwill | ​ |  | 925,211 | ​ |  | 935,446 | ​ |  | 935,560 | ​ |  | 932,035 | ​ |  | 935,560 | ​
Less: Average amortizable intangibles | ​ |  | 30,347 | ​ |  | 38,707 | ​ |  | 48,179 | ​ |  | 36,891 | ​ |  | 51,728 | ​
Less: Average perpetual preferred stock | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​
Average tangible common equity (non-GAAP) | ​ | $ | 1,315,085 | ​ | $ | 1,304,536 | ​ | $ | 1,567,937 | ​ | $ | 1,378,240 | ​ | $ | 1,574,961 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ROTCE (2)(3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income available to common shareholders (GAAP) | ​ | $ | 55,103 | ​ | $ | 59,259 | ​ | $ | 71,598 | ​ | $ | 155,085 | ​ | $ | 207,237 | ​
Plus: Amortization of intangibles, tax effected | ​ | ​ | 1,959 | ​ | ​ | 2,303 | ​ | ​ | 2,671 | ​ | ​ | 6,663 | ​ | ​ | 8,436 | ​
Net income available to common shareholders before amortization of intangibles (non-GAAP) | ​ | $ | 57,062 | ​ | $ | 61,562 | ​ | $ | 74,269 | ​ | $ | 161,748 | ​ | $ | 215,673 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average tangible common equity (ROTCE) | ​ | ​ | 17.21 | % | ​ | 18.93 | % | ​ | 18.79 | % | ​ | 15.69 | % | ​ | 18.31 | %

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 |  | 09/30/21 |
Operating Measures (4) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Net income (GAAP) | ​ | $ | 58,070 | ​ | $ | 62,226 | ​ | $ | 74,565 | ​ | $ | 163,986 | ​ | $ | 216,138 | ​
Plus: Net loss related to balance sheet repositioning, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 11,609 | ​
Less: (Loss) gain on sale of securities, net of tax | ​ | ​ | — | ​ | ​ | (2) | ​ | ​ | 7 | ​ | ​ | (2) | ​ | ​ | 69 | ​
Less: Gain on sale of DHFB, net of tax | ​ | ​ | — | ​ | ​ | 7,984 | ​ | ​ | — | ​ | ​ | 7,984 | ​ | ​ | — | ​
Plus: Branch closing and facility consolidation costs, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,351 | ​ | ​ | 713 | ​
Adjusted operating earnings (non-GAAP) | ​ | ​ | 58,070 | ​ | ​ | 54,244 | ​ | ​ | 74,558 | ​ | ​ | 160,355 | ​ | ​ | 228,391 | ​
Less: Dividends on preferred stock | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901 | ​
Adjusted operating earnings available to common shareholders (non-GAAP) | ​ | $ | 55,103 | ​ | $ | 51,277 | ​ | $ | 71,591 | ​ | $ | 151,454 | ​ | $ | 219,490 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest expense (GAAP) | ​ | $ | 99,923 | ​ | $ | 98,768 | ​ | $ | 95,343 | ​ | $ | 304,012 | ​ | $ | 299,251 | ​
Less: Amortization of intangible assets | ​ |  | 2,480 | ​ |  | 2,915 | ​ |  | 3,381 | ​ |  | 8,434 | ​ |  | 10,679 | ​
Less: Losses related to balance sheet repositioning | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 14,695 | ​
Less: Branch closing and facility consolidation costs | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,508 | ​ | ​ | 902 | ​
Adjusted operating noninterest expense (non-GAAP) | ​ | $ | 97,443 | ​ | $ | 95,853 | ​ | $ | 91,962 | ​ | $ | 290,070 | ​ | $ | 272,975 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest income (GAAP) | ​ | $ | 25,584 | ​ | $ | 38,286 | ​ | $ | 29,938 | ​ | $ | 94,023 | ​ | $ | 89,388 | ​
Less: (Loss) gain on sale of securities | ​ | ​ | — | ​ | ​ | (2) | ​ | ​ | 9 | ​ | ​ | (2) | ​ | ​ | 87 | ​
Less: Gain on sale of DHFB | ​ | ​ | — | ​ | ​ | 9,082 | ​ | ​ | — | ​ | ​ | 9,082 | ​ | ​ | — | ​
Adjusted operating noninterest income (non-GAAP) | ​ | $ | 25,584 | ​ | $ | 29,206 | ​ | $ | 29,929 | ​ | $ | 84,943 | ​ | $ | 89,301 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net interest income (FTE) (non-GAAP) (1) | ​ | $ | 154,557 | ​ | $ | 142,344 | ​ | $ | 140,652 | ​ | $ | 431,168 | ​ | $ | 422,295 | ​
Adjusted operating noninterest income (non-GAAP) | ​ |  | 25,584 | ​ |  | 29,206 | ​ |  | 29,929 | ​ |  | 84,943 | ​ |  | 89,301 | ​
Total adjusted revenue (FTE) (non-GAAP) (1) | ​ | ​ | 180,141 | ​ | ​ | 171,550 | ​ | ​ | 170,581 | ​ | ​ | 516,111 | ​ | ​ | 511,596 | ​
Less: PPP accretion interest income and fees | ​ | ​ | 454 | ​ | ​ | 1,346 | ​ | ​ | 11,173 | ​ | ​ | 4,786 | ​ | ​ | 36,806 | ​
Pre-PPP total adjusted revenue (FTE) (non-GAAP) (1) (10) | ​ | $ | 179,687 | ​ | $ | 170,204 | ​ | $ | 159,408 | ​ | $ | 511,325 | ​ | $ | 474,790 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Efficiency ratio | ​ |  | 56.68 | % |  | 55.78 | % |  | 56.95 | % |  | 59.10 | % |  | 59.57 | %
Efficiency ratio (FTE) (1) | ​ | ​ | 55.47 | % |  | 54.68 | % |  | 55.89 | % |  | 57.89 | % |  | 58.48 | %
Adjusted operating efficiency ratio (FTE) (1)(7) | ​ |  | 54.09 | % |  | 55.88 | % |  | 53.91 | % |  | 56.20 | % |  | 53.36 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating ROA & ROE (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted operating earnings (non-GAAP) | ​ | $ | 58,070 | ​ | $ | 54,244 | ​ | $ | 74,558 | ​ | $ | 160,355 | ​ | $ | 228,391 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average assets (GAAP) | ​ | $ | 19,980,500 | ​ | $ | 19,719,402 | ​ | $ | 20,056,570 | ​ | $ | 19,873,644 | ​ | $ | 19,890,155 | ​
Return on average assets (ROA) (GAAP) | ​ | ​ | 1.15 | % | ​ | 1.27 | % | ​ | 1.47 | % | ​ | 1.10 | % | ​ | 1.45 | %
Adjusted operating return on average assets (ROA) (non-GAAP) | ​ | ​ | 1.15 | % | ​ | 1.10 | % | ​ | 1.47 | % | ​ | 1.08 | % | ​ | 1.54 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average equity (GAAP) | ​ | $ | 2,436,999 | ​ | $ | 2,445,045 | ​ | $ | 2,718,032 | ​ | $ | 2,513,522 | ​ | $ | 2,728,605 | ​
Return on average equity (ROE) (GAAP) | ​ | ​ | 9.45 | % | ​ | 10.21 | % | ​ | 10.88 | % | ​ | 8.72 | % | ​ | 10.59 | %
Adjusted operating return on average equity (ROE) (non-GAAP) | ​ | ​ | 9.45 | % | ​ | 8.90 | % | ​ | 10.88 | % | ​ | 8.53 | % | ​ | 11.19 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating ROTCE (2)(3)(4) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Adjusted operating earnings available to common shareholders (non-GAAP) | ​ | $ | 55,103 | ​ | $ | 51,277 | ​ | $ | 71,591 | ​ | $ | 151,454 | ​ | $ | 219,490 | ​
Plus: Amortization of intangibles, tax effected | ​ |  | 1,959 | ​ |  | 2,303 | ​ |  | 2,671 | ​ |  | 6,663 | ​ |  | 8,436 | ​
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) | ​ | $ | 57,062 | ​ | $ | 53,580 | ​ | $ | 74,262 | ​ | $ | 158,117 | ​ | $ | 227,926 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average tangible common equity (non-GAAP) | ​ | $ | 1,315,085 | ​ | $ | 1,304,536 | ​ | $ | 1,567,937 | ​ | $ | 1,378,240 | ​ | $ | 1,574,961 | ​
Adjusted operating return on average tangible common equity (non-GAAP) | ​ |  | 17.21 | % |  | 16.47 | % |  | 18.79 | % |  | 15.34 | % |  | 19.35 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-tax pre-provision adjusted operating earnings (8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (GAAP) | ​ | $ | 58,070 | ​ | $ | 62,226 | ​ | $ | 74,565 | ​ | $ | 163,986 | ​ | $ | 216,138 | ​
Plus: Provision for credit losses | ​ | ​ | 6,412 | ​ | ​ | 3,559 | ​ | ​ | (18,850) | ​ | ​ | 12,771 | ​ | ​ | (59,888) | ​
Plus: Income tax expense | ​ | ​ | 11,894 | ​ | ​ | 12,500 | ​ | ​ | 16,368 | ​ | ​ | 33,667 | ​ | ​ | 46,821 | ​
Plus: Net loss related to balance sheet repositioning | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 14,695 | ​
Less: (Loss) gain on sale of securities | ​ | ​ | — | ​ | ​ | (2) | ​ | ​ | 9 | ​ | ​ | (2) | ​ | ​ | 87 | ​
Less: Gain on sale of DHFB | ​ | ​ | — | ​ | ​ | 9,082 | ​ | ​ | — | ​ | ​ | 9,082 | ​ | ​ | — | ​
Plus: Branch closing and facility consolidation costs | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,508 | ​ | ​ | 902 | ​
Pre-tax pre-provision adjusted operating earnings (non-GAAP) | ​ | $ | 76,376 | ​ | $ | 69,205 | ​ | $ | 72,074 | ​ | $ | 206,852 | ​ | $ | 218,581 | ​
Less: Dividends on preferred stock | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901 | ​
Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP) | ​ | $ | 73,409 | ​ | $ | 66,238 | ​ | $ | 69,107 | ​ | $ | 197,951 | ​ | $ | 209,680 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-tax pre-provision adjusted operating earnings (non-GAAP) | ​ | $ | 76,376 | ​ | $ | 69,205 | ​ | $ | 72,074 | ​ | $ | 206,852 | ​ | $ | 218,581 | ​
Less: PPP accretion interest income and fees | ​ | ​ | 454 | ​ | ​ | 1,346 | ​ | ​ | 11,173 | ​ | ​ | 4,786 | ​ | ​ | 36,806 | ​
Pre-PPP pre-tax pre-provision adjusted operating earnings (non-GAAP) (10) | ​ | $ | 75,922 | ​ | $ | 67,859 | ​ | $ | 60,901 | ​ | $ | 202,066 | ​ | $ | 181,775 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average common shares outstanding, diluted | ​ | ​ | 74,705,054 | ​ | ​ | 74,849,871 | ​ | ​ | 76,322,736 | ​ | ​ | 75,034,084 | ​ | ​ | 78,007,543 | ​
Pre-tax pre-provision earnings per common share, diluted | ​ | $ | 0.98 | ​ | $ | 0.88 | ​ | $ | 0.91 | ​ | $ | 2.64 | ​ | $ | 2.69 | ​

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/22 |  | 06/30/22 |  | 09/30/21 |  | 09/30/22 |  | 09/30/21 | ​
Adjusted Loans (9) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans held for investment (net of deferred fees and costs) (GAAP) | ​ | $ | 13,918,720 | ​ | $ | 13,655,408 | ​ | $ | 13,139,586 | ​ | $ | 13,918,720 | ​ | $ | 13,139,586 | ​
Less: PPP adjustments (net of deferred fees and costs) | ​ | ​ | 12,146 | ​ | ​ | 21,749 | ​ | ​ | 466,609 | ​ | ​ | 12,146 | ​ | ​ | 466,609 | ​
Total adjusted loans (non-GAAP) | ​ | $ | 13,906,574 | ​ | $ | 13,633,659 | ​ | $ | 12,672,977 | ​ | $ | 13,906,574 | ​ | $ | 12,672,977 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average loans held for investment (net of deferred fees and costs) (GAAP) | ​ | $ | 13,733,447 | ​ | $ | 13,525,529 | ​ | $ | 13,451,674 | ​ | $ | 13,521,507 | ​ | $ | 13,827,002 | ​
Less: Average PPP adjustments (net of deferred fees and costs) | ​ | ​ | 14,280 | ​ | ​ | 43,391 | ​ | ​ | 687,259 | ​ | ​ | 53,246 | ​ | ​ | 1,059,130 | ​
Total adjusted average loans (non-GAAP) | ​ | $ | 13,719,167 | ​ | $ | 13,482,138 | ​ | $ | 12,764,415 | ​ | $ | 13,468,261 | ​ | $ | 12,767,872 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage Origination Held for Sale Volume | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Refinance Volume | ​ | $ | 5,637 | ​ | $ | 14,916 | ​ | $ | 49,154 | ​ | $ | 53,753 | ​ | $ | 241,401 | ​
Purchase Volume | ​ |  | 66,360 | ​ |  | 84,551 | ​ |  | 93,819 | ​ |  | 209,206 | ​ |  | 250,523 | ​
Total Mortgage loan originations held for sale | ​ | $ | 71,997 | ​ | $ | 99,467 | ​ | $ | 142,973 | ​ | $ | 262,959 | ​ | $ | 491,924 | ​
% of originations held for sale that are refinances | ​ |  | 7.8 | % |  | 15.0 | % |  | 34.4 | % |  | 20.4 | % |  | 49.1 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Wealth | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Assets under management ("AUM") | ​ | $ | 4,065,059 | ​ | $ | 4,415,537 | ​ | $ | 6,377,518 | ​ | $ | 4,065,059 | ​ | $ | 6,377,518 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other Data | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
End of period full-time employees | ​ |  | 1,890 | ​ |  | 1,856 | ​ |  | 1,918 | ​ |  | 1,890 | ​ |  | 1,918 | ​
Number of full-service branches | ​ |  | 114 | ​ |  | 114 | ​ |  | 130 | ​ |  | 114 | ​ |  | 130 | ​
Number of automatic transaction machines ("ATMs") | ​ |  | 131 | ​ |  | 131 | ​ |  | 149 | ​ |  | 131 | ​ |  | 149 | ​

​

(1) | These are non-GAAP financial measures. Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), 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 yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.

(2) | These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.

(3) | These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.

(4)
(4) These are non-GAAP financial measures. Adjusted operating measures exclude the losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance associated with branch closing and corporate expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.

(5) | All ratios at September 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

(6) | These balances reflect the impact of the CARES Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.

(7) | The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gain on the sale of DHFB, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), as well as branch closing and facility consolidation 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 adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.

(8) | These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.

(9) | These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. 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 a Small Business Administration (“SBA”) guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.

(10) | These are non-GAAP financial measures. The Company believes excluding PPP accretion interest income and fees from operating earnings is useful to investors as it provides more clarity on the Company’s non-PPP related income.

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | September 30, | ​ | December 31, | ​ | September 30,
​ | 2022 |  | 2021 |  | 2021
ASSETS | ​ | (unaudited) | ​ | ​ | (audited) | ​ | ​ | (unaudited)
Cash and cash equivalents: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash and due from banks | $ | 177,969 | ​ | $ | 180,963 | ​ | $ | 255,648
Interest-bearing deposits in other banks | ​ | 211,785 | ​ | ​ | 618,714 | ​ | ​ | 807,225
Federal funds sold | ​ | 1,188 | ​ | ​ | 2,824 | ​ | ​ | 377
Total cash and cash equivalents | ​ | 390,942 | ​ | ​ | 802,501 | ​ | ​ | 1,063,250
Securities available for sale, at fair value | ​ | 2,717,323 | ​ | ​ | 3,481,650 | ​ | ​ | 3,195,176
Securities held to maturity, at carrying value | ​ | 841,349 | ​ | ​ | 628,000 | ​ | ​ | 535,722
Restricted stock, at cost | ​ | 82,050 | ​ | ​ | 76,825 | ​ | ​ | 76,825
Loans held for sale, at fair value | ​ | 12,889 | ​ | ​ | 20,861 | ​ | ​ | 35,417
Loans held for investment, net of deferred fees and costs | ​ | 13,918,720 | ​ | ​ | 13,195,843 | ​ | ​ | 13,139,586
Less: allowance for loan and lease losses | ​ | 108,009 | ​ | ​ | 99,787 | ​ | ​ | 101,798
Total loans held for investment, net | ​ | 13,810,711 | ​ | ​ | 13,096,056 | ​ | ​ | 13,037,788
Premises and equipment, net | ​ | 126,374 | ​ | ​ | 134,808 | ​ | ​ | 159,588
Goodwill | ​ | 925,211 | ​ | ​ | 935,560 | ​ | ​ | 935,560
Amortizable intangibles, net | ​ | 29,142 | ​ | ​ | 43,312 | ​ | ​ | 46,537
Bank owned life insurance | ​ | 437,988 | ​ | ​ | 431,517 | ​ | ​ | 430,341
Other assets | ​ | 576,252 | ​ | ​ | 413,706 | ​ | ​ | 419,453
Total assets | $ | 19,950,231 | ​ | $ | 20,064,796 | ​ | $ | 19,935,657
LIABILITIES | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest-bearing demand deposits | $ | 5,290,938 | ​ | $ | 5,207,324 | ​ | $ | 5,328,838
Interest-bearing deposits | ​ | 11,255,278 | ​ | ​ | 11,403,744 | ​ | ​ | 11,293,322
Total deposits | ​ | 16,546,216 | ​ | ​ | 16,611,068 | ​ | ​ | 16,622,160
Securities sold under agreements to repurchase | ​ | 146,182 | ​ | ​ | 117,870 | ​ | ​ | 95,181
Other short-term borrowings | ​ | 133,800 | ​ | ​ | — | ​ | ​ | —
Long-term borrowings | ​ | 389,576 | ​ | ​ | 388,724 | ​ | ​ | 290,584
Other liabilities | ​ | 453,307 | ​ | ​ | 237,063 | ​ | ​ | 233,293
Total liabilities | ​ | 17,669,081 | ​ | ​ | 17,354,725 | ​ | ​ | 17,241,218
Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
STOCKHOLDERS' EQUITY | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Preferred stock, $10.00 par value | ​ | 173 | ​ | ​ | 173 | ​ | ​ | 173
Common stock, $1.33 par value | ​ | 98,845 | ​ | ​ | 100,101 | ​ | ​ | 100,062
Additional paid-in capital | ​ | 1,769,858 | ​ | ​ | 1,807,368 | ​ | ​ | 1,804,617
Retained earnings | ​ | 874,393 | ​ | ​ | 783,794 | ​ | ​ | 760,164
Accumulated other comprehensive income (loss) | ​ | (462,119) | ​ | ​ | 18,635 | ​ | ​ | 29,423
Total stockholders' equity | ​ | 2,281,150 | ​ | ​ | 2,710,071 | ​ | ​ | 2,694,439
Total liabilities and stockholders' equity | $ | 19,950,231 | ​ | $ | 20,064,796 | ​ | $ | 19,935,657
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Common shares outstanding | ​ | 74,703,774 | ​ | ​ | 75,663,648 | ​ | ​ | 75,645,031
Common shares authorized | ​ | 200,000,000 | ​ | ​ | 200,000,000 | ​ | ​ | 200,000,000
Preferred shares outstanding | ​ | 17,250 | ​ | ​ | 17,250 | ​ | ​ | 17,250
Preferred shares authorized | ​ | 500,000 | ​ | ​ | 500,000 | ​ | ​ | 500,000

​

​

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Three Months Ended | ​ | Nine Months Ended
​ | September 30, | ​ | June 30, | ​ | September 30, | ​ | September 30, | ​ | September 30,
​ | 2022 |  | 2022 |  | 2021 |  | 2022 |  | 2021
Interest and dividend income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest and fees on loans | $ | 144,673 | ​ | $ | 123,266 | ​ | $ | 124,999 | ​ | $ | 382,139 | ​ | $ | 383,575
Interest on deposits in other banks | ​ | 941 | ​ | ​ | 157 | ​ | ​ | 291 | ​ | ​ | 1,229 | ​ | ​ | 454
Interest and dividends on securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable | ​ | 14,750 | ​ | ​ | 14,695 | ​ | ​ | 11,230 | ​ | ​ | 43,110 | ​ | ​ | 32,102
Nontaxable | ​ | 10,792 | ​ | ​ | 10,637 | ​ | ​ | 9,859 | ​ | ​ | 31,889 | ​ | ​ | 28,773
Total interest and dividend income | ​ | 171,156 | ​ | ​ | 148,755 | ​ | ​ | 146,379 | ​ | ​ | 458,367 | ​ | ​ | 444,904
Interest expense: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest on deposits | ​ | 15,386 | ​ | ​ | 6,097 | ​ | ​ | 5,837 | ​ | ​ | 25,966 | ​ | ​ | 22,203
Interest on short-term borrowings | ​ | 1,229 | ​ | ​ | 555 | ​ | ​ | 22 | ​ | ​ | 1,805 | ​ | ​ | 91
Interest on long-term borrowings | ​ | 3,826 | ​ | ​ | 3,336 | ​ | ​ | 3,032 | ​ | ​ | 10,183 | ​ | ​ | 9,676
Total interest expense | ​ | 20,441 | ​ | ​ | 9,988 | ​ | ​ | 8,891 | ​ | ​ | 37,954 | ​ | ​ | 31,970
Net interest income | ​ | 150,715 | ​ | ​ | 138,767 | ​ | ​ | 137,488 | ​ | ​ | 420,413 | ​ | ​ | 412,934
Provision for credit losses | ​ | 6,412 | ​ | ​ | 3,559 | ​ | ​ | (18,850) | ​ | ​ | 12,771 | ​ | ​ | (59,888)
Net interest income after provision for credit losses | ​ | 144,303 | ​ | ​ | 135,208 | ​ | ​ | 156,338 | ​ | ​ | 407,642 | ​ | ​ | 472,822
Noninterest income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Service charges on deposit accounts | ​ | 6,784 | ​ | ​ | 8,040 | ​ | ​ | 7,198 | ​ | ​ | 22,421 | ​ | ​ | 19,314
Other service charges, commissions and fees | ​ | 1,770 | ​ | ​ | 1,709 | ​ | ​ | 1,534 | ​ | ​ | 5,134 | ​ | ​ | 4,970
Interchange fees | ​ | 2,461 | ​ | ​ | 2,268 | ​ | ​ | 2,203 | ​ | ​ | 6,539 | ​ | ​ | 6,252
Fiduciary and asset management fees | ​ | 4,134 | ​ | ​ | 6,939 | ​ | ​ | 7,029 | ​ | ​ | 18,329 | ​ | ​ | 20,323
Mortgage banking income | ​ | 1,390 | ​ | ​ | 2,200 | ​ | ​ | 4,818 | ​ | ​ | 6,707 | ​ | ​ | 17,692
Bank owned life insurance income | ​ | 3,445 | ​ | ​ | 2,716 | ​ | ​ | 2,727 | ​ | ​ | 8,858 | ​ | ​ | 8,202
Loan-related interest rate swap fees | ​ | 2,050 | ​ | ​ | 2,600 | ​ | ​ | 1,102 | ​ | ​ | 8,510 | ​ | ​ | 4,176
Other operating income | ​ | 3,550 | ​ | ​ | 11,814 | ​ | ​ | 3,327 | ​ | ​ | 17,525 | ​ | ​ | 8,459
Total noninterest income | ​ | 25,584 | ​ | ​ | 38,286 | ​ | ​ | 29,938 | ​ | ​ | 94,023 | ​ | ​ | 89,388
Noninterest expenses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Salaries and benefits | ​ | 56,600 | ​ | ​ | 55,305 | ​ | ​ | 53,534 | ​ | ​ | 170,203 | ​ | ​ | 156,959
Occupancy expenses | ​ | 6,408 | ​ | ​ | 6,395 | ​ | ​ | 7,251 | ​ | ​ | 19,685 | ​ | ​ | 21,705
Furniture and equipment expenses | ​ | 3,673 | ​ | ​ | 3,590 | ​ | ​ | 4,040 | ​ | ​ | 10,860 | ​ | ​ | 11,919
Technology and data processing | ​ | 8,273 | ​ | ​ | 7,862 | ​ | ​ | 7,534 | ​ | ​ | 23,930 | ​ | ​ | 21,657
Professional services | ​ | 3,504 | ​ | ​ | 4,680 | ​ | ​ | 3,792 | ​ | ​ | 12,274 | ​ | ​ | 13,161
Marketing and advertising expense | ​ | 2,343 | ​ | ​ | 2,502 | ​ | ​ | 2,548 | ​ | ​ | 7,008 | ​ | ​ | 7,330
FDIC assessment premiums and other insurance | ​ | 3,094 | ​ | ​ | 2,765 | ​ | ​ | 2,172 | ​ | ​ | 8,344 | ​ | ​ | 6,798
Franchise and other taxes | ​ | 4,507 | ​ | ​ | 4,500 | ​ | ​ | 4,432 | ​ | ​ | 13,506 | ​ | ​ | 13,303
Loan-related expenses | ​ | 1,575 | ​ | ​ | 1,867 | ​ | ​ | 1,503 | ​ | ​ | 5,218 | ​ | ​ | 5,289
Amortization of intangible assets | ​ | 2,480 | ​ | ​ | 2,915 | ​ | ​ | 3,381 | ​ | ​ | 8,434 | ​ | ​ | 10,679
Loss on debt extinguishment | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 14,695
Other expenses | ​ | 7,466 | ​ | ​ | 6,387 | ​ | ​ | 5,156 | ​ | ​ | 24,550 | ​ | ​ | 15,756
Total noninterest expenses | ​ | 99,923 | ​ | ​ | 98,768 | ​ | ​ | 95,343 | ​ | ​ | 304,012 | ​ | ​ | 299,251
Income before income taxes | ​ | 69,964 | ​ | ​ | 74,726 | ​ | ​ | 90,933 | ​ | ​ | 197,653 | ​ | ​ | 262,959
Income tax expense | ​ | 11,894 | ​ | ​ | 12,500 | ​ | ​ | 16,368 | ​ | ​ | 33,667 | ​ | ​ | 46,821
Net income | $ | 58,070 | ​ | $ | 62,226 | ​ | $ | 74,565 | ​ | ​ | 163,986 | ​ | ​ | 216,138
Dividends on preferred stock | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901
Net income available to common shareholders | $ | 55,103 | ​ | $ | 59,259 | ​ | $ | 71,598 | ​ | $ | 155,085 | ​ | $ | 207,237
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic earnings per common share | $ | 0.74 | ​ | $ | 0.79 | ​ | $ | 0.94 | ​ | $ | 2.07 | ​ | $ | 2.66
Diluted earnings per common share | $ | 0.74 | ​ | $ | 0.79 | ​ | $ | 0.94 | ​ | $ | 2.07 | ​ | $ | 2.66

​

​

​

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

(Dollars in thousands)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | For the Quarter Ended
​ | September 30, 2022 | ​ | June 30, 2022
​ | Average Balance |  | Interest Income / Expense (1) |  | Yield / Rate (1)(2) |  | Average Balance |  | Interest Income / Expense (1) |  | Yield / Rate (1)(2)
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable | $ | 2,193,279 | ​ | $ | 14,750 | ​ | 2.67% | ​ | $ | 2,322,024 | ​ | $ | 14,695 | ​ | 2.54%
Tax-exempt | ​ | 1,625,328 | ​ | ​ | 13,661 | ​ | 3.33% | ​ | ​ | 1,608,888 | ​ | ​ | 13,465 | ​ | 3.36%
Total securities | ​ | 3,818,607 | ​ | ​ | 28,411 | ​ | 2.95% | ​ | ​ | 3,930,912 | ​ | ​ | 28,160 | ​ | 2.87%
Loans, net (3) | ​ | 13,733,447 | ​ | ​ | 145,433 | ​ | 4.20% | ​ | ​ | 13,525,529 | ​ | ​ | 123,764 | ​ | 3.67%
Other earning assets | ​ | 327,168 | ​ | ​ | 1,154 | ​ | 1.40% | ​ | ​ | 190,029 | ​ | ​ | 408 | ​ | 0.86%
Total earning assets | $ | 17,879,222 | ​ | $ | 174,998 | ​ | 3.88% | ​ | $ | 17,646,470 | ​ | $ | 152,332 | ​ | 3.46%
Allowance for loan and lease losses | ​ | (104,746) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (103,211) | ​ | ​ | ​ | ​ | ​
Total non-earning assets | ​ | 2,206,024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,176,143 | ​ | ​ | ​ | ​ | ​
Total assets | $ | 19,980,500 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 19,719,402 | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities and Stockholders' Equity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest-bearing deposits: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Transaction and money market accounts | $ | 8,247,650 | ​ | $ | 11,342 | ​ | 0.55% | ​ | $ | 7,987,888 | ​ | $ | 3,082 | ​ | 0.15%
Regular savings | ​ | 1,171,071 | ​ | ​ | 64 | ​ | 0.02% | ​ | ​ | 1,169,199 | ​ | ​ | 55 | ​ | 0.02%
Time deposits | ​ | 1,745,224 | ​ | ​ | 3,980 | ​ | 0.90% | ​ | ​ | 1,667,378 | ​ | ​ | 2,960 | ​ | 0.71%
Total interest-bearing deposits | ​ | 11,163,945 | ​ | ​ | 15,386 | ​ | 0.55% | ​ | ​ | 10,824,465 | ​ | ​ | 6,097 | ​ | 0.23%
Other borrowings | ​ | 703,272 | ​ | ​ | 5,055 | ​ | 2.85% | ​ | ​ | 765,886 | ​ | ​ | 3,891 | ​ | 2.04%
Total interest-bearing liabilities | $ | 11,867,217 | ​ | $ | 20,441 | ​ | 0.68% | ​ | $ | 11,590,351 | ​ | $ | 9,988 | ​ | 0.35%
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest-bearing liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Demand deposits | ​ | 5,324,279 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,366,591 | ​ | ​ | ​ | ​ | ​
Other liabilities | ​ | 352,005 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 317,415 | ​ | ​ | ​ | ​ | ​
Total liabilities | $ | 17,543,501 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 17,274,357 | ​ | ​ | ​ | ​ | ​
Stockholders' equity | ​ | 2,436,999 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,445,045 | ​ | ​ | ​ | ​ | ​
Total liabilities and stockholders' equity | $ | 19,980,500 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 19,719,402 | ​ | ​ | ​ | ​ | ​
Net interest income | ​ | ​ | ​ | $ | 154,557 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 142,344 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate spread | ​ | ​ | ​ | ​ | ​ | ​ | 3.20% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3.11%
Cost of funds | ​ | ​ | ​ | ​ | ​ | ​ | 0.45% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 0.22%
Net interest margin | ​ | ​ | ​ | ​ | ​ | ​ | 3.43% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3.24%

(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.