Earnings of Atlantic Union Bankshares Corporation (AUB) are expected to surge in 2020 due to organic loan growth. The increase in earnings should be constrained by lower net interest margin, and slightly higher non-interest expense. While there will be room for an increase in dividend, I'm expecting the company to maintain quarterly dividends at the current level.
Merger of Competitors to Provide Opportunity for Loan Growth
Due to seasonal factors, loan growth slowed in 3QFY19 as government contracting clients paid down their borrowings ahead of the federal government's September 30 fiscal year-end. Loan