Atlantic Union Bankshares (AUB) 8-K Atlantic Union Bankshares Reports Fourth Quarter Financial Results

Exhibit 99.1

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

Executive Vice President / Chief Financial Officer

ATLANTIC UNION BANKSHARES REPORTS FOURTH QUARTER FINANCIAL RESULTS

Richmond, Va., January 24, 2023 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (NYSE: AUB) reported net income available to common shareholders and adjusted operating earnings available to common shareholders⁽¹⁾ of $67.6 million and basic and diluted earnings per common share of $0.90 for the fourth quarter ended December 31, 2022. Pre-tax pre-provision adjusted operating earnings available to common shareholders⁽¹⁾ totaled $85.6 million for the fourth quarter ended December 31, 2022.

“Atlantic Union Bankshares delivered strong fourth quarter financial results as we hit our profitability and efficiency targets - with low double-digit annualized loan growth, strong credit quality, an expanding net interest margin and positive operating leverage,” said John C. Asbury, president and chief executive officer of Atlantic Union. “Our markets continue to show resiliency and positive dynamics, which combined with our asset sensitivity lead us to believe we are well-positioned for 2023.”

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

NET INTEREST INCOME

For the fourth quarter of 2022, net interest income was $163.8 million, an increase of $13.1 million from $150.7 million for the third quarter of 2022. Net interest income (FTE)⁽¹⁾ was $168.0 million in the fourth quarter of 2022, an increase of $13.4 million from the third quarter of 2022. The increases in net interest income and net interest income (FTE)⁽¹⁾ were primarily driven by higher loan yields on the Company’s variable rate loans due to rising market interest rates, average loan growth, and increases in investment income primarily due to higher yield on taxable securities. These increases were partially offset by an increase in interest expense due to higher cost of funds, primarily due to an increase in short-term interest rates on borrowings and deposits, increased use of short-term funding and higher average deposits from the prior quarter. The fourth quarter net interest margin and net interest margin (FTE)⁽¹⁾ increased 27 basis points from the prior quarter to 3.61% and 3.70%, respectively, at December 31, 2022. Earning asset yields increased by 66 basis points in the fourth quarter of 2022 compared to the third quarter of 2022 due to the impact of rising market interest rates on loans and investment securities yields. The cost of funds increased from the prior quarter by 39 basis points to 84 basis points at December 31, 2022, driven by higher deposit and borrowing costs as noted above.

The Company’s net interest margin (FTE) ⁽¹⁾ includes the impact of acquisition accounting fair value adjustments. Net accretion related to acquisition accounting was $1.3 million for the quarter ended December 31, 2022, representing an increase of $157,000 from the prior quarter. The four quarters of 2022 and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

	Loan		Deposit		Borrowings
	Accretion		Amortization		Amortization		Total
For the quarter ended March 31, 2022	$	2,253	$	(10)	$	(203)	$	2,040
For the quarter ended June 30, 2022		2,879		(11)		(207)		2,661
For the quarter ended September 30, 2022		1,326		(11)		(209)		1,106
For the quarter ended December 31, 2022		1,484		(12)		(209)		1,263
Total for the year ended December 31, 2022	$	7,942	$	(44)	$	(828)	$	7,070
For the years ending (estimated):
2023		3,169		(31)		(852)		2,286
2024		2,597		(4)		(877)		1,716
2025		2,036		(1)		(900)		1,135
2026		1,650		—		(926)		724
2027		1,259		—		(953)		306
Thereafter		6,423		—		(7,993)		(1,570)
Total remaining acquisition accounting fair value adjustments at December 31, 2022	$	17,134	$	(36)	$	(12,501)	$	4,597

ASSET QUALITY

Overview

Nonperforming assets (“NPAs”) as a percentage of loans decreased 2 basis points to 0.19% at December 31, 2022, compared to the prior quarter. Accruing past due loan levels as a percentage of total loans held for investment at December 31, 2022 totaled 21 basis points, which is consistent with September 30, 2022, and represents a 2 basis point decrease from December 31, 2021. Net charge-off levels remained low at 0.02% of total average loans (annualized) for the fourth quarter of 2022, consistent with the quarters ended September 30, 2022 and December 31, 2021. The allowance for credit losses (“ACL”) totaled $124.4 million at December 31, 2022, a $5.4 million increase from the prior quarter.

Nonperforming Assets

At December 31, 2022, NPAs totaled $27.1 million, a decrease of $1.5 million from September 30, 2022. The following table shows a summary of NPA balances at the quarter ended (dollars in thousands):

	December 31,		September 30,		June 30,		March 31,		December 31,
	2022		2022		2022		2022		2021
Nonaccrual loans	$	27,038	$	26,500	$	29,070	$	29,032	$	31,100
Foreclosed properties		76		2,087		2,065		1,696		1,696
Total nonperforming assets	$	27,114	$	28,587	$	31,135	$	30,728	$	32,796

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

	December 31,		September 30,		June 30,		March 31,		December 31,
	2022		2022		2022		2022		2021
Beginning Balance	$	26,500	$	29,070	$	29,032	$	31,100	$	35,472
Net customer payments		(1,805)		(3,725)		(2,472)		(4,132)		(5,068)
Additions		2,935		1,302		3,203		2,087		1,294
Charge-offs		(461)		(125)		(311)		(23)		(598)
Loans returning to accruing status		(131)		—		—		—		—
Transfers to foreclosed property		—		(22)		(382)		—		—
Ending Balance	$	27,038	$	26,500	$	29,070	$	29,032	$	31,100

Past Due Loans

Past due loans still accruing interest totaled $30.0 million or 0.21% of total loans held for investment at December 31, 2022, compared to $29.0 million or 0.21% of total loans held for investment at September 30, 2022, and $29.9 million or 0.23% of total loans held for investment at December 31, 2021. Of the total past due loans still accruing interest, $7.5 million or 0.05% of total loans held for investment were loans past due 90 days or more at December 31, 2022, compared to $7.4 million or 0.05% of total loans held for investment at September 30, 2022, and $9.1 million or 0.07% of total loans held for investment at December 31, 2021.

Allowance for Credit Losses

At December 31, 2022, the ACL was $124.4 million and included an allowance for loan and lease losses (“ALLL”) of $110.8 million and a reserve for unfunded commitments (“RUC”) of $13.6 million. The ACL at December 31, 2022 increased $5.4 million from September 30, 2022 due to increased uncertainty in the macroeconomic outlook and the impact of loan growth in the fourth quarter of 2022.

The ACL as a percentage of total loans was 0.86% at December 31, 2022, consistent with September 30, 2022. The ALLL as a percentage of total loans was 0.77% at December 31, 2022, compared to 0.78% at September 30, 2022.

Net Charge-offs

Net charge-offs were $810,000 or 0.02% of total average loans on an annualized basis for the quarter ended December 31, 2022, compared to $587,000 or 0.02% (annualized) for the third quarter of 2022, and $511,000 or 0.02% (annualized) for the fourth quarter of 2021. On a year-to-date basis through December 31, 2022, net charge-offs totaled $2.3 million or 0.02% of total average loans.

Provision for Credit Losses

For the quarter ended December 31, 2022, the Company recorded a provision for credit losses of $6.3 million, compared to a provision for credit losses of $6.4 million in the previous quarter, and a negative provision for credit losses of $1.0 million in the fourth quarter of 2021. The provision for credit losses for the fourth quarter of 2022 reflected a provision of $3.6 million for loan losses and a $2.7 million provision for unfunded commitments.

NONINTEREST INCOME

Noninterest income decreased $1.1 million to $24.5 million for the quarter ended December 31, 2022 from $25.6 million in the prior quarter primarily due to declines in equity method investment income, partially offset by increases in loan syndication, Small Business Administration (“SBA”) 7a, and foreign exchange revenues, each included within other operating income. In addition, mortgage banking income decreased $1.0 million from the prior quarter due to lower mortgage origination volumes and gain on sale margins, and bank owned life insurance income decreased $796,000, reflecting the impact of the prior quarter’s mortality benefit. These noninterest income category decreases were partially offset by increases in loan-related interest rate swap fees of $1.6 million due to an increase in average deal size among swaps executed in the current quarter.

NONINTEREST EXPENSE

Noninterest expense for the quarter ended December 31, 2022 decreased to $99.8 million from $99.9 million in the prior quarter. Notable noninterest expense activity in the fourth quarter of 2022 included a gain related to the sale and leaseback of an office building, refunds of prior period FDIC assessment expenses, costs related to the closure of five branches expected to close in the first quarter of 2023 and other restructuring expenses, the write-down of obsolete software, increased variable incentive compensation and profit-sharing expenses, as well as professional services increases related to strategic projects.

INCOME TAXES

The effective tax rate for the three months ended December 31, 2022 was 14.3%, compared to 17.0% for the three months ended September 30, 2022. The decrease in the effective tax rate reflects the impact of changes in the proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At December 31, 2022, total assets were $20.5 billion, an increase of $510.9 million or approximately 10.2% (annualized) from September 30, 2022, and an increase of $396.3 million or approximately 2.0% from December 31, 2021. Total assets increased from the prior quarter primarily due to the $530.4 million increase in total loans held for investment (net of deferred fees and costs) driven by loan growth, which was funded primarily by a $1.0 billion increase in short-term borrowings and partially by a $70.1 million decrease in cash and cash equivalents.

At December 31, 2022, loans held for investment (net of deferred fees and costs) totaled $14.4 billion, including $7.3 million in Paycheck Protection Program (“PPP”) loans, an increase of $530.4 million or 15.1% (annualized) from $13.9 billion, including $12.1 million in PPP loans, at September 30, 2022. Average loans held for investment (net of deferred fees and costs) totaled $14.1 billion at December 31, 2022, an increase of $384.0 million or 11.1% (annualized) from the prior quarter. Excluding PPP loans (net of deferred fees and costs)⁽¹⁾, adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $535.3 million or 15.3% (annualized) from September 30, 2022 and adjusted average loans increased $390.0 million or 11.3% (annualized) from the prior quarter. At December 31, 2022, loans held for investment (net of deferred fees and costs) increased $1.3 billion or 9.5% from December 31, 2021, and quarterly average loans increased $1.0 billion or 7.9% from the same period in the prior year. Excluding PPP loans (net of deferred fees and costs)⁽¹⁾, adjusted loans held for investment (net of deferred fees and costs) at December 31, 2022 increased $1.4 billion or 10.7% from December 31, 2021, and adjusted quarterly average loans during the fourth quarter of 2022 increased $1.3 billion or 10.3% from the fourth quarter of 2021.

At December 31, 2022, total deposits were $15.9 billion, a decrease of $614.5 million or approximately 14.7% (annualized) from September 30, 2022. Average deposits at December 31, 2022 increased from the prior quarter by $123.5 million or 3.0% (annualized). Total deposits at December 31, 2022 decreased $679.4 million or 4.1% from December 31, 2021, and quarterly average deposits during the fourth quarter of 2022 also decreased $249.5 million or 1.5% from the fourth quarter of 2021. Total deposits decreased from the prior quarter and prior year primarily due to the impact of customer behavior in response to inflation and higher market interest rates, in addition to seasonal outflows.

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

	December 31,		September 30,		December 31,
	2022		2022		2021
Common equity Tier 1 capital ratio (2)	9.95	%	9.96	%	10.24	%
Tier 1 capital ratio (2)	10.94	%	10.98	%	11.32	%
Total capital ratio (2)	13.70	%	13.80	%	14.17	%
Leverage ratio (Tier 1 capital to average assets) (2)	9.42	%	9.32	%	9.01	%
Common equity to total assets	10.78	%	10.60	%	12.68	%
Tangible common equity to tangible assets (1)	6.43	%	6.11	%	8.20	%

At December 31, 2022, the Company’s common equity to total assets capital ratio and tangible common equity to tangible assets capital ratio decreased from the prior year primarily due to the unrealized losses on the available for sale (“AFS”) securities portfolio recorded in other comprehensive income due to market interest rate increases, while these ratios increased from the prior quarter due to the increase in the value of the AFS securities portfolio, as long-term rates decreased during the fourth quarter of 2022.

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

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

⁽²⁾ All ratios at December 31, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

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

On January 18, 2023, the Company completed the transfer of the listing of its common stock and its depositary shares, each representing a 1/400^th interest in a share of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, from The Nasdaq Stock Market LLC to the New York Stock Exchange, under the ticker symbols of “AUB” and “AUB.PRA”, respectively.

FOURTH QUARTER AND FISCAL YEAR 2022 EARNINGS RELEASE CONFERENCE CALL

The Company will hold a conference call and webcast for investors at 9:00 a.m. Eastern Time on Tuesday, January 24, 2023 during which management will review the financial results for the fourth quarter and fiscal year 2022 and provide an update on recent activities.

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

https://edge.media-server.com/mmc/p/d6afrqsq.

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

https://register.vevent.com/register/BI10abddc24ec746bdb44736355d7d0588.To participate in the conference call, you must use the link to receive an audio dial-in number and an Access PIN.

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

NON-GAAP FINANCIAL MEASURES

In reporting the results as of and for the periods ended December 31, 2022, the Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see “Alternative Performance Measures (non-GAAP)” in the tables within the section “Key Financial Results.”

FORWARD-LOOKING STATEMENTS

This press release and statements by our management may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements made in Mr. Asbury’s quotations, statements regarding future economic conditions and the impacts of the current economic uncertainties, estimates with respect to the remaining net accretion related to acquisition accounting, and statements that include other projections, predictions, expectations, or beliefs about future events or results, including the Company’s ability to meet its top tier financial targets, or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” “continue,” “confidence,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to the effects of or changes in:

● market interest rates and their related impacts on macroeconomic conditions, customer and client behavior, the Company’s funding costs and the Company’s loan and securities portfolios;

● inflation and its impacts on economic growth and customer and client behavior;

● general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels and slowdowns in economic growth;

● monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of the Treasury and the Federal Reserve;

● the quality or composition of the Company’s loan or investment portfolios and changes therein;

● demand for loan products and financial services in the Company’s market areas;

● the Company’s ability to manage its growth or implement its growth strategy;

● the effectiveness of expense reduction plans;

● the introduction of new lines of business or new products and services;

● the Company’s ability to recruit and retain key employees;

● real estate values in the Company’s lending area;

● an insufficient ACL;

● changes in accounting principles, standards, rules, and interpretations, and the related impact on the Company’s financial statements;

● volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19 pandemic, inflation, changing interest rates, or other factors;

● the Company’s liquidity and capital positions;

● concentrations of loans secured by real estate, particularly commercial real estate;

● the effectiveness of the Company’s credit processes and management of the Company’s credit risk;

● the Company’s ability to compete in the market for financial services and increased competition from fintech companies;

● technological risks and developments, and cyber threats, attacks, or events;

● operational, technological, cultural, regulatory, legal, credit, and other risks associated with the exploration, consummation and integration of potential future acquisitions, whether involving stock or cash considerations;

● the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts (such as the ongoing conflict between Russia and Ukraine) or public health events (such as COVID-19), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on supply chains and methods used to distribute products and services, on

incidents of cyberattack and fraud, on the Company’s liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;

● the effect of steps the Company takes in response to the COVID-19 pandemic, the severity and duration of the pandemic, the uncertainty regarding new variants of COVID-19 that have emerged, the speed and efficacy of vaccine and treatment developments, the impact of loosening or tightening of government restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein;

● the discontinuation of LIBOR and its impact on the financial markets, and the Company’s ability to manage operational, legal and compliance risks related to the discontinuation of LIBOR and implementation of one or more alternate reference rates;

● performance by the Company’s counterparties or vendors;

● deposit flows;

● the availability of financing and the terms thereof;

● the level of prepayments on loans and mortgage-backed securities;

● legislative or regulatory changes and requirements;

● potential claims, damages, and fines related to litigation or government actions;

● the effects of changes in federal, state or local tax laws and regulations;

● any event or development that would cause the Company to conclude that there was an impairment of any asset, including intangible assets, such as goodwill; and

● other factors, many of which are beyond the control of the Company.

Please also refer to such other factors as discussed throughout Part I, Item 1A. “Risk Factors” and Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission (“SEC”) and are available on the SEC’s website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements, and undue reliance should not be placed on such forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company does not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Results of Operations
Interest and dividend income	$	202,068		$	171,156		$	147,456		$	660,435		$	592,359
Interest expense		38,220			20,441			9,129			76,174			41,099
Net interest income		163,848			150,715			138,327			584,261			551,260
Provision for credit losses		6,257			6,412			(1,000)			19,028			(60,888)
Net interest income after provision for credit losses		157,591			144,303			139,327			565,233			612,148
Noninterest income		24,500			25,584			36,417			118,523			125,806
Noninterest expenses		99,790			99,923			119,944			403,802			419,195
Income before income taxes		82,301			69,964			55,800			279,954			318,759
Income tax expense		11,777			11,894			8,021			45,444			54,842
Net income		70,524			58,070			47,779			234,510			263,917
Dividends on preferred stock		2,967			2,967			2,967			11,868			11,868
Net income available to common shareholders	$	67,557		$	55,103		$	44,812		$	222,642		$	252,049
Interest earned on earning assets (FTE) (1)	$	206,186		$	174,998		$	150,684		$	675,308		$	604,950
Net interest income (FTE) (1)		167,966			154,557			141,555			599,134			563,851
Total revenue (FTE) (1)		192,466			180,141			177,972			717,657			689,657
Pre-PPP total adjusted revenue (FTE) (1) (10)		192,447			179,687			161,423			703,772			636,215
Pre-tax pre-provision adjusted operating earnings (8)		88,559			76,376			66,199			295,411			284,779
Pre-PPP pre-tax pre-provision adjusted operating earnings (8) (10)		88,539			75,922			54,787			290,605			236,561
Key Ratios
Earnings per common share, diluted	$	0.90		$	0.74		$	0.59		$	2.97		$	3.26
Return on average assets (ROA)		1.39	%		1.15	%		0.94	%		1.18	%		1.32	%
Return on average equity (ROE)		12.05	%		9.45	%		6.98	%		9.51	%		9.68	%
Return on average tangible common equity (ROTCE) (2) (3)		22.92	%		17.21	%		11.98	%		17.33	%		16.72	%
Efficiency ratio		52.98	%		56.68	%		68.64	%		57.46	%		61.91	%
Efficiency ratio (FTE) (1)		51.85	%		55.47	%		67.39	%		56.27	%		60.78	%
Net interest margin		3.61	%		3.34	%		3.03	%		3.27	%		3.08	%
Net interest margin (FTE) (1)		3.70	%		3.43	%		3.10	%		3.36	%		3.15	%
Yields on earning assets (FTE) (1)		4.54	%		3.88	%		3.30	%		3.78	%		3.38	%
Cost of interest-bearing liabilities		1.24	%		0.68	%		0.30	%		0.64	%		0.34	%
Cost of deposits		0.72	%		0.37	%		0.12	%		0.34	%		0.16	%
Cost of funds		0.84	%		0.45	%		0.20	%		0.42	%		0.23	%
Operating Measures (4)
Adjusted operating earnings	$	70,525		$	58,070		$	56,784		$	230,879		$	285,174
Adjusted operating earnings available to common shareholders		67,558			55,103			53,817			219,011			273,306
Adjusted operating earnings per common share, diluted	$	0.90		$	0.74		$	0.71		$	2.92		$	3.53
Adjusted operating ROA		1.39	%		1.15	%		1.11	%		1.16	%		1.43	%
Adjusted operating ROE		12.05	%		9.45	%		8.30	%		9.37	%		10.46	%
Adjusted operating ROTCE (2) (3)		22.92	%		17.21	%		14.25	%		17.06	%		18.07	%
Adjusted operating efficiency ratio (FTE) (1)(7)		50.61	%		54.09	%		57.96	%		54.68	%		54.52	%
Per Share Data
Earnings per common share, basic	$	0.90		$	0.74		$	0.59		$	2.97		$	3.26
Earnings per common share, diluted		0.90			0.74			0.59			2.97			3.26
Cash dividends paid per common share		0.30			0.30			0.28			1.16			1.09
Market value per share		35.14			30.38			37.29			35.14			37.29
Book value per common share		29.68			28.46			33.80			29.68			33.80
Tangible book value per common share (2)		16.87			15.61			20.79			16.87			20.79
Price to earnings ratio, diluted		9.79			10.37			15.93			11.83			11.44
Price to book value per common share ratio		1.18			1.07			1.10			1.18			1.10
Price to tangible book value per common share ratio (2)		2.08			1.95			1.79			2.08			1.79
Weighted average common shares outstanding, basic		74,712,040			74,703,699			75,654,336			74,949,109			77,399,902
Weighted average common shares outstanding, diluted		74,713,972			74,705,054			75,667,759			74,953,398			77,417,801
Common shares outstanding at end of period		74,712,622			74,703,774			75,663,648			74,712,622			75,663,648

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Capital Ratios
Common equity Tier 1 capital ratio (5)		9.95	%		9.96	%		10.24	%		9.95	%		10.24	%
Tier 1 capital ratio (5)		10.94	%		10.98	%		11.32	%		10.94	%		11.32	%
Total capital ratio (5)		13.70	%		13.80	%		14.17	%		13.70	%		14.17	%
Leverage ratio (Tier 1 capital to average assets) (5)		9.42	%		9.32	%		9.01	%		9.42	%		9.01	%
Common equity to total assets		10.78	%		10.60	%		12.68	%		10.78	%		12.68	%
Tangible common equity to tangible assets (2)		6.43	%		6.11	%		8.20	%		6.43	%		8.20	%
Financial Condition
Assets	$	20,461,138		$	19,950,231		$	20,064,796		$	20,461,138		$	20,064,796
Loans held for investment (net of deferred fees and costs)		14,449,142			13,918,720			13,195,843			14,449,142			13,195,843
Securities		3,709,761			3,640,722			4,186,475			3,709,761			4,186,475
Earning Assets		18,271,430			17,790,324			18,030,138			18,271,430			18,030,138
Goodwill		925,211			925,211			935,560			925,211			935,560
Amortizable intangibles, net		26,761			29,142			43,312			26,761			43,312
Deposits		15,931,677			16,546,216			16,611,068			15,931,677			16,611,068
Borrowings		1,708,700			669,558			506,594			1,708,700			506,594
Stockholders' equity		2,372,737			2,281,150			2,710,071			2,372,737			2,710,071
Tangible common equity (2)		1,254,408			1,160,440			1,564,842			1,254,408			1,564,842
Loans held for investment, net of deferred fees and costs
Construction and land development	$	1,101,260		$	1,068,201		$	862,236		$	1,101,260		$	862,236
Commercial real estate - owner occupied		1,982,608			1,953,872			1,995,409			1,982,608			1,995,409
Commercial real estate - non-owner occupied		3,996,130			3,900,325			3,789,377			3,996,130			3,789,377
Multifamily real estate		802,923			774,970			778,626			802,923			778,626
Commercial & Industrial		2,983,349			2,709,047			2,542,243			2,983,349			2,542,243
Residential 1-4 Family - Commercial		538,063			542,612			607,337			538,063			607,337
Residential 1-4 Family - Consumer		940,275			891,353			816,524			940,275			816,524
Residential 1-4 Family - Revolving		585,184			588,452			560,796			585,184			560,796
Auto		592,976			561,277			461,052			592,976			461,052
Consumer		152,545			172,776			176,992			152,545			176,992
Other Commercial		773,829			755,835			605,251			773,829			605,251
Total loans held for investment	$	14,449,142		$	13,918,720		$	13,195,843		$	14,449,142		$	13,195,843
Deposits
Interest checking accounts	$	4,186,505		$	4,354,351		$	4,176,032		$	4,186,505		$	4,176,032
Money market accounts		3,922,536			3,962,473			4,249,858			3,922,536			4,249,858
Savings accounts		1,130,899			1,173,566			1,121,297			1,130,899			1,121,297
Time deposits of $250,000 and over		405,060			415,984			452,193			405,060			452,193
Other time deposits		1,403,438			1,348,904			1,404,364			1,403,438			1,404,364
Time deposits		1,808,498			1,764,888			1,856,557			1,808,498			1,856,557
Total interest-bearing deposits	$	11,048,438		$	11,255,278		$	11,403,744		$	11,048,438		$	11,403,744
Demand deposits		4,883,239			5,290,938			5,207,324			4,883,239			5,207,324
Total deposits	$	15,931,677		$	16,546,216		$	16,611,068		$	15,931,677		$	16,611,068
Averages
Assets	$	20,174,152		$	19,980,500		$	20,236,889		$	19,949,388		$	19,977,551
Loans held for investment (net of deferred fees and costs)		14,117,433			13,733,447			13,082,412			13,671,714			13,639,325
Loans held for sale		7,809			15,063			26,775			14,519			39,031
Securities		3,644,196			3,818,607			3,998,058			3,896,337			3,579,378
Earning assets		18,000,596			17,879,222			18,138,285			17,853,216			17,903,671
Deposits		16,611,749			16,488,224			16,861,219			16,451,718			16,541,286
Time deposits		1,764,596			1,745,224			1,941,420			1,735,983			2,201,039
Interest-bearing deposits		11,415,032			11,163,945			11,489,510			11,172,759			11,485,130
Borrowings		816,818			703,272			445,344			700,271			453,452
Interest-bearing liabilities		12,231,850			11,867,217			11,934,854			11,873,030			11,938,582
Stockholders' equity		2,321,208			2,436,999			2,715,610			2,465,049			2,725,330
Tangible common equity (2)		1,201,732			1,315,085			1,568,828			1,333,751			1,573,415

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Asset Quality
Allowance for Credit Losses (ACL)
Beginning balance, Allowance for loan and lease losses (ALLL)	$	108,009		$	104,184		$	101,798		$	99,787		$	160,540
Add: Recoveries		1,332			1,214			1,720			5,076			8,218
Less: Charge-offs		2,142			1,801			2,231			7,409			10,083
Add: Provision for loan losses		3,569			4,412			(1,500)			13,314			(58,888)
Ending balance, ALLL	$	110,768		$	108,009		$	99,787		$	110,768		$	99,787
Beginning balance, Reserve for unfunded commitment (RUC)	$	11,000		$	9,000		$	7,500		$	8,000		$	10,000
Add: Provision for unfunded commitments		2,675			2,000			500			5,675			(2,000)
Ending balance, RUC	$	13,675		$	11,000		$	8,000		$	13,675		$	8,000
Total ACL	$	124,443		$	119,009		$	107,787		$	124,443		$	107,787
ACL / total outstanding loans		0.86	%		0.86	%		0.82	%		0.86	%		0.82	%
ACL / total adjusted loans(9)		0.86	%		0.86	%		0.83	%		0.86	%		0.83	%
ALLL / total outstanding loans		0.77	%		0.78	%		0.76	%		0.77	%		0.76	%
ALLL / total adjusted loans(9)		0.77	%		0.78	%		0.76	%		0.77	%		0.76	%
Net charge-offs / total average loans		0.02	%		0.02	%		0.02	%		0.02	%		0.01	%
Net charge-offs / total adjusted average loans(9)		0.02	%		0.02	%		0.02	%		0.02	%		0.01	%
Provision for loan losses/ total average loans		0.10	%		0.13	%		(0.05)	%		0.10	%		(0.43)	%
Provision for loan losses/ total adjusted average loans(9)		0.10	%		0.13	%		(0.05)	%		0.10	%		(0.46)	%
Nonperforming Assets (6)
Construction and land development	$	307		$	421		$	2,697		$	307		$	2,697
Commercial real estate - owner occupied		7,178			4,883			5,637			7,178			5,637
Commercial real estate - non-owner occupied		1,263			1,923			3,641			1,263			3,641
Multifamily real estate		—			—			113			—			113
Commercial & Industrial		1,884			2,289			1,647			1,884			1,647
Residential 1-4 Family - Commercial		1,904			1,962			2,285			1,904			2,285
Residential 1-4 Family - Consumer		10,846			11,121			11,397			10,846			11,397
Residential 1-4 Family - Revolving		3,453			3,583			3,406			3,453			3,406
Auto		200			318			223			200			223
Consumer		3			—			54			3			54
Nonaccrual loans	$	27,038		$	26,500		$	31,100		$	27,038		$	31,100
Foreclosed property		76			2,087			1,696			76			1,696
Total nonperforming assets (NPAs)	$	27,114		$	28,587		$	32,796		$	27,114		$	32,796
Construction and land development	$	100		$	115		$	299		$	100		$	299
Commercial real estate - owner occupied		2,167			3,517			1,257			2,167			1,257
Commercial real estate - non-owner occupied		607			621			433			607			433
Commercial & Industrial		459			526			1,897			459			1,897
Residential 1-4 Family - Commercial		275			308			990			275			990
Residential 1-4 Family - Consumer		1,955			680			3,013			1,955			3,013
Residential 1-4 Family - Revolving		1,384			1,255			882			1,384			882
Auto		344			148			241			344			241
Consumer		108			86			120			108			120
Other Commercial		91			95			—			91			—
Loans ≥ 90 days and still accruing	$	7,490		$	7,351		$	9,132		$	7,490		$	9,132
Total NPAs and loans ≥ 90 days	$	34,604		$	35,938		$	41,928		$	34,604		$	41,928
NPAs / total outstanding loans		0.19	%		0.21	%		0.25	%		0.19	%		0.25	%
NPAs / total adjusted loans(9)		0.19	%		0.21	%		0.25	%		0.19	%		0.25	%
NPAs / total assets		0.13	%		0.14	%		0.16	%		0.13	%		0.16	%
ALLL / nonaccrual loans		409.68	%		407.58	%		320.86	%		409.68	%		320.86	%
ALLL/ nonperforming assets		408.53	%		377.83	%		304.27	%		408.53	%		304.27	%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Past Due Detail (6)
Construction and land development	$	1,253		$	120		$	1,357		$	1,253		$	1,357
Commercial real estate - owner occupied		2,305			7,337			1,230			2,305			1,230
Commercial real estate - non-owner occupied		1,121			—			1,965			1,121			1,965
Multifamily real estate		1,229			—			84			1,229			84
Commercial & Industrial		824			796			1,161			824			1,161
Residential 1-4 Family - Commercial		1,231			1,410			1,844			1,231			1,844
Residential 1-4 Family - Consumer		5,951			1,123			3,368			5,951			3,368
Residential 1-4 Family - Revolving		1,843			1,115			1,493			1,843			1,493
Auto		2,747			1,876			1,866			2,747			1,866
Consumer		351			409			689			351			689
Other Commercial		—			—			37			—			37
Loans 30-59 days past due	$	18,855		$	14,186		$	15,094		$	18,855		$	15,094
Construction and land development	$	45		$	107		$	—		$	45		$	—
Commercial real estate - owner occupied		635			763			152			635			152
Commercial real estate - non-owner occupied		48			457			127			48			127
Commercial & Industrial		174			3,128			1,438			174			1,438
Residential 1-4 Family - Commercial		—			97			272			—			272
Residential 1-4 Family - Consumer		1,690			1,449			2,925			1,690			2,925
Residential 1-4 Family - Revolving		511			1,081			363			511			363
Auto		450			257			249			450			249
Consumer		125			101			186			125			186
Loans 60-89 days past due	$	3,678		$	7,440		$	5,712		$	3,678		$	5,712
Past Due and still accruing	$	30,023		$	28,977		$	29,938		$	30,023		$	29,938
Past Due and still accruing / total loans		0.21	%		0.21	%		0.23	%		0.21	%		0.23	%
Troubled Debt Restructurings
Performing	$	9,273		$	10,333		$	10,313		$	9,273		$	10,313
Nonperforming		4,917			5,298			7,642			4,917			7,642
Total troubled debt restructurings	$	14,190		$	15,631		$	17,955		$	14,190		$	17,955
Alternative Performance Measures (non-GAAP)
Net interest income (FTE) (1)
Net interest income (GAAP)	$	163,848		$	150,715		$	138,327		$	584,261		$	551,260
FTE adjustment		4,118			3,842			3,228			14,873			12,591
Net interest income (FTE) (non-GAAP)	$	167,966		$	154,557		$	141,555		$	599,134		$	563,851
Noninterest income (GAAP)		24,500			25,584			36,417			118,523			125,806
Total revenue (FTE) (non-GAAP)	$	192,466		$	180,141		$	177,972		$	717,657		$	689,657
Average earning assets	$	18,000,596		$	17,879,222		$	18,138,285		$	17,853,216		$	17,903,671
Net interest margin		3.61	%		3.34	%		3.03	%		3.27	%		3.08	%
Net interest margin (FTE)		3.70	%		3.43	%		3.10	%		3.36	%		3.15	%
Tangible Assets (2)
Ending assets (GAAP)	$	20,461,138		$	19,950,231		$	20,064,796		$	20,461,138		$	20,064,796
Less: Ending goodwill		925,211			925,211			935,560			925,211			935,560
Less: Ending amortizable intangibles		26,761			29,142			43,312			26,761			43,312
Ending tangible assets (non-GAAP)	$	19,509,166		$	18,995,878		$	19,085,924		$	19,509,166		$	19,085,924
							��
Tangible Common Equity (2)
Ending equity (GAAP)	$	2,372,737		$	2,281,150		$	2,710,071		$	2,372,737		$	2,710,071
Less: Ending goodwill		925,211			925,211			935,560			925,211			935,560
Less: Ending amortizable intangibles		26,761			29,142			43,312			26,761			43,312
Less: Perpetual preferred stock		166,357			166,357			166,357			166,357			166,357
Ending tangible common equity (non-GAAP)	$	1,254,408		$	1,160,440		$	1,564,842		$	1,254,408		$	1,564,842
Average equity (GAAP)	$	2,321,208		$	2,436,999		$	2,715,610		$	2,465,049		$	2,725,330
Less: Average goodwill		925,211			925,211			935,560			930,315			935,560
Less: Average amortizable intangibles		27,909			30,347			44,866			34,627			49,999
Less: Average perpetual preferred stock		166,356			166,356			166,356			166,356			166,356
Average tangible common equity (non-GAAP)	$	1,201,732		$	1,315,085		$	1,568,828		$	1,333,751		$	1,573,415
ROTCE (2)(3)
Net income available to common shareholders (GAAP)	$	67,557		$	55,103		$	44,812		$	222,642		$	252,049
Plus: Amortization of intangibles, tax effected		1,881			1,959			2,548			8,544			10,984
Net income available to common shareholders before amortization of intangibles (non-GAAP)	$	69,438		$	57,062		$	47,360		$	231,186		$	263,033
Return on average tangible common equity (ROTCE)		22.92	%		17.21	%		11.98	%		17.33	%		16.72	%

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Operating Measures (4)
Net income (GAAP)	$	70,524		$	58,070		$	47,779		$	234,510		$	263,917
Plus: Net loss related to balance sheet repositioning, net of tax		—			—			—			—			11,609
Plus: Branch closing and facility consolidation costs, net of tax		—			—			13,063			4,351			13,775
Less: (Loss) gain on sale of securities, net of tax		(1)			—			—			(2)			69
Less: Gain on sale of DHFB, net of tax		—			—			—			7,984			—
Less: Gain on Visa, Inc. Class B common stock, net of tax		—			—			4,058			—			4,058
Adjusted operating earnings (non-GAAP)		70,525			58,070			56,784			230,879			285,174
Less: Dividends on preferred stock		2,967			2,967			2,967			11,868			11,868
Adjusted operating earnings available to common shareholders (non-GAAP)	$	67,558		$	55,103		$	53,817		$	219,011		$	273,306
Noninterest expense (GAAP)	$	99,790		$	99,923		$	119,944		$	403,802		$	419,195
Less: Amortization of intangible assets		2,381			2,480			3,225			10,815			13,904
Less: Losses related to balance sheet repositioning		—			—			—			—			14,695
Less: Branch closing and facility consolidation costs		—			—			16,536			5,508			17,437
Adjusted operating noninterest expense (non-GAAP)	$	97,409		$	97,443		$	100,183		$	387,479		$	373,159
Noninterest income (GAAP)	$	24,500		$	25,584		$	36,417		$	118,523		$	125,806
Less: (Loss) gain on sale of securities		(1)			—			—			(3)			87
Less: Gain on sale of DHFB		—			—			—			9,082			—
Less: Gain on Visa, Inc. Class B common stock		—			—			5,137			—			5,137
Adjusted operating noninterest income (non-GAAP)	$	24,501		$	25,584		$	31,280		$	109,444		$	120,582
Net interest income (FTE) (non-GAAP) (1)	$	167,966		$	154,557		$	141,555		$	599,134		$	563,851
Adjusted operating noninterest income (non-GAAP)		24,501			25,584			31,280			109,444			120,582
Total adjusted revenue (FTE) (non-GAAP) (1)	$	192,467		$	180,141		$	172,835		$	708,578		$	684,433
Less: PPP accretion interest income and fees		20			454			11,412			4,806			48,218
Pre-PPP total adjusted revenue (FTE) (non-GAAP) (1) (10)	$	192,447		$	179,687		$	161,423		$	703,772		$	636,215
Efficiency ratio		52.98	%		56.68	%		68.64	%		57.46	%		61.91	%
Efficiency ratio (FTE) (1)		51.85	%		55.47	%		67.39	%		56.27	%		60.78	%
Adjusted operating efficiency ratio (FTE) (1)(7)		50.61	%		54.09	%		57.96	%		54.68	%		54.52	%
Operating ROA & ROE (4)
Adjusted operating earnings (non-GAAP)	$	70,525		$	58,070		$	56,784		$	230,879		$	285,174
Average assets (GAAP)	$	20,174,152		$	19,980,500		$	20,236,889		$	19,949,388		$	19,977,551
Return on average assets (ROA) (GAAP)		1.39	%		1.15	%		0.94	%		1.18	%		1.32	%
Adjusted operating return on average assets (ROA) (non-GAAP)		1.39	%		1.15	%		1.11	%		1.16	%		1.43	%
Average equity (GAAP)	$	2,321,208		$	2,436,999		$	2,715,610		$	2,465,049		$	2,725,330
Return on average equity (ROE) (GAAP)		12.05	%		9.45	%		6.98	%		9.51	%		9.68	%
Adjusted operating return on average equity (ROE) (non-GAAP)		12.05	%		9.45	%		8.30	%		9.37	%		10.46	%
Operating ROTCE (2)(3)(4)
Adjusted operating earnings available to common shareholders (non-GAAP)	$	67,558		$	55,103		$	53,817		$	219,011		$	273,306
Plus: Amortization of intangibles, tax effected		1,881			1,959			2,548			8,544			10,984
Adjusted operating earnings available to common shareholders before amortization of intangibles (non-GAAP)	$	69,439		$	57,062		$	56,365		$	227,555		$	284,290
Average tangible common equity (non-GAAP)	$	1,201,732		$	1,315,085		$	1,568,828		$	1,333,751		$	1,573,415
Adjusted operating return on average tangible common equity (non-GAAP)		22.92	%		17.21	%		14.25	%		17.06	%		18.07	%
Pre-tax pre-provision adjusted operating earnings (8)
Net income (GAAP)	$	70,524		$	58,070		$	47,779		$	234,510		$	263,917
Plus: Provision for credit losses		6,257			6,412			(1,000)			19,028			(60,888)
Plus: Income tax expense		11,777			11,894			8,021			45,444			54,842
Plus: Net loss related to balance sheet repositioning		—			—			—			—			14,695
Plus: Branch closing and facility consolidation costs		—			—			16,536			5,508			17,437
Less: (Loss) gain on sale of securities		(1)			—			—			(3)			87
Less: Gain on sale of DHFB		—			—			—			9,082			—
Less: Gain on Visa, Inc. Class B common stock		—			—			5,137			—			5,137
Pre-tax pre-provision adjusted operating earnings (non-GAAP)	$	88,559		$	76,376		$	66,199		$	295,411		$	284,779
Less: Dividends on preferred stock		2,967			2,967			2,967			11,868			11,868
Pre-tax pre-provision adjusted operating earnings available to common shareholders (non-GAAP)	$	85,592		$	73,409		$	63,232		$	283,543		$	272,911
Pre-tax pre-provision adjusted operating earnings (non-GAAP)	$	88,559		$	76,376		$	66,199		$	295,411		$	284,779
Less: PPP accretion interest income and fees		20			454			11,412			4,806			48,218
Pre-PPP pre-tax pre-provision adjusted operating earnings (non-GAAP) (10)	$	88,539		$	75,922		$	54,787		$	290,605		$	236,561
Weighted average common shares outstanding, diluted		74,713,972			74,705,054			75,667,759			74,953,398			77,417,801
Pre-tax pre-provision earnings per common share, diluted	$	1.15		$	0.98		$	0.84		$	3.78		$	3.53

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

KEY FINANCIAL RESULTS

(Dollars in thousands, except share data)

	As of & For Three Months Ended									As of & For Year Ended
	12/31/22			09/30/22			12/31/21			12/31/22			12/31/21
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
Adjusted Loans (9)
Loans held for investment (net of deferred fees and costs) (GAAP)	$	14,449,142		$	13,918,720		$	13,195,843		$	14,449,142		$	13,195,843
Less: PPP loans (net of deferred fees and costs)		7,286			12,146			150,363			7,286			150,363
Total adjusted loans (non-GAAP)	$	14,441,856		$	13,906,574		$	13,045,480		$	14,441,856		$	13,045,480
Average loans held for investment (net of deferred fees and costs) (GAAP)	$	14,117,433		$	13,733,447		$	13,082,412		$	13,671,714		$	13,639,325
Less: Average PPP loans (net of deferred fees and costs)		8,217			14,280			288,204			41,896			864,814
Total adjusted average loans (non-GAAP)	$	14,109,216		$	13,719,167		$	12,794,208		$	13,629,818		$	12,774,511
Mortgage Origination Held for Sale Volume
Refinance Volume	$	2,312		$	5,637		$	46,575		$	55,725		$	287,976
Purchase Volume		29,262			66,360			71,969			238,310			322,492
Total Mortgage loan originations held for sale	$	31,574		$	71,997		$	118,544		$	294,035		$	610,468
% of originations held for sale that are refinances		7.3	%		7.8	%		39.3	%		19.0	%		47.2	%
Wealth
Assets under management ("AUM")	$	4,271,728		$	4,065,059		$	6,741,022		$	4,271,728		$	6,741,022
Other Data
End of period full-time employees		1,877			1,890			1,876			1,877			1,876
Number of full-service branches		114			114			130			114			130
Number of automatic transaction machines ("ATMs")		131			131			148			131			148

(1) These are non-GAAP financial measures. Net interest income (FTE), total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency ratio (FTE), provide valuable additional insight into the net interest margin and the efficiency ratio by adjusting for differences in tax treatment of interest income sources. The entire FTE adjustment is attributable to interest income on earning assets, which is used in computing yield on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the FTE components.

(2) These are non-GAAP financial measures. Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which the Company believes will assist investors in assessing the capital of the Company and its ability to absorb potential losses. The Company believes tangible common equity is an important indication of its ability to grow organically and through business combinations as well as its ability to pay dividends and to engage in various capital management strategies.

(3) These are non-GAAP financial measures. The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the business were acquired or developed internally.

(4)

(4)

These are non-GAAP financial measures. Adjusted operating measures exclude the losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of Dixon, Hubard, Feinour & Brown, Inc. (“DHFB”), as well as strategic branch closure initiatives and related facility consolidation costs (principally composed of real estate, leases and other assets write downs, as well as severance and expense reduction initiatives). The Company believes these non-GAAP adjusted measures provide investors with important information about the continuing economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(5) All ratios at December 31, 2022 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

(6) These balances reflect the impact of the Coronavirus Aid, Relief, and Economic Security Act and the joint guidance issued by the five federal bank regulatory agencies and the Conference of State Bank Supervisors on March 22, 2020, as subsequently revised on April 7, 2020, which provides relief for TDR designations and also provides guidance on past due reporting for modified loans made between March 1, 2020 and January 1, 2022.

(7) The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of DHFB, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), as well as strategic branch closure initiatives and related facility consolidation costs. This measure is similar to the measure utilized by the Company when analyzing corporate performance and is also similar to the measure utilized for incentive compensation. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(8) These are non-GAAP financial measures. Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, losses related to balance sheet repositioning (principally composed of losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on the sale of DHFB, as well as strategic branch closure initiatives and related facility consolidation costs. The Company believes this adjusted measure provides investors with important information about the combined economic results of the organization’s operations. Prior periods reflect adjustments for previously announced strategic branch closure and expense reduction initiatives.

(9) These are non-GAAP financial measures. PPP adjustment impact excludes the unforgiven portion of PPP loans. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic growth. The Company also believes that the related non-GAAP financial measures of past due loans still accruing interest as a percentage of total loans held for investment (net of deferred fees and costs), excluding PPP, are useful to investors as loans originated under the PPP carry a SBA guarantee. The Company believes that the ALLL as a percentage of loans held for investment (net of deferred fees and costs), excluding PPP, is useful to investors because of the size of the Company’s PPP originations and the impact of the embedded credit enhancement provided by the SBA guarantee.

(10) These are non-GAAP financial measures. The Company believes excluding PPP accretion interest income and fees from operating earnings is useful to investors as it provides more clarity on the Company’s non-PPP related income.

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

	December 31,		September 30,		December 31,
	2022		2022		2021
ASSETS		(unaudited)		(unaudited)		(audited)
Cash and cash equivalents:
Cash and due from banks	$	216,384	$	177,969	$	180,963
Interest-bearing deposits in other banks		102,107		211,785		618,714
Federal funds sold		1,457		1,188		2,824
Total cash and cash equivalents		319,948		390,942		802,501
Securities available for sale, at fair value		2,741,816		2,717,323		3,481,650
Securities held to maturity, at carrying value		847,732		841,349		628,000
Restricted stock, at cost		120,213		82,050		76,825
Loans held for sale, at fair value		3,936		12,889		20,861
Loans held for investment, net of deferred fees and costs		14,449,142		13,918,720		13,195,843
Less: allowance for loan and lease losses		110,768		108,009		99,787
Total loans held for investment, net		14,338,374		13,810,711		13,096,056
Premises and equipment, net		118,243		126,374		134,808
Goodwill		925,211		925,211		935,560
Amortizable intangibles, net		26,761		29,142		43,312
Bank owned life insurance		440,656		437,988		431,517
Other assets		578,248		576,252		413,706
Total assets	$	20,461,138	$	19,950,231	$	20,064,796
LIABILITIES
Noninterest-bearing demand deposits	$	4,883,239	$	5,290,938	$	5,207,324
Interest-bearing deposits		11,048,438		11,255,278		11,403,744
Total deposits		15,931,677		16,546,216		16,611,068
Securities sold under agreements to repurchase		142,837		146,182		117,870
Other short-term borrowings		1,176,000		133,800		—
Long-term borrowings		389,863		389,576		388,724
Other liabilities		448,024		453,307		237,063
Total liabilities		18,088,401		17,669,081		17,354,725
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $10.00 par value		173		173		173
Common stock, $1.33 par value		98,873		98,845		100,101
Additional paid-in capital		1,772,440		1,769,858		1,807,368
Retained earnings		919,537		874,393		783,794
Accumulated other comprehensive income (loss)		(418,286)		(462,119)		18,635
Total stockholders' equity		2,372,737		2,281,150		2,710,071
Total liabilities and stockholders' equity	$	20,461,138	$	19,950,231	$	20,064,796
Common shares outstanding		74,712,622		74,703,774		75,663,648
Common shares authorized		200,000,000		200,000,000		200,000,000
Preferred shares outstanding		17,250		17,250		17,250
Preferred shares authorized		500,000		500,000		500,000

ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except share data)

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(audited)
Interest and dividend income:
Interest and fees on loans	$	173,475	$	144,673	$	125,195	$	555,614	$	508,770
Interest on deposits in other banks		1,383		941		401		2,612		855
Interest and dividends on securities:
Taxable		16,196		14,750		11,757		59,306		43,859
Nontaxable		11,014		10,792		10,103		42,903		38,875
Total interest and dividend income		202,068		171,156		147,456		660,435		592,359
Interest expense:
Interest on deposits		30,236		15,386		4,915		56,201		27,117
Interest on short-term borrowings		3,588		1,229		17		5,393		108
Interest on long-term borrowings		4,396		3,826		4,197		14,580		13,874
Total interest expense		38,220		20,441		9,129		76,174		41,099
Net interest income		163,848		150,715		138,327		584,261		551,260
Provision for credit losses		6,257		6,412		(1,000)		19,028		(60,888)
Net interest income after provision for credit losses		157,591		144,303		139,327		565,233		612,148
Noninterest income:
Service charges on deposit accounts		7,631		6,784		7,808		30,052		27,122
Other service charges, commissions and fees		1,631		1,770		1,625		6,765		6,595
Interchange fees		2,571		2,461		2,027		9,110		8,279
Fiduciary and asset management fees		4,085		4,134		7,239		22,414		27,562
Mortgage banking income		379		1,390		3,330		7,085		21,022
Bank owned life insurance income		2,649		3,445		3,286		11,507		11,488
Loan-related interest rate swap fees		3,664		2,050		1,443		12,174		5,620
Other operating income		1,890		3,550		9,659		19,416		18,118
Total noninterest income		24,500		25,584		36,417		118,523		125,806
Noninterest expenses:
Salaries and benefits		58,723		56,600		57,970		228,926		214,929
Occupancy expenses		6,328		6,408		7,013		26,013		28,718
Furniture and equipment expenses		3,978		3,673		4,031		14,838		15,950
Technology and data processing		9,442		8,273		8,543		33,372		30,200
Professional services		4,456		3,504		4,680		16,730		17,841
Marketing and advertising expense		2,228		2,343		2,545		9,236		9,875
FDIC assessment premiums and other insurance		1,896		3,094		2,684		10,241		9,482
Franchise and other taxes		4,500		4,507		4,436		18,006		17,740
Loan-related expenses		1,356		1,575		1,715		6,574		7,004
Amortization of intangible assets		2,381		2,480		3,225		10,815		13,904
Loss on debt extinguishment		—		—		—		—		14,695
Other expenses		4,502		7,466		23,102		29,051		38,857
Total noninterest expenses		99,790		99,923		119,944		403,802		419,195
Income before income taxes		82,301		69,964		55,800		279,954		318,759
Income tax expense		11,777		11,894		8,021		45,444		54,842
Net income	$	70,524	$	58,070	$	47,779		234,510		263,917
Dividends on preferred stock		2,967		2,967		2,967		11,868		11,868
Net income available to common shareholders	$	67,557	$	55,103	$	44,812	$	222,642	$	252,049
Basic earnings per common share	$	0.90	$	0.74	$	0.59	$	2.97	$	3.26
Diluted earnings per common share	$	0.90	$	0.74	$	0.59	$	2.97	$	3.26

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

(Dollars in thousands)

	For the Quarter Ended
	December 31, 2022					September 30, 2022
	Average Balance		Interest Income / Expense (1)		Yield / Rate (1)(2)	Average Balance		Interest Income / Expense (1)		Yield / Rate (1)(2)
Assets:
Securities:
Taxable	$	2,016,845	$	16,196	3.19%	$	2,193,279	$	14,750	2.67%
Tax-exempt		1,627,351		13,942	3.40%		1,625,328		13,661	3.33%
Total securities		3,644,196		30,138	3.28%		3,818,607		28,411	2.95%
Loans, net (3)		14,117,433		174,531	4.90%		13,733,447		145,433	4.20%
Other earning assets		238,967		1,517	2.52%		327,168		1,154	1.40%
Total earning assets		18,000,596	$	206,186	4.54%		17,879,222	$	174,998	3.88%
Allowance for loan and lease losses		(109,535)					(104,746)
Total non-earning assets		2,283,091					2,206,024
Total assets	$	20,174,152				$	19,980,500
Liabilities and Stockholders' Equity:
Interest-bearing deposits:
Transaction and money market accounts	$	8,495,299	$	24,712	1.15%	$	8,247,650	$	11,342	0.55%
Regular savings		1,155,137		110	0.04%		1,171,071		64	0.02%
Time deposits		1,764,596		5,414	1.22%		1,745,224		3,980	0.90%
Total interest-bearing deposits		11,415,032		30,236	1.05%		11,163,945		15,386	0.55%
Other borrowings		816,818		7,984	3.88%		703,272		5,055	2.85%
Total interest-bearing liabilities	$	12,231,850	$	38,220	1.24%	$	11,867,217	$	20,441	0.68%
Noninterest-bearing liabilities:
Demand deposits		5,196,717					5,324,279
Other liabilities		424,377					352,005
Total liabilities		17,852,944					17,543,501
Stockholders' equity		2,321,208					2,436,999
Total liabilities and stockholders' equity	$	20,174,152				$	19,980,500
Net interest income			$	167,966				$	154,557
Interest rate spread					3.30%					3.20%
Cost of funds					0.84%					0.45%
Net interest margin					3.70%					3.43%

(1) Income and yields are reported on a taxable equivalent basis using the statutory federal corporate tax rate of 21%.

(2) Rates and yields are annualized and calculated from actual, not rounded amounts in thousands, which appear above.

(3) Nonaccrual loans are included in average loans outstanding.