Company Overview - Atlantic Union (AUB) is headquartered in Glen Allen and has experienced a price change of -9.69% this year [2] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 3.88%, which is higher than the Banks - Northeast industry's yield of 2.98% and the S&P 500's yield of 1.6% [2] Dividend Performance - The current annualized dividend of $1.28 represents a 4.9% increase from the previous year [2] - Over the past five years, Atlantic Union has increased its dividend four times on a year-over-year basis, achieving an average annual increase of 6.60% [2] - The company's current payout ratio is 43%, indicating that it paid out 43% of its trailing 12-month earnings per share as dividends [2] Earnings Expectations - The Zacks Consensus Estimate for Atlantic Union's earnings in 2024 is $3.20 per share, reflecting an expected increase of 8.47% from the previous year [3] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [4] - AUB is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [4]

RICHMOND, Va.--(BUSINESS WIRE)--The Board of Directors (the “Board”) of Atlantic Union Bankshares Corporation (the “Company”) has declared a quarterly dividend of $0.32 per share of common stock, which is the same as the fourth quarter of 2023 and an approximately 7% increase from the dividend in the first quarter of 2023. Based on the Company’s common stock closing price of $35.22 on January 25, 2024, the dividend yield is approximately 3.6%. The common stock dividend is payable on February 23, 2024 to com ...

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yie ...

Atlantic Union Bankshares Corporation (NYSE:AUB) Q4 2023 Earnings Conference Call January 23, 2024 9:00 AM ET Company Participants Bill Cimino - Senior Vice President of Investor Relations John Asbury - President and Chief Executive Officer Robert Gorman - Executive Vice President and Chief Financial Officer David Ring - Executive Vice President and Wholesale Banking Group Executive Douglas Woolley - Executive Vice President and Chief Credit Officer Conference Call Participants Casey Whitman - Piper Sandler ...

Atlantic Union (AUB) reported $187.22 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 2.7%. EPS of $0.78 for the same period compares to $0.90 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $179.72 million, representing a surprise of +4.17%. The company delivered an EPS surprise of +4.00%, with the consensus EPS estimate being $0.75.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Atlantic Union (AUB) came out with quarterly earnings of $0.78 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4%. A quarter ago, it was expected that this holding company for Atlantic Union Bank would post earnings of $0.76 per share when it actually produced earnings of $0.80, delivering a surprise of 5.26%.Over the last fo ...

Kirkikis Earnings of Atlantic Union Bankshares Corporation (NYSE:AUB) will likely increase in 2024 on the back of loan growth. The upcoming acquisition of American National and organic means will likely drive loan growth. On the other hand, pressure on the margin will limit earnings growth. Overall, I'm expecting the company to report earnings of $2.50 per share for 2023 and $3.02 per share for 2024. The year-end target price suggests a small upside from the current market price. Based on the total expected ...

Financial Performance - The Company reported a significant change in its financial condition and results of operations, which should be evaluated in conjunction with its consolidated financial statements and prior reports[194]. - Net income available to common shareholders for Q3 2023 was $51.1 million, with basic and diluted EPS of $0.68, compared to $55.1 million and $0.74 for Q3 2022[223]. - Net interest income for Q3 2023 was $151.9 million, an increase of $1.2 million from Q3 2022, while the net interest margin decreased to 3.27%[227]. - For the first nine months of 2023, net interest income was $457.5 million, an increase of $37.1 million from the same period of 2022[229]. - Noninterest income rose to $27,094 thousand, a 5.9% increase from $25,584 thousand year-over-year, driven by a $27.7 million gain from a sale-leaseback transaction[240]. - Adjusted operating earnings for Q3 2023 were $59.8 million, with adjusted diluted operating EPS of $0.80, compared to $55.1 million and $0.74 in Q3 2022[223]. Assets and Liabilities - As of September 30, 2023, total assets increased to $20.7 billion, up $275.1 million or approximately 1.8% from December 31, 2022[225]. - Total liabilities increased by $259.0 million or approximately 1.9% (annualized) to $18.3 billion as of September 30, 2023, compared to December 31, 2022[272]. - Total deposits reached $16.8 billion, an increase of $854.8 million or approximately 7.2% from December 31, 2022, driven by a $1.6 billion increase in interest-bearing deposits[225]. - Total short-term and long-term borrowings decreased by $688.0 million or 40.3% to $1.0 billion as of September 30, 2023, compared to December 31, 2022[274]. - Liquid assets totaled $5.6 billion, accounting for 27.2% of total assets, while liquid earning assets were $5.4 billion, or 29.2% of total earning assets[289]. Loans and Credit Quality - The loan portfolio (LHFI) net of deferred fees and costs increased to $15.3 billion as of September 30, 2023, compared to $14.4 billion at December 31, 2022[294]. - The allowance for credit losses (ACL) increased by $16.5 million to $140.9 million due to economic uncertainty and net loan growth[298]. - Nonperforming assets (NPAs) totaled $28.8 million, reflecting a 6.1% increase from $27.1 million at December 31, 2022, with NPAs as a percentage of total LHFI remaining stable at 0.19%[300]. - The company reported past due LHFI still accruing interest of $40.6 million, or 0.27% of total LHFI, up from $30.0 million or 0.21% at December 31, 2022[306]. - The company continues to focus on soundly underwritten loans to qualifying borrowers, mitigating risks in concentrated portfolios such as commercial real estate[295]. Interest Income and Expense - Interest and dividend income rose to $694.95 million, a $236.59 million increase compared to the same period in 2022[229]. - Interest expense increased significantly to $237.48 million, up by $199.53 million from the previous year[229]. - The cost of interest-bearing liabilities rose to 2.42%, an increase of 199 bps from 0.43% in the prior year[229]. - The yield on interest-earning assets increased to 5.09%, up from 3.44% in the same period of 2022, reflecting a rise of 165 bps[229]. Strategic Initiatives and Mergers - The pending merger with American National is expected to bring strategic gains and cost savings, although there are risks associated with regulatory approvals and market conditions[198]. - The Company incurred pre-tax merger costs of approximately $2.0 million related to the proposed merger with American National Bankshares Inc.[219]. - The Company initiated strategic cost-saving measures expected to reduce annual expenses by approximately $17 million, incurring pre-tax expenses of $8.7 million in Q3 2023[220]. Regulatory and Accounting Changes - The Company does not expect the recent accounting pronouncement (ASU No. 2023-02) to have a significant impact on its consolidated financial statements[211]. - The Company is allowed to phase in the impact of adopting the CECL methodology over a three-year period that began in 2022 and ends in 2024[325]. Risk Factors - The Company is subject to various risks, including changes in market interest rates, economic conditions, and regulatory changes that could affect its operations[198]. - The company remains cautious about future economic conditions, including inflation and interest rates, which may impact NPAs[299]. Branch and ATM Network - The Company has 109 branches and 123 ATMs across Virginia, Maryland, and North Carolina as of September 30, 2023[212].

Financial Data and Key Metrics Changes - The reported net income available to common shareholders was $51.1 million, with earnings per common share at $0.68, while adjusted operating earnings were $59.8 million or $0.80 per common share, reflecting an increase of 7.9% from the previous quarter and 8.5% year-over-year [25][26] - Adjusted operating return on tangible common equity rose to 18.3% from 17% in the prior quarter, and adjusted operating return on assets increased to 1.21%, up 5 basis points from the previous quarter [25][26] - Total deposits grew by 9.1% annualized for the quarter, reaching $16.8 billion, driven by increases in interest-bearing customer deposits and broker deposits [31] Business Line Data and Key Metrics Changes - Annualized loan growth was 5.7% during the third quarter, led by growth in commercial loans, with year-to-date loan growth at 7.7% annualized [17][31] - The loan portfolio yield increased to 5.84%, up 22 basis points from the previous quarter, while the tax equivalent net interest margin was 3.35%, a decrease of 10 basis points from the prior quarter [27][28] Market Data and Key Metrics Changes - Virginia's unemployment rate improved to 2.5% in August, down from 2.9% in May, remaining below the national average of 3.8% [13] - The lending pipeline is slightly higher than a year ago, indicating a healthy macroeconomic environment in the company's footprint [12][13] Company Strategy and Development Direction - The company announced a merger agreement to acquire American National Bankshares, expected to close in Q1 2024, which aims to enhance financial performance and expand market presence [8][10] - The company is focused on generating positive operating leverage, with a strategy to grow revenue faster than expenses, supported by structural expense reductions [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic outlook, anticipating a mild recession but expecting a favorable macroeconomic environment in their markets [12][20] - The company remains resilient and expects a good finish to the year, with a focus on sustainable, profitable growth [21][33] Other Important Information - The company undertook a sale-leaseback transaction of 27 properties, generating cash proceeds of approximately $46 million and a pre-tax gain of $27.7 million [23][24] - The total allowance for credit losses was $140.9 million, reflecting an increase due to loan growth and economic uncertainty [26] Q&A Session Summary Question: Expectations for margin compression in Q4 - Management expects further margin compression of 5 to 10 basis points in Q4, with a potential trough in the first quarter around 3.25% [36][37] Question: Loan production rates - New loan production is expected to average around 7%, with variable rate loans closer to 8% and fixed-rate loans slightly over 6% [39][40] Question: Shared national credit exposure - The company has a small exposure to shared national credits, primarily with known Virginia-based corporations, and does not engage in secondary issuances [42][43] Question: Fee growth outlook - Fee growth is expected to be in the range of 2% to 4%, driven by net client growth and seasonal impacts [46][47] Question: Credit normalization expectations - Management projects a normalization of charge-offs to 15 to 20 basis points annually, with potential drivers including higher interest rates and recessionary factors [64][66]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents Atlantic Union Bankshares Corporation's unaudited consolidated financial statements and notes for periods ending June 30, 2023 [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets, deposits, and stockholders' equity increased by June 30, 2023, reflecting growth in net loans and deposits Consolidated Balance Sheet Highlights (unaudited) | (In Millions) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$20,602.3** | **$20,461.1** | | Cash and cash equivalents | $428.3 | $319.9 | | Securities available for sale, at fair value | $2,182.4 | $2,741.8 | | Loans held for investment, net | $14,946.2 | $14,338.4 | | **Total Liabilities** | **$18,177.9** | **$18,088.4** | | Total deposits | $16,412.0 | $15,931.7 | | Total borrowings (short & long-term) | $1,320.3 | $1,708.7 | | **Total Stockholders' Equity** | **$2,424.5** | **$2,372.7** | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Net income decreased in Q2 and the first half of 2023 due to higher interest expenses and increased provision for credit losses, despite growth in interest income Key Income Statement Data (unaudited) | (In Millions, except per share data) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $152.1 | $138.8 | $305.5 | $269.7 | | Provision for credit losses | $6.1 | $3.6 | $17.9 | $6.4 | | Noninterest income | $24.2 | $38.3 | $33.8 | $68.4 | | Noninterest expenses | $105.7 | $98.8 | $213.9 | $204.1 | | **Net income** | **$55.2** | **$62.2** | **$90.9** | **$105.9** | | Net income available to common shareholders | $52.3 | $59.3 | $85.0 | $100.0 | | **Diluted earnings per common share** | **$0.70** | **$0.79** | **$1.13** | **$1.33** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, financial statement line items, and significant events, including the adoption of ASU 2022-02 and the proposed merger with American National - The company adopted **ASU 2022-02** on January 1, 2023, which eliminated accounting guidance for Troubled Debt Restructurings (TDRs) and introduced new disclosure requirements for **Troubled Loan Modifications (TLMs)**[31](index=31&type=chunk) - On July 24, 2023, the Company entered into a **definitive merger agreement** with **American National Bankshares Inc.**, with the transaction expected to close in the first quarter of 2024[195](index=195&type=chunk) - The Board of Directors declared a **quarterly common stock dividend of $0.30 per share**, payable on August 25, 2023, and a preferred stock dividend of $171.88 per share (equivalent to $0.43 per depositary share), payable on September 1, 2023[196](index=196&type=chunk) - The company is in **settlement discussions with the Consumer Financial Protection Bureau (CFPB)** regarding its **overdraft practices** and policies, with a probable and estimable liability recorded as of June 30, 2023[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=70&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial performance, condition, and strategic initiatives, covering results of operations, financial condition, asset quality, and capital resources [Executive Overview & Recent Events](index=75&type=section&id=Executive%20Overview%20%26%20Recent%20Events) The company highlights strong capital and liquidity amidst industry volatility, detailing the proposed merger with American National, cost-saving measures, and a balance sheet repositioning strategy - Announced a **definitive merger agreement** with **American National Bankshares Inc.** on July 24, 2023, with the transaction expected to close in Q1 2024[215](index=215&type=chunk) - Executed **cost-saving measures** in Q2 2023, expected to reduce the annual expense run rate by **approximately $17 million**, resulting in $3.9 million of pre-tax expenses in Q2 2023[222](index=222&type=chunk) - In Q1 2023, the company executed a **balance sheet repositioning**, selling **AFS securities** with a book value of $505.7 million at a pre-tax loss of $13.4 million to reduce FHLB borrowings[223](index=223&type=chunk) - As of June 30, 2023, the company estimates that approximately **73.5% of its deposits were insured or collateralized**, and it maintained available liquidity to cover approximately **133% of uninsured and uncollateralized deposits**[219](index=219&type=chunk) [Results of Operations](index=78&type=section&id=Results%20of%20Operations) Net interest income increased in Q2 2023 due to margin expansion, while noninterest income decreased and noninterest expenses rose, primarily from higher salaries and benefits Net Interest Income and Margin (FTE, non-GAAP) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (FTE) | $155.8M | $142.3M | +$13.4M | | Net Interest Margin (FTE) | 3.45% | 3.24% | +21 bps | - Noninterest income for Q2 2023 **decreased by $14.1 million (36.8%)** YoY, primarily driven by a $9.1 million gain on the sale of DHFB in Q2 2022[240](index=240&type=chunk) - Noninterest expense for Q2 2023 **increased by $6.9 million (7.0%)** YoY, mainly due to a $6.7 million rise in salaries and benefits, which included severance charges[244](index=244&type=chunk) [Financial Condition](index=94&type=section&id=Financial%20Condition) Total assets increased slightly by June 30, 2023, driven by loan growth and deposit increases, while the investment portfolio decreased and borrowings were reduced - Total assets **increased by $141.2 million (1.4% annualized) to $20.6 billion** from Dec 31, 2022[262](index=262&type=chunk) - Loans held for investment (net) **grew by $617.8 million (8.6% annualized)** since year-end 2022[263](index=263&type=chunk) - Total deposits **increased by $480.3 million (6.1% annualized)**, with a $1.1 billion increase in interest-bearing deposits offsetting a $572.9 million decrease in demand deposits[266](index=266&type=chunk) - Total borrowings **decreased by $388.4 million (22.7%)** from year-end 2022, a result of the balance sheet repositioning strategy[267](index=267&type=chunk) [Asset Quality](index=101&type=section&id=Asset%20Quality) Asset quality remained strong and stable with nonperforming assets unchanged, while net charge-offs increased and the Allowance for Credit Losses grew due to loan growth and economic uncertainty Asset Quality Metrics | Metric | June 30, 2023 ($M) | December 31, 2022 ($M) | | :--- | :--- | :--- | | Nonperforming assets (NPAs) | $29.2 | $27.1 | | NPAs to total LHFI | 0.19% | 0.19% | | Allowance for Credit Losses (ACL) | $136.2 | $124.4 | | ACL to total LHFI | 0.90% | 0.86% | - Net charge-offs for the six months ended June 30, 2023, were **$6.1 million (0.08% of average loans)**, compared to $935,000 (0.01%) for the same period in 2022[303](index=303&type=chunk) - The provision for credit losses for the six months ended June 30, 2023 was **$17.9 million**, an increase from $6.4 million in the prior-year period, driven by economic uncertainty and loan growth[304](index=304&type=chunk) [Capital Resources](index=108&type=section&id=Capital%20Resources) The company's capital ratios remain strong and exceed regulatory minimums, with the tangible common equity to tangible assets ratio showing improvement Regulatory Capital Ratios (Estimates for Q2 2023) | Ratio | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Common equity Tier 1 capital ratio | 9.86% | 9.95% | | Tier 1 capital ratio | 10.81% | 10.93% | | Total capital ratio | 13.64% | 13.70% | | Leverage ratio | 9.64% | 9.42% | | Tangible common equity to tangible assets (+) | 6.66% | 6.43% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=113&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk, its primary market risk, and was asset-sensitive as of June 30, 2023, though less so than the prior year Interest Rate Sensitivity Analysis (Change in Net Interest Income) | Rate Shock | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | +300 bps | +7.47% | +11.73% | | +200 bps | +5.25% | +8.25% | | +100 bps | +2.89% | +4.65% | | -100 bps | -2.94% | -3.18% | - From a net interest income perspective, the Company was **less asset sensitive** as of June 30, 2023, compared to its position as of June 30, 2022[340](index=340&type=chunk) [Item 4. Controls and Procedures](index=116&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that as of June 30, 2023, the Company's disclosure controls and procedures were **effective at the reasonable assurance level**[344](index=344&type=chunk) - There were **no changes** during the quarter ended June 30, 2023, that have **materially affected**, or are reasonably likely to materially affect, the internal control over financial reporting[346](index=346&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=117&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including ongoing settlement discussions with the CFPB regarding historical overdraft practices - The company is in **settlement discussions with the CFPB** regarding alleged violations related to its **overdraft practices** and policies, which began in March 2023 and are ongoing[349](index=349&type=chunk) [Item 1A. Risk Factors](index=117&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, primarily focusing on the proposed merger with American National, including completion risks, regulatory challenges, and integration difficulties - **Failure to complete the merger** with American National could **negatively impact the company's stock price** and result in significant unrecovered expenses[352](index=352&type=chunk) - **Regulatory approvals** for the merger may not be received, may be delayed, or may impose conditions that could **adversely affect the combined company**[353](index=353&type=chunk)[355](index=355&type=chunk) - **Integrating with American National** may be more difficult, costly, or time-consuming than expected, and the company may **fail to realize the anticipated benefits and cost savings**[357](index=357&type=chunk)[358](index=358&type=chunk) - The **rising interest rate environment** could increase the magnitude of negative purchase accounting marks on American National's investment and loan portfolios, **diluting tangible book value**[361](index=361&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=121&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales and repurchased 2,985 shares in Q2 2023 for tax withholding, with no active share repurchase program - As of June 30, 2023, the Company **does not have an authorized share repurchase program**[366](index=366&type=chunk) Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased (1) | Average Price Paid per Share ($) | | :--- | :--- | :--- | | April 1 - April 30, 2023 | 421 | $34.05 | | May 1 - May 31, 2023 | 893 | $25.32 | | June 1 - June 30, 2023 | 1,671 | $26.97 | | **Total** | **2,985** | **$27.48** | (1) Shares were withheld upon vesting of restricted shares to satisfy tax withholding obligations [Item 6. Exhibits](index=122&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the merger agreement with American National and Sarbanes-Oxley certifications - **Key exhibits filed** include the **merger agreement with American National**, corporate governance documents, and **Sarbanes-Oxley certifications**[370](index=370&type=chunk)