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Atlantic Union Bankshares Corporation reported first-quarter 2026 net income available to common shareholders of $119.2 million, with basic and diluted earnings per common share of $0.84. Adjusted operating earnings available to common shareholders were $126.2 million, and adjusted diluted operating earnings per common share were $0.89.
“Atlantic Union had a solid first quarter, reflecting disciplined execution and a successful conclusion of the Sandy Spring Bancorp, Inc. integration,” said John C. Asbury, president and chief executive officer of Atlantic Union. He said asset quality remains strong, annualized first-quarter loan growth improved year over year during a seasonally slow period, and the company continued to reduce higher-cost brokered deposits. Asbury added that underlying operating performance supports the company’s confidence in achieving full-year 2026 targets for adjusted operating return on assets, return on tangible common equity, and the efficiency ratio.
For the first quarter of 2026, net interest income was $312.4 million, down $17.8 million from $330.2 million in the fourth quarter of 2025. Net interest income on a fully taxable equivalent (FTE) basis was $316.9 million, down $17.9 million from $334.8 million.
The company attributed the quarter-over-quarter declines primarily to lower interest income on loans held for investment (LHFI), reflecting reduced loan accretion income, a lower day count in the first quarter, and the impact of lower yields on variable-rate loans after a cumulative 75 basis point reduction in the federal funds rate between September and December 2025. The declines were partially offset by lower interest expense, driven by reduced brokered deposit balances and lower customer deposit rates following the federal funds rate reductions.
Net interest margin decreased 10 basis points to 3.80% and net interest margin (FTE) decreased 11 basis points to 3.85% from the prior quarter. Atlantic Union said the margin compression reflected a decline in earning asset yields, partially offset by a lower cost of funds. Earning asset yields fell 20 basis points to 5.79%, while cost of funds decreased 9 basis points to 1.94%.
The company noted that net interest margin (FTE) includes acquisition accounting fair value adjustments. It said net accretion income for the quarter ended March 31, 2026 was $13.0 million lower than the prior quarter, with the prior quarter including elevated accelerated loan accretion income due to higher prepayment activity and the current quarter including a measurement period adjustment related to the Sandy Spring acquisition, which reduced loan accretion income by $3.5 million.
At March 31, 2026, nonperforming assets (NPAs) were 0.36% of total LHFI, down 6 basis points from the prior quarter. The company reported nonaccrual loans of $97.8 million.
Accruing past due loans were 0.45% of total LHFI at March 31, 2026, up 4 basis points from December 31, 2025. Net charge-offs were 0.02% of total average LHFI (annualized) for the first quarter of 2026, up 1 basis point from December 31, 2025.
The allowance for credit losses (ACL) totaled $321.9 million at March 31, 2026, increasing by $658 thousand from the prior quarter.
Past due loans still accruing interest totaled $125.0 million (0.45% of total LHFI) at March 31, 2026, compared with $113.0 million (0.41%) at December 31, 2025 and $50.0 million (0.27%) at March 31, 2025. The company said the increase from the prior quarter was primarily within the multifamily real estate and CRE—owner occupied loan portfolios, while the increase from the prior year was primarily due to loans acquired in the Sandy Spring acquisition.
Effective January 1, 2026, Atlantic Union changed its ACL methodology as part of enhancements to its credit modeling practices, using more dynamic and precise modeling to improve granularity in monitoring credit losses. The company said the changes were accounted for prospectively as a change in accounting estimate and did not have a material impact on its consolidated financial statements.
At March 31, 2026, the ACL of $321.9 million included an allowance for loan and lease losses (ALLL) of $291.1 million and a reserve for unfunded commitments (RUC) of $30.8 million. The ACL as a percentage of total LHFI was 1.15%, compared with 1.16% at December 31, 2025. The ALLL as a percentage of total LHFI decreased by 2 basis points to 1.04%, while the RUC coverage ratio increased by 1 basis point to 0.11%, primarily driven by higher construction and land development unfunded commitments.
Net charge-offs were $1.6 million, or 0.02% of total average LHFI (annualized), for the first quarter of 2026. This compares with $916 thousand, or 0.01% (annualized), for the fourth quarter of 2025, and $2.3 million, or 0.05% (annualized), for the first quarter of 2025.
Atlantic Union recorded a provision for credit losses of $2.7 million in the first quarter of 2026, compared with $2.2 million in the prior quarter and $17.6 million in the first quarter of 2025. The company said the decrease versus the prior year was primarily due to higher uncertainty in the economic outlook in the prior year and specific reserves recorded in the prior year on two impaired commercial and industrial loans.
Noninterest income decreased $2.2 million to $54.8 million in the first quarter of 2026 from $57.0 million in the prior quarter. The company said the decline was primarily driven by a $4.4 million decrease in loan-related interest rate swap fees due to seasonally lower transaction volumes, partially offset by a $1.5 million increase in other operating income, mainly from higher capital markets income.
Noninterest expense decreased $33.4 million to $209.8 million in the first quarter of 2026 from $243.2 million in the prior quarter. Atlantic Union attributed the decrease primarily to a $29.6 million reduction in pre-tax merger-related costs and a $2.3 million decrease in amortization of intangible assets.
Adjusted operating noninterest expense, excluding merger-related costs ($9.0 million in the first quarter of 2026 and $38.6 million in the fourth quarter of 2025) and amortization of intangible assets ($15.4 million in the first quarter of 2026 and $17.7 million in the fourth quarter of 2025), decreased $1.6 million to $185.3 million from $186.9 million in the prior quarter. The company said the decrease was primarily due to lower other expenses, including decreases in non-credit-related losses on customer transactions, professional services related to strategic projects, and technology and data processing expense. These were partially offset by a $5.0 million increase in salaries and benefits expense, primarily from seasonal increases in payroll taxes and 401(k) contribution expenses.
The company reported an effective tax rate of 21.0% for both the quarter ended March 31, 2026 and the quarter ended December 31, 2025.
In its remarks, Atlantic Union said the first-quarter results support its confidence in achieving full-year 2026 financial metrics, including targets for adjusted operating return on assets, return on tangible common equity, and the efficiency ratio.
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