Yahoo Finance

• Net Income: $73.4 million for the third quarter.

• Earnings Per Share (EPS): $0.82 per common share.

• Adjusted Operating Earnings: $74.5 million or $0.83 per common share.

• Adjusted Operating Return on Tangible Common Equity: 19.2% in the third quarter.

• Adjusted Operating Return on Assets: 1.25% in the third quarter.

• Efficiency Ratio: 52.2% on an adjusted operating basis.

• Total Allowance for Credit Losses: $177.6 million, representing 97 basis points of total loans.

• Provision for Credit Losses: $2.6 million in the third quarter.

• Net Charge-Offs: Approximately $700,000 or 1 basis point annualized.

• Net Interest Income: $186.8 million, down approximately $1.5 million from the second quarter.

• Net Interest Margin: 3.38%, a decrease of 8 basis points from the previous quarter.

• Non-Interest Income: Increased by $10.5 million to $34.3 million for the third quarter.

• Non-Interest Expenses: Decreased by $27.4 million to $122.6 million for the third quarter.

• Loans Held for Investment: $18.3 billion, a decrease of approximately $10 million from the prior quarter.

• Total Deposits: $20.3 billion, an increase of $304 million or approximately 6.1% annualized from the prior quarter.

• Warning! GuruFocus has detected 6 Warning Sign with AUB.

Release Date: October 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Atlantic Union Bankshares Corp (NYSE:AUB) announced a merger with Sandy Spring Bancorp, creating a formidable regional bank in the Mid-Atlantic with $39 billion in assets.

• The merger is expected to enhance shareholder value through increased profitability, growth potential, and scale.

• AUB reported strong financial results for Q3 2024, with adjusted operating earnings up 32.3% from the previous quarter.

• The company demonstrated strong asset quality with annualized net charge-offs of just 1 basis point in Q3.

• AUB's deposit base grew by 6.1% on a linked-quarter annualized basis, indicating strong customer retention and growth.

Negative Points

• Loan growth was relatively flat in Q3, with a slight decline of 0.2% due to clients waiting for Federal Reserve rate cuts and increased commercial real estate payoffs.

• The company is winding down its indirect auto portfolio, which reduced loan balances by approximately $42 million during the quarter.

• AUB experienced modest core net interest margin compression, with a decrease of 8 basis points from the previous quarter.

• The merger with Sandy Spring Bancorp involves significant costs, including $115 million in after-tax merger-related expenses.

• The planned sale of up to $2 billion in commercial real estate loans to reduce concentration ratios may impact earnings due to the associated discount and loss of accretion income.