Atlantic Union Bankshares Corp. (NYSE:AUB) Reports Mixed Q3 2025 Results

Atlantic Union Bankshares Corp. (NYSE:AUB) reported its financial results for the third quarter of 2025, delivering adjusted earnings that closely aligned with analyst forecasts while revenue fell short of market expectations. The market's initial reaction has been muted, reflecting a period of digestion for the mixed results amidst a significant ongoing integration.

Earnings and Revenue Versus Estimates

The bank's performance against Wall Street projections presents a nuanced picture. On the profitability front, Atlantic Union demonstrated strength, but its top-line revenue indicated some pressure.

• Adjusted EPS: $0.84 per share, slightly below the analyst estimate of $0.8471.
• Revenue: $375.38 million, missing the consensus estimate of $382.87 million.

The minor EPS beat on an adjusted basis was supported by several factors, including a reduction in merger-related costs compared to the prior quarter and disciplined expense management. The revenue shortfall was primarily driven by a decrease in net interest income, which declined to $319.2 million from $321.4 million in the second quarter. This was partly offset by growth in adjusted operating noninterest income, which rose to $56.6 million.

Market Reaction and Price Action

Following the earnings release, the stock has shown signs of weakness in the near term, likely reflecting investor focus on the revenue miss and concerns over credit quality. The stock's performance over recent weeks indicates a cautious stance from the market.

• Last Week Performance: -2.7%
• Last Two Weeks Performance: -5.8%
• Last Month Performance: -4.6%

This negative trend suggests that investors are weighing the company's solid adjusted profitability against the headwinds in revenue growth and a notable increase in net charge-offs during the quarter.

Key Takeaways from the Quarterly Report

Beyond the headline earnings figures, the quarterly report highlighted several critical developments for the growing regional bank.

• Credit Quality and Provisioning: The company saw a significant increase in its net charge-off ratio, which rose to 0.56% of average loans from 0.01% in the previous quarter. This was primarily due to the charge-off of two commercial and industrial loans. Consequently, the provision for credit losses was $16.2 million, substantially higher than the $2.6 million recorded in the third quarter of 2024, excluding acquisition-related impacts.
• Balance Sheet and Capital: Total assets stood at $37.1 billion, largely stable from the prior quarter but up 49.5% from the previous year, driven significantly by the acquisition of Sandy Spring Bancorp. The company's capital ratios remained robust, with a Common Equity Tier 1 ratio of 9.92%.
• Integration Progress: Management emphasized the ongoing integration of Sandy Spring, noting that merger-related costs decreased substantially to $34.8 million from $78.9 million in the second quarter. CEO John Asbury stated the company believes it is "on a path to deliver on the expectations" related to the acquisition.

Looking Ahead

The press release did not provide a specific quantitative financial outlook for the coming quarters. Analysts, however, have established estimates for the company's future performance. For the full year 2025, the consensus sales estimate stands at $1.38 billion. Looking to the next quarter, analysts are projecting revenue of $387.71 million and earnings per share of $0.8572. Investors will be keenly listening to the company's earnings call for any commentary that aligns with or diverges from these expectations, particularly regarding the trajectory of net interest income and the normalization of credit costs.

For a detailed breakdown of historical earnings and future analyst estimates for Atlantic Union Bankshares Corp., you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions involve risk, and readers should conduct their own research before making any financial decisions.