Atlantic Union Bankshares (US:AUB)2025-10-23 11:00Financial 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].