Atlantic Union Bankshares Corp (AUB) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Atlantic Union Bankshares Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host -- for your host today's call, Bill Cimino. Please go ahead.

美好的一天，感謝您的耐心等待，歡迎參加大西洋聯盟銀行股份 2023 年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給主持人——比爾·西米諾，主持今天的電話會議。請繼續。

Thank you, Justin, and good morning, everyone. I have Atlantic Union Bankshares' President and CEO, John Asbury; and Executive Vice President and CFO, Rob Gorman, with me today. We also have American National Chairman, President and CEO, Jeff Haley, on the call. Other members of our executive management team will be here for the question-and-answer period.

謝謝賈斯汀，大家早上好。我有大西洋聯合銀行股份公司總裁兼首席執行官約翰·阿斯伯里（John Asbury）；今天和我一起的是執行副總裁兼首席財務官 Rob Gorman。美國國家主席、總裁兼首席執行官傑夫·哈利 (Jeff Haley) 也參加了電話會議。我們執行管理團隊的其他成員將出席問答環節。

Please note that today's releases and the accompanying slide presentation are available to download on our investor website, investors.atlanticunionbank.com. During today's call, we will comment on our financial performance using both GAAP metrics and non-GAAP financial measures. Important information about these non-GAAP financial measures, including reconciliations to comparable GAAP measures is included in the appendix to our slide presentation and in our earnings release for the second quarter of 2023.

請注意，今天的新聞稿和隨附的幻燈片演示文稿可在我們的投資者網站 Investors.atlanticunionbank.com 上下載。在今天的電話會議中，我們將使用 GAAP 指標和非 GAAP 財務指標來評論我們的財務業績。有關這些非 GAAP 財務指標的重要信息，包括與可比 GAAP 指標的調節表，請參閱我們幻燈片演示文稿的附錄以及我們 2023 年第二季度的收益發布。

We'll make a number of forward-looking statements on today's call, which are not statements of historical fact and are subject to risks and uncertainties. There can be no assurance that actual performance will not differ materially from any future expectations or results expressed or implied by these forward-looking statements. We undertake no obligation to publicly revise or update any forward-looking statement.

我們將在今天的電話會議上發表一些前瞻性聲明，這些聲明不是歷史事實的聲明，並且存在風險和不確定性。無法保證實際表現不會與這些前瞻性陳述明示或暗示的任何未來預期或結果沒有重大差異。我們不承擔公開修改或更新任何前瞻性聲明的義務。

Please refer to our earnings release, the press release announcing the proposed merger and those 2 slide presentations issued today as well as our other SEC filings for further discussion of the company's risk factors and other important information regarding our forward-looking statements. Including factors that could cause actual results to differ from those expressed or implied in any forward-looking statement. All comments made during today's call are subject to that safe harbor statement. At the end of the call, we'll take questions from the research analyst community. And now I'll turn the call over to John.

請參閱我們的收益報告、宣布擬議合併的新聞稿和今天發布的兩張幻燈片演示文稿以及我們向 SEC 提交的其他文件，以進一步討論公司的風險因素以及有關我們前瞻性陳述的其他重要信息。包括可能導致實際結果與任何前瞻性聲明中明示或暗示的結果不同的因素。今天電話會議期間發表的所有評論均受該安全港聲明的約束。在電話會議結束時，我們將回答研究分析師社區的問題。現在我將把電話轉給約翰。

Thank you, Bill, and good morning, everyone. Today, we're excited to announce the planned merger of American National Bank headquartered in Danville, Virginia into Atlantic Union Bank. American National has $3.1 billion in assets and is a high-quality community bank with an exceptional 114-year history, a strong core deposit base and outstanding asset quality. This is a company and leadership team we have long admired and know well and the relationship between our 2 banks spans decades.

謝謝你，比爾，大家早上好。今天，我們很高興地宣布總部位於弗吉尼亞州丹維爾的美國國家銀行計劃合併至大西洋聯合銀行。美國國民銀行擁有 31 億美元資產，是一家優質社區銀行，擁有 114 年的卓越歷史、強大的核心存款基礎和出色的資產質量。這是我們長期以來一直欽佩和了解的公司和領導團隊，我們兩家銀行之間的關係跨越了數十年。

We're eager to share our thoughts on this and we will do so after Rob and I provide abbreviated comments on the strong Q2 results for Atlantic Union. Following that, American National Bank Chairman, President and CEO, Jeff Haley, will join us for discussion of the merger.

我們渴望分享我們對此的想法，我們將在 Rob 和我對大西洋聯盟第二季度的強勁業績提供簡短評論後分享我們的想法。隨後，美國國家銀行董事長、行長兼首席執行官 Jeff Haley 將與我們一起討論合併事宜。

It was a solid quarter for AUB, making this easier and hopefully shorter conversation. So let's begin. Last quarter, we spoke of the failures of non-traditional niche banks and how that shook confidence in the American banking system. Thankfully, we now see fewer so-called bank crisis headlines and our clients, our markets, our company and the economy as a whole are demonstrating resiliency.

對於 AUB 來說，這是一個穩定的季度，這使得這次談話變得更容易，而且希望時間更短。那麼讓我們開始吧。上個季度，我們談到了非傳統利基銀行的失敗以及這如何動搖了人們對美國銀行體系的信心。值得慶幸的是，我們現在看到的所謂銀行危機頭條新聞越來越少，我們的客戶、我們的市場、我們的公司和整個經濟都表現出了彈性。

Broadly speaking, we saw our deposit base hold steady, better-than-expected loan growth and admittedly a seasonally strong second quarter, good expense management, modest net interest margin compression and impressive asset quality trends, all of this being a proof point that our franchise remains strong even in these uncertain times.

總體而言，我們看到我們的存款基礎保持穩定，貸款增長好於預期，第二季度的季節性強勁，良好的費用管理，適度的淨息差壓縮和令人印象深刻的資產質量趨勢，所有這些都證明我們的即使在這些不確定的時期，特許經營權仍然強大。

We see the current environment as another confirmation of our long-term strategy of being a diversified, traditional, full-service bank that makes a positive difference in our markets with a strong brand and deep client relationships. We provide economically beneficial services and financing that help people and help businesses. It's a straightforward business model. It works and it's proven the test of time over our 121-year history. This is why soundness, profitability and growth in that order of priority remain our mantra and informs how we run this company.

我們認為當前的環境再次證實了我們的長期戰略，即成為一家多元化、傳統、全方位服務的銀行，通過強大的品牌和深厚的客戶關係在我們的市場中產生積極的影響。我們提供經濟實惠的服務和融資，幫助人們和企業。這是一個簡單的商業模式。它確實有效，並且在我們 121 年的歷史中經受了時間的考驗。這就是為什麼穩健、盈利和增長的優先順序仍然是我們的口號，並指導我們如何運營這家公司。

The remixing of noninterest-bearing deposits to interest-bearing deposits did continue over the quarter, though at a slower pace. Quarter end noninterest-bearing deposits were 26% of total deposits. That's a decline of 2 percentage points linked quarter. Total deposits were steady and recovered from a seasonal dip, finishing down slightly at 1.1% linked quarter annualized, up 6% year-to-date and up 1.8% year-over-year.

本季度，無息存款向有息存款的重新混合確實在繼續，但速度較慢。季末無息存款佔存款總額的26%。環比下降 2 個百分點。總存款保持穩定，並從季節性下降中恢復，年化季度環比小幅下降 1.1%，年初至今增長 6%，同比增長 1.8%。

Q3 customer deposit growth is off to a good start with a loan-to-deposit ratio of 90.6% as of yesterday. Fully taxable equivalent net interest margin declined 5 basis points to 3.45% from 3.50% linked quarter. While our cost of funds rose by 32 basis points, this was largely offset by increased earning asset yields of 27 basis points. By comparison, our Q2 fully taxable equivalent net interest margin of 3.45% was still up from 3.24% year-over-year.

第三季度客戶存款增長開門紅，截至昨日存貸比達90.6%。全額應稅等值淨息差從上一季度的 3.50% 下降 5 個基點至 3.45%。雖然我們的資金成本上升了 32 個基點，但這在很大程度上被盈利資產收益率上升 27 個基點所抵消。相比之下，我們第二季度的全額應稅等值淨息差為 3.45%，仍高於去年同期的 3.24%。

We do expect deposit betas to remain under competitive pressure due to the rising rate cycle but remain manageable as was the case in the second quarter, helping us with NIM management [is] that approximately half our loan balances are variable rate and that we liquidated some securities in the first quarter to reduce higher cost wholesale borrowings.

我們確實預計，由於利率週期上升，存款貝塔仍將面臨競爭壓力，但與第二季度的情況一樣，仍處於可控狀態，這有助於我們進行淨息差管理，因為我們大約一半的貸款餘額是浮動利率的，而且我們清算了一些證券公司在第一季度減少了成本較高的批發借款。

Now let's dig into the macroeconomic conditions and then our quarterly results. Thankfully, inflation appears to be on an improving trend that we expect the Fed is not yet done with its rate tightening cycle. On a positive note, while for purposes of forecasting, we continue to plan for a mild recession, it now seems the possibility of a soft landing has improved over the quarter. Macroeconomic environment remains sound in our footprint, and we do not expect this to change in the near term.

現在讓我們深入研究宏觀經濟狀況和季度業績。值得慶幸的是，通脹似乎呈改善趨勢，我們預計美聯儲的加息週期尚未結束。從積極的角度來看，雖然出於預測目的，我們繼續為溫和衰退做好準備，但現在看來，本季度軟著陸的可能性有所改善。我們的宏觀經濟環境仍然良好，我們預計這種情況在短期內不會改變。

Our markets appear to be healthy, and our lending pipelines, while down modestly from a year ago, remained good and are better than we would have expected. Virginia's last reported unemployment rate of 2.7% in June improved from 3.2% in March and as usual, remains below the national average of 3.6% during the same time. We are not anticipating any materially negative near-term shift away from these low unemployment trends and overall benign credit environment but as always, continue to closely monitor the health of our markets.

我們的市場似乎很健康，我們的貸款渠道雖然比一年前略有下降，但仍然良好，並且比我們預期的要好。弗吉尼亞州 6 月份最新報告的失業率為 2.7%，較 3 月份的 3.2% 有所改善，與往常一樣，仍低於同期全國平均水平 3.6%。我們預計這些低失業率趨勢和總體良好的信貸環境不會在短期內出現任何重大負面變化，但我們將一如既往地繼續密切關注市場的健康狀況。

We are focused on generating positive operating leverage. That is growing our revenue faster than our expenses. Our results were noisy during the second quarter due to certain charges associated with the previously disclosed strategic cost savings initiatives we took during the quarter, which we expect will lower our expense base on run rate by an annualized $17 million. We expect that the lower expense benefit will begin to be realized in August.

我們專注於產生積極的運營槓桿。我們的收入增長速度快於支出增長速度。由於與我們之前披露的本季度採取的戰略成本節約舉措相關的某些費用，我們第二季度的業績表現不佳，我們預計這將使我們的運行費用基礎降低 1700 萬美元的年化費用。我們預計較低的費用效益將於八月份開始實現。

Setting aside these impacts, our adjusted operating noninterest expense run rate was down from the first quarter, reflecting seasonal trends. At the start of the year, we guided to mid-single-digit percentage adjusted operating noninterest expense growth for 2023, but after the strategic cost saving initiatives that we took, we expect to be flat year-over-year for 2023. Rob will speak to the outlook in this section. Here are a few financial highlights for the second quarter which Rob will detail later.

撇開這些影響，我們調整後的營業非利息費用運行率較第一季度有所下降，反映了季節性趨勢。今年年初，我們預計 2023 年調整後營業非利息支出將實現中個位數百分比增長，但在我們採取戰略成本節約舉措後，我們預計 2023 年將同比持平。談談本節的展望。以下是第二季度的一些財務亮點，羅布稍後將詳細介紹。

On a year-over-year basis, we generated positive operating leverage of approximately 1% as adjusted revenue growth was up 5%, while adjusted operating noninterest expenses increased [4%]. I'd also like to point out that pretax, pre-provision adjusted operating earnings increased 8% year-over-year.

與去年同期相比，我們產生了約 1% 的正運營槓桿，調整後的收入增長了 5%，而調整後的運營非利息支出則增加了 [4%]。我還想指出的是，稅前、撥備前調整後的營業利潤同比增長了 8%。

We posted annualized loan growth approximately 13% point-to-point in what is traditionally our second strongest quarter led by growth in C&I. Year-to-date, loan growth was 8%. Lending production was up across C&I and CRE in the quarter. Construction lending production slowed from Q1 and was the lowest in over 2 years, and that's partly by design on our part, and part by developers choosing to delay or in some cases, paused projects.

我們公佈的年化貸款同比增長率約為 13%，這是傳統上由工商業增長帶動的第二強勁季度。年初至今，貸款增長率為 8%。本季度工商業和商業地產的貸款產量有所上升。建築貸款產量較第一季度放緩，達到兩年多來的最低水平，這部分是我們的設計造成的，部分是開發商選擇推遲或在某些情況下暫停項目造成的。

Our pipelines are holding up pretty modestly down from a year ago and remain healthy and balanced. At this time, we expect full-year loan growth to be in the mid-single digits during 2023, while our pipeline levels continue to imply that we may do better, despite the strength in Q2, we continue to suspect opportunities will take a lot of the pull through, especially if rates continue to rise.

我們的管道與一年前相比略有下降，並保持健康和平衡。目前，我們預計 2023 年全年貸款增長將達到中個位數，而我們的管道水平繼續意味著我們可能會做得更好，儘管第二季度表現強勁，但我們仍然懷疑機會將需要很多尤其是在利率繼續上升的情況下。

Further, the wind down or indirect auto lending took effect beginning in June, and we currently project the run rate -- or pardon me, the run off will generate about $200 million of liquidity annually for the next 3 years and that will seek to recycle into our relationship lending.

此外，逐步減少或間接汽車貸款從 6 月份開始生效，我們目前預計運行率 - 或者請原諒，未來 3 年每年將產生約 2 億美元的流動性，並且將尋求回收進入我們的關係貸款。

Additionally, we're expecting some larger payoffs in what is normally a seasonally slow Q3. Leading us to believe that the pace of loan growth will come down materially from what we saw last quarter. We do see opportunities in this environment to continue to acquire new clients in addition to serving existing client needs.

此外，我們預計在通常季節性放緩的第三季度會獲得更大的回報。讓我們相信貸款增長速度將比上季度大幅下降。我們確實在這種環境中看到了除了滿足現有客戶需求之外還繼續獲得新客戶的機會。

While the economic outlook in our footprint and borrower demand could change, for now, we expect to remain in a moderate loan growth mode in 2023. Credit was a good story as we reported annualized net charge-offs at 4 basis points for the second quarter, down from 13 basis points in the first quarter. As a reminder, the majority of first quarter charge-offs is attributed to a memory care facility loan originated by our predecessors [Union Bank] -- last quarter, we moved this to held-for-sale with the expectation of selling the note, but we're pleased to see the client reengage on its resolution, make a sizable loan curtailment, so we moved it back to loans held for investment.

雖然我們的足跡和借款人需求的經濟前景可能會發生變化，但就目前而言，我們預計2023 年貸款將保持溫和增長模式。信貸是一個好消息，因為我們報告第二季度年化淨沖銷為4 個基點，較一季度下降13個基點。提醒一下，第一季度的大部分沖銷都歸因於我們的前身[聯合銀行]發起的記憶護理設施貸款——上個季度，我們將其轉為持有待售，並期望出售該票據，但我們很高興看到客戶重新參與其決議，大幅削減貸款，因此我們將其轉回到投資貸款。

We have yet to see any sign of a systemic inflection point on the asset quality metrics, which remain benign. While we continue to expect a normalization in asset quality at some point following a long run of minimal net charge-offs, we remain confident in and are pleased with our asset quality.

我們尚未看到資產質量指標出現任何系統性拐點的跡象，資產質量指標仍然良性。雖然我們仍然預計在長期的最低淨沖銷之後，資產質量在某個時候會正常化，但我們對我們的資產質量仍然充滿信心並感到滿意。

In sum, we thought this is a solid quarter for Atlantic Union Bank. The banking system showed its resiliency, and we did too. We remain confident in our positioning for the remainder of the year and our ability to navigate challenges, both expected and unexpected. As usual, with uncertainty comes opportunity, and we do see opportunity.

總而言之，我們認為大西洋聯合銀行本季度表現穩健。銀行系統展現出了它的彈性，我們也做到了。我們對今年剩餘時間的定位以及應對預期和意外挑戰的能力仍然充滿信心。像往常一樣，不確定性伴隨著機遇，我們確實看到了機遇。

Atlantic Union is a diversified traditional full-service bank with a strong brand and deep client relationships in stable and attractive markets. We remain on solid footing, and we are resilient.

大西洋聯盟是一家多元化的傳統全方位服務銀行，在穩定且有吸引力的市場中擁有強大的品牌和深厚的客戶關係。我們仍然立足穩固，而且富有彈性。

I'll now turn the call over to Rob to cover the financial results for the quarter. Rob?

我現在將電話轉給 Rob，介紹本季度的財務業績。搶？

Thank you, John, and good morning, everyone. Thanks for joining us today. Please note that for the most part, my commentary will focus on Atlantic Union's second quarter financial results on a non-GAAP adjusted operating basis, which excludes the $3.9 million in pretax costs recorded in the second quarter for the strategic cost saving initiatives as well as pretax loss on the sale of securities of $13.4 million and the pretax $5 million legal reserve, each of which was recorded in the first quarter.

謝謝約翰，大家早上好。感謝您今天加入我們。請注意，在很大程度上，我的評論將重點關注大西洋聯盟在非GAAP 調整後運營基礎上的第二季度財務業績，其中不包括第二季度記錄的戰略成本節約舉措以及390 萬美元的稅前成本。出售證券的稅前虧損為 1,340 萬美元，稅前法定儲備金為 500 萬美元，均記錄在第一季度。

In the second quarter, reported net income available to common shareholders was $52.3 million, and earnings per share -- per common share were $0.70. Adjusted operating earnings available to common shareholders was $55.4 million or $0.74 per common share for the second quarter, which was an increase of $8.2 million or 17.3% from the first quarter and up $4.1 million or 8% from the second quarter of 2022.

第二季度，普通股股東可獲得的淨利潤為 5230 萬美元，普通股每股收益為 0.70 美元。第二季度普通股股東調整後營業利潤為5540 萬美元，即每股普通股0.74 美元，較第一季度增加820 萬美元，即17.3%，較2022 年第二季度增加410 萬美元，即8% 。

The adjusted operating return on tangible common equity was 17% in the second quarter, which was up from $15.2 in the prior quarter. The adjusted operating return on assets was 1.16% in the second quarter, which was up 16 basis points from the first quarter. And on an adjusted operating basis, the efficiency ratio came in at 55% in the second quarter, down slightly from 56% in the prior quarter.

第二季度調整後有形普通股運營回報率為 17%，高於上一季度的 15.2 美元。第二季度調整後運營資產回報率為1.16%，較一季度上升16個基點。在調整後的運營基礎上，第二季度的效率率為 55%，略低於上一季度的 56%。

Turning to credit loss reserves. As of the end of the second quarter, the total allowance for credit losses was $136 million, which was an increase of approximately $4.5 million from the first quarter, primarily due to loan growth in the second quarter and the impact of continued uncertainty in the economic outlook. The total allowance for credit losses as a percentage of total loans remained steady at 90 basis points at the end of June.

轉向信用損失準備金。截至二季度末，信貸損失準備金總額為1.36億美元，較一季度增加約450萬美元，主要是由於二季度貸款增長以及經濟持續不確定性的影響。外表。 6月末，信貸損失準備總額佔貸款總額的比例穩定在90個基點。

The provision for credit losses of $6.1 million in the second quarter was down from the prior quarter's $11.9 million provision for credit losses, primarily driven by lower charge-offs.

第二季度的信貸損失準備金為 610 萬美元，低於上一季度的 1,190 萬美元信貸損失準備金，這主要是由於沖銷減少所致。

Net charge-offs decreased to $1.6 million or 4 basis points annualized in the second quarter and from $4.6 million or 13 basis points annualized in the first quarter. The year-to-date net charge-off ratio was 8 basis points on an annualized basis.

第二季度淨沖銷額從第一季度的 460 萬美元（年化率 13 個基點）降至 160 萬美元（年化率 4 個基點）。年初至今的年化淨沖銷率為8個基點。

Now turning to the pretax pre-provision components of the income statement for the second quarter. Tax equivalent net interest income was $155.8 million which was down approximately $1.5 million or 1% from the first quarter, driven by higher deposit costs due to increases in market interest rates as well as changes in the deposit mix as depositors continue to migrate to higher costing interest-bearing deposit accounts. These decreases were partially offset by an increase in loan yields on the company's variable rate loan portfolio due to increases in short-term interest rates during the quarter as well as by the impact of average loan growth.

現在轉向第二季度損益表中的稅前預撥備部分。稅等淨利息收入為 1.558 億美元，較第一季度下降約 150 萬美元，即 1%，原因是市場利率上升導致存款成本上升，以及儲戶繼續轉向更高成本計算而導致存款結構發生變化。有息存款賬戶。這些下降被該季度短期利率上升以及平均貸款增長的影響導致公司可變利率貸款組合的貸款收益率上升所部分抵消。

Second quarter's tax equivalent net interest margin was 3.45%, a net decrease of 5 basis points from the previous quarter due to an increase of 27 basis points in the yield on earning assets, which was more than offset by a 32 basis point increase in our cost of funds. The increase in the second quarter's earnings asset yield was primarily due to the 27 basis points increase in the loan portfolio -- loan yields, which had a 22 basis points positive impact on the second quarter's net interest margin. And the positive impact of changes in the earning asset mix between quarters added 5 basis points to the second quarter's net interest margin.

第二季度稅等淨息差為 3.45%，較上季度淨下降 5 個基點，原因是生息資產收益率上升 27 個基點，但被我們的盈利資產收益率上升 32 個基點所抵消。資金成本。第二季度盈利資產收益率的上升主要是由於貸款組合——貸款收益率上升了27個基點，這對第二季度的淨息差產生了22個基點的積極影響。季度間盈利資產組合變化的積極影響使第二季度的淨息差增加了 5 個基點。

The loan portfolio yield increased to 5.62% in the second quarter from 5.35% in the first quarter, primarily due to the impact of increases in short-term market interest rates on variable rate loan yields. The 32 basis point increase in the second quarter's cost of funds to 1.74% was primarily due to the 33 basis point increase in the cost of deposits to 1.61%, which had a 29 basis point negative impact on the second quarter's net interest margin.

貸款組合收益率由一季度的5.35%上升至二季度的5.62%，主要是由於短期市場利率上升對浮動利率貸款收益率的影響。第二季度資金成本上升32個基點至1.74%，主要是由於存款成本上升33個基點至1.61%，對第二季度淨息差產生29個基點的負面影響。

The deposit cost increase was driven by changes in the deposit mix as depositors migrated to higher cost in interest-bearing deposit accounts during the quarter, increased levels of higher cost broker deposits as well as by increases in interest-bearing deposit rates driven by rising market interest rates.

存款成本增加的原因包括存款結構的變化（本季度儲戶轉向更高成本的計息存款賬戶）、高成本經紀商存款水平的增加以及市場上漲推動計息存款利率上升。利率。

Noninterest income increased $14.6 million to $24.2 million for the second quarter primarily due to the $13.4 million pretax loss on the sale of securities recorded in the prior quarter. Adjusted operating noninterest income, which excludes gain and loss on sales of securities increased $1.2 million in the second quarter, primarily due to an increase of approximately $900,000 in loan-related interest rate swap fee income from the prior quarter due to higher transaction volumes, an increase in loan syndication revenue of approximately $259,000 as well as increases in several noninterest income categories, including certain service charges, debit interchange fees and fiduciary and asset management fee income. The noninterest income increases were partially offset by a $405,000 decline in mortgage banking income due to a decline in our gain on sale margins during the quarter.

第二季度非利息收入增加 1,460 萬美元，達到 2,420 萬美元，主要是由於上一季度記錄的證券銷售稅前虧損 1,340 萬美元。調整後的營業非利息收入（不包括證券銷售損益）在第二季度增加了120 萬美元，主要是由於交易量增加、與貸款相關的利率互換費收入較上一季度增加了約90 萬美元，銀團貸款收入增加約 259,000 美元，幾個非利息收入類別也增加，包括某些服務費、借記交換費以及信託和資產管理費收入。非利息收入的增長被抵押貸款銀行業務收入下降 405,000 美元部分抵消，原因是本季度銷售利潤率下降。

Noninterest expense decreased $2.6 million to $105.7 million for the second quarter from $108.3 million in the prior quarter. Adjusted operating noninterest expense, which excludes amortization expense related to intangible assets in the first and second quarters, expenses incurred associated with the strategic cost savings initiatives in the second quarter and a legal reserve associated with an ongoing regulatory matter recorded in the prior quarter.

第二季度非利息支出從上一季度的 1.083 億美元減少 260 萬美元至 1.057 億美元。調整後的運營非利息費用，不包括與第一季度和第二季度無形資產相關的攤銷費用、與第二季度戰略成本節約舉措相關的費用以及與上一季度記錄的持續監管事項相關的法定準備金。

Noninterest adjusted expenses declined by $1.5 million to $99.5 million in the second quarter. The quarterly decline in adjusted operating noninterest expenses was primarily driven by OREO-related gains recognized in the current quarter of $879,000 as well as reduced branch closing costs of $466,000 as compared to the prior quarter.

第二季度非利息調整後支出下降 150 萬美元，至 9950 萬美元。調整後營業非利息支出的季度下降主要是由於本季度確認的奧利奧相關收益為 879,000 美元，以及與上一季度相比減少的分行關閉成本 466,000 美元。

In addition, salaries and benefits expenses were reduced by $1.4 million due to seasonal decreases in payroll-related taxes and 401(k) contribution expenses. These expense declines were partially offset by increases of $1 million in professional services expense related to LIBOR transition and other strategic projects. $466,000 in marketing and advertising expense and $424,000 in technology and data processing expense increases.

此外，由於工資相關稅費和 401(k) 供款費用的季節性下降，工資和福利費用減少了 140 萬美元。這些費用下降被與 LIBOR 過渡和其他戰略項目相關的專業服務費用增加 100 萬美元所部分抵消。營銷和廣告費用增加 466,000 美元，技術和數據處理費用增加 424,000 美元。

At period end, loans held for investment, net of deferred fees and costs were $15.1 billion, an increase of approximately $483 million or 13% on an annualized basis for the prior quarter, driven by increases in commercial loan balances of $454 million or 14.8% linked quarter annualized and consumer loan balance growth of $28.5 million or 4.9% annualized.

截至期末，扣除遞延費用和成本後的投資貸款為 151 億美元，較上一季度年化增長約 4.83 億美元，即 13%，這是由商業貸款餘額增加 4.54 億美元或 14.8% 推動的季度年化和消費貸款餘額關聯增長2850 萬美元，年化增長4.9%。

At the end of June, total deposits stood at $16.4 billion, a decrease of $44 million or approximately 1% annualized from the prior quarter due to the impact of customer behavior in response to inflation and higher market interest rates, resulting in a decline in demand deposit balances, partially offset by an increase in interest-bearing, checking (inaudible) balances, customer (inaudible) time deposits and broker deposits. At the end of the second quarter, Atlantic Union Bankshares and Atlantic Union Bank's regulatory capital ratios were well above, well-capitalized levels.

截至6月底，存款總額為164億美元，較上季度減少4,400萬美元，年化約1%，原因是客戶行為因應對通脹和市場利率上升而影響，導致需求下降存款餘額，部分被計息、支票（聽不清）餘額、客戶（聽不清）定期存款和經紀人存款的增加所抵消。截至第二季度末，大西洋聯合銀行股票和大西洋聯合銀行的監管資本比率遠高於資本充足水平。

In addition, on a pro forma basis, we remain well capitalized as of the end of the second quarter, if you include the negative impact of AOCI and held-to-maturity securities unrealized losses in the calculation of the regulatory capital ratios.

此外，在預計的基礎上，如果在計算監管資本比率時考慮到 AOCI 和持有至到期證券未實現損失的負面影響，我們截至第二季度末的資本狀況仍然良好。

For the most part, we are sticking with the full year 2023 financial outlook referenced in our first quarter's earnings call. We expect to generate loan growth in the mid-single-digit growth range. We continue to project that the full year -- fully taxable equivalent net interest margin will fall in the range of between 3.35% and 3.45%, driven by the updated assumption that the Federal Reserve Bank will increase the Fed funds rate to 5.5% tomorrow and maintain it at that level throughout 2023.

在很大程度上，我們堅持第一季度財報電話會議中提到的 2023 年全年財務前景。我們預計貸款增長將在中個位數增長范圍內。我們繼續預測，由於美聯儲明天將聯邦基金利率提高至 5.5% 的最新假設，全年完全應稅等值淨息差將下降至 3.35% 至 3.45% 之間。整個 2023 年保持在這一水平。

In addition, we continue to project that our through-the-cycle deposit betas will approximate 40%, which will be more than offset by the projected through-the-cycle loan yield beta of approximately 50%. As a result of loan growth in our fully [taxable] equivalent net interest margin projection, we continue to expect fully taxable equivalent net interest income to increase by mid-single digits in 2023 for full year 2022 levels. We also expect that the company will generate positive adjusted operating leverage in 2023 due to the expected mid-single-digit adjusted operating revenue growth outpacing the expected relatively flat adjusted operating noninterest expense growth in 2023 for full year 2022 levels as a result of the strategic cost saving measures we took earlier in the quarter.

此外，我們繼續預計我們的整個週期存款貝塔值將約為 40%，這將被預計的約 50% 的整個週期貸款收益率貝塔值所抵消。由於我們的完全[應稅]等值淨息差預測中的貸款增長，我們繼續預計2023年完全應稅等值淨利息收入將在2022年全年水平上實現中個位數增長。我們還預計，該公司將在 2023 年產生正的調整後經營槓桿，因為預計 2023 年調整後營業收入增長將超過 2022 年全年相對持平的調整後營業非利息支出增長。我們在本季度早些時候採取的成本節約措施。

In summary, Atlantic Union delivered strong financial results in the second quarter despite the challenging banking environment, we find ourselves in. As a result, we believe we are well positioned to continue to generate sustainable, profitable growth and to build long-term value for our shareholders in 2023 and beyond.

總之，儘管我們所處的銀行環境充滿挑戰，但大西洋聯盟在第二季度仍取得了強勁的財務業績。因此，我們相信我們有能力繼續實現可持續的盈利增長，並為客戶創造長期價值。 2023年及以後我們的股東。

We're now excited to turn our attention to providing details of our merger announcement with American National Bank. For this discussion, John and I will be joined by American National's Chairman and CEO, Jeff Haley.

我們現在很高興將注意力轉向提供我們與美國國家銀行合併公告的詳細信息。對於本次討論，美國國民黨董事長兼首席執行官傑夫·黑利 (Jeff Haley) 將與約翰和我一起參加本次討論。

Thank you, Rob, and we are excited. Now that we've hit the high points for the quarter. Let's talk about the partnership with the venerable American National Bank. As noted on Slides 2 and 3 of the presentation for those watching, the merger will be addressed in a proxy statement of American National and a prospectus of Atlantic Union to be filed with the SEC, we urge you to read it when it becomes available because it will contain important information. Information regarding the persons who made under the rules of the SEC, be considered participants in the solicitation of American National shareholders in connection with the proposed merger and will be set forth in the proxy statement prospectus when it is filed with the SEC.

謝謝你，羅布，我們很興奮。現在我們已經達到了本季度的高點。我們來談談與歷史悠久的美國國家銀行的合作關係。正如演示文稿的幻燈片2 和幻燈片3 中指出的那樣，此次合併將在美國國民黨的委託書和大西洋聯盟向美國證券交易委員會提交的招股說明書中得到解決，我們強烈建議您在發布後閱讀它，因為它將包含重要信息。根據 SEC 規則，被視為參與與擬議合併有關的 American National 股東征集的人員的信息，將在向 SEC 提交的股東委託書招股說明書中列出。

Now let me begin by saying how excited we are to join with American National Bank. We have long admired this team and company and it is one of Virginia's premier community banks with a rich 114-year history and a deep commitment to its communities, we share a common legacy with our own 121-year-old history, and we have a highly compatible culture. We'll ask Jeff Haley to speak about this and the strategic rationale from his perspective in just a moment.

現在我首先要說的是，我們對加入美國國家銀行感到多麼興奮。我們長期以來一直欽佩這個團隊和公司，它是弗吉尼亞州首屈一指的社區銀行之一，擁有 114 年的豐富歷史和對其社區的堅定承諾，我們與自己 121 年的歷史有著共同的遺產，我們有高度兼容的文化。稍後我們將請傑夫·哈利 (Jeff Haley) 從他的角度談談這一點以及戰略原理。

This merger is between 2 institutions with a decades-long relationship and a deep friendship between our banks and our respected management teams that began years ago, long before my time. When it comes to strategy, I think of AUB as less opportunistic and more intentional. We'll now make the case for why that is so with this combination. If you recall, our shareholder value proposition, you can see why we believe this transaction delivers on every one of our points.

這次合併是兩家機構之間的合作，我們的銀行和我們受人尊敬的管理團隊之間有著長達數十年的合作關係和深厚的友誼，這種友誼早在我的時代之前就開始了。說到戰略，我認為 AUB 的機會主義更少，更有目的性。現在我們將說明為什麼這種組合會出現這種情況。如果您還記得我們的股東價值主張，您就會明白為什麼我們相信這次交易兌現了我們的每一個觀點。

We have worked hard in our company to build a leading regional presence in Virginia, and we believe this transaction will further that objective by increasing our scale, density and scarcity value in Virginia, while also creating something we have long sought and that is a platform to grow in North Carolina. This is an investment and one that will enhance our financial strength through increased profitability, a larger core deposit base and improved liquidity. We will enhance our growth potential in Virginia and North Carolina. If this were a Virginia only franchise, that would be compelling enough. But the critical mass this achieves in North Carolina creates an opportunity we can build on there for years to come.

我們公司一直在努力在弗吉尼亞州建立領先的區域業務，我們相信這項交易將通過增加我們在弗吉尼亞州的規模、密度和稀缺價值來進一步實現這一目標，同時也創造了我們長期以來尋求的東西，那就是一個平台在北卡羅來納州成長。這是一項投資，將通過提高盈利能力、擴大核心存款基礎和改善流動性來增強我們的財務實力。我們將增強弗吉尼亞州和北卡羅來納州的增長潛力。如果這是弗吉尼亞州唯一的特許經營權，那就足夠引人注目了。但北卡羅來納州所達到的臨界質量創造了一個我們可以在未來幾年繼續發展的機會。

Together, we'll bring new products and services to the legacy American National footprint, especially in commercial and industrial banking. The transaction will further differentiate our financial performance by adding scale, efficiency and talent. All of this is aided by American National being a traditional high-performing bank renowned for its customer experience, granular core deposit base and exemplary asset quality, we will be stronger together. Combined, we add to our already powerful franchise, a stronger still presence in Virginia, unrivaled by any other Virginia bank.

我們將共同為美國國民銀行的傳統足跡帶來新產品和服務，特別是在商業和工業銀行業務領域。此次交易將通過擴大規模、效率和人才來進一步使我們的財務業績脫穎而出。所有這一切都得益於美國國民銀行作為一家傳統的高性能銀行，以其客戶體驗、精細的核心存款基礎和模範的資產質量而聞名，我們將共同變得更加強大。合併後，我們在弗吉尼亞州的影響力更加強大，是任何其他弗吉尼亞銀行都無法比擬的。

I would argue -- it will also make us the leading Virginia-based bank in the Western part of Virginia, providing more convenience, options and capabilities to our customers and those communities. This will also better position us to deliver top-tier financial performance for our shareholders. Rob will speak to this momentarily.

我認為，這也將使我們成為弗吉尼亞州西部領先的弗吉尼亞州銀行，為我們的客戶和這些社區提供更多便利、選擇和能力。這也將使我們能夠更好地為股東提供一流的財務業績。羅布稍後會談到這一點。

As mentioned, we will add to our scarcity value in Virginia and increase our future options as it provides a meaningful North Carolina presence in the Piedmont Triad region. By combining that with our 4 branches in Eastern North Carolina and our Charlotteville production office, we will be well positioned to drive an expansion strategy in North Carolina over time.

如前所述，我們將增加弗吉尼亞州的稀缺價值，並增加我們未來的選擇，因為它為北卡羅來納州在皮埃蒙特三合會地區提供了有意義的存在。通過將其與我們在北卡羅來納州東部的 4 個分支機構以及夏洛特維爾生產辦事處相結合，我們將能夠隨著時間的推移推動北卡羅來納州的擴張戰略。

Importantly, this combination delivers. It delivers on our stated goals for M&A even in the current rate environment. Our goals, which we have publicly stated for years are: one, a 3-year tangible book value earned back using the crossover method; two, immediately accretive to earnings per share, excluding onetime charges; and three, an 18% or better internal rate of return. We believe we are checking all of these boxes.

重要的是，這種組合可以實現。即使在當前的利率環境下，它也能實現我們既定的併購目標。我們多年來公開宣稱的目標是：一是通過交叉法賺回3年有形賬面價值；二、立即增加每股收益，不包括一次性費用；第三，18% 或更高的內部回報率。我們相信我們正在檢查所有這些框。

We also believe that execution risk will be mitigated by the unquestioned quality of American National's franchise in our mutual familiarity and decades-long institutional relationship and personal relationships among the management teams. Said differently, we've known each other well for a very long time. For those of you who are unfamiliar with American National, I would like to introduce Chairman, President and CEO, Jeff Haley. Jeff, thank you so much for joining us for this call. May I ask that you speak please to who is American National? And why did you decide to partner with Atlantic Union?

我們還相信，美國國民公司的特許經營質量不容置疑，我們之間的相互熟悉度以及管理團隊之間長達數十年的機構關係和個人關係也將降低執行風險。換句話說，我們已經認識很長時間了。對於那些不熟悉美國國民航空的人，我想介紹一下董事長、總裁兼首席執行官傑夫·哈利 (Jeff Haley)。傑夫，非常感謝您參加我們的這次電話會議。請問您可以跟誰說一下美國國民嗎？您為何決定與大西洋聯盟合作？

So John, I've been called, American National has been called a lot of things. I've never been called venerable. I think that was a compliment...

所以約翰，我被稱為“美國國民”，被稱為很多東西。我從來沒有被稱為可敬的人。我認為這是一種讚美...

It is a compliment.

這是一種讚美。

So look, this is an exciting day, I think, for both companies. And those that don't know me or the company, so we were founded in Danville, Virginia in 1909. 25 years ago, we were doing business in just Danville, Virginia. We're about a $200 million community bank. My colleague, my predecessor, Charlie Majors, and I taken this company from a little Danville Bank to $3 billion, 2 states, 11 markets. And one of the things I'm most proud of is that over that period of time, we've gone through all types of economies. And there's not a dent, there's not scrape, there's not a scratch on this company. I think we've done a phenomenal job.

所以，我認為，對於兩家公司來說，這是令人興奮的一天。那些不了解我或公司的人，我們於 1909 年在弗吉尼亞州丹維爾成立。25 年前，我們只是在弗吉尼亞州丹維爾開展業務。我們是一家價值 2 億美元的社區銀行。我的同事、我的前任查理·梅傑斯 (Charlie Majors) 和我將這家公司從丹維爾銀行 (Danville Bank) 發展成為價值 30 億美元、覆蓋 2 個州、11 個市場的公司。我最自豪的事情之一是，在那段時間裡，我們經歷了各種類型的經濟。這家公司沒有凹痕，沒有刮擦，沒有划痕。我認為我們做得非常出色。

As it relates to this transaction, I do need to highlight, we have an incredible Board of Directors that have been by our side for many years, and they've always been shareholder-focused. To supplement that I've got a great management team and then another group of teammates that help us run this company every day. The way I look at my job is I tell everybody, I manage a 3-legged stool, the shareholders, the customers and the employees. And I along with our Board, gotten to the point where even with our incredible performance, our incredible reputation, we felt as though we were losing relevance not to just our shareholder but our customers in the way this industry is changing rapidly.

就此次交易而言，我確實需要強調，我們擁有一支令人難以置信的董事會，他們多年來一直陪伴在我們身邊，而且他們始終以股東為中心。作為補充，我擁有一支出色的管理團隊，還有另一組隊友每天幫助我們運營這家公司。我看待我工作的方式是，我告訴大家，我管理著一個三足凳，股東、客戶和員工。我和我們的董事會已經達到這樣的程度：即使我們擁有令人難以置信的業績和令人難以置信的聲譽，我們仍然覺得，在這個行業快速變化的過程中，我們不僅失去了與股東的聯繫，也失去了與客戶的聯繫。

My concern was that we needed to do something, and there were really no other better options than partnering with what I believe taking 2 of the best banks in Virginia over 200 years of experience, both high-performing companies, putting them together to solidify Virginia, but then to also set the springboard for continued expansion in North Carolina.

我擔心的是，我們需要做點什麼，除了與我認為擁有弗吉尼亞州最好的兩家銀行（兩家擁有200 多年經驗的銀行）合作之外，確實沒有其他更好的選擇，這兩家銀行都是高性能公司，將它們結合在一起以鞏固弗吉尼亞州，但隨後也為在北卡羅來納州的持續擴張奠定了跳板。

This is, in some ways, a sad day, but it's because of 114 years of a company being based in Danville, Virginia. But that is more personal from the 3-legged stool perspective, this is an incredible transaction. I am so excited to be doing it. These are not new people to us. These are dear, dear friends of ours that we've known, as John said, goes back 4 decades. But I mean, I know John, I know Maria, I know Rob, I know Shawn, I know Dave Ring, I mean these are friends of mine and I am a little bit today like a proud father, letting my child go to college. I'm a little sad, but I'm so excited about the opportunities for everyone involved in this transaction.

從某些方面來說，這是悲傷的一天，但這是因為這家公司已經在弗吉尼亞州丹維爾成立了 114 年。但從三足凳的角度來看，這更個人化，這是一筆令人難以置信的交易。我很高興能這麼做。這些對我們來說並不陌生。正如約翰所說，這些都是我們親愛的朋友，我們認識他們可以追溯到 4 年前。但我的意思是，我認識約翰，我認識瑪麗亞，我認識羅布，我認識肖恩，我認識戴夫·林，我的意思是這些是我的朋友，今天我有點像一個自豪的父親，讓我的孩子上大學。我有點難過，但我對參與這次交易的每個人都有機會感到非常興奮。

So John, I hope that helped and gave everybody a little bit of insight to where our head was.

約翰，我希望這對大家有所幫助，讓大家對我們的想法有一些了解。

Yes, it certainly did give insights that -- need -- I say any more about why we respect this company and this leadership team. That's as clear as pictures could be painted. From our perspective, if you're going to do a bank merger in this environment, this is exactly what you would want to do.

是的，它確實提供了一些見解，我需要更多地說明為什麼我們尊重這家公司和這個領導團隊。這就像畫畫一樣清晰。從我們的角度來看，如果您要在這種環境下進行銀行合併，這正是您想要做的。

All right. I have a few more comments and Rob will get into the financial aspects of it, and then we'll -- Jeff, Rob and I and others will be available for questions.

好的。我還有一些意見，羅布將討論其中的財務方面，然後我們——傑夫、羅布和我以及其他人將可以回答問題。

So as should be evident. We have a great respect and admiration for Jeff and his team and are deeply appreciative that American National's Board of Directors chose to partner with us. Through the years, we've often conferred and learn much from each other and will now do so like never before. We're grateful that post closing, Jeff has agreed to stay on with us for 2 years as a consultant on our regional community banking strategy in the American National legacy markets, which will be led by American National executives. His intimate knowledge and experience that will be invaluable.

顯而易見。我們對傑夫和他的團隊懷有極大的尊重和欽佩，並對美國國民公司董事會選擇與我們合作深表感謝。多年來，我們經常互相交流並互相學習，現在將以前所未有的方式這樣做。我們很高興在交易結束後，傑夫同意繼續留在我們兩年，擔任我們在美國國家傳統市場的區域社區銀行戰略的顧問，該戰略將由美國國家高管領導。他的豐富知識和經驗將是無價的。

Further, aside from his consulting role, we are pleased and grateful that he will serve as our representative to 2 Danville, Virginia Charitable Trust currently administered by American National that over the years, have provided significant contributions to not-for-profit organizations in that community. No one knows that community better than Jeff.

此外，除了他的諮詢角色外，我們很高興也很感激他將擔任弗吉尼亞州丹維爾市2 號慈善信託基金的代表，該信託基金目前由美國國民黨管理，多年來，該信託基金在以下方面為非營利組織提供了重大貢獻：社區。沒有人比傑夫更了解這個社區。

Stepping back and looking at the map on this slide, it should be evident while we are interested in adding this company to the Atlantic Union Bank family, it's a hand in glove fit to our franchise that should be evident. Slide 8 shows combined depository market share, starting with Virginia. Data is on the left, this further solidifies our clear positioning as the #4 player in Virginia, eclipsed only by the 3 mega banks that on a combined basis account for 50% depository market share here per our calculations. Through the years, we have transformed Atlantic Union Bank to be the challenger to these companies while also remaining nimble enough to compete against the small banks too. Notice the difference between us and the next largest competitors.

退後一步，看看這張幻燈片上的地圖，很明顯，雖然我們有興趣將這家公司添加到大西洋聯合銀行家族中，但它與我們的特許經營權密切相關，這一點應該是顯而易見的。幻燈片 8 顯示了從弗吉尼亞州開始的合併存款市場份額。數據位於左側，這進一步鞏固了我們作為弗吉尼亞州第四大銀行的明確定位，僅比 3 家大型銀行黯然失色，根據我們的計算，這 3 家銀行合計佔據這裡 50% 的存款市場份額。多年來，我們已經將大西洋聯合銀行轉變為這些公司的挑戰者，同時也保持足夠的靈活性來與小銀行競爭。請注意我們與第二大競爭對手之間的差異。

We think this is as fine an example as you will see of what scarcity value looks like. It looks exactly like this. On the far right, you can see how fragmented North Carolina depository market share is below the top 4. While our presence there will be small on a combined basis. We will have a critical mass to build from, and we see room to run. Bottom line, American National is in good markets with meaningful upside for growth as we bring to bear new products, services and more balance sheet capacity.

我們認為這是一個很好的例子，您將看到稀缺價值的樣子。它看起來就像這樣。在最右邊，您可以看到北卡羅來納州存款市場份額在前 4 名之下的分散程度。雖然我們在該市場的份額加起來很小。我們將擁有足夠的建設基礎，並且我們看到了運行的空間。總而言之，美國國民公司處於良好的市場中，隨著我們推出新產品、服務和更多的資產負債表能力，其增長潛力巨大。

On Slide 10, we detail the various markets, and we'll let you review them on your own. But you should be able to see how we complement each other very well. To wrap up my remarks, this is going to be a great partnership. This is a rebirth. In such an uncertain environment, we believe there is no better partner for us in American National, a high-quality Virginia [stalwart] of a community bank that we know and trust.

在幻燈片 10 上，我們詳細介紹了各個市場，並讓您自行回顧。但你應該能夠看到我們如何很好地互補。作為我的發言的總結，這將是一次偉大的合作夥伴關係。這是一次重生。在如此不確定的環境中，我們相信美國國民銀行是我們最好的合作夥伴，這是一家我們了解並信任的高質量弗吉尼亞社區銀行。

On a personal note, I'm excited to see us build density in Southwest Virginia and enter the south side of the state. The 3 largest cities in Virginia, where we currently do not have a physical presence outside of Northern Virginia, our Lynchburg, Danville and Martinsville. American National will fill a missing piece of the Virginia jigsaw puzzle for us in terms of our franchise. Additionally, I know, respect and care about these markets because I am a native of Southwest Virginia, myself, this is the area of the state, I call home.

就我個人而言，我很高興看到我們在弗吉尼亞州西南部建立密度並進入該州的南部。弗吉尼亞州最大的 3 個城市（林奇堡、丹維爾和馬丁斯維爾）是我們目前在北弗吉尼亞州以外沒有實體業務的城市。美國國民航空將在我們的特許經營權方面為我們填補弗吉尼亞拼圖中缺失的一塊。此外，我知道、尊重和關心這些市場，因為我本人就是弗吉尼亞州西南部的人，這是該州的地區，我稱之為家。

Earlier in my career, I led commercial banking for the same Virginia markets in which American National operates while based in Roanoke and under their potential. Further Southside Virginia is arguably one of the best positioned markets in Virginia for industrial development given its land availability, skilled workforce, proximity to the Piedmont Triad and long history of manufacturing. We can make good use of our C&I capabilities, the American National franchise.

在我職業生涯的早期，我曾在美國國民銀行運營的同一弗吉尼亞市場領導商業銀行業務，同時總部設在羅阿諾克並發揮其潛力。此外，鑑於其土地供應、熟練勞動力、靠近皮埃蒙特三合會以及悠久的製造業歷史，弗吉尼亞州南區可以說是弗吉尼亞州工業發展最有利的市場之一。我們可以充分利用我們的 C&I 能力，即美國國家特許經營權。

And last, for those who didn't know this, actually I still consider myself a North Carolina banker. Having begun my career at Wachovia Bank & Trust in Winston-Salem, in 1987. I've learned this business in the Piedmont Triad, I know the potential of that region, and I am delighted to see us expand there.

最後，對於那些不知道這一點的人來說，實際上我仍然認為自己是北卡羅來納州的銀行家。 1987 年，我在溫斯頓塞勒姆的美聯銀行信託銀行開始了我的職業生涯。我在皮埃蒙特三合會學到了這項業務，我知道該地區的潛力，我很高興看到我們在那裡擴張。

I'll now turn the call over to Rob for more details.

我現在將把電話轉給 Rob 以了解更多詳細信息。

Yes. Thanks, John. Let me switch gears to outline the expected financial impact of the merger from the strategic aspects of transaction, which, as John just noted, we believe, are very compelling. I'll start by outlining the transaction structure and some of the key financial terms over the next few pages.

是的。謝謝，約翰。讓我換個角度，從交易的戰略方面概述合併的預期財務影響，正如約翰剛才指出的那樣，我們認為，這是非常引人注目的。我將首先在接下來的幾頁中概述交易結構和一些關鍵財務術語。

On Slide 11, we recap the transaction structure and key terms of the transaction. In terms of the transaction itself, it's a 100% stock deal with a fixed exchange ratio of 1.35 common shares of AUB from each share of American National's common stock. This works out to approximately 16% pro forma ownership of the combined company by American National's shareholders. That translates into an aggregate transaction value of about $417 million to be paid or $39.23 for Americans National share based on a 10-day weighted average closing share price of Atlantic Union stock ending last night. This represents a per share market premium for American National shareholders of 24% over yesterday's closing stock price.

在幻燈片 11 中，我們回顧了交易結構和交易的關鍵條款。就交易本身而言，這是一筆100%的股票交易，固定兌換比例為每股美國國民普通股兌換1.35股AUB普通股。這意味著美國國民公司的股東在合併後的公司中擁有大約 16% 的所有權。這意味著需要支付的總交易價值約為 4.17 億美元，根據昨晚結束的大西洋聯盟股票 10 天加權平均收盤價計算，美國國民股票交易價值為 39.23 美元。這意味著美國國民公司股東的每股市場溢價比昨天的收盤價高出 24%。

The implied transaction metrics represents a price to tangible book value multiple of 174%, a price to 2024 forward consensus earnings plus cost saves multiple of 8.4x and a core deposit premium of 7.2%. We believe this is a fair price to pay to acquire such an outstanding banking franchise. Upon closing the transaction, 2 members of American National's Board of Directors, Nancy Agee and Joel Shepherd will join Atlantic Union's Board, and as John noted, Jeff Haley will serve as a consultant to our leadership team.

隱含交易指標代表價格與有形賬面價值的倍數為 174%，價格與 2024 年遠期共識收益加成本節省的倍數為 8.4 倍，核心存款溢價為 7.2%。我們相信，為了獲得如此出色的銀行特許經營權，這是一個公平的價格。交易完成後，美國國民銀行董事會的兩名成員 Nancy Agee 和 Joel Shepherd 將加入大西洋聯盟董事會，正如 John 指出的那樣，Jeff Haley 將擔任我們領導團隊的顧問。

In addition, we will operate the former American National markets under a regional community banking model which will be led by 2 key American National Bank executives who know these markets very well. The transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and the receipt of required regulatory approvals and American National shareholder approval. In addition, we are targeting the second quarter of 2024 to complete systems conversions.

此外，我們將在區域社區銀行模式下運營前美國國家市場，該模式將由兩位非常了解這些市場的美國國家銀行主要高管領導。該交易預計將於 2024 年第一季度完成，具體取決於慣例成交條件並獲得所需的監管批准和美國國民股東批准。此外，我們的目標是 2024 年第二季度完成系統轉換。

On Page 12, we lay out the key transaction assumptions. Balance sheet marks include a gross loan credit mark of $25.4 million or 1.13% of loan balances and a day 2 CECL reserve adjustment on non-PCD loans of $19.7 million, the so-called double count. We're also modeling a negative loan interest rate mark of approximately $120 million, $8.4 million write-up of American National's owned branch and office real estate based on broker opinions and market value and a total liability write-down of $13.7 million related to time deposits and (inaudible) based on the current level of interest rates.

在第 12 頁，我們列出了關鍵的交易假設。資產負債表標記包括總貸款信用標記 2540 萬美元或貸款餘額的 1.13%，以及非 PCD 貸款的第 2 天 CECL 準備金調整 1970 萬美元，即所謂的雙重計算。我們還對大約1.2 億美元的負貸款利率進行建模，根據經紀人意見和市場價值對美國國民銀行擁有的分行和辦公室房地產進行840 萬美元的減記，以及與時間相關的1,370 萬美元的總負債減記存款和（聽不清）基於當前利率水平。

Intangible purchase accounting adjustments included a core deposit intangible asset of $87.2 million, which is approximately 3.75% of non-time deposits. In addition, we reported a wealth intangible asset of $7.5 million. In addition, we are also assuming that the $68 million in unrealized investment portfolio losses embedded in American National's accumulated other comprehensive income or AOCI as of June 30 is realized through income over a 6-year period.

無形購買會計調整包括核心存款無形資產8,720萬美元，約佔非定期存款的3.75%。此外，我們還報告了 750 萬美元的財富無形資產。此外，我們還假設美國國民截至 6 月 30 日累計其他綜合收益或 AOCI 中包含的 6800 萬美元未實現投資組合損失是通過 6 年期間的收入實現的。

Turning the page. As John mentioned earlier, we have been very public about our discipline around mergers and acquisitions in terms of the key financial targets that we expect when we enter into any merger transaction. I'll summarize those here as a reminder. Immediate earnings accretion to EPS, an earn-back of tangible book value dilution, if any, of 3 years or less and an internal rate of return of at least 18%.

翻過這一頁。正如約翰之前提到的，我們一直非常公開地公開了我們在進行任何併購交易時預期的關鍵財務目標方面的併購紀律。我將在這裡總結這些作為提醒。 EPS 收益立即增加，有形賬面價值攤薄（如果有）的盈利在 3 年或更短的時間內實現，並且內部回報率至少為 18%。

As you can see, we expect the transaction of American National to check each of these boxes with projected EPS accretion of approximately 19%, an earn-back of tangible book value dilution of 9.7% in less than 3 years and an internal rate of return of more than 18%.

正如您所看到的，我們預計美國國民航空的交易將滿足上述每一項要求，預計每股收益將增加約19%，有形賬面價值攤薄收益將在不到3 年內收回9.7%，內部回報率也將達到超過18%。

When considering our prior transactions, we realized that the 9.7% tangible book value dilution is higher in comparison, but is primarily driven by the significant rise in interest rates over the last 15 months which under purchase accounting requires us to record a higher-than-usual interest rate mark on the loan and investment portfolio. The earn-back of that dilution, however, is still less than 3 years due to the outsized EPS accretion of 19%. This is a result of the higher interest rate marks flowing back through earnings as essentially risk-free net accretion income.

在考慮我們之前的交易時，我們意識到 9.7% 的有形賬面價值稀釋相比而言更高，但這主要是由過去 15 個月利率大幅上升推動的，根據購買會計，我們需要記錄高於 -貸款和投資組合上的通常利率標記。然而，由於 EPS 增幅高達 19%，稀釋後的盈利仍不到 3 年。這是由於較高的利率通過盈利回流，作為基本上無風險的淨增值收入。

Excluding these interest rate marks, the tangible book value dilution would be less than 5% EPS accretion would be approximately 5%, and the earn-back period would still be under 3 years. In addition to the right of the page, you can see that on a pro forma capital ratio basis, we will remain well capitalized from a regulatory capital ratio perspective at the close of the transaction.

排除這些利率標記，有形賬面價值攤薄將低於 5%，每股收益增值將約為 5%，而盈利回收期仍將低於 3 年。除了頁面右側之外，您還可以看到，在備考資本比率的基礎上，從監管資本比率的角度來看，在交易結束時我們將保持良好的資本狀況。

As noted on Slide 14, we went through a very comprehensive due diligence process as we do in any merger transaction. The process including the formation of a cross-functional due diligence team have reviewed all aspects of American National businesses over a 4-week period.

正如幻燈片 14 所示，我們經歷了非常全面的盡職調查流程，就像我們在任何合併交易中所做的那樣。該流程包括組建跨職能盡職調查團隊，在 4 週內審查了美國國民企業的各個方面。

In addition, we engaged third-party expertise to review credit, interest rate and real estate market valuations as well as tax and legal matters in connection with the transaction.

此外，我們還聘請了第三方專業人士來審查信貸、利率和房地產市場估值以及與交易相關的稅務和法律事務。

In terms of the credit due diligence of American National, you can see we were very comprehensive in terms of the magnitude of the review of its loan portfolios. American National has historically been a very clean bank from a credit perspective and results from our third parties review found that to be the case. Our due diligence team met with their American National counterparts in each of the areas, you see listed here, and came a way with a very strong understanding of the culture and business operations of American National, which will allow us to plan for a smooth integration of American National into the Atlantic Union franchise.

就美國國民銀行的信用盡職調查而言，您可以看到我們對其貸款組合的審查程度非常全面。從信用角度來看，美國國民銀行歷來都是一家非常廉潔的銀行，我們的第三方審查結果也表明情況確實如此。我們的盡職調查團隊與您在此處列出的各個領域的美國國民黨同行進行了會面，並對美國國民黨的文化和業務運營有了非常深入的了解，這將使我們能夠規劃順利的整合美國國家航空進入大西洋聯盟特許經營權。

With that, that concludes my prepared remarks on the merger's expected financial implications and I'll now turn it back over to John for his closing comments.

至此，我準備好的關於合併預期財務影響的評論就結束了，現在我將把它轉回給約翰，讓他發表結束語。

Thank you, Rob. We've given you much to consider this morning. So I have no further comments. At this point, we are ready to take your questions.

謝謝你，羅布。今天早上我們給了你很多考慮。所以我沒有進一步的評論。現在，我們已準備好回答您的問題。

(Operator Instructions) Our first question comes from Catherine Mealor from KBW.

（操作員說明）我們的第一個問題來自 KBW 的 Catherine Mealor。

Congrats on the deal. I wanted to start just with first AUB specific question. Just -- can you help us walk through the cadence of how we'll see the $17 million of cost savings flow in through the back half of this year and then into next, kind of maybe the run rate of expenses that we'll be hitting as we exit '23 and then going to '24?

恭喜達成交易。我想從第一個 AUB 具體問題開始。只是 - 您能否幫助我們了解一下我們將如何看到 1700 萬美元的成本節省在今年下半年流入，然後進入明年，大概是我們將要實現的費用運行率當我們退出“23”然後進入“24”時，會發生什麼情況？

Yes, Catherine, in terms of the -- how that's coming into the expense base or coming out of the expense base, I should say, we saw about $500,000 or call it, $2 million on an annualized basis come out of Q2. As John noted, the majority of the cost savings will kick in post August 1, that's when after a 60-day notice period that we're reducing our teammate count. That will kick in August 1. So the next -- in this third quarter, we should see about $3.5 million of that annualized $17 million come out. And going to the fourth quarter, you'll see the full effect of that, which is about $4.25 million. So it's kind of coming in, but Q3 will start to see a really shift in and in Q4, you see the full annualized base -- annualized or quarterly run rate of the annualized savings.

是的，凱瑟琳，就如何進入費用基礎或從費用基礎中出來而言，我應該說，我們看到大約 50 萬美元，或者說，第二季度按年化計算有 200 萬美元。正如 John 指出的，大部分成本節省將在 8 月 1 日後開始實施，屆時我們將在 60 天的通知期後減少團隊成員人數。這將於 8 月 1 日開始。因此，在接下來的第三季度，我們應該會看到年化 1700 萬美元中的約 350 萬美元流出。到第四季度，您將看到其全部影響，約為 425 萬美元。所以它有點進來了，但第三季度將開始看到真正的轉變，在第四季度，你會看到完整的年化基數——年化儲蓄的年化或季度運行率。

And it's really done at this point. There's essentially nothing material left to do. Everything has been executed.

到這一步就真的完成了。基本上沒有什麼可做的了。一切都已執行完畢。

Okay. Great. And then just as you think about -- actually, I guess my second question just on the deal. Is there any way to help us think about the timing of how the pace at which we'll see the $120 million loan mark on American National flow through earnings?

好的。偉大的。然後，正如你所想的那樣——實際上，我想我的第二個問題就是關於這筆交易的。有什麼方法可以幫助我們思考美國國民銀行 1.2 億美元貸款大關何時會以何種速度流轉收益？

Yes. So we are projecting that, that earnings will come in over 4 years on Sum-of-the-years' digit basis. The contractual if you look at the loan portfolio, it's about 5-year maturity on a contractual basis, but the duration of that portfolio is more like 3 years. So we are using 4 years for that assumption.

是的。因此，我們預計，該收益將在 4 年後以年度總和的數字為基礎出現。如果你看一下貸款組合，合同期限大約為 5 年，但該投資組合的期限更像是 3 年。因此，我們使用 4 年作為該假設。

Catherine, one thing I'll point out that may not be evident or perhaps is a surprise to those who don't know, American National. The duration of this loan portfolio is comparable to our own. Unlike what we often see in the market, American National does not do long-term fixed rate loans. Typically 5 years or less is what they do. And that's part of why the math is working here and the rate marks are manageable. That, of course, plus the fact that they're 15% of the asset size. So this will come back quickly in terms of the rate marks. If they were doing what we sometimes see 10-, 15-, 20-year fixed-rate commercial real estate plans this would be a very different conversation. This probably wouldn't be a conversation that's happening today, but that's not done. One of the many things we admire about them.

凱瑟琳，我要指出的一件事可能並不明顯，或者可能會讓那些不知道的人感到驚訝，美國國民。該貸款組合的期限與我們的相當。與我們在市場上經常看到的不同，美國國民銀行不提供長期固定利率貸款。他們的工作時間通常為 5 年或更短。這就是數學在這裡起作用並且評分是可控的部分原因。當然，再加上它們佔資產規模的 15%。因此，就利率標記而言，這將很快恢復。如果他們正在做我們有時看到的 10 年、15 年、20 年固定利率商業房地產計劃，這將是一個非常不同的對話。這可能不會是今天正在發生的對話，但這還沒有完成。這是我們欽佩他們的眾多事情之一。

Yes. That's helpful. And that's why the earn-back is manageable at 3 years. So that's great. And -- as you think about just big picture, the 2 companies together, how does this -- you don't need to put specific targets, but how does this alter your kind of -- your outlook for ROA, ROE efficiently, I'm assuming it's going to be enhancing all those metrics, but how do you kind of think -- have the 2 companies come together where that may trend as we move through '24?

是的。這很有幫助。這就是為什麼 3 年就能收回投資。那太好了。而且 - 當你考慮大局時，兩家公司在一起，這如何 - 你不需要設定具體目標，但這如何改變你的類型 - 你對 ROA、ROE 的前景有效，我我假設它將增強所有這些指標，但是您認為這兩家公司是否會走到一起，在我們進入24 世紀時可能會出現這種趨勢？

Yes. So as we look at that, Catherine, it's a material improvement to what we've used consensus estimates for this -- for the discussion today. And you'll see that which we kind of outlay on Page 7 of the presentation, that ROA is -- should be going up from a consensus perspective where it will be about 20 basis points or call about a 1.25%. ROTCE is looking at about a 19.5%, 20% return on tangible common equity and we think the efficiency ratio will hover back towards the 50% mark once we get the full cost savings in. So fairly material improvements in the returns and the financial metrics that we always are looking at to be in a top tier financial performer.

是的。因此，凱瑟琳，當我們看到這一點時，這對我們今天討論的共識估計來說是一個重大改進。你會看到我們在演示文稿第 7 頁上的支出，從共識的角度來看，ROA 應該會上升，大約為 20 個基點，或者稱為 1.25% 左右。 ROTCE 的目標是有形普通股回報率約為 19.5%、20%，我們認為一旦我們實現全部成本節省，效率比率將回到 50% 的水平。因此，回報和財務指標有相當大的改善我們一直希望成為頂級財務表現者。

And when do you have conversion slated? Is it too early for that?

您計劃什麼時候進行轉換？是不是太早了？

Well, we're looking at likely in second quarter. It really depends on if we can close the deal early in '24, which we're expecting.

嗯，我們正在考慮第二季度的情況。這實際上取決於我們能否在 24 年初完成交易，正如我們所期望的那樣。

Our next caller is Casey Whitman from Piper Sandler.

我們的下一個來電者是 Piper Sandler 的 Casey Whitman。

Maybe just starting with your earnings this quarter. Can you sort of walk us through the progression of the margin throughout the quarter and sort of how it was faring in June or even at the end of the quarter? Just to sort of give us an idea of where we're headed in the third quarter.

也許只是從本季度的收入開始。您能否向我們介紹一下整個季度的利潤率進展情況以及 6 月份甚至季度末的情況？只是為了讓我們了解第三季度的發展方向。

Yes. So as you seen what we reported was a 5 basis point decline in the margin quarter-to-quarter, the (inaudible). If you look at it from where June, the month of June is coming out, it's still hovering in that 3.45% range. But we are expecting that over the next 2 quarters, we report Q3 and Q4 that we're going to get down to the, call it, the 3.35% range, give or take, a couple of bps due to continued deposit cost increases. The good news there is we also, as John mentioned, have some mitigating factors due to the variable rate loan book that we have. We are anticipating the Fed will move tomorrow another 25 basis points. So that will bode well from that point of view. But you should see probably bottoming out in the fourth quarter, about 3.35%, give or take, a couple of bps.

是的。正如您所看到的，我們報告的利潤率季度環比下降了 5 個基點（聽不清）。如果你從 6 月份的情況來看，6 月份的數據仍然徘徊在 3.45% 的範圍內。但我們預計，在接下來的兩個季度中，我們報告的第三季度和第四季度，由於存款成本持續增加，我們將下降到 3.35% 的範圍，上下浮動幾個基點。好消息是，正如約翰提到的，由於我們擁有可變利率貸款簿，我們也有一些緩解因素。我們預計美聯儲明天將再加息 25 個基點。所以從這個角度來看，這將是一個好兆頭。但你應該會看到第四季度可能觸底，大約 3.35%，上下浮動幾個基點。

Okay. And you might -- may have this, but do you have like an expected range you can give us for the pro forma margin? Just to sort of help us out with all the markets and we're not -- I know there's a lot of moving parts there, but just any sort of range you can give us to go off of will be helpful.

好的。你可能——可能有這個，但是你有一個可以給我們的預估利潤的預期範圍嗎？只是為了幫助我們應對所有市場，但我們不是——我知道那裡有很多變化的部分，但你可以給我們提供的任何範圍都會有所幫助。

I mean in terms of the deal impact. Yes, we think -- sorry, go ahead.

我的意思是就交易影響而言。是的，我們認為——抱歉，繼續吧。

In terms of where the margin -- the pro forma margin, the combined margin might be running just given what we know...

就利潤率而言——預計利潤率，根據我們所知，合併利潤率可能正在運行......

Yes. So including the accretion that we noted is that comes back through interest income. We think we're going to be around 3.60% to 3.65% reported margin once we close the deal.

是的。因此，包括我們注意到的增加是通過利息收入回來的。我們認為，一旦交易完成，我們的報告利潤率將達到 3.60% 至 3.65% 左右。

Okay. Helpful. And then also remind us, you still have more of the expense -- expense stuff coming through in the third quarter just on the cost saves. Is it about $7.5 million left?

好的。有幫助。然後還要提醒我們，您仍然有更多的費用 - 第三季度的費用只是通過節省成本來實現的。還剩750萬美元左右嗎？

Yes. So again, we should have -- we should be close to $3.5 million coming out if you go back to the last year, $3.5 million run rate coming out in the third quarter, and then because it's a partial quarter with FTEs not dropping until August 1. We'll see about $4.5 million expense on a quarterly basis coming out in the fourth quarter. And then that would be the $17 million if you annualize that...

是的。所以，如果你回到去年，我們應該有接近 350 萬美元的支出，第三季度的運行率將達到 350 萬美元，然後因為這是一個部分季度，FTE 直到 8 月份才會下降1. 我們將在第四季度看到大約450 萬美元的季度支出。如果按年計算的話，那就是 1700 萬美元……

Yes, sorry, the onetime costs. The take -- how much had...

是的，抱歉，一次性費用。採取--有多少...

Yes. So the one time cost, we're going to have another $6 million or so in the third quarter, and then there won't be any beyond that. That primarily relates to some lease termination costs as well as some costs associated with renegotiating our core contract or core systems contract, which we used a third-party firm to help us with that.

是的。因此，就一次性成本而言，我們在第三季度將再有 600 萬美元左右的成本，然後就不會再有任何超出的成本了。這主要涉及一些租賃終止成本以及與重新談判我們的核心合同或核心系統合同相關的一些成本，我們使用第三方公司來幫助我們解決這些問題。

Justin, we're ready for our next caller, please.

賈斯汀，我們已經準備好迎接下一個來電者了。

Our next question comes from Stephen Moss from Raymond James.

我們的下一個問題來自雷蒙德·詹姆斯的斯蒂芬·莫斯。

Congratulations, Jeff and John on the transaction here. Judging by the presentation, it sounds like the deal was negotiated here. Just curious, when you put these balance sheets together, are you -- do you think you'll be restructuring the securities portfolio?

恭喜傑夫和約翰在這裡完成交易。從演示來看，這筆交易似乎是在這裡談判的。只是好奇，當你把這些資產負債表放在一起時，你認為你會重組證券投資組合嗎？

Well, we're going to take a look at that, Steve. We haven't assumed anything there. As you know, upon closing, we have mark-to-market the securities portfolio. We are evaluating alternatives to restructure portfolio more in line with how AUB has managed over time. But a lot of that's going to depend on where rates are at that point in time. But it's certainly possible, and we're evaluating options there.

好吧，我們要看看這個，史蒂夫。我們沒有假設任何事情。如您所知，成交後，我們對證券投資組合進行按市價計價。我們正在評估重組投資組合的替代方案，使其更符合 AUB 長期以來的管理方式。但這很大程度上取決於當時的利率水平。但這當然是可能的，我們正在評估那裡的選擇。

Okay. That's helpful. And in terms of the -- in terms of -- just following up on the margin here and just deposit pricing -- just curious what the tone is that you're seeing these days? It seems [Truist] is more aggressive here. And just curious on your thoughts as to what you're seeing in the last month or so?

好的。這很有幫助。就——就——只是跟進這裡的保證金和存款定價——只是好奇你這些天看到的基調是什麼？看來[Truist]在這裡更具侵略性。只是想知道您對過去一個月左右所看到的情況有何想法？

Yes. I think to your point, we've seen more aggressive pricing on deposits from bigger players, including [BofA and Truist], as you mentioned. So we usually look to the big players to follow them from a deposit pricing perspective. So we've increased our deposit levels on both on CDs and money markets during the quarter to basically match the [Truist] of the world. Interestingly enough, I think we're seeing less -- as the quarter has gone on and through today, I'm seeing less and less pressure on deposits, I should say. But we'll see how that plays out, but there was a lot of adjustments coming through earlier in the second quarter. It's kind of stabilized a bit at this point in time.

是的。我認為就您的觀點而言，正如您提到的，我們已經看到更大的參與者（包括[美國銀行和 Truist]）對存款的定價更加激進。因此，我們通常希望大型參與者從存款定價的角度追隨他們。因此，我們在本季度增加了 CD 和貨幣市場的存款水平，以基本上與世界的 [Truist] 相匹配。有趣的是，我認為我們看到的壓力越來越小——隨著本季度的持續，直到今天，我應該說，我看到存款的壓力越來越小。但我們會看看結果如何，但第二季度早些時候進行了很多調整。現在這個時間點已經穩定了一些。

I would agree with Rob, on that point. It's still highly competitive, but we seem to be out of the frenzy for whatever reason. We'll see what happens with the next rate increase. It seems better. I would not quite say we're at an equilibrium on it.

在這一點上我同意羅布的觀點。競爭仍然非常激烈，但無論出於何種原因，我們似乎已經擺脫了這種瘋狂。我們將看看下一次加息會發生什麼。看起來好多了。我不敢說我​​們在這方面處於平衡狀態。

But we will adjust according to the larger players in the market. That's kind of our way we handle that.

但我們會根據市場上較大的參與者進行調整。這就是我們處理這個問題的方式。

Just instructive. As you know, Steven, the fact that half of our loan book is variable rate is what allows us to somewhat offset at least mitigate this rising rate environment, and that's part how we were able to manage the compression issue. That and quite candidly, not positioning ourselves as the highest rate in the market in order to drive deposits. Like every other bank in America, we maintained a very delicate balancing act in terms of managing the value proposition and the rate with the funding requirements. We do not want to offer the highest rates out there simply to try to drive deposit growth. That strategy will not work over time.

只是有啟發性。正如你所知，史蒂文，我們的貸款賬簿中有一半是可變利率，這一事實使我們能夠在一定程度上抵消至少緩解這種不斷上升的利率環境，這也是我們能夠管理壓縮問題的部分原因。坦白地說，我們並不是為了吸引存款而將自己定位為市場上最高的利率。與美國其他所有銀行一樣，我們在管理價值主張和利率與融資需求方面保持著非常微妙的平衡。我們不想僅僅為了推動存款增長而提供最高利率。隨著時間的推移，這一策略將不會奏效。

Right. And so in terms of -- and I guess -- on the other side of the equation here in terms of the balance sheet with loans. You guys had really good loan growth this quarter, north of 4% year-to-date. Your guidance implies only modest loan growth, though the pipeline sounds like it's still pretty strong. Just -- I think John has said a little bit about seasonality here for the current quarter. And I know you've talked about pull-through in the past. Just kind of curious, it feels a little bit maybe conservative on loan growth just given the pipeline.

正確的。因此，我猜，等式的另一邊是貸款資產負債表。你們本季度的貸款增長非常好，今年迄今已超過 4%。您的指導僅意味著貸款增長適度，儘管管道聽起來仍然相當強勁。只是——我認為約翰已經說了一些關於本季度季節性的內容。我知道你過去曾談論過“拉通”。只是有點好奇，考慮到管道，貸款增長可能有點保守。

Well, potentially, it's hard to predict in this environment. I have to admit, Q2 was better than we expected. We expected to see more things slow down in the pipeline. As I clearly stated, the second quarter is traditionally seasonally strong, second only to Q4. Q3 is typically one of the slowest quarters and that's for an obvious reason, people go on vacation and things get deferred.

嗯，在這種環境下可能很難預測。我不得不承認，第二季度比我們預期的要好。我們預計會看到更多事情進展緩慢。正如我明確指出的，第二季度傳統上季節性強勁，僅次於第四季度。第三季度通常是最慢的季度之一，原因很明顯，人們去度假，事情被推遲。

So what's happening in Q3, just to set expectations, clearly, one, we -- actually 3 things. One, it is traditionally one of our slower quarters, business slows down as so many of our clients or on vacation and that's part of what happens in Q4, traditionally, things kind of get pushed into Q4, and then they're motivated to get things done before year-end. But we're looking at a seasonally slow Q3. Two, we'll now have a full quarter of runoff and this indirect auto loan portfolio that we discontinued at the end of May. We still had some things that were closing, so to speak, as June began. But it seems like we've got -- yes, let's call it, $18 million a month, Rob, maybe closer to $20 million.

那麼第三季度發生的事情，只是為了設定預期，顯然，一，我們實際上是三件事。一，傳統上這是我們業務較慢的季度之一，業務放緩，因為我們有很多客戶或在度假，這是第四季度發生的情況的一部分，傳統上，事情會被推到第四季度，然後他們有動力去獲得年底前完成的事情。但我們看到的是第三季度的季節性放緩。第二，我們現在將擁有一個完整季度的徑流以及我們於五月底停止的間接汽車貸款組合。可以這麼說，從六月開始，我們還有一些事情要結束。但看起來我們已經——是的，我們可以這樣稱呼它，每月 1800 萬美元，羅布，也許接近 2000 萬美元。

Yes. I would say $200 million annually.

是的。我想說每年 2 億美元。

So $200 million a year -- 1/4 of that is going to come down. So that will offset growth in Q3. And that's a good move because it's lower yielding, it's not strategic, and we can recycle that capital and that liquidity. And third thing is we do have known payoffs, clients who've informed us. We've got a couple of things going on, mostly in the C&I space, this is interesting. We have a couple of larger clients we deal with one has a pretty major asset sale. Another company is being sold. And so we have advanced knowledge of some fairly material paydowns, and it's more than a couple so these are all things that we think will somewhat offset.

所以每年 2 億美元——其中 1/4 將下降。因此，這將抵消第三季度的增長。這是一個很好的舉措，因為它的收益率較低，不具有戰略意義，而且我們可以回收這些資本和流動性。第三件事是我們確實有已知的回報，客戶已經通知了我們。我們正在進行一些事情，主要是在 C&I 領域，這很有趣。我們有幾個較大的客戶，其中一個客戶進行了相當大的資產出售。另一家公司正在被出售。因此，我們對一些相當實質性的付款有深入的了解，而且不止幾個，所以我們認為這些都是會在一定程度上抵消的。

But we are, in fact, sitting on a good loan pipeline better than I would have expected right now. We'll see how it plays out, Steve. But I do not see us having a double-digit loan growth year. Is it possible we could do better than high single digits, which is 4% to 6%? That is possible, it could tip a little higher. We're just a little leery of forecasting that, frankly, because it's hard to do. So moderate growth mode, whether it's 6% or 7% or -- But I don't think we're talking about teams. I actually don't want to see that right now.

但事實上，我們的貸款渠道良好，比我現在預期的要好。我們會看看結果如何，史蒂夫。但我認為我們的貸款增長不會達到兩位數。我們是否有可能做得比高個位數（4% 到 6%）更好？這是有可能的，它可能會稍微高一點。坦率地說，我們對此預測有點懷疑，因為這很難做到。所以適度的增長模式，無論是 6% 還是 7% 或者——但我不認為我們在談論團隊。其實我現在不想看到這個。

Got it. And then on credit here, I saw there was one past due non-owner occupied commercial real estate loan, (inaudible). Just kind of curious on any color just set any expectations around that credit.

知道了。然後在信貸方面，我看到有一筆逾期非業主佔用的商業房地產貸款（聽不清）。只是對任何顏色有點好奇，就圍繞這個信用設定任何期望。

Past dues looks good. Past dues as low as they've been in a long time.

過去的會費看起來不錯。逾期欠款已達到很長一段時間以來的最低水平。

(inaudible) talked about the memory care that was restructured as a reengagement. Is that what you're referring to?

（聽不清）談到了被重組為重新參與的記憶護理。你指的是這個嗎？

Could be we had held for sale last quarter, and we moved it back to held for investment.

可能是我們上個季度持有待售，然後我們將其轉回持有投資。

Yes. Past dues are down. I'm looking by line item, that's a good story on past dues. You could be looking at the increase in nonperformers, and that was that credit note was not in a nonperforming loan at the end of the -- so we moved it back to held for investment, it looks like a new nonperformer, but it's not right. Is that what it was? Yes, that's -- credit is very clean right now.

是的。過去的會費減少了。我正在按行項目查找，這是一個關於過去會費的好故事。你可能會看到不良貸款的增加，那就是貸方票據在年底時不屬於不良貸款，所以我們將其移回持有投資，它看起來像一個新的不良貸款，但這是不對的。原來是這樣嗎？是的，信用現在非常乾淨。

Right. Okay. That's helpful. And then in terms of just maybe going back to the deal here with the North Carolina franchise that you acquired for American National kind of curious if you could give us an outline for how you're thinking about the North Carolina expansion in the future here a little further. Will we primarily be focused in the Greensboro or Raleigh area, obviously, you have an LPO down in Charlotte, just kind of...

正確的。好的。這很有幫助。然後，也許回到你為美國國家隊收購的北卡羅來納州特許經營權的交易，我有點好奇你是否能給我們概述一下你如何考慮未來北卡羅來納州的擴張。稍遠一點。我們將主要集中在格林斯伯勒或羅利地區嗎？顯然，夏洛特有一個 LPO，有點......

Well, I think this was -- broadly speaking, I would say this is going to be a to-be determined and the leader of the North Carolina market for American National Bank, who will lead it for us. She and we will work together, David Ring, who leads what we refer to as wholesale banking, which will be all commercial banks will work out the plan exactly -- but here's my perspective. My perspective is they have a good footing in the Piedmont Triad. And for those who don't know it, that means Winston-Salem and Greensboro, and it's a little broader Burlington, is an important market for them. So they're sitting there on the I-40 corridor -- they do have a Raleigh office, which we are thrilled about.

嗯，我認為，從廣義上講，我想說這將是美國國家銀行北卡羅來納州市場的一個待確定的領導者，他將為我們領導這個市場。她和我們將一起工作，大衛·林（David Ring），他領導著我們所說的批發銀行業務，所有商業銀行都將準確地制定計劃——但這是我的觀點。我的觀點是他們在皮埃蒙特三合會中擁有良好的基礎。對於那些不知道的人來說，這意味著溫斯頓塞勒姆和格林斯博羅，以及範圍更廣的伯靈頓，對他們來說是一個重要的市場。他們就坐落在 40 號州際公路走廊上——他們確實在羅利設有辦事處，對此我們感到非常興奮。

We have a Charlotte LPO quite the same thing, that's a commercial real estate play. We have 4 branches in Eastern North Carolina -- and so in general terms, we see this as an infill. And it would be great. I think it will also give us opportunity in Charlotte because when you have an LPO and no other meaningful presence in event bankers, with some of the bankers on the ground, you execute what we've done, and we've done it well in Charlotte, which is sort of a specialty play, and this is going to be a little broader. So think of this as an infill strategy over time. And I think this is going to create opportunity for us.

我們有夏洛特 LPO 完全相同的東西，那就是商業房地產。我們在北卡羅來納州東部有 4 家分支機構，因此總的來說，我們認為這是一個補充。那就太好了。我認為這也將為我們在夏洛特提供機會，因為當你擁有LPO 並且在事件銀行家中沒有其他有意義的存在時，有一些銀行家在現場，你可以執行我們所做的事情，並且我們在《夏洛特》是一部專業劇，範圍會更廣一些。因此，隨著時間的推移，可以將其視為一種填充策略。我認為這將為我們創造機會。

Bear in mind, for those who don't know this area, Greensboro, North Carolina is closer to Danville, Virginia than is Roanoke. Greensboro is only an hour away. So if you're in Martinsville, Danville, et cetera, kind of your closest metro area is, in fact, -- Piedmont Triad it's contiguous. It's right across the line. So Dave, anything they bring us here, anything you wish to say about North Carolina expansion plans?

請記住，對於那些不了解該地區的人來說，北卡羅來納州格林斯博羅比羅阿諾克距離弗吉尼亞州丹維爾更近。格林斯伯勒距離酒店僅一小時路程。因此，如果您在馬丁斯維爾、丹維爾等地，事實上，距離您最近的都會區是——皮埃蒙特三角區，它是連續的。就在這條線的對面。戴夫，他們給我們帶來了什麼，你對北卡羅來納州的擴張計劃有什麼想說的嗎？

I think we'll work together with the management team in North Carolina to develop the strategy. We'll take our time, and we'll plot it out so we can be successful.

我認為我們將與北卡羅來納州的管理團隊合作制定該戰略。我們會慢慢來，精心策劃，這樣我們才能成功。

It's right. I think they've done a good job. We bring additional capabilities to the table. We looked very much like America National not that long ago. We've worked very, very hard over the last 6.5, 7 years to transform this company. We have very good commercial and industrial banking capabilities, treasury management services, capital market services, specialty lending capabilities such as asset-based lending, equipment finance, government contractor finance, things that you wouldn't typically see a bank of our size doing that are actually playing vanilla in our minds.

這是正確的。我認為他們做得很好。我們帶來了額外的功能。我們看起來很像不久前的美國國民黨。在過去的 6.5、7 年裡，我們非常非常努力地改造這家公司。我們擁有非常好的商業和工業銀行能力、資金管理服務、資本市場服務、專業貸款能力，例如資產貸款、設備融資、政府承包商融資，這些是我們規模的銀行通常不會做的事情實際上在我們的腦海中扮演著香草的角色。

So we bring all this to the table. This will be a big acceleration play, we believe. So we're excited having spent time with the leadership of these markets they are the ones who will really drive this, they will be at the table and we work with them. So that's more to follow on this with passage of time. I don't want to get the cart before the worst.

所以我們把所有這些都擺到桌面上。我們相信，這將是一個巨大的加速遊戲。因此，我們很高興與這些市場的領導者共度時光，他們是真正推動這一發展的人，他們將坐在談判桌上，我們與他們合作。隨著時間的推移，還有更多的事情需要跟進。我不想在最壞的情況發生之前拿到車。

Thanks, Steve. And Justin, we're running a little bit long. So we have time for one more caller, please.

謝謝，史蒂夫。賈斯汀，我們跑得有點久了。所以我們還有時間再接聽一位來電者。

Our next question comes from David Bishop from Hovde Group.

我們的下一個問題來自 Hovde Group 的 David Bishop。

I'll keep it quick. John, maybe on a long-term basis, do you think this accelerates or improves the long-term loan growth prospects for Atlantic Union as you expand into these markets and obviously, you have experience considerance North Carolina banker.

我會保持快點。約翰，也許從長遠來看，當您擴展到這些市場時，您認為這會加速或改善大西洋聯盟的長期貸款增長前景嗎？顯然，您有考慮北卡羅來納州銀行家的經驗。

David, I'm so sorry, may I ask you to repeat that? We're having difficulty hearing you.

大衛，我很抱歉，我可以請你重複一遍嗎？我們很難聽到你的聲音。

I'm sorry. Yes. Just curious if you think this accelerates the prospects for long term. Loan growth as a combined company and especially...

對不起。是的。只是好奇您是否認為這會加速長期前景。合併後的公司的貸款增長，尤其是......

Absolutely, it does. So what's happening is that it absolutely accelerates prospects, not just for loan growth over time, but I just think growth for the company because now we'll have a physical presence in some very attractive growth markets in North Carolina. As I called out -- if you look at the south side of Virginia, in particular, this is one of the better industrial markets of the state. We have clients there, even though we don't have a physical presence.

絕對是的。因此，正在發生的事情絕對會加速前景，不僅僅是隨著時間的推移貸款增長，而且我只是認為公司的增長，因為現在我們將在北卡羅來納州一些非常有吸引力的增長市場中擁有實體業務。正如我所指出的，如果你看看弗吉尼亞州的南部，就會發現這是該州最好的工業市場之一。儘管我們沒有實際存在，但我們在那裡有客戶。

So I think when we couple the historic presence and relationships and knowledge of these markets that the American National team has with additional capabilities and a bigger balance sheet to be clear. I think that -- and our treasury management services, this is going to be a formal combination.

因此，我認為，當我們將美國國家隊在這些市場的歷史存在、關係和知識與額外的能力和更大的資產負債表結合起來時，就很清楚了。我認為——以及我們的財務管理服務，這將是一個正式的組合。

So in a summary, presence for us in these very attractive North Carolina markets, Piedmont Triad, in particular, the Raleigh office coupled with Charlotte, then the additional capabilities that we bring to the table that allows the American National Bank team to do new things that they're not currently doing. This is going to be a really good combination.

總而言之，我們在北卡羅來納州這些非常有吸引力的市場、皮埃蒙特三合會的存在，特別是羅利辦事處和夏洛特辦事處，然後我們帶來了額外的能力，使美國國家銀行團隊能夠做新的事情他們目前沒有這樣做。這將是一個非常好的組合。

And so we're excited. We think this is great. And of course, the New River valley is -- we are there. And I think that we're a bit undersized that when you couple American National with us and you combine our strength in the New River Valley, just to the west, where we're essentially tied for #1 the way I think about it, this is a formidable Western Virginia franchise, and we are excited about it.

所以我們很興奮。我們認為這很棒。當然，新河谷——我們就在那裡。我認為我們的規模有點小，當你將美國國民隊與我們結合起來，並將我們在新河谷的力量結合起來時，就在西部，在我看來，我們基本上並列第一，這是一個強大的西弗吉尼亞州特許經營權，我們對此感到興奮。

Got it. And then, John, maybe -- I'm just curious, obviously, strong growth in pure C&I this quarter. Just curious any -- any color in terms of what drove the strong quarter just in sort of the pure C&I category this quarter?

知道了。然後，約翰，也許——我只是好奇，顯然，本季度純商業和工業的強勁增長。只是好奇 - 是什麼推動了本季度純工商業類別的強勁季度增長？

Yes. In terms of where growth came from in terms of C&I during the quarter? Dave, do you have any perspective on that. So pretty good strength across the board.

是的。本季度 C&I 的增長來自何處？戴夫，你對此有什麼看法嗎？所以整體實力相當不錯。

Every market grew, except for the Western Virginia market, which we're, I think, now adding firepower to...

每個市場都在增長，除了西弗吉尼亞市場，我認為我們現在正在為……增加火力。

Isn't that interesting?

這不是很有趣嗎？

So all the specialty groups grew quarter-over-quarter, all the markets grew quarter-over-quarter, except for that one.

因此，除了那個市場之外，所有專業類別都實現了季度環比增長，所有市場都實現了環比增長。

So pretty well distributed. And again, we just -- we need more resources in Southwest Virginia, and now we have them. This is a hand in glove fit. I can't emphasize that enough. This is -- if you were to go back and listen to our comments through the years, I've been describing this for years, it should be plainly evident if you understood what we were talking about, this is a good fit for us.

分佈得很好。再說一次，我們只是——我們在弗吉尼亞州西南部需要更多的資源，現在我們已經有了。這是戴手套的手型。我怎麼強調都不為過。這是——如果你回去聽聽我們多年來的評論，我多年來一直在描述這一點，如果你理解我們在說什麼，那應該是顯而易見的，這對我們來說很適合。

Got it. Then maybe just a housekeeping item for Rob, the 40% cost saves off American National, that -- should we assume a second quarter annualized or 2022? Just curious what's the best base to use in terms of forecasting those expense saves.

知道了。那麼也許只是 Rob 的家務用品，比美國國民節省 40% 的成本，那麼——我們應該假設第二季度年化還是 2022 年？只是好奇在預測這些費用節省方面使用的最佳基礎是什麼。

Yes. We're talking about $27 million of cost saves which we're modeling 75% in '24, depending on the close date and then 100% thereafter.

是的。我們談論的是 2700 萬美元的成本節省，我們在 24 年建模為 75%，具體取決於結束日期，然後為 100%。

Thanks, David, and thanks, Justin, and thanks, everyone, for joining us today. John, do you have anything...

謝謝大衛，謝謝賈斯汀，謝謝大家今天加入我們。約翰，你有什麼...

Yes. I realize this has been a long call, but obviously, we had a lot to go over. I think that Jeff Haley's commentary, where he described the strategic rationale for the combination from his perspective is a master class of how a publicly held bank CEO and Board should think about their responsibilities. We absolutely agree with them out the Virginia Bankers Association, banker school take this transcript and teach that as a case study. So Jeff, to you and to the team at American National Bank, we couldn't be more excited. We look forward to consummating this and this is going to be great. So thank you all very much for your time today.

是的。我意識到這是一個漫長的通話，但顯然我們有很多事情需要討論。我認為傑夫·黑利（Jeff Haley）的評論從他的角度描述了合併的戰略原理，這是上市銀行首席執行官和董事會應該如何思考他們的責任的大師課。我們絕對同意弗吉尼亞銀行家協會的觀點，銀行家學校將這份成績單作為案例研究進行教學。傑夫，對於您和美國國家銀行的團隊，我們感到非常興奮。我們期待著完成這一點，這將是偉大的。非常感謝大家今天抽出寶貴的時間。

Thank you, and have a good day.

謝謝你，有一個美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。