Atlantic Union Bankshares (AUB) - 2024 Q4 - Annual Results

Financial Performance - For Q4 2024, Atlantic Union reported net income of $54.8 million, with adjusted operating earnings of$61.4 million, resulting in adjusted diluted earnings per share of $0.67[1][2] - For the full year 2024, net income available to common shareholders was$197.3 million, with adjusted operating earnings of $241.3 million, leading to adjusted diluted earnings per share of$2.74[2] - Net income available to common shareholders for the year ended December 31, 2024, was $197,263,000, compared to$189,950,000 in 2023, indicating a 4% increase[35] - Net income for the year ended December 31, 2024, was $209,131, compared to$201,818 for the previous year, representing a year-over-year increase of 3.1%[48] - The company reported a net income available to common shareholders (GAAP) of $54,818 thousand for the three months ended December 31, 2024, compared to$53,940 thousand for the same period in 2023, reflecting a modest increase of 1.6%[38] Asset and Liability Management - Total assets decreased to $24.6 billion as of December 31, 2024, a decline of approximately 3.5$24,585,323, a decrease from $24,803,723 as of September 30, 2024, and an increase from$21,166,197 as of December 31, 2023[47] - Total liabilities stood at $21,793,902 thousand, compared to$21,501,009 thousand in the prior quarter[49] - The company’s total stockholders' equity as of December 31, 2024, was $3,142,879, a decrease from$3,182,416 as of September 30, 2024, and an increase from $2,556,327 as of December 31, 2023[47] Loans and Credit Quality - Nonperforming assets (NPAs) as a percentage of total loans held for investment (LHFI) increased to 0.32$58.4 million[7][8] - The allowance for credit losses (ACL) was $193.7 million at December 31, 2024, representing an increase of$16.1 million from the prior quarter[10][11] - The company recorded a provision for credit losses of $17.5 million in Q4 2024, significantly higher than$2.6 million in the previous quarter[13] - The ratio of NPAs to total LHFI increased to 0.32% as of December 31, 2024, from 0.24% a year earlier, indicating a decline in asset performance[37] - The allowance for loan and lease losses (ALLL) as a percentage of total LHFI was 0.97% as of December 31, 2024, compared to 0.85% a year earlier, showing an improvement in asset quality[37] Income and Expenses - Noninterest income rose to $35.2 million in Q4 2024, driven by an increase in loan-related interest rate swap fees[14] - Noninterest expense increased to$129.7 million in Q4 2024, primarily due to merger-related costs associated with the Sandy Spring acquisition[15][16] - Total noninterest expenses for the year ended December 31, 2024, were $507,534, compared to$430,371 in the previous year, indicating an increase of 17.9%[48] - The efficiency ratio (FTE) improved to 59.35% in Q4 2024 from 62.09% in Q4 2023, showing enhanced operational efficiency[35] - The efficiency ratio for Q4 2024 was 59.35%, compared to 56.43% in Q3 2024 and 58.82% in Q4 2023, indicating a decline in operational efficiency[39] Capital and Dividends - The Common equity Tier 1 capital ratio was 9.96% as of December 31, 2024, up from 9.77% in the prior quarter and 9.84% a year earlier[24] - The Company declared a cash dividend of $0.34 per common share, a$0.02 increase or approximately 6.3% from both the prior quarter and the same quarter last year[26] - The company’s ending tangible common equity (non-GAAP) as of December 31, 2024, was $1,677,906 thousand, up from$1,445,576 thousand in the previous year, indicating a growth of 16.0%[38] Growth and Acquisitions - The company completed the acquisition of American National Bankshares Inc. on April 1, 2024, and announced the proposed acquisition of Sandy Spring Bancorp, Inc. on October 21, 2024[3] - The increase in LHFI from the prior year was primarily due to the American National acquisition[20] - The increase in total deposits from the prior year was related to the addition of the American National acquired deposits[22] Market and Economic Indicators - Interest and dividend income for Q4 2024 was $319,204,000, compared to$259,497,000 in Q4 2023, representing a 23% increase year-over-year[35] - The cost of deposits increased to 2.48% in Q4 2024 from 2.23% in Q4 2023, indicating rising funding costs[35] - The total allowance for credit losses (ACL) increased to $193,685 thousand as of December 31, 2024, compared to$177,628 thousand a year earlier, reflecting a growth of 9.5%[37] Operational Metrics - Average assets for the year were $24,971,836 thousand, compared to$20,853,306 thousand in the previous year, reflecting a growth of 19.8%[36] - The leverage ratio (Tier 1 capital to average assets) is at 9.29%, down from 9.63% a year earlier[36] - The return on average assets (ROA) for Q4 2024 was 0.92%, compared to 1.08% in Q4 2023, reflecting a decline in profitability[35]