The Pioneer Of Seeking Alpha's BAD BEAT Investing, Quad 7 Capital is a team of 7 analysts with a wide range of experience sharing investment opportunities for nearly 12 years. They are best known for their February 2020 call to sell everything & go short, & have been on average 95% long 5% short since May 2020. The broader company has expertise in business, policy, economics, mathematics, game theory, & the sciences. They share both long & short trades & invest personally in equities they discuss within the ...

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings available to common shareholders were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [16][17] - The total allowance for credit losses decreased to $320 million, down approximately $22.4 million from the second quarter, with net charge-offs increasing to $38.6 million or 56 basis points annualized [17][18] - Tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the second quarter, while the reported net interest margin remained steady at 3.83% [20][21] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. The company expects loan balances to end the year between $27.7 billion and $28 billion [8][27] - Non-interest income decreased to $51.8 million, primarily due to a $15.7 million preliminary pretax gain on the CRE loan sale in the prior quarter compared to a $4.8 million pretax loss in the current quarter [22] - Adjusted operating non-interest income increased to $56.6 million, driven by a $4.2 million increase in loan-related interest rate swap fees [23] Market Data and Key Metrics Changes - The company maintains a well-diversified portfolio, with approximately 23% of total loans in the Washington metro area and the remaining 77% across a broader footprint [12] - The unemployment rate in the greater Washington, D.C. region stood at 3.6%, well below the national average of 4.3% [14] - The company is monitoring the impact of government employment reductions and the government shutdown, but believes the economic data indicates resilience in the market [11][14] Company Strategy and Development Direction - The integration of the Sandy Spring acquisition is progressing smoothly, with expectations to achieve cost-savings targets and enhanced earnings power by 2026 [7][15] - The company aims to deliver sustainable growth and top-tier financial performance, leveraging strategic advantages gained from the acquisition and continued organic growth opportunities [7][15] - The focus remains on disciplined execution and the integration of Sandy Spring, with plans to capitalize on expanded markets and pursue new growth opportunities in North Carolina [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, reaffirming the forecast for the full year 2025 net charge-off ratio to be between 15 and 20 basis points [11] - The company anticipates some increases in unemployment rates across its markets but expects these to remain manageable and below the national average [14] - Management highlighted the resilience of government contractors and essential services during government shutdowns, indicating a positive outlook for the government contractor finance portfolio [13][89] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend amount [26] - The full-year financial outlook for 2025 includes preliminary estimates of purchase accounting adjustments related to the Sandy Spring acquisition [27][30] Q&A Session Summary Question: Loan growth outlook and sustainability - Management expects mid-single-digit loan growth for next year, with potential for high single-digit growth in a more normalized environment, emphasizing strength in specialty lines [36][37] Question: Expense outlook and efficiency ratio - The efficiency ratio is expected to be in the mid-40s, inclusive of investments in North Carolina, with a focus on maintaining a flat expense base [40][41] Question: Credit trends and health of the portfolio - Overall credit trends appear strong, with low non-performing assets and past dues, despite two specific charge-offs [70][72] Question: Impact of government shutdown on operations - Management believes government contractors will remain resilient, drawing on lines of credit during shutdowns, and does not foresee significant issues arising from the current situation [89][90]

Financial Data and Key Metrics Changes - The reported net income available to common shareholders for Q3 2025 was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [18][19] - The total allowance for credit losses decreased to $320 million, down from $342.4 million in the previous quarter, with the total allowance as a percentage of total loans held for investment decreasing to 117 basis points from 125 basis points [19] - The tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the previous quarter, while the net interest margin remained steady at 3.83% [20][21] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. Non-interest bearing deposits grew by approximately 4% annualized in Q3 [9][10] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a loss related to the final CRE loan sale settlement [21] - Reported non-interest expense decreased by $41.3 million to $238.4 million, driven by a decline in merger-related costs associated with the Sandy Spring acquisition [22] Market Data and Key Metrics Changes - The Greater Washington DC region showed resilience despite concerns over government employment reductions and the government shutdown, with unemployment rates in Maryland and Virginia at 3.6%, below the national average of 4.3% [14][16] - The company maintains a diversified portfolio, with approximately 23% of total loans in the Washington Metro Area, and the remaining 77% across broader markets [14][16] Company Strategy and Development Direction - The company is focused on delivering sustainable growth and top-tier financial performance, leveraging strategic advantages from the Sandy Spring acquisition while pursuing organic growth opportunities in Virginia and North Carolina [8][17] - The integration of Sandy Spring is progressing smoothly, with expectations to achieve cost savings targets and enhanced earnings power by 2026 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's asset quality, with non-performing assets at 0.49% of loans held for investment and a forecast for the full year 2025 net charge-off ratio to remain between 15 and 20 basis points [12][13] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [31][32] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend [24] - The financial outlook for year-end loan balances is projected to be between $27.7 billion and $28 billion, with deposit balances expected between $30.8 billion and $31 billion [25] Q&A Session Summary Question: What are the expectations for loan growth in 2026? - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment [31][32] Question: What is the outlook for expenses and efficiency ratios? - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [36][37] Question: How is the company addressing competition in the market? - The company is experiencing increased competition, particularly from traditional banks returning to the market, but remains committed to consistent capital provision [90][92] Question: What are the revenue synergies expected from the Sandy Spring acquisition? - The acquisition allows for expanded lending capabilities and additional services such as interest rate hedging, with a focus on new client acquisition [94][96]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $89.2 million, with earnings per common share at $0.63. Adjusted operating earnings available to common shareholders were $119.7 million or $0.84 per common share, resulting in an adjusted operating return on tangible common equity of 20.1% and an adjusted operating return on assets of 1.3% [15][16] - Total allowance for credit losses decreased to $320 million, down approximately $22.4 million from the second quarter, with net charge-offs increasing to $38.6 million or 56 basis points annualized [16][17] - Tax equivalent net interest income was $323.6 million, a decrease of $2.1 million from the second quarter, with a steady net interest margin at 3.83% [18][19] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 0.5% annualized, with average loan growth quarter over quarter at 4.3% annualized. The company expects year-end loan balances to range between $27.7 billion and $28 billion [6][8] - Non-interest income decreased by $29.7 million to $51.8 million, primarily due to a pretax loss related to the final CRE loan sale settlement [20] - Adjusted operating non-interest income increased by $5.1 million to $56.6 million, driven by higher loan-related interest rate swap fees and increased equity method investment income [21] Market Data and Key Metrics Changes - The company maintains a well-diversified portfolio, with approximately 23% of total loans in the Washington metro area and 77% across a broader footprint. Non-performing assets as a percentage of loans held for investment remained low at 0.49% [10][11] - The unemployment rate in Maryland to Virginia stood at 3.6%, below the national average of 4.3%, indicating resilience in the market despite government employment reductions and shutdown concerns [12] Company Strategy and Development Direction - The integration of Sandy Spring Bank is progressing smoothly, with expectations to achieve cost-savings targets and enhanced earnings power visible on a reported basis by 2026 [4][5] - The company aims to deliver sustainable growth and top-tier financial performance, leveraging strategic advantages gained from the Sandy Spring acquisition and continued organic growth opportunities [5][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, reaffirming the forecast for the full year 2025 net charge-off ratio to be between 15 and 20 basis points [10] - The company anticipates mid-single-digit loan growth for 2026, with potential for high single-digit growth in a more normalized environment [33][34] Other Important Information - The company paid a common stock dividend of $0.34 per share, an increase of 6.3% from the previous year's third quarter dividend amount [24] - Full-year projections include net interest income between $1.16 billion and $1.165 billion, with an expected net interest margin for the full year between 3.75% and 3.8% [25][26] Q&A Session Summary Question: Loan growth outlook for 2026 - Management expects mid-single-digit loan growth for 2026, with potential for high single-digit growth in a normalized environment, supported by strong pipelines and new client acquisition [33][34] Question: Expense outlook and efficiency ratio - The efficiency ratio is expected to be in the mid-40s for 2026, with a focus on maintaining a flat expense base while expanding in North Carolina [35][36] Question: Credit health and trends - Overall credit trends are positive, with low non-performing assets and past dues. The two charge-offs were isolated events, and management remains confident in the portfolio's health [60][61]

Q3 2025 EARNINGS PRESENTATION NYSE: AUB October 23, 2025 FORWARD-LOOKING STATEMENTS This presentation and statements by our management may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include, without limitation, statements regarding our acquisition of Sandy Spring Bancorp, Inc. ("Sandy Spring") and expectations with regard to the benefits of the Sandy Spring acquisition, statements regardin ...

Core Viewpoint - Atlantic Union (AUB) reported quarterly earnings of $0.84 per share, slightly missing the Zacks Consensus Estimate of $0.85 per share, but showing an increase from $0.83 per share a year ago [1][2] Financial Performance - The company posted revenues of $375.38 million for the quarter ended September 2025, which was 0.7% below the Zacks Consensus Estimate and an increase from $221.12 million year-over-year [2] - Over the last four quarters, Atlantic Union has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - Atlantic Union shares have declined approximately 10.2% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $381.18 million, and for the current fiscal year, it is $3.03 on revenues of $1.37 billion [7] - The estimate revisions trend for Atlantic Union was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Banks - Northeast industry, to which Atlantic Union belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - For Q3 2025, Atlantic Union reported net income of $89.2 million and adjusted operating earnings of $119.7 million, with diluted earnings per share of $0.63 and $0.84 respectively[1][2]. - Net income available to common shareholders for Q3 2025 was $89,173,000, significantly higher than $73,448,000 in Q3 2024, marking a 21.4% increase[37]. - Net income for the three months ended September 30, 2025, was $92,140,000, compared to $19,791,000 for the previous quarter and $76,415,000 for the same period last year, reflecting a significant increase[41]. - Adjusted operating earnings for Q3 2025 were $122,693,000, compared to $77,497,000 in Q3 2024, an increase of 58.2%[37]. - Basic earnings per common share for the nine months ended September 30, 2025, was $1.23, down from $1.68 in the same period last year, indicating a decrease of 26.8%[44]. Income and Expenses - Noninterest income decreased by $29.7 million to $51.8 million, primarily due to a pre-tax loss related to the final CRE loan sale settlement[15]. - Noninterest expense decreased by $41.3 million to $238.4 million, mainly due to a reduction in merger-related costs associated with the Sandy Spring acquisition[17]. - Total noninterest expenses for the nine months ended September 30, 2025, were $652,327 thousand, compared to $377,859 thousand for the same period in 2024, reflecting an increase of 72.3%[44]. Assets and Liabilities - Total assets at September 30, 2025, were $37.1 billion, a decrease of approximately 2.3% from the previous quarter, but an increase of 49.5% from the same period last year[21]. - Total liabilities decreased to $32,510,394 thousand from $33,177,602 thousand in the previous quarter[45]. - Total deposits were $30.7 billion, a decrease of 3.9% from the prior quarter but an increase of 51.0% from September 30, 2024, attributed to the addition of acquired deposits from Sandy Spring[25]. Credit Quality - Nonperforming assets (NPAs) as a percentage of total loans held for investment decreased to 0.49%, with total NPAs at $133.2 million, down from $163.4 million in the prior quarter[7][8]. - The allowance for credit losses (ACL) was $320.0 million, a decrease of $22.4 million from the prior quarter, with the ACL as a percentage of total loans held for investment at 1.17%[11][12]. - The total ACL increased by 80.0% year-over-year from $177,628 thousand to $319,986 thousand[39]. Capital and Ratios - Common equity Tier 1 capital ratio improved to 9.92% as of September 30, 2025, compared to 9.77% in the previous quarter and the same period last year[27]. - The leverage ratio (Tier 1 capital to average assets) stood at 8.92% as of September 30, 2025, up from 9.27% a year ago[38]. - Tangible common equity to tangible assets ratio improved to 7.69% from 7.29% year-over-year[38]. Growth Metrics - Total investments reached $5.3 billion, up 44.3% from June 30, 2025, and 50.3% from September 30, 2024, primarily due to the Sandy Spring acquisition[24]. - Average assets for the nine months ended September 30, 2025, were $37,377,383 thousand, compared to $24,613,518 thousand in the same period last year, showing a growth of 51.7%[38]. - The company reported a total of $5,310,629 thousand in securities, up from $3,533,143 thousand a year ago, reflecting a 50.4% increase[38]. Operational Efficiency - The efficiency ratio (FTE) improved to 63.52% in Q3 2025 from 55.44% in Q3 2024, indicating better cost management[37]. - The efficiency ratio improved to 64.28% for the three months ended September 30, 2025, down from 69.42% in the previous quarter and 66.08% a year ago, demonstrating enhanced operational efficiency[41]. Future Outlook - The company plans to hold a conference call on October 23, 2025, to review financial results and recent activities[31]. - The company emphasizes the importance of non-GAAP financial measures for understanding ongoing operations and performance trends[33].

Core Insights - Atlantic Union has successfully completed the conversion of Sandy Spring Bank, marking a significant milestone in its operational strategy [1] Company Summary - The conversion process signifies Atlantic Union's commitment to enhancing its service offerings and operational efficiency [1] - This strategic move is expected to strengthen Atlantic Union's market position and expand its customer base [1]

Group 1 - Atlantic Union Bankshares Corporation (NYSE: AUB) has seen its shares increase by approximately 50% after a significant decline of nearly 50% over a five-month period ending in April 2025 [2] - The Insiders Forum focuses on small and mid-cap stocks that are being actively purchased by insiders, aiming to outperform the Russell 2000 benchmark over time [2] Group 2 - The Insiders Forum portfolio consists of 12-25 top stocks across various market sectors that are attractively valued and have experienced notable recent insider purchases [2]

Core Insights - Atlantic Union Bankshares Corporation (NYSE: AUB) reported an adjusted profit of $0.95 per share for Q2 2025, exceeding expectations by $0.15, marking the best performance for the company in recent times [1] Financial Performance - The adjusted profit of $0.95 per share represents a significant achievement for Atlantic Union Bankshares, indicating strong financial health and operational efficiency [1]