Regional banking company Atlantic Union Bankshares (NYSE: AUB) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 95.5% year on year to $407.3 million. Its non-GAAP profit of $0.95 per share was 19.2% above analysts’ consensus estimates.
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Atlantic Union Bankshares (AUB) Q2 CY2025 Highlights:
- "On April 1, 2025, the Company completed its acquisition of Sandy Spring and its results of operations are included in the Company’s consolidated results since the date of acquisition. Therefore, the Company’s second quarter and first half of 2025 results reflect increased levels of average balances, net interest income, and expense compared to its prior quarter and first half of 2024 results."
- Net Interest Income: $321.4 million vs analyst estimates of $319 million (74.2% year-on-year growth, 0.7% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.8% (32 basis point year-on-year increase, 6 bps miss)
- Revenue: $407.3 million vs analyst estimates of $362 million (95.5% year-on-year growth, 12.5% beat)
- Efficiency Ratio: 69.4% vs analyst estimates of 55.5% (13.9 percentage point miss)
- Adjusted EPS: $0.95 vs analyst estimates of $0.80 (19.2% beat)
- Market Capitalization: $4.80 billion
“With the closing of the Sandy Spring acquisition on April 1, 2025, our second quarter results provide an initial view into the operating earnings power of our combined franchise,” 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 (NYSE: AUB) 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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Luckily, Atlantic Union Bankshares’s revenue grew at an impressive 9% compounded annual growth rate over the last five years. Its growth beat the average bank 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 22.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Atlantic Union Bankshares reported magnificent year-on-year revenue growth of 95.5%, and its $407.3 million of revenue beat Wall Street’s estimates by 12.5%.
Net interest income made up 83.8% 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.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Atlantic Union Bankshares’s TBVPS declined at a 2.2% annual clip over the last five years. A turnaround doesn’t seem to be in sight as its TBVPS also dropped by 3.3% annually over the last two years ($19.68 to $18.38 per share).
Over the next 12 months, Consensus estimates call for Atlantic Union Bankshares’s TBVPS to grow by 13.3% to $20.82, top-notch growth rate.
Key Takeaways from Atlantic Union Bankshares’s Q2 Results
Revenue and EPS beat while efficiency ratio missed, but we'd note that there could be comparability issues. On April 1, 2025, the Company completed its acquisition of Sandy Spring and its results of operations are included in the Company’s consolidated results since the date of acquisition. Therefore, results reflect increased levels of average balances, net interest income, and expense compared to its prior quarter and first half of 2024 results. The stock remained flat at $33.68 immediately following the results.
So should you invest in Atlantic Union Bankshares 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.
