Good day. Thank you for standing by. Welcome to the Atlantic Union Bankshares Q2 2023 earnings conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host for today's call, Bill Cimino. Please go ahead. Thank you, Justin. 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. 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 on our earnings release for the Q2 of 2023. 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. Please refer to our earnings release, the press release announcing the proposed merger, and the two 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. N ow I'll turn the call over to John. 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 two banks spans decades. 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. It was a solid quarter for AUB, making this an easier and hopefully shorter conversation. Let's begin. Last quarter, we spoke of the failures of nontraditional 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. Broadly speaking, we saw our deposit base hold steady, better than expected loan growth and admittedly a seasonally strong Q2, 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. 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. The remixing of non-interest-bearing deposits to interest-bearing deposits did continue over the quarter, though at a slower pace. Quarter-end non-interest-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. 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. 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 Q2. Helping us with NIM management is that approximately half our loan balances are variable rate, and that we liquidated some securities in the Q1 to reduce higher-cost wholesale borrowings. Let's dig into the macroeconomic conditions and then our quarterly results. Thankfully, inflation appears to be on an improving trend, though 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. The macroeconomic environment remains sound in our footprint. We do not expect this to change in the near term. Our markets appear to be healthy. Our lending pipelines, while down modestly from a year ago, remain 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. We are focused on generating positive operating leverage, that is, growing our revenue faster than our expenses. Our results were noisy during the Q2 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 run rate by an annualized $17 million. We expect that the lower expense benefit will begin to be realized in August. Setting aside these impacts, our adjusted operating non-interest expense run rate was down from the Q1, reflecting seasonal trends. At the start of the year, we guided to mid-single digit% adjusted operating noninterest expense growth for 2023. 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 his section. Here are a few financial highlights for the Q2, which Rob will detail later. 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, preprovision adjusted operating earnings increased 8% year-over-year. We posted annualized loan growth of 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 two years. That's part by design on our part and part by developers choosing to delay or in some cases, pause projects. Our pipelines are holding up pretty well. They're 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 longer to pull through, especially if rates continue to rise. Further, the wind down of our indirect auto lending took effect beginning in June, and we currently project 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. Additionally, we're expecting some larger payoffs in what 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. 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 recorded annualized net charge-offs of 4 basis points for the Q2, down from 13 basis points in the Q1. As a reminder, the majority of Q1 charge-offs is attributed to a memory care facility loan originated by our predecessor, Xenith 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. 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. In sum, we thought this a solid quarter for Atlantic Union Bank. The banking system showed its resiliency, 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, we do see opportunity. 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, we are resilient. I'll now turn the call over to Rob to cover the financial results for the quarter. Rob? 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 Q2 financial results on a non-GAAP adjusted operating basis, which excludes the $3.9 million in pre-tax costs recorded in the Q2 for the strategic cost saving initiatives, as well as pre-tax loss on the sale of securities of $13.4 million and the pre-tax $5 million legal reserve, each of which was recorded in the Q1. In the Q2, 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 Q2, which was an increase of $8.2 million or 17.3% from the Q1, and up $4.1 million or 8% from the Q2 of 2022. The adjusted operating return on tangible common equity was 17% in the Q2, which was up from 15.2% in the prior quarter. The adjusted operating return on assets was 1.16% in the Q2, which was up 60 basis points from the Q1. On an adjusted operating basis, the efficiency ratio came in at 55% in the Q2, down slightly from 56% in the prior quarter. Turning to credit loss reserves, as of the end of the Q2, the total allowance for credit losses was $136 million. Which was an increase of approximately $4.5 million from the Q1, primarily due to loan growth in the Q2 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. The provision for credit losses of $6.1 million in the Q2 was down from the prior quarter's $11.9 million provision for credit losses, primarily driven by lower charge-offs. Net charge-offs decreased to $1.6 million or 4 basis points annualized in the Q2, from $4.6 million or 13 basis points annualized in the Q1. The year-to-date net charge-off ratio was 8 basis points on an annualized basis. Now turning to the pretax pre-provision components of the income statement for the Q2. Tax-equivalent net interest income was $155.8 million, which was down approximately one and a half million dollars or 1% from the Q1, 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. Q2 '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 Q2 's earning 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 Q2 's net interest margin. The positive impact of changes in the earning asset mix between quarters added 5 basis points to the Q2 's net interest margin. The loan portfolio yield increased to 5.62% in the Q2 from 5.35% in the Q1, 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 Q2 's cost of funds to 1.74% was primarily due to the 33 basis points increase in the cost of deposits to 1.61%, which had a 29 basis point negative impact on the Q2 's net interest margin. The deposit cost increase was driven by changes in the deposit mix as depositors migrated to higher-costing interest-bearing deposit accounts during the quarter, increased levels of higher cost brokered deposits, as well as by increases in interest-bearing deposit rates driven by rising market interest rates. Non-interest income increased $14.6 million to $24.2 million for the Q2, primarily due to the $13.4 million pre-tax loss on the sale of securities recorded in the prior quarter. Adjusted operating non-interest income, which excludes gain and loss on sales of securities, increased $1.2 million in the Q2, 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 of several non-interest income categories, including certain service charges, debit interchange fees, and fiduciary and asset management fee income. These non-interest 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. Non-interest expense decreased $2.6 million to $105.7 million for the Q2, from $108.3 million in the prior quarter. Adjusted operating non-interest expense, which excludes amortization expense related to intangible assets in the Q1 and Q2 s, expenses incurred associated with the strategic cost savings initiatives in the Q2, and a legal reserve associated with an ongoing regulatory matter recorded in the prior quarter. The non-interest adjusted expenses declined by $1.5 million to $99.5 million in the Q2. The quarterly decline in adjusted operating non-interest 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. 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. At period end, period-end loans held for investment and the 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. 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 balances, customer time deposits, and brokered deposits. At the end of the Q2, Atlantic Union Bankshares and Atlantic Union Bank's regulatory capital ratios were well above well-capitalized levels. In addition, on a pro forma basis, we remain well-capitalized as of the end of the Q2 if you include the negative impact of AOCI and held-to-maturity securities' unrealized losses in the calculation of the regulatory capital ratios. For the most part, we are sticking with the full-year 2023 financial outlook referenced in our Q1 's earnings call. We expect to generate loan growth in the mid-single digits 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. 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 and our fully taxed equivalent net interest margin projection, we continue to expect fully taxable equivalent net interest income to increase by mid-single digits in 2023 from 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 expected relatively flat adjusted operating non-interest expense growth in 2023 from full-year 2022 levels as a result of the strategic cost-saving measures we took earlier in the quarter. In summary, Atlantic Union delivered strong financial results in the Q2, 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. 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. Thank you, Rob. 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 two and three 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 may, 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. 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. This merger is between two institutions with a decades-long relationship and a deep friendship between our banks and our respective 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. We have worked hard in our company to build a leading regional presence in Virginia. 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. The critical mass this achieves in North Carolina creates an opportunity we can build on there for years to come. 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. 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. 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 Charlotte loan production office, we will be well positioned to drive an expansion strategy in North Carolina over time. 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, 1, a 3-year tangible book value earned back using the crossover method; 2, immediately accretive to earnings per share, excluding one-time charges; and 3, an 18% or better internal rate of return. We believe we are checking all of these boxes. We also believe that execution risk will be mitigated by the unquestioned quality of American National's franchise and 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? John, I've been called, or American National's been called a lot of things. I've never been called venerable. You are venerable. I think that was a compliment. It is a compliment. Give me a sec. Look, this is an exciting day, I think for both companies. You know, 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 were about a $200 million community bank. My colleague, my predecessor, Charlie Majors, and I, taken this company from a little Danville bank to a $3 billion, 2 states, 11 markets. One of the things I'm most proud of is that, you know, over that period of time, we've gone through all types of economies, and there's not a dent, there's not a scrape, there's not a scratch on this company. I think we've done a phenomenal job. You know, 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 three-legged stool, the shareholders, the customers, and the employees. I, along with our board, have 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. My concern was that we needed to do something. There were really no other better options than partnering with what I believe, taking the two of the best banks in Virginia, over 200 years of experience, both high-performing companies, putting them together to solidify Virginia. Then to also, set the springboard for continued expansion in North Carolina. This is, in some ways, a sad day, but it's because of 114 years of a company being based in Danville, Virginia. That is more personal from the three-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 friends of ours that we've known, as John said, you know, goes back, you know, four decades. You know, 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. John, I hope that helped and gave everybody a little bit of insight to where our head was. Yeah, that most certainly did give insights. Need I say any more about why we respect this company and this leadership team? That's as clear a picture as can 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. All right, I have a few more comments, then Rob will get into the financial aspects of it, and then Jeff, Rob, and I, and others will be available for questions. 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 learned 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 two 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 there will be invaluable. Aside from his consulting role, we are pleased and grateful that he'll serve as our representative to two Danville, Virginia charitable trusts, 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. Stepping back and looking at the map on this slide, it should be evident while we were 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 eight shows combined depository market share, starting with Virginia. Data is on the left. This further solidifies our clear positioning as the number four player in Virginia, eclipsed only by the three 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. 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 four. 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. On slide 10, we detail the various markets. We'll let you review them on your own. 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's no better partner for us than American National, a high-quality Virginia stalwart of a community bank that we know and trust. 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, are 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. 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 in the American National franchise. Last, for those who didn't know this, I actually still consider myself a North Carolina banker, having begun my career at Wachovia Bank and Trust in Winston-Salem in 1987. I learned this business in the Piedmont Triad. I know the potential of that region, and I am delighted to see us expand there. I'll now turn the call over to Rob for more details. Thanks, John. Let me switch gears to outline the expected financial impact of the merger from the strategic aspects of the 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. 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 for 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 $0.3923 per American 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. 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, two members of American National's board of directors, Nancy Agee and Joel Shepherd, will join Atlantic Union's board. As John noted, Jeff Haley will serve as a consultant to our leadership team. In addition, we will operate the former American National markets under a regional community banking model, which will be led by two key American National Bank executives who know these markets very well. The transaction is expected to close in the Q1 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 Q2 of 2024 to complete systems conversions. On page 12, we lay out the key transaction assumptions. Balance sheet marks include a gross loan credit mark of $5.4 million, or 1.13% of loan balances, and a day two 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, a $8.4 million write-up of American National's owned branch and office real estate based on broker opinions of market value, and a total liability write-down of $13.7 million related to time deposits and trusts based on the current level of interest rates. Intangible purchase accounting adjustments include a core deposit intangible asset of $87.2 million, which is approximately 3.75% of non-time deposits. In addition, we're recording a wealth intangible asset of seven and a half million dollars. 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 30th, is realized through income over a six-year period. 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 summarize those here as a reminder. Immediate earnings accretion to EPS, an earn back of tangible book value dilution, if any, of three years or less, an internal rate of return of at least 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 the tangible book value dilution of 9.7% in less than three years, an internal rate of return of more than 18%. When considering our prior transactions, we realized that the 9.7% tangible book value dilution is higher in comparison, is primarily driven by the significant rise in interest rates over the last 15 months, which, under purchase accounting, require 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. Excluding these interest rate marks, the tangible book value of 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. 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, that reviewed all aspects of American National businesses over a 4-week period. In addition, we engaged 30 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. 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 party's 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 away 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. With 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. 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. Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. One moment for our first question. Our first question comes from Catherine Mealor from KBW. Your line is now open. Good morning, Catherine. Good morning, and congrats on the deal. Thank you. Wanted to start just with first, AUB specific question. 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 the, maybe the run rate of expenses that we'll be hitting as we exit 2023 and then go into 2024? Yeah, Kathryn, in terms of 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 first, as that's when, after a 60-day notice period, we're reducing our teammate count. That'll kick in August first. In this Q3, we should see about, you know, about three and a half million dollars of that annualized $17 million come out. Going to the Q4, you'll see the full effect of that, which is about $4.25 million. It's kind of coming in, but, Q3, you'll start to see it really shift in, and Q4, you'll see the full annualized base, annualized, or quarterly run rate of the annualized savings. It's really done at this point. Yeah. There's essentially nothing material left to do. Everything has been executed. Okay, great. Just as you think about. Actually, I'm gonna get to my second question just on the deal. Is there anything 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? Yeah. We are projecting that that earnings will come in over four years on a sum-of-the-years-digits basis. The, contractual, if you look at their, the loan portfolio, it's about five-year maturity, on a, on a contractual basis. The duration of that portfolio is more like three years. We are using four years for that assumption. 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. 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. 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 loans, this would be a very different conversation. This probably wouldn't be a conversation that's happening today. That's not them. One of the many things we admire about them. Yeah, it's helpful. That's why the earn back is manageable at three years. That's great. Sure is. As you think about just big picture, the two companies together, how does this, and I know you don't need to put specific targets, but how does this alter your kind of, or your outlook for ROA, ROE efficiency? I'm assuming it's gonna be enhancing all those metrics, but, how do you kind of think, how the two companies come together, where that may trend as we move through 2024? Yeah. As we look at that, Catherine, it's material improvement to what we've used consensus estimates for this, for the discussion today. 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 for AUB, about 20 basis points, so probably about 1.25%. ROTCE is looking at about a 19.5%-20% return on common tangible common equity. We think the efficiency ratio will hover back towards the 50% mark once we get the full cost savings in. Fairly material improvements in the returns and in the financial metrics that we always are looking at to being a top-tier financial performer. When do you have conversion slated, or is it too early for that? Well, we're looking at likely in Q2. Really depends on, you know, if we can close the deal early in 2024, which we're expecting. Okay, great. All right, I'll step out. Congrats on the deal. Thank you. Thank you, Catherine and Justin, we're ready for our next caller, please. Thank you. One moment for our next caller. Our next caller is Casey Whitman from Piper Sandler. Your line is now open. Hi, Casey. Hey, good morning. Morning. Morning. 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 Q3. Yeah. As you've seen, what we reported was a 5 basis point decline in the margin quarter-to-quarter, the 3.45%. If you look at it from where June, the month of June is coming out, it's still hovering in that 3.45%range. We are expecting that over the next two quarters, we'll report Q3 and Q4, that we're going to get down to the, you know, call it the 3.35% range, give or take a couple of dips 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. That will bode well from that point of view. You should see, probably bottoming out in the Q4, about 3.35%, give or take a couple of dips. Okay. You might, you may or may not 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 marks and what 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. You mean in terms of the deal impact? Yeah, we think. Just in ter- Sorry, go ahead. In terms of where the margin, the pro forma margin, the combined margin might be running, just given what we know today. Including the accretion that we noted, as that comes back through interest income, we think we're gonna be around 3.60%-3.65% reported margin once we close the deal. Okay. Okay, helpful. Then also remind us, you still have more of the expense stuff coming through in Q3, just from the cost saves? Yeah. Is it about $7.5 million left? Yeah. Again, 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 Q3. Because it's a partial quarter with FTEs not dropping until August 1, we'll see about four and a quarter expense on a quarterly basis coming out in the Q4. That would be the $17 million, if you annualize that. Yes, sorry, the one-time cost. Oh, the one-time cost? How much you guys have. Oh, yeah. Sorry. Yeah, the one-time cost, we're gonna have another $6 million or so in the Q3, then there won't be any beyond that. Okay. That primarily relates to some lease termination costs, as well as some costs associated with renegotiating our core contract, our core systems contract. We use the third party firm to help us with that. Okay. All right, great. Thank you. Thank you, Casey. Justin, we're ready for our next caller, please. Thank you. One moment. One moment for our next question. Our next question comes from Stephen Moss from Raymond James. Your line is now open. Good morning. Good morning. Congratulations, Jeff and John, on the transaction here. Thank you. You know, judging by the presentation, it sounds like, you know, the deal was negotiated here. Just curious, you know, when you put these balance sheets together, do you think you'll be restructuring the securities portfolio? We're gonna take a look at that, Stephen. 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. A lot of that's gonna depend on where rates are at that point in time. It's certainly possible, and we're evaluating options there. Okay. That's helpful. In terms of the, in terms of just, you know, following up on the margin here and just deposit pricing, I'm just curious, you know, what the tone is that you're seeing these days. You know, seems like Truist is more aggressive here, and just, you know, curious on your thoughts as to what you're seeing, you know, in the last month or so. Yeah. I think, to your point, we've seen more aggressive pricing on deposits from the, from bigger players, including Bank of America and Truist, as you, as you mentioned. We usually look to the big players to kind of follow them from a deposit pricing perspective. 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's gone on and through today, we're seeing less and less pressure on deposits, I should say. We'll see how that plays out. There was a lot of fresh adjustments coming through earlier in the Q2. It's kind of stabilized a bit at this point in time. I would agree with Rob on that point. It's still highly competitive, but we seem to be out of the frenzy- Yeah for whatever reason. We'll see what happens with the next rate increase, it's, it seems better. I would not quite say we're at an equilibrium on it. We will adjust according to the larger players in the market. That's kind of our, the way we handle that. Okay. It's instructive that, as you know, Stephen, the fact that half our loan book is variable rate is what allows us to, you know, somewhat offset or at least mitigate this rising rate environment. That's part of how we were able to manage the compression issue. That, and quite candidly, not positioning ourselves as, you know, the highest rate in the market in order to drive deposits. Like every other bank in America, we maintain a very delicate balancing act in terms of managing the value proposition and the rate with the funding requirements. We are not one to offer the highest rates out there simply to try to drive deposit growth. That strategy will not work over time. Right. So in terms of I guess, you know, 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. You know, 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. I know we've talked about poultry in the past. Just kind of curious, you know, it feels a little bit maybe conservative on loan growth, just given the pipeline dynamic. 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 Q2 is traditionally seasonally strong, second only to Q4. Q3 is typically one of the slowest quarters. That's for an obvious reason. People go on vacation and things get deferred. What's happening in Q3, just to set expectations clearly, one, actually three things. one, it is traditionally one of our slower quarters. Business slows down. So many of our clients go on vacation. That's part of what happens in Q4. Traditionally, things kind of get pushed into Q4. Then they're motivated to get things done before year-end. We're looking at a seasonally slow Q3. Two, we'll now have a full quarter of runoff in 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, yeah, what's it called, $18 million a month, Rob? Maybe closer to 20. Yeah, I would say it's, you know, $200 million a year. Yeah, it's called $200 million a year. Give or take. you know, a quarter of that is gonna come down, so that will offset growth in Q3, and that's good. That's a good move because it's lower yielding, it's not strategic, and we can recycle that capital and that liquidity. 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, with a couple of, you know, larger clients we deal with, one has a pretty major asset sale. Another company is being sold. we have advanced knowledge of some fairly material pay downs, and it's, you know, it's more than a couple. These are all things that we think will somewhat offset. 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, 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 4-6? 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. Okay. Moderate growth mode, whether it's 6% or 7% or even 8%. I don't think we're talking about teens. I actually don't want to see that right now. Got it, yeah. Then in, on credit here, I saw there was 1 past due non-owner occupied commercial real estate loan that's 90 days plus. Just kind of curious on any color and just, you know, set any expectations around that credit? Past dues look good. Past dues are as well as they've been in a long time. Curious about the $6 million? Talk about the, memory care. Memory care. That was restructured as a reengagement. Is that what you're referring to? Could be. We had it in held for sale, had held for sale last quarter, and we moved it back to held for investment. 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 non-performers, and that was that credit, you know. That credit was not in a non-performing loan category. It was held for sale. At the end of Yeah. We moved it back to held for investment. It looks like a new non-performer, but it's not. Right. Is that what it was? Yeah. Okay. Yeah, credit is very clean right now. Right. Okay. That's helpful. In terms of, just maybe going back to the deal here, you know, with the North Carolina franchise that you acquire for American National, kind of curious, you know, if you could maybe give us an outline for how you're thinking about the North Carolina expansion in the future here a little further. You know, we'll primarily be focused in the, you know, Greensboro, Raleigh area, or, you know, obviously, you have an LPO down in Charlotte? Well, I think this is 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. Here's my perspective. My perspective is they have a good footing in the Piedmont Triad, 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. They're sitting there on the I-40 corridor. They do have a Raleigh office, which we are thrilled about. We have a Charlotte LPO. It's not quite the same thing. That's a commercial real estate play. We have four branches in Eastern North Carolina. In general terms, we see this as an infill, and it would be great. I think it'll also give us opportunity in Charlotte because when you have an LPO and no other meaningful presence, and you don't have bankers, you know, with so many 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. This is going to be a little broader. Think of this as an infill strategy over time, and I think this is going to create opportunity for us. 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. If you're in Martinsville, Danville, et cetera, kind of your closest metro area is, in fact, this Piedmont Triad. It's, it's contiguous. It's right across the line. Dave, anything, Dave Ring is here, anything you wish to say about North Carolina expansion plans? I think we'll work together with the management team in North Carolina to develop the strategy. Right. We'll take our time, and we'll plot it out so we can be successful. That's right. I think they've done a good job. We bring additional capabilities to the table. We looked very much like American 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 our size doing that are actually plain vanilla in our minds. We bring all this to the table. This will be a big acceleration play, we believe. We're excited, having spent time with the leadership of these markets. You know, they are the ones who will really drive this. They will be at the table, and we will work with them. That's more to follow on this with passage of time. I don't want to get the cart before the horse. Thanks, Stephen. Justin, I know we're running a little bit long, so we have time for one more caller, please. Thank you, sir. One moment for our next question. Our next question comes from David Bishop from Hovde Group. Your line is now open. David, good morning. Hey, good morning, gentlemen. Hey, 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 have experience? David, Legacy North Carolina banker? David, I'm so sorry. May I ask you to repeat that? We were having difficulty hearing you. Oh, I'm sorry. Yeah, just curious if you think this accelerates the prospects for long-term loan growth at the combined company, especially. Oh, I'm sorry. Atlantic Union. Absolutely, it does. What's happening is that it absolutely accelerates prospects, not just for loan growth over time, but I just think great 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. 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 gonna be a formidable combination. In a summary, presence for us and these very attractive North Carolina markets, Piedmont Triad, and particularly the Raleigh office, coupled with Charlotte, 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 gonna be a really good combination. We're excited. We think this is great. Of course, the Roanoke Valley is, we are there, and I think that we're a bit undersized, but 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 number one, the way I think about it, this is a formidable Western Virginia franchise, and we are excited about it. Got it. John, maybe, I'm just curious, you know, obviously strong growth in pure C&I this quarter. Just curious, any color in terms of what drove the strong quarter just in sort of the pure C&I category this quarter? Yeah, in terms of where growth came from in terms of C&I during the quarter? Dave, do you have any perspective on that? Saw pretty good strength across the board. Every market grew, except for the Western Virginia market, which we're, I think, now adding firepower to. Isn't that interesting? Yeah. All the specialty groups grew quarter- over- quarter. All the markets grew quarter- over- quarter, except for that one. Pretty well distributed. Again, we just, you know, 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 my 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. Got it. Maybe just a housekeeping item for Rob, the 40% cost saves off American National. Should we assume a 2Q annualized or 2022? Just curious, what's the best base to use in terms of forecasting those expense saves? Yeah. We're talking about $27 million of cost saves, which we're modeling 75% in 2024, depending on the close date, then 100% thereafter. Got it. Appreciate the time. Yep. Thank you. Thanks, David, and thanks, Justin. Thanks, everyone, for joining us today. John, do you have any- 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. I hope the Virginia Bankers Association Banker School will take this transcript and teach that as a case study. 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. Thank you all very much for your time today. Thank you, and have a good day. This concludes today's conference call. Thank you for participating. You may now disconnect.