Regional banking company Atlantic Union Bankshares (NYSE: AUB) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 72.8% year on year to $375.4 million. Its GAAP profit of $0.63 per share was 19.4% below analysts’ consensus estimates.
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Atlantic Union Bankshares (AUB) Q3 CY2025 Highlights:
- Net Interest Income: $319.2 million vs analyst estimates of $328.1 million (74.5% year-on-year growth, 2.7% miss)
- Net Interest Margin: 3.8% vs analyst estimates of 3.9% (11 basis point miss)
- Revenue: $375.4 million vs analyst estimates of $374.3 million (72.8% year-on-year growth, in line)
- Efficiency Ratio: 64.3% vs analyst estimates of 53.7% (1,055.2 basis point miss)
- EPS (GAAP): $0.63 vs analyst expectations of $0.78 (19.4% miss)
- Tangible Book Value per Share: $18.99 vs analyst estimates of $18.95 (9.3% year-on-year decline, in line)
- Market Capitalization: $4.85 billion
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
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. Over the last five years, Atlantic Union Bankshares grew its revenue at an excellent 12.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Atlantic Union Bankshares’s annualized revenue growth of 30.5% 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’s year-on-year revenue growth of 72.8% was magnificent, and its $375.4 million of revenue was in line with Wall Street’s estimates.
Net interest income made up 83.7% 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.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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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 explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. 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 2.1% annual clip over the last five years. TBVPS has stabilized recently as it was flat over the last two years at about $18.99 per share.
Over the next 12 months, Consensus estimates call for Atlantic Union Bankshares’s TBVPS to grow by 14.2% to $21.68, top-notch growth rate.
Key Takeaways from Atlantic Union Bankshares’s Q3 Results
We struggled to find many positives in these results. Its net interest income missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 1.5% to $33.52 immediately after reporting.
Atlantic Union Bankshares underperformed this quarter, but does that create an opportunity to invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
