Atlantic Union Bankshares’ Expansion Plans in North Carolina
Atlantic Union Bankshares, a Richmond-based company, has announced its intention to establish 10 new branches in North Carolina over the next three years, thereby intensifying its growth strategy in the Carolinas. This information was disclosed on a conference call with analysts by the Executive Vice President, David Ring.
Why North Carolina?
According to Ring, North Carolina’s active market makes it an attractive location for expansion. He noted the state’s vibrant economic activity, with numerous manufacturing and distribution facilities that can be spotted on any highway. To tap into this promising market, Atlantic Union has recruited a significant number of talented individuals.
North Carolina’s Rising Popularity Among Banks
Atlantic Union is not the only bank seeking to capitalize on the economic opportunities in the Carolinas. Other banking institutions, such as Huntington Bancshares in Columbus, Ohio, and Pittsburgh-based PNC Financial Services Group and F.N.B. Corp, have also invested heavily in the region. This trend underscores the attractive economic landscape of the Carolinas and their potential for future growth.
Atlantic Union’s Growth Strategy
Atlantic Union, with assets totaling $37.1 billion, currently operates in Maryland, the District of Columbia, Virginia, and the Carolinas. However, the company’s CEO, John Asbury, describes the Carolinas as “arguably the best of the growth markets where we have a physical presence.”
Atlantic Union currently operates 11 branches in North Carolina. As part of its expansion strategy, the bank plans to open seven new locations in Raleigh and three in Wilmington, in addition to installing 49 off-site automatic teller machines.
Mergers and Acquisitions on Hold
While the bank has been active in mergers and acquisitions, with its recent $1.3 billion acquisition of Sandy Spring Bank in Maryland, Asbury indicated that the company will be shifting its focus. Instead of exploring further acquisitions, Atlantic Union will concentrate on demonstrating the value of its recent merger.
“We don’t need to do any more mergers any time soon,” Asbury stated. “I think we will be an organic story, certainly through 2026.”
Atlantic Union’s Financial Performance
Atlantic Union recently reported a third-quarter profit of $92.1 million, or $89.3 million after a preferred-stock dividend payout. Its second-quarter earnings of $16.8 million were impacted by costs connected to the Sandy Spring merger, which closed on April 1, 2021.
Asbury expressed optimism about the bank’s credit trends, noting that the overall credit trends look good. “You can see that in our numbers. … Past dues down, criticized down. We feel pretty good,” he said.
Chief Credit Officer Doug Woolley also echoed this sentiment, stating, “We’re paying attention to what’s going on in and around D.C., with the shutdown. We just don’t see any weakness anywhere.”
Looking Forward
With the completion of the Sandy Spring integration and an increase in loan pipelines, Atlantic Union is well-positioned to deliver sustainable growth, as stated by Asbury. Stephen Scouten of Piper Sandler, who covers Atlantic Union, also shared this optimism, suggesting that any concerns about third-quarter charge-offs should not be a lingering concern.
Atlantic Union’s expansion in North Carolina is, therefore, a strategic move aimed at capitalizing on the state’s vibrant economic landscape. As the bank continues to focus on organic growth, it is clear that the successful integration of Sandy Spring Bank is a significant step in this direction.
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