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 Bank shares a first‑quarter performance that blends disciplined execution with a successful Sandy Spring Bank integration. Net interest income rose 4 basis points, adjusted operating earnings hit $126.2 million or $0.89 per share, and the bank posted a 19.6% return on tangible common equity. The firm’s valuation sits at a P/E of 0.03 and a dividend yield of 1.97%, underscoring a heavily discounted yet attractive equity profile.
Publication Date: Apr -22
Adjusted operating earnings surged to $126.2 million, a 7% increase YoY, reflecting a 4‑basis‑point lift in net interest margin (NIM) to 3.95% after excluding accretion income. The bank’s earnings capacity is reinforced by a robust loan pipeline and a 2.2% annualized loan growth, bringing total loans to $27.9 billion.
Credit quality improved markedly, with a 2‑basis‑point annualized net charge‑off ratio and a 6‑basis‑point drop in nonperforming assets to 0.36%. The new reserve methodology, segmenting Commercial Real Estate and C&I, is expected to reduce allowance volatility and support the bank’s 10–15‑basis‑point charge‑off guidance for 2026.
Deposits grew to $30.4 billion, offsetting a planned reduction in high‑cost broker deposits that now represent only 2% of total deposits. The bank’s liquidity strategy remains flexible, allowing future broker deposit expansion if needed, while maintaining a strong deposit base that supports its NIM and funding mix.
Atlantic Union maintains its 2026 guidance: loan balances of $29–30 billion and deposits of $31–32 billion. The firm projects a 3.90–4.00% tax‑equivalent NIM, $220–230 million in non‑interest income, and a 12–15% growth in tangible book value per share. The bank plans a share‑buyback once CET1 reaches 10.5%.
With a P/E of 0.03, a free cash‑flow yield of 41.3%, and a dividend yield of 1.97%, Atlantic Union trades well below peers, offering a compelling upside if the bank’s 2026 targets materialize. The low P/E reflects market undervaluation, while the high free‑cash‑flow yield signals strong liquidity and potential for dividend expansion.
Atlantic Union Bankshares Corp (AUB) Stock Down 3.0% -- Now Undervalued? GF Score: 80/100
Apr -21
Atlantic Union Bankshares Corporation (AUB) Q1 2026 Earnings Call Transcript
Apr -21
Compared to Estimates, Atlantic Union (AUB) Q1 Earnings: A Look at Key Metrics
Apr -21
Atlantic Union (AUB) Q1 Earnings Top Estimates
Apr -21
Atlantic Union Bankshares Reports First Quarter Financial Results
Apr -21
Critical Contrast: Atlantic Union Bankshares (NASDAQ:AUB) and Sberbank of Russia (OTCMKTS:SBRCY)
Apr -15
Analysts Set Atlantic Union Bankshares Co. (NASDAQ:AUB) Target Price at $43.17
Apr -14
Head to Head Comparison: Sberbank of Russia (OTCMKTS:SBRCY) and Atlantic Union Bankshares (NASDAQ:AUB)
Apr -08
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: 6.0
Growth: 5.9
Quality: 7.2
Yield: 6.0
Momentum: 5.5
Volatility: 7.0
1-Year Total Return ->
Value: 6.2
Growth: 6.3
Quality: 7.5
Yield: 6.0
Momentum: 5.0
Volatility: 6.3
1-Year Total Return ->
Value: 6.2
Growth: 5.2
Quality: 7.0
Yield: 8.0
Momentum: 2.5
Volatility: 6.7
1-Year Total Return ->
Value: 3.2
Growth: 7.8
Quality: 5.7
Yield: 2.0
Momentum: 7.0
Volatility: 7.3
1-Year Total Return ->
Value: 5.3
Growth: 5.4
Quality: 6.9
Yield: 5.0
Momentum: 2.5
Volatility: 7.7
1-Year Total Return ->
Value: 5.9
Growth: 5.8
Quality: 6.3
Yield: 4.0
Momentum: 3.5
Volatility: 7.0
1-Year Total Return ->