Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q1 2024 Earnings Presentation
28 slides from Atlantic Union Bankshares's earnings presentation, Apr 23, 2024
Slide 1: 1st Quarter 2024 Earnings Presentation
1st Quarter 2024 Earnings Presentation NYSE: AUB April 23, 2024
Slide 2: Forward Looking Statements
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 on slides entit
Slide 3: Additional Information
Additional Information Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other This presentation does not constitute an offer to sell or a solicitation of an offer to buy than in accordance with generally accepted acco
Slide 4: Our Company | Pro Forma Combined Basis
Our Company | Pro Forma Combined Basis Soundness | Profitability | Growth Highlights ($bn) Branch/Office Footprint • Statewide Virginia footprint of 122 $ 24.5* $ 18.2* branches in all major markets Assets Loans • #1 regional bank1 deposit market share in Virginia • Strong balance sheet and capital
Slide 5: Our Shareholder Value Proposition
Leading Regional Presence Dense, uniquely valuable presence across attractive markets Our Shareholder Value Proposition Attractive Financial Profile Financial Strength Solid dividend yield Solid balance sheet & payout ratio with & capital levels earnings upside Peer-Leading Strong Growth Performance
Slide 6: Q1 2024 Highlights
Q1 2024 Highlights Loan and Deposit Growth Focus on Smooth Integration Positioning for Long Term • 5.6% annualized loan growth in Q1 2024 • Core Systems conversion planned for • Lending pipelines down moderately from Q4 2023 and 8.7% from Q1 2023 late May 2024 • Granular growing deposit base • 11.0%
Slide 7: Loan and Deposit Trends
Loan and Deposit Trends Total Loan Beta1 Deposit Mix Shift 47% 48% 45% $ in Millions 42% 44% $17,278 5.84% 5.97% 6.02% $16,456 $16,818 1Q 2024 Highlights 5.62% 5.35% • Total deposits up 11.0% annualized from 4Q 2023 72% 76% 78% • Mix shift into higher costing deposit products and higher deposit beta
Slide 8: Q1 2024 Financial Performance At-a-Glance
Q1 2024 Financial Performance At-a-Glance Summarized Income Statement • Reported net income available to common shareholders for the first quarter of 2024 was $46.8 million or $0.62 per share, down $7.1 million or $0.10 per 1Q2024 4Q2023 share compared to the prior quarter, primarily driven by: Net
Slide 9: Q1 2024 Allowance For Credit Losses and Provision for Credit Losses
Q1 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses Q1 Macroeconomic Forecast Allowance for Loan Reserve for Unfunded Allowance for Moody’s March 2024 Baseline Forecast: & Lease Losses Commitments Credit Losses • US GDP expected to average ~2.5% growth in 09/30/2023 $126MM $15M
Slide 10: Q1 2024 Net Interest Margin
Q1 2024 Net Interest Margin Margin Overview Market Rates 1Q 2024 4Q 2023 1Q 2024 4Q 2023 Net interest margin (FTE)1 3.19% 3.34% EOP Avg EOP Avg Loan yield 6.03% 5.97% Fed funds 5.50% 5.50% 5.50% 5.50% Investment yield 3.72% 3.80% Prime 8.50% 8.50% 8.50% 8.50% Earning asset yield 5.62% 5.59% 1-month
Slide 11: Q1 2024 Noninterest Income and Noninterest Expense
Q1 2024 Noninterest Income and Noninterest Expense Noninterest Income Noninterest Expense ($ thousands) 1Q2024 4Q2023 ($ thousands) 1Q2024 4Q2023 Service charges on deposit accounts $ 8,569 $ 8,662 Salaries and benefits $ 61,882 $ 56,686 Other service charges, commissions and fees 1,731 1,789 Occupa
Slide 12: Q1 2024 Loan and Deposit Growth
Q1 2024 Loan and Deposit Growth QTD Annualized Loan Growth ($ thousands) 1Q2024 4Q2023 Growth • At March 31, 2024, LHFI totaled $15.9 billion, an increase of $216.6 Commercial & Industrial $ 3,561,971 $ 3,589,347 (3.1%) million or 5.6% (annualized) from the prior quarter, driven by an Commercial rea
Slide 13: Strong Capital Position at March 31, 2024
Strong Capital Position at March 31, 2024 Proforma including AOCI and Reported Regulatory HTM unrealized losses Capital Management Strategy Well Capitalized Atlantic Union Atlantic Atlantic Union Atlantic Union Atlantic Union capital management Capital Ratio Minimums Bankshares Union Bank Bankshares
Slide 14: 2024 Financial Outlook
2024 Financial Outlook (inclusive of American National beginning April 1st) 1 Full Year 2024 Outlook 1 Notes1 1Key Assumptions • 2024 outlook includes nine months Loans (end of period) ~$18.0 - $18.5B impact of American National in results Deposits (end of period) ~$19.8 - $20.3B • The outlook inclu
Slide 15: Appendix
Appendix d Atlantic Union Bankshares
Slide 16: AUB Non-Owner Occupied CRE Portfolio at March 31, 2024
AUB Non-Owner Occupied CRE Portfolio at March 31, 2024 Non-Owner Occupied Office CRE 4.9% All Other Non- Owner Occupied CRE Non-Owner Occupied CRE By Type 21.7% $ in millions Total Outstandings % of Portfolio Multifamily $1,075 6.8% $15.9B Retail $865 5.5% Hotel/Motel B&B $867 5.5% Total Office $779
Slide 17: AUB Non-Owner Occupied Office CRE Portfolio at March 31, 2024
AUB Non-Owner Occupied Office CRE Portfolio at March 31, 2024 Medical vs Other Office Medical Office Geographically Diverse Non-Owner Non-Owner Occupied Office 22.5% Occupied Office Portfolio Portfolio Credit Quality By Market ($ millions) Key Portfolio Metrics Carolinas $245 Avg. Office Loan ($ tho
Slide 18: AUB Multifamily CRE Portfolio at March 31, 2024
AUB Multifamily CRE Portfolio at March 31, 2024 Geographically Diverse Multifamily Multifamily Portfolio Credit Portfolio Quality By Market ($ millions) Key Portfolio Metrics Carolinas $188 Avg. Multifamily Loan ($ thousands) $3,328 Fredericksburg Area $93 Median Multifamily Loan ($ thousands) $829
Slide 19: Granular Deposit Base
Granular Deposit Base Customer Deposit Granularity $99,000 $98,000 $100,000 $19,000 $19,000 $19,000 Q1 2023 Q4 2023 Q1 2024 Period End Uninsured and Uncollateralized Deposits as a Percentage of Total Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size Deposits ($ in Millions) $5,094 $4,9
Slide 20: Liquidity Position at March 31, 2024
Liquidity Position at March 31, 2024 Total Liquidity Sources of $5.4 billion ~106% liquidity coverage ratio of uninsured/uncollateralized deposits of $5.1 billion ($ in millions) Fed Funds Lines $752 FHLB Borrowing Capacity Discount Window $1,375 $286 Liquidity Sources Total Secondary Sources* $5.4
Slide 21: Securities Portfolio at March 31, 2024
Securities Portfolio at March 31, 2024 Securities Balances $ Millions • As of March 31, 2024, total securities portfolio of Total AFS (fair value) and HTM (carrying value) $3.0 billion with a total unrealized loss of $448.5 million • 76% of total portfolio in available-for-sale at an unrealized loss
Slide 22: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures The Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted, or pre-tax pre-provision basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statement
Slide 23: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO For the three months ended (Dollars in thousands, except per share amounts) 1Q2024 4Q2023 Adjusted operating measures exclude, as applicable, merger- related costs, FDIC special assessments, legal reserves Operat
Slide 24: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures NET INTEREST MARGIN For the three months ended The Company believes net interest income (FTE), (Dollars in thousands) 1Q2024 4Q2023 total revenue (FTE), and total adjusted revenue (FTE), which are used in computing net interest Net interest income (GAAP) $ 147,
Slide 25: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of March 31, 2024 Atlantic Union Atlantic Union (Dollars in thousands, except per share amounts) Bankshares Bank Tangible assets and tangible common equity are Tangible Assets used in the calculatio
Slide 26: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures RISK-BASED CAPITAL RATIOS All regulatory capital ratios at March 31, 2024 are As of March 31, 2024 estimates and subject to change pending the Atlantic Union Atlantic Union Company’s filing of its FR Y-9 C. In addition to (Dollars in thousands) Bankshares Bank
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures OPERATING MEASURES For the three months ended Tangible assets and tangible common equity are used in (Dollars in thousands) 1Q2024 4Q2023 the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, Return on av
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Pre-tax pre-provision adjusted earnings PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS excludes, as applicable, the provision for credit losses, which can fluctuate For the three months ended significantly from period-to-period under the (Dollars in thousand
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