Core Insights - U.S. small-cap equities experienced modest gains in Q4 2025, supported by a positive macroeconomic backdrop and attractive valuations [1] - The Aristotle Small Cap Equity Fund returned 1.96% in Q4 2025, underperforming the Russell 2000 Index's 2.19% total return [1] - Security selection positively impacted performance, while allocation effects had a negative impact [1] Company Highlights - Atlantic Union Bankshares Corporation (NYSE:AUB) was highlighted as a new addition to the Aristotle Small Cap Equity Fund portfolio [2][3] - As of February 13, 2026, Atlantic Union Bankshares Corporation's stock closed at $40.23, with a one-month return of 4.93% and a twelve-month increase of 7.42% [2] - The company has a market capitalization of $5.734 billion [2] - Concerns regarding DOGE-related cuts created an opportunity for the fund to invest in Atlantic Union Bankshares, which has a diversified customer base and a solid balance sheet [3] - The management team is considered strong, with expectations for capital appreciation for shareholders [3] Hedge Fund Interest - Atlantic Union Bankshares Corporation was held by 22 hedge fund portfolios at the end of Q3 2025, a decrease from 27 in the previous quarter [5] - While the company shows potential, certain AI stocks are viewed as having greater upside potential and lower downside risk [5]

Market Overview - The Australian sharemarket closed flat on February 10, 2026, with the S&P/ASX 200 ending 2.7 points lower at 8,867.40 after a 1.9% rally the previous day [1][9] - The index is currently 2.72% below its 52-week high and has shown virtually no change over the last five days [2][9] Sector Performance - Financials sector declined by 1.1%, primarily due to significant losses in insurance companies [2][9] - 8 out of 11 sectors ended higher, with Information Technology being the best-performing sector, gaining 2.14% [5][9] - Miners advanced by 1% on the back of higher iron ore prices, with BHP Group rising 1.1% and Rio Tinto gaining 1.4% [5][9] Top Gainers - Silex Systems Limited (SLX) led the day's gains, closing at $7.240, up $0.560 or 8.383% [3][9] - Other notable gainers included DroneShield Limited (DRO) up 7.301%, Deep Yellow Limited (DYL) up 7.142%, Zip Co Limited (ZIP) up 6.072%, and Superloop Limited (SLC) up 5.579% [3][9] Bottom Performers - Steadfast Group Limited (SDF) and Insurance Australia Group Limited (IAG) were the bottom performers, down 9.46% and 6.19% respectively [2][9] - AUB Group Limited (AUB) fell by 6.115%, while CSL Limited (CSL) and Suncorp Group Limited (SUN) also experienced declines of 4.979% and 4.237% respectively [2][9] Individual Stock Highlights - Treasury Wine Estates shares rose by 8.1% after resolving a dispute with U.S. distributor Republic National Distributing Company [7][9] - Gold stocks increased by 1.3%, with Genesis Minerals up 2.8% and St Barbara rising 4.4% [6][9] - Energy stocks advanced by 0.6%, with uranium miners Deep Yellow and Paladin Energy up 7.1% and 5.5% respectively [7][9]

Core Viewpoint - Atlantic Union (AUB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Atlantic Union, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively to this trend [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The upgrade of Atlantic Union to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - Analysts have raised their earnings estimates for Atlantic Union, with the Zacks Consensus Estimate increasing by 2.6% over the past three months, projecting earnings of $3.71 per share for the fiscal year ending December 2026, showing no year-over-year change [8].

Group 1 - The article discusses the Q4 earnings report from Atlantic Union Bankshares Corporation (AUB), highlighting it as a positive outcome following a challenging year for the bank [1] - The report is part of a broader coverage of regional banks, indicating a focus on the financial performance and market positioning of these institutions [1] - The analysis emphasizes the expertise of the team behind the report, which includes a diverse range of backgrounds in business, policy, economics, and other fields [1] Group 2 - The article mentions the investment strategy of BAD BEAT Investing, which focuses on short- and medium-term investments, income generation, and momentum trades [1] - It outlines the benefits of BAD BEAT Investing, including educational resources for investors, well-researched trade ideas, and access to trading tools [1] - The article does not provide any specific stock recommendations or investment advice, maintaining a neutral stance on the suitability of investments for individual investors [2]

Core Viewpoint - Atlantic Union Bankshares Corporation (AUB) reported positive earnings for Q4, indicating a strong performance following a challenging year [1]. Group 1: Company Performance - The earnings report from AUB reflects a recovery and positive trajectory for the bank after a difficult year [1]. Group 2: Investment Insights - The analysis emphasizes the importance of understanding market dynamics and provides a framework for investors to enhance their trading skills through well-researched ideas and tools [1].

Financial Data and Key Metrics Changes - Atlantic Union Bankshares reported a net income available to common shareholders of $109 million for Q4 2025, with earnings per common share at $0.77, and for the full year 2025, net income was $261.8 million, with earnings per common share at $2.03 [16][17] - Adjusted operating earnings for Q4 were $138.4 million, or $0.97 per common share, resulting in an adjusted operating return on tangible common equity of 22.1% and an adjusted operating efficiency ratio of 47.8% [17][18] - The FTE net interest margin increased by 13 basis points to 3.96%, driven by reduced deposit costs while holding loan yields relatively flat [9][20] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 6.3% annualized, ending the year at $27.8 billion, with expectations for 2026 year-end loan balances to range between $29 billion and $30 billion [7][28] - Fee income was strong, primarily driven by loan-related interest rate swap fees and fiduciary and asset management fees, with about 27% of interest rate swap income coming from former Sandy Spring customers [10][20] - Non-interest income increased to $57 million for Q4, primarily due to a recovery from a pre-tax loss in the prior quarter related to the sale of CRE loans [23] Market Data and Key Metrics Changes - Virginia's unemployment rate remained unchanged at 3.5%, while Maryland's rate rose to 4.2% and North Carolina's rate edged up to 3.8%, all remaining below the national average [11][12] - The company anticipates manageable unemployment levels in Virginia, Maryland, and North Carolina, consistent with Moody's forecasts [12] Company Strategy and Development Direction - The company aims to leverage the strategic advantages gained from the Sandy Spring acquisition to drive sustainable growth and long-term value creation [7][14] - Focus will shift to demonstrating the franchise's earnings power and capital generation ability, with no additional acquisitions planned during this phase [14][15] - The company is committed to expanding its presence in North Carolina and pursuing organic growth opportunities across specialty lines [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strategic goals associated with the Sandy Spring acquisition, with expectations for reduced merger-related expenses in Q1 2026 [5][6] - The company remains optimistic about loan growth despite economic uncertainties, with a strong pipeline and growing client confidence [8][51] - Management noted that 2025 was a pivotal year, successfully navigating merger integration and macroeconomic challenges while delivering strong operating results [15] Other Important Information - The company paid a common stock dividend of $0.37 per share, an increase of 8.8% from the previous quarter [27] - The total allowance for credit losses was $321.3 million, with a net charge-off ratio of 17 basis points for the full year, within guidance [18][19] Q&A Session Summary Question: Clarification on 2026 guidance - Management reiterated guidance for net interest income between $1.35 billion and $1.375 billion, with factors influencing the higher end including elevated accretion income and lower deposit costs [36][37] Question: Deposit remix and beta forecast - Management confirmed a forecast of mid-50s beta for interest-bearing deposits, with recent remix driven by post-conversion adjustments [40][42] Question: Loan pipeline and near-term growth - Management indicated a modest increase in the loan pipeline, with positive feedback from market leaders contributing to confidence in mid-single digit loan growth guidance [50][51] Question: Outlook for deposit growth - Management expects about 3%-4% deposit growth for 2026, driven by treasury management opportunities in the former Sandy Spring footprint [89] Question: Cost savings from Sandy Spring deal - Management noted that most cost savings from the Sandy Spring acquisition are reflected in current numbers, with some residual benefits expected in Q1 [95][96]

Financial Data and Key Metrics Changes - Atlantic Union Bankshares reported a net income of $109 million for Q4 2025, with earnings per common share at $0.77, and for the full year, net income was $261.8 million, with earnings per common share at $2.03 [14][15] - Adjusted operating earnings for Q4 were $138.4 million, or $0.97 per common share, resulting in an adjusted operating return on tangible common equity of 22.1% and an adjusted operating efficiency ratio of 47.8% [15][16] - The total allowance for credit losses was $321.3 million, a slight increase from the previous quarter, with a net charge-off ratio of one basis point for Q4 [16][17] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 6.3% annualized, ending the year at $27.8 billion, with expectations for 2026 loan balances to range between $29 and $30 billion [6][24] - Fee income increased, driven by loan-related interest rate swap fees and fiduciary and asset management fees, with 27% of interest rate swap income coming from former Sandy Spring customers [9][21] - Non-interest income for Q4 was $57 million, an increase from the prior quarter, primarily due to higher loan-related interest rate swap fees [21] Market Data and Key Metrics Changes - Virginia's unemployment rate remained stable at 3.5%, while Maryland's increased to 4.2% and North Carolina's rose to 3.8%, all below the national average [10][11] - The company expects manageable unemployment levels in its markets, consistent with Moody's forecasts [11] Company Strategy and Development Direction - The company aims to leverage the strategic advantages gained from the Sandy Spring acquisition to drive sustainable growth and long-term value creation [6][12] - Focus will shift to demonstrating the franchise's earnings power and capital generation ability, with no additional acquisitions planned in the near term [12][13] - The company is committed to expanding its presence in North Carolina and enhancing its specialty banking services [12][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strategic goals associated with the Sandy Spring acquisition, anticipating a decline in merger-related expenses in Q1 2026 [4][5] - The company remains optimistic about loan growth despite economic uncertainties, with a strong pipeline and growing client confidence [7][52] - Management highlighted the importance of maintaining a disciplined approach to cost management and capital allocation [12][104] Other Important Information - The company paid a common stock dividend of $0.37 per share, an increase of 8.8% from the previous quarter [25] - Tangible book value per common share increased approximately 4% to $19.69 in Q4 [25] Q&A Session Summary Question: Clarification on 2026 guidance and net interest income range - Management indicated that achieving the higher end of the net interest income guidance depends on elevated accretion income and continued reduction in deposit costs [36][41] Question: Loan pipeline increase and near-term loan growth - Management confirmed a modest increase in the loan pipeline, with positive feedback from market leaders indicating strong near-term growth potential [50][52] Question: Deposit growth outlook for next year - Management guided for about 3%-4% deposit growth in 2026, supported by treasury management opportunities [86] Question: Cost savings from the Sandy Spring deal - Management noted that most cost savings are reflected in current numbers, with some residual benefits expected in Q1 [92][93] Question: Non-credit-related customer losses - Management clarified that elevated non-credit-related losses were primarily due to episodic fraud incidents [110]

Financial Data and Key Metrics Changes - Atlantic Union Bankshares reported a net income available to common shareholders of $109 million for Q4 2025, with earnings per common share at $0.77, and for the full year 2025, net income was $261.8 million, with earnings per common share at $2.03 [14][15] - Adjusted operating earnings for Q4 were $138.4 million, or $0.97 per common share, resulting in an adjusted operating return on tangible common equity of 22.1% and an adjusted operating efficiency ratio of 47.8% [15][16] - The total allowance for credit losses was $321.3 million, a slight increase from the previous quarter, with the net charge-off ratio for Q4 at one basis point, down from 56 basis points in Q3 [16][17] Business Line Data and Key Metrics Changes - Quarterly loan growth was approximately 6.3% annualized, ending the year at $27.8 billion, with expectations for 2026 loan balances to range between $29 and $30 billion [5][6] - Fee income was strong, driven by loan-related interest rate swap fees and fiduciary and asset management fees, with 27% of interest rate swap income coming from former Sandy Spring customers [9] - Non-interest income increased to $57 million for Q4, primarily due to a pre-tax loss in the prior quarter related to the sale of CRE loans [20] Market Data and Key Metrics Changes - Virginia's unemployment rate remained unchanged at 3.5%, while Maryland's rate rose to 4.2%, and North Carolina's rate edged up to 3.8%, all remaining below the national average [10][11] - The company expects manageable unemployment levels in its markets, consistent with Moody's forecasts [11] Company Strategy and Development Direction - The company aims to leverage the strategic advantages gained from the Sandy Spring acquisition to drive sustainable growth and long-term value creation [5][12] - Focus will shift to demonstrating the franchise's earnings power and capital generation ability, with no additional acquisitions planned during this phase [12][13] - The company is committed to expanding its presence in North Carolina and pursuing organic growth opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strategic goals associated with the Sandy Spring acquisition, anticipating a decline in merger-related expenses starting Q1 2026 [4][5] - The company remains optimistic about loan growth despite economic uncertainties, with a robust pipeline and growing client confidence [6][7] - Management highlighted the importance of maintaining a strong capital position and the potential for share repurchases in the second half of 2026 [56] Other Important Information - The company paid a common stock dividend of $0.37 per share, an increase of 8.8% from the previous quarter [25] - The tangible book value for common shares increased approximately 4% to $19.69 per share in Q4 [25] Q&A Session Summary Question: Clarification on 2026 guidance - Management reiterated guidance for net interest income between $1.35 billion and $1.375 billion, with higher end dependent on accretion income and deposit cost reductions [30][31] Question: Loan pipeline increase - The loan pipeline showed a modest increase by the end of Q4, with positive feedback from market leaders indicating strong near-term loan growth [35][36] Question: Deposit outlook - Management expects about 3%-4% deposit growth for 2026, driven by treasury management opportunities in the former Sandy Spring footprint [47][48] Question: Cost savings from Sandy Spring deal - Most cost savings from the Sandy Spring acquisition are reflected in current numbers, with some marginal benefits expected in Q1 [49][50] Question: Loan pricing and deposit costs - Loan pricing is currently around 6%-6.20%, with deposit costs below 2% at approximately 1.96% [38]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

4Q and Full Year 2025 Earnings Presentation January 22, 2026 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 rega ...