Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (May 2014)
18 slides from Atlantic Union Bankshares's investor presentation, May 29, 2014
Slide 1: Investor Presentation May 2014
Investor Presentation May 2014
Slide 2: Forward-Looking Statement
Forward - Looking Statement Certain statements in this report may constitute “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward - looking statements are statements that include projections, predictions, expectations, or beliefs about fu
Slide 3: Company Overview
Company Overview • The largest community banking organization headquartered in Virginia • Holding company formed in 1993 – Banking history goes back more than 100 years • Assets of $7.3 Billion • Comprehensive financial services provider offering commercial and retail banking, mortgage, investment,
Slide 4: Union's Strengths
Union’s Strengths • Unique branch network across Virginia, competitive banking products and services and a loyal client base • Well positioned for organic growth given commercial activity, household income levels and population growth in its footprint • Strong balance sheet and solid capital base •
Slide 5: Union First Market Footprint
Union First Market Footprint 5 • Acquisition of StellarOne Corporation resulted in statewide footprint • Only Virginia - based bank with a statewide presence – 131 branches
Slide 6: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Richmond • State Capital • Fortune 500 headquarters (6) • Finance and insurance • VCU & VCU Medical Center Fredericksburg • Defense and security contractors • Health care • Retail • Real Estate development Charlottesville • University of Virginia & Medical Colle
Slide 7: Branch Franchise and Market Share by Region
NC DC VA AL CT DE GA IL IN KY MA MD MI MS NJ NY OH RI SC TN WV Branch Franchise 7 Branches FTEs Assets Loans Deposits 131 1,628 $7.3 Billion $5. 3 Billion $5.7 Billion Source: SNL Financial and MapInfo Professional Note: Richmond market total deposits includes non - retail deposits; Richmond market
Slide 8: Growing Market Share
Growing Market Share 8 Virginia Deposit Market Share Source: SNL Financial Deposit data as of 6/30/2013; Pro forma for pending and recently completed transactions Rank Institution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Wells Fargo & Co. (CA) 295 30,197 18.1 2 Bank of Ame
Slide 9: StellarOne Acquisition Financial Recap
StellarOne Acquisition Financial Recap 9 Projections Assumptions • Net expense savings of 32%, or $28 million pre - tax • 65% phased in by 2014; 100% thereafter • Share repurchases of $65 million planned for 2014 and 2015 with excess capital • One time merger related expenses of approximately $19.5
Slide 10: Expense Savings
Expense Savings On track to deliver $28 million pre - tax savings • Converted all systems in May • Consolidated 3 StellarOne operations centers into Union’s Ruther Glen operations center in May • Consolidated StellarOne’s mortgage operations into Union Mortgage Group in May • As of March 31, 2014, o
Slide 11: Balance Sheet Trends
Balance Sheet Trends 11 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2010 2011 2012 2013 2014 1Q $ 2,837 $ 2,819 $ 2,967 $ 3,039 $ 5,274 Loans ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2010 2011 2012 2013 2014 1Q $ 3,070 $ 3,175 $ 3,298 $ 3,237
Slide 12: Capital Ratios
Capital Ratios 12 • Union has authorization to repurchase $65 million worth of stock by the end of 2015 • ~820,000 shares repurchased at an average price of $25.23 per share leaving approximately $44 million remaining as of April 18, 2014 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 201
Slide 13: Profitability Ratios and Income Trends
Profitability Ratio’s and Income Trends 13 * excludes after - tax acquisition expenses 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2010* 2011* 2012* 2013* 2014 1Q* 0.78% 0.80% 0.89% 0.90% 0.94% Return on Average Assets 8.80% 9.00% 9.20% 9.40% 9.60% 9.80% 10.00% 10.20% 10.40% 2010* 2011* 2012* 2013* 20
Slide 14: Core Net Interest Margin
Core Net Interest Margin 14 * Excludes acquisition accounting impact 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2010* 2011* 2012* 2013* 2014 1Q 4.24% 4.37% 4.24% 4.18% 3.99% Best - in - Class Net Interest Margin
Slide 15: Top-Tier Financial Performance Focus
Top - Tier Financial Performance Focus • Union is committed to achieving top tier financial performance and providing our shareholders with above average returns on their investment • Key financial performance metrics benchmarked against top quartile peers • After cost savings realized, StellarOne a
Slide 16: 2014 Outlook
2014 Outlook • Focus on integration of StellarOne and achieving cost savings target • Leveraging new franchise • Stable to growing economy in footprint • Low to Mid - single digit loan growth • Modest net interest margin compression • Continued asset quality improvement • Improving ROA, ROTCE and Ef
Slide 17: Value Proposition
Value Proposition • Statewide Branch footprint is a competitive advantage and brings a unique franchise value • Strong balance sheet and capital base • Best in class net interest margin • Experienced management team • Proven acquirer and integrator • Committed to top tier financial performance • Sha
Slide 18: Thank You!
THANK YOU! UNION