Atlantic Union Bankshares Reports Financial Growth Driven by Sandy Spring Acquisition

Atlantic Union Bankshares Corporation reported significant financial growth in its latest 10-Q filing for the quarter ending June 30, 2025, driven primarily by its recent acquisition of Sandy Spring Bancorp. The company recorded net income available to common shareholders of $16.8 million, translating to earnings per share (EPS) of $0.12, a decrease from $22.2 million and $0.25 EPS in the same quarter of 2024. For the first half of 2025, net income available to common shareholders was $63.7 million, with an EPS of $0.55, compared to $69.0 million and $0.84 EPS in the prior year. The decline in profitability was attributed to increased merger-related costs and provisions for credit losses, which rose significantly due to the acquisition.

Total assets surged to $37.3 billion as of June 30, 2025, marking an increase of $12.7 billion or approximately 104.2% from December 31, 2024. This growth was largely due to the addition of $8.6 billion in loans held for investment (LHFI) from the Sandy Spring acquisition. The company’s LHFI reached $27.3 billion, reflecting a 96.7% annualized increase. Total deposits also rose to $31.0 billion, up $10.6 billion or 104.5% from the end of 2024, primarily driven by the acquisition and an increase in interest-bearing customer deposits.

Operationally, Atlantic Union Bankshares has seen a notable increase in noninterest income, which rose to $81.5 million for the second quarter of 2025, a 242.4% increase from $23.8 million in the same quarter of 2024. This increase was bolstered by a $15.7 million pre-tax gain from the sale of commercial real estate loans and a $14.3 million gain from the sale of equity interest in Cary Street Partners. The company also reported a significant rise in fiduciary and asset management fees, which increased by 156.6% due to the acquisition's impact.

The company’s allowance for credit losses (ACL) increased to $342.4 million, reflecting the initial provision related to the Sandy Spring acquisition. The nonaccrual loans increased to $162.6 million, representing 0.60% of total LHFI, up from 0.32% at the end of 2024. The increase in nonaccrual loans was primarily due to purchased credit deteriorated (PCD) loans acquired from Sandy Spring. Despite these challenges, Atlantic Union Bankshares maintains a strong capital position, with regulatory capital ratios exceeding the minimum requirements to be considered well-capitalized.

Looking ahead, Atlantic Union Bankshares anticipates continued integration of Sandy Spring's operations and expects to realize synergies from the acquisition. The company is focused on managing its interest rate risk and maintaining liquidity amid changing economic conditions. The recent tax legislation and ongoing economic uncertainties may also influence future performance, but management remains optimistic about leveraging its expanded footprint and customer base to drive growth.