Atlantic Union Bankshares Surpasses Expectations in Q3 2026 with Strong Loan Growth and Credit Quality
The third-quarter earnings call for Atlantic Union Bankshares revealed a solid performance by the company, driven by healthy loan growth, strong credit quality, and a modest increase in adjusted operating earnings. Despite a more challenging funding environment, the bank's disciplined execution and sound underlying performance enabled it to deliver a positive result.
According to John Asbury, President and CEO of Atlantic Union Bankshares, "This was a solid quarter with healthy loan growth, strong credit quality, and a modest increase in adjusted operating earnings. Higher net interest income and lower credit costs supported the result while funding costs increased and fee income moderated."
The company's loan growth was highlighted as one of the key highlights of the quarter, with Asbury stating that "Our third-quarter results reflect disciplined execution and sound underlying performance despite a more challenging funding environment." He also noted that the bank had deployed capital deliberately to strengthen the franchise and support long-term growth.
Atlantic Union Bankshares' expansion into North Carolina is also underway, with one branch already open in the Raleigh region and two more scheduled to open by early November. The company plans to add seven new branches across the region, bringing the total to eight when complete. Three additional branches are expected to be added in the Wilmington area next year.
The bank's commercial banking teams are also being expanded in North Carolina, with a focus on building full-service relationships and generating attractive risk-adjusted returns over time. Asbury stated that "We believe our model translates well to these markets," citing the combination of local market knowledge, local decision-making, and responsiveness with the capabilities and balance sheet strength of a larger regional bank.
Despite an uncertain operating environment shaped by geopolitical tensions, energy price volatility, persistent inflation, and an evolving interest rate outlook, Atlantic Union Bankshares remains confident in its ability to deliver profitable growth. Asbury noted that within its customer base, activity remains constructive and loan pipelines are healthy, although customers are becoming more selective due to elevated financing and project costs.
The company's financial results for the third quarter of 2026 were reviewed by Alex Dodd, Executive Vice President and CFO, who highlighted higher net interest income and lower credit costs as key contributors to the bank's performance. Funding costs increased and fee income moderated during the period, but overall adjusted operating earnings remained modestly higher.
