8-K - AUB - Equibles

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): October 20, 2022

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.)

1051 East Cary Street

Suite 1200

Richmond , Virginia **** 23219

(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	The NASDAQ Global Select Market
Depositary Shares, Each Representing a 1/400^th^ Interest in a Share of 6.875% Perpetual Non-Cumulative Preferred Stock, Series A	AUBAP	The NASDAQ Global Select Market

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 2.02 Results of Operations and Financial Condition.

On October 20, 2022, Atlantic Union Bankshares Corporation (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2022. A copy of the press release is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

Attached as Exhibit 99.2 and incorporated herein by reference is a presentation that the Company will use in connection with a webcast and conference call for analysts at 9:00 a.m. Eastern Time on Thursday, October 20, 2022. This presentation is also available under the Presentations link in the Investor Relations – News & Events section of the Company’s website at https://investors.atlanticunionbank.com.

The information disclosed in or incorporated by reference into this Item 2.02, including Exhibits 99.1 and 99.2, 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		Press release dated October 20, 2022 regarding third quarter 2022 results.
99.2		Atlantic Union Bankshares Corporation presentation.
104		Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document

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: October 20, 2022	By:	/s/ Robert M. Gorman
		Robert M. Gorman
		Executive Vice President and
		Chief Financial Officer

Exhibit 99.1

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

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER FINANCIAL RESULTS

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

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

“Operating under the mantra of soundness, profitability and growth – in that order of priority - Atlantic Union remains committed to generating sustainable, profitable growth and building long term value for our shareholders.”

NET INTEREST INCOME

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

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



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

ASSET QUALITY

Overview

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

Nonperforming Assets

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


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

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


	****	September 30,		****	June 30,		****	March 31,		****	December 31,		****	September 30,
		2022			2022			2022			2021			2021
Beginning Balance		$	29,070		$	29,032		$	31,100		$	35,472		$	36,399
Net customer payments			(3,725)			(2,472)			(4,132)			(5,068)			(4,719)
Additions			1,302			3,203			2,087			1,294			4,177
Charge-offs			(125)			(311)			(23)			(598)			(385)
Transfers to foreclosed property			(22)			(382)			—			—			—
Ending Balance		$	26,500		$	29,070		$	29,032		$	31,100		$	35,472

Past Due Loans

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

Allowance for Credit Losses

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

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

Net Charge-offs

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

Provision for Credit Losses

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

NONINTEREST INCOME

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

NONINTEREST EXPENSE

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

INCOME TAXES

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

BALANCE SHEET

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

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

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

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


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

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

During the third quarter of 2022, the Company declared and paid a quarterly dividend on the outstanding shares of Series A Preferred Stock of $171.88 per share (equivalent to $0.43 per outstanding depositary share), consistent with the second quarter of 2022 and the third quarter of 2021. During the third quarter of 2022, the Company also declared and paid cash dividends of $0.30 per common share, an increase of $0.02 or approximately 7.1% from the second quarter of 2022 and the third quarter of 2021.

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

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

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2022 EARNINGS RELEASE CONFERENCE CALL

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

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

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

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

https://register.vevent.com/register/BI0d0b7ad4bc21407885cc5e244e5d623f. To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

A replay of the webcast, and the accompanying slides, will be available on the Company’s website for 90 days at: https://investors.atlanticunionbank.com/.

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the periods ended September 30, 2022, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotes, statements regarding the Company’s outlook on future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, statements that include, projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, or otherwise that are not statements of

historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to the effects of or changes in:

●	market interest rates and the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolio;
●	inflation and its impacts on economic growth and customer and client behavior;
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●	general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;
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●	monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;
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●	the quality or composition of the Company’s loan or investment portfolios and changes therein;
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●	demand for loan products and financial services in the Company’s market areas;
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●	the Company’s ability to manage its growth or implement its growth strategy;
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●	the effectiveness of expense reduction plans;
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●	the introduction of new lines of business or new products and services;
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●	the Company’s ability to recruit and retain key employees;
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●	real estate values in the Company’s lending area;
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●	an insufficient ACL;
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●	changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;
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●	volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;
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●	the Company’s liquidity and capital positions;
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●	concentrations of loans secured by real estate, particularly commercial real estate;
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●	the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
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●	the Company’s ability to compete in the market for financial services and increased competition from fintech companies;
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●	technological risks and developments, and cyber threats, attacks, or events;
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●	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;
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●	the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
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●	the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;
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●	the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;
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●	performance by the Company’s counterparties or vendors;
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●	deposit flows;
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●	the availability of financing and the terms thereof;
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●	the level of prepayments on loans and mortgage-backed securities;
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●	legislative or regulatory changes and requirements;
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●	potential claims, damages, and fines related to litigation or government actions;
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●	the effects of changes in federal, state or local tax laws and regulations;
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●	any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and
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●	other factors, many of which are beyond the control of the Company.
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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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, all forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in the press release, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21
Results of Operations
Interest and dividend income		$	171,156		$	148,755		$	146,379		$	458,367		$	444,904
Interest expense		****	20,441			9,988			8,891		****	37,954			31,970
Net interest income		****	150,715			138,767			137,488		****	420,413			412,934
Provision for credit losses		****	6,412			3,559			(18,850)		****	12,771			(59,888)
Net interest income after provision for credit losses		****	144,303			135,208			156,338		****	407,642			472,822
Noninterest income		****	25,584			38,286			29,938		****	94,023			89,388
Noninterest expenses		****	99,923			98,768			95,343		****	304,012			299,251
Income before income taxes		****	69,964			74,726			90,933		****	197,653			262,959
Income tax expense		****	11,894			12,500			16,368		****	33,667			46,821
Net income			58,070			62,226			74,565			163,986			216,138
Dividends on preferred stock			2,967			2,967			2,967			8,901			8,901
Net income available to common shareholders		$	55,103		$	59,259		$	71,598		$	155,085		$	207,237

Interest earned on earning assets (FTE) ^(1)^		$	174,998		$	152,332		$	149,543		$	469,122		$	454,265
Net interest income (FTE) ^(1)^		****	154,557			142,344			140,652		****	431,168			422,295
Total revenue (FTE) ^(1)^			180,141			180,630			170,590			525,191			511,683
Pre-PPP total adjusted revenue (FTE) ^(1) (10)^			179,687			170,204			159,408			511,325			474,790
Pre-tax pre-provision adjusted operating earnings ^(8)^			76,376			69,205			72,074			206,852			218,581
Pre-PPP pre-tax pre-provision adjusted operating earnings ^(8) (10)^			75,922			67,859			60,901			202,066			181,775

Key Ratios
Earnings per common share, diluted		$	0.74		$	0.79		$	0.94		$	2.07		$	2.66
Return on average assets (ROA)		****	1.15	%		1.27	%		1.47	%	****	1.10	%		1.45	%
Return on average equity (ROE)		****	9.45	%		10.21	%		10.88	%	****	8.72	%		10.59	%
Return on average tangible common equity (ROTCE) ^(2) (3)^		****	17.21	%		18.93	%		18.79	%	****	15.69	%		18.31	%
Efficiency ratio		****	56.68	%		55.78	%		56.95	%	****	59.10	%		59.57	%
Efficiency ratio (FTE) ^(1)^			55.47	%		54.68	%		55.89	%	****	57.89	%		58.48	%
Net interest margin		****	3.34	%		3.15	%		3.05	%	****	3.16	%		3.10	%
Net interest margin (FTE) ^(1)^		****	3.43	%		3.24	%		3.12	%	****	3.24	%		3.17	%
Yields on earning assets (FTE) ^(1)^		****	3.88	%		3.46	%		3.31	%	****	3.52	%		3.41	%
Cost of interest-bearing liabilities		****	0.68	%		0.35	%		0.30	%	****	0.43	%		0.36	%
Cost of deposits		****	0.37	%		0.15	%		0.14	%	****	0.21	%		0.18	%
Cost of funds		****	0.45	%		0.22	%		0.19	%	****	0.28	%		0.24	%

Operating Measures^(4)^
Adjusted operating earnings		$	58,070		$	54,244		$	74,558		$	160,355		$	228,391
Adjusted operating earnings available to common shareholders			55,103			51,277			71,591			151,454			219,490
Adjusted operating earnings per common share, diluted		$	0.74		$	0.69		$	0.94		$	2.02		$	2.81
Adjusted operating ROA		****	1.15	%		1.10	%		1.47	%	****	1.08	%		1.54	%
Adjusted operating ROE		****	9.45	%		8.90	%		10.88	%		8.53	%		11.19	%
Adjusted operating ROTCE ^(2) (3)^		****	17.21	%		16.47	%		18.79	%	****	15.34	%		19.35	%
Adjusted operating efficiency ratio (FTE) ^(1)(7)^		****	54.09	%		55.88	%		53.91	%	****	56.20	%		53.36	%

Per Share Data
Earnings per common share, basic		$	0.74		$	0.79		$	0.94		$	2.07		$	2.66
Earnings per common share, diluted		****	0.74			0.79			0.94		****	2.07			2.66
Cash dividends paid per common share		****	0.30			0.28			0.28		****	0.86			0.81
Market value per share		****	30.38			33.92			36.85		****	30.38			36.85
Book value per common share		****	28.46			29.95			33.60		****	28.46			33.60
Tangible book value per common share ^(2)^		****	15.61			17.07			20.55		****	15.61			20.55
Price to earnings ratio, diluted		****	10.37			10.68			9.88		****	10.99			10.36
Price to book value per common share ratio		****	1.07			1.13			1.10		****	1.07			1.10
Price to tangible book value per common share ratio ^(2)^		****	1.95			1.99			1.79		****	1.95			1.79
Weighted average common shares outstanding, basic		****	74,703,699			74,847,899			76,309,355		****	75,029,000			77,988,151
Weighted average common shares outstanding, diluted		****	74,705,054			74,849,871			76,322,736		****	75,034,084			78,007,543
Common shares outstanding at end of period		****	74,703,774			74,688,314			75,645,031		****	74,703,774			75,645,031

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21		****
Capital Ratios
Common equity Tier 1 capital ratio ^(5)^			9.96	%		9.96	%		10.37	%		9.96	%		10.37	%
Tier 1 capital ratio ^(5)^			10.98	%		11.00	%		11.49	%		10.98	%		11.49	%
Total capital ratio ^(5)^			13.80	%		13.86	%		13.78	%		13.80	%		13.78	%
Leverage ratio (Tier 1 capital to average assets) ^(5)^			9.32	%		9.26	%		8.97	%		9.32	%		8.97	%
Common equity to total assets			10.60	%		11.32	%		12.68	%		10.60	%		12.68	%
Tangible common equity to tangible assets ^(2)^			6.11	%		6.78	%		8.16	%		6.11	%		8.16	%

Financial Condition			****	****								****	****
Assets		$	19,950,231		$	19,661,799		$	19,935,657		$	19,950,231		$	19,935,657
Loans held for investment (net of deferred fees and costs)		****	13,918,720			13,655,408			13,139,586		****	13,918,720			13,139,586
Securities		****	3,640,722			3,820,078			3,807,723		****	3,640,722			3,807,723
Earning Assets		****	17,790,324			17,578,979			17,795,784		****	17,790,324			17,795,784
Goodwill		****	925,211			925,211			935,560		****	925,211			935,560
Amortizable intangibles, net		****	29,142			31,621			46,537		****	29,142			46,537
Deposits		****	16,546,216			16,128,635			16,622,160		****	16,546,216			16,622,160
Borrowings		****	669,558			797,948			385,765		****	669,558			385,765
Stockholders' equity		****	2,281,150			2,391,476			2,694,439		****	2,281,150			2,694,439
Tangible common equity ^(2)^		****	1,160,440			1,268,287			1,545,985		****	1,160,440			1,545,985

Loans held for investment, net of deferred fees and costs		****	****								****	****
Construction and land development		$	1,068,201		$	988,379		$	877,351		$	1,068,201		$	877,351
Commercial real estate - owner occupied		****	1,953,872			1,965,702			2,027,299		****	1,953,872			2,027,299
Commercial real estate - non-owner occupied		****	3,900,325			3,860,819			3,730,720		****	3,900,325			3,730,720
Multifamily real estate		****	774,970			762,502			776,287		****	774,970			776,287
Commercial & Industrial		****	2,709,047			2,595,891			2,580,190		****	2,709,047			2,580,190
Residential 1-4 Family - Commercial		****	542,612			553,771			624,347		****	542,612			624,347
Residential 1-4 Family - Consumer		****	891,353			865,174			822,971		****	891,353			822,971
Residential 1-4 Family - Revolving		****	588,452			583,073			557,803		****	588,452			557,803
Auto		****	561,277			525,301			425,436		****	561,277			425,436
Consumer		****	172,776			180,045			182,039		****	172,776			182,039
Other Commercial		****	755,835			774,751			535,143		****	755,835			535,143
Total loans held for investment		$	13,918,720		$	13,655,408		$	13,139,586		$	13,918,720		$	13,139,586

Deposits		****	****								****	****
Interest checking accounts		$	4,354,351		$	3,943,303		$	4,016,505		$	4,354,351		$	4,016,505
Money market accounts		****	3,962,473			3,956,050			4,152,986		****	3,962,473			4,152,986
Savings accounts		****	1,173,566			1,165,577			1,079,735		****	1,173,566			1,079,735
Time deposits of $250,000 and over		****	415,984			360,158			546,199		****	415,984			546,199
Other time deposits			1,348,904			1,342,009			1,497,897			1,348,904			1,497,897
Time deposits		****	1,764,888			1,702,167			2,044,096		****	1,764,888			2,044,096
Total interest-bearing deposits		$	11,255,278		$	10,767,097		$	11,293,322		$	11,255,278		$	11,293,322
Demand deposits		****	5,290,938			5,361,538			5,328,838		****	5,290,938			5,328,838
Total deposits		$	16,546,216		$	16,128,635		$	16,622,160		$	16,546,216		$	16,622,160

Averages		****	****								****	****
Assets		$	19,980,500		$	19,719,402		$	20,056,570		$	19,873,644		$	19,890,155
Loans held for investment (net of deferred fees and costs)		****	13,733,447			13,525,529			13,451,674		****	13,521,507			13,827,002
Loans held for sale		****	15,063			20,634			30,035		****	16,779			43,162
Securities		****	3,818,607			3,930,912			3,679,977		****	3,981,308			3,438,285
Earning assets		****	17,879,222			17,646,470			17,910,389		****	17,803,550			17,824,607
Deposits		****	16,488,224			16,191,056			16,718,144		****	16,397,790			16,433,470
Time deposits		****	1,745,224			1,667,378			2,109,131		****	1,726,341			2,288,530
Interest-bearing deposits		****	11,163,945			10,824,465			11,512,825		****	11,091,115			11,483,654
Borrowings		****	703,272			765,886			395,984		****	660,995			456,184
Interest-bearing liabilities		****	11,867,217			11,590,351			11,908,809		****	11,752,110			11,939,838
Stockholders' equity		****	2,436,999			2,445,045			2,718,032		****	2,513,522			2,728,605
Tangible common equity ^(2)^		****	1,315,085			1,304,536			1,567,937		****	1,378,240			1,574,961

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21		****
Asset Quality
Allowance for Credit Losses (ACL)
Beginning balance, Allowance for loan and lease losses (ALLL)		$	104,184		$	102,591		$	118,261		$	99,787		$	160,540
Add: Recoveries		****	1,214			1,018			2,153		****	3,745			6,498
Less: Charge-offs		****	1,801			1,957			2,266		****	5,267			7,852
Add: Provision for loan losses		****	4,412			2,532			(16,350)		****	9,744			(57,388)
Ending balance, ALLL		$	108,009		$	104,184		$	101,798		$	108,009		$	101,798

Beginning balance, Reserve for unfunded commitment (RUC)		$	9,000		$	8,000		$	10,000		$	8,000		$	10,000
Add: Provision for unfunded commitments			2,000			1,000			(2,500)			3,000			(2,500)
Ending balance, RUC		$	11,000		$	9,000		$	7,500		$	11,000		$	7,500
Total ACL		$	119,009		$	113,184		$	109,298		$	119,009		$	109,298

ACL / total outstanding loans			0.86	%		0.83	%		0.83	%		0.86	%		0.83	%
ACL / total adjusted loans^(9)^			0.86	%		0.83	%		0.86	%		0.86	%		0.86	%
ALLL / total outstanding loans		****	0.78	%		0.76	%		0.77	%	****	0.78	%		0.77	%
ALLL / total adjusted loans^(9)^			0.78	%		0.76	%		0.80	%		0.78	%		0.80	%
Net charge-offs / total average loans		****	0.02	%		0.03	%		0.00	%	****	0.02	%		0.01	%
Net charge-offs / total adjusted average loans^(9)^			0.02	%		0.03	%		0.00	%		0.02	%		0.01	%
Provision for loan losses/ total average loans		****	0.13	%		0.08	%		(0.48)	%	****	0.10	%		(0.55)	%
Provision for loan losses/ total adjusted average loans^(9)^			0.13	%		0.08	%		(0.51)	%		0.10	%		(0.60)	%

Nonperforming Assets ^(6)^											****	****
Construction and land development		$	421		$	581		$	2,710		$	421		$	2,710
Commercial real estate - owner occupied		****	4,883			4,996			7,786		****	4,883			7,786
Commercial real estate - non-owner occupied		****	1,923			3,301			4,174		****	1,923			4,174
Multifamily real estate			—			—			113			—			113
Commercial & Industrial		****	2,289			2,728			2,062		****	2,289			2,062
Residential 1-4 Family - Commercial		****	1,962			2,031			2,445		****	1,962			2,445
Residential 1-4 Family - Consumer		****	11,121			12,084			12,150		****	11,121			12,150
Residential 1-4 Family - Revolving		****	3,583			3,069			3,723		****	3,583			3,723
Auto		****	318			279			255		****	318			255
Consumer			—			1			54			—			54
Nonaccrual loans		$	26,500		$	29,070		$	35,472		$	26,500		$	35,472
Foreclosed property		****	2,087			2,065			1,696		****	2,087			1,696
Total nonperforming assets (NPAs)		$	28,587		$	31,135		$	37,168		$	28,587		$	37,168
Construction and land development		$	115		$	1		$	304		$	115		$	304
Commercial real estate - owner occupied		****	3,517			792			1,886		****	3,517			1,886
Commercial real estate - non-owner occupied			621			642			1,175			621			1,175
Commercial & Industrial		****	526			322			1,256		****	526			1,256
Residential 1-4 Family - Commercial		****	308			184			1,091		****	308			1,091
Residential 1-4 Family - Consumer		****	680			1,112			2,462		****	680			2,462
Residential 1-4 Family - Revolving		****	1,255			997			2,474		****	1,255			2,474
Auto		****	148			134			209		****	148			209
Consumer		****	86			79			173		****	86			173
Other Commercial			95			329			—			95			—
Loans ≥ 90 days and still accruing		$	7,351		$	4,592		$	11,030		$	7,351		$	11,030
Total NPAs and loans ≥ 90 days		$	35,938		$	35,727		$	48,198		$	35,938		$	48,198
NPAs / total outstanding loans			0.21	%		0.23	%		0.28	%	****	0.21	%		0.28	%
NPAs / total adjusted loans^(9)^			0.21	%		0.23	%		0.29	%		0.21	%		0.29	%
NPAs / total assets		****	0.14	%		0.16	%		0.19	%	****	0.14	%		0.19	%
ALLL / nonaccrual loans		****	407.58	%		358.39	%		286.98	%	****	407.58	%		286.98	%
ALLL/ nonperforming assets		****	377.83	%		334.62	%		273.89	%	****	377.83	%		273.89	%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21		****
Past Due Detail ^(6)^
Construction and land development		$	120		$	645		$	744		$	120		$	744
Commercial real estate - owner occupied		****	7,337			1,374			735		****	7,337			735
Commercial real estate - non-owner occupied		****	—			511			1,302		****	—			1,302
Commercial & Industrial		****	796			2,581			11,089		****	796			11,089
Residential 1-4 Family - Commercial		****	1,410			1,944			807		****	1,410			807
Residential 1-4 Family - Consumer		****	1,123			594			406		****	1,123			406
Residential 1-4 Family - Revolving		****	1,115			1,368			1,092		****	1,115			1,092
Auto		****	1,876			1,841			1,548		****	1,876			1,548
Consumer			409			361			790			409			790
Other Commercial			—			11			631			—			631
Loans 30-59 days past due		$	14,186		$	11,230		$	19,144		$	14,186		$	19,144
Construction and land development		$	107		$	—		$	58		$	107		$	58
Commercial real estate - owner occupied		****	763			807			61		****	763			61
Commercial real estate - non-owner occupied		****	457			—			570		****	457			570
Commercial & Industrial		****	3,128			546			3,328		****	3,128			3,328
Residential 1-4 Family - Commercial		****	97			474			698		****	97			698
Residential 1-4 Family - Consumer		****	1,449			1,646			2,188		****	1,449			2,188
Residential 1-4 Family - Revolving		****	1,081			731			587		****	1,081			587
Auto		****	257			213			202		****	257			202
Consumer			101			210			317			101			317
Other Commercial			—			—			600			—			600
Loans 60-89 days past due		$	7,440		$	4,627		$	8,609		$	7,440		$	8,609

Past Due and still accruing		$	28,977		$	20,449		$	38,783		$	28,977		$	38,783
Past Due and still accruing / total loans			0.21	%		0.15	%		0.30	%		0.21	%		0.30	%

Troubled Debt Restructurings		****	****								****	****
Performing		$	10,333		$	10,662		$	11,335		$	10,333		$	11,335
Nonperforming		****	5,298			7,298			7,365		****	5,298			7,365
Total troubled debt restructurings		$	15,631		$	17,960		$	18,700		$	15,631		$	18,700

Alternative Performance Measures (non-GAAP)		****	****								****	****
Net interest income (FTE) ^(1)^		****	****								****	****
Net interest income (GAAP)		$	150,715		$	138,767		$	137,488		$	420,413		$	412,934
FTE adjustment		****	3,842			3,577			3,164		****	10,755			9,361
Net interest income (FTE) (non-GAAP)^^		$	154,557		$	142,344		$	140,652		$	431,168		$	422,295
Noninterest income (GAAP)			25,584			38,286			29,938			94,023			89,388
Total revenue (FTE) (non-GAAP)		$	180,141		$	180,630		$	170,590		$	525,191		$	511,683

Average earning assets		$	17,879,222		$	17,646,470		$	17,910,389		$	17,803,550		$	17,824,607
Net interest margin		****	3.34	%		3.15	%		3.05	%	****	3.16	%		3.10	%
Net interest margin (FTE)		****	3.43	%		3.24	%		3.12	%	****	3.24	%		3.17	%

Tangible Assets ^(2)^		****	****								****	****
Ending assets (GAAP)		$	19,950,231		$	19,661,799		$	19,935,657		$	19,950,231		$	19,935,657
Less: Ending goodwill		****	925,211			925,211			935,560		****	925,211			935,560
Less: Ending amortizable intangibles		****	29,142			31,621			46,537		****	29,142			46,537
Ending tangible assets (non-GAAP)		$	18,995,878		$	18,704,967		$	18,953,560		$	18,995,878		$	18,953,560

Tangible Common Equity ^(2)^		****	****								****	****
Ending equity (GAAP)		$	2,281,150		$	2,391,476		$	2,694,439		$	2,281,150		$	2,694,439
Less: Ending goodwill		****	925,211			925,211			935,560		****	925,211			935,560
Less: Ending amortizable intangibles		****	29,142			31,621			46,537		****	29,142			46,537
Less: Perpetual preferred stock			166,357			166,357			166,357			166,357			166,357
Ending tangible common equity (non-GAAP)		$	1,160,440		$	1,268,287		$	1,545,985		$	1,160,440		$	1,545,985

Average equity (GAAP)		$	2,436,999		$	2,445,045		$	2,718,032		$	2,513,522		$	2,728,605
Less: Average goodwill		****	925,211			935,446			935,560		****	932,035			935,560
Less: Average amortizable intangibles		****	30,347			38,707			48,179		****	36,891			51,728
Less: Average perpetual preferred stock			166,356			166,356			166,356			166,356			166,356
Average tangible common equity (non-GAAP)		$	1,315,085		$	1,304,536		$	1,567,937		$	1,378,240		$	1,574,961

ROTCE **** ^(2)(3)^
Net income available to common shareholders (GAAP)		$	55,103		$	59,259		$	71,598		$	155,085		$	207,237
Plus: Amortization of intangibles, tax effected			1,959			2,303			2,671			6,663			8,436
Net income available to common shareholders before amortization of intangibles (non-GAAP)		$	57,062		$	61,562		$	74,269		$	161,748		$	215,673

Return on average tangible common equity (ROTCE)			17.21	%		18.93	%		18.79	%		15.69	%		18.31	%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21		****
Operating Measures^(4)^
Net income (GAAP)		$	58,070		$	62,226		$	74,565		$	163,986		$	216,138
Plus: Net loss related to balance sheet repositioning, net of tax			—			—			—			—			11,609
Less: (Loss) gain on sale of securities, net of tax			—			(2)			7			(2)			69
Less: Gain on sale of DHFB, net of tax			—			7,984			—			7,984			—
Plus: Branch closing and facility consolidation costs, net of tax			—			—			—			4,351			713
Adjusted operating earnings (non-GAAP)			58,070			54,244			74,558			160,355			228,391
Less: Dividends on preferred stock			2,967			2,967			2,967			8,901			8,901
Adjusted operating earnings available to common shareholders (non-GAAP)		$	55,103		$	51,277		$	71,591		$	151,454		$	219,490

Noninterest expense (GAAP)		$	99,923		$	98,768		$	95,343		$	304,012		$	299,251
Less: Amortization of intangible assets		****	2,480			2,915			3,381		****	8,434			10,679
Less: Losses related to balance sheet repositioning			—			—			—			—			14,695
Less: Branch closing and facility consolidation costs			—			—			—			5,508			902
Adjusted operating noninterest expense (non-GAAP)		$	97,443		$	95,853		$	91,962		$	290,070		$	272,975

Noninterest income (GAAP)		$	25,584		$	38,286		$	29,938		$	94,023		$	89,388
Less: (Loss) gain on sale of securities			—			(2)			9			(2)			87
Less: Gain on sale of DHFB			—			9,082			—			9,082			—
Adjusted operating noninterest income (non-GAAP)		$	25,584		$	29,206		$	29,929		$	84,943		$	89,301

Net interest income (FTE) (non-GAAP)^(1)^		$	154,557		$	142,344		$	140,652		$	431,168		$	422,295
Adjusted operating noninterest income (non-GAAP)		****	25,584			29,206			29,929		****	84,943			89,301
Total adjusted revenue (FTE) (non-GAAP) ^(1)^			180,141			171,550			170,581			516,111			511,596
Less: PPP accretion interest income and fees			454			1,346			11,173			4,786			36,806
Pre-PPP total adjusted revenue (FTE) (non-GAAP) ^(1) (10)^		$	179,687		$	170,204		$	159,408		$	511,325		$	474,790

Efficiency ratio		****	56.68	%		55.78	%		56.95	%	****	59.10	%		59.57	%
Efficiency ratio (FTE) ^(1)^			55.47	%		54.68	%		55.89	%	****	57.89	%		58.48	%
Adjusted operating efficiency ratio (FTE) ^(1)(7)^		****	54.09	%		55.88	%		53.91	%	****	56.20	%		53.36	%

Operating ROA & ROE ^(4)^
Adjusted operating earnings (non-GAAP)		$	58,070		$	54,244		$	74,558		$	160,355		$	228,391

Average assets (GAAP)		$	19,980,500		$	19,719,402		$	20,056,570		$	19,873,644		$	19,890,155
Return on average assets (ROA) (GAAP)			1.15	%		1.27	%		1.47	%		1.10	%		1.45	%
Adjusted operating return on average assets (ROA) (non-GAAP)			1.15	%		1.10	%		1.47	%		1.08	%		1.54	%

Average equity (GAAP)		$	2,436,999		$	2,445,045		$	2,718,032		$	2,513,522		$	2,728,605
Return on average equity (ROE) (GAAP)			9.45	%		10.21	%		10.88	%		8.72	%		10.59	%
Adjusted operating return on average equity (ROE) (non-GAAP)			9.45	%		8.90	%		10.88	%		8.53	%		11.19	%

Operating ROTCE ^(2)(3)(4)^		****	****								****	****
Adjusted operating earnings available to common shareholders (non-GAAP)		$	55,103		$	51,277		$	71,591		$	151,454		$	219,490
Plus: Amortization of intangibles, tax effected		****	1,959			2,303			2,671		****	6,663			8,436
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)		$	57,062		$	53,580		$	74,262		$	158,117		$	227,926

Average tangible common equity (non-GAAP)		$	1,315,085		$	1,304,536		$	1,567,937		$	1,378,240		$	1,574,961
Adjusted operating return on average tangible common equity (non-GAAP)		****	17.21	%		16.47	%		18.79	%	****	15.34	%		19.35	%

Pre-tax pre-provision adjusted operating earnings ^(8)^
Net income (GAAP)		$	58,070		$	62,226		$	74,565		$	163,986		$	216,138
Plus: Provision for credit losses			6,412			3,559			(18,850)			12,771			(59,888)
Plus: Income tax expense			11,894			12,500			16,368			33,667			46,821
Plus: Net loss related to balance sheet repositioning			—			—			—			—			14,695
Less: (Loss) gain on sale of securities			—			(2)			9			(2)			87
Less: Gain on sale of DHFB			—			9,082			—			9,082			—
Plus: Branch closing and facility consolidation costs			—			—			—			5,508			902
Pre-tax pre-provision adjusted operating earnings (non-GAAP)		$	76,376		$	69,205		$	72,074		$	206,852		$	218,581
Less: Dividends on preferred stock			2,967			2,967			2,967			8,901			8,901
Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP)		$	73,409		$	66,238		$	69,107		$	197,951		$	209,680

Pre-tax pre-provision adjusted operating earnings (non-GAAP)		$	76,376		$	69,205		$	72,074		$	206,852		$	218,581
Less: PPP accretion interest income and fees			454			1,346			11,173			4,786			36,806
Pre-PPP pre-tax pre-provision adjusted operating earnings (non-GAAP) ^(10)^		$	75,922		$	67,859		$	60,901		$	202,066		$	181,775

Weighted average common shares outstanding, diluted			74,705,054			74,849,871			76,322,736			75,034,084			78,007,543
Pre-tax pre-provision earnings per common share, diluted		$	0.98		$	0.88		$	0.91		$	2.64		$	2.69

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS (UNAUDITED)

(Dollars in thousands, except share data)


		As of & For Three Months Ended									As of & For Nine Months Ended
	****	09/30/22		****	06/30/22		****	09/30/21		****	09/30/22			09/30/21
Adjusted Loans ^(9)^
Loans held for investment (net of deferred fees and costs) (GAAP)		$	13,918,720		$	13,655,408		$	13,139,586		$	13,918,720		$	13,139,586
Less: PPP adjustments (net of deferred fees and costs)			12,146			21,749			466,609			12,146			466,609
Total adjusted loans (non-GAAP)		$	13,906,574		$	13,633,659		$	12,672,977		$	13,906,574		$	12,672,977

Average loans held for investment (net of deferred fees and costs) (GAAP)		$	13,733,447		$	13,525,529		$	13,451,674		$	13,521,507		$	13,827,002
Less: Average PPP adjustments (net of deferred fees and costs)			14,280			43,391			687,259			53,246			1,059,130
Total adjusted average loans (non-GAAP)		$	13,719,167		$	13,482,138		$	12,764,415		$	13,468,261		$	12,767,872

Mortgage Origination Held for Sale Volume ^^
Refinance Volume		$	5,637		$	14,916		$	49,154		$	53,753		$	241,401
Purchase Volume		****	66,360			84,551			93,819		****	209,206			250,523
Total Mortgage loan originations held for sale		$	71,997		$	99,467		$	142,973		$	262,959		$	491,924
% of originations held for sale that are refinances		****	7.8	%		15.0	%		34.4	%	****	20.4	%		49.1	%

Wealth		****	****								****	****
Assets under management ("AUM")		$	4,065,059		$	4,415,537		$	6,377,518		$	4,065,059		$	6,377,518

Other Data		****	****								****	****
End of period full-time employees		****	1,890			1,856			1,918		****	1,890			1,918
Number of full-service branches		****	114			114			130		****	114			130
Number of automatic transaction machines ("ATMs")		****	131			131			149		****	131			149

(1)	These are non-GAAP financial measures. Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.
(2)	These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses.
---	---
(3)	These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.
---	---
(4)
---
(4)<br><br>These are non-GAAP financial measures. Adjusted operating measures exclude the losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance associated with branch closing and corporate expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
(5)	All ratios at September 30, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.
---	---
(6)	These balances reflect the impact of the CARES Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans.
---	---
(7)	The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gain on the sale of DHFB, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), as well as branch closing and facility consolidation costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
---	---
(8)	These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gain on the sale of DHFB, as well as branch closing and facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced branch closing and corporate expense reduction initiatives.
---	---
(9)	These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic growth. The Company also believes that the related non-GAAP financial measures of past due loans still accruing interest as a percentage of total loans held for investment (net of deferred fees and costs), excluding PPP, are useful to investors as loans originated under the PPP carry a Small Business Administration (“SBA”) guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.
---	---
(10)	These are non-GAAP financial measures. The Company believes excluding PPP accretion interest income and fees from operating earnings is useful to investors as it provides more clarity on the Company’s non-PPP related income.
---	---

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)


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

Common shares outstanding		74,703,774		75,663,648		75,645,031
Common shares authorized		200,000,000		200,000,000		200,000,000
Preferred shares outstanding		17,250		17,250		17,250
Preferred shares authorized		500,000		500,000		500,000

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands, except share data)


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

Basic earnings per common share	$	0.74	$	0.79	$	0.94	$	2.07	$	2.66
Diluted earnings per common share	$	0.74	$	0.79	$	0.94	$	2.07	$	2.66

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

(Dollars in thousands)


	For the Quarter Ended
	September 30, 2022								June 30, 2022
	Average Balance		****	Interest Income / Expense ^(1)^		****	Yield / Rate^(1)(2)^	****	Average Balance		****	Interest Income / Expense ^(1)^		****	Yield / Rate^(1)(2)^
Assets:
Securities:
Taxable	$	2,193,279		$	14,750		2.67%		$	2,322,024		$	14,695		2.54%
Tax-exempt		1,625,328			13,661		3.33%			1,608,888			13,465		3.36%
Total securities		3,818,607			28,411		2.95%			3,930,912			28,160		2.87%
Loans, net ^(3)^		13,733,447			145,433		4.20%			13,525,529			123,764		3.67%
Other earning assets		327,168			1,154		1.40%			190,029			408		0.86%
Total earning assets	$	17,879,222		$	174,998		3.88%		$	17,646,470		$	152,332		3.46%
Allowance for loan and lease losses		(104,746)								(103,211)
Total non-earning assets		2,206,024								2,176,143
Total assets	$	19,980,500							$	19,719,402

Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	8,247,650		$	11,342		0.55%		$	7,987,888		$	3,082		0.15%
Regular savings		1,171,071			64		0.02%			1,169,199			55		0.02%
Time deposits		1,745,224			3,980		0.90%			1,667,378			2,960		0.71%
Total interest-bearing deposits		11,163,945			15,386		0.55%			10,824,465			6,097		0.23%
Other borrowings		703,272			5,055		2.85%			765,886			3,891		2.04%
Total interest-bearing liabilities	$	11,867,217		$	20,441		0.68%		$	11,590,351		$	9,988		0.35%

Noninterest-bearing liabilities:
Demand deposits		5,324,279								5,366,591
Other liabilities		352,005								317,415
Total liabilities	$	17,543,501							$	17,274,357
Stockholders' equity		2,436,999								2,445,045
Total liabilities and stockholders' equity	$	19,980,500							$	19,719,402
Net interest income				$	154,557							$	142,344

Interest rate spread							3.20%								3.11%
Cost of funds							0.45%								0.22%
Net interest margin							3.43%								3.24%

(1)	Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.
(2)	Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.
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(3)	Nonaccrual loans are included in average loans outstanding.
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Exhibit 99.2

3<br>rd<br>Quarter<br>FY2022 Earnings<br>Presentation<br>Nasdaq: AUB<br>October 20,<br>2022
2<br>Forward Looking Statements<br>Certain statements in this presentation may constitute “forward<br>-<br>looking statements” within the meaning of the Private Securities<br>Litigation Reform Act of 1995. Forward<br>-<br>looking statements are statements that include, without limitation, statements on slides<br>entitled “Financial Outlook”<br>and<br>“Top<br>-<br>Tier Financial Targets”, statements regarding the<br>Company’s strategic priorities, outlook<br>on future economic conditions and the impacts of<br>current economic uncertainties,<br>and statements that include, projections,<br>predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such<br>fo<br>rward<br>-<br>looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and<br>unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual resul<br>ts,<br>performance, achievements, or trends to be materially different from those expressed or implied by such forward<br>-<br>looking<br>statements. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “<br>bel<br>ieve,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of<br>sim<br>ilar<br>meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although t<br>he<br>Company believes that its expectations with respect to forward<br>-<br>looking statements are based upon reasonable<br>assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual<br>fu<br>ture results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected<br>future results, performance, achievements or trends expressed or implied by such forward<br>-<br>looking statements. Actual future resul<br>ts, performance, achievements or trends may differ materially from historical results or those anticipated depending on a<br>variety of factors, including, but not limited to the effects of or changes<br>in:<br>• market<br>interest rates and the impacts on macroeconomic conditions, customer and client behavior, the Company’s funding<br>costs and the Company’s loan and securities portfolio;<br>• inflation<br>and its impacts on economic growth and customer and client behavior;<br>• general<br>economic and financial market conditions, in the United States generally and particularly in the markets in which<br>the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an<br>increase in unemployment levels and slowdowns in economic growth;<br>• monetary<br>and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the<br>Federal Reserve;<br>• the<br>quality or composition of the loan or investment portfolios and changes therein;<br>• demand<br>for loan products and financial services in the Company’s market area;<br>• the<br>Company’s ability to manage its growth or implement its growth strategy;<br>• the<br>effectiveness of expense reduction plans;<br>• the<br>introduction of new lines of business or new products and services;<br>• the<br>Company’s ability to recruit and retain key employees;<br>• real<br>estate values in the Bank’s lending area;<br>• an<br>insufficient ACL;<br>• changes<br>in accounting<br>principles standards, rules and interpretations and the related impact on the Company’s financial<br>statements;<br>•<br>volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out<br>of the Covid<br>-<br>19 pandemic, inflation, changing interest rates or other factors;<br>• the<br>Company’s liquidity and capital positions;<br>• concentrations<br>of loans secured by real estate, particularly commercial real estate;<br>• the<br>effectiveness of the Company’s credit processes and management of the Company’s credit risk;<br>• the<br>Company’s ability to compete in the market for financial services and increased competition from<br>fintech<br>companies;<br>• technological<br>risks and developments, and cyber threats, attacks, or events;<br>• the<br>potential adverse effects of unusual and infrequently occurring events, such as weather<br>-<br>related disasters, terrorist<br>acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as<br>COVID<br>-<br>19), and of governmental and societal responses thereto; these potential adverse effects may include, without<br>limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the val<br>ue<br>of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains<br>and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or<br>capital positions, on risks posed by reliance on third<br>-<br>party service providers, on other aspects of the Company's business<br>operations and on financial markets and economic growth;<br>• the<br>effect of steps the Company takes in response to the COVID<br>-<br>19 pandemic, the severity and duration of the pandemic,<br>the uncertainty regarding new variants of COVID<br>-<br>19 that have emerged, the speed and efficacy of vaccine and treatment<br>developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic<br>subsides and the heightened impact it has on many of the risks described herein;<br>• the<br>discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational,<br>legal, and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference<br>rates;<br>• performance<br>by the Company’s counterparties or vendors;<br>• deposit<br>flows;<br>• the<br>availability of financing and the terms thereof;<br>• the<br>level of prepayments on loans and mortgage<br>-<br>backed securities;<br>• legislative<br>or regulatory changes and requirements;<br>• potential<br>claims, damages, and fines related to litigation or government actions;<br>• the<br>effects of changes in federal, state or local tax laws and regulations;<br>• changes<br>to applicable accounting principles and guidelines; and<br>• other<br>factors, many of which are beyond the control of the Company.<br>Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations<br>” s<br>ections of the Company’s Annual Report on Form 10<br>-<br>K for the year ended December 31, 2021 and related disclosures in<br>other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s<br>web<br>site at www.sec.gov. All risk factors and uncertainties described herein should be considered in evaluating forward<br>-<br>looking<br>statements, all forward<br>-<br>looking statements made in this presentation are expressly qualified by the cautionary statements contai<br>ned or referred to herein. Readers are cautioned not to rely too heavily on the forward<br>-<br>looking statements in this presentation,<br>and undue reliance should not be placed on such forward<br>-<br>looking statements. The actual results or developments anticipated may<br>not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the<br>Company or its businesses or operations. Forward<br>-<br>looking statements speak only as of the date they are made. The Company does no<br>t intend or assume any obligation to update, revise or clarify any forward<br>-<br>looking statements that may be made from<br>time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.
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3<br>Additional Information<br>Non<br>-<br>GAAP Financial Measures<br>This presentation contains certain financial information determined by methods other than in<br>accordance with generally accepted accounting principles in the United States (“GAAP”).<br>These non<br>-<br>GAAP financial measures are a supplement to GAAP, which is used to prepare<br>the Company’s financial statements, and should not be considered in isolation or as a<br>substitute for comparable measures calculated in accordance with GAAP. In addition, the<br>Company’s non<br>-<br>GAAP financial measures may not be comparable to non<br>-<br>GAAP financial<br>measures of other companies. The Company uses the non<br>-<br>GAAP financial measures<br>discussed herein in its analysis of the Company’s performance. The Company’s<br>management believes that these non<br>-<br>GAAP financial measures provide additional<br>understanding of ongoing operations, enhance comparability of results of operations with<br>prior periods and show the effects of significant gains and charges in the periods presented<br>without the impact of items or events that may obscure trends in the Company’s<br>underlying<br>performance.<br>Please see “Reconciliation of Non<br>-<br>GAAP Disclosures” at the end of this presentation for a<br>reconciliation to the nearest GAAP financial measure.<br>No<br>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 the<br>requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of<br>an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would<br>be unlawful.<br>About Atlantic Union Bankshares Corporation<br>Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq:<br>AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has<br>114<br>branches<br>and approximately<br>130<br>ATMs located throughout Virginia, and in portions of Maryland and<br>North Carolina. Certain non<br>-<br>bank financial services affiliates of Atlantic Union Bank include:<br>Atlantic Union Equipment Finance, Inc., which provides equipment financing<br>;<br>Atlantic Union<br>Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group,<br>LLC, which offers various lines of insurance products<br>..
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4<br>Largest Regional Banking Company Headquartered in Virginia<br>Our<br>Company<br>Soundness	Profitability	Growth<br>Data as of 9<br>/30/2022<br>, market capitalization as of<br>10/18/2022<br>1) Regional bank defined as having less than $100 billion in assets; rank determined by asset size;<br>data per S&P Global Market Intelligence<br>Highlights ($bn)<br>•<br>Statewide Virginia footprint<br>of 109<br>branches in all major markets<br>•<br>#1<br>regional bank<br>1<br>deposit market<br>share in Virginia<br>•<br>Strong balance sheet<br>and capital<br>levels<br>•<br>Committed to<br>top<br>-<br>tier financial<br>performance<br>with a highly<br>experienced management team able<br>to execute change<br>4<br>$<br>20<br>..0<br>Assets<br>$<br>13.9<br>Loans<br>$<br>16.5<br>Deposits<br>$<br>2<br>..5<br>Market Capitalization<br>Branch/Office Footprint<br>AUB (114)<br>AUB LPO (3)<br>AUB Equipment Finance Headquarters (1)
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5<br>Our<br>Shareholder<br>Value<br>Proposition<br>Leading Regional Presence<br>Dense, uniquely valuable presence<br>across<br>attractive<br>markets<br>Financial<br>Strength<br>Solid balance sheet<br>& capital levels<br>Attractive<br>Financial Profile<br>Solid dividend yield<br>& payout ratio with<br>earnings upside<br>Strong Growth<br>Potential<br>Organic & acquisition<br>opportunities<br>Peer<br>-<br>Leading<br>Performance<br>Committed to top<br>-<br>tier<br>financial performance
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6<br>Q3 2022 Highlights and 2022 Outlook<br>Loan Growth<br>•<br>7.9% annualized loan growth, ex<br>-<br>Paycheck Protection Program (PPP)<br>(Non<br>-<br>GAAP)<br>1<br>, during Q3 2022<br>•<br>Expect high single digit loan growth for<br>2022<br>Asset Quality<br>•<br>Net Charge<br>-<br>offs at 2 bps annualized for<br>Q3 2022<br>Positioning for Long Term<br>•<br>Building out Asset<br>-<br>Based lending<br>capabilities<br>•<br>Drive organic growth and performance of<br>the core banking franchise<br>Differentiated Client<br>Experience<br>•<br>Continued progress on digital roadmap<br>•<br>Foreign exchange, syndication and SBA<br>7A lending programs help close product<br>gaps<br>Operating Leverage Focus<br>•<br>~13% pre<br>-<br>PPP adjusted revenue<br>growth<br>1<br>from Q3 2021 and ~6% pre<br>-<br>PPP<br>adjusted revenue<br>1<br>growth from Q2 2022<br>•<br>~6% adjusted operating non<br>-<br>interest<br>expense growth<br>1<br>from Q3 2021 and<br>~1.7% adjusted operating non<br>-<br>interest<br>expense growth<br>1<br>from Q2 2022<br>•<br>Pre<br>-<br>PPP adjusted operating leverage<br>1<br>of<br>~7% year over year<br>•<br>Pre<br>-<br>PPP adjusted operating leverage<br>1<br>of<br>~4% quarter over quarter<br>Capitalize on<br>Strategic<br>Opportunities<br>•<br>Selectively<br>consider<br>M&A, minority<br>stakes and strategic partnerships<br>as a<br>supplemental strategy<br>6<br>1<br>For<br>non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix<br>–<br>Reconciliation<br>of Non<br>-<br>GAAP Disclosures”
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7<br>We<br>are focused on three<br>Strategic Priorities<br>Organic<br>Deliver Organic Growth<br>•<br>Overweighting opportunities in Wholesale<br>Banking Group<br>•<br>Directing consumer efforts to market<br>segments and delivery channels with the<br>strongest value proposition<br>•<br>Prioritizing fee income growth<br>•<br>Maintaining a reliable low<br>-<br>cost deposit base<br>•<br>Maximizing operating leverage, productivity,<br>efficiency, and scale<br>•<br>Attract and retain top talent in alignment with<br>broader business goals and strategic<br>priorities<br>Innovate<br>and Transform<br>•<br>Pressing the relationship model advantage<br>where bankers provide advocacy and advice,<br>form stickier relationships, and use<br>technology to enable deeper relationships<br>•<br>Creating a frictionless experience for<br>customers by integrating human interactions<br>with digital capabilities<br>•<br>Eliminating low value tasks and enabling<br>more high value interactions with customers<br>•<br>Eliminating legacy system constraints and<br>accelerating modernization of technology<br>while rationalizing operating costs and<br>reengineering processes<br>•<br>Emphasizing robotics, automation and<br>FinTech partnerships<br>Inorganic<br>Strategic Investments<br>•<br>Leverage FinTech partnerships, strategic partner equity<br>investments, as well as non<br>-<br>bank and whole<br>-<br>bank acquisition<br>opportunities for step<br>-<br>change accelerants of growth<br>•<br>Acquisition philosophy remains: proactive, strategic,<br>disciplined, and measured with an eye towards transactions<br>that increase density and scarcity value, add contiguous<br>markets, increase operating leverage, diversify revenue<br>streams, and enable the reinvestment of cost savings into<br>technology<br>•<br>Ensuring merger and acquisition activity complements,<br>enables, and scales technology and the advancement of our<br>customer value proposition, potentially including whole bank,<br>non<br>-<br>bank, minority stakes, and partnerships
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8<br>We<br>Believe We Are<br>Well Positioned<br>For<br>The<br>Current<br>Environment<br>And<br>Optimistic<br>About Our Future<br>Top Tier<br>Financial Performance<br>Increased Shareholder Value<br>Strong<br>Credit<br>Expense Management Actions<br>Asset Sensitivity<br>Growth Footing
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9<br>Q3<br>2022 Financial Performance At<br>-<br>a<br>-<br>Glance<br>For non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix<br>–<br>Reconciliation of Non<br>-<br>GAAP Disclosures”<br>Note: all tables presented dollars in thousands,<br>except<br>per share amounts<br>•<br>Net income available to common shareholders for the<br>third<br>quarter of<br>2022<br>was<br>$55.1<br>million or $<br>0.74<br>per share,<br>down<br>$4.2<br>million or $<br>0.05<br>per share compared to the prior quarter,<br>primarily driven by:<br>•<br>A decrease in noninterest income due primarily to a<br>$9.1<br>million pre<br>-<br>tax gain on the sale of<br>DHFB in the<br>prior quarter,<br>•<br>An increase in the provision for credit losses,<br>•<br>An increase<br>in noninterest expense,<br>due primarily to<br>an increase in salaries and benefits expense and<br>other expenses, partially offset by a decrease in<br>professional services expense,<br>•<br>Partially offset by an increase in<br>net interest income<br>,<br>driven by increases<br>in loan yields on the Company’s<br>variable rate loans due to higher market interest<br>rates, average<br>loan growth from the prior<br>quarter,<br>and the additional day count in the third quarter of<br>2022<br>,<br>partially offset by<br>decreases in PPP and fair<br>value accretion and increases<br>in<br>deposit and<br>borrowing<br>costs as a result of increases in short<br>-<br>term<br>market interest<br>rates.<br>•<br>Adjusted<br>operating<br>earnings available to common<br>shareholders<br>(non<br>-<br>GAAP) increased<br>$3.8 million<br>to<br>$55.1<br>million at<br>September<br>30, 2022 compared to the prior quarter,<br>primarily driven by:<br>•<br>The<br>third quarter<br>2022’s<br>increase in net interest<br>income,<br>was mainly<br>due to the increases<br>noted<br>above,<br>•<br>Partially offset by a decrease in noninterest income,<br>as declines in fiduciary and asset management fees,<br>service charges on deposit accounts, and mortgage<br>banking income were partially offset by increases in<br>other operating income, BOLI income and<br>interchange fees,<br>•<br>An increase in the provision for credit losses,<br>•<br>An increase in noninterest expense, as increases in<br>salaries and benefits expense and other expenses<br>were partially offset by a decrease in professional<br>services expenses.<br>3Q2022<br>2Q2022<br>Net Income available to common shareholders<br>$<br>55,103<br><br><br>$<br>59,259<br><br><br>Common EPS, diluted<br>$<br>0.74<br><br><br>$<br>0.79<br><br><br>ROE<br>9.45%<br>10.21%<br>ROTCE (non-GAAP)<br>17.21%<br>18.93%<br>ROA<br>1.15%<br>1.27%<br>Efficiency ratio<br>56.68%<br>55.78%<br>Efficiency ratio (FTE)<br>55.47%<br>54.68%<br>Net interest margin<br>3.34%<br>3.15%<br>Net interest margin (FTE)<br>3.43%<br>3.24%<br>Earnings Metrics<br>3Q2022<br>2Q2022<br>Adjusted operating earnings available to common<br>shareholders<br>$<br> 55,103<br> $<br> 51,277<br>Adjusted operating common EPS, diluted<br>$<br>0.74<br><br><br> $<br>0.69<br><br><br>Adjusted operating ROA<br>1.15%<br>1.10%<br>Adjusted operating ROTCE<br>17.21%<br>16.47%<br>Adjusted operating efficiency ratio (FTE)<br>54.09%<br>55.88%<br>Adjusted operating earnings PTPP<br>$<br>76,376<br><br><br>$<br>69,205<br><br><br>PTPP = Pre-tax Pre-provision<br>Adjusted Operating Earnings Metrics - non-GAAP<br>3Q2022<br>2Q2022<br>Net interest income<br>$<br>150,715<br><br><br>$<br>138,767<br><br><br>- Provision for credit losses<br>6,412<br><br><br>3,559<br><br><br>+ Noninterest income<br>25,584<br><br><br>38,286<br><br><br>- Noninterest expense<br>99,923<br><br><br>98,768<br><br><br>- Taxes<br>11,894<br><br><br>12,500<br><br><br>Net income (GAAP)<br>58,070<br><br><br>62,226<br><br><br>- Dividends on preferred stock<br>2,967<br><br><br>2,967<br><br><br>Net income available to common shareholders (GAAP)<br>55,103<br><br><br>59,259<br><br><br>- Loss on sale of securities, net of tax<br>-<br><br><br>(2)<br><br><br>- Gain on sale of Dixon, Hubard, Feinour & Brown, Inc. (DHFB), net of tax<br>-<br><br><br>7,984<br><br><br>Adjusted operating earnings available to common shareholders (non-GAAP)<br>$<br>55,103<br><br><br>$<br>51,277<br><br><br>Summarized Income Statement
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10<br>Q3 2022 Allowance For Credit Loss (ACL) and<br>Provision for Credit Losses<br>10<br>Q3 Macroeconomic Forecast<br>Moody’s September 2022 Baseline<br>Forecast:<br>•<br>US GDP expected to increase 1.6% in 2022 and<br>1.4% in 2023. The US unemployment rate<br>expected to average around 3.7% in the fourth<br>quarter of 2022 and 3.9% in 2023.<br>•<br>Virginia’s unemployment rate averages 3.0% over<br>the 2<br>-<br>year forecast.<br>Q3 ACL<br>Considerations<br>•<br>The baseline<br>forecast<br>was adjusted for the<br>probability of worse<br>-<br>than baseline economic<br>performance over the forecast period<br>resulting in a<br>weighted forecast scenario that increased<br>Virginia’s average unemployment<br>rate<br>to ~5.4%<br>over the 2<br>-<br>year<br>forecast period.<br>•<br>Additional qualitative factors<br>were applied<br>for tail<br>-<br>end COVID<br>-<br>19 sensitive portfolios and other<br>factors deemed appropriate.<br>•<br>The reasonable<br>and supportable<br>forecast period is<br>2 years;<br>followed by reversion to the historical loss<br>average over 2 years<br>;<br>consistent with CECL<br>adoption.<br>($mm)<br>Allowance<br>for Loan<br>& Lease Losses<br>Reserve for Unfunded<br>Commitments<br>Allowance for<br>Credit Losses<br>3/31/2022<br>Ending Balance<br>% of loans<br>$103MM<br>(.<br>76%;<br>..77%<br>excl. PPP<br>loans<br>1<br>)<br>$8MM<br>(.06%;<br>..06% excl. PPP<br>loans<br>1<br>)<br>$111MM<br>(.82<br>%;<br>..83% excl. PPP<br>loans<br>1<br>)<br>Q2<br>2022 Activity<br>+$1MM<br>Increase due to increased risks<br>related to economic outlook and<br>the impact of loan growth<br>+$1MM<br>Increase due to the impact of<br>unfunded loan commitment growth<br>+$2MM<br>$3 million Provision for Credit<br>Losses and $900<br>thousand net<br>charge<br>-<br>offs<br>06/30/2022<br>Ending Balance<br>% of loans<br>$104MM<br>(.76%;<br>..76% excl. PPP<br>loans<br>1<br>)<br>$9MM<br>(.07%;<br>..07% excl. PPP<br>loans<br>1<br>)<br>$113MM<br>(.83%;<br>..83% excl. PPP<br>loans<br>1<br>)<br>Q3<br>2022 Activity<br>+$4MM<br>Increase due to increased risks<br>related to the economic outlook<br>and the impact of loan growth in<br>the current quarter<br>+$2MM<br>Increase due to increased risks<br>related to the economic outlook<br>+$6MM<br>$6.4 million Provision for Credit<br>Losses and $600<br>thousand net<br>charge<br>-<br>offs<br>09/30/2022<br>Ending Balance<br>% of loans<br>$108MM<br>(.78%)<br>$11MM<br>(.08%)<br>$119MM<br>(.86%)<br>..<br>1<br>For<br>non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP<br>measures in “Appendix<br>–<br>Reconciliation of Non<br>-<br>GAAP Disclosures”
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11<br>3.24%<br>2.50%<br>2.70%<br>2.90%<br>3.10%<br>3.30%<br>3.50%<br>3.70%<br>3.90%<br>Quarter 2 NIM<br>Core Loan Yield with Fees<br>Purchase Accounting<br>Accretion<br>PPP Earning Asset<br>Core Borrowings Rate<br>Core Deposit Rate<br>Quarter 3 NIM<br>Net Interest Margin (<br>FTE)<br>1<br>:<br>Drivers of Change 2022 Q2 to Q3<br>48 bps<br>-<br>4 bps<br>-<br>2 bps<br>-<br>3 bps<br>3.43%<br>-<br>20 bps<br>Total Loan Yield 42 bps<br>Q3 2022<br>Net Interest Margin<br>Market Rates<br>3Q2022<br>2Q2022<br>EOP<br>Avg<br>EOP<br>Avg<br>Fed funds<br>3.25%<br>2.38%<br>1.75%<br>0.95%<br>Prime<br>6.25%<br>5.35%<br>4.75%<br>3.94%<br>1<br>-<br>month Libor<br>3.14%<br>2.46%<br>1.79%<br>1.01%<br>1<br>-<br>month<br>SOFR<br>3.04%<br>2.44%<br>1.69%<br>0.92%<br>2<br>-<br>year Treasury<br>4.28%<br>3.37%<br>2.95%<br>2.71%<br>10<br>-<br>year Treasury<br>3.83%<br>3.10%<br>3.01%<br>2.92%<br>Margin Overview<br>3Q2022<br>2Q2022<br>Net interest margin (<br>FTE)<br>1<br>3.43%<br>3.24%<br>Loan yield<br>4.20%<br>3.67%<br>Investment yield<br>2.95%<br>2.87%<br>Earning asset yield<br>3.88%<br>3.46%<br>Cost of deposits<br>0.37%<br>0.15%<br>Cost of interest<br>-<br>bearing deposits<br>0.55%<br>0.23%<br>Cost of interest<br>-<br>bearing liabilities<br>0.68%<br>0.35%<br>Cost of funds<br>0.45%<br>0.22%<br>Presented on an FTE<br>basis (non<br>-<br>GAAP)<br>1<br>Approximately<br>17%<br>of the loan portfolio (ex. PPP)<br>at 9/30/2022 have floors and all<br>are above floors<br>Loan Portfolio Pricing<br>Mix<br>3Q2022<br>Fixed<br>49%<br>1<br>-<br>month Libor<br>25%<br>Prime<br>9%<br>1<br>-<br>month<br>SOFR<br>12%<br>Other<br>5%<br>Total<br>100%<br>1<br>For non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix<br>–<br>Reconciliation of N<br>on<br>-<br>GAAP Disclosures”
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12<br>Q3<br>2022 Noninterest Income and Noninterest Expense<br>Adjuste<br>d<br>n<br>oninterest<br>income<br>1<br>decreased $3.6<br>million to<br>$25.6<br>million for the quarter ended<br>September 30,<br>2022 from<br>$29.2 million<br>in the prior quarter due to:<br>•<br>Decreases in the following noninterest income categories:<br>•<br>Service charges<br>on deposit accounts of<br>$1.3 million, reflective of the changes to the Company’s<br>overdraft policy<br>•<br>Fiduciary and asset management fees of $2.8 million due to a decrease in assets under management<br>primarily due to the sale of DHFB<br>•<br>Mortgage banking income of $810,000 resulting from a decline in mortgage origination volumes and<br>lower gain on sales margins<br>•<br>Loan interest rate swap fee income of $550,000 driven by a decrease in average transaction swap fees<br>•<br>Partially offset by increases in:<br>•<br>Other operating income of $819,000 primarily related to<br>syndication, foreign exchange, and other<br>capital market transaction<br>fees<br>•<br>Bank owned life insurance income of $729,000 due to mortality benefits<br>•<br>Interchange fees of $193,000<br>Adjusted noninterest expense<br>1<br>increased to $97.4 million<br>for the quarter ended<br>September 30,<br>2022 from<br>$95.9<br>million in the prior quarter due to<br>:<br>•<br>Increases in the following noninterest expense categories:<br>•<br>Salaries and benefits expense of $1.3 million<br>due to<br>elevated new hire recruiting<br>expenses and<br>lower deferred<br>loan origination costs<br>resulting from<br>changes in loan<br>originations production mix from the prior quarter<br>•<br>Other expenses of $1.1 million, primarily driven by OREO gains of $631,000 realized<br>in the prior quarter<br>•<br>Partially<br>offsetting these expense<br>increases were decreases in:<br>•<br>Professional services expense of $1.2 million primarily driven by lower strategic<br>project costs<br>1<br>For<br>non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix<br>–<br>Reconciliation of Non<br>-<br>G<br>AAP Disclosures<br>”<br>Noninterest Expense<br>($ thousands)<br>3Q2022<br>2Q2022<br>Salaries and benefits<br>$<br>56,600<br><br><br>$<br>55,305<br><br><br>Occupancy expenses<br>6,408<br><br><br>6,395<br><br><br>Furniture and equipment expenses<br>3,673<br><br><br>3,590<br><br><br>Technology and data processing<br>8,273<br><br><br>7,862<br><br><br>Professional services<br>3,504<br><br><br>4,680<br><br><br>Marketing and advertising expense<br>2,343<br><br><br>2,502<br><br><br>FDIC assessment premiums and other insurance<br>3,094<br><br><br>2,765<br><br><br>Franchise and other taxes<br>4,507<br><br><br>4,500<br><br><br>Loan-related expenses<br>1,575<br><br><br>1,867<br><br><br>Amortization of intangible assets<br>2,480<br><br><br>2,915<br><br><br>Other expenses<br>7,466<br><br><br>6,387<br><br><br>Total noninterest expenses<br>$<br>99,923<br><br><br>$<br>98,768<br><br><br>Less: Amortization of intangible assets<br>2,480<br><br><br>2,915<br><br><br>Total adjusted operating noninterest expense (non-GAAP)<br>$<br>97,443<br><br><br>$<br>95,853<br><br><br>Noninterest Income<br>($ thousands)<br> 3Q2022<br> 2Q2022<br>Service charges on deposit accounts<br>$<br>6,784<br><br><br>$<br>8,040<br><br><br>Other service charges, commissions and fees<br>1,770<br><br><br>1,709<br><br><br>Interchange fees<br>2,461<br><br><br>2,268<br><br><br>Fiduciary and asset management fees<br>4,134<br><br><br>6,939<br><br><br>Mortgage banking income<br>1,390<br><br><br>2,200<br><br><br>Bank owned life insurance income<br>3,445<br><br><br>2,716<br><br><br>Loan-related interest rate swap fees<br>2,050<br><br><br>2,600<br><br><br>Other operating income<br>3,550<br><br><br>11,814<br><br>Total noninterest income<br>$<br>25,584<br><br>$<br>38,286<br><br>Less: Loss on sale of securities<br>-<br><br><br>(2)<br><br><br>Less: Gain on sale of DHFB (other operating income)<br>-<br><br><br>9,082<br><br><br>Total adjusted operating noninterest income (non-GAAP)<br>$<br>25,584<br><br>$<br>29,206
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13<br>Q3<br>2022 Loan and Deposit Growth<br>•<br>At<br>September 30,<br>2022, loans held for investment totaled $<br>13.9<br>billion, an increase of<br>$263.3 million or 7.7% (annualized)<br>from the<br>prior quarter driven by increases in commercial<br>loan balances ex<br>PPP of $212.6<br>million and increases in consumer loan balances<br>of<br>$60.3 million<br>, partially offset by<br>a decrease of $9.6<br>million<br>in<br>PPP<br>loans during the third quarter.<br>•<br>Excluding PPP loans, total<br>loans<br>1<br>increased by<br>$272.9<br>million or<br>~7.9%<br>(annualized)<br>•<br>Commercial loans increased by<br>7.3<br>%<br>(annualized<br>),<br>primarily driven by increases in<br>commercial and industrial<br>loans and construction and land development loans<br>..<br>•<br>Consumer loans balances increased by<br>11.1%<br>(annualized), driven by growth in<br>auto loans and<br>residential 1<br>-<br>4 family consumer loans.<br>•<br>Average<br>loan yields<br>increased<br>53<br>basis<br>points during the<br>quarter primarily reflecting the<br>impact of rising<br>market<br>interest rates.<br>•<br>Total deposits<br>increased<br>by<br>$417.6<br>million<br>or<br>~<br>10.3<br>%<br>(annualized)<br>•<br>Interest checking balances increased by $<br>411.0<br>million<br>primarily in commercial client<br>-<br>operating accounts.<br>•<br>Transaction accounts<br>comprised 58%<br>of total deposit balances at the end of the<br>third<br>quarter,<br>consistent with the prior quarter.<br>•<br>The cost of deposits<br>increased<br>by<br>22<br>basis<br>points<br>compared to the prior quarter, primarily due<br>to the<br>increase in rising market interest rates.<br>1<br>For<br>non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in<br>“Appendix<br>–<br>Reconciliation of Non<br>-<br>GAAP Disclosures”<br>Deposit Growth<br> ($ thousands)<br>3Q2022<br>2Q2022<br>QTD Annualized Growth<br>Interest checking accounts<br> $ 4,354,351<br> $ 3,943,303<br>41.4%<br>Money market accounts<br>3,962,473<br>3,956,050<br>0.6%<br>Savings accounts<br>1,173,566<br>1,165,577<br>2.7%<br>Time deposits of $250,000 and over<br>415,984<br>360,158<br>61.5%<br>Other time deposits<br>1,348,904<br>1,342,009<br>2.0%<br>Total Time deposits<br>1,764,888<br>1,702,167<br>14.6%<br>Total interest-bearing deposits<br>11,255,278<br>10,767,097<br>18.0%<br>Demand deposits<br>5,290,938<br>5,361,538<br>(5.2%)<br> Total deposits<br> $ 16,546,216<br> $ 16,128,635<br>10.3%<br> Average Cost of Deposits<br>0.37%<br>0.15%<br> Loan to Deposit Ratio<br>84.1%<br>84.7%<br>Loan Growth<br><br>($ thousands)<br>3Q2022<br>2Q2022<br>QTD Annualized Growth<br>Commercial & Industrial, ex PPP<br>$<br> 2,696,901<br>$<br> 2,574,144<br>18.9%<br>Commercial real estate - owner occupied<br> 1,953,872<br> 1,965,702<br>(2.4%)<br>Other Commercial, ex PPP<br> 755,835<br> 774,749<br>(9.7%)<br>Total Commercial & Industrial<br> 5,406,608<br> 5,314,595<br>6.9%<br>Commercial real estate - non-owner occupied<br> 3,900,325<br> 3,860,819<br>4.1%<br>Construction and land development<br> 1,068,201<br> 988,379<br>32.0%<br>Multifamily real estate<br> 774,970<br> 762,502<br>6.5%<br>Residential 1-4 Family - Commercial<br> 542,612<br> 553,771<br>(8.0%)<br>Total CRE & Construction<br> 6,286,108<br> 6,165,471<br>7.8%<br>Total Commercial Loans, ex PPP<br> 11,692,716<br> 11,480,066<br>7.3%<br>Residential 1-4 Family - Consumer<br> 891,353<br> 865,174<br>12.0%<br>Residential 1-4 Family - Revolving<br> 588,452<br> 583,073<br>3.7%<br>Auto<br> 561,277<br> 525,301<br>27.2%<br>Consumer - including 3rd Party Consumer<br> 172,776<br> 180,045<br>(16.0%)<br>Total Consumer Loans<br> 2,213,858<br> 2,153,593<br>11.1%<br>Total Loans Held for Investment, ex PPP<br>1<br>$<br> 13,906,574<br>$<br> 13,633,659<br>7.9%<br>PPP Loans, net of deferred fees and costs<br> 12,146<br> 21,749<br>(175.2%)<br> Total Loans Held for Investment<br>$<br> 13,918,720<br>$<br> 13,655,408<br>7.7%<br> Average Loan Yield<br>4.20%<br>3.67%
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14<br>Strong Capital Position at<br>September 30, 2022<br>Capital Ratio<br>Regulatory<br>Well Capitalized<br>Atlantic Union<br>Bankshares<br>Atlantic<br>Union Bank<br>Common Equity Tier 1 Ratio (CET1)<br>7.0%<br>10.0%<br>12.9%<br>Tier 1 Capital Ratio<br>8.5%<br>11.0%<br>12.9%<br>Total Risk<br>Based<br>Capital Ratio<br>10.5%<br>13.8%<br>13.4%<br>Leverage Ratio<br>5.0%<br>9.3%<br>10.9%<br>Tangible Equity to Tangible Assets (<br>non<br>-<br>GAAP)<br>2<br>-<br>7.0%<br>8.6%<br>Tangible Common Equity Ratio<br>(<br>non<br>-<br>GAAP)<br>2<br>-<br>6.1%<br>8.6%<br>Figures may not foot due to rounding<br>2<br>)<br>For non<br>-<br>GAAP financial measures, see reconciliation to most directly comparable GAAP measures in<br>“Appendix<br>–<br>Reconciliation of Non<br>-<br>GAAP Disclosures”<br>Capital Management Strategy<br>Atlantic Union capital management objectives are to:<br>•<br>Maintain designation as a “well capitalized” institution.<br>•<br>Ensure capital levels are commensurate with the<br>Company’s risk profile, capital stress test projections,<br>and strategic plan objectives.<br>•<br>The<br>Company’s capital ratios are well above<br>regulatory well capitalized levels as of<br>9/30/2022.<br>Capital Management Actions<br>•<br>During<br>the<br>third quarter<br>, the Company<br>paid dividends<br>of<br>$171.88 per outstanding share of Series A<br>Preferred Stock<br>and<br>$<br>0.30<br>per common<br>share which is<br>a 7% increase from the<br>prior quarter’s<br>and prior year’s<br>dividend.<br>•<br>The Company did not repurchase common shares<br>during the third quarter and has ~$52 million<br>remaining on its current $100 million share repurchase<br>authorization.<br>Quarterly Roll Forward<br>Common<br>Equity Tier 1<br>Ratio<br>Tangible<br>Common<br>Equity<br>Ratio<br>Tangible Book<br>Value per Share<br>At<br>6/30/22<br>9.96%<br>6.78%<br>$17.07<br>Pre<br>-<br>Provision Net Income<br>0.38%<br>0.32%<br>0.81<br>After<br>-<br>Tax Provision<br>-<br>0.03%<br>-<br>0.03%<br>(<br>0.07)<br>Common Dividends<br>(1)<br>-<br>0.14%<br>-<br>0.12%<br>(<br>0.30)<br>AOCI<br>---<br>-<br>0.78%<br>(<br>1.96)<br>Goodwill & Intangibles<br>0.01%<br>0.01%<br>0.03<br>Other<br>0.04%<br>0.00%<br>0.04<br>Asset Growth<br>-<br>0.25%<br>-<br>0.08%<br>---<br>At<br>9/30/22<br>–<br>Reported<br>9.96%<br>6.11%<br>$15.61<br>AOCI<br>Total Impact<br>---<br>2.43%<br>6.22<br>At 9/30/22<br>–<br>ex AOCI<br>2<br>9.96%<br>8.54%<br>$21.83<br>(1)<br>30<br>cents per share<br>*Capital information presented herein is based on estimates and subject to change pending the Company’s filing of its regulat<br>or<br>y reports
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15<br>Top<br>-<br>Tier<br>Financial Targets<br>Committed to top<br>-<br>tier<br>financial performance<br>16<br>%<br>–<br>18<br>%<br>Return on Tangible<br>Common Equity<br>1.3<br>%<br>–<br>1.5<br>%<br>Return on Assets<br>≤ 51<br>%<br>(1)<br>Efficiency Ratio (FTE)<br>Atlantic Union is committed to achieving<br>top tier financial performance and<br>providing our shareholders with above<br>average returns on their investment<br>regardless of the operating environment<br>Key financial performance operating<br>metrics benchmarked against top<br>quartile peers<br>15<br>(1<br>)<br>includes the approximately 2.5% efficiency<br>ratio impact of the Virginia franchise tax<br>expense (vs. state income tax).<br>We expect to achieve these financial targets in the<br>Fourth Quarter 2022 and Full Year 2023
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16<br>Financial<br>Outlook<br>1<br>1<br>Key Economic Assumptions<br>•<br>Rising rate environment<br>•<br>The Federal Reserve Bank fed funds rate:<br>•<br>4.50% by the end of<br>2022;<br>and<br>•<br>4.50<br>%<br>average for 2023<br>•<br>Shallow to Mild recession in 2023<br>•<br>Expect<br>relatively stable<br>economy in AUB’s<br>Virginia footprint<br>•<br>Virginia unemployment remains low at<br><4%<br>Q4 2022 Outlook<br>Full Year<br>2023<br>Targets<br>versus Q3 2022<br>versus<br>FY 2022<br>Loan<br>Growth<br>Upper single<br>digits (annualized)<br>Upper single<br>digits<br>Net<br>Interest Income (FTE)<br>Growth<br>~5<br>%<br>from Q3 2022<br>~10%<br>–<br>15%<br>Net<br>Interest Margin (FTE)<br>3.55%<br>–<br>3.65%<br>~<br>3.70%<br>–<br>3.80<br>%<br>Noninterest Income<br>Growth<br>Flat<br>Low<br>-<br>single digits (ex DHFB<br>)<br>Noninterest<br>Expense<br>Growth<br>Flat<br>Mid<br>-<br>single digits<br>Positive Operating Leverage<br>Revenue Growth:<br>Mid<br>-<br>single digits<br>Operating<br>Expense Growth: Flat<br>Revenue Growth:<br>Low<br>teens<br>Operating Expense Growth: M<br>id<br>-<br>single digits<br>Credit Outlook<br>Allowance for Credit Losses (ACL) to Loans:<br>~<br>85<br>–<br>90 basis<br>points<br>Net charge<br>-<br>off ratio: <<br>5 basis<br>points<br>ACL to loans: ~<br>85<br>–<br>90 basis<br>points<br>Net charge<br>-<br>off ratio: ~10<br>-<br>15<br>basis points<br>1)<br>Information on this slide is presented as of October 20, 2022, reflects the Company’s updated financial outlook, certain of t<br>he<br>company’s financial targets, and key economic assumptions, and will not be updated or affirmed unless and until the Company<br>publicly announces such an update or affirmation. The Q4 2022 outlook, the FY 2023 financial targets and the key economic<br>assumptions contain forward<br>-<br>looking statements and actual results or conditions may differ materially. See the information set<br>forth<br>below the heading “Forward Looking Statements” on slide 2 of this presentation.
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17<br>Appendix
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18<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>The Company has provided supplemental performance measures on a tax<br>-<br>equivalent, tangible, operating, adjusted, or pre<br>-<br>tax pre<br>-<br>pr<br>ovision basis.<br>These non<br>-<br>GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and sho<br>uld not be<br>considered in isolation or as a substitute for<br>comparable measures calculated in accordance with GAAP<br>.. In addition, the Company’s non<br>-<br>GAAP<br>financial measures may not be comparable to non<br>-<br>GAAP financial measures of other companies. The Company uses the non<br>-<br>GAAP financ<br>ial<br>measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non<br>-<br>GAAP fi<br>nancial<br>measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior pe<br>rio<br>ds and show the<br>effects of significant gains and charges in the periods presented without the impact of items or events that may obscure tren<br>ds<br>in the Company’s<br>underlying performance.
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19<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Adjusted operating measures exclude the<br>gains<br>or losses<br>on sale of<br>securities and<br>gain on the sale of<br>DHFB.<br>The<br>Company believes these non<br>-<br>GAAP adjusted measures<br>provide investors with important information about the<br>continuing economic results of the<br>Company’s operations.<br>Net<br>interest income (FTE) and total adjusted revenue<br>(FTE), which are used in computing net interest margin<br>(FTE), efficiency ratio (FTE) and adjusted operating<br>efficiency ratio (FTE), respectively, provide valuable<br>additional insight into the net interest margin and the<br>efficiency ratio by adjusting for differences in tax treatment<br>of interest income sources. The entire FTE adjustment is<br>attributable to interest income on earning assets, which is<br>used in computing yield on earning assets. Interest<br>expense and the related cost of interest<br>-<br>bearing liabilities<br>and cost of funds ratios are not affected by the FTE<br>components.<br>The<br>adjusted operating efficiency ratio (FTE)<br>excludes the amortization of intangible assets, gains or<br>losses on sale of securities,<br>and the gain<br>on the sale of<br>DHFB. This<br>measure is similar to the measure utilized by<br>the Company when analyzing corporate performance and<br>is also similar to the measure utilized for incentive<br>compensation. The Company believes this adjusted<br>measure provides investors with important information<br>about the combined economic results of the organization’s<br>operations. The<br>Company believes excluding PPP<br>accretion interest income and fees from operating<br>earnings is useful to investors as it provides more clarity<br>on the Company’s non<br>-<br>PPP related income<br>..<br>Also presented is a computation of the pre<br>-<br>PPP adjusted<br>operating leverage ratio (non<br>-<br>GAAP) which is the period<br>to period percentage change in pre<br>-<br>PPP total adjusted<br>revenue on a taxable<br>-<br>equivalent basis (non<br>-<br>GAAP) less<br>the percentage change in adjusted operating noninterest<br>expense (non<br>-<br>GAAP).<br>(Dollars in thousands, except per share amounts)<br>3Q2022<br>2Q2022<br>3Q2021<br>2Q22<br>3Q21<br>Net Income (GAAP)<br>58,070<br>$<br><br>62,226<br>$<br><br>74,565<br>$<br><br>Less: (Loss) gain on sale of securities, net of tax<br>-<br><br><br>(2)<br><br><br>7<br><br><br>Less: Gain on sale of DHFB, net of tax<br>-<br><br><br>7,984<br><br><br>-<br><br><br>Adjusted operating earnings (non-GAAP)<br>58,070<br>$<br><br>54,244<br>$<br><br>74,558<br>$<br><br>Less: Dividends on preferred stock<br>2,967<br><br><br>2,967<br><br><br>2,967<br><br><br>Adjusted operating earnings available to common shareholders (non-GAAP)<br>55,103<br>$<br><br>51,277<br>$<br><br>71,591<br>$<br><br>Weighted average common shares outstanding, diluted<br>74,705,054<br><br><br>74,849,871<br><br><br>76,322,736<br><br><br>EPS available to common shareholders, diluted (GAAP)<br>0.74<br>$<br><br>0.79<br>$<br><br>0.94<br>$<br><br>Adjusted operating EPS available to common shareholders (non-GAAP)<br>0.74<br>$<br><br>0.69<br>$<br><br>0.94<br>$<br><br>Noninterest expense (GAAP)<br>99,923<br>$<br><br>98,768<br>$<br><br>95,343<br>$<br><br>1.17%<br>4.80%<br>Less: Amortization of intangible assets<br>2,480<br><br><br>2,915<br><br><br>3,381<br><br><br>Adjusted operating noninterest expense (non-GAAP)<br>97,443<br>$<br><br>95,853<br>$<br><br>91,962<br>$<br><br>1.66%<br>5.96%<br>Noninterest income (GAAP)<br>25,584<br>$<br><br>38,286<br>$<br><br>29,938<br>$<br><br>Less: Gain on sale of securities<br>-<br><br><br>(2)<br><br><br>9<br><br><br>Less: Gain on sale of DHFB<br>-<br><br><br>9,082<br><br><br>-<br><br><br>Adjusted operating noninterest income (non-GAAP)<br>25,584<br>$<br><br>29,206<br>$<br><br>29,929<br>$<br><br>Net interest income (GAAP)<br>150,715<br>$<br><br>138,767<br>$<br><br>137,488<br>$<br><br>Noninterest income (GAAP)<br>25,584<br><br><br>38,286<br><br><br>29,938<br><br><br>Total revenue (GAAP)<br>176,299<br>$<br><br>177,053<br>$<br><br>167,426<br>$<br><br>(0.43%)<br>5.30%<br>Net interest income (FTE) (non-GAAP)<br>154,557<br>$<br><br>142,344<br>$<br><br>140,652<br>$<br><br>Adjusted operating noninterest income (non-GAAP)<br>25,584<br><br><br>29,206<br><br><br>29,929<br><br><br>Total adjusted revenue (FTE) (non-GAAP)<br>180,141<br><br><br>171,550<br><br><br>170,581<br><br><br>5.01%<br>5.60%<br>Less: PPP accretion interest income and fees<br>454<br><br><br>1,346<br><br><br>11,173<br><br><br>Pre-PPP total adjusted revenue (FTE) (non-GAAP)<br>179,687<br>$<br><br>170,204<br>$<br><br>159,408<br>$<br><br>5.57%<br>12.72%<br>Operating leverage ratio (GAAP)<br>(1.60%)<br>0.50%<br>Pre-PPP adjusted operating leverage ratio (non-GAAP)<br>3.91%<br>6.76%<br>Efficiency ratio (GAAP)<br>56.68%<br>55.78%<br>56.95%<br>Efficiency ratio FTE (non-GAAP)<br>55.47%<br>54.68%<br>55.89%<br>Adjusted operating efficiency ratio (FTE) (non-GAAP)<br>54.09%<br>55.88%<br>53.91%<br>For the three months ended<br>3Q22 % Change<br>ADJUSTED OPERATING EARNINGS, OPERATING LEVERAGE, AND EFFICIENCY RATIO
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20<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Net interest income (FTE) and total adjusted<br>revenue (FTE), which are used in computing<br>net interest margin (FTE), efficiency ratio<br>(FTE) and adjusted operating efficiency ratio<br>(FTE), respectively, provide valuable<br>additional insight into the net interest margin<br>and the efficiency ratio by adjusting for<br>differences in tax treatment of interest<br>income sources. The entire FTE adjustment<br>is attributable to interest income on earning<br>assets, which is used in computing yield on<br>earning assets. Interest expense and the<br>related cost of interest<br>-<br>bearing liabilities and<br>cost of funds ratios are not affected by the<br>FTE components.<br>(Dollars in thousands)<br>3Q2022<br>2Q2022<br>3Q2021<br>Net interest income (GAAP)<br>150,715<br>$<br><br>138,767<br>$<br><br>137,488<br>$<br><br>FTE adjustment<br>3,842<br><br><br>3,577<br><br><br>3,164<br><br><br>Net interest income (FTE) (non-GAAP)<br>154,557<br>$<br><br>142,344<br>$<br><br>140,652<br>$<br><br>Noninterest income (GAAP)<br>25,584<br><br><br>38,286<br><br><br>29,938<br><br><br>Total revenue (FTE) (non-GAAP)<br>180,141<br>$<br><br>180,630<br>$<br><br>170,590<br>$<br><br>Average earning assets<br>17,879,222<br>$<br><br>17,646,470<br>$<br><br>17,910,389<br>$<br><br>Net interest margin (GAAP)<br>3.34%<br>3.15%<br>3.05%<br>Net interest margin (FTE)<br>3.43%<br>3.24%<br>3.12%<br>NET INTEREST MARGIN<br>For the three months ended
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21<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Tangible assets and tangible common equity<br>are used in the calculation of certain<br>profitability, capital, and per share ratios. The<br>Company believes tangible assets, tangible<br>common equity and the related ratios are<br>meaningful measures of capital adequacy<br>because they provide a meaningful base for<br>period<br>-<br>to<br>-<br>period and company<br>-<br>to<br>-<br>company<br>comparisons, which the Company believes<br>will assist investors in assessing the capital<br>of the Company and its ability to absorb<br>potential losses.<br>(Dollars in thousands, except share data)<br>Atlantic Union<br>Bankshares<br>Atlantic Union Bank<br>Tangible Assets<br>Ending Assets (GAAP)<br>19,950,231<br>$<br><br>19,829,553<br>$<br><br>Less: Ending goodwill<br>925,211<br><br><br>925,211<br><br><br>Less: Ending amortizable intangibles<br>29,142<br><br><br>29,142<br><br><br>Amortizable intangibles, net<br>Ending tangible assets (non-GAAP)<br>18,995,878<br>$<br><br>18,875,200<br>$<br><br>Tangible Common Equity<br>Total stockholders' equity<br>Ending equity (GAAP)<br>2,281,150<br>$<br><br>2,572,616<br>$<br><br>Less: Ending goodwill<br>925,211<br><br><br>925,211<br><br><br>Less: Ending amortizable intangibles<br>29,142<br><br><br>29,142<br><br><br>Less: Perpetual preferred stock<br>166,357<br><br><br>-<br><br><br>Ending tangible common equity (non-GAAP)<br>1,160,440<br>$<br><br>1,618,263<br>$<br><br>Accumulated other comprehensive loss (AOCI)<br>(462,119)<br><br><br>Common shares outstanding at end of period<br>74,703,774<br><br><br>Stockholders' equity<br>Average common equity (GAAP)<br>2,436,999<br>$<br><br>2,772,047<br>$<br><br>Less: Average goodwill<br>Less: Average goodwill<br>925,211<br><br><br>925,211<br><br><br>Less: Average amortizable intangibles<br>Less: Average amortizable intangibles<br>30,347<br><br><br>30,347<br><br><br>Less: Average perpetual preferred stock<br>Less: Average perpetual preferred stock<br>166,356<br><br><br>-<br><br><br>Average tangible common equity (non-GAAP)<br>1,315,085<br>$<br><br>1,816,489<br>$<br><br>Less: Perpetual preferred stock<br>Common equity to assets (GAAP)<br>10.6%<br>13.0%<br>Tangible equity to tangible assets (non-GAAP)<br>7.0%<br>8.6%<br>Tangible common equity to tangible assets (non-GAAP)<br>6.1%<br>8.6%<br>Tangible common equity to tangible assets ex AOCI (non-GAAP)<br>1<br>8.5%<br>Book Value per Common Share<br>Book value per common share (GAAP)<br>28.46<br>$<br><br>Tangible Book Value per Share<br>Tangible book value per common share (non-GAAP)<br>15.61<br>$<br><br>Tangible book value per common share ex AOCI (non-GAAP)<br>1<br>21.83<br>$<br><br>Leverage Ratio<br>Tier 1 Capital<br>1,799,428<br>$<br><br>2,100,702<br>$<br><br>Total average assets for leverage ratio<br>19,300,563<br>$<br><br>19,187,252<br>$<br><br>Leverage Ratio<br>9.3%<br>10.9%<br>1<br>Calculation excludes the impact of 384,366 unvested restricted stock awards (RSAs) outstanding as of September 30, 2022<br>TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO<br>As of September 30, 2022
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22<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Tangible assets and tangible common equity are<br>used in the calculation of certain profitability, capital,<br>and per share ratios. The Company believes tangible<br>assets, tangible common equity and the related<br>ratios are meaningful measures of capital adequacy<br>because they provide a meaningful base for period<br>-<br>to<br>-<br>period and company<br>-<br>to<br>-<br>company comparisons,<br>which the Company believes will assist investors in<br>assessing the capital of the Company and its ability<br>to absorb potential losses. The Company believes<br>that ROTCE is a meaningful supplement to GAAP<br>financial measures and useful to investors because it<br>measures the performance of a business<br>consistently across time without regard to whether<br>components of the business were acquired or<br>developed internally. Adjusted operating measures<br>exclude<br>gains<br>or losses on sale of<br>securities and the<br>gain<br>on the sale of<br>DHFB. The<br>Company believes<br>these non<br>-<br>GAAP adjusted measures provide<br>investors with important information about the<br>continuing economic results of the<br>Company’s<br>operations<br>..<br>(Dollars in thousands, except per share amounts)<br>3Q2022<br>2Q2022<br>3Q2021<br>Return on assets (ROA)<br>Average assets<br>19,980,500<br>$<br><br>19,719,402<br>$<br><br>20,056,570<br>$<br><br>ROA (GAAP)<br>1.15%<br>1.27%<br>1.47%<br>Adjusted operating ROA (non-GAAP)<br>1.15%<br>1.10%<br>1.47%<br>Return on equity (ROE)<br>Adjusted operating earnings available to common shareholders (non-GAAP)<br>55,103<br>$<br><br>51,277<br>$<br><br>71,591<br>$<br><br>Plus: Amortization of intangibles, tax effected<br>1,959<br><br><br>2,303<br><br><br>2,671<br><br><br>Net operating earnings available to common shareholders before amortization<br>of intangibles (non-GAAP)<br>57,062<br>$<br><br>53,580<br>$<br><br>74,262<br>$<br><br>Average common equity (GAAP)<br>2,436,999<br>$<br><br>2,445,045<br>$<br><br>2,718,032<br>$<br><br>Less: Average goodwill<br>925,211<br><br><br>935,446<br><br><br>935,560<br><br><br>Less: Average amortizable intangibles<br>30,347<br><br><br>38,707<br><br><br>48,179<br><br><br>Less: Average perpetual preferred stock<br>166,356<br><br><br>166,356<br><br><br>166,356<br><br><br>Average tangible common equity (non-GAAP)<br>1,315,085<br>$<br><br>1,304,536<br>$<br><br><br>1,567,937<br>$<br><br><br>ROE (GAAP)<br>9.45%<br>10.21%<br>10.88%<br>Return on tangible common equity (ROTCE)<br>Net Income available to common shareholders (GAAP)<br>55,103<br>$<br><br>59,259<br>$<br><br>71,598<br>$<br><br>Plus: Amortization of intangibles, tax effected<br>1,959<br><br><br>2,303<br><br><br>2,671<br><br><br>Net Income available to common shareholders before amortization of<br>intangibles (non-GAAP)<br>57,062<br>$<br><br>61,562<br>$<br><br>74,269<br>$<br><br>ROTCE<br>17.21%<br>18.93%<br>18.79%<br>Adjusted operating ROTCE (non-GAAP)<br>17.21%<br>16.47%<br>18.79%<br>For the three months ended<br>OPERATING MEASURES
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23<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Pre<br>-<br>tax pre<br>-<br>provision adjusted earnings<br>excludes the provision for credit losses,<br>which can fluctuate significantly from period<br>-<br>to<br>-<br>period under the CECL methodology,<br>income tax<br>expense,<br>gains or losses on sale<br>of<br>securities and the<br>gain on the sale of<br>DHFB. The<br>Company believes this adjusted<br>measure provides investors with important<br>information about the combined economic<br>results of the<br>Company’s operations. The<br>Company believes excluding PPP accretion<br>interest income and fees from operating<br>earnings is useful to investors as it provides<br>more clarity on the Company’s non<br>-<br>PPP<br>related income.<br>(Dollars in thousands, except per share amounts)<br>3Q2022<br>2Q2022<br>3Q2021<br>Net income (GAAP)<br>58,070<br>$<br><br>62,226<br>$<br><br>74,565<br>$<br><br>Plus: Provision for credit losses<br>6,412<br><br><br>3,559<br><br><br>(18,850)<br><br><br>Plus: Income tax expense<br>11,894<br><br><br>12,500<br><br><br>16,368<br><br><br>Less: (Loss) gain on sale of securities<br>-<br><br><br>(2)<br><br><br>9<br><br><br>Less: Gain on sale of DHFB<br>-<br><br><br>9,082<br><br><br>-<br><br><br>PTPP adjusted operating earnings (non-GAAP)<br>76,376<br><br><br>69,205<br><br><br>72,074<br><br><br>Less: Dividends on preferred stock<br>2,967<br><br><br>2,967<br><br><br>2,967<br><br><br>PTPP adjusted operating earnings available to common shareholders (non-GAAP)<br>73,409<br>$<br><br>66,238<br>$<br><br>69,107<br>$<br><br>PTPP adjusted operating earnings (non-GAAP)<br>76,376<br><br><br>69,205<br><br><br>72,074<br><br><br>Less: PPP accretion interest income and fees<br>454<br><br><br>1,346<br><br><br>11,173<br><br><br>Pre-PPP PTPP adjusted operating earnings (non-GAAP)<br>75,922<br>$<br><br>67,859<br>$<br><br>60,901<br>$<br><br>For the three months ended<br>PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS
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24<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>PPP adjustment impact excludes the<br>unforgiven portion of PPP loans. The<br>Company believes loans held for investment<br>(net of deferred fees and costs), excluding<br>PPP is useful to investors as it provides more<br>clarity on the Company’s organic growth. The<br>Company also believes that the related non<br>-<br>GAAP financial measures of past due loans<br>still accruing interest as a percentage of total<br>loans held for investment (net of deferred<br>fees and costs), excluding PPP, are useful to<br>investors as loans originated under the PPP<br>carry an SBA guarantee. The Company<br>believes that the ALLL as a percentage of<br>loans held for investment (net of deferred<br>fees and costs), excluding PPP, is useful to<br>investors because of the size of the<br>Company’s PPP originations and the impact<br>of the embedded credit enhancement<br>provided by the SBA guarantee.<br>(Dollars in thousands)<br>As of<br>September 30, 2022<br>As of<br>June 30, 2022<br>As of<br>March 31, 2022<br>Allowance for loan and lease losses (ALLL)<br>108,009<br>$<br><br>104,184<br>$<br><br>102,591<br>$<br><br>Reserve for unfunded commitment (RUC)<br>11,000<br><br><br>9,000<br><br><br>8,000<br><br><br>Allowance for credit losses (ACL)<br>119,009<br>$<br><br>113,184<br>$<br><br>110,591<br>$<br><br>Loans held for investment (net of deferred fees and costs)(GAAP)<br>13,918,720<br>$<br><br>13,655,408<br>$<br><br>13,459,349<br>$<br><br>Less: PPP adjustments (net of deferred fees and costs)<br>12,146<br><br><br>21,749<br><br><br>67,444<br><br><br>Total adjusted loans (non-GAAP)<br>13,906,574<br>$<br><br>13,633,659<br>$<br><br>13,391,905<br>$<br><br>Average loans held for investment (net of deferred fees and costs)(GAAP)<br>13,733,447<br>$<br><br>13,525,529<br>$<br><br>13,300,789<br>$<br><br>Less: Average PPP adjustments (net of deferred fees and costs)<br>14,280<br><br><br>43,391<br><br><br>103,041<br><br><br>Total adjusted average loans (non-GAAP)<br>13,719,167<br>$<br><br>13,482,138<br>$<br><br>13,197,748<br>$<br><br>Annualized loan growth - QTD (GAAP)<br>7.65%<br>Annualized loan growth, excluding PPP - QTD (non-GAAP)<br>7.94%<br>ALLL to total loans held for investment (GAAP)<br>0.78%<br>0.76%<br>0.76%<br>ALLL to total adjusted loans held for investment, excluding PPP (non-GAAP)<br>0.78%<br>0.76%<br>0.77%<br>ACL to total loans held for investment (GAAP)<br>0.86%<br>0.83%<br>0.82%<br>ACL to total adjusted loans held for investment, excluding PPP (non-GAAP)<br>0.86%<br>0.83%<br>0.83%<br>ALLOWANCE FOR CREDIT LOSS RATIOS AND TOTAL ADJUSTED LOANS
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