Investing.com | Editor Venkatesh Jartarkar
Published Oct 20, 2023 03:11AM ET
Atlantic Union Bankshares (NYSE:AUB) delivered robust operating results for the third quarter of 2023, backed by strategic measures including expense reductions, a merger agreement with American National Bankshares (NASDAQ:AMNB), and balance sheet repositioning for a higher interest rate environment. The company anticipates loan growth and fully tax equivalent net interest income to increase in 2023, projecting positive adjusted operating leverage for the year. Despite some economic uncertainty, the company remains optimistic about its prospects for sustainable growth and shareholder value.
Key takeaways from the earnings call include:
The merger with American National Bankshares is viewed as a growth opportunity, particularly in North Carolina, where Atlantic Union Bank has a presence in real estate and plans to leverage American National's commercial and industrial capabilities. The bank's management also expects 2% growth in service charges and trust fees, driven by net client growth and debit card interchange.
During the earnings call, executives also discussed their plans for expansion in Roanoke and Southern Virginia, expressing optimism about the commercial and industrial markets in the area. The bank aims to serve small and mid-sized businesses, positioning itself as a challenger to larger institutions.
In terms of credit, the bank projects charge-offs of 15 to 20 basis points annually and feels positive about its credit position and the stability of the economy. The bank expects deposit remixing to slow down but continue, with deposits moving into higher-yielding products.
Regarding interest rates, the bank expects new loans to be priced around 7% on average, with fixed-rate loans potentially seeing a slight increase due to higher term rates. The bank anticipates deposit rates to increase in the first and second quarters, offset by loan yields increasing as well.
Overall, Atlantic Union Bank (NASDAQ: AUB) remains well-capitalized and optimistic about its prospects for sustainable growth and shareholder value in the future. The company concluded the call by expressing anticipation for the next call in three months. For more insights and tips on Atlantic Union Bank, visit InvestingPro, which offers five additional tips and a wealth of real-time metrics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.