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

6 Months Ended

Jun. 30, 2026

Revenue from Contract with Customer [Abstract]

SEGMENT REPORTING AND REVENUE

13. 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 totaled $204.5 million and $17.5 million for the three months ended June 30, 2026 and June 30, 2025. The information is disaggregated by major source and reportable operating segment for the three months ended June 30, (dollars in thousands):


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2026
Interest and dividend income (expense) ⁽¹⁾	$	441,685	$	236,853	$	(191,710)	$	486,828
Interest expense (income) ⁽¹⁾		278,650		127,728		(244,668)		161,710
Net interest income		163,035		109,125		52,958		325,118
Provision for credit losses		5,381		5,690		666		11,737
Net interest income after provision for credit losses		157,654		103,435		52,292		313,381
Noninterest income		32,866		19,093		38,289		90,248
Noninterest expenses		90,954		105,635		2,547		199,136
Income before income taxes	$	99,566	$	16,893	$	88,034	$	204,493
2025
Interest and dividend income (expense) ⁽¹⁾	$	443,315	$	248,482	$	(181,425)	$	510,372
Interest expense (income) ⁽¹⁾		284,936		135,631		(231,566)		189,001
Net interest income		158,379		112,851		50,141		321,371
Provision for credit losses		80,022		25,685		—		105,707
Net interest income after provision for credit losses		78,357		87,166		50,141		215,664
Noninterest income		23,652		19,661		38,209		81,522
Noninterest expenses		84,593		98,515		96,590		279,698
Income (loss) before income taxes	$	17,416	$	8,312	$	(8,240)	$	17,488

⁽¹⁾The Company uses a funds transfer pricing methodology for net interest income which utilizes the matched funding approach to allocate the cost of funds used or credit for funds provided to all operating loans and deposits, resulting in interest and dividend expense and interest income for the Corporate Other segment.

The following table presents and reconciles income before income taxes compared to the Consolidated Statements of Income. Income before income taxes totaled $359.1 million and $79.0 million for the six months ended June 30, 2026 and June 30, 2025, respectively. The information is disaggregated by major source and reportable operating segment for the six months ended June 30, (dollars in thousands):


Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2026
Interest and dividend income (expense) ⁽¹⁾	$	867,804	$	468,085	$	(377,326)	$	958,563
Interest expense (income) ⁽¹⁾		543,892		249,811		(472,631)		321,072
Net interest income		323,912		218,274		95,305		637,491
Provision for credit losses		5,660		7,698		1,117		14,475
Net interest income after provision for credit losses		318,252		210,576		94,188		623,016
Noninterest income		61,810		37,445		45,776		145,031
Noninterest expenses		184,744		210,631		13,571		408,946
Income before income taxes	$	195,318	$	37,390	$	126,393	$	359,101
2025
Interest and dividend income (expense) ⁽¹⁾	$	740,302	$	404,624	$	(328,718)	$	816,208
Interest expense (income) ⁽¹⁾		482,583		215,990		(387,901)		310,672
Net interest income		257,719		188,634		59,183		505,536
Provision for credit losses		95,067		28,278		—		123,345
Net interest income after provision for credit losses		162,652		160,356		59,183		382,191
Noninterest income		35,451		34,295		40,939		110,685
Noninterest expenses		139,805		166,082		107,995		413,882
Income (loss) before income taxes	$	58,298	$	28,569	$	(7,873)	$	78,994

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 ⁽¹⁾		Total
June 30, 2026
LHFI, net of unearned income	$	23,837,961	$	5,452,570	$	(617,260)	$	28,673,271
Goodwill ⁽²⁾		1,281,726		473,149		—		1,754,875
Deposits ⁽³⁾		12,025,991		17,697,300		744,966		30,468,257
December 31, 2025
LHFI, net of unearned income	$	23,179,687	$	5,317,949	$	(701,469)	$	27,796,167
Goodwill		1,254,979		478,308		—		1,733,287
Deposits ⁽³⁾		11,339,236		17,820,026		1,312,374		30,471,636

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

⁽²⁾During the first quarter of 2026, goodwill was reallocated among reporting units as a result of measurement period adjustments associated with the Sandy Spring acquisition, resulting in a $26.7 million increase in Wholesale Banking and a $5.2 million decrease in Consumer Banking. As of March 31, 2026, the purchase accounting was finalized and no longer subject to change.

⁽³⁾Corporate Other primarily includes brokered deposits.

Revenue

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


		Three Months Ended				Six Months Ended
		2026		2025		2026		2025
Noninterest income:
Service charges on deposit accounts ⁽¹⁾:
Overdraft fees		$	5,907	$	6,063	$	11,943	$	11,640
Maintenance fees & other			6,352		6,157		12,431		10,265
Other service charges, commissions, and fees ⁽¹⁾			2,286		2,245		4,224		4,007
Interchange fees ⁽¹⁾			3,750		3,779		7,076		6,727
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees			11,302		7,987		21,915		11,811
Registered advisor management fees			7,852		6,902		15,232		6,904
Brokerage management fees			2,306		2,834		4,491		5,705
Mortgage banking income			2,656		2,821		4,682		3,794
Bank owned life insurance income			5,734		7,327		10,934		10,864
Loan-related interest rate swap fees			6,484		1,733		10,458		4,133
Other operating income ⁽²⁾⁽³⁾			35,619		33,674		41,645		34,835
Total noninterest income		$	90,248	$	81,522	$	145,031	$	110,685

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

⁽²⁾ Includes a $32.3 million pre-tax gain on sale of equity interest in Bearing Insurance Group, LLC (“Bearing Insurance”) for the three and six months ended June 30, 2026.

⁽³⁾ Includes a $15.7 million pre-tax gain on CRE loan sale and a $14.3 million pre-tax gain on sale of equity interest in Cary Street Partners LLC (“CSP”) for the three and six months ended June 30, 2025.

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


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2026
Noninterest income:
Service charges on deposit accounts	$	4,684	$	7,575	$	—	$	12,259
Other service charges, commissions and fees		649		1,637		—		2,286
Fiduciary and asset management fees		19,021		2,439		—		21,460
Mortgage banking income		—		2,656		—		2,656
Other income		8,512		4,786		38,289		51,587
Total noninterest income	$	32,866	$	19,093	$	38,289	$	90,248
2025
Noninterest income:
Service charges on deposit accounts	$	4,271	$	7,949	$	—	$	12,220
Other service charges, commissions and fees		508		1,623		114		2,245
Fiduciary and asset management fees		15,758		1,965		—		17,723
Mortgage banking income		—		2,821		—		2,821
Other income		3,115		5,303		38,095		46,513
Total noninterest income	$	23,652	$	19,661	$	38,209	$	81,522


Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other ⁽¹⁾⁽²⁾		Total
2026
Noninterest income:
Service charges on deposit accounts	$	9,095	$	15,279	$	—	$	24,374
Other service charges, commissions and fees		1,084		3,140		—		4,224
Fiduciary and asset management fees		36,901		4,737		—		41,638
Mortgage banking income		—		4,682		—		4,682
Other income		14,730		9,607		45,776		70,113
Total noninterest income	$	61,810	$	37,445	$	45,776	$	145,031
2025
Noninterest income:
Service charges on deposit accounts	$	7,281	$	14,624	$	—	$	21,905
Other service charges, commissions and fees		904		2,988		115		4,007
Fiduciary and asset management fees		20,529		3,891		—		24,420
Mortgage banking income		—		3,794		—		3,794
Other income		6,737		8,998		40,824		56,559
Total noninterest income	$	35,451	$	34,295	$	40,939	$	110,685

⁽¹⁾ For the three and six months ended June 30, 2026, other income primarily includes a $32.3 million pre-tax gain on sale of equity interest in Bearing Insurance and income from BOLI.

⁽²⁾ For the three and six months ended June 30, 2025, other income primarily includes a $15.7 million pre-tax gain on CRE loan sale, a $14.3 million pre-tax gain on sale of equity interest in CSP, and income from BOLI.

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


Three Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2026
Noninterest expenses:
Salaries and benefits	$	31,514	$	27,515	$	53,280	$	112,309
Occupancy expenses		392		8,339		4,131		12,862
Technology and data processing		1,864		403		13,749		16,016
Furniture and equipment expenses		81		1,677		3,774		5,532
Loan-related expenses		567		1,650		506		2,723
Other expenses ⁽¹⁾		56,536		66,051		(72,893)		49,694
Total noninterest expense	$	90,954	$	105,635	$	2,547	$	199,136
2025
Noninterest expenses:
Salaries and benefits	$	32,923	$	29,838	$	47,181	$	109,942
Occupancy expenses		410		7,534		4,838		12,782
Technology and data processing		1,342		392		15,514		17,248
Furniture and equipment expenses		64		1,296		4,984		6,344
Loan-related expenses		(253)		1,060		471		1,278
Other expenses ⁽¹⁾		50,107		58,395		23,602		132,104
Total noninterest expense	$	84,593	$	98,515	$	96,590	$	279,698


Six Months Ended:	Wholesale Banking		Consumer Banking		Corporate Other		Total
2026
Noninterest expenses:
Salaries and benefits	$	67,034	$	55,685	$	103,003	$	225,722
Occupancy expenses		767		16,725		8,572		26,064
Technology and data processing		3,622		677		27,319		31,618
Furniture and equipment expenses		165		3,270		7,653		11,088
Loan-related expenses		1,396		2,904		1,274		5,574
Other expenses ⁽¹⁾		111,760		131,370		(134,250)		108,880
Total noninterest expense	$	184,744	$	210,631	$	13,571	$	408,946
2025
Noninterest expenses:
Salaries and benefits	$	53,607	$	49,774	$	81,976	$	185,357
Occupancy expenses		646		12,700		8,016		21,362
Technology and data processing		2,227		571		24,637		27,435
Furniture and equipment expenses		127		2,289		7,842		10,258
Loan-related expenses		(140)		1,835		832		2,527
Other expenses ⁽¹⁾		83,338		98,913		(15,308)		166,943
Total noninterest expense	$	139,805	$	166,082	$	107,995	$	413,882

⁽¹⁾ Includes allocated expenses