Core Points - Atlantic Union Bankshares Corporation will host an investor day on December 10, 2025, at the New York Stock Exchange, focusing on the company's strategic priorities and future plans [1][2] - The event will feature presentations from key executives, including President and CEO John Asbury, CFO Rob Gorman, and President and COO Maria Tedesco [1] - Attendees can participate either in person or virtually, with pre-registration required for in-person attendance [2] Company Overview - Atlantic Union Bankshares Corporation is headquartered in Richmond, Virginia, and operates as the holding company for Atlantic Union Bank [3] - The bank has branches and ATMs in Virginia, Maryland, North Carolina, and Washington D.C., and offers various non-bank financial services through its affiliates [3]

Market Performance - On November 7, 2025, the Australian stock market experienced a decline, with all major indices ending in negative territory. The S&P/ASX 200 fell to 8,769.70 from 8,828.30, a decrease of 0.7% [1][6] - The S&P/ASX 20 also dropped to 4,863.80 from 4,900.00, marking a 0.7% decline [1][6] - Broader indices such as the S&P/ASX 50 and S&P/ASX 100 saw declines of 0.6%, closing at 8,451.90 and 7,308.00 respectively [6] Futures Market - The S&P/ASX 200 futures for December 2025 declined by 0.62%, trading at 8,788.5, down 54.5 points [2][6] Top Gainers - AUB Group Limited (AUB) led the gainers, increasing by $2.30 or 6.285% to close at $38.890 [4][6] - ASX Limited (ASX) rose by $2.17, representing a 3.773% increase to $59.680 [4][6] - News Corporation (NWS) gained $1.36 or 3.022%, finishing at $46.350 [4][6] - GPT Group (GPT) added $0.16, lifting its share price by 2.996% to $5.500 [4][6] - Lynas Rare Earths Limited (LYC) rounded out the top five performers, up $0.38 or 2.891% to $13.520 [4][6] Top Decliners - Block, Inc. (XYZ) recorded the steepest decline, tumbling $17.79 or 15.756% to $95.120 [5][6] - Zip Co Limited (ZIP) dropped $0.24, a 6.649% decline to $3.370 [5][6] - Qantas Airways Limited (QAN) lost $0.67, down 6.582% to $9.510 [5][6] - Domino's Pizza Enterprises Limited (DMP) slipped $1.17 or 5.839% to close at $18.870 [5][6] - Macquarie Group Limited (MQG) fell $12.48, a 5.745% decrease to $204.770 [5][6]

Merger and Acquisition - The merger with Sandy Spring Bancorp, Inc. was completed on April 1, 2025, with successful integration of operations by October 14, 2025, leading to increased average balances and net interest income [209]. - The integration of Sandy Spring is expected to yield strategic gains and cost savings, although realization of these benefits is subject to various risks [194]. - The company recorded preliminary goodwill of $512.3 million related to the Sandy Spring acquisition as of September 30, 2025 [219]. - The company paid down $116.1 million in brokered deposits in Q3 2025, with total brokered deposits decreasing to $1.0 billion from $1.2 billion at December 31, 2024 [319]. - The company recorded $89.5 million of Day 1 initial provision expense on non-PCD loans acquired from Sandy Spring in Q2 2025 [312]. - Preliminary goodwill associated with the Sandy Spring acquisition totaled $512.3 million at September 30, 2025 [257]. Financial Performance - Net income available to common shareholders for Q3 2025 was $89.2 million, with basic and diluted EPS of $0.63, compared to $73.4 million and $0.82 in Q3 2024 [218]. - For the first nine months of 2025, net income available to common shareholders was $152.8 million, with basic and diluted EPS of $1.23 and $1.22, respectively, compared to $142.4 million and $1.68 in the same period of 2024 [218]. - Adjusted operating earnings for the first nine months of 2025 were $306.4 million, with adjusted diluted operating EPS of $2.46, compared to $191.4 million and $2.25 in the same period of 2024 [218]. - Adjusted operating earnings (non-GAAP) for Q3 2025 were $122,693,000, up from $77,497,000 in Q3 2024, reflecting enhanced operational performance [333]. - Total revenue (FTE) (non-GAAP) for the first nine months of 2025 reached $999,720,000, up from $610,377,000 in the same period of 2024 [329]. Assets and Deposits - Total assets increased to $37.1 billion as of September 30, 2025, up $12.5 billion from December 31, 2024, primarily due to the Sandy Spring acquisition [219]. - Total deposits reached $30.7 billion at September 30, 2025, an increase of $10.3 billion from December 31, 2024, with quarterly average deposits up 53.8% year-over-year [219]. - Total liabilities were $32.2 billion, an increase of $10.7 billion from December 31, 2024, primarily due to growth in deposits from the Sandy Spring acquisition [262]. - Stockholders' equity increased to $4.9 billion, up $1.8 billion from December 31, 2024, mainly due to the issuance of common stock related to the Sandy Spring acquisition [265]. Interest Income and Margin - Net interest income for Q3 2025 was $319.2 million, an increase of $136.3 million from Q3 2024, driven by a $11.6 billion increase in average interest-earning assets [220]. - The net interest margin increased by 46 basis points to 3.77% in Q3 2025 from 3.31% in Q3 2024, attributed to lower cost of funds and higher net accretion from the Sandy Spring acquisition [222]. - For the first nine months of 2025, net interest income was $824.7 million, an increase of $309.5 million from the same period in 2024 [223]. - The net interest margin increased by 40 basis points to 3.68% for the first nine months of 2025 compared to the same period in 2024 [224]. - The average yield on interest-earning assets increased by 11 basis points to 5.89% for the first nine months of 2025 [223]. Noninterest Income and Expense - Noninterest income rose by $78.79 million or 94.2% to $162.44 million for the nine months ended September 30, 2025, compared to $83.65 million in 2024, primarily due to the Sandy Spring acquisition [238]. - Noninterest expense rose by $115.9 million or 94.5% to $238.4 million for the quarter ended September 30, 2025, compared to $122.6 million for the same quarter in 2024, mainly due to a $38.9 million increase in salaries and benefits and a $33.5 million increase in merger-related costs [240]. - Total noninterest expense for the nine months ended September 30, 2025, increased by $274.5 million or 72.6% to $652.3 million, primarily driven by a $93.8 million increase in salaries and benefits and an $85.6 million increase in merger-related costs [243]. Credit Quality and Allowance for Losses - The allowance for credit losses (ACL) rose to $320.0 million as of September 30, 2025, an increase of $126.3 million from December 31, 2024, primarily due to the Sandy Spring acquisition [302]. - Nonaccrual LHFI increased to $131.2 million at September 30, 2025, up from $58.0 million at December 31, 2024, with NPAs as a percentage of LHFI rising to 0.49% from 0.32% [301]. - The provision for credit losses in Q3 2025 was $16.2 million, up $13.6 million from $2.6 million in Q3 2024, with total provisions for the nine months ended September 30, 2025, reaching $139.6 million, an increase of $107.0 million from $32.6 million in the prior year [311]. Economic Environment and Strategy - The economic environment is being closely monitored, with factors such as inflation, unemployment rates, and market interest rates impacting financial results [210]. - The company emphasizes the importance of liquidity and capital resources in light of potential economic changes and market conditions [192]. - The company is focused on managing growth and implementing its growth strategy amid competitive pressures from fintech companies [194]. - The company is committed to monitoring technological risks and cyber threats as part of its operational strategy [194].

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Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings available to common shareholders were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [16][17] - The total allowance for credit losses decreased to $320 million, down approximately $22.4 million from the second quarter, with net charge-offs increasing to $38.6 million or 56 basis points annualized [17][18] - Tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the second quarter, while the reported net interest margin remained steady at 3.83% [20][21] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. The company expects loan balances to end the year between $27.7 billion and $28 billion [8][27] - Non-interest income decreased to $51.8 million, primarily due to a $15.7 million preliminary pretax gain on the CRE loan sale in the prior quarter compared to a $4.8 million pretax loss in the current quarter [22] - Adjusted operating non-interest income increased to $56.6 million, driven by a $4.2 million increase in loan-related interest rate swap fees [23] Market Data and Key Metrics Changes - The company maintains a well-diversified portfolio, with approximately 23% of total loans in the Washington metro area and the remaining 77% across a broader footprint [12] - The unemployment rate in the greater Washington, D.C. region stood at 3.6%, well below the national average of 4.3% [14] - The company is monitoring the impact of government employment reductions and the government shutdown, but believes the economic data indicates resilience in the market [11][14] Company Strategy and Development Direction - The integration of the Sandy Spring acquisition is progressing smoothly, with expectations to achieve cost-savings targets and enhanced earnings power by 2026 [7][15] - The company aims to deliver sustainable growth and top-tier financial performance, leveraging strategic advantages gained from the acquisition and continued organic growth opportunities [7][15] - The focus remains on disciplined execution and the integration of Sandy Spring, with plans to capitalize on expanded markets and pursue new growth opportunities in North Carolina [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, reaffirming the forecast for the full year 2025 net charge-off ratio to be between 15 and 20 basis points [11] - The company anticipates some increases in unemployment rates across its markets but expects these to remain manageable and below the national average [14] - Management highlighted the resilience of government contractors and essential services during government shutdowns, indicating a positive outlook for the government contractor finance portfolio [13][89] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend amount [26] - The full-year financial outlook for 2025 includes preliminary estimates of purchase accounting adjustments related to the Sandy Spring acquisition [27][30] Q&A Session Summary Question: Loan growth outlook and sustainability - Management expects mid-single-digit loan growth for next year, with potential for high single-digit growth in a more normalized environment, emphasizing strength in specialty lines [36][37] Question: Expense outlook and efficiency ratio - The efficiency ratio is expected to be in the mid-40s, inclusive of investments in North Carolina, with a focus on maintaining a flat expense base [40][41] Question: Credit trends and health of the portfolio - Overall credit trends appear strong, with low non-performing assets and past dues, despite two specific charge-offs [70][72] Question: Impact of government shutdown on operations - Management believes government contractors will remain resilient, drawing on lines of credit during shutdowns, and does not foresee significant issues arising from the current situation [89][90]

Financial Data and Key Metrics Changes - The reported net income available to common shareholders for Q3 2025 was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [18][19] - The total allowance for credit losses decreased to $320 million, down from $342.4 million in the previous quarter, with the total allowance as a percentage of total loans held for investment decreasing to 117 basis points from 125 basis points [19] - The tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the previous quarter, while the net interest margin remained steady at 3.83% [20][21] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. Non-interest bearing deposits grew by approximately 4% annualized in Q3 [9][10] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a loss related to the final CRE loan sale settlement [21] - Reported non-interest expense decreased by $41.3 million to $238.4 million, driven by a decline in merger-related costs associated with the Sandy Spring acquisition [22] Market Data and Key Metrics Changes - The Greater Washington DC region showed resilience despite concerns over government employment reductions and the government shutdown, with unemployment rates in Maryland and Virginia at 3.6%, below the national average of 4.3% [14][16] - The company maintains a diversified portfolio, with approximately 23% of total loans in the Washington Metro Area, and the remaining 77% across broader markets [14][16] Company Strategy and Development Direction - The company is focused on delivering sustainable growth and top-tier financial performance, leveraging strategic advantages from the Sandy Spring acquisition while pursuing organic growth opportunities in Virginia and North Carolina [8][17] - The integration of Sandy Spring is progressing smoothly, with expectations to achieve cost savings targets and enhanced earnings power by 2026 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's asset quality, with non-performing assets at 0.49% of loans held for investment and a forecast for the full year 2025 net charge-off ratio to remain between 15 and 20 basis points [12][13] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [31][32] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend [24] - The financial outlook for year-end loan balances is projected to be between $27.7 billion and $28 billion, with deposit balances expected between $30.8 billion and $31 billion [25] Q&A Session Summary Question: What are the expectations for loan growth in 2026? - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment [31][32] Question: What is the outlook for expenses and efficiency ratios? - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [36][37] Question: How is the company addressing competition in the market? - The company is experiencing increased competition, particularly from traditional banks returning to the market, but remains committed to consistent capital provision [90][92] Question: What are the revenue synergies expected from the Sandy Spring acquisition? - The acquisition allows for expanded lending capabilities and additional services such as interest rate hedging, with a focus on new client acquisition [94][96]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings available to common shareholders were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [15][16] - Total allowance for credit losses decreased to $320 million, down approximately $22.4 million from the second quarter, with net charge-offs increasing to $38.6 million or 56 basis points annualized [16][17] - Tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the second quarter, with a steady net interest margin at 3.83% [18][19] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. The company expects year-end loan balances to range between $27.7 billion and $28 billion [6][8] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a pretax loss related to the final CRE loan sale settlement [20] - Adjusted operating non-interest income increased by $5.1 million to $56.6 million, driven by higher loan-related interest rate swap fees and increased equity method investment income [21] Market Data and Key Metrics Changes - The company maintains a well-diversified portfolio, with approximately 23% of total loans in the Washington metro area and 77% across a broader footprint. Non-performing assets as a percentage of loans held for investment remained low at 0.49% [10][11] - The unemployment rate in Maryland to Virginia stood at 3.6%, below the national average of 4.3%, indicating resilience in the market despite government employment reductions and shutdown concerns [12] Company Strategy and Development Direction - The integration of Sandy Spring Bank is progressing smoothly, with expectations to achieve cost-savings targets and enhanced earnings power visible on a reported basis by 2026 [4][5] - The company aims to deliver sustainable growth and top-tier financial performance, leveraging strategic advantages gained from the Sandy Spring acquisition and continued organic growth opportunities [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, reaffirming the forecast for the full year 2025 net charge-off ratio to be between 15 and 20 basis points [10] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [33][34] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend amount [24] - Full-year projections include net interest income between $1.16 billion and $1.165 billion, with an expected net interest margin for the full year between 3.75% and 3.8% [25][26] Q&A Session Summary Question: Loan growth outlook for 2026 - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment, supported by strong pipelines and new client acquisition [33][34] Question: Expense outlook and efficiency ratio - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [35][36] Question: Credit health and trends - Overall credit trends are positive, with low non-performing assets and past dues. The two charge-offs were isolated events, and management remains confident in the portfolio's health [60][61]

Financial Performance - Q3 2025 adjusted operating return on tangible common equity was 20.1%[26] - Q3 2025 adjusted operating return on assets was 1.30%[26] - Q3 2025 adjusted operating efficiency ratio (FTE) was 48.8%[26] - Net interest margin (FTE) remained stable at 3.83% from Q2 2025 to Q3 2025[44] - Adjusted operating noninterest income increased approximately 10% in Q3 2025 compared to Q2 2025[50] Balance Sheet and Capital - Assets totaled $37.1 billion as of September 30, 2025[17] - Loans totaled $27.4 billion as of September 30, 2025[17] - Deposits totaled $30.7 billion as of September 30, 2025[17] - Non-interest bearing deposits remained at 23% of total deposits[26] - Loan/Deposit ratio was 89.2% at September 30, 2025[26] Strategic Initiatives - Successfully converted core systems of Sandy Spring over weekend of October 11 and concurrently closed 5 branches[30] - Organic expansion in North Carolina planned in 2026, with 10 new branches planned over the next 3 years[30, 68]

Core Viewpoint - Atlantic Union (AUB) reported quarterly earnings of $0.84 per share, slightly missing the Zacks Consensus Estimate of $0.85 per share, but showing an increase from $0.83 per share a year ago [1][2] Financial Performance - The company posted revenues of $375.38 million for the quarter ended September 2025, which was 0.7% below the Zacks Consensus Estimate and an increase from $221.12 million year-over-year [2] - Over the last four quarters, Atlantic Union has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - Atlantic Union shares have declined approximately 10.2% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $381.18 million, and for the current fiscal year, it is $3.03 on revenues of $1.37 billion [7] - The estimate revisions trend for Atlantic Union was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Banks - Northeast industry, to which Atlantic Union belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - For Q3 2025, Atlantic Union reported net income of $89.2 million and adjusted operating earnings of $119.7 million, with diluted earnings per share of $0.63 and $0.84 respectively[1][2]. - Net income available to common shareholders for Q3 2025 was $89,173,000, significantly higher than $73,448,000 in Q3 2024, marking a 21.4% increase[37]. - Net income for the three months ended September 30, 2025, was $92,140,000, compared to $19,791,000 for the previous quarter and $76,415,000 for the same period last year, reflecting a significant increase[41]. - Adjusted operating earnings for Q3 2025 were $122,693,000, compared to $77,497,000 in Q3 2024, an increase of 58.2%[37]. - Basic earnings per common share for the nine months ended September 30, 2025, was $1.23, down from $1.68 in the same period last year, indicating a decrease of 26.8%[44]. Income and Expenses - Noninterest income decreased by $29.7 million to $51.8 million, primarily due to a pre-tax loss related to the final CRE loan sale settlement[15]. - Noninterest expense decreased by $41.3 million to $238.4 million, mainly due to a reduction in merger-related costs associated with the Sandy Spring acquisition[17]. - Total noninterest expenses for the nine months ended September 30, 2025, were $652,327 thousand, compared to $377,859 thousand for the same period in 2024, reflecting an increase of 72.3%[44]. Assets and Liabilities - Total assets at September 30, 2025, were $37.1 billion, a decrease of approximately 2.3% from the previous quarter, but an increase of 49.5% from the same period last year[21]. - Total liabilities decreased to $32,510,394 thousand from $33,177,602 thousand in the previous quarter[45]. - Total deposits were $30.7 billion, a decrease of 3.9% from the prior quarter but an increase of 51.0% from September 30, 2024, attributed to the addition of acquired deposits from Sandy Spring[25]. Credit Quality - Nonperforming assets (NPAs) as a percentage of total loans held for investment decreased to 0.49%, with total NPAs at $133.2 million, down from $163.4 million in the prior quarter[7][8]. - The allowance for credit losses (ACL) was $320.0 million, a decrease of $22.4 million from the prior quarter, with the ACL as a percentage of total loans held for investment at 1.17%[11][12]. - The total ACL increased by 80.0% year-over-year from $177,628 thousand to $319,986 thousand[39]. Capital and Ratios - Common equity Tier 1 capital ratio improved to 9.92% as of September 30, 2025, compared to 9.77% in the previous quarter and the same period last year[27]. - The leverage ratio (Tier 1 capital to average assets) stood at 8.92% as of September 30, 2025, up from 9.27% a year ago[38]. - Tangible common equity to tangible assets ratio improved to 7.69% from 7.29% year-over-year[38]. Growth Metrics - Total investments reached $5.3 billion, up 44.3% from June 30, 2025, and 50.3% from September 30, 2024, primarily due to the Sandy Spring acquisition[24]. - Average assets for the nine months ended September 30, 2025, were $37,377,383 thousand, compared to $24,613,518 thousand in the same period last year, showing a growth of 51.7%[38]. - The company reported a total of $5,310,629 thousand in securities, up from $3,533,143 thousand a year ago, reflecting a 50.4% increase[38]. Operational Efficiency - The efficiency ratio (FTE) improved to 63.52% in Q3 2025 from 55.44% in Q3 2024, indicating better cost management[37]. - The efficiency ratio improved to 64.28% for the three months ended September 30, 2025, down from 69.42% in the previous quarter and 66.08% a year ago, demonstrating enhanced operational efficiency[41]. Future Outlook - The company plans to hold a conference call on October 23, 2025, to review financial results and recent activities[31]. - The company emphasizes the importance of non-GAAP financial measures for understanding ongoing operations and performance trends[33].