Atlantic Union Q4 net income rises, helped by Sandy Spring acquisition

Overview

• Regional bank's Q4 net income rises, driven by Sandy Spring Bancorp acquisition

• Net interest income for Q4 increased due to lower deposit costs

• Company reported decrease in nonperforming assets and net charge-offs

Outlook

• Company did not provide specific financial guidance for the upcoming quarter or year in its press release

Result Drivers

• SANDY SPRING ACQUISITION - The acquisition contributed to higher net interest income and overall earnings, per CEO John C. Asbury

• LOWER DEPOSIT COSTS - Decrease in interest expense due to lower deposit costs following Federal Reserve rate cuts

• IMPROVED ASSET QUALITY - Decrease in nonperforming assets and net charge-offs, indicating improved asset quality

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Atlantic Union Bankshares Corp is $42.50, about 6.3% above its January 21 closing price of $39.99

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw33t1kwa

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