Atlantic Union Bankshares beats earnings estimates as acquisition integration concludes

Atlantic Union Bankshares (NYSE:AUB) reported a strong start to 2026, delivering quarterly earnings that exceeded analyst expectations as the company finalized the integration of its acquisition of Sandy Spring Bancorp.

While a shifting interest rate environment put pressure on net interest income sequentially, the bank’s significant year-over-year growth highlights its expanded footprint in the Mid-Atlantic region.

For the first quarter ended March 31, 2026, the Glen Allen, Virginia-based bank reported net income available to common shareholders of $119.2 million, or $0.84 per diluted share.

This marks a sharp increase from the $0.52 per share reported in the same period a year ago.

On an adjusted operating basis, earnings per share stood at $0.89, edging out the Wall Street consensus estimate of $0.88.

The bank’s top-line performance reflected the scale of its recent merger, with revenue net of interest expense rising 69.1% year-over-year to $371.7 million.

However, on a sequential basis, net interest income fell to $312.4 million from $330.2 million in the fourth quarter of 2025.

This contraction was attributed to higher deposit costs and a declining rate environment, which pressured the net interest margin to 3.8%.

Meanwhile, credit quality remained a notable strength during the period.

The provision for credit losses significantly decreased to $2.74 million, down from the $17.1 million reported in the prior year and well below analyst projections of $11.4 million.