Item 8.01 Other Events.
Atlantic Union Bank (the “Bank”), a subsidiary of Atlantic Union Bankshares Corporation (the “Company,” “we,” “us,” “our”), has entered into a Consent Order with the Consumer Financial Protection Bureau (the “CFPB”) regarding the previously disclosed investigation by the CFPB into certain of the Bank’s historic overdraft enrollment-related practices. A copy of the Consent Order is available on the CFPB’s website. The terms of the Consent Order require, among other things, that the Bank submit a redress plan to the CFPB, pursuant to which the Bank will pay restitution in an amount of at least $5 million, to certain current and former customers of the Bank who opted-in to the Bank’s discretionary overdraft service during a specified time period. The Bank will also pay a $1.2 million civil monetary penalty. We previously accrued a $5.0 million legal reserve related to this matter in the first quarter of 2023 and we expect to increase this accrual by approximately $3.0 million in the fourth quarter of 2023.
On December 7, 2023, the Bank issued a press release commenting on the resolution of the matter. A copy of the Bank’s press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Caution About Forward-Looking Statements
Certain statements in this Form 8-K may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, statements regarding the amount we expect our legal reserve to increase in the fourth quarter of 2023. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” and “intend,” as well as words of similar meaning. Forward-looking statements are based on assumptions as of the time they are made and are subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions, include, among others, uncertainties regarding the ultimate amount of payments the Bank will be required to make under the redress plan required by the Consent Order, the cost of compliance with the Bank’s obligations under the Consent Order, and potential adverse developments in new or pending legal proceedings.
Although we believe that our expectations with respect to forward-looking statements are based on reasonable assumptions within the bounds of our existing knowledge, there can be no assurance that our actual results will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, and other documents subsequently filed by us with the SEC. The actual results may be different than expected results. Investors are cautioned not to rely too heavily on any such forward-looking statements. Forward-looking statements speak only as of the date they are made and we undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
