Atlantic Union earnings totaled $133.7 million available to common shareholders, or $0.94 per diluted share, in the third quarter of 2026. Results released on October 20 showed loan growth lifting net interest income, even as higher deposit and borrowing costs narrowed the bank’s net interest margin.
Key Takeaways
- Net interest income rose from the second quarter despite a seven-basis-point decline in net interest margin.
- Credit-loss provisions fell, while past-due loans increased and nonperforming assets declined.
- The bank repurchased $62.5 million of shares and refinanced subordinated debt during the quarter.
Table of Contents
- Atlantic Union earnings reflect loan growth and funding pressure
- Lower provisions accompany mixed credit indicators
- Fee income and operating costs weigh on results
- Debt refinancing and buybacks reshape capital
- Conclusion
Atlantic Union earnings reflect loan growth and funding pressure
The company’s third-quarter results announcement put adjusted operating earnings available to common shareholders at $135.6 million, or $0.96 per diluted share. These are non-GAAP measures, distinct from reported net income and earnings per share.
Net interest income increased to $328.4 million from $325.1 million in the second quarter. Loans held for investment reached $29.297 billion at September 30, up $624 million from June 30, with commercial and industrial, other commercial, and construction and land development loans driving the sequential increase.
The larger loan book helped offset funding pressure. Net interest margin fell to 3.82%, down seven basis points from the previous quarter, as the cost of funds increased seven basis points to 2.01%. Higher customer deposit costs, brokered deposit costs and borrowing expenses limited the benefit of loan growth.
| Item | Details |
|---|---|
| Total assets | $38.352 billion at September 30, 2026 |
| Total deposits | $30.966 billion, up $498 million from June 30 |
| Allowance for credit losses | $334.2 million, up $3.3 million from the prior quarter |
| Common equity Tier 1 ratio | Estimated at 10.39%, versus 10.41% at June 30 |
| Common dividend paid | $0.37 per share, unchanged from the second quarter |
Lower provisions accompany mixed credit indicators
The provision for credit losses declined to $5.7 million from $11.7 million in the second quarter. Atlantic Union attributed the reduction primarily to lower reserve requirements associated with a modest decline in the allowance coverage ratio and slower loan growth than in the preceding quarter.
Nonperforming assets fell to 0.37% of loans held for investment from 0.39% at June 30. Annualized net charge-offs remained at 0.03%, compared with 0.56% a year earlier, when charge-offs on two commercial and industrial loans increased losses.
Past-due loans still accruing interest moved in the opposite direction, rising to $98.9 million from $80.4 million. The increase was concentrated in commercial real estate and commercial and industrial lending. The figures show that lower realized losses and fewer nonperforming assets did not mean every credit indicator improved.
Fee income and operating costs weigh on results
Noninterest income declined to $54.8 million from $90.2 million in the second quarter, largely because the prior period included a $32.3 million pre-tax gain from selling the bank’s equity interest in Bearing Insurance Group.
Excluding that gain and small securities gains, adjusted operating noninterest income fell $3.1 million. Lower loan-related interest rate swap fees, mortgage banking income, and fiduciary and asset management fees contributed to the decline.
Noninterest expense increased to $204.3 million from $199.1 million, including a $2.7 million pre-tax debt-extinguishment loss. Adjusted operating noninterest expense rose to $186.7 million from $184.0 million, reflecting higher marketing, compensation and technology costs, partly offset by lower other expenses.
Debt refinancing and buybacks reshape capital
Atlantic Union issued $250 million of subordinated notes due August 1, 2036, carrying an initial fixed rate of 6.25%. It used part of the net proceeds to redeem $168 million of notes due in 2029, with the remainder available for general corporate purposes. The redemption generated the quarter’s debt-extinguishment charge.
The company also repurchased approximately 1.5 million shares for $62.5 million at an average price of $41.38. Approximately $177.5 million remained available at September 30 under the authorization that runs through May 5, 2027.
Conclusion
Atlantic Union’s quarter combined a larger loan book and lower credit provisions with tighter lending margins and weaker fee income. Its remaining $177.5 million repurchase capacity is available through May 5, 2027, although the authorization does not commit the bank to further purchases.
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