Atlantic Union Bankshares (US:AUB)2025-04-24 10:47Financial Performance - For Q1 2025, Atlantic Union reported net income of $46.9 million, with basic and diluted earnings per share of $0.53 and $0.52, respectively[1]. - Net income available to common shareholders for Q1 2025 was $46,851,000, down 14.3% from $54,818,000 in Q4 2024 but stable compared to $46,802,000 in Q1 2024[37]. - Net income for Q1 2025 was $49,818,000, a decrease of 13.5% from $57,785,000 in Q4 2024, but slightly up from $49,769,000 in Q1 2024[41]. - Adjusted operating earnings available to common shareholders for Q1 2025 were $51,575,000, down 16.0% from $61,397,000 in Q4 2024, but up 5.0% from $49,027,000 in Q1 2024[41]. - The efficiency ratio for Q1 2025 was 62.90%, compared to 59.35% in Q4 2024 and 60.72% in Q1 2024, indicating a decline in operational efficiency[37]. - The return on average assets (ROA) decreased to 0.82% in Q1 2025 from 0.92% in Q4 2024 and 0.94% in Q1 2024, indicating a decline in asset efficiency[37]. - The return on average tangible common equity (ROTCE) was 12.04% for the three months ended March 31, 2025, compared to 13.32% for the same period in 2024, indicating a decline in profitability metrics[40]. Revenue and Income Sources - Net interest income for Q1 2025 was $184.2 million, an increase of $916,000 from the previous quarter, primarily due to lower deposit costs[8]. - Noninterest income decreased by $6.0 million to $29.2 million in Q1 2025, primarily due to lower loan-related interest rate swap fees[19]. - Interest and dividend income for Q1 2025 was $305,836,000, a decrease of 4.3% from $319,204,000 in Q4 2024 and an increase of 16.3% from $262,915,000 in Q1 2024[37]. - Total revenue (FTE) (non-GAAP) was $217,084 thousand for the three months ended March 31, 2025, compared to $177,098 thousand for the same period in 2024, marking a year-over-year increase of 22.6%[40]. Assets and Liabilities - Total assets reached $24.6 billion, an increase of approximately 15.2% from the previous year[22]. - Total assets increased to $24,632,611,000 in Q1 2025 from $24,585,323,000 in Q4 2024 and $21,378,120,000 in Q1 2024, reflecting a year-over-year growth of 15.6%[38]. - Loans held for investment (LHFI) totaled $18.4 billion, a decrease of $42.9 million or 0.9% from the prior quarter, but an increase of 16.3% from the previous year[23]. - Total deposits were $20.5 billion, an increase of $3.2 billion or 18.7% from March 31, 2024[25]. - Total borrowings decreased to $475.7 million, down $582.0 million or 55% year-over-year[26]. Capital and Equity - Common equity Tier 1 capital ratio improved to 10.07% from 9.86% year-over-year[27]. - The common equity Tier 1 capital ratio improved to 10.07% in Q1 2025 from 9.96% in Q4 2024 and 9.86% in Q1 2024, indicating stronger capital position[38]. - The ending tangible common equity (non-GAAP) was $1,725,641 thousand as of March 31, 2025, up from $1,440,072 thousand a year earlier, reflecting a year-over-year increase of 19.8%[40]. Credit Quality - Nonperforming assets as a percentage of total loans held for investment (LHFI) was 0.38% as of March 31, 2025, reflecting an increase of 6 basis points from the prior quarter[11]. - The allowance for credit losses (ACL) totaled $209.0 million, representing an increase of $15.3 million from the previous quarter[15]. - The provision for loan losses was $17,430 thousand for the three months ended March 31, 2025, compared to $8,925 thousand for the same period in 2024, indicating a year-over-year increase of 95.5%[39]. - Nonperforming assets (NPAs) totaled $69,419 thousand as of March 31, 2025, compared to $58,373 thousand at December 31, 2024, representing a quarter-over-quarter increase of 18.0% and a year-over-year increase of 90.6%[39]. - The net charge-offs to total average loans held for investment (annualized) was 0.05% for the three months ended March 31, 2025, compared to 0.13% for the same period in 2024, showing an improvement in asset quality[39]. Mergers and Acquisitions - The merger with Sandy Spring Bancorp was completed on April 1, 2025, resulting in the acquisition of 53 branches and creating the largest regional banking franchise in the lower Mid-Atlantic[2]. - The increase in deposit balances was primarily due to the American National acquisition[25]. Future Outlook - The company plans to hold a conference call on April 24, 2025, to discuss financial results and recent activities[31].