The 5 Most Interesting Analyst Questions From Atlantic Union Bankshares’s Q4 Earnings Call

Regional banking company Atlantic Union Bankshares beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 76.1% year on year to $391.3 million. Its non-GAAP profit of $0.97 per share was 12.9% above analysts’ consensus estimates.

Atlantic Union Bankshares (AUB) Q4 CY2025 Highlights:

• Revenue: $391.3 million vs analyst estimates of $379.5 million (76.1% year-on-year growth, 3.1% beat)
• Adjusted EPS: $0.97 vs analyst estimates of $0.86 (12.9% beat)
• Adjusted Operating Income: $184.5 million vs analyst estimates of $179 million (47.1% margin, 3.1% beat)
• Market Capitalization: $5.62 billion

StockStory’s Take

Atlantic Union Bankshares’ fourth quarter results reflected the impact of its Sandy Spring acquisition and operational discipline, with management calling out successful integration and a more efficient cost structure. CEO John Asbury pointed to “disciplined execution and successful integration of the Sandy Springs acquisition” as a key driver, noting that merger-related charges continued to affect reported results. The quarter also benefited from record loan production, a rebound in commercial lending pipelines, and deposit cost reductions that helped expand net interest margin. Management acknowledged ongoing macroeconomic uncertainty but emphasized that underlying operating performance was strong, supported by resilient credit quality and steady asset growth.

Looking to the year ahead, management expects further benefit from the completed Sandy Spring integration, citing a focus on organic loan growth and expansion into North Carolina as strategic priorities. CFO Rob Gorman said the company is “maintaining our full year 2026 financial outlook,” pointing to anticipated loan growth, stable credit quality, and continued efficiency improvements. Management highlighted expectations that merger-related expenses will subside, allowing core profitability to become more visible. They also stressed the importance of deposit growth and cost management in a competitive environment, while investments in new markets and specialty lending are expected to support revenue momentum.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to the combination of integration benefits from Sandy Spring, higher loan production, margin improvement, and steady asset quality trends.

• Sandy Spring integration progress: The completed core system conversion and cost savings initiatives related to the Sandy Spring acquisition were major contributors, with most merger-related expenses now behind the company. Management expects that future quarters will show a clearer view of underlying earnings power.
• Record loan production: Quarterly loan growth was fueled by increased commercial activity and renewed confidence among clients, with the loan pipeline ending higher than at the start of the quarter. This broad-based momentum spanned the legacy Atlantic Union, Sandy Spring, and specialty business lines.
• Deposit cost management: Deposit costs were reduced, which, combined with steady loan yields, drove a 13 basis point improvement in net interest margin. Management noted that aggressive repricing of $12–$13 billion in deposits helped offset impacts from lower interest rates on variable loans.
• Fee income drivers: Noninterest income was supported by growth in loan-related interest rate swap fees and fiduciary and asset management fees, both enhanced by the Sandy Spring acquisition. Management cautioned that swap fee income may fluctuate quarter to quarter due to client activity.
• Credit quality resilience: Asset quality remained strong, with net charge-offs at very low levels and nonperforming assets declining. Management cited conservative underwriting and client selectivity as ongoing strengths inherited from both the Sandy Spring and American National franchises.

Drivers of Future Performance

Management’s guidance for the coming year is driven by expectations of moderate loan and deposit growth, ongoing cost discipline, and stable credit quality.

• Organic loan and deposit growth: The company is targeting mid-single-digit loan growth and 3–4% deposit growth, supported by expanded commercial teams and new branches—especially in North Carolina and recently acquired markets. Management believes treasury management opportunities and specialty lending will further bolster growth.
• Efficiency improvements post-integration: With most merger-related costs behind them, management expects the efficiency ratio to remain below 50% and core expenses to stabilize. Cost savings from the Sandy Spring integration are expected to be fully realized by the second quarter, with further benefit from operational streamlining and reduced duplication.
• Credit and margin outlook: Management projects that credit quality will remain strong, with allowances for credit losses steady as a percentage of loans. Net interest margin is expected to be supported by ongoing efforts to manage deposit costs, but is sensitive to changes in Federal Reserve policy and competitive rate pressures.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will monitor (1) the pace of loan and deposit growth, especially in North Carolina and Sandy Spring markets, (2) core margin resilience as the company manages deposit costs amid rate changes, and (3) realization of full cost savings from the Sandy Spring integration. Execution on specialty lending and branch expansion, as well as progress toward share buybacks, will also serve as important milestones.

Atlantic Union Bankshares currently trades at $39.67, in line with $39.99 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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Regional banking company Atlantic Union Bankshares reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 74.2% year on year to $387.2 million. Its non-GAAP profit of $0.97 per share was 12.9% above analysts’ consensus estimates.

Atlantic Union Bankshares (AUB) Q4 CY2025 Highlights:

• Net Interest Income: $330.2 million vs analyst estimates of $326.7 million (80.2% year-on-year growth, 1.1% beat)
• Net Interest Margin: 3.9% vs analyst estimates of 3.9% (3.1 basis point beat)
• Revenue: $387.2 million vs analyst estimates of $379.5 million (74.2% year-on-year growth, 2% beat)
• Efficiency Ratio: 62.8% vs analyst estimates of 53.8% (907.7 basis point miss)
• Adjusted EPS: $0.97 vs analyst estimates of $0.86 (12.9% beat)
• Tangible Book Value per Share: $19.69 vs analyst estimates of $19.68 (4.1% year-on-year decline, in line)
• Market Capitalization: $5.70 billion

“Atlantic Union had a strong fourth quarter, reflecting disciplined execution and a successful integration of the Sandy Spring Bancorp, Inc. acquisition,” said John C. Asbury, president and chief executive officer of Atlantic Union.

Company Overview

Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Luckily, Atlantic Union Bankshares’s revenue grew at an impressive 14.7% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Atlantic Union Bankshares’s annualized revenue growth of 36.8% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Atlantic Union Bankshares reported magnificent year-on-year revenue growth of 74.2%, and its $387.2 million of revenue beat Wall Street’s estimates by 2%.

Net interest income made up 83% of the company’s total revenue during the last five years, meaning Atlantic Union Bankshares barely relies on non-interest income to drive its overall growth.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Atlantic Union Bankshares’s TBVPS declined at a 2% annual clip over the last five years. A turnaround doesn’t seem to be in sight as its TBVPS also dropped by 4.3% annually over the last two years ($21.48 to $19.69 per share).

Over the next 12 months, Consensus estimates call for Atlantic Union Bankshares’s TBVPS to grow by 13.1% to $22.26, decent growth rate.

Key Takeaways from Atlantic Union Bankshares’s Q4 Results

It was good to see Atlantic Union Bankshares beat analysts’ EPS expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 3.1% to $41.23 immediately after reporting.

Atlantic Union Bankshares may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Atlantic Union Bankshares will be reporting results tomorrow morning. Here’s what to look for.

Atlantic Union Bankshares met analysts’ revenue expectations last quarter, reporting revenues of $380.2 million, up 71.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Is Atlantic Union Bankshares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Atlantic Union Bankshares’s revenue to grow 70.8% year on year to $379.5 million, improving from the 19.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlantic Union Bankshares has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Atlantic Union Bankshares’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Atlantic Union Bankshares is up 2.8% during the same time and is heading into earnings with an average analyst price target of $42.44 (compared to the current share price of $37.36).

Regional banking company Atlantic Union Bankshares will be announcing earnings results this Thursday before the bell. Here’s what you need to know.

Atlantic Union Bankshares met analysts’ revenue expectations last quarter, reporting revenues of $380.2 million, up 71.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Is Atlantic Union Bankshares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Atlantic Union Bankshares’s revenue to grow 70.8% year on year to $379.5 million, improving from the 19.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Atlantic Union Bankshares has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Atlantic Union Bankshares’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Atlantic Union Bankshares is up 2.3% during the same time and is heading into earnings with an average analyst price target of $42.44 (compared to the current share price of $37.36).