GICS Sector : Financial Services
Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses.The company accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts; certificates of deposit; and other depository services.It also provides loans for commercial, industrial, residential mortgage, and consumer purposes.
Atlantic Union Bankshares reported adjusted operating earnings available to common shareholders of $119.7 million or $0.84 per common share for the third quarter, slightly missing analyst estimates of $0.85 EPS. The company's reported FTE net interest margin remained steady at 3.83%, while noninterest-bearing deposits grew approximately 4% annualized. Adjusted operating return on tangible common equity was 20.1%, and the adjusted operating efficiency ratio was 48.8%. Revenue growth is expected to be 14.5% next year according to analyst estimates.
Publication Date: Oct -27
The company reported loan growth of approximately 0.5% annualized, but lending production increased modestly versus the second quarter. Average loan growth quarter-over-quarter was 4.3% annualized. CEO John Asbury mentioned that "we have the pipeline to support mid-single-digit loan growth in Q4," indicating a positive outlook for loan growth. The company expects year-end loan balances to range between $27.7 billion and $28 billion.
The company expects margin expansion in the fourth quarter, with a guidance of 3.85% to 3.90%. Robert Gorman stated that "we think there's opportunity for core expansion in the low single digits per quarter," driven by fixed-rate loans repricing higher. Credit trends look good, with 0.49% nonperforming assets as a percentage of the total loan book, indicating a healthy portfolio.
Atlantic Union Bankshares trades at a Price-to-Tangible Book Value (P/TBV) of around 0.62, which is relatively attractive compared to its peers. The company's Dividend Yield is 3.99%, providing a stable source of return for investors. With a strong capital position and a commitment to returning capital to shareholders, the company is well-positioned to continue delivering value to its investors.
The company has provided guidance for the full year 2025, including adjusted operating noninterest income of $185 million to $190 million and adjusted operating noninterest expenses of $675 million to $680 million. The company expects to maintain a mid-40s efficiency ratio, despite potential revenue growth and expense management challenges. With a strong pipeline and a solid capital position, Atlantic Union Bankshares is poised for continued growth and profitability.
Atlantic Union Bankshares: Still Cheap Amid Resilient Credit Quality And Declining CRE Exposure
Dec -03
Australia's AUB plunges as EQT, CVC abandon $3.44 billion offer
Dec -01
Associated Banc Corp Invests $224,000 in Atlantic Union Bankshares Co. $AUB
Nov -27
Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600
Nov -26
Commonwealth of Pennsylvania Public School Empls Retrmt SYS Acquires 15,446 Shares of Atlantic Union Bankshares Co. $AUB
Nov -24
Atlantic Union Bankshares Co. $AUB Shares Bought by Creative Planning
Nov -24
35,881 Shares in Atlantic Union Bankshares Co. $AUB Purchased by Accordant Advisory Group Inc
Nov -20
Is the Options Market Predicting a Spike in AUB Stock?
Nov -19
Atlantic Union Bankshares Corporation's Wholesale Banking segment growth of 5.45% is driven by increased commercial loan demand, expansion of treasury management services, and strategic partnerships. Additionally, the segment benefits from a strong economy, low unemployment, and rising interest rates, which boost lending and deposit growth.
Atlantic Union Bankshares Corporation's 7.03% growth in Consumer Banking is driven by strategic expansion into new markets, increased adoption of digital banking channels, and a focus on customer acquisition and retention through competitive pricing and exceptional customer service.
Atlantic Union Bankshares Corporation's Corporate Other segment growth of 4.54% is driven by increasing treasury management services, growth in mortgage banking income, and expansion of commercial loan offerings. Additionally, strategic acquisitions and investments in digital banking platforms have contributed to the segment's growth.
Provides financial solutions to businesses, including cash management, lending, and treasury management services.
Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.
Provides mortgage lending services to individuals and businesses, including residential and commercial mortgages.
Offers investment and wealth management services, including financial planning, investment management, and trust services.
Provides credit card and debit card services to individuals and businesses.
Offers cash management and treasury services to businesses, including account management, payment processing, and fraud prevention.
The threat of substitutes for Atlantic Union Bankshares Corporation is medium due to the presence of alternative financial institutions and digital payment systems.
The bargaining power of customers is low due to the lack of concentration in the banking industry and the high switching costs for customers.
The bargaining power of suppliers is low due to the bank's ability to negotiate with suppliers and the lack of concentration in the supplier market.
The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.
The intensity of rivalry is high due to the competitive nature of the banking industry, with many established players competing for market share.
| Value | |
|---|---|
| Debt Weight | 30.30% |
| Debt Cost | 8.63% |
| Equity Weight | 69.70% |
| Equity Cost | 8.63% |
| WACC | 8.63% |
| Leverage | 43.46% |
Value: 7.0
Growth: 6.4
Quality: 7.1
Yield: 6.0
Momentum: 8.0
Volatility: 6.0
1-Year Total Return ->
Value: 6.6
Growth: 5.9
Quality: 7.8
Yield: 6.0
Momentum: 7.0
Volatility: 6.7
1-Year Total Return ->
Value: 5.7
Growth: 5.4
Quality: 7.4
Yield: 5.0
Momentum: 4.5
Volatility: 7.7
1-Year Total Return ->
Value: 5.2
Growth: 7.8
Quality: 5.0
Yield: 2.0
Momentum: 7.0
Volatility: 7.3
1-Year Total Return ->
Value: 6.5
Growth: 5.2
Quality: 5.6
Yield: 7.0
Momentum: 3.5
Volatility: 6.3
1-Year Total Return ->
Value: 5.7
Growth: 5.8
Quality: 5.2
Yield: 4.0
Momentum: 6.5
Volatility: 6.7
1-Year Total Return ->