Atlantic Union Bankshares Reports Q1 2025 Financial Results with $49.8 Million Net Income

Atlantic Union Bankshares Corporation reported its financial results for the first quarter of 2025, revealing a net income of $49.8 million, slightly up from $49.8 million in the same period last year. The company’s diluted earnings per share decreased to $0.52 from $0.62 year-over-year, attributed to an increase in the weighted average number of shares outstanding following the acquisition of American National Bankshares Inc. in April 2024. The total interest and dividend income rose to $305.8 million, a 16.3% increase from $262.9 million in the first quarter of 2024, driven by higher interest income from loans and securities.

The bank's net interest income after provision for credit losses was $166.5 million, up from $139.6 million a year earlier, reflecting a significant increase in net interest income due to a larger volume of interest-earning assets. However, the provision for credit losses increased to $17.6 million from $8.2 million, reflecting heightened economic uncertainty. Noninterest income also saw a rise, totaling $29.2 million, compared to $25.6 million in the prior year, primarily due to increased service charges and fiduciary fees.

In terms of operational developments, Atlantic Union completed its merger with Sandy Spring Bancorp on April 1, 2025, which is expected to enhance its market presence in Virginia, Maryland, and Washington D.C. The merger is anticipated to add approximately $13.8 billion in assets, $11.4 billion in loans, and $11.2 billion in deposits. The company also plans to sell approximately $2 billion of commercial real estate loans as part of its strategy to optimize its balance sheet following the acquisition.

As of March 31, 2025, total assets stood at $24.6 billion, a modest increase from $24.5 billion at the end of 2024. Total loans held for investment decreased slightly to $18.4 billion, primarily due to declines in the construction and land development sectors. Total deposits increased to $20.5 billion, reflecting a growth in demand deposits, while brokered deposits decreased. The bank's allowance for credit losses rose to $209 million, indicating a proactive approach to managing potential credit risks amid economic uncertainties.

Looking ahead, Atlantic Union Bankshares remains focused on integrating Sandy Spring Bancorp and optimizing its loan portfolio while navigating the evolving economic landscape. The company is committed to maintaining strong capital ratios, with a common equity Tier 1 capital ratio of 10.07% as of March 31, 2025, exceeding regulatory requirements. The management anticipates that the strategic initiatives, including the loan sale and the merger, will position the bank for continued growth and stability in the coming quarters.