How Sandy Spring Acquisition and Elevated Credit Costs at Atlantic Union Bankshares (AUB) Have Changed Its Investment Story

• Atlantic Union Bankshares reported third quarter 2025 earnings, reflecting robust year-over-year revenue growth to US$375.38 million due to the Sandy Spring acquisition, but earnings per share of US$0.63 fell short of expectations amid higher credit costs and merger-related expenses.
• An important insight is the company's successful integration of Sandy Spring Bancorp, which has improved operational efficiency and expanded its presence in key Mid-Atlantic markets.
• We'll explore how Atlantic Union's higher-than-anticipated net charge-offs this quarter shape the longer-term investment narrative for the company.

Find companies with promising cash flow potential yet trading below their fair value.

Atlantic Union Bankshares Investment Narrative Recap

To be a shareholder in Atlantic Union Bankshares, you need to believe in the company's ability to leverage regional growth and integration gains from its acquisitions, especially Sandy Spring, while managing credit risk and cost control. The recent spike in net charge-offs is the clearest short-term risk to watch, as this can impact near-term earnings more than any immediate revenue opportunity. However, the impact of this event on the company's long-term expansion catalyst appears limited for now.

Of the recent announcements, the reported net charge-offs of US$38.6 million stand out. This material increase, largely from two commercial loans, highlights the execution and integration risk that can come with rapid growth through acquisition and exposes the company to swings in credit quality, which is a key concern when considering Atlantic Union’s longer-term performance and risk profile.

In contrast, some may overlook the higher-than-usual net charge-offs, but this is information investors should be aware of as they consider...

Read the full narrative on Atlantic Union Bankshares (it's free!)

Atlantic Union Bankshares is projected to achieve $1.9 billion in revenue and $806.7 million in earnings by 2028. This outlook assumes annual revenue growth of 28.7% and a $614.8 million increase in earnings from the current $191.9 million level.

Uncover how Atlantic Union Bankshares' forecasts yield a $41.56 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members shared three fair value estimates for Atlantic Union Bankshares, spanning from US$30.79 to US$44.50 per share. That range reflects the variety of investor outlooks and brings credit risk into focus as a core issue influencing future returns; review multiple viewpoints to get the full picture.

Explore 3 other fair value estimates on Atlantic Union Bankshares - why the stock might be worth 10% less than the current price!

Build Your Own Atlantic Union Bankshares Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Atlantic Union Bankshares research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Atlantic Union Bankshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atlantic Union Bankshares' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.