- The provision expense will likely decline this year due to a high level of allowances for loan losses and a reduction in the loan portfolio’s credit risk.
- Economic recovery will likely drive loan growth in the latter half of the year. In 1H2021, the loan balances will likely decline because of the Paycheck Protection Program.
- The December 2021 target price suggests a limited upside from the current market price. Further, the dividend yield is modest at the current stock price.
For further details see:
Atlantic Union Bankshares: Lower Credit Costs To Drive Earnings Recovery