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

Quarterly report [Sections 13 or 15(d)]

BORROWINGS

BORROWINGS

9 Months Ended

Sep. 30, 2026

6. BORROWINGS

Available Borrowing Capacity and Short-Term Borrowings

The Company classifies borrowings with original maturities of one year or less as short-term. Short-term borrowings consist primarily of securities sold under repurchase agreements, which are secured customer transactions that generally mature on the following business day, and advances from the FHLB. The Company can also utilize federal funds purchased (secured overnight borrowings from other financial institutions) and other lines of credit, as needed. Total short-term borrowings consisted of the following as of the periods ended (dollars in thousands):


		September 30,			December 31,
		2026			2025
Securities sold under agreements to repurchase		$	114,650		$	75,432
FHLB advances			650,000			650,000
Total short-term borrowings		$	764,650		$	725,432

Average outstanding balance during the period		$	674,386		$	175,929
Average interest rate during the period			3.68	%		3.44	%
Average interest rate at end of period			3.77	%		3.15	%

Short-term borrowings are used to manage normal liquidity and support the Company’s asset and liability management strategies and can fluctuate depending on funding needs. The Company’s available unused short-term borrowings consisted of the following as of the periods ended (dollars in thousands):


	September 30,		December 31,
	2026		2025
Federal funds lines with correspondent banks	$	1,388,000	$	1,410,000
Alternative line of credit with correspondent bank		25,000		25,000
FHLB secured line of credit ⁽¹⁾		4,898,679		5,277,231
Federal Reserve Discount Window ⁽²⁾		1,212,083		2,573,492
Other secondary sources ⁽³⁾		4,715,146		4,960,331
Total available unused short-term borrowings	$	12,238,908	$	14,246,054

⁽¹⁾ The Company’s total credit capacity with FHLB was $11.4 billion and $11.1 billion at September 30, 2026 and December 31, 2025, respectively. Based on the amount of collateral pledged, the secured line of credit capacity was $5.5 billion and $5.9 billion at September 30, 2026 and December 31, 2025, respectively.

⁽²⁾ The Company’s Federal Reserve Discount Window borrowing capacity was $1.2 billion and $2.6 billion at September 30, 2026 and December 31, 2025, respectively. No amounts were outstanding under the Federal Reserve Discount Window at either date.

⁽³⁾Includes unpledged AFS and HTM securities, available brokered deposit capacity, and unrestricted cash and cash equivalents.

Refer to Note 7 “Commitments and Contingencies” within this Item 1 of this Quarterly Report for additional information on the Company’s pledged collateral. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and was in compliance with these covenants as of September 30, 2026 and December 31, 2025.

Long-term Borrowings

During the third quarter of 2026, the Company issued $250.0 million in aggregate principal amount of its 6.25% Fixed-to-Floating Rate Subordinated Notes due August 1, 2036 (the “2036 Subordinated Notes”). The 2036 Subordinated Notes convert to a floating rate equal to Three-Month Term Secured Overnight Financing Rate (“SOFR”), plus a spread of 213 bps on August 1, 2031. Net proceeds from the issuance, after underwriting discounts and offering expenses, were approximately $246.8 million.

The Company used the net proceeds from the issuance of the 2036 Subordinated Notes to redeem the $168.0 million principal amount of its previously outstanding 4.25% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Subordinated Notes”), plus accrued interest, and for general corporate purposes. The 2029 Subordinated Notes transitioned to a floating interest rate on November 15, 2024, and had a rate of 6.53% at the time of redemption. As a result of the redemption, the Company recognized a $2.7 million pre-tax loss on debt extinguishment in the third quarter of 2026, recorded within noninterest expense, reflecting the acceleration of acquisition-related fair value marks associated with the 2029 Subordinated Notes.

Total long-term borrowings consisted of the following as of September 30, 2026 (dollars in thousands):

Spread to

Principal

3-Month SOFR

Rate ⁽³⁾

Maturity

Investment ⁽⁴⁾

Trust Preferred Capital Securities ⁽⁵⁾

Trust Preferred Capital Note – Statutory Trust I

22,500

2.75

% ⁽¹⁾

7.09

6/17/2034

696

Trust Preferred Capital Note – Statutory Trust II

36,000

1.40

% ⁽¹⁾

5.74

6/15/2036

1,114

VFG Limited Liability Trust I Indenture

20,000

2.73

% ⁽¹⁾

7.07

3/18/2034

619

FNB Statutory Trust II Indenture

12,000

3.10

% ⁽¹⁾

7.44

6/26/2033

372

Gateway Capital Statutory Trust I

8,000

3.10

% ⁽¹⁾

7.44

9/17/2033

248

Gateway Capital Statutory Trust II

7,000

2.65

% ⁽¹⁾

6.99

6/17/2034

217

Gateway Capital Statutory Trust III

15,000

1.50

% ⁽¹⁾

5.84

5/30/2036

464

Gateway Capital Statutory Trust IV

25,000

1.55

% ⁽¹⁾

5.89

7/30/2037

774

MFC Capital Trust II

5,000

2.85

% ⁽¹⁾

7.19

1/23/2034

155

AMNB Statutory Trust I

20,000

1.35

% ⁽¹⁾

5.69

6/30/2036

619

MidCarolina Trust I

5,000

3.45

% ⁽²⁾

7.53

11/7/2032

155

MidCarolina Trust II

3,500

2.95

% ⁽²⁾

7.03

1/7/2034

109

Total Trust Preferred Capital Securities

179,000

5,542

Subordinated Debt ⁽⁵⁾

2031 Subordinated Notes ⁽⁶⁾

250,000

—

2.88

12/15/2031

2032 Subordinated Notes ⁽⁷⁾

190,000

—

3.88

3/30/2032

2036 Subordinated Notes ⁽⁸⁾

250,000

—

6.25

8/1/2036

Total Subordinated Debt

690,000

Fair Value Discount ⁽⁹⁾

(16,789)

Investment in Trust Preferred Capital Securities

5,542

Total Long-term Borrowings

857,753

⁽¹⁾ Three-Month Chicago Mercantile Exchange SOFR + 0.262%.

⁽²⁾ Three-Month Chicago Mercantile Exchange SOFR.

⁽³⁾ Rate as of September 30, 2026. Calculated using non-rounded numbers.

⁽⁴⁾ Represents the junior subordinated debentures owned by the Company in trust and is reported in “Other assets” on the Company’s Consolidated Balance Sheets.

⁽⁵⁾ Trust Preferred Capital Securities and Subordinated notes qualify as Tier 2 capital for the Company for regulatory purposes.

⁽⁶⁾ Fixed-to-floating rate notes. On December 15, 2026, the interest rate changes to a floating rate of the then current Three-Month Term SOFR plus a spread of 186 bps through its maturity date or earlier redemption. The notes may be redeemed before maturity on any interest payment date occurring on or after December 15, 2026.

⁽⁷⁾ Fixed-to-floating rate notes acquired in the Sandy Spring acquisition. On March 30, 2027, the interest rate changes to a floating rate equal to the then current Three-Month Term SOFR plus a spread of 196.5 bps through its maturity date or earlier redemption. The notes may be redeemed before maturity on any interest payment date occurring on or after March 30, 2027.

⁽⁸⁾ Fixed-to-floating rate notes. On August 1, 2031, the interest rate changes to a floating rate equal to the then current Three-Month Term SOFR plus a spread of 213 bps through its maturity date or earlier redemption. The notes may be redeemed before maturity on any interest payment date occurring on or after August 1, 2031.

⁽⁹⁾ Remaining discounts of $12.0 million and $4.8 million on Trust Preferred Capital Securities and Subordinated Debt, respectively.

Total long-term borrowings consisted of the following as of December 31, 2025 (dollars in thousands):


			Spread to
	Principal		3-Month SOFR		Rate ⁽³⁾		Maturity	Investment ⁽⁴⁾
Trust Preferred Capital Securities ⁽⁵⁾
Trust Preferred Capital Note – Statutory Trust I	$	22,500	2.75	% ⁽¹⁾	6.66	%	6/17/2034	$	696
Trust Preferred Capital Note – Statutory Trust II		36,000	1.40	% ⁽¹⁾	5.31	%	6/15/2036		1,114
VFG Limited Liability Trust I Indenture		20,000	2.73	% ⁽¹⁾	6.64	%	3/18/2034		619
FNB Statutory Trust II Indenture		12,000	3.10	% ⁽¹⁾	7.01	%	6/26/2033		372
Gateway Capital Statutory Trust I		8,000	3.10	% ⁽¹⁾	7.01	%	9/17/2033		248
Gateway Capital Statutory Trust II		7,000	2.65	% ⁽¹⁾	6.56	%	6/17/2034		217
Gateway Capital Statutory Trust III		15,000	1.50	% ⁽¹⁾	5.41	%	5/30/2036		464
Gateway Capital Statutory Trust IV		25,000	1.55	% ⁽¹⁾	5.46	%	7/30/2037		774
MFC Capital Trust II		5,000	2.85	% ⁽¹⁾	6.76	%	1/23/2034		155
AMNB Statutory Trust I		20,000	1.35	% ⁽¹⁾	5.26	%	6/30/2036		619
MidCarolina Trust I		5,000	3.45	% ⁽²⁾	7.10	%	11/7/2032		155
MidCarolina Trust II		3,500	2.95	% ⁽²⁾	6.60	%	1/7/2034		109
Total Trust Preferred Capital Securities	$	179,000						$	5,542
Subordinated Debt ⁽⁵⁾
2031 Subordinated Notes ⁽⁶⁾		250,000	—	%	2.88	%	12/15/2031
2032 Subordinated Notes⁽⁷⁾		190,000	—	%	3.88	%	3/30/2032
2029 Subordinated Notes ⁽⁸⁾		168,000	2.62	% ⁽¹⁾	6.53	%	11/15/2029
Total Subordinated Debt	$	608,000
Fair Value Discount ⁽⁹⁾		(20,682)
Investment in Trust Preferred Capital Securities		5,542
Total Long-term Borrowings	$	771,860

⁽¹⁾ Three-Month Chicago Mercantile Exchange SOFR + 0.262%.

⁽²⁾ Three-Month Chicago Mercantile Exchange SOFR.

⁽³⁾ Rate as of December 31, 2025. Calculated using non-rounded numbers.

⁽⁴⁾ Represents the junior subordinated debentures owned by the Company in trust and is reported in “Other assets” on the Company’s Consolidated Balance Sheets.

⁽⁵⁾ Trust Preferred Capital Securities and Subordinated notes qualify as Tier 2 capital for the Company for regulatory purposes.

⁽⁸⁾ Fixed-to-floating rate notes acquired in the Sandy Spring acquisition. On November 15, 2024, the interest rate changed to a floating rate equal to the then current Three-Month Term SOFR plus a spread of 262 bps and a 26 bps spread adjustment through its maturity date or earlier redemption. The notes could be redeemed before maturity on any interest payment date occurring on or after November 15, 2024.

⁽⁹⁾ Remaining discounts of $12.9 million and $7.8 million on Trust Preferred Capital Securities and Subordinated Debt, respectively.

As of September 30, 2026, the scheduled maturities of long-term debt are as follows for the years ending (dollars in thousands):

Trust

Preferred

Total

Capital

Subordinated

Fair Value

Long-term

Notes

Debt

Discount ⁽¹⁾

Borrowings

For the remaining three months of 2026

—

(439)

2027

—

(1,783)

2028

—

(1,833)

2029

—

(1,882)

2030

—

(1,934)

Thereafter

184,542

690,000

(8,918)

865,624

Total long-term borrowings

184,542

690,000

(16,789)

857,753

⁽¹⁾ Includes discount on Trust Preferred Capital Securities and Subordinated Debt.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details