RICHMOND, Va. - Atlantic Union Bankshares Corporation (NYSE: NYSE:AUB), the holding company for Atlantic Union Bank, announced an increase in its quarterly dividend for common stock shareholders. The dividend has been raised to $0.34 per share, marking a $0.02 or approximately 6% increase from the third quarter of 2024 and from the fourth quarter of the previous year.
The new dividend rate represents a yield of roughly 3.7% based on the company's closing stock price of $37.10 on Thursday. Shareholders of record as of November 8, 2024, will be eligible for the dividend, which is scheduled to be paid on November 22, 2024.
In addition to the common stock dividend, Atlantic Union Bankshares' Board of Directors has also declared a quarterly dividend on its 6.875% Perpetual Non-Cumulative Preferred Stock, Series A. The preferred stock, which is traded in the form of depositary shares, will see a dividend of $171.88 per share, or $0.43 per depositary share. This dividend is payable on December 2, 2024, to shareholders of record as of November 15, 2024.
Atlantic Union Bankshares Corporation is headquartered in Richmond, Virginia, and as of September 30, 2024, operated 129 branches and around 150 ATMs across Virginia, Maryland, and North Carolina. The company also has non-bank financial services affiliates, including Atlantic Union Equipment Finance, Inc., Atlantic Union Financial Consultants, LLC, and Union Insurance Group, LLC, offering equipment financing, brokerage services, and insurance products, respectively.
This increase in dividends reflects the company's financial growth and its commitment to delivering value to its shareholders. The information in this article is based on a press release statement from Atlantic Union Bankshares Corporation.
In other recent news, Atlantic Union Bankshares has reported strong financial results for the third quarter of 2024, with a net income of $73.4 million and adjusted operating earnings of $74.5 million. This marks a substantial 32.3% increase from the previous quarter. The company has also fully exercised its option to enter an additional forward sale agreement with Morgan Stanley & Co. LLC, involving 1,478,873 shares of its common stock.
Atlantic Union Bankshares has announced a strategic merger with Sandy Spring Bancorp (NASDAQ:SASR), aiming to establish the largest regional bank in the Mid-Atlantic region with combined assets of $39 billion. Analysts, including those from Stephens, expect the merger to yield a 23% earnings per share accretion and a 20% internal rate of return. Stephens has also confirmed an Overweight rating on Atlantic Union Bankshares, raising the price target to $46.00 from the previous $44.00.
The company plans to sell around $2 billion of commercial real estate loans post-merger, aiming to reduce its concentration in commercial real estate loans to approximately 285%. These developments are part of the recent news from Atlantic Union Bankshares.
InvestingPro Insights
Atlantic Union Bankshares Corporation's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 31 consecutive years and has raised its dividend for 13 consecutive years. This consistency in dividend growth underscores the company's financial stability and commitment to rewarding shareholders.
The newly announced dividend yield of approximately 3.7% is in line with the current InvestingPro data, which shows a dividend yield of 3.48%. This attractive yield, coupled with the company's dividend growth history, may appeal to income-focused investors.
Despite the positive dividend news, it's worth noting that Atlantic Union Bankshares faces some challenges. An InvestingPro Tip reveals that the company suffers from weak gross profit margins, which could impact its ability to sustain dividend growth in the long term. Additionally, three analysts have revised their earnings downwards for the upcoming period, suggesting some caution in near-term expectations.
On a positive note, another InvestingPro Tip indicates that analysts predict the company will be profitable this year, which aligns with the bank's ability to increase its dividend. The company's price-to-book ratio of 1.16 suggests that the stock may be reasonably valued relative to its book value.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for Atlantic Union Bankshares, providing a deeper insight into the company's financial health and prospects.
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