Adjusted operating earnings were $135.1 million or $0.95 per common share, with an adjusted operating return on tangible common equity of 23.8% and adjusted operating return on assets of 1.46%.
Adjusted operating noninterest expense increased $58.6 million to $182.4 million from Q1, mainly due to acquisition-related increases.
Adjusted operating noninterest income increased $22.2 million from Q1, driven by acquisition impacts and increases in fiduciary fees, service charges, interchange fees, and mortgage banking income.
Allowance for credit losses increased to $342.4 million, or 125 basis points of loans, primarily due to acquisition-related reserves.
Atlantic Union Bankshares reported second quarter 2025 net income available to common shareholders of $16.8 million and earnings per common share of $0.12.
CET1 capital ratio was 9.8%, with regulatory capital ratios comfortably above well-capitalized levels.
Loan balances increased by $8.9 billion to $27.3 billion, driven by Sandy Spring acquisition.
Loan-to-deposit ratio was approximately 88% at quarter-end.
Net charge-offs decreased to $666,000 or 1 basis point annualized in Q2, down from 5 basis points in Q1.
Noninterest income increased $52.3 million to $81.5 million, including gains on sale of $2 billion CRE loans and equity interest in Cary Street Partners.
Reported noninterest expense increased $145.5 million to $279.7 million, primarily due to merger-related costs and full quarter impact of Sandy Spring acquisition.
Tax equivalent net interest income increased by $137.8 million from Q1, driven by Sandy Spring acquisition and organic loan growth.
The adjusted operating efficiency ratio was 48.3% in Q2 2025.
The reported full tax equivalent net interest margin expanded by 38 basis points to 3.83%, with core net interest margin improving by 8 basis points.
Total deposits increased by $10.5 billion to $31 billion, primarily from Sandy Spring acquired deposits.
Broadstone Net Lease reported adjusted funds from operations (AFFO) of $74.3 million or $0.38 per share for Q2 2025, representing 5.6% growth compared to Q2 2024.
Core general and administrative expenses totaled $6.9 million for the quarter and $14.3 million year-to-date, tracking in line with full year expectations of $30 million to $31 million.
Dividend declared at $0.29 per share payable on or before October 15, 2025.
Investment activity through Q2 2025 totaled approximately $229 million, with nearly 60% allocated to stabilized properties, funded by retained cash flow, disposition proceeds, and revolver.
Pro forma leverage ended the quarter at 5.2x net debt with over $800 million available on the revolving credit facility.
Weighted average initial cash cap rate on acquisitions was 7.2%, with lease terms averaging 12.4 years and annual rent increases of 2.8%.
Year-to-date bad debt totaled 45 basis points, reflecting rental recoveries and limited bad debt incurrence during the quarter.
AFFO for Q2 2025 was $1.3 million or $0.03 per share, up from the prior year, positively impacted by lower interest expense and increased loan program activity.
AFFO for the six months was $3.6 million or $0.08 per share, higher than 2024, helped by lower interest expense, higher interest income, and proceeds from a solar lease arrangement.
For Q2 2025, net income was $7.8 million or $0.15 per share, higher than Q2 2024 due to gains on dispositions of 32 properties, lower G&A costs, lower interest expenses, and higher interest income.
For the six months ended June 30, 2025, net income was $9.9 million or $0.18 per share, higher than 2024 due to 34 property dispositions, debt reductions, lower G&A, and increased interest income.
Gain on disposition of assets was $25 million on $81.6 million of property sales in 2025, compared to a loss of $0.1 million in 2024.
General and administrative expenses decreased primarily due to a one-time severance expense in 2024.
Interest expense decreased by $2.8 million in Q2 and $5.2 million year-to-date due to debt reductions since October 2024.
Lines of credit were repaid in full with $23 million payments in early July 2025.
Undrawn capacity on lines of credit was approximately $160 million as of June 30, 2025, with no debt subject to interest rate resets in 2025.
Dafinchi