Atlantic Union Bankshares Corporation (AUB): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how Atlantic Union Bankshares Corporation is positioning itself after that massive $1.6 billion Sandy Spring deal, right? Honestly, it's a fascinating pivot; they've instantly become a major player in the Mid-Atlantic with $37.28 billion in assets as of June 2025, blending that old-school relationship banking with a serious push for digital efficiency. This isn't just a merger story; it's about how they plan to generate that projected $1.54 billion in revenue by balancing core lending with a doubled wealth business. Dig into the Canvas below to see exactly how they're structuring their partnerships, activities, and costs to make this new regional powerhouse work.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Key Partnerships

The Key Partnerships for Atlantic Union Bankshares Corporation are centered on strategic consolidation, technology enablement, and community investment, all designed to scale operations following major corporate actions.

The most significant partnership event in 2025 was the completion of the merger with Sandy Spring Bancorp, Inc., which officially closed on April 1, 2025. The aggregate transaction value at closing, based on Atlantic Union Bankshares Corporation's stock price of $31.14 on March 31, 2025, was approximately $1.3 billion, down from the originally announced definitive merger agreement value of approximately $1.6 billion. This merger established Atlantic Union Bankshares Corporation as the largest regional banking franchise headquartered in the lower Mid-Atlantic region. The integration of Sandy Spring Bank into Atlantic Union Bank was completed on April 1, 2025, with the core systems conversion for Sandy Spring scheduled for October 2025.

The scale added by this partnership is substantial, as shown in the pro forma figures based on data as of December 31, 2024, before merger-related adjustments:

The combination also enhanced specific business lines, adding significant capacity:

• Addition of 53 branch locations across the Mid-Atlantic footprint.
• Approximately doubling the wealth business by increasing Assets Under Management by more than $6.5 billion.
• Adding over $11.5 billion in loans to the portfolio.

Atlantic Union Bankshares Corporation explicitly states a strategic priority to Leverage FinTech partnerships and strategic partner equity investments as step-change accelerants for growth. The acquisition philosophy is tied to enabling the reinvestment of cost savings into technology, ensuring that merger activity complements and scales technology advancement. This focus supports the goal of creating a frictionless customer experience by integrating human interactions with digital capabilities and eliminating legacy system constraints.

The partnership with Banzai, an online financial literacy resource, is a key component of community education and financial wellness initiatives. Since partnering with Banzai, Atlantic Union Bank has helped more than 25,000 students and 384 educators become better prepared for a successful financial future. This program offers curriculum in age-appropriate exercises covering topics from credit cards to retirement. Furthermore, in 2024, the Solutions Banking team hosted 74 financial education events for employees of participating companies.

The bank relies on Third-party vendors for core banking and IT infrastructure to maintain and modernize its operations. Atlantic Union Bankshares Corporation has identified collaborations with vendors such as Microsoft, Amazon Web Services (AWS), and Cisco Systems as part of its ongoing digital and IT transformation projects. Specific historical software purchases include Microsoft Azure Cloud Services in 2019 and Cisco Webex Meetings in 2020. The operational efficiency resulting from these technology partnerships is important, as evidenced by the Q3 2025 Adjusted Operating Efficiency Ratio of 48.79%.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Key Activities

You're looking at the core engine of Atlantic Union Bankshares Corporation, the activities that actually drive the business day-to-day, especially after the big Sandy Spring acquisition. It's about making loans, getting cheap money to fund them, stitching the new bank together, and offering those extra services that round out the client relationship.

Core commercial and retail lending remains central. As of the first quarter of 2025, the balance sheet held $18.4 billion in loans held for investment (LHFI), net of deferred fees and costs. You saw a slight dip in that specific portfolio of $42.9 million in Q1 2025, but the overall picture shifted quickly. By the second quarter of 2025, total loans had jumped by $8.9 billion to reach $27.3 billion. The asset quality picture is something to watch; net charge-offs annualized for Q1 2025 were low at just 0.05% of average LHFI, but that ticked up significantly in the third quarter of 2025 to 0.56%, which translated to $38.6 million in net charge-offs for that quarter alone.

Here's a snapshot of the lending and asset quality metrics we have for the first three quarters of 2025:

Deposit gathering is the necessary counterpart to lending, aiming for that reliable, low-cost funding base. The focus here is definitely on quality over sheer volume, though volume is growing too. In Q1 2025, total deposits grew by an annualized 2.1%, driven by a $194 million increase in non-interest-bearing deposits, which then made up 22% of the total deposit base. They managed this while reducing brokered deposits by about $109 million. By Q2 2025, total deposits had climbed by $10.5 billion to reach $31.0 billion. The cost side is working well; the cost of funds dropped 18 basis points to 2.23% in Q1 2025, helping the Net Interest Margin (FTE) reach 3.45% in Q1, improving further to 3.83% by Q3 2025. Management projects year-end 2025 deposits to land between $31.0 billion and $32.0 billion.

The activity around post-acquisition integration and synergy realization is a major focus for 2025. Atlantic Union Bankshares closed the strategic acquisition of Sandy Spring Bancorp on April 1, 2025. To give you a sense of scale, Sandy Spring is now about one-third of the combined company's assets. The next big milestone is the core systems conversion for Sandy Spring, which is scheduled for October 2025. You'll see the impact of this activity in the numbers; for instance, Q3 2025 results were impacted by merger-related costs, but the bank is working toward its efficiency ratio targets.

Beyond the core lending and funding, Atlantic Union Bankshares Corporation actively engages in fee-based services through its affiliates. This includes wealth management and brokerage services. These non-bank affiliates offer:

• Investment advisory services.
• Brokerage services via Atlantic Union Financial Consultants, LLC.
• Equipment financing through Atlantic Union Equipment Finance, Inc.
• Insurance products via Union Insurance Group, LLC.

Finally, the bank is committed to digital platform modernization and process automation as a key activity to improve efficiency and client experience. The stated strategy involves:

• Creating a frictionless experience by integrating human interactions with digital capabilities.
• Eliminating low value tasks to enable more high value interactions with customers.
• Accelerating technology modernization while rationalizing operating costs.
• Emphasizing robotics, automation, and FinTech partnerships.

The Q1 2025 adjusted operating efficiency ratio was reported at 57.02%, showing the initial impact of these efficiency drives, though it moved to 64.28% in Q3 2025, which the company attributed partly to merger noise.

Finance: draft 13-week cash view by Friday.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Key Resources

You're looking at the core assets that power Atlantic Union Bankshares Corporation's strategy, the tangible and intangible stuff that lets them compete in the Mid-Atlantic. Honestly, these resources are what make their relationship-focused model work.

The foundation is the balance sheet strength, which you can see clearly in the total assets figure. As of June 2025, Atlantic Union Bankshares Corporation held total assets of $37.28 billion USD. That scale is crucial for supporting the commercial lending and deposit franchise they are building.

Geographically, the recent acquisition of Sandy Spring Bancorp in April 2025 significantly expanded the physical presence. This created a pro forma network of 183 branches, solidifying their footprint across Virginia, Maryland, and North Carolina. This physical network, combined with the expanded reach, is a key resource for local market penetration.

Here's a snapshot of that expanded physical and operational footprint:

The core deposit franchise is another massive resource. This is the low-cost funding that keeps the engine running. Atlantic Union Bankshares Corporation maintains a strong core deposit franchise, evidenced by its market share in key states. You're looking at a 9% market share in Virginia and a 6% market share in Maryland, which are the numbers management is working to build upon. This deposit base is the lifeblood, especially when you consider that net interest income made up 83.7% of the company's total revenue over the last five years.

The wealth management segment represents a growing, fee-based asset stream. Following the acquisition, assets under management increased by over $6.5 billion, effectively doubling the size of the wealth business. This diversification away from pure lending income is a strategic asset.

Finally, you can't overlook the human capital. The ability to execute complex integrations, like the Sandy Spring deal, relies on the team. Atlantic Union Bankshares Corporation relies on its highly experienced Relationship Managers and banking personnel across commercial, retail, and wealth divisions. While the employee count was reported around 2,125 in 2024, the real resource is the depth of experience that has guided the bank from a $4 billion asset community bank to its current scale.

You should check the latest internal staffing reports for current Relationship Manager headcount by Friday.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose Atlantic Union Bankshares Corporation over competitors, especially after the major integration this year. It's about scale meeting local focus.

Full-service, diversified financial solutions for commercial and retail clients

Atlantic Union Bankshares Corporation provides a full suite of financial services, moving beyond basic retail offerings to serve commercial needs comprehensively. This diversification is evident in the composition of its loan book, which is heavily weighted toward commercial lending as of mid-2025.

The loan portfolio mix as of the end of Q2 2025 showed a significant commercial concentration:

The bank's total assets stood at $37.1 billion as of September 30, 2025, showing the scale achieved through recent inorganic growth.

Premier regional bank status in the Mid-Atlantic post-merger

The acquisition of Sandy Spring Bancorp, Inc. on April 1, 2025, was a transformative event, positioning Atlantic Union Bankshares Corporation as the largest regional bank headquartered in the lower Mid-Atlantic. This merger added approximately $13 billion in assets, creating a combined entity with substantial scale across its operating footprint.

Key indicators of this premier status as of Q3 2025 include:

• Total Assets: $37.1 billion as of September 30, 2025.
• Geographic Footprint: Operations throughout Virginia, Maryland, and a growing presence in North Carolina.
• Peer Performance: Achieved an adjusted operating return on tangible common equity of 20.1% in Q3 2025.

The bank is committed to generating sustainable, profitable growth, prioritizing soundness first.

Relationship-based model with local market expertise and advocacy

Atlantic Union Bankshares Corporation emphasizes a differentiated client experience, aiming to be a responsive alternative to larger national banks. This relationship focus is supported by local market expertise across its operating states.

The commitment to the client base is reflected in its core values, which include being:

• Caring: Acting with kindness, respect, and genuine concern for others.
• Committed: Driven to help clients and company succeed, doing what is right.
• Courageous: Speaking openly and honestly.

The bank is actively investing in its physical presence to support this model, planning to open 10 new branches in North Carolina markets like Raleigh and Wilmington over the next three years, alongside 49 off-site ATMs.

Comprehensive wealth management, equipment finance, and insurance products

The offering extends beyond traditional lending and deposits to include specialized financial services through its affiliates. This comprehensive approach is a key part of serving both commercial and retail clients holistically.

The revenue mix in Q3 2025 shows the contribution from these non-lending activities:

The growth in noninterest income helps diversify the top line, which was reported at $375.38 million in revenue for Q3 2025.

Commitment to a frictionless experience by integrating human and digital channels

A core part of the post-merger strategy involves integrating the capabilities gained from the Sandy Spring acquisition to enhance client experience. This means blending the relationship focus with efficient digital tools.

Tangible results of operational efficiency and integration include:

• Adjusted Operating Efficiency Ratio: Improved to 48.8% in Q3 2025.
• Integration Success: Successfully completed the integration of Sandy Spring, expanding capabilities in interest rate hedging and treasury management.
• Cost Management: Noninterest expense decreased by $41.3 million from the prior quarter, largely due to a decrease in merger-related costs.

The bank is focused on delivering organic growth, directing consumer efforts to market segments and delivery channels with the strongest value proposition. Finance: draft 13-week cash view by Friday.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Customer Relationships

You're managing a regional bank that just completed a major merger, so keeping customers engaged and feeling valued is the absolute top priority right now. Atlantic Union Bankshares Corporation focuses on a relationship-centric approach across its expanded footprint spanning Virginia, Maryland, and North Carolina.

Dedicated Relationship Managers for small to mid-sized businesses

Atlantic Union Bank provides every business, big or small, with a customized banking experience through its Relationship Managers. This high-touch service is designed to help each business owner start, grow, protect, and manage their financial needs. This focus supports the overall balance sheet, where Loans Held for Investment, net of deferred fees and costs, were reported at approximately $18.234 billion in the first quarter of 2025, following the American National acquisition. The pro forma loan portfolio, including the Sandy Spring integration as of March 31, 2025, stood at $29.9 billion.

Personalized banking solutions for individual consumers

For individual consumers, the relationship model is about being the hometown bank everyone depends on, which is supported by a significant physical presence. Following the April 1, 2025 merger with Sandy Spring, Atlantic Union Bankshares Corporation has a pro forma network of 183 Branches across its operating MSAs (Metropolitan Statistical Areas). Total deposits at March 31, 2025, were $20.5 billion, with pro forma deposits reaching $31.7 billion. This scale allows for localized service delivery while offering the product depth of a larger regional player.

High-touch advisory services for high net-worth wealth clients

The Wealth Management division is dedicated to helping clients reach long-term financial goals through personalized strategies. Services offered include asset management, wealth banking, and trust and estate services, tailored to meet unique needs. While specific Assets Under Management (AUM) for late 2025 aren't public, the bank's overall scale-with Total Assets reaching $37.28 Billion USD as of June 2025-provides the capital base to support sophisticated advisory services for high-net-worth individuals and institutional clients like nonprofits and foundations.

Community-focused engagement and corporate social responsibility (CSR) initiatives

Atlantic Union Bankshares Corporation emphasizes making a positive impact in the communities it serves, guided by values like Caring, Courageous, and Committed. This commitment is demonstrated through tangible actions by its teammates. In 2024, teammates contributed 12,942 volunteer hours to causes they are passionate about. The bank's footprint now covers Virginia, Maryland, and North Carolina, requiring dedication to each community's unique needs.

• Support inclusion, diversity, and equity in all operations.
• Focus on being a responsible corporation making a positive impact.
• Offer specialized services through affiliates like Union Insurance Group, LLC.

Self-service digital tools to complement human interaction

To balance the high-touch service, Atlantic Union Bankshares Corporation is investing in digital capabilities to ensure seamless customer journeys. The company noted an expense increase in Q1 2025 primarily driven by an upgrade to the consumer online banking system. Industry-wide, a significant majority of consumers-77 percent-prefer to manage their bank accounts through a mobile app or computer, with millennials leading digital preference at 80 percent. Atlantic Union Bankshares Corporation must ensure its digital tools keep pace with this expectation while maintaining the relationship advantage.

Here's a quick look at the scale of the combined franchise as of early 2025:

The bank's Adjusted Operating Return on Tangible Common Equity (ROTCE) for Q3 2025 was 20.09%, showing that the relationship strategy is translating into strong core performance.

Finance: draft 13-week cash view by Friday.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Channels

You're looking at how Atlantic Union Bankshares Corporation gets its value proposition into the hands of its customers across its footprint. The channel strategy here is a mix of traditional brick-and-mortar presence, robust digital tools, and specialized, direct-touch services from its affiliates.

The core physical network remains significant, though it has seen recent expansion and integration. As of December 31, 2024, Atlantic Union Bank operated 129 branches across Virginia, Maryland, and North Carolina. Following the completion of the Sandy Spring Bank integration around October 14, 2025, the network footprint has expanded, with recent announcements also noting a presence in Washington D.C. The bank has a stated plan to add 10 new branches in North Carolina over the next three years, signaling continued investment in physical reach in key growth markets.

For day-to-day banking, self-service is key. Atlantic Union Bankshares Corporation heavily relies on its digital channels. These include online banking portals and mobile applications designed for self-service transactions, which is standard for a bank of this size in late 2025. The ATM network provides essential cash access points, reported at approximately 150 machines as of December 2024.

Here's a quick snapshot of the primary access points:

• Geographic Reach: Virginia, Maryland, North Carolina, and Washington D.C.
• Physical Locations: 129 branches as of December 31, 2024.
• Cash Access: Approximately 150 ATMs as of late 2024.
• Digital Access: Online and mobile banking platforms for self-service.

The specialized non-bank affiliates act as distinct, targeted channels for specific financial needs, often requiring a direct sales approach. These entities allow Atlantic Union Bankshares Corporation to cross-sell complex products beyond standard retail and commercial deposits and loans. The direct sales force is crucial here, especially for higher-value commercial relationships and wealth management clients.

The specialized affiliates serve as dedicated channels for non-core banking services:

The direct sales force is the channel for relationship-driven business, focusing on commercial lending and wealth management. This team is tasked with originating the more complex revenue streams, such as those supported by the asset-based lending efforts, which can involve loan commitments from $5 million to $30 million. Honestly, for large commercial deals, you won't close that without a dedicated relationship manager on the ground.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Customer Segments

Atlantic Union Bankshares Corporation serves a diverse set of clients across its expanded Mid-Atlantic footprint.

Wholesale Banking: Commercial Real Estate (CRE) and Commercial & Industrial (C&I) customers

The commercial lending segment is a core focus, with Commercial & Industrial (C&I) loans representing approximately 35% of total Loans Held for Investment (LHFI) as of the third quarter of 2025. Atlantic Union Bankshares Corporation executed a strategic sale of approximately $2.0 billion of Commercial Real Estate (CRE) loans at the end of the second quarter of 2025. Total Loans Held for Investment (LHFI) stood at $27.3 billion at June 30, 2025, with projections for year-end 2025 in the range of $28.0-29.0 billion. The allowance for credit losses (ALCL) as a percentage of total LHFI was 1.13% at March 31, 2025. The company reported nonperforming assets (NPAs) as a percentage of total LHFI at 0.49% as of September 30, 2025, which included nonaccrual loans of $131.2 million.

Consumer Banking: Individual consumers seeking personal loans and deposits

The consumer base is supported by a significantly expanded deposit base following the April 2025 acquisition of Sandy Spring Bancorp, Inc. Total deposits reached $31.0 billion at June 30, 2025, marking an increase of $11.0 billion or 54.9% from June 30, 2024. Projections for total deposits by the end of 2025 were set between $31.0-32.0 billion. At one point in 2025, noninterest-bearing demand deposits totaled $7.104 billion, while interest-bearing deposits were around $23.6 billion in the third quarter of 2025. The company closed five branches as part of streamlining operations after the merger.

Wealth Management Clients: High net-worth individuals and families

Atlantic Union Bankshares Corporation serves this segment through its non-bank financial services affiliate, Atlantic Union Financial Consultants, LLC, which provides brokerage services. The company also has Atlantic Union Equipment Finance, Inc., for equipment financing.

Small to Mid-Sized Businesses in the Mid-Atlantic region

This segment is served across the bank's operational footprint, which includes Virginia, Maryland, and North Carolina. The C&I loan concentration of approximately 35% of total loans is a direct indicator of the focus on this business customer base. The bank views its core deposit franchise as entrenched and durable, with a 9% market share in Virginia and a 6% market share in Maryland.

Institutional investors and shareholders

The capital structure and performance metrics are key for this segment. Total assets for Atlantic Union Bankshares Corporation stood at $37.1 billion as of the third quarter of 2025. The Common Equity Tier 1 (CET1) ratio was reported at 9.92% at September 30, 2025. For the third quarter of 2025, the bank reported adjusted operating earnings available to common shareholders of $119.7 million, or $0.84 per common share. The company offered a dividend of $0.34 per common share in the first quarter of 2025.

Here is a look at the scale of the balance sheet supporting these customer segments as of mid-2025:

The geographic reach directly defines the primary market for all customer segments:

• Operates branches and ATMs throughout Virginia.
• Expanded presence in Maryland via the April 2025 acquisition.
• Growing presence in North Carolina.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Cost Structure

You're looking at the cost side of Atlantic Union Bankshares Corporation's (AUB) business model as of late 2025, right after they wrapped up the major Sandy Spring integration. It's a cost structure heavily influenced by that transformation, so you'll see some big, lumpy items mixed with the day-to-day running costs of a larger regional bank.

The most immediate, non-recurring cost you see is the impact from the merger activity. For the third quarter of 2025, Atlantic Union Bankshares Corporation reported significant merger-related costs, which totaled $26.9 million net of tax. That figure really shows the expense of combining systems, closing overlapping branches, and handling severance packages. Over the first nine months of 2025, those net-of-tax merger costs hit $94.8 million, reflecting the heavy lifting done post-acquisition.

Personnel expenses are definitely a major component, given the larger employee base post-merger. While we don't have the exact personnel line item broken out separately here, we can look at the overall operating expense guidance. Management noted that the adjusted noninterest expense run rate heading into 2026 should stabilize around $183-$188 million per quarter. This figure bundles compensation, benefits, and technology upgrades, so it's a good proxy for your core operating costs, excluding interest expense.

Interest expense, the cost of funding the balance sheet, is another critical driver. As of September 30, 2025, total deposits stood at $30.7 billion. The cost of those deposits fell slightly quarter-over-quarter to 2.18% in Q3 2025. Overall, the cost of funds for Atlantic Union Bankshares Corporation was 2.17% in the third quarter of 2025. Keeping funding costs low is key to margin defense, especially as purchase accounting accretion income naturally declines.

Technology and systems costs are embedded within those merger expenses, specifically mentioned as including system conversion costs related to the Sandy Spring acquisition. You know these banks spend heavily to get everyone onto one core platform; that's where you see those large, one-time technology charges hit the P&L.

The overall picture of cost control is reflected in the efficiency ratio. For Q3 2025, Atlantic Union Bankshares Corporation achieved an Adjusted Operating Efficiency Ratio of 48.79%. That number tells you how much it costs to generate a dollar of revenue, and it's a key metric showing the scale benefits they expect from the Sandy Spring deal are starting to materialize. The company is targeting a mid-40s efficiency ratio going forward, which means they are aiming to get even leaner.

Here's a quick look at those key operational cost and efficiency metrics from the third quarter of 2025:

You can see the main cost drivers break down like this:

• Integration & One-Time Costs: Primarily the $26.9 million net of tax in Q3 2025 from the Sandy Spring merger.
• Personnel & Overhead: Reflected in the projected quarterly run rate of $183-$188 million for adjusted noninterest expense.
• Funding Costs: Interest paid on the $30.7 billion in deposits, running at a 2.17% cost of funds.
• Technology Spend: Included in merger costs, covering system conversion and IT integration efforts.

Finance: draft 13-week cash view by Friday.

Atlantic Union Bankshares Corporation (AUB) - Canvas Business Model: Revenue Streams

You're looking at the core ways Atlantic Union Bankshares Corporation brings in money as of late 2025, especially following the big Sandy Spring Bancorp acquisition. The revenue picture is heavily weighted toward traditional banking activities, but the scale has definitely shifted.

The primary driver remains the spread between what Atlantic Union Bankshares Corporation earns on its assets and what it pays out on its liabilities. Net Interest Income (NII) is the bedrock here. For the first quarter of 2025, the reported NII from loans and investments was $184.2 million. This figure showed a slight sequential increase from the fourth quarter of 2024.

To get a sense of the full-year picture, analysts project the full-year 2025 consensus revenue for Atlantic Union Bankshares Corporation to hit approximately $1.54 billion. The Trailing Twelve Months (TTM) revenue as of September 2025 was reported at $1.21 billion, showing significant growth. For context, the Q3 2025 revenue was reported at $375.4 million.

Historically, over the last five years, Net Interest Income has made up about 83.7% of Atlantic Union Bankshares Corporation's total revenue, which tells you they barely rely on non-interest income for their overall growth. Still, that non-interest piece is important for diversification.

Here's a breakdown of the key revenue components based on the latest available segment data from Q1 2025 and other recent figures:

Non-interest income, which covers service charges and fees, is generated across the operating segments. For the first quarter of 2025, you can see the contribution from the two main banking segments:

• Consumer Banking Segment Noninterest Income: $14.63 million for the three months ended March 31, 2025.
• Wholesale Banking Segment Noninterest Income: $11.80 million for the three months ended March 31, 2025.

Atlantic Union Bankshares Corporation also generates revenue through wealth management, brokerage, and trust services, which fall under the broader non-interest income category. Furthermore, the business model includes revenue from non-bank affiliates offering services like equipment financing and insurance. The company is a full-service regional bank offering these comprehensive solutions for individuals and businesses.

If you're mapping out the canvas, remember that the Q1 2025 NII of $184.2 million was slightly up from the prior quarter, but the Net Interest Margin (NIM) was reported at 3.38% then, though it improved to 3.45% later in Q1. By Q3 2025, the NIM had reached 3.8%. Finance: draft 13-week cash view by Friday.