Atlantic Union Bankshares Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING AND REVENUE

SEGMENT REPORTING AND REVENUE

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

SEGMENT REPORTING AND REVENUE

14. SEGMENT REPORTING AND REVENUE

Operating Segments

The Company has two reportable operating segments, Wholesale Banking and Consumer Banking, with corporate support functions and intercompany eliminations being presented within Corporate Other.

The following table presents and reconciles income before income taxes compared to the Consolidated Statements of Income. Income before income taxes for the three months ended September 30, 2025 and 2024 totaled $116.3 million and $92.0 million, respectively. Income before income taxes for the nine months ended September 30, 2025 and 2024 totaled $195.3 million and $188.5 million, respectively. The information is disaggregated by major source and reportable operating segment for the three and nine months ended September 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Interest and dividend income	$	454,493	$	252,031	$	(203,087)	$	503,437
Interest expense		293,637		137,295		(246,705)		184,227
Net interest income		160,856		114,736		43,618		319,210
Provision for credit losses		14,368		1,858		7		16,233
Net interest income after provision for credit losses		146,488		112,878		43,611		302,977
Noninterest income		29,000		19,945		2,806		51,751
Noninterest expenses		92,982		108,850		36,614		238,446
Income before income taxes	$	82,506	$	23,973	$	9,803	$	116,282
2024
Interest and dividend income	$	323,446	$	165,012	$	(163,930)	$	324,528
Interest expense		222,349		85,900		(166,653)		141,596
Net interest income		101,097	$	79,112	$	2,723	$	182,932
Provision for credit losses		217		2,389		(3)		2,603
Net interest income after provision for credit losses		100,880		76,723		2,726		180,329
Noninterest income		10,773		15,721		7,792		34,286
Noninterest expenses		50,521		64,694		7,367		122,582
Income before income taxes	$	61,132	$	27,750	$	3,151	$	92,033


Nine Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Interest and dividend income	$	1,194,795	$	656,655	$	(531,805)	$	1,319,645
Interest expense		776,220		353,285		(634,605)		494,900
Net interest income		418,575		303,370		102,800		824,745
Provision for credit losses		109,435		30,136		7		139,578
Net interest income after provision for credit losses		309,140		273,234		102,793		685,167
Noninterest income		64,450		54,240		43,746		162,436
Noninterest expenses		232,787		274,932		144,608		652,327
Income before income taxes	$	140,803	$	52,542	$	1,931	$	195,276
2024
Interest and dividend income	$	911,660	$	455,769	$	(459,099)	$	908,330
Interest expense		634,741		231,411		(473,112)		393,040
Net interest income		276,919		224,358		14,013		515,290
Provision for credit losses		25,803		6,801		(12)		32,592
Net interest income after provision for credit losses		251,116		217,557		14,025		482,698
Noninterest income		29,913		43,589		10,149		83,651
Noninterest expenses		142,926		185,672		49,261		377,859
Income before income taxes	$	138,103	$	75,474	$	(25,087)	$	188,490

The following table presents the Company’s operating segment results for key balance sheet metrics as of the periods ended (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other		Total
September 30, 2025
LHFI, net of deferred fees and costs ⁽¹⁾	$	22,852,155	$	5,257,652	$	(748,634)	$	27,361,173
Goodwill ⁽²⁾		1,249,654		476,732		—		1,726,386
Deposits ⁽³⁾		11,548,604		17,958,684		1,158,036		30,665,324
December 31, 2024
LHFI, net of deferred fees and costs ⁽¹⁾	$	15,514,640	$	3,085,207	$	(129,226)	$	18,470,621
Goodwill		850,035		364,018		—		1,214,053
Deposits ⁽³⁾		7,193,403		11,899,197		1,305,019		20,397,619

⁽¹⁾Corporate Other includes acquisition accounting fair value adjustments.

⁽²⁾Wholesale Banking and Consumer Banking includes $399.6 million and $112.7 million, respectively, related to goodwill from the Sandy Spring acquisition. Refer to Note 2 “Acquisitions” and Note 5 “Goodwill & Intangible Assets” for more information.

⁽³⁾Corporate Other primarily includes brokered deposits.

Revenue

Noninterest income disaggregated by major source for the three and nine months ended September 30, consisted of the following (dollars in thousands):


	Three Months Ended				Nine Months Ended
	2025		2024		2025		2024
Noninterest income:
Service charges on deposit accounts ⁽¹⁾:
Overdraft fees	$	6,396	$	5,800	$	18,036	$	15,649
Maintenance fees & other		6,442		3,992		16,707		11,798
Other service charges, commissions, and fees ⁽¹⁾		2,325		2,002		6,332		5,700
Interchange fees ⁽¹⁾		4,089		3,371		10,816		8,791
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees		8,730		3,624		20,542		10,761
Registered advisor management fees		7,240		5		14,143		11
Brokerage management fees		2,625		3,229		8,329		7,831
Mortgage banking income		2,811		1,214		6,605		3,274
Gain (loss) on sale of securities		4		4		(83)		(6,510)
Bank owned life insurance income		5,116		5,037		15,979		12,074
Loan-related interest rate swap fees		5,911		1,503		10,043		4,353
Other operating income ⁽²⁾		62		4,505		34,987		9,919
Total noninterest income	$	51,751	$	34,286	$	162,436	$	83,651

⁽¹⁾ Income within scope of ASC 606, Revenue from Contracts with Customers.

⁽²⁾ Includes a $4.8 million pre-tax loss related to the final CRE loan sale settlement for the three months ended September 30, 2025. Includes a $14.3 million pre-tax gain on the sale of our equity interest in Cary Street Partners LLC (“CSP”) and a $10.9 million pre-tax gain on CRE loan sale for the nine months ended September 30, 2025.

The following tables present noninterest income disaggregated by reportable operating segment for the three and nine months ended September 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2025
Noninterest income:
Service charges on deposit accounts	$	4,537	$	8,301	$	—	$	12,838
Other service charges, commissions and fees		813		1,437		75		2,325
Fiduciary and asset management fees		16,548		2,047		—		18,595
Mortgage banking income		—		2,811		—		2,811
Other income		7,102		5,349		2,731		15,182
Total noninterest income	$	29,000	$	19,945	$	2,806	$	51,751
2024
Noninterest income:
Service charges on deposit accounts	$	2,833	$	6,959	$	—	$	9,792
Other service charges, commissions and fees		600		1,402		—		2,002
Fiduciary and asset management fees		4,933		1,925		—		6,858
Mortgage banking income		—		1,214		—		1,214
Other income		2,407		4,221		7,792		14,420
Total noninterest income	$	10,773	$	15,721	$	7,792	$	34,286



Nine Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2025
Noninterest income:
Service charges on deposit accounts	$	11,818	$	22,925	$	—	$	34,743
Other service charges, commissions and fees		1,717		4,426		189		6,332
Fiduciary and asset management fees		37,076		5,938		—		43,014
Mortgage banking income		—		6,605		—		6,605
Other income		13,839		14,346		43,557		71,742
Total noninterest income	$	64,450	$	54,240	$	43,746	$	162,436
2024
Noninterest income:
Service charges on deposit accounts	$	8,178	$	19,269	$	—	$	27,447
Other service charges, commissions and fees		1,413		4,304		(17)		5,700
Fiduciary and asset management fees		13,301		5,302		—		18,603
Mortgage banking income		—		3,274		—		3,274
Other income		7,021		11,440		10,166		28,627
Total noninterest income	$	29,913	$	43,589	$	10,149	$	83,651

⁽¹⁾ For the three months ended September 30, 2024, other income primarily includes income from BOLI and equity method investment income. For the nine months ended September 30, 2024, other income primarily includes $6.5 million of losses incurred on AFS securities, income from BOLI, and equity method investment income.

⁽²⁾ For the three months ended September 30, 2025, other income primarily includes income from BOLI and equity method investment income, partially offset by a $4.8 million pre-tax loss related to the final CRE loan sale settlement. For the nine months ended September 30, 2025, other income primarily includes a $14.3 million gain on the sale of the Company’s equity interest in CSP, a $10.9 million gain on CRE loan sale, and income from BOLI.

The following tables present noninterest expense disaggregated by reportable operating segment for the three and nine months ended September 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Noninterest expenses:
Salaries and benefits	$	30,979	$	27,892	$	49,448	$	108,319
Occupancy expenses		418		8,056		5,108		13,582
Technology and data processing		1,138		504		15,367		17,009
Furniture and equipment expenses		103		1,204		5,229		6,536
Loan-related expenses		386		1,436		111		1,933
Other expenses ⁽¹⁾		59,958		69,758		(38,649)		91,067
Total noninterest expense	$	92,982	$	108,850	$	36,614	$	238,446
2024
Noninterest expenses:
Salaries and benefits	$	17,961	$	18,408	$	33,085	$	69,454
Occupancy expenses		214		4,779		2,813		7,806
Technology and data processing		456		246		9,035		9,737
Furniture and equipment expenses		39		955		2,691		3,685
Loan-related expenses		180		827		438		1,445
Other expenses ⁽¹⁾		31,671		39,479		(40,695)		30,455
Total noninterest expense	$	50,521	$	64,694	$	7,367	$	122,582


Nine Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Noninterest expenses:
Salaries and benefits	$	84,586	$	77,666	$	131,424	$	293,676
Occupancy expenses		1,064		20,755		13,125		34,944
Technology and data processing		3,364		1,075		40,005		44,444
Furniture and equipment expenses		229		3,494		13,071		16,794
Loan-related expenses		247		3,271		943		4,461
Other expenses ⁽¹⁾		143,297		168,671		(53,960)		258,008
Total noninterest expense	$	232,787	$	274,932	$	144,608	$	652,327
2024
Noninterest expenses:
Salaries and benefits	$	52,379	$	53,365	$	94,123	$	199,867
Occupancy expenses		645		13,222		8,400		22,267
Technology and data processing		1,094		660		26,384		28,138
Furniture and equipment expenses		128		2,781		7,890		10,799
Loan-related expenses		596		2,425		1,022		4,043
Other expenses ⁽¹⁾		88,084		113,219		(88,558)		112,745
Total noninterest expense	$	142,926	$	185,672	$	49,261	$	377,859

⁽¹⁾ Includes allocated expenses.