Education
About Us
Working with TipRanks
Follow Us
Atlantic Union Bankshares Corporation (AUB)
NYSE:AUB
Top Page
Atlantic Union Bankshares
(NYSE:AUB)
64Neutral
Atlantic Union Bankshares (AUB) vs. S&P 500 (SPY)
Market Cap
$3.84B
Dividend Yield4.54%
Average Volume (3M)2.46M
Price to Earnings (P/E)13.3
Beta (1Y)1.23
Revenue Growth26.09%
EPS Growth-19.05%
CountryUS
Employees2,128
SectorFinancial
Sector Strength85
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.57
Shares Outstanding132,149,380
10 Day Avg. Volume2,232,604
30 Day Avg. Volume2,463,990
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.80
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.51
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.50Price Target Upside32.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Atlantic Union Bankshares Business Overview & Revenue Model
Company DescriptionAtlantic 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. In addition, the company offers credit cards, automated teller machine (ATM) services, mobile and internet banking services, and online bill payment services, as well as financial planning, trust, and wealth management services. Further, it provides securities, brokerage, and investment advisory products and services; and originates and sells residential loan products in the secondary market. As of February 25, 2022, it operated 130 branches and approximately 150 ATMs in Virginia, Maryland, and North Carolina. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.
How the Company Makes MoneyAtlantic Union Bankshares generates revenue primarily through interest income and non-interest income. Interest income is derived from loans to individuals, businesses, and other financial institutions, including personal loans, commercial real estate loans, and residential mortgages. The company also earns interest from its investment securities portfolio. Non-interest income comes from fees and service charges, including fees from deposit accounts, wealth management services, and mortgage banking activities. Additionally, the company benefits from strategic partnerships and regional market expertise, which enhance its ability to attract deposits and loans, contributing to its overall earnings.
Atlantic Union Bankshares Financial Statement Overview
Summary
Atlantic Union Bankshares exhibits robust revenue growth and maintains a strong balance sheet with low leverage. However, declining margins and cash flows could pose risks to future profitability and liquidity. While the company is in a solid financial position, careful management of operational costs and cash flow is necessary to sustain growth and shareholder returns.Income Statement
Atlantic Union Bankshares showed a mixed performance in the latest annual report. The gross profit margin remains strong at 100% due to the nature of the banking industry where revenue equals gross profit. The net profit margin improved from 28.99% in the previous year to 17.04% in the latest year. Revenue growth has been volatile, with a significant increase of 76.35% in the most recent year driven by mergers or acquisitions. Despite the revenue growth, EBIT and EBITDA margins have decreased, indicating rising operational costs or competitive pressures.―
Balance Sheet
The balance sheet of Atlantic Union Bankshares reflects a stable financial position with a low debt-to-equity ratio improving to 0.02, indicating low financial leverage. The return on equity (ROE) decreased slightly to 6.66%, suggesting a drop in profitability for shareholders. The equity ratio improved to 12.78%, enhancing financial stability by maintaining a healthy buffer of equity against total assets.65
Cash Flow
Cash flow analysis shows a decline in operating cash flow from $263.97M to $114.80M, indicating potential challenges in cash generation from core operations. Free cash flow decreased in the latest year, causing concern about the company's ability to finance growth without external funding. The operating cash flow to net income ratio of 0.55 suggests efficient cash generation relative to net income. However, the decline in free cash flow growth rate is a potential risk.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 817.42M | 696.27M | 696.21M | 677.07M | 686.78M | Gross Profit |
| 1.23B | 696.27M | 696.21M | 677.07M | 686.78M | EBIT |
| 13.65M | 233.11M | 390.75M | 318.76M | 186.29M | EBITDA |
| 0.00 | 261.60M | 325.39M | 369.49M | 229.40M | Net Income Common Stockholders |
| 209.13M | 201.82M | 234.51M | 263.92M | 158.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.64B | 2.43B | 3.06B | 4.28B | 3.03B | Total Assets |
| 24.59B | 21.17B | 20.46B | 20.06B | 19.63B | Total Debt |
| 60.00M | 1.11B | 1.57B | 388.72M | 739.83M | Net Debt |
| -136.44M | 746.67M | 1.25B | -410.95M | 248.55M | Total Liabilities |
| 21.44B | 18.61B | 18.09B | 388.72M | 16.92B | Stockholders Equity |
| 3.14B | 2.56B | 2.37B | 2.71B | 2.71B |
| Cash Flow | Free Cash Flow | |||
| 114.80M | 258.87M | 401.11M | 328.39M | 202.35M | Operating Cash Flow |
| 114.80M | 263.97M | 403.96M | 337.79M | 231.92M | Investing Cash Flow |
| -4.30M | -591.99M | -1.26B | -345.44M | -1.92B | Financing Cash Flow |
| -127.61M | 383.42M | 375.18M | 316.86M | 1.74B |
Atlantic Union Bankshares Technical Analysis
Neutral
29.10
Price Trends
29.89
Negative
33.80
Negative
36.07
Negative
Market Momentum
-0.30
Negative
58.43
Neutral
92.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUB, the sentiment is Neutral. The current price of 29.1 is above the 20-day moving average (MA) of 26.04, below the 50-day MA of 29.89, and below the 200-day MA of 36.07, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 92.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AUB.
Atlantic Union Bankshares Risk Analysis
Atlantic Union Bankshares disclosed 67 risk factors in its most recent earnings report. Atlantic Union Bankshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atlantic Union Bankshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.80B | 9.18 | 17.80% | ― | 15.93% | 0.17% | |
80 Outperform | $3.91B | 9.56 | 15.60% | 2.17% | 7.33% | -0.55% | |
70 Neutral | $4.17B | 11.23 | 10.19% | 1.16% | 9.14% | 31.69% | |
69 Neutral | $4.03B | 18.36 | 14.14% | 1.49% | 2.59% | 7.66% | |
65 Neutral | $3.85B | 27.29 | 3.23% | 3.87% | 0.21% | -12.02% | |
64 Neutral | $3.84B | 13.30 | 7.30% | 4.54% | 26.09% | -19.05% | |
64 Neutral | $12.61B | 9.79 | 7.95% | 16985.69% | 12.77% | -3.98% |
* Financial Sector Average
Performance Comparison
AUB
Atlantic Union Bankshares
29.10
-3.36
-10.35%
ABCB
Ameris Bancorp
60.16
11.01
22.40%
ASB
Associated Banc-Corp
22.96
1.64
7.69%
BANF
BancFirst
121.51
31.25
34.62%
AX
Axos Financial
67.67
7.99
13.39%
IBOC
International Bancshares
62.74
3.90
6.63%
Atlantic Union Bankshares Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 10.44%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced sentiment, with notable achievements in margin expansion, deposit growth, and a successful acquisition, offset by concerns about economic uncertainty, increased loan loss provisions, and higher noninterest expenses.Q1-2025 Updates
Positive Updates
Net Interest Margin Expansion
The company reported a 12 basis point expansion in net interest margin for the first quarter.
Deposit Growth Achievement
Atlantic Union Bankshares achieved a 2.1% annualized deposit growth in the first quarter.
Noninterest-Bearing Deposits Increase
Noninterest-bearing deposits increased by $194 million, representing 22% of total deposits.
Sandy Spring Acquisition Completion
The acquisition of Sandy Spring was completed ahead of schedule, with the expectation of accelerating cost savings.
Credit Quality and Low Charge-Offs
Credit remained solid with annualized net charge-offs at five basis points and otherwise mild credit trends.
Loan Growth Expected Post-Acquisition
The company expects mid-single-digit loan growth for the year and has a strong pipeline.
Negative Updates
Loan Loss Provision Increase
A $17.6 million loan loss provision was booked due to increased economic uncertainty and the risk of a national recession.
Decrease in Noninterest Income
Noninterest income decreased by $6 million to $29.2 million, driven by declines in loan-related interest rate swap fees.
Increased Noninterest Expense
Noninterest expense increased by $4.5 million to $134.2 million in the first quarter.
Economic Uncertainty and Recession Risk
The company noted increased uncertainty in the economic outlook and the elevated risk of a national recession.
Potential Impact of Tariffs
Concerns were raised about the potential impact of new trade policies and tariffs on the economy.
Company Guidance
In the first quarter of 2025, Atlantic Union Bankshares reported several key financial metrics. The net interest margin expanded by 12 basis points, while the cost of funds decreased by 18 basis points. Average loan growth was 1.3% annualized quarter-over-quarter, despite loans held for investment decreasing by 0.9% annualized due to late quarter payoffs and credit paydowns. Deposit growth was 2.1% annualized, with noninterest-bearing deposits increasing by $194 million, representing 22% of total deposits. The credit quality remained solid with a net charge-off ratio of five basis points, and a loan loss provision expense of $17.6 million was recorded, raising the allowance for loan losses to 1.05% of loans held for investment. The company expects a full-year net charge-off ratio between fifteen and twenty-five basis points, with no forecasted recession but acknowledging economic uncertainty. The updated financial outlook includes the impact of the Sandy Spring acquisition, projecting year-end loan balances of $28-29 billion and deposit balances of $31-32 billion, with net interest margin expected to be 3.75-4.0% for the full year.Atlantic Union Bankshares Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Atlantic Union Completes Merger with Sandy Spring Bancorp
Neutral
Apr 24, 2025
Atlantic Union Bankshares reported a net income of $46.9 million for the first quarter of 2025, with earnings per share of $0.53. The company completed its merger with Sandy Spring Bancorp on April 1, 2025, acquiring 53 branches and enhancing its presence in Virginia and Maryland. The merger is expected to accelerate cost savings and strengthen Atlantic Union’s market position as the largest regional banking franchise in the lower Mid-Atlantic. Despite a solid start to the year with net interest margin expansion and loan growth, the company increased its loan loss reserves due to economic uncertainties.
Spark’s Take on AUB Stock
According to Spark, TipRanks’ AI Analyst, AUB is a Neutral.
Atlantic Union Bankshares has strong revenue growth and a stable financial position, but faces risks from declining margins and cash flows. The recent merger and strategic acquisitions are positive developments, though technical indicators suggest caution. The stock’s valuation appears attractive, potentially offering opportunities for investors.
To see Spark’s full report on AUB stock, click here.
Delistings and Listing ChangesM&A Transactions
Atlantic Union Bankshares Completes Merger with Sandy Spring
Positive
Apr 1, 2025
On April 1, 2025, Atlantic Union Bankshares Corporation completed its merger with Sandy Spring Bancorp, Inc., creating the largest regional banking franchise in the lower Mid-Atlantic. The merger, valued at approximately $1.3 billion, strengthens Atlantic Union’s presence in Virginia and Maryland and is expected to deliver long-term shareholder value. As a result of the merger, Sandy Spring’s subsidiary bank was merged into Atlantic Union Bank, and Sandy Spring Common Stock was delisted from Nasdaq.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.