Atlantic Union Bankshares (AUB) - 2025 Q4 - Annual Results

Financial Performance - For Q4 2025, Atlantic Union reported net income of $109.0 million and adjusted operating earnings of $138.4 million, with diluted earnings per share of $0.77 and $0.97 respectively[1][2] - For the full year 2025, net income available to common shareholders was $261.8 million, with adjusted operating earnings of $444.8 million, resulting in diluted earnings per share of $2.03 and $3.44 respectively[2] - Net income available to common shareholders for Q4 2025 was $108,999,000, a 22.2% increase from $89,173,000 in Q3 2025[36] - Net income for Q4 2025 reached $111,966,000, a 21.5% increase from $92,140,000 in Q3 2025 and a 93.6% increase from $57,785,000 in Q4 2024[40] - Adjusted operating earnings available to common shareholders for the year ended 2025 were $444,842,000, up 75.9% from $252,826,000 in 2024[40] Revenue and Income - Total revenue (FTE) for the year ended December 31, 2025, reached $1,391,510,000, compared to $832,643,000 in the previous year, a significant increase of 67.2%[36] - Total adjusted revenue for the year ended 2025 was $1,365,919,000, a significant increase from $839,136,000 in 2024[40] - Noninterest income increased to $57.0 million in Q4 2025, up $5.2 million from the prior quarter, primarily due to a recovery from a prior loss related to the sale of commercial real estate loans[14] - Noninterest income for Q4 2025 was $57,000,000, up from $51,751,000 in Q3 2025 and $35,227,000 in Q4 2024[40] Assets and Liabilities - Total assets reached $37.6 billion at December 31, 2025, an increase of $513.0 million or approximately 5.5% from the prior quarter, and up $13.0 billion or approximately 52.9% from the previous year[20] - Total assets amounted to $37,585,754,000 as of December 31, 2025, up from $37,072,733,000 as of September 30, 2025, and significantly higher than $24,585,323,000 as of December 31, 2024[42] - Total deposits amounted to $30.5 billion, down $193.7 million or 2.5% from the prior quarter, but up $10.1 billion or 49.4% year-over-year, largely due to the addition of deposits from the Sandy Spring acquisition[24] - Total deposits decreased to $30,471,636,000 as of December 31, 2025, from $30,665,324,000 as of September 30, 2025, and increased from $20,397,619,000 as of December 31, 2024[42] Credit Quality - Nonperforming assets (NPAs) as a percentage of total loans held for investment (LHFI) decreased to 0.42% at December 31, 2025, down 7 basis points from the prior quarter[7] - The allowance for credit losses (ACL) was $321.3 million at December 31, 2025, reflecting a $1.3 million increase from the prior quarter, with an ACL to total LHFI ratio of 1.16%[10][11] - The Allowance for Credit Losses (ACL) increased to $321,269 thousand, up from $193,685 thousand year-over-year, reflecting a growth of 65.9%[38] - The Ending balance of the Allowance for Loan and Lease Losses (ALLL) was $295,108 thousand, compared to $178,644 thousand in the previous year, representing a 65.5% increase[38] Efficiency and Ratios - The efficiency ratio for Q4 2025 improved to 62.09%, down from 63.52% in Q3 2025, indicating better cost management[36] - Return on average assets (ROA) for Q4 2025 was 1.19%, up from 0.98% in Q3 2025, showing improved asset utilization[36] - Common equity Tier 1 capital ratio improved to 10.10% as of December 31, 2025, compared to 9.92% in the prior quarter and 9.96% a year earlier[26] - Adjusted operating return on average equity (ROE) for the year ended 2025 was 11.33%, up from 10.00% in 2024[40] Acquisitions and Integration - Preliminary goodwill from the Sandy Spring acquisition was $519.2 million as of December 31, 2025, with a $22.4 million increase due to measurement period adjustments[21] - The company is focused on integrating the Sandy Spring acquisition and expects to realize benefits from this and the American National acquisition in the future[33] Economic Outlook - The company anticipates potential impacts from economic conditions, interest rate changes, and competition in the financial services sector, which may affect future performance[34]