Atlantic Union Bankshares Corp (NYSE: AUB)

Atlantic Union Bankshares Corp, also known as AUB, is a financial holding company and bank holding company that operates primarily in the banking industry. Headquartered in Richmond, Virginia, the company offers a wide range of financial services and products to commercial and retail clients through its wholly-owned subsidiary bank, Atlantic Union Bank.

Atlantic Union Bankshares Corp operates through two reportable operating segments: Wholesale Banking and Consumer Banking. The Wholesale Banking segment provides loan, leasing, and deposit services, as well as treasury management, SBA lending, and capital market services to wholesale customers primarily in Virginia, Maryland, North Carolina, and South Carolina. The Consumer Banking segment provides loan and deposit services to consumers and small businesses throughout Virginia, Maryland, and North Carolina. The company generates revenue through its lending activities, including commercial, industrial, residential mortgage, and consumer loans, as well as through its deposit products and treasury services. Its primary source of funds for lending and investment activities is its deposit products, which are primarily made to customers based in Virginia and portions of Maryland and North Carolina.

Atlantic Union Bankshares Corp has a strong competitive position in its market, with a deposit market share in Virginia of 5.3% as of June 30, 2023, making it the largest regional bank headquartered in Virginia at that time. The company competes with large national and regional financial institutions, credit unions, other independent community banks, consumer finance companies, mortgage companies, loan production offices, mutual funds, life insurance companies, and fintech companies.

The company's human capital is its most important asset. Atlantic Union Bankshares Corp is committed to investing in the growth and development of its teammates, offering a range of benefits and training programs to support its teammates' professional development and well-being. The company has also established a Diversity, Equity, Inclusion, and Belonging Council to manage its efforts to create a more diverse, equitable, and inclusive workplace.

Atlantic Union Bankshares Corp is extensively regulated under both federal and state laws, subject to supervision, regulation, and examination by the Federal Reserve and the Virginia State Corporation Commission. The company is also subject to the disclosure and regulatory requirements of the Securities Act and the Exchange Act, as administered by the Securities and Exchange Commission.

The company's source of strength is its ability to act as a source of financial and managerial strength to its subsidiary bank. Under this requirement, the company is expected to commit resources to support the bank, including times when the company may not be in a financial position to provide such resources. Any capital loans by the company to the bank are subordinate in right of payment to depositors and to certain other indebtedness of the bank.

In addition, the company is subject to various capital requirements, including a minimum leverage ratio and a minimum ratio of qualifying capital to risk-weighted assets. These requirements are designed to ensure that the company and its subsidiary bank maintain a strong capital position to absorb potential losses and support their operations. The company is also subject to deposit insurance assessments to maintain the Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Corporation (FDIC), with a basic limit on FDIC deposit insurance coverage of $250,000 per depositor.

The company's transactions with affiliates are limited by Sections 23A and 23B of the Federal Reserve Act of 1913, as amended and Regulation W. Loan transactions with an affiliate generally must be collateralized, and certain transactions between the company and its affiliates must be on terms and conditions that are substantially the same or at least as favorable to the company as those prevailing for comparable nonaffiliated transactions.