AI Analysis | Feedback

• A regional version of Bank of America, primarily serving Virginia and the Mid-Atlantic.
• Like PNC Bank, but with its main operations concentrated in Virginia.
• A full-service regional bank similar to U.S. Bank, but operating primarily in Virginia.

AI Analysis | Feedback

• Deposit Accounts: Offers various checking, savings, money market, and certificate of deposit accounts for individuals and businesses to manage their funds.
• Lending Services: Provides a range of lending products including commercial, real estate, consumer, and mortgage loans to individuals and businesses.
• Wealth Management Services: Delivers financial planning, investment management, trust services, and private banking solutions to help clients grow and preserve wealth.
• Treasury Management Services: Provides businesses with cash management, payment processing, fraud protection, and other solutions to optimize financial operations.

AI Analysis | Feedback

Atlantic Union Bankshares (AUB) is a regional bank that primarily serves a diverse customer base, encompassing both individuals and businesses within its operational footprint. As a bank, its customer relationships are generally not concentrated in a few "major customers" but rather spread across various segments. The company serves the following categories of customers:

• Individual Consumers: AUB provides a full range of retail banking services to individuals and households. This includes checking and savings accounts, certificates of deposit (CDs), credit cards, personal loans, home equity lines of credit, and residential mortgages.
• Businesses (Small to Mid-Market): The bank offers commercial banking services to a wide array of businesses, from small enterprises to mid-sized companies. These services encompass business checking and savings accounts, commercial loans, lines of credit, equipment financing, treasury management services, and merchant services.
• Wealth Management Clients: Through its wealth management division, AUB serves high-net-worth individuals, families, and institutional clients. Services in this category include investment management, financial planning, trust and estate services, and private banking.

AI Analysis | Feedback

• Q2 Holdings, Inc. (QTWO)
• Visa Inc. (V)
• Mastercard Incorporated (MA)

AI Analysis | Feedback

John C. Asbury, Chief Executive Officer

Mr. Asbury has served as President and Chief Executive Officer of Atlantic Union Bankshares Corporation and Atlantic Union Bank since October 2015. Prior to joining Atlantic Union, he served as President and CEO of a mid-Atlantic regional bank. He also held various executive leadership positions at another large regional bank, including Head of Business Banking and Private Wealth Management, and Head of Commercial Services. Mr. Asbury began his career at a money center bank, where he gained experience in corporate and middle market banking.

Robert M. Gorman, Chief Financial Officer

Mr. Gorman was appointed Executive Vice President and Chief Financial Officer of Atlantic Union Bankshares Corporation and Atlantic Union Bank in April 2020. Before joining Atlantic Union, he served as Executive Vice President, Head of Corporate Finance and Investor Relations at a large regional bank. He previously spent 17 years at another financial institution in various leadership roles, including Treasurer and Director of Investor Relations. He began his career in public accounting.

Eric Scott, Chief Operating Officer

Mr. Scott became Chief Operating Officer of Atlantic Union Bankshares Corporation and Atlantic Union Bank in March 2023. He previously served as Executive Vice President, Head of Wholesale Banking since 2019. Prior to joining Atlantic Union Bank, Mr. Scott spent over two decades at a major regional bank, where he held leadership positions in commercial banking, including Managing Director and Group Head.

Ronald Lee Tilley, Chief Administrative Officer

Mr. Tilley serves as Chief Administrative Officer of Atlantic Union Bankshares Corporation and Atlantic Union Bank. He previously served as Chief Financial Officer of the company from 2007 until 2020. Prior to that, he held the role of Treasurer. His career in banking spans several decades, and he has held various financial leadership positions.

David William Edmonds, Chief Human Resources Officer

Mr. Edmonds is the Chief Human Resources Officer for Atlantic Union Bankshares Corporation and Atlantic Union Bank, a position he has held since 2016. Before joining Atlantic Union, he held senior human resources leadership roles at several large financial services companies.

AI Analysis | Feedback

The key risks to Atlantic Union Bankshares (AUB) primarily revolve around its credit portfolio, exposure to interest rate fluctuations, and the overarching regulatory environment inherent in the banking sector.

1. Credit Risk, particularly Commercial Real Estate (CRE) Concentration: Atlantic Union Bankshares faces significant credit risk, defined as the potential for financial loss if a counterparty cannot meet its obligations. A substantial portion of AUB's loan portfolio is concentrated in commercial real estate (CRE), including higher-risk construction and development loans. For instance, as of earlier estimates, non-owner-occupied CRE accounted for over $8 billion of its approximately $18.5 billion loan book, leading to a concentration ratio of 293% relative to its risk-based capital. The acquisition of Sandy Spring Bank, which also had a large CRE portfolio, intensified concerns about regulatory scrutiny due to elevated CRE concentration, though the company subsequently offloaded approximately $2 billion of CRE loans to manage this. This heavy exposure makes AUB particularly vulnerable to changes in interest rates and potential declines in property valuations.
2. Interest Rate Risk and Macroeconomic Volatility: AUB is exposed to market risk, including the potential for losses from changes in interest rates affecting its investments and loan portfolios. The company's earnings estimates face downside risks due to weaker loan growth projections, faltering industry-wide demand, and an uncertain macroeconomic environment. Higher interest rates can adversely impact the economics of existing CRE loans and contribute to overall market volatility, as indicated by the stock's beta of 1.28. The company acknowledges that uncertainty in the economy and the banking industry is expected to persist.
3. Regulatory and Compliance Risk: As a financial institution operating in a regulated environment, Atlantic Union Bankshares is subject to various regulatory and compliance risks. These include the potential for changes in banking regulations, legal risks, and the need to adhere to established policies and procedures. Sector-specific risks, such as those arising from fiscal policy changes or increased regulatory scrutiny, could further impact the company's outlook. The company's governance structure emphasizes the importance of effective risk management within regulatory boundaries.

AI Analysis | Feedback

• The rise of **Fintech companies and challenger banks** that offer specialized banking services (e.g., payments, loans, checking accounts) with superior digital experiences, often lower fees, and greater convenience. These digital-first companies directly compete with Atlantic Union Bankshares' traditional offerings, attracting customers, particularly younger demographics, who prioritize seamless mobile experiences and faster service over traditional branch banking.
• The increasing presence of **Big Tech companies (e.g., Apple, Google, Amazon)** in financial services, which leverage their vast customer bases, technological infrastructure, and data to offer payment solutions, consumer lending, and other financial products. These companies can disrupt traditional banking relationships by becoming the primary financial interface for consumers, siphoning off transaction volume and data that banks previously owned.

AI Analysis | Feedback

AI Analysis | Feedback

AI Analysis | Feedback

Share Repurchases

• A $100 million stock repurchase program was authorized on December 10, 2021, and expired on December 9, 2022.
• Under the program authorized on December 10, 2021, Atlantic Union Bankshares repurchased $48.2 million of common stock.
• A share repurchase program authorized on May 4, 2021, was fully utilized by September 30, 2021, resulting in the repurchase of 3.4 million shares of the company's common stock.

Share Issuance

• On October 21, 2024, Atlantic Union Bankshares priced an underwritten public offering of 9,859,155 shares of its common stock at $35.50 per share, resulting in an aggregate offering amount of $350.0 million.
• The approximate net proceeds from this offering were $336.0 million.
• Underwriters were granted an option to purchase up to an additional 1,478,873 shares of Atlantic Union's common stock.

Outbound Investments

• On October 21, 2024, Atlantic Union Bankshares entered into a definitive merger agreement to acquire Sandy Spring Bancorp in an all-stock transaction valued at approximately $1.6 billion.
• The acquisition is expected to close on April 1, 2025, and is projected to create the largest regional bank headquartered in the lower Mid-Atlantic, significantly enhancing Atlantic Union's presence in Northern Virginia and Maryland.
• Under the terms of the merger agreement, each outstanding share of Sandy Spring common stock will be converted into the right to receive 0.900 shares of Atlantic Union common stock.