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Atlantic Union Bankshares Corporation (AUB)
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Atlantic Union Bankshares (AUB) AI Stock Analysis

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AUB

Atlantic Union Bankshares

(NYSE:AUB)

Rating:72Outperform
Price Target:
$36.00
▲(13.64% Upside)
Atlantic Union Bankshares demonstrates a balanced financial performance with strong cash flow and strategic growth initiatives. The recent acquisition and dividend increase are positive, but challenges in return on equity and deposit growth warrant attention.
Positive Factors
Capital Generation
Capital generation and discount valuation suggest potential for share repurchases due to strong profitability and capital generation.
Loan Growth
The loan pipeline increase bodes well for loan growth, with mid-single digit loan growth guidance considered achievable.
Valuation
The upgrade to Strong Buy reflects the attractive valuation for a desirable franchise likely to show significant improvement in financial performance.
Negative Factors
Geographic Risk
There is more risk to AUB's loan growth outlook than peers given their geographic footprint and efforts to gradually diversify their loan portfolio over time.
Loan Growth Risk
There is downside risk to consensus estimates for loan growth on weaker industry-wide demand and as AUB diversifies its loan portfolio from CRE.
Loan Losses Risk
Weaker loan growth and risk of higher idiosyncratic loan losses from reduced government spending contribute to an equal-weight rating.

Atlantic Union Bankshares (AUB) vs. SPDR S&P 500 ETF (SPY)

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 makes money primarily through interest income derived from its loan portfolio and securities. The bank lends to individuals and businesses, earning interest on loans such as mortgages, personal loans, and commercial loans. Additionally, it generates revenue through non-interest income, which includes fees from services like wealth management, account maintenance, transaction services, and mortgage banking. The company also benefits from strategic partnerships and investments that enhance its service offerings and expand its market reach. A significant portion of its earnings comes from the spread between the interest it earns on loans and the interest it pays on deposits, known as the net interest margin.

Atlantic Union Bankshares Earnings Call Summary

Earnings Call Date:Jun 30, 2025
(Q2-2025)
|
% Change Since: 2.42%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the successful integration of the Sandy Spring acquisition, strong loan growth, improved net interest margin, and solid credit quality. However, there were challenges with merger accounting noise, seasonally slow deposit growth, and an elevated NPA percentage.
Q2-2025 Updates
Positive Updates
Successful Sandy Spring Bank Acquisition
The acquisition of Sandy Spring Bank closed on April 1, earlier than anticipated, and has been integrated smoothly, enhancing the company's earnings potential and cultural alignment.
Strong Loan Growth and Business Confidence
Loan growth was approximately 4.0% annualized quarter-over-quarter, exceeding internal expectations with a robust loan pipeline, indicating strong business confidence and anticipated solid growth in the second half of the year.
Improved Net Interest Margin
The reported FTE net interest margin expanded by 38 basis points to 3.83%, and the core net interest margin improved by 8 basis points.
Positive CRE Loan Sale Outcome
The sale of $2 billion of commercial real estate loans exceeded initial pricing estimates, reducing risk, lowering the loan-to-deposit ratio, and increasing capacity for future growth.
Credit Quality Remains Solid
Credit quality remained strong with only 1 basis point of annualized net charge-offs and low past due loans.
Negative Updates
Merger Accounting Noise
The acquisition introduced merger accounting noise, complicating comparisons and leading to a one-time negative impact on credit loss reserves.
Seasonally Slow Deposit Growth
Deposit growth was seasonally slow, with a decrease of $752.8 million on a pro forma basis, and broker deposits were intentionally paid down by approximately $340 million.
Elevated NPA Percentage
Second quarter non-performing assets as a percentage of loans held for investment were 0.60%, reflecting a more conservative approach to loan rating following the Sandy Spring acquisition.
Company Guidance
During the Atlantic Union Bankshares second quarter 2025 earnings call, several key financial metrics and updates were highlighted. The loan-to-deposit ratio at quarter-end was approximately 88%, with a CET1 capital ratio of 9.8% and a bank-level CRE concentration ratio of 284%. The company's reported FTE net interest margin expanded by 38 basis points to 3.83%, and the core net interest margin improved by 8 basis points. Loan growth, adjusted for acquisition effects, was approximately 4.0% annualized quarter-over-quarter, surpassing internal expectations. Atlantic Union Bankshares projected year-end loan balances between $28 billion and $28.5 billion. The sale of $2 billion of commercial real estate loans from Sandy Spring Bank closed successfully, exceeding pricing estimates, which contributed to reducing the loan-to-deposit ratio and increasing growth capacity. Credit quality remained solid, with only 1 basis point of annualized net charge-offs and nonperforming assets comprising 0.60% of loans held for investment. The company revised its forecast for the 2025 net charge-off ratio to be between 15 and 20 basis points. Additionally, Atlantic Union Bankshares is planning an expansion into North Carolina by opening 10 new branches starting in 2026, while maintaining a focus on delivering sustainable growth and top-tier financial performance.

Atlantic Union Bankshares Financial Statement Overview

Summary
Atlantic Union Bankshares demonstrates solid financial standing with consistent revenue and strong cash flow management. While profitability metrics are stable, return on equity is decreasing, reflecting potential inefficiencies in generating returns for shareholders. Cash flow management remains highly effective.
Income Statement
72
Positive
The income statement shows a steady revenue stream with a slight decline in the TTM compared to the previous year. Gross profit margin remains healthy, indicating strong core operations. Net profit margin is stable, though slightly lower in the recent period. The company shows good control over its costs, with improving EBIT and EBITDA margins.
Balance Sheet
65
Positive
The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, suggesting manageable leverage. The equity ratio is robust, indicating solid asset backing. However, the return on equity has been decreasing, reflecting potential inefficiencies in generating returns for shareholders.
Cash Flow
78
Positive
Cash flow analysis reveals strong operating cash flow, supporting a healthy cash generation capability. Free cash flow growth is consistent, and both operating and free cash flow ratios to net income indicate efficient cash utilization. This reflects effective cash management strategies.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.35B1.05B778.96M711.16M784.94M
Gross Profit767.33M670.27M683.76M730.95M599.64M
EBITDA295.11M280.86M325.39M369.49M229.40M
Net Income209.13M201.82M234.51M263.92M158.23M
Balance Sheet
Total Assets24.59B21.17B20.46B20.06B19.63B
Cash, Cash Equivalents and Short-Term Investments2.79B2.60B3.06B4.28B3.03B
Total Debt534.62M1.31B1.71B506.59M840.72M
Total Liabilities21.44B18.61B18.09B17.35B16.92B
Stockholders Equity3.14B2.56B2.37B2.71B2.71B
Cash Flow
Free Cash Flow301.06M272.94M416.82M328.39M202.35M
Operating Cash Flow308.46M278.05M419.67M337.79M231.92M
Investing Cash Flow-295.69M-603.28M-1.28B-345.44M-1.92B
Financing Cash Flow-36.83M383.42M375.18M316.86M1.74B

Atlantic Union Bankshares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price31.68
Price Trends
50DMA
31.34
Positive
100DMA
29.78
Positive
200DMA
33.51
Negative
Market Momentum
MACD
<0.01
Positive
RSI
47.84
Neutral
STOCH
24.93
Neutral
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 31.68 is below the 20-day moving average (MA) of 32.40, above the 50-day MA of 31.34, and below the 200-day MA of 33.51, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.76B11.3217.42%9.00%-2.90%
79
Outperform
$4.63B11.7310.46%1.14%4.72%25.95%
78
Outperform
$4.19B10.2815.20%2.02%4.24%0.38%
74
Outperform
$4.07B17.6314.43%1.50%1.66%15.57%
74
Outperform
$4.00B31.733.07%3.78%-1.23%-34.14%
72
Outperform
$4.51B15.195.18%4.29%37.25%-8.67%
71
Outperform
S$36.38B12.0212.84%4.09%4.29%16.99%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AUB
Atlantic Union Bankshares
31.68
-2.90
-8.39%
ABCB
Ameris Bancorp
66.60
11.87
21.69%
ASB
Associated Banc-Corp
24.29
4.96
25.66%
BANF
BancFirst
122.75
27.14
28.39%
AX
Axos Financial
85.90
21.28
32.93%
IBOC
International Bancshares
69.48
13.78
24.74%

Atlantic Union Bankshares Corporate Events

M&A TransactionsBusiness Operations and Strategy
Atlantic Union Bankshares Acquires Sandy Spring Bancorp
Neutral
Aug 1, 2025

Atlantic Union Bankshares Corporation has issued a handout for investor meetings during the third quarter of 2025, detailing its recent acquisition of Sandy Spring Bancorp, Inc. The release discusses the anticipated benefits of the acquisition, including cost savings and strategic gains, while also addressing potential risks and uncertainties that could impact future performance. The company is focused on expanding its market share, particularly in North Carolina and Maryland, and is navigating various economic and regulatory challenges.

The most recent analyst rating on (AUB) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

Dividends
Atlantic Union Bankshares Announces Increased Quarterly Dividend
Positive
Jul 24, 2025

On July 24, 2025, Atlantic Union Bankshares Corporation announced that its Board of Directors declared a quarterly dividend of $0.34 per share of common stock, reflecting a 6% increase from the previous year. Additionally, a quarterly dividend on the company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, was declared, with a payment of $171.88 per share, equivalent to $0.43 per depositary share, scheduled for September 2, 2025. These announcements indicate the company’s stable financial performance and commitment to returning value to shareholders.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Atlantic Union Bankshares Reports Q2 2025 Financial Results
Positive
Jul 24, 2025

Atlantic Union Bankshares reported its second-quarter financial results for 2025, highlighting a net income of $16.8 million and adjusted operating earnings of $135.1 million. The quarter was marked by the completion of the Sandy Spring Bancorp acquisition on April 1, 2025, which significantly increased the company’s assets and liabilities. The acquisition led to various financial adjustments, including merger-related costs and provisions for credit losses. The company also completed the sale of $2.0 billion in commercial real estate loans, generating a $15.7 million pre-tax gain. These activities reflect Atlantic Union’s strategic focus on sustainable growth and profitability, despite the initial costs associated with the merger.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

Financial Disclosures
Atlantic Union Bankshares to Announce Q2 2025 Results
Neutral
Jul 2, 2025

On July 2, 2025, Atlantic Union Bankshares Corporation announced it will release its second quarter 2025 financial results on July 24, 2025, before the market opens. Following the release, the company will host a conference call and webcast to discuss the results and recent activities, providing stakeholders with insights into its financial performance and operational updates.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Atlantic Union Bankshares Completes $2 Billion Loan Sale
Positive
Jun 26, 2025

On June 26, 2025, Atlantic Union Bankshares Corporation announced the completion of a significant transaction involving the sale of approximately $2 billion of commercial real estate loans to Blackstone Real Estate Debt Strategies. This sale, part of Atlantic Union’s merger with Sandy Spring Bancorp, allows the company to reduce its CRE concentration and use the proceeds to pay down high-cost deposits and enhance its securities portfolio, demonstrating its strategic execution capabilities and potential for future growth.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

Executive/Board Changes
Atlantic Union Bankshares CFO Retirement Announcement
Neutral
May 22, 2025

On May 22, 2025, Atlantic Union Bankshares announced the planned retirement of Robert M. Gorman, its executive vice president and chief financial officer, effective by March 31, 2026. Gorman, who has been instrumental in the company’s growth from a $4 billion asset community bank to a $40 billion regional leader, will continue in an advisory role post-retirement to ensure a smooth transition as the company conducts a nationwide search for his successor.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

M&A TransactionsFinancial Disclosures
Atlantic Union Bankshares Discusses Sandy Spring Bancorp Acquisition
Positive
May 13, 2025

In a recent announcement, Atlantic Union Bankshares Corporation disclosed information regarding its management’s use of a handout during investor meetings in the second quarter of 2025. The company highlighted its recent acquisition of Sandy Spring Bancorp, Inc., and discussed the expected benefits, including accretion to earnings per share and other financial metrics. The announcement also addressed various risks and uncertainties that could impact the company’s future performance.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

Executive/Board Changes
Atlantic Union Bankshares Appoints New Chief Risk Officer
Neutral
May 13, 2025

On May 13, 2025, Atlantic Union Bankshares Corporation announced the appointment of Bradley S. Haun as the new chief risk officer, succeeding Sherry Williams, who will retire on July 1, 2025. Mr. Haun, who has been with the company since 2011, has held various roles, including executive vice president and chief audit executive, and is expected to bring his experience and leadership to enhance the company’s risk functions.

The most recent analyst rating on (AUB) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Atlantic Union Bankshares stock, see the AUB Stock Forecast page.

Dividends
Atlantic Union Bankshares Declares Quarterly Dividends
Positive
May 6, 2025

On May 6, 2025, Atlantic Union Bankshares Corporation announced its Board of Directors declared a quarterly dividend of $0.34 per share of common stock, maintaining the same rate as the first quarter of 2025 and marking a 6% increase from the second quarter of 2024. Additionally, the Board declared a quarterly dividend on its 6.875% Perpetual Non-Cumulative Preferred Stock, Series A, with dividends payable in early June 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

Shareholder MeetingsBusiness Operations and Strategy
Atlantic Union Bankshares Approves 2025 Stock Incentive Plan
Positive
May 6, 2025

On May 6, 2025, Atlantic Union Bankshares Corporation’s shareholders approved the 2025 Stock and Incentive Plan during the annual meeting. This plan, which replaces the 2021 Plan, reserves up to 2,500,000 shares for various equity awards to motivate employees and directors, aiming to enhance the company’s operational success and shareholder value. The meeting also saw the election of directors, the ratification of Ernst & Young LLP as the independent auditor for 2025, and the approval of executive compensation, reflecting shareholder support for the company’s strategic initiatives.

M&A TransactionsShareholder Meetings
Atlantic Union Bankshares Discusses Sandy Spring Acquisition
Neutral
May 6, 2025

On May 6, 2025, Atlantic Union Bankshares Corporation’s executive officers presented at the Annual Meeting of Shareholders, discussing the company’s recent acquisition of Sandy Spring Bancorp, Inc. The acquisition is expected to enhance earnings per share and improve various financial metrics, although it comes with integration challenges and market uncertainties.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 31, 2025