Q3 EPS Slips to $0.94 as Margin Compresses, Credit Stays Clean
AUB sits 22% above its 52-week low of $30.87.
Summary
Atlantic Union earned $136.6 million, or $0.94 per diluted share ($0.96 adjusted), down from $1.11 in Q2 as net interest margin (FTE) compressed 6 bps to 3.88% on higher deposit and borrowing costs. The quarter included a $2.7 million pre-tax loss on extinguishing the 2029 subordinated notes, funded by the $250 million 6.25% notes issued in July. Credit looks solid: NPAs fell to 0.37% of loans, net charge-offs were 0.03%, and the provision dropped to $5.7 million from $11.7 million. Loans grew $624 million (8.6% annualized) and deposits rose $498 million, though past-due accruing loans ticked up to 0.34% from 0.28%. The company bought back 1.5 million shares for $62.5 million at an average $41.38, leaving $177.5 million on the $250 million authorization. The 9:00 a.m. ET call will be where management addresses the margin squeeze and the North Carolina build-out.
At the time of this announcement, AUB was trading at $37.64 on NYSE in the Finance sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $30.87 to $43.62. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.