Atlantic Union Bankshares Corp. Q1 2026 Investor Update: Robust Growth, Strategic Expansion, and Financial Strength

Atlantic Union Bankshares Corporation (NYSE: AUB) has released its latest investor presentation covering the first quarter of 2026. The report provides significant updates on the company’s financial performance, capital position, and strategic direction following its recent acquisitions and outlines future growth plans that are highly relevant for shareholders and potential investors.

Key Highlights

• Largest Regional Bank in Lower Mid-Atlantic: With \$37.3 billion in assets, 178 branches, and a leading market share in Virginia, Maryland, and North Carolina, AUB has firmly established itself as the premier regional bank headquartered in this corridor.
• Solid Financial Performance in Q1 2026:
  • Loans grew to \$27.9 billion (2.2% annualized growth in Q1 2026).
  • Deposits reached \$30.4 billion.
  • Loan-to-deposit ratio stood at 92.0% as of March 31, 2026.
  • Non-interest bearing deposits formed 23% of the deposit base, supporting funding stability.
  • Market capitalization as of April 20, 2026: \$5.5 billion.
• Strong Capital and Balance Sheet:
  • Common Equity Tier 1 (CET1) ratio: 10.2% (AUB) and 13.1% (AUB Bank), well above regulatory well-capitalized minimums.
  • Tangible equity to tangible assets: 8.5% (AUB) and 10.5% (AUB Bank).
  • Liquidity coverage ratio of uninsured/unsecured deposits at ~156% with total liquidity sources of \$15.0 billion.
  • Dividend increased 8.8% from Q1 2025; Q1 2026 dividend per share: \$0.37 common, \$171.88 Series A Preferred.
• Peer-Leading Performance:
  • Q1 2026 adjusted operating return on tangible common equity (ROTCE): 19.6%.
  • Q1 2026 adjusted operating ROA: 1.41%.
  • Q1 2026 adjusted operating efficiency ratio (FTE): 49.9%.
  • Consistently strong asset quality: annualized net charge-offs at 2 basis points; allowance for credit losses at 1.15% of loans.

Strategic Developments and Expansion Plans

• Acquisitions & Integration:
  • Completion of Sandy Spring Bancorp (Q2 2025) and American National Bankshares (Q2 2024) integrations; focus is now on maximizing synergies and extracting full value for shareholders.
• North Carolina Expansion:
  • 10 new branches planned over the next 3 years, focusing on high-growth markets in Raleigh (7 branches) and Wilmington (3 branches), supported by 86 additional branded ATMs and expanded commercial, wealth, and mortgage teams.
  • North Carolina represents a substantial growth opportunity, with AUB currently holding just 0.4% deposit market share in the state, compared to its 5.4% share in Maryland and 8.9% in Virginia.
• Organic Growth Focus: After recent acquisitions, AUB will deprioritize whole-bank M&A and concentrate on organic growth, deepening client relationships, and capital generation.

Detailed Financial Outlook for FY 2026

• Loans (End of Period): \$29.0 – \$30.0 billion
• Deposits (End of Period): \$31.0 – \$32.0 billion
• Net Interest Income (FTE): \$1.34 – \$1.35 billion
• Net Interest Margin (FTE): 3.90% – 4.00%
• Noninterest Income: \$220 – \$230 million
• Adjusted Operating Noninterest Expense (excl. amortization): \$742 – \$752 million
• Amortization of Intangible Assets: ~\$60 million
• Credit Quality:
  • Allowance for Credit Losses (ACL) to loans: 115 – 120 bps
  • Net charge-off ratio: 10 – 15 bps
• Tangible Book Value Per Share Growth: Targeting 12-15% growth
• Key Assumptions: No Fed rate cuts in 2026, moderate GDP growth, stable economic conditions in AUB’s footprint, and unemployment in VA, MD, and NC to remain below national average.

Loan Portfolio and Asset Quality Details

• Diversified Loan Portfolio (\$27.9 billion):
  • 40% commercial (C&I, owner-occupied CRE).
  • Non-owner occupied CRE: 25.8% (\$7.2 billion) with limited exposure to office (5.2%) and retail (6.2%).
  • Multifamily CRE: 8.3% (\$2.3 billion), geographically diversified and high asset quality (1.16% loss reserves, delinquency 1.37%).
  • Government contracting and private credit exposures are well-monitored and granular; no recent charge-offs or delinquencies in these segments.
• Securities Portfolio:
  • Total portfolio: \$4.9 billion (as of March 31, 2026), with an effective duration of 3.9 years and a total unrealized loss of \$357.5 million (mainly in AFS securities).
  • 83% AFS, 17% HTM; 15% floating rate, 85% fixed rate.

Deposit and Liquidity Profile

• Deposit Base Composition:
  • 92% core deposits, 48% transactional accounts, cost of deposits at 1.90% (Q1 2026).
  • Granular retail and business accounts; uninsured/unsecured deposits at \$9.6 billion (31% of total deposits).
• Liquidity: \$15.0 billion in total liquidity, including cash, unencumbered securities, FHLB, Fed funds, and other sources.

Non-GAAP Financial Metrics and Adjustments

• Management provides numerous non-GAAP financial measures (e.g., adjusted operating EPS, ROTCE, efficiency ratios) to give investors a clearer picture of core operating performance by excluding merger costs, FDIC assessments, legal settlements, and other one-time items.
• Q1 2026 adjusted operating EPS: \$0.89
• FY 2025 adjusted operating EPS: \$3.44
• Q1 2026 adjusted operating ROTCE: 19.62%
• Q1 2026 adjusted operating efficiency ratio (FTE): 49.86%

Risks and Cautionary Statements

• All forward-looking statements are subject to risks including interest rate changes, economic conditions, regulatory policies, competition, credit quality, and integration of recent acquisitions.
• Potential adverse events such as economic downturns, regulatory actions, cybersecurity incidents, or delays in realizing acquisition benefits could materially impact performance.

Shareholder-Relevant, Price-Sensitive Items

• Strong capital and liquidity position supports dividend growth, share buybacks, and future investment.
• Strategic pause on further M&A following the Sandy Spring and American National integrations. This signals a focus on organic growth and may affect market expectations for inorganic expansion.
• North Carolina branch expansion could drive future market share gains and revenue growth in a relatively underpenetrated state.
• Solid asset quality and disciplined credit management reduce risk and support long-term shareholder value.
• Clear financial outlook for 2026 with ambitious targets for loan, deposit, and tangible book value growth.

Conclusion

Atlantic Union Bankshares Corp. enters the remainder of 2026 in a strong financial position, having completed major acquisitions and now focusing on organic growth, capital optimization, and targeted market expansion. Its robust capital and liquidity profile, improving efficiency metrics, and peer-leading profitability set the stage for continued shareholder value creation. Investors should closely monitor the execution of the North Carolina expansion, ongoing integration benefits, and management’s ability to sustain high asset quality and operational efficiency.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors are encouraged to review the company’s SEC filings and consult with a qualified financial advisor before making investment decisions.

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