8-K
Atlantic Union Bankshares Corp (AUB)
8-K
2025-08-01
For: 2025-08-01
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April 04, 2026
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2025
ATLANTIC UNION BANKSHARES CORPORATION
(Exact name of registrant as specified in its charter)
| Virginia | 001-39325 | 54-1598552 |
|---|---|---|
| (State or other jurisdiction | (Commission | (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
4300 Cox Road
Glen Allen , Virginia **** 23060
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (804) 633-5031
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Securities registered pursuant to Section 12(b) of the Act:
| | | |||
|---|---|---|---|---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock, par value $1.33 per share | | AUB | | New York Stock Exchange |
| Depositary Shares, Each Representing a 1/400^th^ Interest in a Share of 6.875% Perpetual Non-Cumulative Preferred Stock, Series A | | AUB.PRA | | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ☐ |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
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Item 7.01 Regulation FD Disclosure.
Attached as Exhibit 99.1 is a handout containing information that certain members of Atlantic Union Bankshares Corporation (the “Company”) management will use during meetings with investors, analysts, and other interested parties to assist their understanding of the Company from time to time during the third quarter of 2025. Other presentations and related materials will be made available as they are presented. This handout is also available under News & Events > Presentations in the Investor Relations section of the Company’s website at http://investors.atlanticunionbank.com. Exhibit 99.1 is incorporated by reference into this Item 7.01.
The information disclosed in or incorporated by reference into this Item 7.01, including Exhibit 99.1, is furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibit | |
|---|---|---|
| 99.1 | Atlantic Union Bankshares Corporation investor presentation | |
| 104 | | Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ATLANTIC UNION BANKSHARES CORPORATION | |||
|---|---|---|---|
| Date: August 1, 2025 | By: | /s/ Robert M. Gorman | |
| Robert M. Gorman | |||
| Executive Vice President and | |||
| Chief Financial Officer | |||
| | | | |
2
Exhibit 99.1
| INVESTOR PRESENTATION NYSE: AUB<br>AUGUST – SEPTEMBER 2025 | ||
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| 2<br>FORWARD-LOOKING STATEMENTS<br>This presentation 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 regarding our<br>recently completed acquisition of Sandy Spring Bancorp, Inc. (“Sandy Spring”) and expectations with regard to the benefits of the Sandy Spring acquisition, statements regarding our business, financial and operating results, including our deposit base and funding; the impact of<br>changes in economic conditions, anticipated changes in the interest rate environment and the related impacts on our net interest margin, changes in economic, fiscal or trade policy and the potential impacts on our business, loan demand and economic conditions, in our markets<br>and nationally; management’s beliefs regarding our liquidity, capital resources, asset quality, CRE loan portfolio and our customer relationships; statements regarding our North Carolina expansion strategy and the impact of such strategy, statements that include other projections,<br>predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact, and statements on the slides entitled “We are focused on three strategic priorities”, “Sizeable Opportunity to Take Market Share From Big Three”, “Market Opportunity<br>in Maryland and North Carolina”, “2025 Financial Outlook (inclusive of Sandy Spring beginning April 1st)” and “North Carolina Expansion Strategy”. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known<br>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<br>statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “seek to,” “potential,” “continue,” “confidence,” or words of similar<br>meaning or other statements concerning opinions or judgment of Atlantic Union Bankshares Corporation (the “Company,” “AUB,” “we,” “us” or “our”) and our management about future events. Although we believe that our expectations with respect to forward-looking statements<br>are based on 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<br>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<br>limited to, the effects of or changes in:<br>• market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, our funding costs and<br>our loan and securities portfolios;<br>• economic conditions, including inflation and recessionary conditions and their related impacts on economic growth and customer<br>and client behavior;<br>• U.S. and global trade policies and tensions, including change in, or the imposition of, tariffs and/or trade barriers and the economic<br>impacts, volatility and uncertainty resulting therefrom, and geopolitical instability;<br>• volatility in the financial services sector, including failures or rumors of failures of other depository institutions, along with actions<br>taken by governmental agencies to address such turmoil, and the effects on the ability of depository institutions, including us, to<br>attract and retain depositors and to borrow or raise capital;<br>• legislative or regulatory changes and requirements, including as part of the regulatory reform agenda of the Trump administration,<br>including changes in federal state or local tax laws and changes impacting the rulemaking, supervision, examination and enforcement<br>priorities of the federal banking agencies;<br>• the sufficiency of liquidity and changes in our capital position;<br>• general economic and financial market conditions in the United States generally and particularly in the markets in which we operate<br>and which our loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels,<br>U.S. fiscal debt, budget and tax matters, and slowdowns in economic growth;<br>• the diversion of management’s attention from ongoing business operations and opportunities due to our recent acquisition of Sandy<br>Spring;<br>• the impact of purchase accounting with respect to the Sandy Spring acquisition, or any change in the assumptions used regarding the<br>assets acquired and liabilities assumed to determine the fair value and credit marks;<br>• the possibility that the anticipated benefits of our acquisition activity, including our acquisitions of Sandy Spring and American<br>National, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the<br>strength of the economy, competitive factors in the areas where we do business, or as a result of other unexpected factors or events,<br>or with respect to our acquisition of Sandy Spring, as a result of the impact of, or problems arising from, the integration of the two<br>companies;<br>• the integration of the business and operations of Sandy Spring may take longer or be more costly than anticipated;<br>• potential adverse reactions or changes to business or employee relationships, including those resulting from our acquisitions of<br>Sandy Spring and American National;<br>• our ability to identify, recruit and retain key employees<br>• monetary, fiscal and regulatory policies of the U.S. government, including policies of the U.S. Department of the Treasury and the<br>Federal Reserve;<br>• the quality or composition of our loan or investment portfolios and changes in these portfolios;<br>• demand for loan products and financial services in our market areas;<br>• our ability to manage our growth or implement our growth strategy;<br>• the effectiveness of expense reduction plans;<br>• the introduction of new lines of business or new products and services;<br>• real estate values in our lending area;<br>• changes in accounting principles, standards, rules, and interpretations, and the related impact on our financial statements;<br>• an insufficient ACL or volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by changing<br>economic conditions, credit concentrations, inflation, changing interest rates, or other factors;<br>• concentrations of loans secured by real estate, particularly commercial real estate;<br>• the effectiveness of our credit processes and management of our credit risk;<br>• our ability to compete in the market for financial services and increased competition from fintech companies;<br>• technological risks and developments, and cyber threats, attacks, or events;<br>• operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and<br>integration of potential future acquisitions, whether involving stock or cash consideration;<br>• the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts,<br>geopolitical conflicts or public health events (such as pandemics), and of governmental and societal responses thereto; these<br>potential adverse effects may include, without limitation, adverse effects on the ability of our borrowers to satisfy their obligations to<br>us, on the value of collateral securing loans, on the demand for our loans or our other products and services, on supply chains and<br>methods used to distribute products and services, on incidents of cyberattack and fraud, on our liquidity or capital positions, on risks<br>posed by reliance on third-party service providers, on other aspects of our business operations and on financial markets and<br>economic growth;<br>• performance by our counterparties or vendors;<br>• deposit flows;<br>• the availability of financing and the terms thereof;<br>• the level of prepayments on loans and mortgage-backed securities;<br>• actual or potential claims, damages, and fines related to litigation or government actions, which may result in, among other things,<br>additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;<br>• any event or development that would cause us to conclude that there was an impairment of any asset, including intangible assets,<br>such as goodwill; and<br>• other factors, many of which are beyond our control.<br>Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024, and<br>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 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<br>expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to<br>update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether because of new information, future events or otherwise, except as required by law. | ||
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| 3<br>ADDITIONAL INFORMATION<br>Non-GAAP Financial Measures<br>This presentation contains certain financial information determined by methods other than<br>in accordance with generally accepted accounting principles in the United States (“GAAP”).<br>These non-GAAP financial measures are a supplement to GAAP, which is used to prepare<br>our financial statements, and should not be considered in isolation or as a substitute for<br>comparable measures calculated in accordance with GAAP. In addition, our non-GAAP<br>financial measures may not be comparable to non-GAAP financial measures of other<br>companies. We use the non-GAAP financial measures discussed herein in our analysis of<br>our performance. Our management believes that these non-GAAP financial measures<br>provide additional understanding of ongoing operations, enhance comparability of results<br>of operations with prior periods, show the effects of significant gains and charges in the<br>periods presented without the impact of items or events that may obscure trends in our<br>underlying performance, or show the potential effects of accumulated other<br>comprehensive income (or AOCI) or unrealized losses on securities on our capital. This<br>presentation also includes certain projections of non-GAAP financial measures. Due to the<br>inherent variability and difficulty associated with making accurate forecasts and<br>projections of information that is excluded from these projected non-GAAP measures, and<br>the fact that some of the excluded information is not currently ascertainable or accessible,<br>we are unable to quantify certain amounts that would be required to be included in the most<br>directly comparable projected GAAP financial measures without unreasonable effort.<br>Consequently, no disclosure of projected comparable GAAP measures is included, and no<br>reconciliation of forward-looking non-GAAP financial information is included.<br>Please see “Reconciliation of Non-GAAP Disclosures” at the end of this presentation for a<br>reconciliation to the nearest GAAP financial measure.<br>No Offer or Solicitation<br>This presentation does not constitute an offer to sell or a solicitation of an offer to buy any<br>securities. No offer of securities shall be made except by means of a prospectus meeting<br>the requirements of the Securities Act of 1933, as amended, and no offer to sell or<br>solicitation of an offer to buy shall be made in any jurisdiction in which such offer,<br>solicitation or sale would be unlawful.<br>Market and Industry Data<br>Unless otherwise indicated, market data and certain industry forecast data used in this<br>presentation were obtained from internal reports, where appropriate, as well as third party<br>sources and other publicly available information. Data regarding the industries in which the<br>Company competes, its market position and market share within these industries are<br>inherently imprecise and are subject to significant business, economic and competitive<br>uncertainties beyond the Company's control. In addition, assumptions and estimates of the<br>Company and its industries' future performance are necessarily subject to a high degree of<br>uncertainty and risk due to a variety of factors. These and other factors could cause future<br>performance to differ materially from assumptions and estimates.<br>About Atlantic Union Bankshares Corporation<br>Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB)<br>is the holding company for Atlantic Union Bank. Atlantic Union Bank has branches and<br>ATMs located in Virginia, Maryland and North Carolina. Certain non-bank financial services<br>affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which<br>provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides<br>brokerage services; and Union Insurance Group, LLC, which offers various lines of<br>insurance products. | ||
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| 4<br>N O R F O L K<br>V I R G I N I A<br>B E A C H<br>M a ry l a n d<br>V irg in ia<br>No rth C a ro l in a<br>C H A R L O T T E<br>W I L M I N G T O N<br>B A L T I M O R E<br>R A L E I G H<br>G R E E N S B O R O<br>W A S H I N G T O N<br>R O A N O K E<br>S T A U N T O N<br>C H A R L O T T E S V I L L E<br>R I C H M O N D<br>F R E D E R I C K S B U R G<br>HIGHLIGHTS1<br>branches across<br>Virginia, North<br>Carolina and<br>Maryland footprint<br>183<br>largest regional<br>bank in Mid-Atlantic, Maryland<br>and Virginia2,3<br>#1<br>$37.3 Billion<br> Assets<br>$27.3 Billion<br> Loans<br>$31.0 Billion<br> Deposits<br>$4.8 Billion<br>Market Capitalization<br>Soundness | Profitability | Growth<br>1. Assets, Loans, Deposits and Branch Count are as of June 30, 2025. Market Cap as of July 23, 2025.<br>2. Regional market: Delaware, Maryland, New Jersey, Pennsylvania, Virginia, Washington D.C., and West Virginia<br>3. Regional banks defined as U.S. Banks with <$100 Billion in assets<br>OUR COMPANY<br>Branch (183) LPO (2)<br>Largest Regional Bank Headquartered in the Lower Mid-Atlantic |
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| 5<br>Dense, uniquely valuable presence<br>across attractive markets<br>FINANCIAL<br>STRENGTH<br>Solid balance sheet &<br>capital levels<br>PEER-LEADING<br>PERFORMANCE<br>Committed to top-tier<br>financial performance<br>ATTRACTIVE<br>FINANCIAL<br>PROFILE<br>Solid dividend yield<br>& payout ratio with<br>earnings upside<br>STRONG GROWTH<br>POTENTIAL<br>Organic & acquisition<br>opportunities<br>OUR<br>SHAREHOLDER<br>VALUE<br>PROPOSITION<br>Positioned for growth and long-term shareholder value creation as a<br>preeminent regional bank with a leading presence in attractive markets<br>LEADING REGIONAL<br>PRESENCE | ||
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| 6<br>CARING<br>Working together toward<br>common goals, acting with<br>kindness, respect and a<br>genuine concern for others.<br>COURAGEOUS<br>Speaking openly, honestly<br>and accepting our challenges<br>and mistakes as opportunities<br>to learn and grow.<br>COMMITTED<br>Driven to help our clients,<br>Teammates and company<br>succeed, doing what is right and<br>accountable for our actions.<br>Culture — HOW we come together<br>and interact as a team to<br>accomplish our business<br>and societal goals.<br>OUR<br>CORE VALUES<br>Culture — HOW we come<br>together and interact as a<br>team to accomplish our<br>business and societal goals. | ||
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| 7<br>WE ARE FOCUSED ON THREE STRATEGIC PRIORITIES<br>ORGANIC<br>DELIVER ORGANIC GROWTH<br>• Overweighting opportunities in<br>Wholesale Banking Group<br>• Directing consumer efforts to market<br>segments and delivery channels with<br>the strongest value proposition<br>• Prioritizing fee income growth<br>• Maintaining a reliable low-cost deposit<br>base<br>• Maximizing operating leverage,<br>productivity, efficiency, and scale<br>• Attracting and retaining top talent in<br>alignment with broader business goals<br>and strategic priorities<br>STRATEGIC INVESTMENTS<br>• Leverage FinTech partnerships, strategic<br>partner equity investments, as well as non-bank and whole-bank acquisition<br>opportunities for step-change accelerants of<br>growth<br>• Acquisition philosophy remains: strategic,<br>disciplined, and measured with an eye<br>towards transactions that increase density<br>and scarcity value, add contiguous markets,<br>increase operating leverage, diversify revenue<br>streams, and enable the reinvestment of cost<br>savings into technology<br>• Ensuring merger and acquisition activity<br>complements, enables, and scales<br>technology and the advancement of our<br>customer value proposition, potentially<br>including whole bank, non-bank, minority<br>stakes, and partnerships<br>INNOVATE AND TRANSFORM<br>• Pressing the relationship model<br>advantage where bankers provide<br>advocacy and advice, form stickier<br>relationships, and use technology to<br>enable deeper relationships<br>• Creating a frictionless experience for<br>customers by integrating human<br>interactions with digital capabilities<br>• Eliminating low value tasks and enabling<br>more high value interactions with<br>customers<br>• Eliminating legacy system constraints<br>and accelerating modernization of<br>technology while rationalizing operating<br>costs and reengineering processes<br>• Emphasizing robotics, automation<br>and FinTech partnerships<br>INORGANIC | ||
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| 8<br>1. For non-GAAP financial measures, see reconciliation to most directly comparable GAAP measure in "Appendix - Reconciliation of Non-GAAP Disclosures”<br>HIGHLIGHTS<br>Q2 2025<br>LOANS & DEPOSITS<br>Assuming the Sandy Spring acquisition closed on<br>March 31 instead of April 1, and excluding both<br>the loan fair value marks on the acquired loans<br>and the effect of the CRE loan sale transaction,<br>our loan growth was approximately 4% annualized<br>in Q2 2025<br>Paid down approximately $340 million in brokered<br>deposits<br>Loan/Deposit ratio of 88.2% at June 30, 2025<br>POSITIONING<br>FOR LONG TERM<br>Lending pipelines remain healthy<br>Focus on systems integration of Sandy Spring,<br>performance of the core banking franchise, and<br>building out North Carolina franchise<br>Focused on generating positive operating leverage<br>DIFFERENTIATED<br>CLIENT EXPERIENCE<br>Responsive, strong and capable alternative to large<br>national banks, while competitive with and more<br>capable than smaller banks<br>CAPITALIZE ON<br>STRATEGIC OPPORTUNITIES<br>Closed the acquisition of Sandy Spring on April 1, 2025<br>Sandy Spring core systems conversion scheduled for<br>October 2025<br>FINANCIAL RATIOS<br>Q2 2025 adjusted operating return on tangible common<br>equity of 23.8%1<br>Q2 2025 adjusted operating return on assets of 1.46%1<br>Q2 2025 adjusted operating efficiency ratio (FTE) of 48.31<br>ASSET QUALITY<br>Q2 2025 net charge-offs at 1 basis point of total<br>average loans held for investment annualized<br>Increased Allowance for Credit Loss to 1.25%<br>of loans held for investment<br>Credit marked Sandy Spring’s loan portfolio<br>and brought onto AUB’s more conservative risk<br>rating system<br>8 | ||
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| 9<br>LOANS ($mm)<br>$15,723 $16,611 $15,932 $16,818<br>$20,398<br>$30,972<br>2020 2021 2022 2023 2024 2025 YTD<br>Data as of December 31 each respective year, except for 2025 YTD which is as of June 30, 2025<br>CAGR defined as compounded annual growth rate from 2020 through the first six months of 2025<br>BALANCE SHEET TRENDS (GAAP)<br>$19,628 $20,065 $20,461 $21,166<br>$24,585<br>$37,289<br>2020 2021 2022 2023 2024 2025 YTD<br>$14,021 $13,196<br>$14,449<br>$15,635<br>$18,471<br>$27,328<br>2020 2021 2022 2023 2024 2025 YTD<br>16% CAGR DEPOSITS ($mm) 16% CAGR ASSETS ($mm) 16% CAGR | ||
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| 10 Data as of or for the twelve months ended each respective year, except for 2025 YTD which is for the six months ended June 30, 2025<br>STRONG TRACK RECORD OF PERFORMANCE (GAAP)<br>$1.93<br>$3.26 $2.97 $2.53 $2.24<br>$0.55<br>2020 2021 2022 2023 2024 2025 YTD<br>6.14%<br>9.68% 9.51% 8.27% 7.04%<br>3.53%<br>2020 2021 2022 2023 2024 2025 YTD<br>60.19% 61.91%<br>57.46%<br>61.32% 62.09%<br>67.16%<br>2020 2021 2022 2023 2024 2025 YTD<br>0.83%<br>1.32% 1.18%<br>0.98% 0.88%<br>0.45%<br>2020 2021 2022 2023 2024 2025 YTD<br>EARNINGS PER SHARE, DILUTED<br>AVAILABLE TO COMMON SHAREHOLDERS ($) RETURN ON EQUITY (ROE) (%)<br>RETURN ON ASSETS (ROA) (%) EFFICIENCY RATIO (%) | ||
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| 11<br>STRONG TRACK RECORD OF PERFORMANCE (NON-GAAP)<br>Data as of or for the twelve months ended each respective year, except for 2025 YTD which is for the six months ended June 30, 2025<br>(1) Non-GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconciliation of Non-GAAP Disclosures”<br>ADJUSTED OPERATING EARNINGS PER SHARE<br>AVAILABLE TO COMMON SHAREHOLDERS, DILUTED ($)(1)<br>ADJUSTED OPERATING RETURN<br>ON TANGIBLE COMMON EQUITY (ROTCE) (%)(1)<br>ADJUSTED OPERATING RETURN ON ASSETS (ROA)<br>(%)(1)<br>ADJUSTED OPERATING EFFICIENCY RATIO (FTE)<br>(%)(1)<br>$2.21<br>$3.53<br>$2.92 $2.95 $2.88<br>$1.61<br>2020 2021 2022 2023 2024 2025 YTD<br>12.64%<br>18.07% 17.06% 17.21% 16.85% 19.50%<br>2020 2021 2022 2023 2024 2025 YTD<br>52.18%<br>54.52% 54.68% 54.15%<br>53.31%<br>51.52%<br>2020 2021 2022 2023 2024 2025 YTD<br>0.94%<br>1.43%<br>1.16% 1.14% 1.11% 1.24%<br>2020 2021 2022 2023 2024 2025 YTD | ||
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| 12<br>CAPITAL RATIO<br>REGULATORY<br>WELL CAPITALIZED<br>MINIMUMS<br>REPORTED PRO FORMA INCLUDING AOCI<br>& HTM UNREALIZED LOSSES<br>ATLANTIC<br>UNION<br>BANKSHARES<br>ATLANTIC<br>UNION<br>BANK<br>ATLANTIC<br>UNION<br>BANKSHARES<br>ATLANTIC<br>UNION BANK<br>Common Equity Tier 1 Ratio<br>(CET1) 6.5% 9.8% 12.5% 8.6% 11.3%<br>Tier 1 Capital Ratio 8.0% 10.3% 12.5% 9.1% 11.3%<br>Total Risk Based Capital<br>Ratio 10.0% 13.7% 13.5% 12.5% 12.3%<br>Leverage Ratio 5.0% 8.7% 10.5% 7.6% 9.4%<br>Tangible Equity to Tangible<br>Assets (non-GAAP)1<br>- 7.9% 9.7% 7.7% 9.6%<br>Tangible Common Equity<br>Ratio (non-GAAP) 1<br>- 7.4% 9.7% 7.3% 9.6%<br>1. For non-GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non-GAAP Disclosures”<br>* Capital information presented herein is based on estimates and subject to change pending the Company’s filing of its regulatory reports<br>STRONG CAPITAL POSITION CAPITAL MANAGEMENT STRATEGY<br>ATLANTIC UNION CAPITAL MANAGEMENT<br>OBJECTIVES ARE TO:<br>• Maintain designation as a “well capitalized”<br>institution.<br>• Ensure capital levels are commensurate with<br>the Company’s risk profile, capital stress test<br>projections, and strategic plan objectives.<br>THE COMPANY’S CAPITAL RATIOS ARE WELL<br>ABOVE REGULATORY WELL CAPITALIZED LEVELS<br>AS OF JUNE 30, 2025<br>• On a pro forma standalone basis, the Company<br>would be well capitalized if unrealized losses on<br>securities were realized at June 30, 2025.<br>CAPITAL MANAGEMENT ACTIONS<br>• During the second quarter, the Company paid a<br>common stock dividend of 34 cents per share,<br>which was an increase of 6.3% from the second<br>quarter of 2024 dividend amount.<br>• During the second quarter of 2025, the Company<br>paid dividends of $171.88 per outstanding share<br>of Series A Preferred Stock<br>At June 30,2025 | ||
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| Including Sandy Spring franchise footprint<br>AUB FRANCHISE PERSPECTIVES | ||
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| 14<br>Source: SNL Financial and FDIC deposit data<br>Deposit and branch data as of 6/30/24 which are both presented on a pro forma basis for any announced transactions , and, with respect to Atlantic Union, includes the pro forma impact of our acquisition<br>of Sandy Spring excluding any impacts from acquisition accounting<br>Note: Excludes branches with deposits greater than $5.0 billion<br>VIRGINIA: ALL BANKS VIRGINIA: BANKS HEADQUARTERED IN VA<br>Rank Institution Deposits ($mm) Market Share (%) Branches<br>1 Truist Financial Corp $48,427 21.3% 260<br>2 Wells Fargo & Co 32,756 14.4 185<br>3 Bank of America Corp. 25,539 11.3 101<br>4 Atlantic Union Bankshares Corp 20,678 9.1 130<br>5 TowneBank 12,554 5.5 61<br>6 United Bankshares Inc. 9,057 4.0 80<br>7 PNC Financial Services Group Inc. 5,031 2.2 57<br>8 Capital One Financial Corp. 5,014 2.2 20<br>9 Burke & Herbert 3,797 1.7 37<br>10 Carter Bank & Trust 3,334 1.5 53<br>Top 10 Banks $166,186 73.2% 984<br>All Institutions in Market $226,917 100.0% 1,853<br>Rank Institution Deposits ($mm) Market Share (%) Branches<br>1 Atlantic Union Bankshares Corp. $20,678 24.3% 130<br>2 TowneBank 12,554 14.7 61<br>3 Capital One Financial Corp. 5,014 5.9 20<br>4 Burke & Herbert 3,797 4.5 37<br>5 Carter Bank & Trust 3,334 3.9 53<br>6 Primis Financial Corp 3,173 3.7 25<br>7 First Bancorp Inc. 2,685 3.2 20<br>8 Blue Ridge Bankshares Inc. 2,354 2.8 30<br>9 C&F Financial Corp 2,118 2.5 31<br>10 FVCBankcorp Inc. 1,861 2.2 5<br>Top 10 Banks $57,567 67.6% 412<br>All Institutions in Market $85,196 100.0% 834<br>Statewide Branch Footprint Brings Unique Franchise Value and Significant Growth Opportunity<br>SIZEABLE OPPORTUNITY TO TAKE<br>MARKET SHARE FROM THE BIG THREE<br>Franchise<br>Strength<br>Growth<br>Opportunity | ||
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| 15<br>Growth Opportunity in both Maryland and North Carolina<br>Source: SNL Financial and FDIC deposit data<br>Deposit and branch data as of 6/30/24 which is presented on a pro forma basis for any announced transactions, and, with respect to Atlantic Union, includes the pro forma impact of our acquisition of Sandy<br>Spring excluding any impacts from acquisition accounting<br>Note: Excludes branches with deposits greater than $5.0 billion<br>MARKET OPPORTUNITY IN MARYLAND AND NORTH CAROLINA<br>MARYLAND: ALL BANKS NORTH CAROLINA: ALL BANKS<br>Rank Institution Deposits ($mm) Market Share (%) Branches<br>1 Truist Financial Corp. $43,459 19.5% 275<br>2 Wells Fargo & Co. 37,836 17.0 229<br>3 First Citizens BancShares Inc. 25,019 11.2 200<br>4 Bank of America Corp. 20,970 9.4 106<br>5 PNC Financial Services Group Inc. 10,335 4.6 104<br>6 First Bancorp 9,152 4.1 101<br>7 Fifth Third Bancorp 7,702 3.5 77<br>8 F.N.B. Corp. 7,636 3.4 91<br>9 First Horizon Corp. 6,832 3.1 79<br>10 Pinnacle Financial Partners Inc. 6,504 2.9 48<br>26 Atlantic Union Bankshares Corp. 1,036 0.5 11<br>Top 10 Banks $175,445 78.7% 1,310<br>All Institutions in Market $222,801 100.0% 1,995<br>Rank Institution Deposits ($mm) Market Share (%) Branches<br>1 Bank of America Corp. $30,444 17.6% 118<br>2 Truist Financial Corp. 21,651 12.5 138<br>3 M&T Bank Corp. 18,295 10.6 160<br>4 PNC Financial Services Group Inc. 17,273 10.0 117<br>5 Wells Fargo & Co. 11,695 6.8 75<br>6 Capital One Financial Corp. 11,342 6.6 42<br>7 Atlantic Union Bankshares Corp 9,661 5.6 41<br>8 Forbright Inc. 5,502 3.2 3<br>9 Eagle Bancorp Inc. 5,494 3.2 7<br>10 Shore Bancshares Inc. 4,718 2.7 36<br>Top 10 Banks $136,075 78.8% 737<br>All Institutions in Market $173,222 100.0% 1,170<br>Growth<br>Opportunity<br>Growth<br>Opportunity | ||
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| 16 Source: Most recent data available from SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics, CNBC, U.S. Small Business Administration, Business Facilities<br>AMONG THE MOST ATTRACTIVE<br>STATES IN USA FOR BUSINESS<br>Virginia rated 1st in Workforce<br>Training and Cybersecurity, 2nd<br>in Tech Talent Pipeline and 3<br>rd in<br>Business Climate<br>North Carolina rated 2nd in<br>Business Climate<br>Virginia ranked 3rd and Maryland<br>ranked 4th in AI Growth Hubs<br># State June 2025<br>%<br>1 South Dakota 1.8<br>2 North Dakota 2.5<br>3 Vermont 2.6<br>4 Montana 2.8<br>4 Hawaii 2.8<br>6 Nebraska 3.0<br>7 New Hampshire 3.1<br>7 Oklahoma 3.1<br># State Pop.<br>(Millions)<br>1 California 39.2<br>2 Texas 30.7<br>3 Florida 22.7<br>4 New York 19.6<br>5 Pennsylvania 13.0<br>6 Illinois 12.5<br>7 Ohio 11.8<br>8 Georgia 11.1<br># State HHI ($)<br>1 District of Columbia 98,916<br>2 Maryland 97,364<br>3 Massachusetts 96,584<br>4 New Jersey 96,278<br>5 New Hampshire 94,929<br>6 Washington 93,297<br>7 California 92,605<br>8 Hawaii 91,385<br># State GDP<br>($Billions)<br>1 California 4,103<br>2 Texas 2,709<br>3 New York 2,297<br>4 Florida 1,706<br>5 Illinois 1,137<br>6 Pennsylvania 1,024<br>7 Ohio 928<br>8 Georgia 882<br># State Pop.<br>(Millions)<br>9 North Carolina 10.9<br>10 Michigan 10.1<br>11 New Jersey 9.3<br>12 Virginia 8.8<br>13 Washington 7.9<br>14 Arizona 7.5<br>15 Tennessee 7.1<br>19 Maryland 6.2<br># State HHI ($)<br>9 Colorado 90,555<br>10 Connecticut 89,717<br>11 Virginia 89,172<br>12 Utah 88,438<br>13 Alaska 86,275<br>14 Minnesota 86,272<br>15 New York 81,057<br>37 North Carolina 71,489<br># State June 2025<br>%<br>9 Alabama 3.2<br>9 Utah 3.2<br>9 Wisconsin 3.2<br>12 Maryland 3.3<br>16 Virginia 3.5<br>21 North Carolina 3.7<br>50 District of Columbia 5.9<br>National Rate 4.1<br># State GDP<br>($Billions)<br>9 Washington 854<br>10 New Jersey 847<br>11 North Carolina 839<br>12 Massachusetts 781<br>13 Virginia 764<br>14 Michigan 707<br>15 Colorado 553<br>18 Maryland 543<br>Ranked Virginia the Best State for<br>Business for 2024, 2021 and 2020<br>and 2nd best in 2023<br>North Carolina ranked best in 2025<br>and 2023 and 2nd best in 2024<br>Maryland ranked 8th for Technology<br>and Innovation in 2024<br>Virginia has 854,172 small businesses —<br>99.6% of VA businesses<br>Maryland has 668,365 small businesses<br>— 99.6% of MD businesses<br>North Carolina has 1.1 million small<br>businesses — 99.6% of<br>NC businesses<br>MEDIAN HOUSEHOLD INCOME ($) 2024 POPULATION (MILLIONS)<br>2024 GDP UNEMPLOYMENT BY STATE<br>( $ B I LLI O N S ) | ||
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| 17<br>Source: SNL Financial; Bureau of Economic Analysis; Federal Reserve; Federal Government Employment excludes military personnel and is from a March 4, 2025<br>analysis by the Richmond Federal Reserve<br>AMONG THE MOST ATTRACTIVE<br>MARKETS IN USA<br># County 2025 ($)<br>1 Loudoun, VA 178,282<br>2 Falls Church, VA 177,401<br>3 Santa Clara, CA 158,751<br>4 San Mateo, CA 154,846<br>5 Los Alamos, NM 150,209<br>6 Fairfax, VA 150,142<br>7 Douglas, CO 149,907<br>8 Hunterdon, NJ 146,648<br># State Total Share of all Federal<br>Government (%)<br>Share of state<br>employment<br>(%)<br>% in National<br>Security<br>Agencies<br>1<br>District of<br>Columbia<br>162,144 7.23 21.2 28.5<br>2 California 147,487 6.58 0.8<br>3 Virginia 144,483 6.45 3.5 80.0<br>4 Maryland 142,876 6.37 5.3 39.2<br>5 Texas 129,738 5.79 0.9<br>6 Florida 94,014 4.19 0.9<br>7 Georgia 79,686 3.56 1.6<br>8 Pennsylvania 66,079 2.95 1.1<br>9 Washington 56,772 2.53 1.6<br>10 Ohio 55,487 2.48 1.0<br>11 New York 53,600 2.39 0.6<br>12 North Carolina 51,013 2.28 1.0<br># County 2025 ($)<br>9 Nantucket, MA 146,042<br>10 Fairfax, VA (City) 144,223<br>11 Summit, UT 142,844<br>12 Stafford, VA 142,519<br>13 Elbert, CO 141,524<br>14 San Francisco, CA 141,370<br>15 Marin, CA 140,592<br>UNEMPLOYMENT RATES FOR LARGE METRO AREAS<br>MEDIAN HOUSEHOLD INCOME FEDERAL GOVERNMENT EMPLOYMENT<br>Metro Area February 2025<br>Rate % Rank # May 2025<br>Rate % Rank #<br>Raleigh/Cary 3.0 3 3.1 7<br>Baltimore/Columbia/Towson 3.3 6 3.2 11<br>Richmond 3.3 6 3.5 17<br>Washington DC/Arlington/Alexandria 3.4 8 3.6 19<br>Virginia Beach/Chesapeake/Norfolk 3.5 11 3.7 24<br>Within Virginia, Maryland and North<br>Carolina, we operate in strong markets.<br>• Unemployment ticked up slightly in most<br>of our large metro areas, but remains<br>below national average<br>• 5 of top 12 counties with highest median<br>household income in the country<br>Outside of Washington D.C., where we<br>have a limited presence, the share of<br>Federal Government employment as a %<br>of overall state employment is relatively<br>low.<br>• Virginia has a high percentage of<br>employment at national security agencies<br>such as Department of Navy, Department<br>of Defense, Department of the Army,<br>Department of Veterans Affairs,<br>Department of the Air Force and<br>Department of Homeland Security | ||
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| 18<br>1. Information on this slide is presented as of July 24, 2025, reflects the Company’s updated financial outlook, certain of the Company’s financial targets, and<br>key economic and other assumptions, and will not be updated or affirmed unless and until the Company publicly announces such an update or affirmation.<br>The adjusted operating noninterest expense outlook excludes amortization of intangible assets, merger-related costs, and FDIC special assessments, and<br>the adjusted operating noninterest income outlook excludes gains and losses on the sale of securities, loans or the equity interest in CSP. The FY 2025<br>financial outlook, the Company’s financial targets and the key economic assumptions contain forward-looking statements. These statements are based on<br>current beliefs and expectations of our management and are subject to significant risks and uncertainties, including, but not limited to, volatility and<br>uncertainty in the macroeconomic environment, changes in federal and state governmental policies, the imposition or expansion of tariffs, sustained<br>inflationary pressures, recessionary conditions, and geopolitical instability. As a result, actual results or conditions may differ materially. See the<br>information set forth below the heading “Forward-Looking Statements” on slide 2 of this presentation.<br>2. Refer to “Additional Information” slide and Appendix for non-GAAP disclosures.<br>3. Includes preliminary estimates of accretion income from the Sandy Spring acquisition which are subject to change.<br>2025 FINANCIAL OUTLOOK1<br>• 2025 outlook includes nine months<br>impact of the Sandy Spring acquisition<br>in results<br>• The outlook includes estimates of<br>merger-related purchase accounting<br>adjustments with respect to the Sandy<br>Spring acquisition that are subject to<br>change<br>• Remain on track for cost-savings target<br>of 27% of Sandy Spring non-interest<br>expense<br>• The Federal Reserve Bank cuts the Fed<br>Funds rate by 25 bps three times in<br>2025 starting in September<br>• Assumes slower GDP growth but not<br>forecasting recession in 2025<br>• Expect Virginia, Maryland and North<br>Carolina unemployment rate to rise but<br>remain below the national<br>unemployment rate in 2025<br>Loans (end of period) $28.0 – 28.5 billion<br>Deposits (end of period) $31.0 – 31.5 billion<br>Credit Outlook<br>ACL to loans: ~120 – 130 bps<br>Net charge-off ratio: ~15 – 20 bps<br>Net Interest Income (FTE) 2,3 ~$1.15 - $1.20 billion<br>Net Interest Margin (FTE)2,3 ~3.75% - 4.00%<br>Adjusted Operating Noninterest Income2 ~$175 - $185 million<br>Adjusted Operating Noninterest Expense2<br>(excludes amortization of intangible assets) ~$670- $680 million<br>Amortization of intangible assets ~$60 million<br>KEY ASSUMPTIONS1<br>FULL YEAR 2025 OUTLOOK1<br>Inclusive of Sandy Spring beginning April 1st | ||
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| 19<br>10 New Branches Planned Over Next 3 Years<br>Our initial focus will be in Raleigh and Wilmington, with plans<br>to open highly visible locations targeting attractive<br>submarkets combined with AUB branded ATMs at high-traffic<br>retailers and paired with expanded commercial, wealth and<br>mortgage teams<br>North Carolina Expansion Strategy<br>7<br>Raleigh<br>Branches<br>3<br>Wilmington<br>Branches<br>49<br>Off-Site<br>ATMs<br>N O R F O L K<br>V I R G I N I A<br>B E A C H<br>M a ry l a n d<br>V irg in ia<br>No rth C a ro l in a<br>C H A R L O T T E<br>W I L M I N G T O N<br>B A L T I M O R E<br>R A L E I G H<br>G R E E N S B O R O<br>W A S H I N G T O N<br>R O A N O K E<br>S T A U N T O N<br>C H A R L O T T E S V I L L E<br>R I C H M O N D<br>F R E D E R I C K S B U R G<br>Current Branch (183)<br>LPO (1)<br>Additional Branch<br>Following Planned Expansion (10) | ||
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| Q2 2025<br>APPENDIX | ||
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| 21<br>AUB DIVERSIFIED AND GRANULAR LOAN PORTFOLIO<br>Figures may not total to 100% due to rounding<br>Duration and Weighted Average Yield Data is as of or for the three months ended June 30, 2025<br>Commercial defined as C&I plus owner-occupied commercial real estate and other commercial<br>Duration<br>Q2 2025 Weighted Average Yield (Tax Equivalent)<br>C&D 8.9%<br>Owner Occupied<br>CRE<br>14.4%<br>C&I<br>18.8%<br>Other Commercial<br>Commercial 1-4 Family 5.2%<br>4.1%<br>Non-Owner<br>Occupied CRE<br>25.3%<br>Multifamily RE<br>7.6%<br>Consumer 1-4 Family<br>10.0%<br>Residential 1-4 family<br>- Revolving 4.2%<br>Auto<br>0.9%<br>Consumer<br>0.4%<br>TOTAL LOAN PORTFOLIO $27.3 BILLION<br>Total Portfolio Characteristics<br>At June 30,2025<br>LOAN PORTFOLIO CHARACTERISTICS<br>1.5 years<br> Duration<br>38%<br>Commercial<br>6.48%<br>Q2 2025 Weighted Average Yield (Tax Equivalent) | ||
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| 22<br>Total Non-Owner Occupied<br>CRE 25.3%<br>Owner Occupied CRE 14.4%<br>Construction and Land<br>Development 8.9%<br>Multifamily Real Estate 7.6%<br>Residential 1-4 Family -<br>Commercial 4.1%<br>All Other Loans 39.6%<br>Figures may not foot due to rounding<br>AUB COMMERCIAL REAL ESTATE (“CRE”) PORTFOLIO<br>At June 30,2025<br>CRE BY CLASS<br>$ I N M I LLI O N S<br>$27.3B<br>Total<br>Loans<br>Total Outstandings % of Portfolio<br>Hotel/Motel B&B $1,157 4.2%<br>Industrial/Warehouse $1,139 4.2%<br>Office $1,415 5.2%<br>Retail $1,762 6.4%<br>Self Storage $538 2.0%<br>Senior Living $427 1.5%<br>Other $475 1.7%<br>Total Non-Owner Occupied CRE $6,913 25.3%<br>Owner Occupied CRE $3,940 14.4%<br>Construction and Land Development $2,444 8.9%<br>Multifamily Real Estate $2,084 7.6%<br>Residential 1-4 Family - Commercial $1,131 4.1%<br>Total CRE $16,512 60.4% | ||
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| 23<br>At June 30,2025<br>1. Trailing 4 Quarters Avg NCO/Trailing 4 Quarter Avg Office Portfolio<br>Figures may not foot due to rounding.<br>NON-OWNER OCCUPIED OFFICE CRE PORTFOLIO<br>NON-OWNER OCCUPIED OFFICE<br>GEOGRAPHICALLY DIVERSE NON PORTFOLIO CREDIT QUALITY -OWNER OCCUPIED OFFICE PORTFOLIO<br>* DC, Montgomery County, Prince George’s County, Fairfax County, Fairfax City, Falls<br>Church City, Arlington County, Alexandria City<br>( $ M I LLI O N S )<br>Avg. Office Loan ($ thousands) $1,946<br>Median Office Loan ($ thousands) $725<br>Loan Loss Reserve / Office Loans 3.11%<br>NCOs / Office Loans1 -0.05%<br>Delinquencies / Office Loans 0.22%<br>NPL / Office Loans 0.86%<br>Criticized Loans / Office Loans 3.67%<br>Carolinas $303<br>Western VA $116<br>Fredericksburg Area $142<br>Central VA $99<br>Coastal VA $66<br>Baltimore Metro $131<br>DC Metro $395<br>Other Maryland $62<br>Eastern VA $47<br>Other $55<br>Total $1,415<br>District of Columbia $71<br>Suburban Maryland $166<br>Suburban Virginia $158<br>Total $395<br>BY MARKET DC METRO SUBMARKET* KEY PORTFOLIO METRICS | ||
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| 24<br>MULTIFAMILY CRE PORTFOLIO<br>1. Trailing 4 Quarters Avg NCO/Trailing 4 Quarter Avg Multifamily Portfolio<br>Figures may not foot due to rounding.<br>Avg. Multifamily Loan ($ thousands) $3,110<br>Median Multifamily Loan ($ thousands) $753<br>Loan Loss Reserve / Multifamily Loans 0.52%<br>NCOs / Multifamily Loans1 -0.01%<br>Delinquencies / Multifamily Loans 0.13%<br>NPL / Multifamily Loans 0.08%<br>Criticized Loans / Multifamily Loans 7.33%<br>Carolinas $645<br>Western VA $285<br>Fredericksburg Area $81<br>Central VA $290<br>Coastal VA $217<br>Baltimore Metro $165<br>DC Metro $277<br>Other Maryland $9<br>Eastern VA $84<br>Other $30<br>Total $2,084<br>At June 30,2025<br>District of Columbia $219<br>Suburban Maryland $51<br>Suburban Virginia $6<br>Total $277<br>* DC, Montgomery County, Prince George’s County, Fairfax County, Fairfax City, Falls<br>Church City, Arlington County, Alexandria City<br>BY MARKET<br>MULTIFAMILY PORTFOLIO CREDIT<br>GEOGRAPHICALLY DIVERSE MULTIFAMILY PORTFOLIO QUALITY<br>DC METRO SUBMARKET* KEY PORTFOLIO METRICS<br>( $ M I LLI O N S ) | ||
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| 25<br>$744 million 1.31% $2.6 million<br>Total Amount of Loans Loan Loss Reserve/<br>Gov Con Loans<br>Avg. Loan Size<br>0.0% 0.0% 7.99%<br>Non-Performing Loans Net Charge-Offs1 Criticized Loans/<br>Gov Con Loans<br>Source: Company Materials (as of 2Q’2025)<br>1. Trailing 4 Quarters Avg NCO/Trailing 4 Quarter Avg Government Contracting Portfolio<br>OVERVIEW OF GOVERNMENT-RELATED LOAN<br>PORTFOLIO EXPOSURES<br>• Government Contracting team has<br>managed through government<br>shutdowns and sequestrations in the<br>past.<br>• Focus on national security agency and<br>defense industry contractors.<br>• Active monitoring of all published<br>notices of contract terminations or<br>stop work orders.<br>KEY METRICS OF GOVERNMENT CONTRACTING PORTFOLIO<br>As of June 30,2025 | ||
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| 26<br>ATTRACTIVE CORE DEPOSIT BASE<br>Cost of deposit data is as of and for the three months ended June 30, 2025, figures may not foot due to rounding<br>1. Core deposits defined as total deposits less jumbo time deposits and brokered deposits<br>Non-Interest Bearing<br>23%<br>Interest Checking<br>22%<br>Money Market<br>24%<br>Retail Time<br>15%<br>Jumbo Time<br>4%<br>Brokered<br>3%<br>Savings<br>9%<br>DEPOSIT BASE CHARACTERISTICS DEPOSIT COMPOSITION AT JUNE 30, 2025 — $31.0 BILLION<br>93%<br> core deposits1<br>45%<br>transactional accounts<br>2.20%<br>Q2 2025 cost of deposits | ||
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| 27<br>GRANULAR DEPOSIT BASE<br>CUSTOMER DEPOSIT GRANULARITY<br>PERIOD END UNINSURED & UNCOLLATERALIZED DEPOSITS<br>AS A PERCENTAGE OF TOTAL DEPOSITS<br>( $ M I LLI O N S )<br>27% 27% 29% 30% 32%<br>$5,375 $5,551<br>$5,992 $6,060<br>$9,907<br>Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025<br>$20,000 $20,000 $22,000<br>$89,000<br>$98,000 $105,000<br>Q2 2024 Q1 2025 Q2 2025<br>Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size | ||
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| 28<br>Cash and Cash<br>Equivalents<br>(unrestricted)<br>$1,586<br>Unencumbered<br>Securities<br>$2,185<br>FHLB Borrowing<br>Capacity<br>$5,160<br>Fed Funds Lines<br>$1,155<br>Discount Window<br>$3,525<br>Secondary Sources*<br>$1,959<br>AUB LIQUIDITY POSITION<br>* Includes brokered deposits and other sources of liquidity<br>Figures may not foot due to rounding<br>Liquidity<br>Sources<br>Total<br>$15.6<br>billion<br>At June 30,2025<br>TOTAL LIQUIDITY SOURCES OF<br>$15.6 BILLION<br>~158% Liquidity Coverage Ratio of<br>Uninsured/Uncollateralized Deposits of $9.9 billion<br>($ MILLIONS) | ||
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| 29<br>SECURITIES PORTFOLIO • Total securities portfolio of $4.6 billion with<br>a total unrealized loss of $422.0 million<br>– 83% of total portfolio book value in<br>available-for-sale at an unrealized loss<br>of $372.8 million<br>– 17% of total portfolio book value<br>designated as held-to-maturity with an<br>unrealized loss of $49.2 million<br>– 15% floating rate versus 85% fixed rate<br>• Total effective duration of approximately 4.3<br>years. Securities portfolio is used<br>defensively to neutralize overall asset<br>sensitive interest rate risk profile<br>• ~27% municipals, ~71% treasuries, agency<br>MBS/CMOs and ~2% corporates and other<br>investments<br>• In April 2025, we restructured $485.2<br>million in AFS securities acquired from<br>Sandy Spring. A majority of the proceeds<br>were reinvested into higher yielding<br>securities which will be accretive to forward<br>earnings.<br>• Securities to total assets of 12.4% as of<br>June 30, 2025, down from 13.4% on March<br>31, 2025<br>$3,366 $3,305<br>$4,636<br>2Q 2024 1Q 2025 2Q 2025<br>4.07% Yield 4.07% Yield<br>4.15% Yield<br>INVESTMENT SECURITIES BALANCES<br>Total AFS (fair value) and HTM (carrying value)<br>At June 30,2025<br>( $ M I LLI O N S ) | ||
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| 30<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>We have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures<br>are a supplement to GAAP, which we use to prepare our financial statements, and should not be considered in isolation or as a substitute for comparable<br>measures calculated in accordance with GAAP. In addition, our non-GAAP financial measures may not be comparable to non-GAAP financial measures of<br>other companies. We use the non-GAAP financial measures discussed herein in our analysis of our performance. Management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and<br>show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in our underlying<br>performance or show the potential effects of accumulated other comprehensive income or unrealized losses on held to maturity securities on our capital.<br>Due to the impact of completing the Sandy Spring acquisition in the second quarter of 2025 and the acquisition of American National Bankshares in the<br>second quarter of 2024, we updated our non-GAAP operating measures beginning in the second quarter of 2025 to exclude the CECL Day 1 non-PCD loans<br>and RUC provision expense. The CECL Day 1 non-PCD loans and RUC provision expense is comprised of the initial provision expense on non-PCD loans,<br>which represents the CECL “double count” of the non-PCD credit mark, and the additional provision for unfunded commitments. The Company does not<br>view the CECL Day 1 non-PCD loans and RUC provision expense as organic costs to run the Company’s business and believes this updated presentation<br>will provide investors with additional information to assist in period-to-period and company-to-company comparisons of operating performance, which will<br>aid investors in analyzing the Company’s performance. Prior period non-GAAP operating measures presented in this presentation have been recast to<br>conform to this updated presentation. | ||
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| 31<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>Adjusted operating measures exclude, as<br>applicable, merger-related costs, FDIC special<br>assessments, legal reserves associated with our<br>previously disclosed settlement with the CFPB,<br>strategic cost savings initiatives (principally<br>composed of severance charges related to<br>headcount reductions, costs related to<br>modifying certain third party vendor contracts,<br>and charges for exiting certain leases), strategic<br>branch closing and related facility consolidation<br>costs (principally composed of real estate,<br>leases and other asset write downs, as well as<br>severance and expense reduction initiatives), the<br>net loss related to balance sheet repositioning<br>(principally composed of gains and losses on<br>debt extinguishment), and charges for exiting<br>certain leases), deferred tax asset write-down,<br>CECL Day 1 non-PCD loans and RUC provision<br>expense, gain (loss) on sale of securities, gain on<br>sale-leaseback transaction, gain on CRE loan<br>sale, gain on sale of Dixon, Hubard, Feinour &<br>Brown, Inc. (“DHFB”), gain on sale of equity<br>interest in Cary Street Partners (“CSP”), and gain<br>on the sale of Visa, Inc. Class B common stock.<br>The Company believes these non-GAAP adjusted<br>measures provide investors with important<br>information about the continuing economic<br>results of the Company’s operations.<br>A DJUS TED O PER A TI N G EA R N I N GS & FI N A N CI A L METR I CS<br>For the three months ended For the six months ended For the years ended<br>(Dollars in thousands, except outstanding share and per share amounts) June 30, 2025 June 30, 2025 2024 2023 2022 2021 2020<br>Operating Measures<br>Net Income (GAAP) $ 19,791 $ 69,610 $ 209,131 $ 201,818 $ 234,510 $ 263,917 $ 158,228<br>Plus: Merger-related costs, net of tax 63,349 67,992 33,476 2,850 — — —<br>Plus: FDIC special assessment, net of tax — — 664 2,656 — — —<br>Plus: Legal reserve, net of tax — — — 6,809 — — —<br>Plus: Strategic cost saving initiatives, net of tax — — — 9,959 — — —<br>Plus: Strategic branch closing and facility consolidation costs, net of tax — — — — 4,351 13,775 5,343<br>Plus: Net loss related to balance sheet repositioning, net of tax — — — — — 11,609 25,979<br>Plus: Deferred tax asset write-down — — 4,774 — — — —<br>Plus: CECL Day 1 non-PCD loans and RUC provision expense, net of tax 77,742 77,742 11,520 — — — —<br>Less: Gain (loss) on sale of securities, net of tax 12 (81) (5,129) (32,381) (2) 69 9,712<br>Less: Gain on sale-leaseback transaction, net of tax — — — 23,367 — — —<br>Less: Gain on CRE loan sale, net of tax 12,104 12,104 — — — — —<br>Less: Gain on sale of DHFB, net of tax — — — — 7,984 — —<br>Less: Gain on sale of equity interest in CSP, net of tax 10,654 10,654 — — — — —<br>Less: Gain on Visa, Inc. Class B common stock, net of tax — — — — — 4,058 —<br>Adjusted operating earnings (non-GAAP) $ 138,112 $ 192,653 $ 264,694 $ 233,106 $ 230,879 $ 285,174 $ 179,838<br>Less: Dividends on preferred stock 2,967 5,934 11,868 11,868 11,868 11,868 5,658<br>Adjusted operating earnings available to common shareholders (non-GAAP) $ 135,145 $ 186,719 $ 252,826 $ 221,238 $ 219,011 $ 273,306 $ 174,180<br>Earnings per share (EPS)<br>Weighted average common shares outstanding, diluted 141,738,325 116,056,670 87,909,237 74,962,363 74,953,398 77,417,801 78,875,668<br>EPS available to common shareholders, diluted (GAAP) $ 0.12 $ 0.55 $ 2.24 $ 2.53 $ 2.97 $ 3.26 $ 1.93<br>Adjusted operating EPS available to common shareholders, diluted (non-GAAP) $ 0.95 $ 1.61 $ 2.88 $ 2.95 $ 2.92 $ 3.53 $ 2.21 | ||
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| 32<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>The Company believes net interest income (FTE), total<br>revenue (FTE), and total adjusted revenue (FTE), which<br>are used in computing net interest margin (FTE) and<br>adjusted operating efficiency ratio (FTE), provide<br>valuable additional insight into the net interest margin<br>and the efficiency ratio by adjusting for differences in<br>tax treatment of interest income sources. The entire<br>FTE adjustment is attributable to interest income on<br>earning assets, which is used in computing the yield on<br>earning assets. Interest expense and the related cost<br>of interest-bearing liabilities and cost of funds ratios<br>are not affected by the FTE components. The adjusted<br>operating efficiency ratio (FTE) excludes, as applicable,<br>the amortization of intangible assets, losses related to<br>balance sheet repositioning (principally composed of<br>gains and losses on debt extinguishment), merger-related costs, FDIC special assessments, strategic<br>cost savings initiatives (principally composed of<br>severance charges related to headcount reductions,<br>costs related to modifying certain third party vendor<br>contracts, and charges for exiting certain leases), legal<br>reserves associated with our previously disclosed<br>settlement with the CFBP, strategic branch closing and<br>facility consolidation costs (principally composed of<br>real estate, leases and other asset write downs, as well<br>as severance and expense reduction initiatives), gain<br>(loss) on sale of securities, gain on sale-leaseback<br>transaction, gain on sale of DHFB, gain on CRE loan<br>sale, gain on sale of equity interest in CSP, and gain on<br>sale of Visa, Inc. Class B common stock. This measure<br>is similar to the measure used by the Company when<br>analyzing corporate performance and is also similar to<br>the measure used for incentive compensation. The<br>Company believes this adjusted measure provides<br>investors with important information about the<br>continuing economic results of the Company’s<br>operations.<br>A DJUS TED O PER A TI N G EA R N I N GS & FI N A N CI A L METR I CS<br>For the three months ended For the six months ended For the years ended<br>(Dollars in thousands) June 30, 2025 June 30, 2025 2024 2023 2022 2021 2020<br>Operating Efficiency Ratio<br>Noninterest expense (GAAP) $ 279,698 $ 413,882 $ 507,534 $ 430,371 $ 403,802 $ 419,195 $ 413,349<br>Less: Amortization of intangible assets 18,433 23,832 19,307 8,781 10,815 13,904 16,574<br>Less: Losses related to balance sheet repositioning — — — — — 14,695 31,116<br>Less: Merger-related costs 78,900 83,840 40,018 2,995 — — —<br>Less: FDIC special assessment — — 840 3,362 — — —<br>Less: Strategic cost saving initiatives — — — 12,607 — — —<br>Less: Legal reserve — — — 8,300 — — —<br>Less: Strategic branch closing and facility consolidation<br>costs — — — — 5,508 17,437 6,764<br>Adjusted operating noninterest expense (non-GAAP) $ 182,365 $ 306,210 $ 447,369 $ 394,326 $ 387,479 $ 373,159 $ 358,895<br>Noninterest income (GAAP) $ 81,522 $ 110,685 $ 118,878 $ 90,877 $ 118,523 $ 125,806 $ 131,486<br>Plus: Losses related to balance sheet repositioning — — — — — — 1,769<br>Less: Gain (loss) on sale of securities 16 (87) (6,493) (40,989) (3) 87 12,294<br>Less: Gain on sale-leaseback transaction — — — 29,579 — — —<br>Less: Gain on sale of DHFB — — — — 9,082 — —<br>Less: Gain on CRE loan sale 15,720 15,720 — — — — —<br>Less: Gain on sale of equity interest in CSP 14,300 14,300 — — — — —<br>Less: Gain on Visa, Inc. Class B common stock — — — — — 5,137 —<br>Adjusted operating noninterest income (non-GAAP) $ 51,486 $ 80,752 $ 125,371 $ 102,287 $ 109,444 $ 120,582 $ 120,961<br>Net interest income (GAAP) $ 321,371 $ 505,536 $ 698,539 $ 611,013 $ 584,261 $ 551,260 $ 555,298<br>Noninterest income (GAAP) 81,522 110,685 118,878 90,877 118,523 125,806 131,486<br>Total revenue (GAAP) $ 402,893 $ 616,221 $ 817,417 $ 701,890 $ 702,784 $ 677,066 $ 686,784<br>Net interest income (FTE) (non-GAAP) $ 325,733 $ 513,656 $ 713,765 $ 625,923 $ 599,134 $ 563,851 $ 566,845<br>Adjusted operating noninterest income (non-GAAP) 51,486 80,752 125,371 102,287 109,444 120,582 120,961<br>Total adjusted revenue (FTE) (non-GAAP) $ 377,219 $ 594,408 $ 839,136 $ 728,210 $ 708,578 $ 684,433 $ 687,806<br>Efficiency ratio (GAAP) 69.42% 67.16% 62.09% 61.32% 57.46% 61.91% 60.19%<br>Adjusted operating efficiency ratio (FTE) (non-GAAP) 48.34% 51.52% 53.31% 54.15% 54.68% 54.52% 52.18% | ||
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| 33<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>Tangible assets and tangible common equity are used<br>in the calculation of certain profitability, capital, and<br>per share ratios. The Company believes tangible<br>assets, tangible common equity and the related ratios<br>are meaningful measures of capital adequacy because<br>they provide a meaningful base for period-to-period<br>and company-to-company comparisons, which the<br>Company believes will assist investors in assessing the<br>capital of the Company and its ability to absorb<br>potential losses. The Company believes tangible<br>common equity is an important indication of its ability<br>to grow organically and through business<br>combinations as well as its ability to pay dividends and<br>to engage in various capital management strategies.<br>The Company believes that ROTCE is a meaningful<br>supplement to GAAP financial measures and is useful<br>to investors because it measures the performance of a<br>business consistently across time without regard to<br>whether components of the business were acquired or<br>developed internally. Adjusted operating measures<br>exclude, as applicable, merger-related costs, FDIC<br>special assessments, legal reserves associated with<br>our previously disclosed settlement with the CFPB,<br>strategic cost savings initiatives (principally composed<br>of severance charges related to headcount reductions,<br>costs related to modifying certain third party vendor<br>contracts and charges for exiting certain leases),<br>strategic branch closing and related facility<br>consolidation costs (principally composed of real<br>estate, leases and other asset write downs, as well as<br>severance and expense reduction initiatives), the net<br>loss related to balance sheet repositioning (principally<br>composed of gains and losses on debt<br>extinguishment), deferred tax asset write-down, CECL<br>Day 1 non-PCD loans and RUC provision expense,<br>(loss) gain on sale of securities, gain on sale-leaseback<br>transaction, gain on CRE loan sale, gain on sale of<br>DHFB, gain on sale of equity interest in CSP, and gain<br>on the sale of Visa, Inc. Class B common stock. The<br>Company believes these non-GAAP adjusted<br>measures provide investors with important information<br>about the continuing economic results of the<br>Company’s operations.<br>ADJUSTED OPERATING EARNINGS & FINANCIAL M ETRICS<br>For the three months ended For the six months ended For the years ended<br>(Dollars in thousands, except per share amounts) June 30, 2025 June 30, 2025 2024 2023 2022 2021 2020<br>Return on assets (ROA)<br>Average assets $ 37,939,232 $ 31,345,735 $ 23,862,190 $ 20,512,402 $ 19,949,388 $ 19,977,551 $19,083,853<br>ROA (GAAP) 0.21% 0.45% 0.88% 0.98% 1.18% 1.32% 0.83%<br>Adjusted operating ROA (non-GAAP) 1.46% 1.24% 1.11% 1.14% 1.16% 1.43% 0.94%<br>Return on equity (ROE)<br>Adjusted operating earnings available to common shareholders (non-GAAP) $ 135,145 $ 186,719 $ 252,826 $ 221,238 $ 219,011 $ 273,306 $ 174,180<br>Plus: Amortization of intangibles, tax effected 14,562 18,827 15,253 6,937 8,544 10,984 13,093<br>Adjusted operating earnings available to common shareholders before amortization of<br>intangibles (non-GAAP) $ 149,707 $ 205,546 $ 268,079 $ 228,175 $ 227,555 $ 284,290 $ 187,273<br>Average equity (GAAP) 4,761,630 $ 3,977,098 $ 2,971,111 $ 2,440,525 $ 2,465,049 $ 2,725,330 $ 2,576,372<br>Less: Average goodwill 1,710,557 1,463,677 1,139,422 925,211 930,315 935,560 935,560<br>Less: Average amortizable intangibles 360,589 221,960 73,984 22,951 34,627 49,999 65,094<br>Less: Average perpetual preferred stock 166,356 166,356 166,356 166,356 166,356 166,356 93,658<br>Average tangible common equity (non-GAAP) $ 2,524,128 $ 2,125,105 $ 1,591,349 $ 1,326,007 $ 1,333,751 $ 1,573,415 $ 1,482,060<br>ROE (GAAP) 1.67% 3.53% 7.04% 8.27% 9.51% 9.68% 6.14%<br>Return on tangible common equity (ROTCE)<br>Net Income available to common shareholders (GAAP) $ 16,824 $ 63,676 $ 197,263 $ 189,950 $ 222,642 $ 252,049 $ 152,570<br>Plus: Amortization of intangibles, tax effected 14,562 18,827 15,253 6,937 8,544 10,984 13,093<br>Net Income available to common shareholders before amortization of intangibles (non-GAAP) $ 31,386 $ 82,503 $ 212,516 $ 196,887 $ 231,186 $ 263,033 $ 165,663<br>ROTCE (non-GAAP) 4.99% 7.83% 13.35% 14.85% 17.33% 16.72% 11.18%<br>Adjusted operating ROTCE (non-GAAP) 23.79% 19.50% 16.85% 17.21% 17.06% 18.07% 12.64% | ||
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| 34<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO<br>(Dollars in thousands, except per share amounts)<br>As of June 30, 2025<br>Atlantic Union<br>Bankshares<br>Atlantic Union<br>Bank<br>Tangible Assets<br>Ending Assets (GAAP) $ 37,289,371 $ 37,202,881<br>Less: Ending goodwill 1,710,912 1,710,912<br>Less: Ending amortizable intangibles 351,381 351,381<br>Ending tangible assets (non-GAAP) $ 35,227,078 $ 35,140,588<br>Tangible Common Equity<br>Ending equity (GAAP) $ 4,832,639 $ 5,474,358<br>Less: Ending goodwill 1,710,912 1,710,912<br>Less: Ending amortizable intangibles 351,381 351,381<br>Less: Perpetual preferred stock 166,357 —<br>Ending tangible common equity (non-GAAP) $ 2,603,989 $ 3,412,065<br>Net unrealized losses on HTM securities, net of tax $ (49,210) $ (49,210)<br>Accumulated other comprehensive loss (AOCI) $ (320,786) $ (320,848)<br>Common shares outstanding at end of period 141,694,720<br>Average equity (GAAP) $ 4,761,630 $ 5,254,019<br>Less: Average goodwill 1,710,557 1,710,557<br>Less: Average amortizable intangibles 360,589 360,589<br>Less: Average perpetual preferred stock 166,356 —<br>Average tangible common equity (non-GAAP) $ 2,524,128 $ 3,182,873<br>Tangible assets and tangible common equity are<br>used in the calculation of certain profitability,<br>capital, and per share ratios. The Company<br>believes tangible assets, tangible common<br>equity and the related ratios are meaningful<br>measures of capital adequacy because they<br>provide a meaningful base for period-to-period<br>and company-to-company comparisons, which<br>the Company believes will assist investors in<br>assessing the capital of the Company and its<br>ability to absorb potential losses. The Company<br>believes tangible common equity is an important<br>indication of its ability to grow organically and<br>through business combinations, as well as its<br>ability to pay dividends and to engage in various<br>capital management strategies. The Company<br>also calculates adjusted tangible common<br>equity to tangible assets ratios to exclude AOCI,<br>which is principally comprised of unrealized<br>losses on AFS securities, and to include the<br>impact of unrealized losses on HTM securities.<br>The Company believes that each of these ratios<br>enables investors to assess the Company's<br>capital levels and capital adequacy without the<br>effects of changes in AOCI, some of which are<br>uncertain and difficult to predict, or assuming<br>that the Company realized all previously<br>unrealized losses on HTM securities at the end of<br>the period, as applicable. | ||
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| 35<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO<br>(Dollars in thousands, except per share amounts)<br>As of June 30, 2025<br>Atlantic Union<br>Bankshares<br>Atlantic Union<br>Bank<br>Common equity to total assets (GAAP) 12.5% 14.7%<br>Tangible equity to tangible assets (non-GAAP) 7.9% 9.7%<br>Tangible equity to tangible assets, incl net unrealized losses on HTM securities (non-GAAP) 7.7% 9.6%<br>Tangible common equity to tangible assets (non-GAAP) 7.4% 9.7%<br>Tangible common equity to tangible assets, incl net unrealized losses on HTM securities (non-GAAP) 7.3% 9.6%<br>Tangible common equity to tangible assets, ex AOCI (non-GAAP) 8.3%<br>Book value per common share (GAAP) $ 32.93<br>Tangible book value per common share (non-GAAP) $ 18.38<br>Tangible book value per common share, ex AOCI (non-GAAP) $ 20.64<br>Leverage Ratio<br>Tier 1 capital $ 3,132,780 $ 3,776,076<br>Total average assets for leverage ratio $ 36,210,870 $ 36,116,875<br>Leverage ratio 8.7% 10.5%<br>Leverage ratio, incl AOCI and net unrealized losses on HTM securities (non-GAAP) 7.6% 9.4%<br>Tangible assets and tangible common equity are<br>used in the calculation of certain profitability,<br>capital, and per share ratios. The Company<br>believes tangible assets, tangible common<br>equity and the related ratios are meaningful<br>measures of capital adequacy because they<br>provide a meaningful base for period-to-period<br>and company-to-company comparisons, which<br>the Company believes will assist investors in<br>assessing the capital of the Company and its<br>ability to absorb potential losses. The Company<br>believes tangible common equity is an important<br>indication of its ability to grow organically and<br>through business combinations, as well as its<br>ability to pay dividends and to engage in various<br>capital management strategies. The Company<br>also calculates adjusted tangible common<br>equity to tangible assets ratios to exclude AOCI,<br>which is principally comprised of unrealized<br>losses on AFS securities, and to include the<br>impact of unrealized losses on HTM securities.<br>The Company believes that each of these ratios<br>enables investors to assess the Company's<br>capital levels and capital adequacy without the<br>effects of changes in AOCI, some of which are<br>uncertain and difficult to predict, or assuming<br>that the Company realized all previously<br>unrealized losses on HTM securities at the end of<br>the period, as applicable. | ||
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| 36<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>RISK-BASED CAPITAL RATIOS<br>(Dollars in thousands)<br>As of June 30, 2025<br>Atlantic Union<br>Bankshares<br>Atlantic Union<br>Bank<br>Risk-Based Capital Ratios<br>Net unrealized losses on HTM securities, net of tax $ (49,210) $ (49,210)<br>Accumulated other comprehensive loss (AOCI) $ (320,786) $ (320,848)<br>Common equity tier 1 capital $ 2,966,424 $ 3,776,076<br>Tier 1 capital $ 3,132,780 $ 3,776,076<br>Total capital $ 4,167,918 $ 4,086,340<br>Total risk-weighted assets $ 30,349,939 $ 30,265,121<br>Common equity tier 1 capital ratio 9.8% 12.5%<br>Common equity tier 1 capital ratio, incl AOCI and net unrealized losses on HTM securities (non-GAAP) 8.6% 11.3%<br>Tier 1 capital ratio 10.3% 12.5%<br>Tier 1 capital ratio, incl AOCI and net unrealized losses on HTM securities (non-GAAP) 9.1% 11.3%<br>Total capital ratio 13.7% 13.5%<br>Total capital ratio, incl AOCI and net unrealized losses on HTM securities (non-GAAP) 12.5% 12.3%<br>All regulatory capital ratios at June 30, 2025 are<br>estimates and subject to change pending the<br>Company’s filing of its FR Y-9C. In addition to<br>these regulatory capital ratios, the Company<br>adjusts certain regulatory capital ratios to<br>include the impacts of AOCI, which the<br>Company has elected to exclude from regulatory<br>capital ratios under applicable regulations, and<br>net unrealized losses on HTM securities,<br>assuming that those unrealized losses were<br>realized at the end of the period, as applicable.<br>The Company believes that each of these ratios<br>help investors to assess the Company's<br>regulatory capital levels and capital adequacy. | ||
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| 37<br>RECONCILIATION OF NON-GAAP DISCLOSURES<br>The Company believes net interest<br>income (FTE), total revenue (FTE),<br>and total adjusted revenue (FTE),<br>which are used in computing net<br>interest margin (FTE), efficiency ratio<br>(FTE) and adjusted operating<br>efficiency ratio (FTE), provide<br>valuable additional insight into the<br>net interest margin and the efficiency<br>ratio by adjusting for differences in<br>tax treatment of interest income<br>sources. The entire FTE adjustment<br>is attributable to interest income on<br>earning assets, which is used in<br>computing the yield on earning<br>assets. Interest expense and the<br>related cost of interest-bearing<br>liabilities and cost of funds ratios are<br>not affected by the FTE components.<br>NET INTEREST MARGIN<br>(Dollars in thousands)<br>For the three months ended<br>June 30, 2025 March 31, 2025<br>Net interest income (GAAP) $ 321,371 $ 184,164<br>FTE adjustment 4,362 3,757<br>Net interest income (FTE) (non-GAAP) $ 325,733 $ 187,921<br>Noninterest income (GAAP) 81,522 29,163<br>Total revenue (FTE) (non-GAAP) $ 407,255 $ 217,084<br>Average earning assets $ 34,121,715 $ 22,108,618<br>Net interest margin (GAAP) 3.78% 3.38%<br>Net interest margin (FTE) (non-GAAP) 3.83% 3.45% | ||
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