Atlantic Union Sees 2026 Net Interest Margin at Low End of Outlook

Atlantic Union Bankshares Corporation expects its 2026 fully taxable equivalent (FTE) net interest margin near the bottom of its forecast range after the quarterly measure fell as funding costs rose.

The company maintained its full-year outlook of about 3.90% to 3.95%, the same range it gave in July, but now expects a result at the low end. It also expects full-year FTE net interest income near the low end of about $1.32 billion to $1.33 billion.

For the quarter ended Sept. 30, FTE net interest margin was 3.88%, down from 3.94% in the second quarter. The cost of funds rose seven basis points to 2.01%. FTE net interest income nevertheless increased $3.4 million from the previous quarter to $333.1 million.

The 3.88% margin is a quarterly result, while the 3.90% to 3.95% outlook covers the full year. FTE net interest margin is a non-GAAP measure and should be considered alongside comparable GAAP figures.

Atlantic Union repurchased about 1.5 million shares for $62.5 million during the third quarter, at an average price of $41.38 per share. About $177.5 million remained available under its $250 million repurchase authorization as of Sept. 30.

President and CEO John C. Asbury said on the Oct. 20 earnings call, “We do intend on continuing the buyback through May of 2027.” He said the company would revisit that plan if interest rates moved sharply higher. The authorization does not require Atlantic Union to spend the remaining amount and can be changed or ended.

The margin update follows Atlantic Union’s third-quarter earnings, which included adjusted diluted operating earnings of $0.96 per share. Its FTE net interest income of $333.1 million is a different measure from the $328.422 million in net interest income included in those results.

The board authorized the repurchase program on May 5, 2026. It permits open-market or privately negotiated purchases and runs through May 5, 2027.