EX-99.1 2 aub-20231019xex99d1.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 19, 2023 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders of $51.1 million and basic and diluted earnings per common share of $0.68 for the third quarter of 2023 and adjusted operating earnings available to common shareholders(1) of $59.8 million and adjusted diluted operating earnings per common share(1) of $0.80 for the third quarter of 2023.

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“Atlantic Union delivered strong operating results in the third quarter,” said John C. Asbury, president and chief executive officer of Atlantic Union. “We were especially pleased with our customer deposit growth that more than funded loan growth during the quarter, negligible charge-offs, and the impact of our expense reduction actions taken earlier in the year. The proactive measures we have taken to manage this challenging environment are serving us well.”

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“We believe that our model of a diversified, traditional, full-service bank that delivers the products and services that our customers want and need combined with local decision making, responsiveness, and client service orientation positively sets us apart from other banks, both larger and smaller. 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.”

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STRATEGIC ACTIONS

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Merger with American National Bankshares Inc. (“American National”)

On July 25, 2023, the Company announced that it entered into a merger agreement to acquire American National. During the third quarter of 2023, the Company incurred pre-tax merger costs of approximately $2.0 million.

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Cost Saving Initiatives

As previously disclosed, the Company initiated a series of strategic cost savings measures during the second quarter of 2023 that is expected to reduce the annual expense run rate by approximately $17 million. As a result of these measures, the Company incurred pre-tax expenses of $8.7 million in the third quarter of 2023 and $3.9 million in the second quarter of 2023, principally composed of severance charges related to headcount reductions, costs related to modifying certain third-party vendor contracts, and charges for exiting certain leases.

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Sale-Leaseback Transaction

On September 20, 2023, Atlantic Union Bank (the “Bank”) executed a sale-leaseback transaction and sold 27 properties, which consisted of 25 branches and a drive thru and parking lot, each adjacent to a sold branch, to a single purchaser for an aggregate purchase price of $45.8 million. Concurrently, the Bank entered into absolute net lease agreements with the purchaser under which the Bank will lease each of the properties for an initial term of 17 years with specified renewal options. The sale-leaseback transaction resulted in a pre-tax gain of approximately $27.7 million during the third quarter of 2023, after transaction-related expenses.

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Available for Sale (“AFS”) Securities Sale

Concurrent with the sale-leaseback transaction, also on September 20, 2023, the Company restructured a portion of its investment portfolio by selling low yielding AFS securities with a book value of $228.3 million, resulting in a pre-tax net loss of $27.7 million. The net proceeds from the securities sale transaction were reinvested into higher yielding AFS securities at the end of the third quarter of 2023.

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NET INTEREST INCOME

For the third quarter of 2023, net interest income was $151.9 million, a decrease of $143,000 from $152.1 million in the second quarter of 2023. Net interest income (FTE)(1) was $155.7 million in the third quarter of 2023, a decrease of $65,000 from $155.8 million in the second quarter of 2023 due to higher deposit costs driven by increases in market interest rates, changes in the deposit mix as depositors continue to migrate to higher costing interest bearing deposit accounts, and growth in average deposit balances, partially offset by an increase in loan yields on variable rate loans due to increases in short-term interest rates during the quarter, as well as growth in average loans held for investment (“LHFI”). Our net interest margin decreased 10 basis points from the prior quarter to 3.27% at September 30, 2023, and our net interest margin (FTE)(1) decreased 10 basis points during the same period to 3.35%. Earning asset yields increased by 20 basis points to 5.39% in the third quarter of 2023 compared to the second quarter of 2023, primarily due to the impact of increases in market interest rates on loans and loan growth. Our cost of funds increased by 30 basis points to 2.04% at September 30, 2023 compared to the prior quarter, due primarily to higher deposit costs driven by higher rates and changes in the deposit mix as noted above.

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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 third quarter of 2023. The impact of net accretion in the second and third quarters of 2023 are reflected in the following table (dollars in thousands):

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Loan | ​ | Deposit | ​ | Borrowings | ​ | ​ | ​
​ |  | Accretion |  | Amortization |  | Amortization |  | Total
For the quarter ended June 30, 2023 | ​ | $ | 1,073 | ​ | $ | (7) | ​ | $ | (213) | ​ | $ | 853
For the quarter ended September 30, 2023 | ​ | ​ | 1,300 | ​ | ​ | (6) | ​ | ​ | (215) | ​ | ​ | 1,079

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ASSET QUALITY

Overview

At September 30, 2023, nonperforming assets (“NPAs”) as a percentage of total LHFI was 0.19% and was unchanged from the prior quarter and included nonaccrual loans of $28.6 million. Accruing past due loans as a percentage of total LHFI totaled 27 basis points at September 30, 2023, an increase of 11 basis points from June 30, 2023, and an increase of 6 basis points from September 30, 2022. The increase in past due loan levels from June 30, 2023 was primarily within the 30-59 days past due category and resulted primarily from increases in past due credit relationships within the commercial real estate and commercial and industrial portfolios. Net charge-offs were 0.01% of total average LHFI (annualized) for the third quarter of 2023, a decrease of 3 basis points from June 30, 2023, and a decrease of 1 basis point from September 30, 2022. The allowance for credit losses (“ACL”) totaled $140.9 million at September 30, 2023, a $4.7 million increase from the prior quarter.

Nonperforming Assets

At September 30, 2023, NPAs totaled $28.8 million, compared to $29.2 million in the prior quarter. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
​ | ​ | 2023 | ​ | 2023 | ​ | 2023 | ​ | 2022 | ​ | 2022
Nonaccrual loans | ​ | $ | 28,626 | ​ | $ | 29,105 | ​ | $ | 29,082 | ​ | $ | 27,038 | ​ | $ | 26,500
Foreclosed properties | ​ |  | 149 | ​ |  | 50 | ​ |  | 29 | ​ |  | 76 | ​ |  | 2,087
Total nonperforming assets | ​ | $ | 28,775 | ​ | $ | 29,155 | ​ | $ | 29,111 | ​ | $ | 27,114 | ​ | $ | 28,587

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

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
​ | ​ | 2023 | ​ | 2023 | ​ | 2023 | ​ | 2022 | ​ | 2022
Beginning Balance | ​ | $ | 29,105 | ​ | $ | 29,082 | ​ | $ | 27,038 | ​ | $ | 26,500 | ​ | $ | 29,070
Net customer payments | ​ |  | (1,947) | ​ |  | (5,950) | ​ |  | (1,755) | ​ |  | (1,805) | ​ |  | (3,725)
Additions | ​ |  | 1,651 | ​ |  | 6,685 | ​ |  | 4,151 | ​ |  | 2,935 | ​ |  | 1,302
Charge-offs | ​ |  | (64) | ​ |  | (712) | ​ |  | (39) | ​ |  | (461) | ​ |  | (125)
Loans returning to accruing status | ​ |  | (119) | ​ |  | — | ​ |  | (313) | ​ |  | (131) | ​ |  | —
Transfers to foreclosed property | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | (22)
Ending Balance | ​ | $ | 28,626 | ​ | $ | 29,105 | ​ | $ | 29,082 | ​ | $ | 27,038 | ​ | $ | 26,500

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Past Due Loans

At September 30, 2023, past due loans still accruing interest totaled $40.6 million or 0.27% of total LHFI, compared to $24.1 million or 0.16% of total LHFI at June 30, 2023, and $29.0 million or 0.21% of total LHFI at September 30, 2022. The increase in past due loan levels from June 30, 2023 was primarily within the 30-59 days past due category and driven by increases in past due credit relationships within the commercial real estate and commercial and industrial portfolios. Of the total past due loans still accruing interest, $11.9 million or 0.08% of total LHFI were loans past due 90 days or more at September 30, 2023, compared to $10.1 million or 0.07% of total LHFI at June 30, 2023, and $7.4 million or 0.05% of total LHFI at September 30, 2022.

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Allowance for Credit Losses

At September 30, 2023, the ACL was $140.9 million and included an allowance for loan and lease losses (“ALLL”) of $125.6 million and a reserve for unfunded commitments of $15.3 million. The ACL at September 30, 2023 increased $4.7 million from June 30, 2023 due to loan growth in the third quarter of 2023 and the impact of continued uncertainty in the economic outlook.

The ACL as a percentage of total LHFI was 0.92% at September 30, 2023, an increase of 2 basis points from June 30, 2023. The ALLL as a percentage of total LHFI was 0.82% at September 30, 2023, compared to 0.80% at June 30, 2023.

Net Charge-offs

Net charge-offs were $294,000 or 0.01% of total average LHFI on an annualized basis for the third quarter of 2023, compared to $1.6 million or 0.04% (annualized) for the second quarter of 2023, and $587,000 or 0.02% (annualized) for the third quarter of 2022.

Provision for Credit Losses

For the third quarter of 2023, the Company recorded a provision for credit losses of $5.0 million, compared to a provision for credit losses of $6.1 million in the prior quarter, and a provision for credit losses of $6.4 million in the third quarter of 2022.

NONINTEREST INCOME

Noninterest income increased $2.9 million to $27.1 million for the third quarter of 2023 from $24.2 million in the prior quarter, primarily driven by a $939,000 increase in other service charges, commissions and fees primarily due to a merchant services vendor contract signing bonus, a $714,000 increase in equity method investment income (included within other operating income), a $439,000 increase in service charges on deposits accounts, and a $379,000 increase in loan-related interest rate swap fees due to several new swap transactions. Noninterest income in the third quarter also included a $27.7 million gain related to the sale-leaseback transaction, included in other operating income, which was almost wholly offset by $27.6 million of losses incurred on the sale of AFS securities in the third quarter of 2023.

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NONINTEREST EXPENSE

Noninterest expense increased $2.8 million to $108.5 million for the third quarter of 2023 from $105.7 million in the prior quarter, primarily driven by a $10.0 million increase in other expenses, which includes $8.7 million in expenses associated with strategic cost saving initiatives and $2.0 million in merger-related costs. Adjusted operating noninterest expense,(1) which excludes amortization of intangible assets ($2.2 million in both the third quarter and second quarter of 2023), expenses associated with strategic cost savings initiatives ($8.7 million in the third quarter and $3.9 million in the second quarter of 2023), and merger-related costs associated with the American National merger ($2.0 million in the third quarter of 2023), decreased $3.9 million to $95.7 million for the third quarter of 2023 from $99.5 million in the prior quarter. The decrease in adjusted operating noninterest expense(1) was primarily due to a $1.6 million decrease in salaries and benefits expense reflecting the impact of strategic cost saving initiatives, a $1.1 million decrease in professional services expense related to strategic projects in the prior quarter, a $643,000 decrease in technology and data processing expense, and a $598,000 decrease in marketing and advertising expense.

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INCOME TAXES

The effective tax rate for the three months ended September 30, 2023 and 2022 was 17.6% and 17.0%, respectively, and the effective tax rate for the nine months ended September 30, 2023 and 2022 was 16.3% and 17.0%, respectively.

BALANCE SHEET

At September 30, 2023, total assets were $20.7 billion, an increase of $133.9 million or approximately 2.6% (annualized) from June 30, 2023, and an increase of $786.0 million or approximately 3.9% from September 30, 2022. Total assets increased from the prior quarter primarily due to a $216.7 million increase in LHFI (net of deferred fees and costs), partially offset by a $110.3 million decrease in investment securities due primarily to the decline in market value of the AFS securities portfolio due to the impact of market interest rates. Total assets increased from the prior year period primarily due to a $1.4 billion increase in LHFI (net of deferred fees and costs), partially offset by a $607.7 million decrease in investment securities due primarily to the sale of AFS securities in the first and third quarters of 2023.

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At September 30, 2023, LHFI (net of deferred fees and costs) totaled $15.3 billion, an increase of $216.7 million or 5.7% (annualized) from $15.1 billion at June 30, 2023. Average LHFI (net of deferred fees and costs) totaled $15.1 billion at September 30, 2023, an increase of $393.5 million or 10.6% (annualized) from the prior quarter. At September 30, 2023, both LHFI (net of deferred fees and costs) and average LHFI (net of deferred fees and costs) increased $1.4 billion from September 30, 2022. LHFI (net of deferred fees and costs) increased from the prior quarter primarily due to increases in the multifamily real estate and other commercial portfolios and increased from the same period in the prior year primarily due to increases in the commercial and industrial and commercial real estate non-owner occupied portfolios.

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At September 30, 2023, total investments were $3.0 billion, a decrease of $110.3 million from June 30, 2023 and a decrease of $607.7 million from September 30, 2022. AFS securities totaled $2.1 billion at September 30, 2023, $2.2 billion at June 30, 2023, and $2.7 billion at September 30, 2022. At September 30, 2023, total net unrealized losses on the AFS securities portfolio were $523.1 million, compared to $450.1 million at June 30, 2023 and $507.7 million at September 30, 2022. Held to maturity (“HTM”) securities are carried at cost and totaled $843.3 million at September 30, 2023, $849.6 million at June 30, 2023, and $841.3 million at September 30, 2022 and had net unrealized losses of $81.2 million at September 30, 2023, compared to $41.8 million at June 30, 2023 and $75.9 million at September 30, 2022.

At September 30, 2023, total deposits were $16.8 billion, an increase of $374.5 million or approximately 9.1% (annualized) from June 30, 2023. Average deposits at September 30, 2023 increased from the prior quarter by $515.5 million or 12.6% (annualized). Total deposits at September 30, 2023 increased $240.3 million or 1.5% from September 30, 2022, and quarterly average deposits at September 30, 2023 increased $307.4 million or 1.9% from the same period in the prior year. Total deposits increased from the prior quarter and the prior year period primarily due to increases in interest bearing customer deposits and brokered deposits, partially offset by decreases in demand deposits.

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At September 30, 2023, total borrowings were $1.0 billion, a decrease of $299.6 million from June 30, 2023, and an increase of $351.1 million from September 30, 2022. Total borrowings decreased from the prior quarter primarily due to

paydowns of short-term borrowings due to deposit growth and increased from the prior year period due to increased short-term borrowings used to fund loan growth.

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

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | June 30, |  | September 30, |
​ | ​ | 2023 | ​ | 2023 | ​ | 2022 |
Common equity Tier 1 capital ratio (2) |  | 9.94 | % | 9.86 | % | 9.96 | %
Tier 1 capital ratio (2) |  | 10.88 | % | 10.81 | % | 10.98 | %
Total capital ratio (2) |  | 13.70 | % | 13.64 | % | 13.80 | %
Leverage ratio (Tier 1 capital to average assets) (2) |  | 9.62 | % | 9.64 | % | 9.32 | %
Common equity to total assets |  | 10.72 | % | 10.96 | % | 10.60 | %
Tangible common equity to tangible assets (1) |  | 6.45 | % | 6.66 | % | 6.11 | %

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During the third quarter of 2023, 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 2023 and the third quarter of 2022. During the third quarter of 2023, the Company also declared and paid cash dividends of $0.30 per common share, consistent with the second quarter of 2023 and the third quarter of 2022.

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

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(2) All ratios at September 30, 2023 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 (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 109 branches and 123 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of September 30, 2023. 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 2023 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 19, 2023 during which the Company’s management will review the Company’s financial results for the third quarter 2023 and provide an update on recent activities.

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

https://edge.media-server.com/mmc/p/xamg8swa.

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

https://register.vevent.com/register/BI2b71d4244e9e49b393decce9c92d4054. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

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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/.

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NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the period ended September 30, 2023, 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

This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding our expectations with regard to our business, financial and operating results, including our deposit base, the impact of future economic conditions, the expected impact of our cost saving measures initiative in the second quarter of 2023, and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of or changes in:

| ● | market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs and our loan and securities portfolios;

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

| ● | adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior;

| ● | the sufficiency of liquidity;

| ● | general economic and financial market conditions, in the United States generally and particularly in the markets in which we operate and which our loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;

| ● | the failure to close our previously announced merger with American National when expected or at all because required regulatory, American National shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all, and the risk that any regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed merger;

| ● | the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between the Company and American National;

| ● | any change in the purchase accounting assumptions used regarding the American National assets acquired and liabilities assumed to determine the fair value and credit marks, particularly in light of the current rising interest rate environment;

| ● | the possibility that the anticipated benefits of the proposed merger, including anticipated cost savings and strategic gains, are not realized when expected or at all;

| ● | the proposed merger being more expensive or taking longer to complete than anticipated, including as a result of unexpected factors or events;

| ● | the diversion of management’s attention from ongoing business operations and opportunities do to the proposed merger;

| ● | potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed merger;

| ● | the dilutive effect of shares of the Company’s common stock to be issued at the completion of the proposed merger;

| ● | changes in the Company’s or American National’s share price before closing;

| ● | 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 our loan or investment portfolios and changes therein;

| ● | demand for loan products and financial services in our market areas;

| ● | our ability to manage our growth or implement our growth strategy;

| ● | the effectiveness of expense reduction plans;

| ● | the introduction of new lines of business or new products and services;

| ● | our ability to recruit and retain key employees;

| ● | real estate values in our lending area;

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

| ● | an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by inflation, changing interest rates, or other factors;

| ● | our liquidity and capital positions;

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

| ● | the effectiveness of our credit processes and management of our credit risk;

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

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

| ● | operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;

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

| ● | the discontinuation of LIBOR and its impact on the financial markets, and our 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 our 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;

| ● | actual or potential claims, damages, and fines related to litigation or government actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;

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

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

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

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Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2022, Part II, Item 1A. Risk Factors in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2023 and March 31, 2023, and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements

contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)

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​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of & For Three Months Ended |  | As of & For Nine Months Ended | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 | ​ | 09/30/22 | ​
Results of Operations | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest and dividend income | ​ | $ | 247,159 | ​ | $ | 230,247 | ​ | $ | 171,156 | ​ | $ | 694,952 | ​ | $ | 458,367 | ​
Interest expense | ​ |  | 95,218 | ​ |  | 78,163 | ​ |  | 20,441 | ​ |  | 237,483 | ​ |  | 37,954 | ​
Net interest income | ​ |  | 151,941 | ​ |  | 152,084 | ​ |  | 150,715 | ​ |  | 457,469 | ​ |  | 420,413 | ​
Provision for credit losses | ​ |  | 4,991 | ​ |  | 6,069 | ​ |  | 6,412 | ​ |  | 22,911 | ​ |  | 12,771 | ​
Net interest income after provision for credit losses | ​ |  | 146,950 | ​ |  | 146,015 | ​ |  | 144,303 | ​ |  | 434,558 | ​ |  | 407,642 | ​
Noninterest income | ​ |  | 27,094 | ​ |  | 24,197 | ​ |  | 25,584 | ​ |  | 60,918 | ​ |  | 94,023 | ​
Noninterest expenses | ​ |  | 108,508 | ​ |  | 105,661 | ​ |  | 99,923 | ​ |  | 322,442 | ​ |  | 304,012 | ​
Income before income taxes | ​ |  | 65,536 | ​ |  | 64,551 | ​ |  | 69,964 | ​ |  | 173,034 | ​ |  | 197,653 | ​
Income tax expense | ​ |  | 11,519 | ​ |  | 9,310 | ​ |  | 11,894 | ​ |  | 28,123 | ​ |  | 33,667 | ​
Net income | ​ |  | 54,017 | ​ |  | 55,241 | ​ |  | 58,070 | ​ |  | 144,911 | ​ |  | 163,986 | ​
Dividends on preferred stock | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901 | ​
Net income available to common shareholders | ​ | $ | 51,050 | ​ | $ | 52,274 | ​ | $ | 55,103 | ​ | $ | 136,010 | ​ | $ | 155,085 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest earned on earning assets (FTE) (1) | ​ | $ | 250,903 | ​ | $ | 233,913 | ​ | $ | 174,998 | ​ | $ | 706,150 | ​ | $ | 469,122 | ​
Net interest income (FTE) (1) | ​ |  | 155,685 | ​ |  | 155,750 | ​ |  | 154,557 | ​ |  | 468,667 | ​ |  | 431,168 | ​
Total revenue (FTE) (1) | ​ | ​ | 182,779 | ​ | ​ | 179,947 | ​ | ​ | 180,141 | ​ | ​ | 529,585 | ​ | ​ | 525,191 | ​
Pre-tax pre-provision adjusted operating earnings (7) | ​ | ​ | 81,086 | ​ | ​ | 74,553 | ​ | ​ | 76,376 | ​ | ​ | 228,837 | ​ | ​ | 206,852 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Key Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share, diluted | ​ | $ | 0.68 | ​ | $ | 0.70 | ​ | $ | 0.74 | ​ | $ | 1.81 | ​ | $ | 2.07 | ​
Return on average assets (ROA) | ​ |  | 1.04 | % |  | 1.10 | % |  | 1.15 | % |  | 0.95 | % |  | 1.10 | %
Return on average equity (ROE) | ​ |  | 8.76 | % |  | 9.00 | % |  | 9.45 | % |  | 7.93 | % |  | 8.72 | %
Return on average tangible common equity (ROTCE) (2) (3) | ​ |  | 15.71 | % |  | 16.11 | % |  | 17.21 | % |  | 14.22 | % |  | 15.69 | %
Efficiency ratio | ​ |  | 60.61 | % |  | 59.94 | % |  | 56.68 | % |  | 62.20 | % |  | 59.10 | %
Efficiency ratio (FTE) (1) | ​ | ​ | 59.37 | % |  | 58.72 | % |  | 55.47 | % |  | 60.89 | % |  | 57.89 | %
Net interest margin | ​ |  | 3.27 | % |  | 3.37 | % |  | 3.34 | % |  | 3.35 | % |  | 3.16 | %
Net interest margin (FTE) (1) | ​ |  | 3.35 | % |  | 3.45 | % |  | 3.43 | % |  | 3.43 | % |  | 3.24 | %
Yields on earning assets (FTE) (1) | ​ |  | 5.39 | % |  | 5.19 | % |  | 3.88 | % |  | 5.17 | % |  | 3.52 | %
Cost of interest-bearing liabilities | ​ |  | 2.80 | % |  | 2.42 | % |  | 0.68 | % |  | 2.42 | % |  | 0.43 | %
Cost of deposits | ​ |  | 1.97 | % |  | 1.61 | % |  | 0.37 | % |  | 1.63 | % |  | 0.21 | %
Cost of funds | ​ |  | 2.04 | % |  | 1.74 | % |  | 0.45 | % |  | 1.74 | % |  | 0.28 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating Measures (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted operating earnings | ​ | $ | 62,749 | ​ | $ | 58,348 | ​ | $ | 58,070 | ​ | $ | 171,286 | ​ | $ | 160,355 | ​
Adjusted operating earnings available to common shareholders | ​ | ​ | 59,782 | ​ | ​ | 55,381 | ​ | ​ | 55,103 | ​ | ​ | 162,385 | ​ | ​ | 151,454 | ​
Adjusted operating earnings per common share, diluted | ​ | $ | 0.80 | ​ | $ | 0.74 | ​ | $ | 0.74 | ​ | $ | 2.17 | ​ | $ | 2.02 | ​
Adjusted operating ROA | ​ |  | 1.21 | % |  | 1.16 | % |  | 1.15 | % |  | 1.12 | % |  | 1.08 | %
Adjusted operating ROE | ​ |  | 10.17 | % |  | 9.51 | % |  | 9.45 | % | ​ | 9.37 | % |  | 8.53 | %
Adjusted operating ROTCE (2) (3) | ​ |  | 18.31 | % |  | 17.03 | % |  | 17.21 | % |  | 16.88 | % |  | 15.34 | %
Adjusted operating efficiency ratio (FTE) (1)(6) | ​ |  | 52.36 | % |  | 55.30 | % |  | 54.09 | % |  | 54.55 | % |  | 56.20 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Per Share Data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Earnings per common share, basic | ​ | $ | 0.68 | ​ | $ | 0.70 | ​ | $ | 0.74 | ​ | $ | 1.81 | ​ | $ | 2.07 | ​
Earnings per common share, diluted | ​ |  | 0.68 | ​ |  | 0.70 | ​ |  | 0.74 | ​ |  | 1.81 | ​ |  | 2.07 | ​
Cash dividends paid per common share | ​ |  | 0.30 | ​ |  | 0.30 | ​ |  | 0.30 | ​ |  | 0.90 | ​ |  | 0.86 | ​
Market value per share | ​ |  | 28.78 | ​ |  | 25.95 | ​ |  | 30.38 | ​ |  | 28.78 | ​ |  | 30.38 | ​
Book value per common share | ​ |  | 29.82 | ​ |  | 30.31 | ​ |  | 28.46 | ​ |  | 29.82 | ​ |  | 28.46 | ​
Tangible book value per common share (2) | ​ |  | 17.12 | ​ |  | 17.58 | ​ |  | 15.61 | ​ |  | 17.12 | ​ |  | 15.61 | ​
Price to earnings ratio, diluted | ​ |  | 10.65 | ​ |  | 9.28 | ​ |  | 10.37 | ​ |  | 11.86 | ​ |  | 10.99 | ​
Price to book value per common share ratio | ​ |  | 0.97 | ​ |  | 0.86 | ​ |  | 1.07 | ​ |  | 0.97 | ​ |  | 1.07 | ​
Price to tangible book value per common share ratio (2) | ​ |  | 1.68 | ​ |  | 1.48 | ​ |  | 1.95 | ​ |  | 1.68 | ​ |  | 1.95 | ​
Weighted average common shares outstanding, basic | ​ |  | 74,999,128 | ​ |  | 74,995,450 | ​ |  | 74,703,699 | ​ |  | 74,942,851 | ​ |  | 75,029,000 | ​
Weighted average common shares outstanding, diluted | ​ |  | 74,999,128 | ​ |  | 74,995,557 | ​ |  | 74,705,054 | ​ |  | 74,943,999 | ​ |  | 75,034,084 | ​
Common shares outstanding at end of period | ​ |  | 74,997,132 | ​ |  | 74,998,075 | ​ |  | 74,703,774 | ​ |  | 74,997,132 | ​ |  | 74,703,774 | ​

​

​

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 | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 | ​ | 09/30/22 |
Capital Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Common equity Tier 1 capital ratio (5) |  | ​ | 9.94 | % | ​ | 9.86 | % | ​ | 9.96 | % | ​ | 9.94 | % | ​ | 9.96 | %
Tier 1 capital ratio (5) |  | ​ | 10.88 | % | ​ | 10.81 | % | ​ | 10.98 | % | ​ | 10.88 | % | ​ | 10.98 | %
Total capital ratio (5) |  | ​ | 13.70 | % | ​ | 13.64 | % | ​ | 13.80 | % | ​ | 13.70 | % | ​ | 13.80 | %
Leverage ratio (Tier 1 capital to average assets) (5) |  | ​ | 9.62 | % | ​ | 9.64 | % | ​ | 9.32 | % | ​ | 9.62 | % | ​ | 9.32 | %
Common equity to total assets |  | ​ | 10.72 | % | ​ | 10.96 | % | ​ | 10.60 | % | ​ | 10.72 | % | ​ | 10.60 | %
Tangible common equity to tangible assets (2) |  | ​ | 6.45 | % | ​ | 6.66 | % | ​ | 6.11 | % | ​ | 6.45 | % | ​ | 6.11 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financial Condition |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​
Assets | ​ | $ | 20,736,236 | ​ | $ | 20,602,332 | ​ | $ | 19,950,231 | ​ | $ | 20,736,236 | ​ | $ | 19,950,231 | ​
LHFI (net of deferred fees and costs) | ​ |  | 15,283,620 | ​ |  | 15,066,930 | ​ |  | 13,918,720 | ​ |  | 15,283,620 | ​ |  | 13,918,720 | ​
Securities | ​ |  | 3,032,982 | ​ |  | 3,143,235 | ​ |  | 3,640,722 | ​ |  | 3,032,982 | ​ |  | 3,640,722 | ​
Earning Assets | ​ |  | 18,491,561 | ​ |  | 18,452,007 | ​ |  | 17,790,324 | ​ |  | 18,491,561 | ​ |  | 17,790,324 | ​
Goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​
Amortizable intangibles, net | ​ |  | 21,277 | ​ |  | 23,469 | ​ |  | 29,142 | ​ |  | 21,277 | ​ |  | 29,142 | ​
Deposits | ​ |  | 16,786,505 | ​ |  | 16,411,987 | ​ |  | 16,546,216 | ​ |  | 16,786,505 | ​ |  | 16,546,216 | ​
Borrowings | ​ |  | 1,020,669 | ​ |  | 1,320,301 | ​ |  | 669,558 | ​ |  | 1,020,669 | ​ |  | 669,558 | ​
Stockholders' equity | ​ |  | 2,388,801 | ​ |  | 2,424,470 | ​ |  | 2,281,150 | ​ |  | 2,388,801 | ​ |  | 2,281,150 | ​
Tangible common equity (2) | ​ |  | 1,275,956 | ​ |  | 1,309,433 | ​ |  | 1,160,440 | ​ |  | 1,275,956 | ​ |  | 1,160,440 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
LHFI, net of deferred fees and costs | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Construction and land development | ​ | $ | 1,132,940 | ​ | $ | 1,231,720 | ​ | $ | 1,068,201 | ​ | $ | 1,132,940 | ​ | $ | 1,068,201 | ​
Commercial real estate - owner occupied | ​ |  | 1,975,281 | ​ |  | 1,952,189 | ​ |  | 1,953,872 | ​ |  | 1,975,281 | ​ |  | 1,953,872 | ​
Commercial real estate - non-owner occupied | ​ |  | 4,148,218 | ​ |  | 4,113,318 | ​ |  | 3,900,325 | ​ |  | 4,148,218 | ​ |  | 3,900,325 | ​
Multifamily real estate | ​ |  | 947,153 | ​ |  | 788,895 | ​ |  | 774,970 | ​ |  | 947,153 | ​ |  | 774,970 | ​
Commercial & Industrial | ​ |  | 3,432,319 | ​ |  | 3,373,148 | ​ |  | 2,709,047 | ​ |  | 3,432,319 | ​ |  | 2,709,047 | ​
Residential 1-4 Family - Commercial | ​ |  | 517,034 | ​ |  | 518,317 | ​ |  | 542,612 | ​ |  | 517,034 | ​ |  | 542,612 | ​
Residential 1-4 Family - Consumer | ​ |  | 1,057,294 | ​ |  | 1,017,698 | ​ |  | 891,353 | ​ |  | 1,057,294 | ​ |  | 891,353 | ​
Residential 1-4 Family - Revolving | ​ |  | 599,282 | ​ |  | 600,339 | ​ |  | 588,452 | ​ |  | 599,282 | ​ |  | 588,452 | ​
Auto | ​ |  | 534,361 | ​ |  | 585,756 | ​ |  | 561,277 | ​ |  | 534,361 | ​ |  | 561,277 | ​
Consumer | ​ |  | 126,151 | ​ |  | 134,709 | ​ |  | 172,776 | ​ |  | 126,151 | ​ |  | 172,776 | ​
Other Commercial | ​ |  | 813,587 | ​ |  | 750,841 | ​ |  | 755,835 | ​ |  | 813,587 | ​ |  | 755,835 | ​
Total LHFI | ​ | $ | 15,283,620 | ​ | $ | 15,066,930 | ​ | $ | 13,918,720 | ​ | $ | 15,283,620 | ​ | $ | 13,918,720 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Interest checking accounts | ​ | $ | 5,055,464 | ​ | $ | 4,824,192 | ​ | $ | 4,354,351 | ​ | $ | 5,055,464 | ​ | $ | 4,354,351 | ​
Money market accounts | ​ |  | 3,472,953 | ​ |  | 3,413,936 | ​ |  | 3,962,470 | ​ |  | 3,472,953 | ​ |  | 3,962,470 | ​
Savings accounts | ​ |  | 950,363 | ​ |  | 986,081 | ​ |  | 1,173,566 | ​ |  | 950,363 | ​ |  | 1,173,566 | ​
Customer time deposits of $250,000 and over | ​ |  | 634,950 | ​ |  | 578,739 | ​ |  | 391,332 | ​ |  | 634,950 | ​ |  | 391,332 | ​
Other customer time deposits | ​ | ​ | 2,011,106 | ​ | ​ | 1,813,031 | ​ | ​ | 1,352,440 | ​ | ​ | 2,011,106 | ​ | ​ | 1,352,440 | ​
Time deposits | ​ |  | 2,646,056 | ​ |  | 2,391,770 | ​ |  | 1,743,772 | ​ |  | 2,646,056 | ​ |  | 1,743,772 | ​
Total interest-bearing customer deposits | ​ | ​ | 12,124,836 | ​ | ​ | 11,615,979 | ​ | ​ | 11,234,159 | ​ | ​ | 12,124,836 | ​ | ​ | 11,234,159 | ​
Brokered deposits | ​ | ​ | 516,720 | ​ | ​ | 485,702 | ​ | ​ | 21,119 | ​ | ​ | 516,720 | ​ | ​ | 21,119 | ​
Total interest-bearing deposits | ​ | $ | 12,641,556 | ​ | $ | 12,101,681 | ​ | $ | 11,255,278 | ​ | $ | 12,641,556 | ​ | $ | 11,255,278 | ​
Demand deposits | ​ |  | 4,144,949 | ​ |  | 4,310,306 | ​ |  | 5,290,938 | ​ |  | 4,144,949 | ​ |  | 5,290,938 | ​
Total deposits | ​ | $ | 16,786,505 | ​ | $ | 16,411,987 | ​ | $ | 16,546,216 | ​ | $ | 16,786,505 | ​ | $ | 16,546,216 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Averages | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Assets | ​ | $ | 20,596,189 | ​ | $ | 20,209,687 | ​ | $ | 19,980,500 | ​ | $ | 20,397,518 | ​ | $ | 19,873,644 | ​
LHFI (net of deferred fees and costs) | ​ |  | 15,139,761 | ​ |  | 14,746,218 | ​ |  | 13,733,447 | ​ |  | 14,799,520 | ​ |  | 13,521,507 | ​
Loans held for sale | ​ |  | 10,649 | ​ |  | 14,413 | ​ |  | 15,063 | ​ |  | 10,330 | ​ |  | 16,779 | ​
Securities | ​ |  | 3,101,658 | ​ |  | 3,176,662 | ​ |  | 3,818,607 | ​ |  | 3,247,287 | ​ |  | 3,981,308 | ​
Earning assets | ​ |  | 18,462,505 | ​ |  | 18,091,809 | ​ |  | 17,879,222 | ​ |  | 18,264,957 | ​ |  | 17,803,550 | ​
Deposits | ​ |  | 16,795,611 | ​ |  | 16,280,154 | ​ |  | 16,488,224 | ​ |  | 16,499,045 | ​ |  | 16,397,790 | ​
Time deposits | ​ |  | 2,914,004 | ​ |  | 2,500,966 | ​ |  | 1,745,224 | ​ |  | 2,571,114 | ​ |  | 1,726,341 | ​
Interest-bearing deposits | ​ |  | 12,576,776 | ​ |  | 11,903,004 | ​ |  | 11,163,945 | ​ |  | 12,071,006 | ​ |  | 11,091,115 | ​
Borrowings | ​ |  | 905,170 | ​ |  | 1,071,171 | ​ |  | 703,272 | ​ |  | 1,032,067 | ​ |  | 660,995 | ​
Interest-bearing liabilities | ​ |  | 13,481,946 | ​ |  | 12,974,175 | ​ |  | 11,867,217 | ​ |  | 13,103,073 | ​ |  | 11,752,110 | ​
Stockholders' equity | ​ |  | 2,446,902 | ​ |  | 2,460,741 | ​ |  | 2,436,999 | ​ |  | 2,443,833 | ​ |  | 2,513,522 | ​
Tangible common equity (2) | ​ |  | 1,332,993 | ​ |  | 1,345,426 | ​ |  | 1,315,085 | ​ |  | 1,328,385 | ​ |  | 1,378,240 | ​

​

​

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 | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 | ​ | 09/30/22 |
Asset Quality | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Allowance for Credit Losses (ACL) |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​
Beginning balance, Allowance for loan and lease losses (ALLL) | ​ | $ | 120,683 | ​ | $ | 116,512 | ​ | $ | 104,184 | ​ | $ | 110,768 | ​ | $ | 99,787 | ​
Add: Recoveries | ​ |  | 1,335 | ​ |  | 1,035 | ​ |  | 1,214 | ​ |  | 3,537 | ​ |  | 3,745 | ​
Less: Charge-offs | ​ |  | 1,629 | ​ |  | 2,602 | ​ |  | 1,801 | ​ |  | 9,957 | ​ |  | 5,267 | ​
Add: Provision for loan losses | ​ |  | 5,238 | ​ |  | 5,738 | ​ |  | 4,412 | ​ |  | 21,279 | ​ |  | 9,744 | ​
Ending balance, ALLL | ​ | $ | 125,627 | ​ | $ | 120,683 | ​ | $ | 108,009 | ​ | $ | 125,627 | ​ | $ | 108,009 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning balance, Reserve for unfunded commitment (RUC) | ​ | $ | 15,548 | ​ | $ | 15,199 | ​ | $ | 9,000 | ​ | $ | 13,675 | ​ | $ | 8,000 | ​
Add: Provision for unfunded commitments | ​ | ​ | (246) | ​ | ​ | 349 | ​ | ​ | 2,000 | ​ | ​ | 1,627 | ​ | ​ | 3,000 | ​
Ending balance, RUC | ​ | $ | 15,302 | ​ | $ | 15,548 | ​ | $ | 11,000 | ​ | $ | 15,302 | ​ | $ | 11,000 | ​
Total ACL | ​ | $ | 140,929 | ​ | $ | 136,231 | ​ | $ | 119,009 | ​ | $ | 140,929 | ​ | $ | 119,009 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ACL / total LHFI | ​ | ​ | 0.92 | % | ​ | 0.90 | % | ​ | 0.86 | % | ​ | 0.92 | % | ​ | 0.86 | %
ALLL / total LHFI | ​ |  | 0.82 | % |  | 0.80 | % |  | 0.78 | % |  | 0.82 | % |  | 0.78 | %
Net charge-offs / total average LHFI (annualized) | ​ |  | 0.01 | % |  | 0.04 | % |  | 0.02 | % |  | 0.06 | % |  | 0.02 | %
Provision for loan losses/ total average LHFI (annualized) | ​ |  | 0.14 | % |  | 0.16 | % |  | 0.13 | % |  | 0.19 | % |  | 0.10 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nonperforming Assets | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Construction and land development | ​ | $ | 355 | ​ | $ | 284 | ​ | $ | 421 | ​ | $ | 355 | ​ | $ | 421 | ​
Commercial real estate - owner occupied | ​ |  | 3,882 | ​ |  | 3,978 | ​ |  | 4,883 | ​ |  | 3,882 | ​ |  | 4,883 | ​
Commercial real estate - non-owner occupied | ​ |  | 5,999 | ​ |  | 6,473 | ​ |  | 1,923 | ​ |  | 5,999 | ​ |  | 1,923 | ​
Commercial & Industrial | ​ |  | 2,256 | ​ |  | 2,738 | ​ |  | 2,289 | ​ |  | 2,256 | ​ |  | 2,289 | ​
Residential 1-4 Family - Commercial | ​ |  | 1,833 | ​ |  | 1,844 | ​ |  | 1,962 | ​ |  | 1,833 | ​ |  | 1,962 | ​
Residential 1-4 Family - Consumer | ​ |  | 10,368 | ​ |  | 10,033 | ​ |  | 11,121 | ​ |  | 10,368 | ​ |  | 11,121 | ​
Residential 1-4 Family - Revolving | ​ |  | 3,572 | ​ |  | 3,461 | ​ |  | 3,583 | ​ |  | 3,572 | ​ |  | 3,583 | ​
Auto | ​ |  | 361 | ​ |  | 291 | ​ |  | 318 | ​ |  | 361 | ​ |  | 318 | ​
Consumer | ​ | ​ | — | ​ | ​ | 3 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​
Nonaccrual loans | ​ | $ | 28,626 | ​ | $ | 29,105 | ​ | $ | 26,500 | ​ | $ | 28,626 | ​ | $ | 26,500 | ​
Foreclosed property | ​ |  | 149 | ​ |  | 50 | ​ |  | 2,087 | ​ |  | 149 | ​ |  | 2,087 | ​
Total nonperforming assets (NPAs) | ​ | $ | 28,775 | ​ | $ | 29,155 | ​ | $ | 28,587 | ​ | $ | 28,775 | ​ | $ | 28,587 | ​
Construction and land development | ​ | $ | 25 | ​ | $ | 24 | ​ | $ | 115 | ​ | $ | 25 | ​ | $ | 115 | ​
Commercial real estate - owner occupied | ​ |  | 2,395 | ​ |  | 2,463 | ​ |  | 3,517 | ​ |  | 2,395 | ​ |  | 3,517 | ​
Commercial real estate - non-owner occupied | ​ | ​ | 2,835 | ​ | ​ | 2,763 | ​ | ​ | 621 | ​ | ​ | 2,835 | ​ | ​ | 621 | ​
Commercial & Industrial | ​ |  | 792 | ​ |  | 810 | ​ |  | 526 | ​ |  | 792 | ​ |  | 526 | ​
Residential 1-4 Family - Commercial | ​ |  | 817 | ​ |  | 693 | ​ |  | 308 | ​ |  | 817 | ​ |  | 308 | ​
Residential 1-4 Family - Consumer | ​ |  | 3,632 | ​ |  | 1,716 | ​ |  | 680 | ​ |  | 3,632 | ​ |  | 680 | ​
Residential 1-4 Family - Revolving | ​ |  | 1,034 | ​ |  | 1,259 | ​ |  | 1,255 | ​ |  | 1,034 | ​ |  | 1,255 | ​
Auto | ​ |  | 229 | ​ |  | 243 | ​ |  | 148 | ​ |  | 229 | ​ |  | 148 | ​
Consumer | ​ |  | 97 | ​ |  | 74 | ​ |  | 86 | ​ |  | 97 | ​ |  | 86 | ​
Other Commercial | ​ | ​ | 15 | ​ | ​ | 66 | ​ | ​ | 95 | ​ | ​ | 15 | ​ | ​ | 95 | ​
LHFI ≥ 90 days and still accruing | ​ | $ | 11,871 | ​ | $ | 10,111 | ​ | $ | 7,351 | ​ | $ | 11,871 | ​ | $ | 7,351 | ​
Total NPAs and LHFI ≥ 90 days | ​ | $ | 40,646 | ​ | $ | 39,266 | ​ | $ | 35,938 | ​ | $ | 40,646 | ​ | $ | 35,938 | ​
NPAs / total LHFI | ​ | ​ | 0.19 | % |  | 0.19 | % |  | 0.21 | % |  | 0.19 | % |  | 0.21 | %
NPAs / total assets | ​ |  | 0.14 | % |  | 0.14 | % |  | 0.14 | % |  | 0.14 | % |  | 0.14 | %
ALLL / nonaccrual loans | ​ |  | 438.86 | % |  | 414.65 | % |  | 407.58 | % |  | 438.86 | % |  | 407.58 | %
ALLL/ nonperforming assets | ​ |  | 436.58 | % |  | 413.94 | % |  | 377.83 | % |  | 436.58 | % |  | 377.83 | %

​

​

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 | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 | ​ | 09/30/22 |
Past Due Detail | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Construction and land development | ​ | $ | — | ​ | $ | 295 | ​ | $ | 120 | ​ | $ | — | ​ | $ | 120 | ​
Commercial real estate - owner occupied | ​ |  | 3,501 | ​ |  | 602 | ​ |  | 7,337 | ​ |  | 3,501 | ​ |  | 7,337 | ​
Commercial real estate - non-owner occupied | ​ |  | 4,573 | ​ |  | — | ​ |  | — | ​ |  | 4,573 | ​ |  | — | ​
Commercial & Industrial | ​ |  | 3,049 | ​ |  | 254 | ​ |  | 796 | ​ |  | 3,049 | ​ |  | 796 | ​
Residential 1-4 Family - Commercial | ​ |  | 744 | ​ |  | 1,076 | ​ |  | 1,410 | ​ |  | 744 | ​ |  | 1,410 | ​
Residential 1-4 Family - Consumer | ​ |  | 1,000 | ​ |  | 1,504 | ​ |  | 1,123 | ​ |  | 1,000 | ​ |  | 1,123 | ​
Residential 1-4 Family - Revolving | ​ |  | 2,326 | ​ |  | 1,729 | ​ |  | 1,115 | ​ |  | 2,326 | ​ |  | 1,115 | ​
Auto | ​ |  | 2,703 | ​ |  | 2,877 | ​ |  | 1,876 | ​ |  | 2,703 | ​ |  | 1,876 | ​
Consumer | ​ | ​ | 517 | ​ | ​ | 334 | ​ | ​ | 409 | ​ | ​ | 517 | ​ | ​ | 409 | ​
Other Commercial | ​ | ​ | 3,545 | ​ | ​ | 23 | ​ | ​ | — | ​ | ​ | 3,545 | ​ | ​ | — | ​
LHFI 30-59 days past due | ​ | $ | 21,958 | ​ | $ | 8,694 | ​ | $ | 14,186 | ​ | $ | 21,958 | ​ | $ | 14,186 | ​
Construction and land development | ​ | $ | 386 | ​ | $ | — | ​ | $ | 107 | ​ | $ | 386 | ​ | $ | 107 | ​
Commercial real estate - owner occupied | ​ |  | 1,902 | ​ |  | 10 | ​ |  | 763 | ​ |  | 1,902 | ​ |  | 763 | ​
Commercial real estate - non-owner occupied | ​ |  | 797 | ​ |  | — | ​ |  | 457 | ​ |  | 797 | ​ |  | 457 | ​
Multifamily real estate | ​ | ​ | 150 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 150 | ​ | ​ | — | ​
Commercial & Industrial | ​ |  | 576 | ​ |  | 400 | ​ |  | 3,128 | ​ |  | 576 | ​ |  | 3,128 | ​
Residential 1-4 Family - Commercial | ​ |  | 67 | ​ |  | 189 | ​ |  | 97 | ​ |  | 67 | ​ |  | 97 | ​
Residential 1-4 Family - Consumer | ​ |  | 1,775 | ​ |  | 2,813 | ​ |  | 1,449 | ​ |  | 1,775 | ​ |  | 1,449 | ​
Residential 1-4 Family - Revolving | ​ |  | 602 | ​ |  | 1,114 | ​ |  | 1,081 | ​ |  | 602 | ​ |  | 1,081 | ​
Auto | ​ |  | 339 | ​ |  | 564 | ​ |  | 257 | ​ |  | 339 | ​ |  | 257 | ​
Consumer | ​ | ​ | 164 | ​ | ​ | 214 | ​ | ​ | 101 | ​ | ​ | 164 | ​ | ​ | 101 | ​
LHFI 60-89 days past due | ​ | $ | 6,758 | ​ | $ | 5,304 | ​ | $ | 7,440 | ​ | $ | 6,758 | ​ | $ | 7,440 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Past Due and still accruing | ​ | $ | 40,587 | ​ | $ | 24,109 | ​ | $ | 28,977 | ​ | $ | 40,587 | ​ | $ | 28,977 | ​
Past Due and still accruing / total LHFI | ​ | ​ | 0.27 | % | ​ | 0.16 | % | ​ | 0.21 | % | ​ | 0.27 | % | ​ | 0.21 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Alternative Performance Measures (non-GAAP) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Net interest income (FTE) (1) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Net interest income (GAAP) | ​ | $ | 151,941 | ​ | $ | 152,084 | ​ | $ | 150,715 | ​ | $ | 457,469 | ​ | $ | 420,413 | ​
FTE adjustment | ​ |  | 3,744 | ​ |  | 3,666 | ​ |  | 3,842 | ​ |  | 11,198 | ​ |  | 10,755 | ​
Net interest income (FTE) (non-GAAP) | ​ | $ | 155,685 | ​ | $ | 155,750 | ​ | $ | 154,557 | ​ | $ | 468,667 | ​ | $ | 431,168 | ​
Noninterest income (GAAP) | ​ | ​ | 27,094 | ​ | ​ | 24,197 | ​ | ​ | 25,584 | ​ | ​ | 60,918 | ​ | ​ | 94,023 | ​
Total revenue (FTE) (non-GAAP) | ​ | $ | 182,779 | ​ | $ | 179,947 | ​ | $ | 180,141 | ​ | $ | 529,585 | ​ | $ | 525,191 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average earning assets | ​ | $ | 18,462,505 | ​ | $ | 18,091,809 | ​ | $ | 17,879,222 | ​ | $ | 18,264,957 | ​ | $ | 17,803,550 | ​
Net interest margin | ​ |  | 3.27 | % |  | 3.37 | % |  | 3.34 | % |  | 3.35 | % |  | 3.16 | %
Net interest margin (FTE) | ​ |  | 3.35 | % |  | 3.45 | % |  | 3.43 | % |  | 3.43 | % |  | 3.24 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Assets (2) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Ending assets (GAAP) | ​ | $ | 20,736,236 | ​ | $ | 20,602,332 | ​ | $ | 19,950,231 | ​ | $ | 20,736,236 | ​ | $ | 19,950,231 | ​
Less: Ending goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​
Less: Ending amortizable intangibles | ​ |  | 21,277 | ​ |  | 23,469 | ​ |  | 29,142 | ​ |  | 21,277 | ​ |  | 29,142 | ​
Ending tangible assets (non-GAAP) | ​ | $ | 19,789,748 | ​ | $ | 19,653,652 | ​ | $ | 18,995,878 | ​ | $ | 19,789,748 | ​ | $ | 18,995,878 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tangible Common Equity (2) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Ending equity (GAAP) | ​ | $ | 2,388,801 | ​ | $ | 2,424,470 | ​ | $ | 2,281,150 | ​ | $ | 2,388,801 | ​ | $ | 2,281,150 | ​
Less: Ending goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​
Less: Ending amortizable intangibles | ​ |  | 21,277 | ​ |  | 23,469 | ​ |  | 29,142 | ​ |  | 21,277 | ​ |  | 29,142 | ​
Less: Perpetual preferred stock | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​ | ​ | 166,357 | ​
Ending tangible common equity (non-GAAP) | ​ | $ | 1,275,956 | ​ | $ | 1,309,433 | ​ | $ | 1,160,440 | ​ | $ | 1,275,956 | ​ | $ | 1,160,440 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average equity (GAAP) | ​ | $ | 2,446,902 | ​ | $ | 2,460,741 | ​ | $ | 2,436,999 | ​ | $ | 2,443,833 | ​ | $ | 2,513,522 | ​
Less: Average goodwill | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 925,211 | ​ |  | 932,035 | ​
Less: Average amortizable intangibles | ​ |  | 22,342 | ​ |  | 23,748 | ​ |  | 30,347 | ​ |  | 23,881 | ​ |  | 36,891 | ​
Less: Average perpetual preferred stock | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​ | ​ | 166,356 | ​
Average tangible common equity (non-GAAP) | ​ | $ | 1,332,993 | ​ | $ | 1,345,426 | ​ | $ | 1,315,085 | ​ | $ | 1,328,385 | ​ | $ | 1,378,240 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ROTCE (2)(3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income available to common shareholders (GAAP) | ​ | $ | 51,050 | ​ | $ | 52,274 | ​ | $ | 55,103 | ​ | $ | 136,010 | ​ | $ | 155,085 | ​
Plus: Amortization of intangibles, tax effected | ​ | ​ | 1,732 | ​ | ​ | 1,751 | ​ | ​ | 1,959 | ​ | ​ | 5,283 | ​ | ​ | 6,663 | ​
Net income available to common shareholders before amortization of intangibles (non-GAAP) | ​ | $ | 52,782 | ​ | $ | 54,025 | ​ | $ | 57,062 | ​ | $ | 141,293 | ​ | $ | 161,748 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Return on average tangible common equity (ROTCE) | ​ | ​ | 15.71 | % | ​ | 16.11 | % | ​ | 17.21 | % | ​ | 14.22 | % | ​ | 15.69 | %

​

​

​

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 | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 |  | 09/30/22 |
Operating Measures (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (GAAP) | ​ | $ | 54,017 | ​ | $ | 55,241 | ​ | $ | 58,070 | ​ | $ | 144,911 | ​ | $ | 163,986 | ​
Plus: Strategic cost saving initiatives, net of tax | ​ | ​ | 6,851 | ​ | ​ | 3,109 | ​ | ​ | — | ​ | ​ | 9,959 | ​ | ​ | — | ​
Plus: Merger-related costs, net of tax | ​ | ​ | 1,965 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,965 | ​ | ​ | — | ​
Plus: Legal reserve, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,950 | ​ | ​ | — | ​
Plus: Strategic branch closing and facility consolidation costs, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,351 | ​
Less: (Loss) gain on sale of securities, net of tax | ​ | ​ | (21,799) | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | (32,384) | ​ | ​ | (2) | ​
Less: Gain on sale-leaseback transaction, net of tax | ​ | ​ | 21,883 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 21,883 | ​ | ​ | — | ​
Less: Gain on sale of DHFB, net of tax | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 7,984 | ​
Adjusted operating earnings (non-GAAP) | ​ | ​ | 62,749 | ​ | ​ | 58,348 | ​ | ​ | 58,070 | ​ | ​ | 171,286 | ​ | ​ | 160,355 | ​
Less: Dividends on preferred stock | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901 | ​
Adjusted operating earnings available to common shareholders (non-GAAP) | ​ | $ | 59,782 | ​ | $ | 55,381 | ​ | $ | 55,103 | ​ | $ | 162,385 | ​ | $ | 151,454 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating Efficiency Ratio (1)(6) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest expense (GAAP) | ​ | $ | 108,508 | ​ | $ | 105,661 | ​ | $ | 99,923 | ​ | $ | 322,442 | ​ | $ | 304,012 | ​
Less: Amortization of intangible assets | ​ |  | 2,193 | ​ |  | 2,216 | ​ |  | 2,480 | ​ |  | 6,687 | ​ |  | 8,434 | ​
Less: Strategic cost saving initiatives | ​ | ​ | 8,672 | ​ | ​ | 3,935 | ​ | ​ | — | ​ | ​ | 12,607 | ​ | ​ | — | ​
Less: Merger-related costs | ​ | ​ | 1,993 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,993 | ​ | ​ | — | ​
Less: Legal reserve | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,000 | ​ | ​ | — | ​
Less: Strategic branch closing and facility consolidation costs | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,508 | ​
Adjusted operating noninterest expense (non-GAAP) | ​ | $ | 95,650 | ​ | $ | 99,510 | ​ | $ | 97,443 | ​ | $ | 296,155 | ​ | $ | 290,070 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest income (GAAP) | ​ | $ | 27,094 | ​ | $ | 24,197 | ​ | $ | 25,584 | ​ | $ | 60,918 | ​ | $ | 94,023 | ​
Less: (Loss) gain on sale of securities | ​ | ​ | (27,594) | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | (40,992) | ​ | ​ | (2) | ​
Less: Gain on sale-leaseback transaction | ​ | ​ | 27,700 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 27,700 | ​ | ​ | — | ​
Less: Gain on sale of DHFB | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,082 | ​
Adjusted operating noninterest income (non-GAAP) | ​ | $ | 26,988 | ​ | $ | 24,195 | ​ | $ | 25,584 | ​ | $ | 74,210 | ​ | $ | 84,943 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net interest income (FTE) (non-GAAP) (1) | ​ | $ | 155,685 | ​ | $ | 155,750 | ​ | $ | 154,557 | ​ | $ | 468,667 | ​ | $ | 431,168 | ​
Adjusted operating noninterest income (non-GAAP) | ​ |  | 26,988 | ​ |  | 24,195 | ​ |  | 25,584 | ​ |  | 74,210 | ​ |  | 84,943 | ​
Total adjusted revenue (FTE) (non-GAAP) (1) | ​ | $ | 182,673 | ​ | $ | 179,945 | ​ | $ | 180,141 | ​ | $ | 542,877 | ​ | $ | 516,111 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Efficiency ratio | ​ |  | 60.61 | % |  | 59.94 | % |  | 56.68 | % |  | 62.20 | % |  | 59.10 | %
Efficiency ratio (FTE) (1) | ​ | ​ | 59.37 | % |  | 58.72 | % |  | 55.47 | % |  | 60.89 | % |  | 57.89 | %
Adjusted operating efficiency ratio (FTE) (1)(6) | ​ |  | 52.36 | % |  | 55.30 | % |  | 54.09 | % |  | 54.55 | % |  | 56.20 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating ROA & ROE (4) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Adjusted operating earnings (non-GAAP) | ​ | $ | 62,749 | ​ | $ | 58,348 | ​ | $ | 58,070 | ​ | $ | 171,286 | ​ | $ | 160,355 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average assets (GAAP) | ​ | $ | 20,596,189 | ​ | $ | 20,209,687 | ​ | $ | 19,980,500 | ​ | $ | 20,397,518 | ​ | $ | 19,873,644 | ​
Return on average assets (ROA) (GAAP) | ​ | ​ | 1.04 | % | ​ | 1.10 | % | ​ | 1.15 | % | ​ | 0.95 | % | ​ | 1.10 | %
Adjusted operating return on average assets (ROA) (non-GAAP) | ​ | ​ | 1.21 | % | ​ | 1.16 | % | ​ | 1.15 | % | ​ | 1.12 | % | ​ | 1.08 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average equity (GAAP) | ​ | $ | 2,446,902 | ​ | $ | 2,460,741 | ​ | $ | 2,436,999 | ​ | $ | 2,443,833 | ​ | $ | 2,513,522 | ​
Return on average equity (ROE) (GAAP) | ​ | ​ | 8.76 | % | ​ | 9.00 | % | ​ | 9.45 | % | ​ | 7.93 | % | ​ | 8.72 | %
Adjusted operating return on average equity (ROE) (non-GAAP) | ​ | ​ | 10.17 | % | ​ | 9.51 | % | ​ | 9.45 | % | ​ | 9.37 | % | ​ | 8.53 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating ROTCE (2)(3)(4) | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Adjusted operating earnings available to common shareholders (non-GAAP) | ​ | $ | 59,782 | ​ | $ | 55,381 | ​ | $ | 55,103 | ​ | $ | 162,385 | ​ | $ | 151,454 | ​
Plus: Amortization of intangibles, tax effected | ​ |  | 1,732 | ​ |  | 1,751 | ​ |  | 1,959 | ​ |  | 5,283 | ​ |  | 6,663 | ​
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP) | ​ | $ | 61,514 | ​ | $ | 57,132 | ​ | $ | 57,062 | ​ | $ | 167,668 | ​ | $ | 158,117 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Average tangible common equity (non-GAAP) | ​ | $ | 1,332,993 | ​ | $ | 1,345,426 | ​ | $ | 1,315,085 | ​ | $ | 1,328,385 | ​ | $ | 1,378,240 | ​
Adjusted operating return on average tangible common equity (non-GAAP) | ​ |  | 18.31 | % |  | 17.03 | % |  | 17.21 | % |  | 16.88 | % |  | 15.34 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pre-tax pre-provision adjusted operating earnings (7) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (GAAP) | ​ | $ | 54,017 | ​ | $ | 55,241 | ​ | $ | 58,070 | ​ | $ | 144,911 | ​ | $ | 163,986 | ​
Plus: Provision for credit losses | ​ | ​ | 4,991 | ​ | ​ | 6,069 | ​ | ​ | 6,412 | ​ | ​ | 22,911 | ​ | ​ | 12,771 | ​
Plus: Income tax expense | ​ | ​ | 11,519 | ​ | ​ | 9,310 | ​ | ​ | 11,894 | ​ | ​ | 28,123 | ​ | ​ | 33,667 | ​
Plus: Strategic cost saving initiatives | ​ | ​ | 8,672 | ​ | ​ | 3,935 | ​ | ​ | — | ​ | ​ | 12,607 | ​ | ​ | — | ​
Plus: Merger-related costs | ​ | ​ | 1,993 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,993 | ​ | ​ | — | ​
Plus: Legal reserve | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,000 | ​ | ​ | — | ​
Plus: Strategic branch closing and facility consolidation costs | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,508 | ​
Less: (Loss) gain on sale of securities | ​ | ​ | (27,594) | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | (40,992) | ​ | ​ | (2) | ​
Less: Gain on sale-leaseback transaction | ​ | ​ | 27,700 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 27,700 | ​ | ​ | — | ​
Less: Gain on sale of DHFB | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 9,082 | ​
Pre-tax pre-provision adjusted operating earnings (non-GAAP) | ​ | $ | 81,086 | ​ | $ | 74,553 | ​ | $ | 76,376 | ​ | $ | 228,837 | ​ | $ | 206,852 | ​
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) | ​ | $ | 78,119 | ​ | $ | 71,586 | ​ | $ | 73,409 | ​ | $ | 219,936 | ​ | $ | 197,951 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average common shares outstanding, diluted | ​ | ​ | 74,999,128 | ​ | ​ | 74,995,557 | ​ | ​ | 74,705,054 | ​ | ​ | 74,943,999 | ​ | ​ | 75,034,084 | ​
Pre-tax pre-provision earnings per common share, diluted | ​ | $ | 1.04 | ​ | $ | 0.95 | ​ | $ | 0.98 | ​ | $ | 2.93 | ​ | $ | 2.64 | ​

​

​

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 | ​
​ |  | 09/30/23 |  | 06/30/23 |  | 09/30/22 |  | 09/30/23 |  | 09/30/22 | ​
Mortgage Origination Held for Sale Volume | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​
Refinance Volume | ​ | $ | 2,239 | ​ | $ | 4,076 | ​ | $ | 5,637 | ​ | $ | 9,767 | ​ | $ | 53,753 | ​
Purchase Volume | ​ |  | 35,815 | ​ |  | 32,168 | ​ |  | 66,360 | ​ |  | 100,175 | ​ |  | 209,206 | ​
Total Mortgage loan originations held for sale | ​ | $ | 38,054 | ​ | $ | 36,244 | ​ | $ | 71,997 | ​ | $ | 109,942 | ​ | $ | 262,959 | ​
% of originations held for sale that are refinances | ​ |  | 5.9 | % |  | 11.2 | % |  | 7.8 | % |  | 8.9 | % |  | 20.4 | %
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Wealth | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Assets under management | ​ | $ | 4,675,523 | ​ | $ | 4,774,501 | ​ | $ | 4,065,059 | ​ | $ | 4,675,523 | ​ | $ | 4,065,059 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other Data | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
End of period full-time employees | ​ |  | 1,788 | ​ |  | 1,878 | ​ |  | 1,890 | ​ |  | 1,788 | ​ |  | 1,890 | ​
Number of full-service branches | ​ |  | 109 | ​ |  | 109 | ​ |  | 114 | ​ |  | 109 | ​ |  | 114 | ​
Number of automatic transaction machines ("ATMs") | ​ |  | 123 | ​ |  | 123 | ​ |  | 131 | ​ |  | 123 | ​ |  | 131 | ​

​

(1) | These are non-GAAP financial measures. The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.

(2) | These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies.

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

(4)
(4) These are non-GAAP financial measures. Adjusted operating measures exclude, as applicable, strategic cost saving initiatives (principally composed of severance charges related to headcount reductions, costs related to modifying certain third party vendor contracts, and charges for exiting certain leases), merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closing and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives), (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations.

(5) | All ratios at September 30, 2023 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

(6) | The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, strategic cost saving initiatives, merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closing and related facility consolidation costs, (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. 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 continuing economic results of the organization’s operations.

(7) | These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes, as applicable, the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, strategic cost saving initiatives, merger-related costs, a legal reserve associated with an ongoing regulatory matter previously disclosed, strategic branch closure initiatives and related facility consolidation costs, (loss) gain on sale of securities, gain on sale-leaseback transaction, and gain on sale of DHFB. The Company believes this adjusted measure provides investors with important information about the continuing economic results of the Company’s operations.

​

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | September 30, | ​ | December 31, | ​ | September 30,
​ | 2023 |  | 2022 |  | 2022
ASSETS | ​ | (unaudited) | ​ | ​ | (audited) | ​ | ​ | (unaudited)
Cash and cash equivalents: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash and due from banks | $ | 233,526 | ​ | $ | 216,384 | ​ | $ | 177,969
Interest-bearing deposits in other banks | ​ | 159,718 | ​ | ​ | 102,107 | ​ | ​ | 211,785
Federal funds sold | ​ | 5,701 | ​ | ​ | 1,457 | ​ | ​ | 1,188
Total cash and cash equivalents | ​ | 398,945 | ​ | ​ | 319,948 | ​ | ​ | 390,942
Securities available for sale, at fair value | ​ | 2,084,928 | ​ | ​ | 2,741,816 | ​ | ​ | 2,717,323
Securities held to maturity, at carrying value | ​ | 843,269 | ​ | ​ | 847,732 | ​ | ​ | 841,349
Restricted stock, at cost | ​ | 104,785 | ​ | ​ | 120,213 | ​ | ​ | 82,050
Loans held for sale | ​ | 6,608 | ​ | ​ | 3,936 | ​ | ​ | 12,889
Loans held for investment, net of deferred fees and costs | ​ | 15,283,620 | ​ | ​ | 14,449,142 | ​ | ​ | 13,918,720
Less: allowance for loan and lease losses | ​ | 125,627 | ​ | ​ | 110,768 | ​ | ​ | 108,009
Total loans held for investment, net | ​ | 15,157,993 | ​ | ​ | 14,338,374 | ​ | ​ | 13,810,711
Premises and equipment, net | ​ | 94,510 | ​ | ​ | 118,243 | ​ | ​ | 126,374
Goodwill | ​ | 925,211 | ​ | ​ | 925,211 | ​ | ​ | 925,211
Amortizable intangibles, net | ​ | 21,277 | ​ | ​ | 26,761 | ​ | ​ | 29,142
Bank owned life insurance | ​ | 449,452 | ​ | ​ | 440,656 | ​ | ​ | 437,988
Other assets | ​ | 649,258 | ​ | ​ | 578,248 | ​ | ​ | 576,252
Total assets | $ | 20,736,236 | ​ | $ | 20,461,138 | ​ | $ | 19,950,231
LIABILITIES | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest-bearing demand deposits | $ | 4,144,949 | ​ | $ | 4,883,239 | ​ | $ | 5,290,938
Interest-bearing deposits | ​ | 12,641,556 | ​ | ​ | 11,048,438 | ​ | ​ | 11,255,278
Total deposits | ​ | 16,786,505 | ​ | ​ | 15,931,677 | ​ | ​ | 16,546,216
Securities sold under agreements to repurchase | ​ | 134,936 | ​ | ​ | 142,837 | ​ | ​ | 146,182
Other short-term borrowings | ​ | 495,000 | ​ | ​ | 1,176,000 | ​ | ​ | 133,800
Long-term borrowings | ​ | 390,733 | ​ | ​ | 389,863 | ​ | ​ | 389,576
Other liabilities | ​ | 540,261 | ​ | ​ | 448,024 | ​ | ​ | 453,307
Total liabilities | ​ | 18,347,435 | ​ | ​ | 18,088,401 | ​ | ​ | 17,669,081
Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
STOCKHOLDERS' EQUITY | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Preferred stock, $10.00 par value | ​ | 173 | ​ | ​ | 173 | ​ | ​ | 173
Common stock, $1.33 par value | ​ | 99,120 | ​ | ​ | 98,873 | ​ | ​ | 98,845
Additional paid-in capital | ​ | 1,779,281 | ​ | ​ | 1,772,440 | ​ | ​ | 1,769,858
Retained earnings | ​ | 988,133 | ​ | ​ | 919,537 | ​ | ​ | 874,393
Accumulated other comprehensive loss | ​ | (477,906) | ​ | ​ | (418,286) | ​ | ​ | (462,119)
Total stockholders' equity | ​ | 2,388,801 | ​ | ​ | 2,372,737 | ​ | ​ | 2,281,150
Total liabilities and stockholders' equity | $ | 20,736,236 | ​ | $ | 20,461,138 | ​ | $ | 19,950,231
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Common shares outstanding | ​ | 74,997,132 | ​ | ​ | 74,712,622 | ​ | ​ | 74,703,774
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,
​ | 2023 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Interest and dividend income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest and fees on loans | $ | 221,380 | ​ | $ | 205,172 | ​ | $ | 144,673 | ​ | $ | 616,544 | ​ | $ | 382,139
Interest on deposits in other banks | ​ | 1,309 | ​ | ​ | 1,014 | ​ | ​ | 941 | ​ | ​ | 3,815 | ​ | ​ | 1,229
Interest and dividends on securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable | ​ | 16,055 | ​ | ​ | 15,565 | ​ | ​ | 14,750 | ​ | ​ | 48,373 | ​ | ​ | 43,110
Nontaxable | ​ | 8,415 | ​ | ​ | 8,496 | ​ | ​ | 10,792 | ​ | ​ | 26,220 | ​ | ​ | 31,889
Total interest and dividend income | ​ | 247,159 | ​ | ​ | 230,247 | ​ | ​ | 171,156 | ​ | ​ | 694,952 | ​ | ​ | 458,367
Interest expense: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest on deposits | ​ | 83,590 | ​ | ​ | 65,267 | ​ | ​ | 15,386 | ​ | ​ | 200,690 | ​ | ​ | 25,966
Interest on short-term borrowings | ​ | 6,499 | ​ | ​ | 8,044 | ​ | ​ | 1,229 | ​ | ​ | 22,106 | ​ | ​ | 1,805
Interest on long-term borrowings | ​ | 5,129 | ​ | ​ | 4,852 | ​ | ​ | 3,826 | ​ | ​ | 14,687 | ​ | ​ | 10,183
Total interest expense | ​ | 95,218 | ​ | ​ | 78,163 | ​ | ​ | 20,441 | ​ | ​ | 237,483 | ​ | ​ | 37,954
Net interest income | ​ | 151,941 | ​ | ​ | 152,084 | ​ | ​ | 150,715 | ​ | ​ | 457,469 | ​ | ​ | 420,413
Provision for credit losses | ​ | 4,991 | ​ | ​ | 6,069 | ​ | ​ | 6,412 | ​ | ​ | 22,911 | ​ | ​ | 12,771
Net interest income after provision for credit losses | ​ | 146,950 | ​ | ​ | 146,015 | ​ | ​ | 144,303 | ​ | ​ | 434,558 | ​ | ​ | 407,642
Noninterest income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Service charges on deposit accounts | ​ | 8,557 | ​ | ​ | 8,118 | ​ | ​ | 6,784 | ​ | ​ | 24,577 | ​ | ​ | 22,421
Other service charges, commissions and fees | ​ | 2,632 | ​ | ​ | 1,693 | ​ | ​ | 1,770 | ​ | ​ | 6,071 | ​ | ​ | 5,134
Interchange fees | ​ | 2,314 | ​ | ​ | 2,459 | ​ | ​ | 2,461 | ​ | ​ | 7,098 | ​ | ​ | 6,539
Fiduciary and asset management fees | ​ | 4,549 | ​ | ​ | 4,359 | ​ | ​ | 4,134 | ​ | ​ | 13,169 | ​ | ​ | 18,329
Mortgage banking income | ​ | 666 | ​ | ​ | 449 | ​ | ​ | 1,390 | ​ | ​ | 1,969 | ​ | ​ | 6,707
(Loss) gain on sale of securities | ​ | (27,594) | ​ | ​ | 2 | ​ | ​ | — | ​ | ​ | (40,992) | ​ | ​ | (2)
Bank owned life insurance income | ​ | 2,973 | ​ | ​ | 2,870 | ​ | ​ | 3,445 | ​ | ​ | 8,671 | ​ | ​ | 8,858
Loan-related interest rate swap fees | ​ | 2,695 | ​ | ​ | 2,316 | ​ | ​ | 2,050 | ​ | ​ | 6,450 | ​ | ​ | 8,510
Other operating income | ​ | 30,302 | ​ | ​ | 1,931 | ​ | ​ | 3,550 | ​ | ​ | 33,905 | ​ | ​ | 17,527
Total noninterest income | ​ | 27,094 | ​ | ​ | 24,197 | ​ | ​ | 25,584 | ​ | ​ | 60,918 | ​ | ​ | 94,023
Noninterest expenses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Salaries and benefits | ​ | 57,449 | ​ | ​ | 62,019 | ​ | ​ | 56,600 | ​ | ​ | 179,996 | ​ | ​ | 170,203
Occupancy expenses | ​ | 6,053 | ​ | ​ | 6,094 | ​ | ​ | 6,408 | ​ | ​ | 18,503 | ​ | ​ | 19,685
Furniture and equipment expenses | ​ | 3,449 | ​ | ​ | 3,565 | ​ | ​ | 3,673 | ​ | ​ | 10,765 | ​ | ​ | 10,860
Technology and data processing | ​ | 7,923 | ​ | ​ | 8,566 | ​ | ​ | 8,273 | ​ | ​ | 24,631 | ​ | ​ | 23,930
Professional services | ​ | 3,291 | ​ | ​ | 4,433 | ​ | ​ | 3,504 | ​ | ​ | 11,138 | ​ | ​ | 12,274
Marketing and advertising expense | ​ | 2,219 | ​ | ​ | 2,817 | ​ | ​ | 2,343 | ​ | ​ | 7,387 | ​ | ​ | 7,008
FDIC assessment premiums and other insurance | ​ | 4,258 | ​ | ​ | 4,074 | ​ | ​ | 3,094 | ​ | ​ | 12,231 | ​ | ​ | 8,344
Franchise and other taxes | ​ | 4,510 | ​ | ​ | 4,499 | ​ | ​ | 4,507 | ​ | ​ | 13,508 | ​ | ​ | 13,506
Loan-related expenses | ​ | 1,388 | ​ | ​ | 1,619 | ​ | ​ | 1,575 | ​ | ​ | 4,560 | ​ | ​ | 5,218
Amortization of intangible assets | ​ | 2,193 | ​ | ​ | 2,216 | ​ | ​ | 2,480 | ​ | ​ | 6,687 | ​ | ​ | 8,434
Other expenses | ​ | 15,775 | ​ | ​ | 5,759 | ​ | ​ | 7,466 | ​ | ​ | 33,036 | ​ | ​ | 24,550
Total noninterest expenses | ​ | 108,508 | ​ | ​ | 105,661 | ​ | ​ | 99,923 | ​ | ​ | 322,442 | ​ | ​ | 304,012
Income before income taxes | ​ | 65,536 | ​ | ​ | 64,551 | ​ | ​ | 69,964 | ​ | ​ | 173,034 | ​ | ​ | 197,653
Income tax expense | ​ | 11,519 | ​ | ​ | 9,310 | ​ | ​ | 11,894 | ​ | ​ | 28,123 | ​ | ​ | 33,667
Net income | $ | 54,017 | ​ | $ | 55,241 | ​ | $ | 58,070 | ​ | ​ | 144,911 | ​ | ​ | 163,986
Dividends on preferred stock | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 2,967 | ​ | ​ | 8,901 | ​ | ​ | 8,901
Net income available to common shareholders | $ | 51,050 | ​ | $ | 52,274 | ​ | $ | 55,103 | ​ | $ | 136,010 | ​ | $ | 155,085
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Basic earnings per common share | $ | 0.68 | ​ | $ | 0.70 | ​ | $ | 0.74 | ​ | $ | 1.81 | ​ | $ | 2.07
Diluted earnings per common share | $ | 0.68 | ​ | $ | 0.70 | ​ | $ | 0.74 | ​ | $ | 1.81 | ​ | $ | 2.07

​

​

​

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

(Dollars in thousands)

​

​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | For the Quarter Ended
​ | September 30, 2023 | ​ | June 30, 2023
​ | Average Balance |  | Interest Income / Expense (1) |  | Yield / Rate (1)(2) |  | Average Balance |  | Interest Income / Expense (1) |  | Yield / Rate (1)(2)
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Taxable | $ | 1,799,675 | ​ | $ | 16,055 | ​ | 3.54% | ​ | $ | 1,865,193 | ​ | $ | 15,565 | ​ | 3.35%
Tax-exempt | ​ | 1,301,983 | ​ | ​ | 10,653 | ​ | 3.25% | ​ | ​ | 1,311,469 | ​ | ​ | 10,755 | ​ | 3.29%
Total securities | ​ | 3,101,658 | ​ | ​ | 26,708 | ​ | 3.42% | ​ | ​ | 3,176,662 | ​ | ​ | 26,320 | ​ | 3.32%
LHFI, net of deferred fees and costs (3) | ​ | 15,139,761 | ​ | ​ | 222,698 | ​ | 5.84% | ​ | ​ | 14,746,218 | ​ | ​ | 206,452 | ​ | 5.62%
Other earning assets | ​ | 221,086 | ​ | ​ | 1,497 | ​ | 2.69% | ​ | ​ | 168,929 | ​ | ​ | 1,141 | ​ | 2.71%
Total earning assets | ​ | 18,462,505 | ​ | $ | 250,903 | ​ | 5.39% | ​ | ​ | 18,091,809 | ​ | $ | 233,913 | ​ | 5.19%
Allowance for loan and lease losses | ​ | (121,229) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (117,643) | ​ | ​ | ​ | ​ | ​
Total non-earning assets | ​ | 2,254,913 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,235,521 | ​ | ​ | ​ | ​ | ​
Total assets | $ | 20,596,189 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 20,209,687 | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities and Stockholders' Equity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest-bearing deposits: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Transaction and money market accounts | $ | 8,697,801 | ​ | $ | 57,378 | ​ | 2.62% | ​ | $ | 8,387,473 | ​ | $ | 46,953 | ​ | 2.25%
Regular savings | ​ | 964,971 | ​ | ​ | 499 | ​ | 0.21% | ​ | ​ | 1,014,565 | ​ | ​ | 430 | ​ | 0.17%
Time deposits | ​ | 2,914,004 | ​ | ​ | 25,713 | ​ | 3.50% | ​ | ​ | 2,500,966 | ​ | ​ | 17,884 | ​ | 2.87%
Total interest-bearing deposits | ​ | 12,576,776 | ​ | ​ | 83,590 | ​ | 2.64% | ​ | ​ | 11,903,004 | ​ | ​ | 65,267 | ​ | 2.20%
Other borrowings | ​ | 905,170 | ​ | ​ | 11,628 | ​ | 5.10% | ​ | ​ | 1,071,171 | ​ | ​ | 12,896 | ​ | 4.83%
Total interest-bearing liabilities | $ | 13,481,946 | ​ | $ | 95,218 | ​ | 2.80% | ​ | $ | 12,974,175 | ​ | $ | 78,163 | ​ | 2.42%
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Noninterest-bearing liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Demand deposits | ​ | 4,218,835 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 4,377,150 | ​ | ​ | ​ | ​ | ​
Other liabilities | ​ | 448,506 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 397,621 | ​ | ​ | ​ | ​ | ​
Total liabilities | ​ | 18,149,287 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,748,946 | ​ | ​ | ​ | ​ | ​
Stockholders' equity | ​ | 2,446,902 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,460,741 | ​ | ​ | ​ | ​ | ​
Total liabilities and stockholders' equity | $ | 20,596,189 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 20,209,687 | ​ | ​ | ​ | ​ | ​
Net interest income | ​ | ​ | ​ | $ | 155,685 | ​ | ​ | ​ | ​ | ​ | ​ | $ | 155,750 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate spread | ​ | ​ | ​ | ​ | ​ | ​ | 2.59% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2.77%
Cost of funds | ​ | ​ | ​ | ​ | ​ | ​ | 2.04% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1.74%
Net interest margin | ​ | ​ | ​ | ​ | ​ | ​ | 3.35% | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3.45%

(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.