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Jun 30
Atlantic Union Q2 2025 Earnings Report
Atlantic Union Bankshares reported lower GAAP earnings but strong adjusted operating performance in Q2 2025, driven by the Sandy Spring acquisition.
Key Takeaways
Atlantic Union Bankshares posted GAAP net income of $16.8 million and adjusted operating earnings of $135.1 million in Q2 2025. Net interest margin improved due to loan accretion income from the Sandy Spring acquisition, while efficiency ratio improved on an adjusted basis.
GAAP EPS was $0.12, while adjusted EPS reached $0.95.
Net interest margin rose to 3.78% (3.83% FTE).
Adjusted operating efficiency ratio improved to 48.34%.
Total assets increased to $37.3 billion following the Sandy Spring acquisition.
Atlantic Union
Atlantic Union
Atlantic Union Revenue by Segment
Revenue by Segment
Mortgage Banking Income Revenue
CapyFin.comService Charges on Deposit Accounts Revenue
CapyFin.comFiduciary & Asset Mgmt Fees Revenue
CapyFin.comLoan-Related Interest Rate Swap Fees Revenue
CapyFin.comGains on Securities Revenue
CapyFin.comBank-Owned Life Insurance Revenue
CapyFin.com Forward Guidance
Management expects continued benefits from the Sandy Spring acquisition, with focus on integration, stable net interest margin, and cost synergies.
Positive Outlook
- Sandy Spring acquisition expected to drive revenue and efficiency synergies.
- Net interest margin expected to remain stable with accretion income.
- Strong loan growth trends supported by commercial lending.
- Continued focus on expense management and efficiency gains.
- Solid capital position supports organic and acquisitive growth.
Challenges Ahead
- Merger-related costs will continue to impact GAAP earnings in the near term.
- Credit quality metrics may fluctuate due to acquired PCD loans.
- Integration costs could remain elevated for the next few quarters.
- Potential economic slowdown could pressure loan demand.
- Interest rate volatility may impact funding costs and NIM.