ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER FINANCIAL RESULTS
Atlantic Union Bankshares Corp (AUB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contact: Alexander D. Dodd - (804) 486-2634 Executive Vice President / Chief Financial Officer ATLANTIC UNION BANKSHARES REPORTS THIRD QUARTER FINANCIAL RESULTS Richmond, Va., October 20, 2026 – Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Unio
How this was made
The 30-second read
Why it matters
The earnings beat and share repurchase are likely to generate buying interest, while higher funding costs may temper upside.
Market read
First‑report earnings for a mid‑cap regional bank; material financial data and capital actions provide actionable insight for traders.
What to watch
Higher deposit costs and a $2.7M loss on debt extinguishment could pressure margins if sustained.
Atlantic Union reported third-quarter net income available to common shareholders of $133.7 million and diluted EPS of $0.94, while adjusted diluted operating EPS was $0.96.
Loan balances, net interest income, adjusted operating earnings and asset-quality measures improved year over year, while quarterly GAAP earnings declined following the absence of the prior-quarter Bearing Insurance gain, a lower margin and higher operating expenses.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income, three months ended September 30, 2026GAAP | $328.4M | an increase of $3.3 million | – |
| Net interest income (FTE), three months ended September 30, 2026non-GAAP | $333.1M | an increase of $3.4 million | – |
| Total revenue (FTE), three months ended September 30, 2026non-GAAP | $387.9M | – | – |
| Total adjusted revenue (FTE), three months ended September 30, 2026non-GAAP | $387.9M | – | – |
| Interest and dividend income, three months ended September 30, 2026GAAP | $501.1M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $172.7M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $5.73M | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $54.79M | decreased $35.4 million | – |
| Adjusted operating noninterest income, three months ended September 30, 2026non-GAAP | $54.78M | decreased $3.1 million | – |
| Noninterest expense, three months ended September 30, 2026GAAP | $204.3M | increased $5.2 million | – |
| Adjusted operating noninterest expense, three months ended September 30, 2026non-GAAP | $186.7M | increased $2.7 million | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $173.2M | – | – |
| Net income, three months ended September 30, 2026GAAP | $136.6M | – | – |
| Net income available to common shareholders, three months ended September 30, 2026GAAP | $133.7M | – | – |
| Adjusted operating earnings available to common shareholders, three months ended September 30, 2026non-GAAP | $135.6M | – | – |
| Earnings per common share, basic, three months ended September 30, 2026GAAP | $0.95 | – | – |
| Earnings per common share, diluted, three months ended September 30, 2026GAAP | $0.94 | – | – |
| Adjusted operating earnings per common share, diluted, three months ended September 30, 2026non-GAAP | $0.96 | – | – |
| Net interest margin, three months ended September 30, 2026GAAP | 3.82% | decreased 7 basis points | – |
| Net interest margin (FTE), three months ended September 30, 2026non-GAAP | 3.88% | decreased 6 basis points | – |
| Yield on earning assets (FTE), three months ended September 30, 2026non-GAAP | 5.89% | an increase of 1 basis point | – |
| Average cost of funds, three months ended September 30, 2026GAAP | 2.01% | increased 7 basis points | – |
| Efficiency ratio, three months ended September 30, 2026GAAP | 53.32% | – | – |
| Adjusted operating efficiency ratio (FTE), three months ended September 30, 2026non-GAAP | 48.14% | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.43% | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 10.54% | – | – |
| Adjusted operating return on average tangible common equity, three months ended September 30, 2026non-GAAP | 19.85% | – | – |
| Loans held for investment, net of unearned income, September 30, 2026GAAP | $29.30B | 8.63% | 7.08% |
| Deposits, September 30, 2026GAAP | $30.97B | 6.48% | 0.98% |
| Total assets, September 30, 2026GAAP | $38.35B | 2.62% | 3.45% |
| Cash and cash equivalents, September 30, 2026GAAP | $700.8M | – | – |
| Borrowings, September 30, 2026GAAP | $1.62B | (54.63)% | 88.60% |
| Allowance for credit losses, September 30, 2026GAAP | $334.2M | a $3.3 million increase | – |
| Nonperforming assets, September 30, 2026GAAP | $108.5M | – | – |
| Nonperforming assets / total LHFI, September 30, 2026GAAP | 0.37% | a decrease of 2 basis points | a decrease of 12 basis points |
| Net charge-offs / total average LHFI (annualized), three months ended September 30, 2026GAAP | 0.03% | unchanged | a decrease of 53 basis points |
| Past due and still accruing / total LHFI, September 30, 2026GAAP | 0.34% | an increase of 6 basis points | an increase of 7 basis points |
| Common equity Tier 1 capital ratio, September 30, 2026other | 10.39% | – | – |
| Total capital ratio, September 30, 2026other | 14.55% | – | – |
| Leverage ratio, September 30, 2026other | 9.59% | – | – |
Capital returns
- During the third quarter of 2026, the Company repurchased approximately 1.5 million shares (or $62.5 million), at an average price of $41.38 per share.
- At September 30, 2026, approximately $177.5 million remained available under the Repurchase Program for future repurchases.
- Cash dividends paid per common share were $0.37 for the third quarter of 2026.
- Since the inception of the Repurchase Program authorized on May 5, 2026, the Company has repurchased approximately 1.8 million shares for $72.5 million at an average price of $40.84 per share.
What drove it
- Net interest income increased from the second quarter primarily because of higher interest income on loans held for investment, reflecting loan growth and increased loan accretion income.
- LHFI growth from the prior quarter was primarily driven by commercial and industrial, other commercial, and construction and land development loan portfolios.
- The provision for credit losses decreased from both comparison periods, with the prior-year comparison affected by charge-offs of two commercial and industrial loans in the third quarter of 2025.
- The quarterly increase in adjusted operating noninterest expense reflected seasonal marketing and advertising, salaries and benefits, and technology and data processing expenses.
- Total deposits increased from the prior quarter due to increases in brokered and demand deposits, partially offset by lower interest-bearing customer deposits.
Concerns
- Net interest margin was 3.82%, down 7 basis points from the prior quarter, as cost of funds increased 7 basis points to 2.01%.
- Past due loans still accruing interest were $98.9 million, or 0.34% of total LHFI, compared with $80.4 million, or 0.28%, at June 30, 2026.
- Adjusted operating noninterest income decreased $3.1 million sequentially, driven by lower loan-related interest rate swap fees, mortgage banking income and fiduciary and asset management fees.
- Common equity to total assets and tangible common equity to tangible assets decreased from June 30, 2026 because the negative impact of changes in AOCI associated with higher market interest rates and lower fair values of AFS securities exceeded capital generated through earnings.
- The Company's capital ratios at September 30, 2026 are estimates and subject to change pending the filing of its FR Y-9C.
What to watch
- The trajectory of net interest margin, deposit costs, brokered deposit costs and borrowing costs.
- Loan growth in commercial and industrial, other commercial, construction and land development, and commercial real estate portfolios.
- The increase in accruing past due loans in commercial real estate non-owner occupied, commercial and industrial, and commercial real estate owner occupied portfolios.
- Expense growth associated with North Carolina expansion, variable incentive compensation and strategic technology initiatives.
- Use of the remaining approximately $177.5 million under the Repurchase Program.
Balance sheet and cash flow
- Total assets were $38,351.7 million at September 30, 2026.
- Cash and cash equivalents were $700.8 million at September 30, 2026.
- LHFI was $29,296.6 million at September 30, 2026.
- Total deposits were $30,965.5 million at September 30, 2026.
- Borrowings were $1,622.4 million at September 30, 2026.
- The Company issued $250.0 million in aggregate principal amount of 6.25% Fixed-to-Floating Rate Subordinated Notes due August 1, 2036, with net proceeds of approximately $246.8 million.
- The Company redeemed $168.0 million principal amount of its 2029 Subordinated Notes and recognized a $2.7 million pre-tax loss on debt extinguishment.
- Operating cash flow and free cash flow were not reported.
Analysis
Atlantic Union produced third-quarter net income available to common shareholders of $133.7 million and diluted EPS of $0.94, compared with $89.2 million and $0.63 in the third quarter of 2025. Adjusted operating earnings available to common shareholders were $135.6 million and adjusted diluted operating EPS was $0.96, versus $119.7 million and $0.84 a year earlier. Sequential GAAP earnings were lower than the second quarter, when net income available to common shareholders was $158.0 million, principally against a comparison period that included a $32.3 million pre-tax gain on the sale of the Bearing Insurance equity interest.
Core spread income expanded sequentially. Net interest income was $328.4 million, up from $325.1 million in the second quarter, and FTE net interest income was $333.1 million, up from $329.7 million. Management attributed the increase to loan growth and higher loan accretion income. Loan balances ended the period at $29.3 billion, compared with $28.7 billion at June 30, 2026 and $27.4 billion a year earlier. This growth was partly offset by funding pressure: net interest margin was 3.82%, down 7 basis points sequentially, while cost of funds rose 7 basis points to 2.01%.
Credit results remained favorable on the reported measures. Nonperforming assets were $108.5 million, or 0.37% of total LHFI, versus 0.39% in the prior quarter and 0.49% a year earlier. Net charge-offs were $2.3 million, or 0.03% of total average LHFI on an annualized basis, unchanged sequentially and below 0.56% in the third quarter of 2025. The provision for credit losses was $5.7 million, down from $11.7 million in the second quarter and $16.2 million a year earlier. The offset is past due loans still accruing interest, which rose to $98.9 million, or 0.34% of total LHFI, from $80.4 million, or 0.28%, in the prior quarter.
Noninterest income was $54.8 million, down from $90.2 million in the second quarter because that period included the $32.3 million Bearing Insurance gain. On an adjusted operating basis, noninterest income was $54.8 million compared with $57.9 million, reflecting lower loan-related interest rate swap fees, mortgage banking income and fiduciary and asset management fees. Adjusted operating noninterest expense increased to $186.7 million from $184.0 million, led by marketing and advertising, salaries and benefits, and technology and data processing. The Company also recorded a $2.7 million pre-tax loss on debt extinguishment after issuing $250.0 million of 2036 Subordinated Notes and redeeming $168.0 million of 2029 Subordinated Notes.
Balance-sheet growth was funded by higher deposits and a changed borrowing mix. Deposits ended the quarter at $31.0 billion, while borrowings were $1.6 billion. The Company repurchased approximately 1.5 million shares, or $62.5 million, during the quarter and retained approximately $177.5 million of repurchase capacity at September 30, 2026. No forward financial guidance was provided in the filing. The main reported items for investors to follow are margin pressure from deposit and borrowing costs, the rise in accruing past dues, loan growth, expense investment and execution of the remaining repurchase authorization.
Management, verbatim
Atlantic Union delivered a solid third quarter, with healthy loan growth, strong credit quality and continued progress in expanding our earnings capacity.
John C. Asbury, president and chief executive officer of Atlantic Union
Excluding the expense associated with the redemption of our subordinated debt, our operating performance demonstrates the earnings power we have built over many years, which we believe positions us to deliver differentiated financial performance relative to our peers.
John C. Asbury, president and chief executive officer of Atlantic Union
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax-rate or earnings guidance
- Prior guidance comparison
- Operating cash flow
- Free cash flow
- Business segment revenue reporting
- GAAP gross margin
- Total debt excluding the reported borrowings line item
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K providing the first public disclosure of Atlantic Union Bankshares' Q3 results and capital actions.
Ticker impact
Atlantic Union Bankshares reported Q3 2026 earnings with net income of $133.7M and EPS of $0.95, plus a $250M share repurchase and new subordinated debt issuance.
potential modest upside as investors price in earnings beat and share buyback execution
The report shows earnings beat, healthy loan growth, and a sizable buyback, which typically drive short‑term buying pressure.
Market effects
Positive earnings may lift regional banking peers and reinforce confidence in mid‑Atlantic community banks.
May boost sentiment in U.S. regional bank indices.
Limited to U.S. banking sector; no broader global effect.
Counterpoint
If loan growth slows or credit quality deteriorates, the earnings beat could be short‑lived.
Key entities
- companyAtlantic Union Bankshares Corp
Regional bank reporting Q3 2026 earnings.
- executiveJohn C. Asbury
President and CEO who commented on the results.
