Atlantic Union Bankshares Corporation

What they do

Atlantic Union Bankshares operates through its wholly owned subsidiary, Atlantic Union Bank, offering financial services to commercial and retail clients. It provides loans, deposits, and related services through branches in Virginia, Maryland, Washington D.C., and North Carolina. Non-bank subsidiaries include equipment finance, investment services, and capital markets services.

Revenue drivers

• Net interest income — Primary revenue source, comprising interest earned on loans and securities minus interest paid on deposits and borrowings. Second quarter 2026 net interest income was $325.1 million.
• Loans held for investment (LHFI) — Largest earning asset class, with $27.8 billion at December 31, 2025. Growth and yields on this portfolio drove net interest income increases in Q2 2026.
• Deposits — Primary funding source, totaling $30.5 billion at year-end 2025. Deposit growth contributed to higher interest expense in Q2 2026.
• Noninterest income — Includes gains from asset sales, such as the $32.3 million pre-tax gain on the sale of Bearing Insurance in Q2 2026, and fees from services like equipment finance and investments.

Recent performance

For Q2 2026, net income available to common shareholders was $158.0 million, with diluted EPS of $1.11. Adjusted operating earnings were $134.0 million and adjusted diluted EPS $0.94. Net interest income rose to $325.1 million from $312.4 million in Q1 2026, and net interest margin (FTE) increased 9 basis points to 3.94%. The company reported total assets of $38.10 billion as of June 30, 2026.

Strategy

Management emphasizes soundness, profitability, and growth in that order. Atlantic Union has grown through acquisitions, including Sandy Spring in 2025 and American National in 2024, and is expanding into North Carolina. It completed the sale of its interest in Bearing Insurance in 2026 and initiated a $250 million share repurchase program. The company aims to generate sustainable, profitable growth and long-term shareholder value.

Risks

• Credit risk — The allowance for credit losses may be insufficient if loan defaults exceed expectations, impacting financial results.
• Interest rate risk — Changes in interest rates could compress net interest margin or reduce loan demand, affecting revenue.
• Acquisition integration risk — Future benefits from the Sandy Spring acquisition may not materialize as expected, and integration could be disruptive.
• Regulatory risk — Changes in banking laws or supervisory priorities could increase compliance costs or restrict business activities.

Outlook

Management expects continued loan and deposit growth driven by strategic investments. They highlight strong asset quality and a well-positioned franchise in the lower Mid-Atlantic. Forward-looking statements cite potential impacts from economic conditions, interest rates, and trade policy. The company believes it can deliver differentiated performance relative to peers.