Atlantic Union Bankshares Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING AND REVENUE

SEGMENT REPORTING AND REVENUE

12 Months Ended

Dec. 31, 2025

Revenue from Contract with Customer [Abstract]

SEGMENT REPORTING AND REVENUE

18. 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.

Segment Results

The following table presents and reconciles income before income taxes compared to the Consolidated Statements of Income. Income before income taxes for the years ended December 31, 2025, 2024, and 2023 totaled $337.0 million, $259.8 million, and $239.9 million, respectively. The information is disaggregated by major source and reportable operating segment for the years ended December 31, (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾		Total
2025
Interest and dividend income	$	1,636,974	$	902,327	$	(717,814)	$	1,821,487
Interest expense		1,052,754		483,906		(870,086)		666,574
Net interest income		584,220		418,421		152,272		1,154,913
Provision for credit losses		107,659		34,110		19		141,788
Net interest income after provision for credit losses		476,561		384,311		152,253		1,013,125
Noninterest income		96,565		72,537		50,334		219,436
Noninterest expenses		327,406		382,896		185,268		895,570
Income before income taxes	$	245,720	$	73,952	$	17,319	$	336,991
2024
Interest and dividend income	$	1,222,101	$	619,855	$	(614,421)	$	1,227,535
Interest expense		844,408		318,839		(634,251)		528,996
Net interest income		377,693		301,016		19,830		698,539
Provision for credit losses		40,072		10,029		(12)		50,089
Net interest income after provision for credit losses		337,621		290,987		19,842		648,450
Noninterest income		44,811		59,344		14,723		118,878
Noninterest expenses		194,704		250,178		62,652		507,534
Income (loss) before income taxes	$	187,728	$	100,153	$	(28,087)	$	259,794
2023
Interest and dividend income	$	934,242	$	452,388	$	(432,180)	$	954,450
Interest expense		663,257		198,542		(518,362)		343,437
Net interest income		270,985		253,846		86,182		611,013
Provision for credit losses		34,229		(2,616)		5		31,618
Net interest income after provision for credit losses		236,756		256,462		86,177		579,395
Noninterest income		36,791		51,347		2,739		90,877
Noninterest expenses		164,283		228,374		37,714		430,371
Income before income taxes	$	109,264	$	79,435	$	51,202	$	239,901

⁽¹⁾ For the year ended December 31, 2023, noninterest expenses include $12.6 million ($9.8 million included within other expenses and $2.8 million included within salaries and benefits), in pre-tax expenses associated with strategic cost saving initiatives, principally composed of severance costs related to headcount reductions, and charges for exiting certain leases.

The following table presents the Company’s operating segment results for key balance sheet metrics as of December 31, (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
LHFI, net of unearned income ⁽¹⁾	$	23,179,687	$	5,317,949	$	(701,469)	$	27,796,167
Goodwill ⁽²⁾		1,254,979		478,308		—		1,733,287
Deposits ⁽³⁾		11,339,236		17,820,026		1,312,374		30,471,636
2024
LHFI, net of unearned income ⁽¹⁾	$	15,514,640	$	3,085,207	$	(129,226)	$	18,470,621
Goodwill ⁽⁴⁾		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 $404.9 million and $114.3 million, respectively, related to the Sandy Spring acquisition. Refer to Note 2 “Acquisitions” and Note 6 “Goodwill and Intangible Assets” in this Form 10-K for more information.

⁽³⁾Corporate Other primarily includes brokered deposits.

⁽⁴⁾Wholesale Banking and Consumer Banking includes $210.8 million and $78.0 million, respectively, related to the American National acquisition. Refer to Note 2 “Acquisitions” and Note 6 “Goodwill and Intangible Assets” in this Form 10-K for more information.

Revenue

Noninterest income disaggregated by major source for the years ended December 31, consisted of the following (dollars in thousands):


	2025		2024		2023
Noninterest income:
Service charges on deposit accounts ⁽¹⁾:
Overdraft fees	$	24,003	$	21,472	$	20,045
Maintenance fees & other		22,481		15,807		13,195
Other service charges, commissions, and fees ⁽¹⁾		8,058		7,511		7,860
Interchange fees ⁽¹⁾		14,477		12,134		9,678
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees		30,839		14,520		12,396
Registered advisor management fees		21,538		16		—
Brokerage management fees		10,486		10,992		5,299
Mortgage banking income		8,689		4,202		2,743
Loss on sale of securities		(81)		(6,493)		(40,989)
Bank owned life insurance income		21,020		15,629		11,759
Loan-related interest rate swap fees		18,425		9,435		10,037
Other operating income ⁽²⁾⁽³⁾		39,501		13,653		38,854
Total noninterest income	$	219,436	$	118,878	$	90,877

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

⁽²⁾ Includes a $14.8 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 year ended December 31, 2025.

⁽³⁾ Includes a $29.6 million pre-tax gain related to the sale-leaseback transactions for the year ended December 31, 2023.

The following tables present noninterest income disaggregated by reportable operating segment for the years ended December 31, (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other ^(1)(2)(3)		Total
2025
Noninterest income:
Service charges on deposit accounts	$	16,112	$	30,372	$	—	$	46,484
Other service charges, commissions and fees		2,212		5,808		38		8,058
Fiduciary and asset management fees		54,677		8,186		—		62,863
Mortgage banking income		7		8,682		—		8,689
Other income		23,557		19,489		50,296		93,342
Total noninterest income	$	96,565	$	72,537	$	50,334	$	219,436
2024
Noninterest income:
Service charges on deposit accounts	$	11,018	$	26,261	$	—	$	37,279
Other service charges, commissions and fees		1,843		5,684		(16)		7,511
Fiduciary and asset management fees		18,146		7,382		—		25,528
Mortgage banking income		—		4,202		—		4,202
Other income		13,804		15,815		14,739		44,358
Total noninterest income	$	44,811	$	59,344	$	14,723	$	118,878
2023
Noninterest income:
Service charges on deposit accounts	$	8,562	$	24,678	$	—	$	33,240
Other service charges, commissions and fees		1,654		6,206		—		7,860
Fiduciary and asset management fees		12,117		5,578		—		17,695
Mortgage banking income		—		2,743		—		2,743
Other income		14,458		12,142		2,739		29,339
Total noninterest income	$	36,791	$	51,347	$	2,739	$	90,877

⁽¹⁾ For the year ended December 31, 2025, other income primarily includes income from BOLI, a $14.8 million pre-tax gain on the sale of the Company’s equity interest in CSP, and a $10.9 million pre-tax gain on CRE loan sale.

⁽²⁾ For the year ended December 31, 2024, other income primarily includes income from BOLI, equity method investment income, and $6.5 million of pre-tax losses incurred on AFS securities.

⁽³⁾ For the year ended December 31, 2023, other income primarily includes a $29.6 million pre-tax gain related to the sale-leaseback transactions, a $41.0 million pre-tax loss incurred on the sale of AFS securities, and income from BOLI.

Expense

The following tables present noninterest expense disaggregated by reportable operating segment for the years ended December 31, (dollars in thousands):


	Wholesale Banking		Consumer Banking		Corporate Other		Total
2025
Noninterest expenses:
Salaries and benefits	$	115,793	$	104,540	$	181,748	$	402,081
Occupancy expenses		1,491		28,825		17,850		48,166
Technology and data processing		4,922		1,399		55,618		61,939
Furniture and equipment expenses		348		4,838		16,938		22,124
Loan-related expenses		819		4,380		1,477		6,676
Other expenses ⁽¹⁾		204,033		238,914		(88,363)		354,584
Total noninterest expense	$	327,406	$	382,896	$	185,268	$	895,570
2024
Noninterest expenses:
Salaries and benefits	$	70,842	$	71,643	$	128,679	$	271,164
Occupancy expenses		857		17,966		11,409		30,232
Technology and data processing		1,563		879		35,078		37,520
Furniture and equipment expenses		161		3,716		10,705		14,582
Loan-related expenses		974		3,178		1,361		5,513
Other expenses ⁽¹⁾		120,307		152,796		(124,580)		148,523
Total noninterest expense	$	194,704	$	250,178	$	62,652	$	507,534
2023
Noninterest expenses:
Salaries and benefits	$	59,376	$	65,174	$	112,132	$	236,682
Occupancy expenses		736		12,990		11,420		25,146
Technology and data processing		1,345		875		30,264		32,484
Furniture and equipment expenses		195		3,171		10,916		14,282
Loan-related expenses		687		3,886		1,046		5,619
Other expenses ⁽¹⁾		101,944		142,278		(128,064)		116,158
Total noninterest expense	$	164,283	$	228,374	$	37,714	$	430,371

⁽¹⁾ Includes allocated expenses.