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): February 7, 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 7.01 Regulation FD Disclosure.

Attached as Exhibit 99.1 is a handout containing information that the members of Atlantic Union Bankshares Corporation (the “Company”) management will use during meetings with investors, analysts, and other interested parties to assist their understanding of the Company from time to time during the first quarter of 2022. Other presentations and related materials will be made available as they are presented. This handout is also available under the Presentations link in the Investor Relations section of the Company’s website at http://investors.atlanticunionbank.com. Exhibit 99.1 is incorporated by reference into this Item 7.01.

The information disclosed in or incorporated by reference into this Item 7.01, including Exhibit 99.1, is furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description of Exhibit
99.1		Atlantic Union Bankshares Corporation investor presentation.
104		Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document

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: February 7, 2022	By:	/s/ Robert M. Gorman
		Robert M. Gorman
		Executive Vice President and
		Chief Financial Officer

Exhibit 99.1

Investor<br>Presentation<br>Nasdaq: AUB<br>February<br>-<br>March 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, including without<br>limitation, statements<br>regarding Atlantic Union Bankshares<br>Corporation’s (“Atlantic Union” or the “Company”) outlook<br>on future economic conditions and the impact of<br>the COVID<br>-<br>19<br>pandemic, are statements that include, projections, predictions, expectations, or beliefs about future events or results that<br>ar<br>e not statements of<br>historical fact. Such forward<br>-<br>looking statements are based on various assumptions as of the time they are made, and are inherent<br>ly subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, tha<br>t m<br>ay cause actual<br>results, performance, or achievements to be materially different from those expressed or implied by such forward<br>-<br>looking stateme<br>nts. Forward<br>-<br>looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,”<br>“believe,”<br>“estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar<br>me<br>aning or other statements concerning opinions or judgment of the Company and its management about future events. Although the<br>Co<br>mpany believes that<br>its expectations with respect to forward<br>-<br>looking statements are based upon reasonable assumptions within the bounds of its exist<br>ing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of,<br>or<br>trends<br>affecting, the Company will not differ materially from any projected future results, performance, or achievements expressed o<br>r i<br>mplied by such forward<br>-<br>looking statements. Actual future results, performance, achievements or trends may differ materially from<br>historical results<br>or those anticipated depending on a variety of factors, including, but not limited to the effects of or changes in:<br>• changes in interest rates;<br>• general economic and financial market conditions, in the United States generally and particularly in the markets in which t<br>he<br>Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase i<br>n<br>unemployment levels and slowdowns in economic growth, including as a result of COVID<br>-<br>19;<br>• the quality or composition of the loan or investment portfolios and changes therein;<br>• demand for loan products and financial services in the Company’s market area;<br>• the Company’s ability to manage its growth or implement its growth strategy;<br>• the effectiveness of expense reduction plans;<br>• the introduction of new lines of business or new products and services;<br>• the Company’s ability to recruit and retain key employees;<br>• the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;<br>• real estate values in the Bank’s lending area;<br>• an insufficient ACL;<br>• changes in accounting principles;<br>• the Company’s liquidity and capital positions;<br>• concentrations of loans secured by real estate, particularly commercial real estate;<br>• the effectiveness of the Company’s credit processes and management of the Company’s credit risk;<br>• the Company’s ability to compete in the market for financial services and increased competition from fintech companies;<br>• technological risks and developments, and cyber threats, attacks, or events;<br>• the potential adverse effects of unusual and infrequently occurring events, such as weather<br>-<br>related disasters, terrorist acts<br>or<br>public health events (such as COVID<br>-<br>19), and of governmental and societal responses thereto; these potential adverse effects may<br>include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Co<br>mpa<br>ny, on<br>the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply c<br>hai<br>ns<br>and methods used to distribute products and services, on incidents of cyberattack and fraud, on the Company’s liquidity or ca<br>pit<br>al<br>positions, on risks posed by reliance on third<br>-<br>party service providers, on other aspects of the Company's business operations an<br>d<br>on financial markets and economic growth;<br>• the effect of steps the Company takes in response to COVID<br>-<br>19, the severity and duration of the pandemic, the uncertainty<br>regarding new variants of COVID<br>-<br>19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact<br>of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened imp<br>act<br>it has on many of the risks described herein;<br>• the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, lega<br>l a<br>nd<br>compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates,<br>• performance by the Company’s counterparties or vendors;<br>• deposit flows;<br>• the availability of financing and the terms thereof;<br>• the level of prepayments on loans and mortgage<br>-<br>backed securities;<br>• legislative or regulatory changes and requirements, including the impact of the CARES Act, as amended by the CAA, and other<br>legislative and regulatory reactions to COVID<br>-<br>19;<br>• potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising f<br>rom<br>the<br>Company’s participation in and administration of programs related to COVID<br>-<br>19, including, among other things, the CARES Act, as<br>amended by the CAA;<br>• the effects of changes in federal, state or local tax laws and regulations;<br>• monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Fede<br>ral<br>Reserve;<br>• changes to applicable accounting principles and guidelines; and<br>• other 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<br>10<br>-<br>K<br>for the year ended December 31, 2020 and related disclosures in<br>other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward<br>-<br>look<br>ing statements made in this presentation are expressly qualified by the cautionary statements contained or referred to<br>herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not h<br>ave<br>the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely<br>too heavily on the forward<br>-<br>looking statements contained in this presentation. Forward<br>-<br>looking statements speak only as of the da<br>te they are made and the Company does not undertake any obligation to update, revise or clarify these forward<br>-<br>looking<br>statements, 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<br>Bankshares<br>Corporation<br>Headquartered in Richmond, Virginia, Atlantic Union<br>Bankshares<br>Corporation (Nasdaq:<br>AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 130 branches<br>and approximately 150 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; Dixon,<br>Hubard<br>,<br>Feinour<br>& Brown, Inc., which provides investment advisory services; Atlantic Union Financial<br>Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC,<br>which offers various lines of insurance products.
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4<br>Largest Regional Banking Company Headquartered in Virginia<br>Our Company<br>Soundness	Profitability	Growth<br>Data as of<br>12/31/2021<br>, market capitalization as of<br>1/25/2022; branch data as of 3/1/2022<br>1) Regional bank defined as having less than $50 billion in assets; rank determined by asset<br>size; data<br>per S&P Global Market Intelligence<br>Highlights ($bn)<br>Branch Footprint<br>AUB (<br>114)<br>AUB LPO (3)<br>•<br>Statewide Virginia footprint<br>of<br>109<br>branches in all major markets<br>•<br>#1<br>regional bank<br>1<br>deposit market share in<br>Virginia<br>•<br>Strong balance sheet<br>and capital levels<br>•<br>Committed to<br>top<br>-<br>tier financial<br>performance<br>with a highly experienced<br>management team able to execute change<br>4<br>$<br>20.1<br>Assets<br>$<br>13.2<br>Loans<br>$<br>16.6<br>Deposits<br>$<br>3<br>..1<br>Market Capitalization<br>Virginia<br>Maryland<br>North Carolina<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Washington<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Fredericksburg<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Virginia Beach<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Norfolk<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Richmond<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Charlottesville<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Roanoke<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Staunton<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Baltimore<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Charlotte<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Greensboro<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh<br>Raleigh
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5<br>Our Value<br>Proposition<br>Strong Growth Potential<br>Organic & acquisition opportunities<br>Financial<br>Strength<br>Solid balance sheet<br>& capital levels<br>Leading Regional<br>Presence<br>Unique value in<br>branch footprint across<br>attractive market<br>Attractive<br>Financial Profile<br>Solid dividend yield<br>& payout ratio with<br>earnings upside<br>Peer<br>-<br>Leading<br>Performance<br>Committed to top<br>-<br>tier<br>financial performance
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6<br>Our Markets<br>Source: SNL Financial; excludes branches greater than $5 billion<br>Deposit data as of 6/30/2021; Fredericksburg market defined as Caroline, Fredericksburg City, King George,<br>Spotsylvania and Stafford counties; all other markets per MSA definitions in SNL<br>6<br>Richmond<br>State Capital, Fortune 500<br>headquarters (7), VCU & VCU Medical<br>Center<br>•<br>$4.2 billion in<br>-<br>market deposits and total<br>deposit market share of 11.5%<br>Fredericksburg<br>Defense and security contractors,<br>Healthcare, Retail, Real Estate<br>development<br>•<br>$1.7 billion in<br>-<br>market deposits and total<br>deposit market share of 27.6%<br>Charlottesville<br>University of Virginia, High<br>-<br>tech and<br>professional businesses, Real Estate<br>development<br>•<br>$748 million in<br>-<br>market deposits and total<br>deposit market share of 11.4%<br>Virginia Beach<br>Norfolk<br>Military, Shipbuilding, Fortune 500<br>headquarters (3), Tourism<br>•<br>$1.6 billion in<br>-<br>market deposits and total<br>deposit market share of 5.1%<br>Roanoke<br>Blacksburg<br>Virginia Tech, Healthcare, Retail<br>•<br>$1.4 billion in<br>-<br>market deposits and total<br>deposit market share of 9.5%<br>Northern Virginia<br>Nation’s Capital, Fortune 500<br>headquarters (12), Defense and<br>security contractors, Non<br>-<br>profit<br>Associations (lobbyists), HQ2<br>•<br>$5.7 billion in<br>-<br>market deposits and total<br>deposit market share of 5.5%<br>Diversity Supports<br>Growth In Virginia
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7<br>Virginia’s Bank<br>Source: SNL Financial and FDIC deposit data<br>Deposit and branch data as of 6/30/21; pro forma for announced<br>transactions and AUB branch closings<br>Note: Excludes branches with deposits greater than $5.0 billion<br>Virginia: All Banks<br>Virginia: Banks Headquartered in VA<br>Statewide Branch Footprint Brings Unique Franchise Value<br>Rank<br>Institution<br>Deposits ($mm)<br>Market Share (%)<br>Branches<br>1<br>Truist<br>Financial Corp<br>$54,711<br>23.7%<br>365<br>2<br>Wells Fargo & Co<br>37,181<br>16.1<br>226<br>3<br>Bank of America Corp.<br>24,666<br>10.7<br>118<br>4<br>Atlantic Union Bankshares Corp<br>16,278<br>7.1<br>109<br>5<br>TowneBank<br>9,752<br>4.2<br>32<br>6<br>United Bankshares Inc.<br>9,320<br>4.0<br>85<br>7<br>Capital<br>One Financial Corp.<br>8,906<br>3.9<br>27<br>8<br>PNC Financial Services Group Inc.<br>5,672<br>2.5<br>95<br>9<br>Carter Bank & Trust<br>3,285<br>1.4<br>57<br>10<br>The Toronto<br>Dominion Bank<br>2,998<br>1.3<br>23<br>Top 10 Banks<br>$<br>172,769<br>74.9<br>1,137<br>All Institutions in Market<br>$230,684<br>100.00<br>2,054<br>Rank<br>Institution<br>Deposits ($mm)<br>Market Share (%)<br>Branches<br>1<br>Atlantic Union Bankshares Corp.<br>$16,278<br>20.5%<br>109<br>2<br>TowneBank<br>9,752<br>12.3<br>32<br>3<br>Capital One Financial Corp.<br>8,906<br>11.2<br>27<br>4<br>Blue Ridge Bankshares<br>3,743<br>4.7<br>36<br>5<br>Carter Bank & Trust<br>3,285<br>4.1<br>57<br>6<br>Burke & Herbert Bank & Trust Co.<br>2,906<br>3.7<br>24<br>7<br>Primis<br>Financial Corp<br>2,512<br>3.2<br>38<br>8<br>American National Bankshares, Inc.<br>2,026<br>2.6<br>18<br>9<br>First Bancorp Inc.<br>1,974<br>2.5<br>21<br>10<br>C&F Financial Corp<br>1,850<br>2.3<br>31<br>Top 10 Banks<br>$53,232<br>67.1<br>393<br>All Institutions in Market<br>$79,492<br>100.00<br>829
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8<br>Virginia Is Among the Most Attractive Markets<br>in USA<br>Source: SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics,<br>Fortune.com<br>, U.S. News & World Report;<br>Forbes, CNBC, U.S. Small Business Administration, USA Today; Business<br>Facilities<br>8<br>ranked Virginia the<br>Best State for<br>Business<br>two years in a row<br>ranked Virginia the<br>4<br>th<br>Best<br>State for Business<br>•<br>3<br>rd<br>in Labor Supply<br>•<br>3<br>rd<br>in Regulatory Environment<br>•<br>1<br>st<br>in Quality of Life<br>ranked Virginia<br>8<br>th<br>for Opportunity<br>•<br>11<br>th<br>for Economic opportunity<br>•<br>5<br>th<br>for Equality<br>•<br>12<br>th<br>for Education<br>•<br>Virginia is home to 723,962 Small<br>Businesses<br>–<br>99.5% of Virginia<br>businesses<br>ranked Virginia 7<br>th<br>of<br>America’s<br>Best States to Live In<br>Virginia rated 1<br>st<br>in<br>Best Business<br>Climate, Tech Talent Pipeline,<br>Cybersecurity<br>#<br>State<br>#<br>Companies<br>1<br>New York<br>53<br>2<br>California<br>53<br>3<br>Texas<br>49<br>4<br>Illinois<br>38<br>5<br>Ohio<br>25<br>6<br>Pennsylvania<br>24<br>7<br>Virginia<br>22<br>8<br>Florida<br>20<br>#<br>State<br>Pop. (mm)<br>1<br>California<br>39.7<br>2<br>Texas<br>29.6<br>3<br>Florida<br>21.9<br>4<br>New York<br>19.4<br>5<br>Pennsylvania<br>12.8<br>6<br>Illinois<br>12.6<br>7<br>Ohio<br>11.7<br>8<br>Georgia<br>10.8<br>#<br>State<br>HHI ($)<br>1<br>District of Columbia<br>91,414<br>2<br>Maryland<br>90,160<br>3<br>New Jersey<br>89,080<br>4<br>Hawaii<br>87,979<br>5<br>Massachusetts<br>87,126<br>6<br>California<br>82,565<br>7<br>Connecticut<br>81,962<br>8<br>Washington<br>81,728<br>#<br>State<br>GDP ($bn)<br>1<br>California<br>2,664<br>2<br>Texas<br>1,734<br>3<br>New York<br>1,420<br>4<br>Florida<br>944<br>5<br>Illinois<br>738<br>6<br>Pennsylvania<br>684<br>7<br>Ohio<br>590<br>8<br>Georgia<br>537<br>Household Income ($)<br>2021 Population (mm)<br>#<br>State<br>Pop. (mm)<br>9<br>North Carolina<br>10.6<br>10<br>Michigan<br>10.0<br>11<br>New Jersey<br>8.9<br>12<br>Virginia<br>8.6<br>13<br>Washington<br>7.8<br>14<br>Arizona<br>7.4<br>15<br>Massachusetts<br>6.9<br>#<br>State<br>HHI ($)<br>9<br>New Hampshire<br>81,460<br>10<br>Alaska<br>80,135<br>11<br>Virginia<br>79,124<br>12<br>Utah<br>78,645<br>13<br>Colorado<br>78,070<br>14<br>Minnesota<br>76,329<br>15<br>New York<br>74,462<br>GDP ($bn)<br>Fortune 500 Companies<br>#<br>State<br>#<br>Companies<br>9<br>Georgia<br>18<br>9<br>Massachusetts<br>18<br>9<br>Minnesota<br>18<br>12<br>Michigan<br>17<br>13<br>New Jersey<br>16<br>14<br>Connecticut<br>14<br>15<br>North Carolina<br>13<br>#<br>State<br>GDP ($bn)<br>9<br>New Jersey<br>536<br>10<br>Washington<br>533<br>11<br>North Carolina<br>500<br>12<br>Massachusetts<br>499<br>13<br>Virginia<br>474<br>14<br>Michigan<br>446<br>15<br>Maryland<br>353
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9<br>4Q 2021 Highlights and 2022 Outlook<br>Return to Loan Growth<br>•<br>11.7% annualized loan growth, ex<br>-<br>PPP,<br>during Q4 and 1.6% loan growth, ex<br>-<br>PPP, for 2021<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>Q4 2021<br>•<br>2021 Full year Net Charge<br>-<br>offs at 1 bps<br>Positioning for Long Term<br>•<br>Consolidating 16 branches in Q1 2022<br>–<br>12% of branch network. Since 2020 will<br>have consolidated 35 branches or ~25%<br>•<br>Closing operations center and<br>rationalizing office space<br>Differentiated Client<br>Experience<br>•<br>Continued progress on digital strategy<br>•<br>Consumer and Small Business industry<br>award recognition<br>Organizational Design<br>•<br>Appointed Maria Tedesco Chief<br>Operating Officer<br>in addition to her<br>current position as Bank President<br>•<br>Moving center of gravity closer to the<br>customer<br>Capitalize on<br>Strategic Opportunities<br>•<br>Drive organic growth and performance of<br>the core banking franchise<br>•<br>Leverage financial technology and<br>FinTech<br>partnerships to generate new<br>sources of income and new capabilities<br>•<br>Selectively<br>consider M&A as a<br>supplemental strategy<br>9
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10<br>Caring<br>Working together toward<br>common goals, acting with<br>kindness, respect and a<br>genuine concern for others.<br>Courageous<br>Speaking openly, honestly and<br>accepting our challenges and<br>mistakes as opportunities to<br>learn and grow.<br>Committed<br>Driven to help our clients,<br>Teammates and company<br>succeed, doing what is right and<br>accountable for our actions.<br>Our Core Values<br>Culture<br>—<br>HOW<br>we come together<br>and interact as a team to<br>accomplish our business<br>and societal goals.<br>Diversity, Equity, and Inclusion Statement<br>Atlantic Union Bank embraces diversity of thought and identity to<br>better serve our stakeholders and achieve our purpose. We<br>commit to cultivating a welcoming workplace where Teammate<br>and customer perspectives are valued and respected.
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11<br>11<br>Customer Experience Successes<br>For J.D. Power 2021 award information, visit<br>jdpower.com<br>/awards<br>Atlantic Union is #1 among small businesses in the South Region with $1<br>-<br>$10mm in revenue. Atlantic Union<br>believes that the successful launch of PPP and support of the Small Business Community during pandemic likely<br>contributed to this accolade.<br>Greenwich Excellence 2020 Awards<br>Based on over 12,000 interviews with small businesses across the country<br>2020 Greenwich Excellence Award<br>Winner, South Region<br>(Overall Satisfaction)<br>95<br>74<br>70<br>69<br>Atlantic Union<br>Bank<br>Big Bank #1<br>Big Bank #2<br>Big Bank #3<br>J.D. Power 2021 U.S. Retail Banking<br>Satisfaction Study<br>(Overall Satisfaction, Mid<br>-<br>Atlantic)<br>AUB Overall<br>(<br>Verint<br>/Foresee)<br>2019<br>2020<br>YOY<br>Overall Satisfaction<br>86<br>87<br>+1<br>Recommend<br>AUB<br>85<br>87<br>+2<br>Increase Business<br>84<br>86<br>+2<br>Make Banking Easy<br>87%<br>88%<br>+1%<br>Net Promoter<br>Score (NPS)<br>57<br>61<br>+4<br>AUB sees year over year improvements in Net<br>Promoter Score, making banking easier and<br>other key customer metrics.<br>Recently Recognized By:<br>854<br>832<br>832<br>821<br>817<br>814<br>808<br>807<br>806<br>804<br>Atlantic Union Bank<br>Region Average<br>Proven Track Record of Superior Customer Satisfaction
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12<br>Balance Sheet Trends (GAAP)<br>Data as of or for the twelve months ended each respective<br>year<br>Loans<br>($mm)<br>Deposits<br>($mm)<br>Assets<br>($mm)<br>$6,307<br>$7,142<br>$9,716<br>$12,611<br>$14,021<br>$13,196<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>16<br>%<br>CAGR<br>$6,379<br>$6,992<br>$9,971<br>$13,305<br>$15,723<br>$16,611<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>21<br>%<br>CAGR<br>$8,427<br>$9,315<br>$13,766<br>$17,563<br>$19,628<br>$20,065<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>19<br>%<br>CAGR
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13<br>Strong Track Record of Performance (GAAP) pre and post 2020<br>COVID<br>-<br>19 Impact<br>Data as of or for the twelve months ended each respective<br>year<br>Earnings Per Share Available to Common Shareholders<br>($)<br>Return on Equity (ROE)<br>(%)<br>Return on Assets (ROA)<br>(%)<br>Efficiency Ratio<br>(%)<br>$1.77<br>$1.67<br>$2.22<br>$2.41<br>$1.93<br>$3.26<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>7.79%<br>7.07%<br>7.85%<br>7.89%<br>6.14%<br>9.68%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>65.81%<br>66.09%<br>63.62%<br>62.37%<br>60.19%<br>61.91%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>0.96%<br>0.83%<br>1.11%<br>1.15%<br>0.83%<br>1.32%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021
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14<br>Strong Track Record of Performance (Non<br>-<br>GAAP) pre and post<br>2020 COVID<br>-<br>19 Impact<br>Data as of or for the twelve months ended each respective<br>year<br>(1) Non<br>-<br>GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix<br>--<br>Reconciliation of No<br>n<br>-<br>GAAP Disclosures”<br>Adjusted Operating Earnings Per Share Available to Common<br>Shareholders, diluted<br>($)<br>(1)<br>Adjusted Operating Return on Tangible Common Equity<br>(ROTCE)<br>(%)<br>(1)<br>Adjusted Operating Return on Assets (ROA)<br>(%)<br>(1)<br>Adjusted Operating Efficiency Ratio (FTE)<br>(%)<br>(1)<br>$1.76<br>$1.90<br>$2.71<br>$2.84<br>$2.21<br>$3.53<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>12.12%<br>12.17%<br>17.40%<br>16.61%<br>12.64%<br>18.07%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>61.45%<br>60.78%<br>52.74%<br>51.79%<br>52.18%<br>54.52%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>0.96%<br>0.94%<br>1.36%<br>1.35%<br>0.94%<br>1.43%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021
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15<br>Credit Loss Trends (GAAP)<br>Data as of or for the twelve months ended each respective year<br>Note<br>: The Company adopted<br>ASU<br>2016<br>-<br>13, Financial Instruments and Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1<br>, 2020.<br>Provision for Credit Losses<br>($mm)<br>Provision for Credit Losses as % of Average Loans<br>(%)<br>Net Charge<br>-<br>offs<br>($mm)<br>Net Charge<br>-<br>offs as % of Average Loans<br>(%)<br>$8,883<br>$10,802<br>$13,736<br>$21,092<br>$87,141<br>($60,888)<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>0.15%<br>0.16%<br>0.14%<br>0.18%<br>0.63%<br>(0.45%)<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>0.09%<br>0.15%<br>0.12%<br>0.17%<br>0.08%<br>0.01%<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>$5,530<br>$10,055<br>$11,062<br>$20,876<br>$11,438<br>$1,865<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021
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16<br>Allowance<br>For Credit Loss (ACL) and<br>Provision for Credit Losses<br>Note: Figures may not foot due to rounding<br>16<br>Q4 2021<br>Macroeconomic Forecast<br>Moody’s<br>December 2021<br>Baseline Forecast<br>•<br>US GDP averages 4.4% growth in 2022 and 2.9%<br>in 2023. The<br>national unemployment<br>rate<br>averages<br>3.6<br>% in 2022 and 3.5% in<br>2023;<br>declining from 5.5% in 2021.<br>•<br>Virginia’s unemployment rate averages 2.6% over<br>the 2<br>-<br>year forecast; roughly consistent with prior<br>quarter’s forecast.<br>•<br>2<br>-<br>year reasonable and supportable period;<br>followed by reversion to the historical loss average<br>over 2 years.<br>Q4 2021<br>Additional Considerations<br>Additional qualitative factors for COVID<br>-<br>19 sensitive<br>portfolios and adjustments to account for the<br>probability of worse<br>-<br>than Baseline economic<br>performance.<br>Regulatory Capital: Opted into 2 year CECL adoption capital impact delay with 25% of cumulative Day 2 impact<br>added back to Common Equity Tier 1 capital through 2021. 3<br>-<br>year regulatory CECL capital phase<br>-<br>in begins in<br>2022.<br>($mm)<br>Allowance<br>for Loan<br>& Lease Losses<br>Reserve for Unfunded<br>Commitments<br>Allowance for<br>Credit Losses<br>1/1/2020 CECL Opening<br>Balance % of loans<br>$90MM<br>..71%<br>$5MM<br>..04%<br>$95MM<br>..75%<br>CECL<br>Adoption through<br>Q3<br>2021<br>+$12MM<br>Increase attributable to COVID<br>-<br>19<br>sensitive portfolios<br>+$2MM<br>Increase due to higher expected<br>loss related to COVID<br>-<br>19<br>environment<br>+$14MM<br>$14 million build ($27 million<br>provision for credit losses less $13<br>million net charge<br>-<br>offs)<br>9<br>/30/2021<br>Ending Balance<br>% of loans<br>$102MM<br>(.77%;<br>..80% excl. PPP loans<br>)<br>$7MM<br>(.06%;<br>..06% excl. PPP loans<br>)<br>$109MM<br>(.83%;<br>..86% excl. PPP loans<br>)<br>Q4<br>2021<br>-<br>$2MM<br>Decrease due to favorable risk rating<br>migration; partially offset by higher<br>qualitative reserves and high loan<br>levels (excl. PPP loans)<br>+$<br>1<br>MM<br>Slight increase due to higher<br>unfunded commitments<br>-<br>$1MM<br>$1 million benefit from Provision for<br>Credit Losses and minimal net<br>charge<br>-<br>offs<br>12/31/2021<br>Ending Balance<br>% of loans<br>$<br>100MM<br>(.<br>76%;<br>..76%<br>excl. PPP loans<br>)<br>$8MM<br>(.06<br>%;<br>..07% excl. PPP loans<br>)<br>$<br>108MM<br>(.<br>82<br>%;<br>..83% excl. PPP loans<br>)
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17<br>Strong Capital Position at<br>December 31,<br>2021<br>Capital Ratio<br>Regulatory<br>Well Capitalized<br>Atlantic Union<br>Bankshares<br>Atlantic<br>Union<br>Bank<br>Common Equity Tier 1 Ratio (CET1)<br>7.0%<br>10.2%<br>13.0%<br>Tier 1 Capital Ratio<br>8.5%<br>11.3%<br>13.0%<br>Total Risk<br>Based<br>Capital Ratio<br>10.5%<br>14.2%<br>13.4%<br>Leverage Ratio<br>5.0%<br>9.0%<br>(<br>9.2%<br>ex. PPP)<br>10.4%<br>(<br>10.5%<br>ex. PPP)<br>Tangible Common Equity Ratio<br>(non<br>-<br>GAAP)<br>4<br>-<br>8.2%<br>(<br>8.3%<br>ex. PPP)<br>10.4%<br>(<br>10.5%<br>ex. PPP)<br>Figures may not foot due to rounding<br>4) Non<br>-<br>GAAP financial measure. For non<br>-<br>GAAP financial measures, see reconciliation to most directly<br>comparable GAAP measures in “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>Tangible common equity above 8.5% is considered<br>excess capital assuming “well capitalized” regulatory<br>capital ratios are maintained.<br>•<br>Excess capital can be deployed for share<br>repurchases, higher shareholder dividends<br>and/or acquisitions.<br>•<br>The Company’s capital ratios are well above<br>regulatory well capitalized levels as of<br>12/31/2021<br>..<br>Capital Management Actions<br>•<br>During the fourth quarter, the Company raised Tier 2<br>regulatory capital by issuing $250.0 million of 2.875%<br>fixed<br>-<br>to<br>-<br>floating rate subordinated notes with a<br>maturity date of December 15, 2031 and used a<br>portion of the net proceeds to repay its outstanding 5%<br>$150 million fixed<br>-<br>to<br>-<br>floating rate subordinated notes<br>that were due to mature in 2026<br>..<br>•<br>During<br>the<br>fourth<br>quarter, the Company<br>paid dividends<br>of<br>$171.88 per outstanding share of Series A<br>Preferred Stock<br>and<br>$0.28 per common share, up 12%<br>from the prior year’s dividend and consistent with the<br>prior quarter’s<br>dividend<br>..<br>•<br>On December 10, 2021,<br>the company<br>announced a<br>new $100<br>million share repurchase<br>authorization after<br>completing the prior $125 million repurchase<br>authorization during the third quarter.<br>Quarterly Roll Forward<br>Common Equity<br>Tier 1 Ratio<br>Tangible<br>Common<br>Equity Ratio<br>Tangible Book<br>Value per Share<br>At<br>9/30/21<br>10.37%<br>8.16%<br>$<br>20.55<br>Pre<br>-<br>Provision Net Income<br>0.30%<br>0.23%<br>0.58<br>After<br>-<br>Tax Provision<br>0.01%<br>-<br>0.01<br>CECL Transition Adjustment<br>(1)<br>-<br>-<br>-<br>Common Dividends<br>(2)<br>-<br>0.14%<br>-<br>0.11%<br>(<br>0.28)<br>Share Repurchases<br>-<br>-<br>-<br>AOCI &<br>Other Intangibles<br>0.03%<br>-<br>0.03%<br>(<br>0.07)<br>Asset Growth<br>-<br>0.32%<br>-<br>0.06%<br>-<br>At<br>12/31/21<br>–<br>Reported<br>10.24%<br>8.20%<br>$<br>20.79<br>PPP Loan Balances Impact<br>(3)<br>-<br>0.07%<br>-<br>At<br>12/31/21<br>–<br>Excluding PPP Balances<br>10.24%<br>8.26%<br>$<br>20.79<br>(1)<br>25% of the increase in ACL as compared to the Day 1 estimate of CECL<br>(2)<br>28 cents per share<br>(3)<br>Approximately<br>$150<br>million<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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18<br>Post<br>-<br>Pandemic<br>Financial Targets<br>Committed to top<br>-<br>tier<br>financial performance<br>13<br>%<br>–<br>15<br>%<br>Return on Tangible<br>Common Equity<br>1.1<br>%<br>–<br>1.3<br>%<br>Return on Assets<br>≤ 53<br>%<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>18<br>We<br>expect to<br>achieve these financial targets in 2022
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19<br>Our<br>Long<br>-<br>Term Strategic<br>Priorities<br>Diversify Loan Portfolio<br>and Revenue Streams<br>•<br>Increase Commercial lending growth<br>(Commercial & Industrial + Owner<br>Occupied Real Estate) in order to better<br>balance the total loan portfolio over time<br>•<br>Grow fee<br>-<br>based products and services<br>Grow Core<br>Funding<br>•<br>Fund loan growth with core<br>deposit<br>growth<br>•<br>Grow<br>core deposits with particular focus<br>on increasing commercial and small<br>business operating accounts<br>Manage to Higher Levels<br>of Performance<br>•<br>Achieve and sustain top tier financial<br>performance<br>•<br>Invest in talent, develop a culture of<br>coaching and development, and align<br>total rewards with corporate goals and<br>objectives<br>Strengthen Digital<br>Capabilities<br>•<br>Modernize customer experience with<br>more digital capabilities<br>•<br>Achieve digital parity with larger players<br>especially in mass market/mass affluent<br>•<br>Enhance features for wider usage and<br>resolve top customer requests<br>Make Banking<br>Easier<br>•<br>Create compelling products and services<br>•<br>Deliver high<br>-<br>tech and high<br>-<br>touch<br>experiences<br>•<br>Differentiated marketing highlighting our<br>capabilities<br>Capitalize on<br>Strategic Opportunities<br>•<br>Leverage commercial expertise and new<br>market opportunities<br>•<br>Seize on market disruption opportunities<br>19
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20<br>Appendix
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21<br>Virginia Market Highlights<br>Opportunity in Fast<br>-<br>Growing, Affluent Markets<br>Source: S&P Global Market Intelligence<br>Boxes denote county/city of operation<br>(1) Median HH Income projected for 2021<br>Top Counties in the U.S.<br>—<br>Projected Median HH Income ($000s)<br>(1)<br>Top 10 Counties in Virginia<br>—<br>Projected 5<br>-<br>Yr Pop. Growth to 2026<br>$149<br>$141<br>$138<br>$137<br>$135<br>$130<br>$<br>129<br>$129<br>$126<br>$125<br>Loudoun, VA<br>Falls Church, VA<br>Santa Clara, CA<br>San Mateo, CA<br>Marin, CA<br>Somerset, NJ<br>Arlington, VA<br>Fairfax, VA<br>Howard, MD<br>Douglas, CO<br>6.9%<br>6.6%<br>6.0%<br>5.8%<br>5.8%<br>5.7%<br>5.4%<br>5.1%<br>5.0%<br>4.9%<br>Loudoun, VA<br>New Kent, VA<br>Manassas Park, VA<br>(City)<br>Stafford, VA<br>Falls Church, VA<br>(City)<br>Fredericksburg, VA<br>(City)<br>Prince William, VA<br>Arlington, VA<br>Frederick, VA<br>James City, VA
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22<br>Our Presence in Key Markets<br>Source: S&P Global Market Intelligence<br>Note: Deposit data excludes branches with deposits greater than $5 billion<br>Deposit<br>as<br>of 6/30/21; pro forma for announced<br>transactions and AUB branch closures<br>(1) Northern Virginia includes only the Virginia branches of the Washington, Alexandria, and DC MSA<br>(2) Coastal Virginia includes the Virginia Beach, Norfolk, and Newport News MSA and the Outer Banks of North Carolina<br>Virginia<br>Richmond<br>Rank<br>Institution<br>Deposits ($mm)<br>Market<br>Share<br>(%)<br>Branches<br>1<br>Truist<br>Financial Corp<br>$54,711<br>23.7%<br>365<br>2<br>Wells Fargo & Co<br>37,181<br>16.1<br>226<br>3<br>Bank of America Corp.<br>24,666<br>10.7<br>118<br>4<br>Atlantic Union Bankshares Corp<br>16,278<br>7.1<br>109<br>5<br>TowneBank<br>9,752<br>4.2<br>32<br>6<br>United Bankshares Inc.<br>9,320<br>4.0<br>85<br>7<br>Capital<br>One Financial Corp.<br>8,906<br>3.9<br>27<br>8<br>PNC Financial Services Group Inc.<br>5,672<br>2.5<br>95<br>9<br>Carter Bank & Trust<br>3,285<br>1.4<br>57<br>10<br>The Toronto<br>-<br>Dominion Bank<br>2,998<br>1.3<br>23<br>Northern Virginia<br>(1)<br>Coastal Virginia<br>(2)<br>Rank<br>Institution<br>Deposits ($mm)<br>Market<br>Share<br>(%)<br>Branches<br>1<br>Truist<br>Financial Corp<br>$23,354<br>22.7%<br>125<br>2<br>Bank of America Corp.<br>15,575<br>15.1<br>61<br>3<br>Wells Fargo & Co.<br>13,593<br>13.2<br>84<br>4<br>Capital One Financial Corp.<br>8,906<br>8.7<br>27<br>5<br>United Bankshares Inc.<br>7,118<br>6.9<br>47<br>6<br>Atlantic Union Bankshares Corp.<br>5,683<br>5.5<br>24<br>7<br>PNC Financial Services Group Inc.<br>4,802<br>4.7<br>80<br>8<br>Toronto<br>-<br>Dominion<br>Bank<br>2,998<br>2.9<br>22<br>9<br>Burke & Herbert Bank & Trust Co.<br>2,906<br>2.8<br>24<br>10<br>Citigroup Inc.<br>1,840<br>1.8<br>6<br>Rank<br>Institution<br>Deposits ($mm)<br>Market<br>Share<br>(%)<br>Branches<br>1<br>Truist<br>Financial Corp.<br>$12,728<br>34.9%<br>58<br>2<br>Wells Fargo & Co.<br>8,744<br>24.0<br>51<br>3<br>Atlantic Union Bankshares Corp.<br>4,183<br>11.5<br>23<br>4<br>Bank of America Corp.<br>2,726<br>7.5<br>20<br>5<br>TowneBank<br>1,341<br>3.7<br>8<br>6<br>C&F Financial Corp.<br>1,202<br>3.3<br>15<br>7<br>Primis Financial Corp.<br>832<br>2.3<br>12<br>8<br>United Bankshares Inc.<br>821<br>2.3<br>12<br>9<br>Village Bank and Trust Financial Corp.<br>627<br>1.7<br>8<br>10<br>Blue Ridge Bankshares Inc.<br>536<br>1.5<br>7<br>Rank<br>Institution<br>Deposits ($mm)<br>Market<br>Share<br>(%)<br>Branches<br>1<br>TowneBank<br>$8,663<br>27.1%<br>27<br>2<br>Truist<br>Financial Corp.<br>6,285<br>19.7<br>58<br>3<br>Wells Fargo & Co.<br>6,180<br>19.3<br>36<br>4<br>Bank of America Corp.<br>4,164<br>13.0<br>27<br>5<br>Atlantic Union Bankshares Corp.<br>1,629<br>5.1<br>14<br>6<br>Old Point Financial Corp.<br>1,135<br>3.6<br>19<br>7<br>Southern<br>BancShares<br>(N.C.) Inc.<br>747<br>2.3<br>11<br>8<br>Chesapeake Financial Shares Inc.<br>678<br>2.1<br>8<br>9<br>The PNC Financial Services Group Inc.<br>546<br>1.7<br>11<br>10<br>Farmers Bankshares Inc.<br>500<br>1.6<br>8
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23<br>Diversified and Granular Loan Portfolio<br>Total Loan Portfolio $<br>13.2<br>billion at<br>December 31,<br>2021<br>Non<br>-<br>Owner Occupied CRE Composition<br>—<br>$<br>4.6<br>billion<br>Total Portfolio Characteristics<br>Duration<br>Q4<br>2021 Weighted Average Yield (Tax Equivalent)<br>1.2<br>years<br>3.81%<br>Figures may not total to 100% due to rounding<br>C&D<br>6.5%<br>Owner<br>Occupied CRE<br>15.1%<br>C&I<br>19.3%<br>Non<br>-<br>Owner<br>Occupied CRE<br>34.6%<br>1<br>-<br>4 Family<br>10.8%<br>Other<br>4.6%<br>Residential 1<br>-<br>4<br>family<br>-<br>Revolving<br>4.3%<br>Consumer<br>4.8%
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24<br>Attractive Core Deposit Base<br>Deposit Base Characteristics<br>Deposit Composition at<br>December 31,<br>2021<br>—<br>$16.6 billion<br>(1) Core deposits defined as total deposits less jumbo time deposits<br>•<br>Q4<br>2021 cost of deposits<br>–<br>12<br>bps<br>•<br>97% core deposits<br>(1)<br>•<br>56% transactional accounts<br>Non<br>-<br>Interest<br>Bearing<br>,<br>31%<br>NOW<br>,<br>25%<br>Money Market<br>,<br>26%<br>Retail Time<br>,<br>8%<br>Jumbo Time<br>,<br>3%<br>Savings<br>,<br>7%
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25<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>The Company has provided supplemental performance measures on a tax<br>-<br>equivalent, tangible, operating,<br>or adjusted basis<br>.. These non<br>-<br>GAAP<br>financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be c<br>ons<br>idered in<br>isolation or as a substitute for analysis of our results as reported under GAAP. In addition, the Company’s non<br>-<br>GAAP financial m<br>easures may not<br>be comparable to non<br>-<br>GAAP financial measures of other companies. The Company uses the non<br>-<br>GAAP financial measures discussed here<br>in in<br>its analysis of the Company’s performance. The Company’s management believes that these non<br>-<br>GAAP financial measures provide addi<br>tional<br>understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects o<br>f s<br>ignificant gains<br>and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlyin<br>g p<br>erformance.
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26<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Adjusted operating measures exclude merger and<br>rebranding<br>-<br>related costs<br>, nonrecurring tax expenses,<br>the gains or losses related to balance sheet<br>repositioning (principally composed of gains and<br>losses on debt extinguishment), gains or losses on<br>sale of securities, gains on the sale of Visa, Inc.<br>Class B common stock, as well as branch closing<br>and facility consolidation costs (principally composed<br>of real estate, leases and other assets write downs,<br>gains or losses on related real estate sales, as well<br>as severance associated with branch closing and<br>corporate expense reduction initiatives). The<br>Company believes these non<br>-<br>GAAP adjusted<br>measures provide investors with important<br>information about the continuing economic results of<br>the organization’s operations. Prior periods in this<br>presentation have<br>been adjusted for previously<br>announced branch closing and corporate expense<br>reduction initiatives<br>..<br>Tangible assets and tangible common equity are<br>used in the calculation of certain profitability,<br>capital,<br>and<br>per share ratios. The Company believes tangible<br>common equity and the related ratios are meaningful<br>measures of capital adequacy because they provide<br>a meaningful base for period<br>-<br>to<br>-<br>period and<br>company<br>-<br>company comparisons, which the<br>Company believes will assist investors in assessing<br>the capital of the Company and its ability to absorb<br>potential losses.<br>Additionally<br>, the Company believes that return on<br>tangible common equity (ROTCE) is a meaningful<br>supplement to GAAP financial measures and useful<br>to investors because it measures the performance of<br>a business consistently across time without regard to<br>whether components of the business were acquired<br>or developed internally.<br>(Dollars in thousands, except per share amounts)<br>2021<br>2020<br>2019<br>2018<br>2017<br>2016<br>Adjusted Operating Earnings<br>Net Income (GAAP)<br>263,917<br>$<br><br>158,228<br>$<br><br>193,528<br>$<br><br>146,248<br>$<br><br>72,923<br>$<br><br>77,476<br>$<br><br>Plus: Merger and rebranding-related costs, net of tax<br>-<br><br><br>-<br><br><br>27,395<br><br><br>32,065<br><br><br>4,405<br><br><br>-<br><br><br>Plus: Nonrecurring tax expenses<br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>6,250<br><br><br>-<br><br><br>Plus: Net loss related to balance sheet repositioning, net of tax<br>11,609<br><br><br>25,979<br><br><br>12,953<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Gain on sale of securities, net of tax<br>69<br><br><br>9,712<br><br><br>6,063<br><br><br>303<br><br><br>520<br><br><br>133<br><br><br>Less: Gain on Visa, Inc. Class B common stock, net of tax<br>4,058<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Plus: Branch closing and facility consolidation costs, net of tax<br>13,775<br><br><br>5,343<br><br><br>-<br><br><br>849<br><br><br>-<br><br><br>-<br><br><br>Adjusted operating earnings (non-GAAP)<br>285,174<br>$<br><br>179,838<br>$<br><br>227,813<br>$<br><br>178,859<br>$<br><br>83,058<br>$<br><br>77,343<br>$<br><br>Less: Dividends on preferred stock<br>11,868<br><br><br>5,658<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Adjusted operating earnings available to common shareholders (non-GAAP)<br>273,306<br>$<br><br>174,180<br>$<br><br>227,813<br>$<br><br>178,859<br>$<br><br>83,058<br>$<br><br>77,343<br>$<br><br>Earnings per share (EPS)<br>Weighted average common shares outstanding, diluted<br>77,417,801<br><br><br>78,875,668<br><br><br>80,263,557<br><br><br>65,908,573<br><br><br>43,779,744<br><br><br>43,890,271<br><br><br>EPS available to common shareholders, diluted (GAAP)<br>3.26<br>$<br><br>1.93<br>$<br><br>2.41<br>$<br><br>2.22<br>$<br><br>1.67<br>$<br><br>1.77<br>$<br><br>Adjusted operating EPS available to common shareholders, diluted (non-GAAP)<br>3.53<br>$<br><br>2.21<br>$<br><br>2.84<br>$<br><br>2.71<br>$<br><br>1.90<br>$<br><br>1.76<br>$<br><br>Return on assets (ROA)<br>Average assets<br>19,977,551<br>$<br><br>19,083,853<br>$<br><br>16,840,310<br>$<br><br>13,181,609<br>$<br><br>8,820,142<br>$<br><br>8,046,305<br>$<br><br>ROA (GAAP)<br>1.32%<br>0.83%<br>1.15%<br>1.11%<br>0.83%<br>0.96%<br>Adjusted operating ROA (non-GAAP)<br>1.43%<br>0.94%<br>1.35%<br>1.36%<br>0.94%<br>0.96%<br>Return on equity (ROE)<br>Adjusted operating earnings available to common shareholders (non-GAAP)<br>273,306<br>$<br><br>174,180<br>$<br><br>227,813<br>$<br><br>178,859<br>$<br><br>83,058<br>$<br><br>77,343<br>$<br><br>Plus: Amortization of intangibles, tax effected<br>10,984<br><br><br>13,093<br><br><br>14,632<br><br><br>10,143<br><br><br>3,957<br><br><br>4,687<br><br><br>Adjusted operating earnings available to common shareholders before amortization<br>of intangibles (non-GAAP)<br>284,290<br>$<br><br>187,273<br>$<br><br>242,445<br>$<br><br>189,002<br>$<br><br>87,015<br>$<br><br>82,030<br>$<br><br>Average common equity (GAAP)<br>2,725,330<br>$<br><br>2,576,372<br>$<br><br>2,451,435<br>$<br><br>1,863,216<br>$<br><br>1,030,847<br>$<br><br>994,785<br>$<br><br>Less: Average intangible assets<br>985,559<br><br><br>1,000,654<br><br><br>991,926<br><br><br>776,944<br><br><br>315,722<br><br><br>318,131<br><br><br>Less: Average perpetual preferred stock<br>166,356<br><br><br>93,658<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Average tangible common equity (non-GAAP)<br>1,573,415<br>$<br><br>1,482,060<br>$<br><br>1,459,509<br>$<br><br>1,086,272<br>$<br><br>715,125<br>$<br><br>676,654<br>$<br><br>ROE (GAAP)<br>9.68%<br>6.14%<br>7.89%<br>7.85%<br>7.07%<br>7.79%<br>Return on tangible common equity (ROTCE)<br>Net Income available to common shareholders (GAAP)<br>252,049<br>$<br><br>152,570<br>$<br><br>193,528<br>$<br><br>146,248<br>$<br><br>72,923<br>$<br><br>77,476<br>$<br><br>Plus: Amortization of intangibles, tax effected<br>10,984<br><br><br>13,093<br><br><br>14,632<br><br><br>10,143<br><br><br>3,957<br><br><br>4,687<br><br><br>Net Income available to common shareholders before amortization of intangibles<br>(non-GAAP)<br>263,033<br>$<br><br>165,663<br>$<br><br>208,160<br>$<br><br>156,391<br>$<br><br>76,880<br>$<br><br>82,163<br>$<br><br>ROTCE<br>16.72%<br>11.18%<br>14.26%<br>14.40%<br>10.75%<br>12.14%<br>Adjusted operating ROTCE (non-GAAP)<br>18.07%<br>12.64%<br>16.61%<br>17.40%<br>12.17%<br>12.12%<br>ADJUSTED OPERATING EARNINGS & FINANCIAL METRICS<br>For the years ended December 31,
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27<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>PPP adjustment impact excludes the SBA<br>guaranteed loans funded during 2020 and<br>2021. The Company believes loans held for<br>investment (net of deferred fees and costs),<br>excluding PPP is useful to investors as it<br>provides more clarity on the Company’s<br>organic growth. The Company believes that<br>the ALLL as a percentage of loans held for<br>investment (net of deferred fees and costs),<br>excluding PPP, is useful to investors because<br>of the size of the Company’s PPP<br>originations and the impact of the embedded<br>credit enhancement provided by the SBA<br>guarantee.
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28<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>The adjusted operating efficiency ratio (FTE)<br>excludes<br>merger<br>-<br>related costs, rebranding<br>costs<br>, the amortization of intangible assets,<br>gains or losses on sale of securities, gains on<br>the sale of Visa, Inc. Class B common stock,<br>gains or losses related to balance sheet<br>repositioning (principally composed of gains<br>and losses on debt extinguishment), as well<br>as branch closing and facility consolidation<br>costs. This measure is similar to the measure<br>utilized by the Company when analyzing<br>corporate performance and is also similar to<br>the measure utilized for incentive<br>compensation. The Company believes this<br>adjusted measure provides investors with<br>important information about the combined<br>economic results of the organization’s<br>operations. Prior periods in this presentation<br>have been adjusted for previously announced<br>branch closing and corporate expense<br>reduction initiatives<br>(Dollars in thousands)<br>2021<br>2020<br>2019<br>2018<br>2017<br>2016<br>Noninterest expense (GAAP)<br>419,195<br>$<br><br>413,349<br>$<br><br>418,340<br>$<br><br>337,767<br>$<br><br>225,668<br>$<br><br>213,090<br>$<br><br>Less: Merger-related costs<br>-<br><br><br>-<br><br><br>27,824<br><br><br>39,728<br><br><br>5,393<br><br><br>-<br><br><br>Less: Rebranding costs<br>-<br><br><br>-<br><br><br>6,455<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Amortization of intangible assets<br>13,904<br><br><br>16,574<br><br><br>18,521<br><br><br>12,839<br><br><br>6,088<br><br><br>7,210<br><br><br>Less: Losses related to balance sheet repositioning<br>14,695<br><br><br>31,116<br><br><br>16,397<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Branch closing and facility consolidation costs<br>17,437<br><br><br>6,764<br><br><br>-<br><br><br>1,075<br><br><br>-<br><br><br>-<br><br><br>Adjusted operating noninterest expense (non-GAAP)<br>373,159<br>$<br><br>358,895<br>$<br><br>349,143<br>$<br><br>284,125<br>$<br><br>214,187<br>$<br><br>205,880<br>$<br><br>Net interest income (GAAP)<br>551,260<br>$<br><br>555,298<br>$<br><br>537,872<br>$<br><br>426,691<br>$<br><br>279,007<br>$<br><br>263,966<br>$<br><br>Net interest income (FTE) (non-GAAP)<br>563,851<br><br><br>566,845<br><br><br>548,993<br><br><br>434,886<br><br><br>290,774<br><br><br>275,394<br><br><br>Noninterest income (GAAP)<br>125,806<br>$<br><br>131,486<br>$<br><br>132,815<br>$<br><br>104,241<br>$<br><br>62,429<br>$<br><br>59,849<br>$<br><br>Plus: Losses related to balance sheet repositioning<br>-<br><br><br>(1,769)<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Less: Gain on sale of securities<br>87<br><br><br>12,294<br><br><br>7,675<br><br><br>383<br><br><br>800<br><br><br>205<br><br><br>Less: Gain on Visa, Inc. Class B common stock<br>5,137<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Adjusted operating noninterest income (non-GAAP)<br>120,582<br>$<br><br>120,961<br>$<br><br>125,140<br>$<br><br>103,858<br>$<br><br>61,629<br>$<br><br>59,644<br>$<br><br>Efficiency ratio (GAAP)<br>61.91%<br>60.19%<br>62.37%<br>63.62%<br>66.09%<br>65.81%<br>Adjusted operating efficiency ratio (FTE) (non-GAAP)<br>54.52%<br>52.18%<br>51.79%<br>52.74%<br>60.78%<br>61.45%<br>ADJUSTED OPERATING EFFICIENCY RATIO<br>For the years ended December 31,
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29<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>Tangible assets, tangible common equity,<br>and adjusted<br>leverage ratio are used<br>in the calculation of certain profitability, capital, and per share ratios. The<br>Company believes tangible assets, tangible common equity, adjusted leverage<br>ratio and the related ratios are meaningful measures of capital adequacy<br>because they provide a meaningful base for period<br>-<br>to<br>-<br>period and company<br>-<br>to<br>-<br>company comparisons, which the Company believes will assist investors in<br>assessing the capital of the Company and its ability to absorb potential losses.<br>(Dollars in thousands, except per share amounts)<br>Atlantic Union<br>Bankshares<br>Atlantic Union<br>Bank<br>Tangible Assets<br>Ending Assets (GAAP)<br>20,064,796<br>$<br><br>19,999,535<br>$<br><br>Less: Ending goodwill<br>935,560<br><br><br>935,560<br><br><br>Less: Ending amortizable intangibles<br>43,312<br><br><br>43,312<br><br><br>Ending tangible assets (non-GAAP)<br>19,085,924<br>$<br><br>19,020,663<br>$<br><br>Less: PPP loans<br>150,363<br><br><br>150,363<br><br><br>Tangible assets, excl PPP (non-GAAP)<br>18,935,561<br>$<br><br>18,870,300<br>$<br><br>Tangible Common Equity<br>Ending equity (GAAP)<br>2,710,071<br>$<br><br>2,957,377<br>$<br><br>Less: Ending goodwill<br>935,560<br><br><br>935,560<br><br><br>Less: Ending amortizable intangibles<br>43,312<br><br><br>43,312<br><br><br>Less: Perpetual preferred stock<br>166,357<br><br><br>-<br><br><br>Ending tangible common equity (non-GAAP)<br>1,564,842<br>$<br><br>1,978,505<br>$<br><br>Average common equity (GAAP)<br>2,715,610<br>$<br><br>2,951,964<br>$<br><br>Less: Average goodwill<br>935,560<br><br><br>935,560<br><br><br>Less: Average amortizable intangibles<br>44,866<br><br><br>44,866<br><br><br>Less: Average perpetual preferred stock<br>166,356<br><br><br>-<br><br><br>Average tangible common equity (non-GAAP)<br>1,568,828<br>$<br><br>1,971,538<br>$<br><br>Common equity to assets (GAAP)<br>12.7%<br>14.8%<br>Tangible common equity to tangible assets (non-GAAP)<br>8.2%<br>10.4%<br>Tangible common equity to tangible assets, excl PPP (non-GAAP)<br>8.3%<br>10.5%<br>Book value per common share (GAAP)<br>33.80<br>$<br><br>Tangible book value per common share (non-GAAP)<br>20.79<br>$<br><br>Adjusted Leverage Ratio<br>Tier 1 Capital<br>1,736,107<br>$<br><br>1,990,753<br>$<br><br>Total average assets for leverage ratio<br>19,259,756<br>$<br><br>19,203,955<br>$<br><br>Less: Average PPP loans<br>288,204<br><br><br>288,204<br><br><br>Adjusted average assets for leverage ratio<br>18,971,552<br>$<br><br>18,915,751<br>$<br><br>Leverage Ratio<br>9.0%<br>10.4%<br>Leverage Ratio, excl PPP<br>9.2%<br>10.5%<br>TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND ADJUSTED<br>LEVERAGE RATIO<br>As of December 31, 2021
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30<br>Reconciliation of Non<br>-<br>GAAP Disclosures<br>PPP adjustment impact excludes the SBA<br>guaranteed loans funded during 2020 and<br>2021. The Company believes loans held for<br>investment (net of deferred fees and costs),<br>excluding PPP is useful to investors as it<br>provides more clarity on the Company’s<br>organic growth. The Company believes that<br>the provision for loan losses and net charge<br>offs, each as a percentage of average loans<br>held for investment excluding PPP, is useful<br>to investors because of the impact of the<br>embedded credit enhancement provided by<br>the SBA guarantee.<br>(Dollars in thousands)<br>2021<br>2020<br>2019<br>2018<br>2017<br>2016<br>Provision for credit losses (GAAP)<br>(60,888)<br>$<br><br>87,141<br>$<br><br>21,092<br>$<br><br>13,736<br>$<br><br>10,802<br>$<br><br>8,883<br>$<br><br>Net charge-offs<br>1,865<br><br><br>11,438<br><br><br>20,876<br><br><br>11,062<br><br><br>10,055<br><br><br>5,530<br><br><br>Average loans held for investment (net of deferred fees and costs) (GAAP)<br>13,639,325<br>$<br><br>13,777,467<br>$<br><br>11,949,171<br>$<br><br>9,584,785<br>$<br><br>6,701,101<br>$<br><br>5,956,125<br>$<br><br>Less: Average PPP adjustments (net of deferred fees and costs)<br>864,814<br><br><br>1,091,921<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>-<br><br><br>Total adjusted average loans (non-GAAP)<br>12,774,511<br>$<br><br>12,685,546<br>$<br><br>11,949,171<br>$<br><br>9,584,785<br>$<br><br>6,701,101<br>$<br><br>5,956,125<br>$<br><br>Provision for credit losses as % of average loans (GAAP)<br>(0.45%)<br>0.63%<br>0.18%<br>0.14%<br>0.16%<br>0.15%<br>Provision for credit losses as % of average loans, adjusted for PPP (non-GAAP)<br>(0.48%)<br>0.69%<br>0.18%<br>0.14%<br>0.16%<br>0.15%<br>Net charge-offs as % of average loans (GAAP)<br>0.01%<br>0.08%<br>0.17%<br>0.12%<br>0.15%<br>0.09%<br>Net charge-offs as % of average loans, adjusted for PPP (non-GAAP)<br>0.01%<br>0.09%<br>0.17%<br>0.12%<br>0.15%<br>0.09%<br>CREDIT LOSS METRICS<br>For the years ended December 31,
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