Atlantic Union Bankshares Corporation (NYSE:AUB) Q3 2021 Earnings Conference Call October 25, 2021 9:00 AM ET Company Participants John Asbury - President, Chief Executive Officer Maria Tedesco - President, Atlantic Union Bank Robert Gorman - Executive Vice President, Chief Financial Officer David Ring - Head of Commercial Banking Shawn O’Brien - Head of Consumer Banking Bill Cimino - Senior Vice President, Investor Relations Conference Call Participants Casey Whitman - Piper Sandler Catherine Mealor - KBW ...

Financial Performance - Net income available to common shareholders for Q3 2021 was $716 million, a decrease of $108 million from the prior quarter[20] - Common EPS, diluted, decreased to $094 in Q3 2021 from $105 in Q2 2021[19] - The Return on Tangible Common Equity (ROTCE) was 1879% for Q3 2021, compared to 2144% for Q2 2021[19] - The efficiency ratio increased to 5695% in Q3 2021 from 5442% in Q2 2021[19] - Net interest margin decreased to 305% in Q3 2021 from 315% in Q2 2021[19] Balance Sheet - Total assets were $199 billion as of September 30, 2021[8] - Loans totaled $131 billion as of September 30, 2021[8] - Deposits totaled $166 billion as of September 30, 2021[8] - Loans held for investment totaled $131 billion, a decrease of $558 million from the prior quarter, driven by approximately $3918 million of PPP loans that were forgiven and declines in commercial loan balances ex PPP of $165 million[31] - Total deposits decreased by $371 million, or approximately 09% annualized[31] Capital Management - The company repurchased 23 million shares for $827 million during the quarter[36] - The company paid dividends of $028 per common share, up 12% from the prior year[36]

Financial Performance - Net income for the three months ended June 30, 2021, was $85,384 thousand, up from $30,709 thousand in the same period of 2020, representing an increase of 178.5%[19] - The company reported a net income available to common shareholders of $135,639 thousand for the six months ended June 30, 2021, compared to $37,798 thousand for the same period in 2020, an increase of 258.5%[19] - Comprehensive income for the six months ended June 30, 2021, was $123,630 thousand, compared to $63,527 thousand for the same period in 2020, representing a 94.6% increase[20] - Net income for the six months ended June 30, 2021, was $85,384 thousand, up from $56,189 thousand in the prior year, reflecting a 52% growth[23] - Net income available to common shareholders for the second quarter of 2021 was $82.4 million, compared to $30.7 million for the same period in 2020[210] Earnings and Dividends - Basic earnings per common share for the three months ended June 30, 2021, was $1.05, compared to $0.39 for the same period in 2020, an increase of 169.2%[16] - Dividends declared per common share for the three months ended June 30, 2021, was $0.28, up from $0.25 in the same period of 2020[16] - The Company declared a quarterly dividend of $0.28 per share, which is a 12.0% increase from the dividend paid in the third quarter of 2020[187] Asset and Liability Management - Total assets as of December 31, 2020, amounted to $19,628,449 thousand[13] - Total deposits as of December 31, 2020, were $15,722,765 thousand, indicating a strong liquidity position[13] - The total stockholders' equity as of June 30, 2021, was $2,747,597 thousand, an increase from $2,709,732 thousand at the end of the first quarter of 2021[23] - The carrying value of cash and cash equivalents was reported at $865,170,000, matching its fair value[175] Credit Quality and Loan Performance - Provision for credit losses for the three months ended June 30, 2021, was $(27,414) thousand, a significant improvement compared to $(34,200) thousand for the same period in 2020[16] - The allowance for loan and lease losses decreased to $118,261 thousand as of June 30, 2021, from $160,540 thousand on December 31, 2020, showing a reduction of about 26.4%[65] - The percentage of total loans classified as nonaccrual was 0.30%, with a total of $42,448 in nonaccrual loans[70] - Troubled Debt Restructurings (TDRs) decreased to $19.3 million, down from $20.6 million, with an allowance of $800,000 for the current period[71] Loan Portfolio and Delinquency - Total loans held for investment, net of deferred fees and costs, was $13,697,929 thousand as of June 30, 2021, a decrease from $14,021,314 thousand on December 31, 2020, representing a decline of approximately 2.3%[65] - The total amount of loans in the Commercial Real Estate - Owner Occupied category was $2,128,909, with $7,128 classified as nonaccrual[69] - The total number of loans 30-59 days past due in the Consumer segment was 3,561 in 2021, compared to 30 in 2020, highlighting a significant increase in early-stage delinquencies[90] Securities and Investments - The total fair value of AFS securities as of June 30, 2021, was $2,873,405,000[175] - The total unrealized losses for AFS securities as of June 30, 2021, were $(11,538), with specific losses attributed to various categories of securities[45] - The fair value of held-to-maturity (HTM) securities was $611,476,000, including significant unobservable inputs[175] - The company utilized third-party valuation services for its securities portfolio, primarily relying on ICE Data Services[168] Shareholder Actions - The Company repurchased approximately 1.1 million shares for $42.3 million under the new share repurchase program during the quarter ended June 30, 2021[148] - The Company authorized a Repurchase Program to buy up to $125 million worth of common stock, with $42.3 million spent on repurchasing 1.1 million shares during the quarter ended June 30, 2021[209] - The Company has approximately $82.7 million remaining under its authorized share repurchase program as of June 30, 2021[148] Operational Efficiency - Total noninterest expenses for the three months ended June 30, 2021, were $91,971 thousand, compared to $102,814 thousand for the same period in 2020, a decrease of 10.6%[16] - The Company completed the consolidation of 15 branches in 2020 and five additional branches in February 2021, incurring branch closure costs of approximately $1.1 million in the first quarter of 2021[208] - Pre-tax pre-provision adjusted operating earnings for the six months ended June 30, 2021, totaled $145.6 million, compared to $138.5 million for the same period in 2020[211]

Atlantic Union Bankshares Corporation (NYSE:AUB) Q2 2021 Earnings Conference Call July 22, 2021 9:00 AM ET Company Participants Bill Cimino - SVP of IR John Asbury - President and CEO Rob Gorman - Executive Vice President, CFO David Ring - Executive VP & Wholesale Banking Group Executive Maria Tedesco - President Conference Call Participants Brody Preston - Stephens Inc Eugene Koysman - Barclays Casey Whitman - Piper Sandler Laurie Hunsicker - Compass Point Catherine Mealor - KBW Operator Ladies and gentle ...

Interest Rate Sensitivity - As of March 31, 2021, the Company reported a net interest income sensitivity increase of 14.71% with a +300 basis points change in yield curve compared to 11.05% in the previous year[324]. - The Company’s economic value of equity showed a change of +5.79% with a +300 basis points change in yield curve as of March 31, 2021, compared to -2.88% in the previous year[327]. - The Company is more asset sensitive as of March 31, 2021, indicating that net interest income would increase with an immediate rise in market rates[325]. - The Company’s earnings simulation model estimates net interest income sensitivity to interest rate changes, with a projected increase of 4.76% for a +100 basis points change in rates[324]. - The Company’s overall interest sensitivity risk is governed by policies based on expectations of future interest rate movements and economic conditions[320]. - The Company’s economic value simulation uses discounted cash flow analysis to assess the fair value of assets and liabilities under different interest rate environments[326]. Internal Controls and Management - The Company’s management evaluated the effectiveness of disclosure controls and procedures as of March 31, 2021, concluding they were effective at the reasonable assurance level[329]. - There have been no changes in internal control over financial reporting that materially affected the Company during the quarter ended March 31, 2021[331]. Legal Proceedings - The Company believes that ongoing legal proceedings will not have a material adverse effect on its financial condition or results of operations[333].

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $53.2 million, with earnings per share of $0.67, down approximately $3.2 million or $0.05 per common share from the fourth quarter [29] - Reported return on equity for the first quarter was 8.4%, down from 8.8% in the prior quarter [29] - Non-GAAP adjusted operating earnings available to common shareholders in the first quarter was $64.8 million, with earnings per common share of $0.82, down approximately $8.1 million or $0.11 per common share from the fourth quarter [30] Business Line Data and Key Metrics Changes - The company closed five branches in the quarter, reducing the total number of branches by 20, or 13% since the same time last year [9] - Commercial loan growth was relatively flat excluding PPP loans, with commercial line utilization dropping one percentage point over the quarter to 25% [22] - The loan book showed a decline in commercial loan balances of $16 million or 4.6% annualized, and reductions in consumer loan balances of $66 million or 80% on an annualized basis [43] Market Data and Key Metrics Changes - The unemployment rate in Virginia improved to 5.1% in March, down from 5.6% in December, and is 90 basis points better than the national average [16] - Total deposits stood at $16.3 billion, an increase of $575 million or approximately 15% annualized from the prior quarter [45] - The overall decline in consumer loan balances was driven by continued pay downs in the HELOC and residential mortgage loan portfolios [44] Company Strategy and Development Direction - The company aims to become the premier Mid Atlantic bank, focusing on soundness, profitability, and growth [7] - The management is optimistic about organic growth and potential M&A opportunities, particularly due to disruptions at larger competitors [11] - The company is investing in projects to improve efficiency and scalability, with a focus on enhancing the customer experience [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit quality, noting minimal credit losses and a positive economic outlook due to government stimulus and vaccine rollout [21] - The company expects loan growth in the second half of the year to be better than the first half, potentially reaching 4% to 5% for the full year [23] - Management remains focused on mitigating credit risk while positioning for success in a recovering economy [24] Other Important Information - The total allowance for credit losses was $155.7 million, with a decrease of $14.8 million due to lower expected losses [31] - Noninterest expense declined to $111.9 million in the first quarter, down from $121.7 million in the prior quarter [40] - The effective tax rate for the first quarter increased to 16.8% from 15.1% in the fourth quarter [42] Q&A Session Summary Question: Inquiry about expense outlook and expected returns on investments - Management indicated that the annual run rate of expenses is expected to be around $92 million, with returns from investments anticipated to materialize in the second half of the year and more significantly in 2022 [48][52] Question: Discussion on net interest income and funding side - Management expects continued compression in earning asset yields but noted a steepening of the curve that could mitigate some of the compression [55][59] Question: Inquiry about M&A appetite and geographic focus - Management expressed interest in M&A opportunities, particularly in regions where they see growth potential, while maintaining a focus on organic growth [71]

Atlantic Union Bankshares Corporation (NYSE:AUB) Q4 2020 Results Conference Call January 26, 2021 9:00 AM ET Company Participants Bill Cimino - Senior Vice President, Investor Relations John Asbury - President, Chief Executive Officer & Director Rob Gorman - Executive Vice President & Chief Financial Officer Dave Ring - Head of Commercial Banking Doug Woolley - Chief Credit Officer Conference Call Participants Casey Whitman - Piper Sandler Eugene Koysman - Barclays Stuart Lotz - KBW Laurie Hunsicker - Compa ...