Atlantic Union Bankshares reported first-quarter 2026 net income available to common shareholders of $119.2 million, down from the prior quarter’s adjusted operating earnings available to common shareholders of $126.2 million. Diluted earnings per share were $0.84, compared with $0.89 on an adjusted operating basis in the previous quarter.
Net interest income fell to $312.4 million from $330.2 million in the fourth quarter of 2025, a decline of $17.8 million. On a fully taxable equivalent basis, net interest income dropped to $316.9 million from $334.8 million. The company said the decline reflected lower loan accretion income, fewer days in the quarter, and lower yields on variable-rate loans after the Federal Reserve’s rate cuts late last year.
Net interest margin narrowed to 3.80% from 3.90% in the prior quarter, while the fully taxable equivalent margin slipped to 3.85% from 3.96%. Earning asset yields declined to 5.79% from 5.99%, and cost of funds eased to 1.94% from 2.03%.
Noninterest income decreased to $54.8 million from $57.0 million, led by a $4.4 million drop in loan-related interest rate swap fees. That was partly offset by a $1.5 million increase in other operating income, including higher capital markets income.
Noninterest expense fell sharply to $209.8 million from $243.2 million, a reduction of $33.4 million. The biggest driver was a $29.6 million decline in merger-related costs, along with a $2.3 million decrease in amortization of intangible assets. Adjusted operating noninterest expense slipped to $185.3 million from $186.9 million.
Provision for credit losses rose to $2.7 million from $2.2 million in the previous quarter, but was well below $17.6 million in the first quarter of 2025.
Credit metrics were mixed. Nonperforming assets declined to $99.7 million from $116.9 million at year-end 2025. As a percentage of total loans held for investment, nonperforming assets improved to 0.36% from 0.42%. Accruing past-due loans increased to $125.0 million, or 0.45% of loans, from $113.0 million, or 0.41%. Net charge-offs rose to $1.6 million, or 0.02% of average loans, from $916,000, or 0.01%.
The allowance for credit losses edged up to $321.9 million from $321.2 million. The allowance as a percentage of loans held for investment was 1.15%, compared with 1.16% in the prior quarter. The allowance for loan and lease losses fell to 1.04% from 1.06%, while the reserve for unfunded commitments increased to 0.11% from 0.10%.
On the balance sheet, total assets declined to $37.3 billion from $37.6 billion. Loans held for investment increased to $27.9 billion from $27.8 billion, while deposits slipped to $30.4 billion from $30.5 billion. Borrowings fell to $1.3 billion from $1.5 billion.
Compared with a year earlier, the balance sheet expanded sharply after the Sandy Spring acquisition. Total assets rose from $24.6 billion to $37.3 billion. Loans held for investment increased from $18.4 billion to $27.9 billion, and deposits climbed from $20.5 billion to $30.4 billion.
Capital ratios improved modestly from the prior quarter. Common equity tier 1 capital rose to 10.21% from 10.10%, tier 1 capital to 10.75% from 10.64%, and total capital to 14.01% from 13.90%. Tangible common equity to tangible assets increased to 8.03% from 7.85%. As a result of these announcements, the company's shares have moved 0.54% on the market, and are now trading at a price of $35.52. For the full picture, make sure to review Atlantic Union Bankshares Corp's 8-K report.
