Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Shareholder Meeting (May 2016)
28 slides from Atlantic Union Bankshares's shareholder meeting presentation, May 3, 2016
Slide 1: May 2016 Annual Shareholders Meeting
May 2016 Annual Shareholders Meeting
Slide 2: Forward Looking Statement
2 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 fut
Slide 3: Pillars Values Purpose Our Strategic Journey
3 Pillars Values Purpose Our Strategic Journey
Slide 4: Our Strategic Journey
4 Our Strategic Journey $300 million $7.8 billion 1994 2016
Slide 5: Our vision is to be a $13-billion bank by the end of 2018
5 Our vision is to be a $13 - 15 billion bank by the end of 2018 – and to be in the top 25% among our peers as measured by return on tangible common equity, return on assets and efficiency ratio. Our Strategic Journey
Slide 6: Our Strategy to Be Twice as Strong in 2018
6 OUR STRATEGY TO BE TWICE AS STRONG IN 2018
Slide 7: Success Looks Like This
7 Grow loan and deposit balances significantly above those of our peers Increase our presence among businesses with annual sales between $5 million and $75 million Have Retail, Commercial, Wealth and Mortgage businesses that are positioned to increase sales, deliver improved customer experiences and
Slide 8: Our Strategic Objectives Align with Our Pillars
8 Strategic Objectives Union Pillars Our Strategic Objectives Align with Our Pillars
Slide 9: Growth and High-Performing Culture Objectives
9 Invest in leadership and talent management programs to develop a high - performing culture and redesign rewards programs to align with our strategies. Improve the value we deliver through better products and services, while making it easier to do business with us. Deepen customer relationships wit
Slide 10: Retail Initiatives
10 Retail Initiatives Deepen customer relationships through better value propositions and cross - sell strategies Greater focus on core deposit generation to support asset growth Grow the consumer lending business Increase penetration of the small business segment Reposition the distribution system
Slide 11: Commercial Initiatives
11 Commercial Initiatives Expand lending activity in the middle market sector Expand treasury management solution/product set and increase sales Focus on sales management and training to enhance sales productivity Expand in select growth markets via commercial banker hirings and establish LPOs where
Slide 12: Wealth Management Initiatives
12 Wealth Management Initiatives Expand wealth client relationships organically through improved integration of services and more disciplined service delivery Accelerate efforts to acquire other wealth businesses Leverage formal sales training Develop marketing plan for high net worth to increase br
Slide 13: Mortgage Initiatives
13 Mortgage Initiatives Realign and expand the sales force to ensure adequate coverage in growth markets Continue to improve profitability of the residential mortgage operation and grow the business, with a focus on the in - footprint retail market Ongoing f ocus on compliance Establish staffing mod
Slide 14: Our Transformational Strategy Depends on a High-Performing Culture
14 Our Transformational Strategy Depends on a High - Performing Culture C larity of mission Q uality and consistency of business processes A lignment and involvement of teammates S ingular focus on and adaptability to the needs of our customers
Slide 15: Financial Recap
UNION Financial Recap
Slide 16: Largest Community Bank in Virginia: Deposit Market Share
16 Source: SNL Financial; Deposit data as of 6/30/2015; Pro forma for recent acquisitions Largest Community Bank in Virginia Rank Institution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Wells Fargo & Co. (CA) 290 36,737 20.1 2 Bank of America Corp. (NC) 142 27,609 15.1 3 BB&T
Slide 17: Virginia Footprint by County
17 Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Nelson Nelson Nelson Nelson Nelson Nelson Nelson Nelson Nelson Accomack Accomack
Slide 18: 2015 Highlights
18 2015 Highlights • Net Income was $67.1 million; earnings per share of $1.49 • Loan growth in 2015 was 6.6%*; annualized loan growth was 9.2% in the fourth quarter • Deposit balances grew 5.8% in 2015; annualized deposit growth in the fourth quarter was 10% • Asset Quality remained strong as nonpe
Slide 19: 1st Quarter 2016 Highlights
19 1 st Quarter 2016 Highlights • Net Income was $17.0 million; earnings per share of $0.38 – up ~$1 million or 3 cents from 1Q 2015 • Loan growth was 7.7% annualized in the quarter • Average deposit balances relatively flat (0.4% annualized) but grew 4.6% from prior year • Asset Quality remained ou
Slide 20: Balance Sheet Trends
20 Balance Sheet Trends $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2009 2010 2011 2012 2013 2014 2015 1Q 2016 $1,874 $2,837 $2,819 $2,967 $3,039 $5,346 $5,671 $5,781 Loans ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2009 2010 2011 2012 2013 201
Slide 21: Capital Ratios
21 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2010 2011 2012 2013 2014 2015 1Q 2016 14.68% 14.51% 14.57% 14.16% 13.38% 12.46% 12.17% 8.22% 8.91% 8.96% 8.93% 9.27% 9.20% 8.86% Total capital ratio Tangible Equity/Tangible Assets Repurchased 1.1 million shares in 2012 Capital Ratios • Si
Slide 22: Profitability Ratios and Income Trends
22 Profitability Ratios and Income Trends * excludes after - tax acquisition expenses and acquisition accounting impact 0.70% 0.75% 0.80% 0.85% 0.90% 0.95% 2010* 2011* 2012* 2013* 2014* 2015* 1Q 2016* 0.78% 0.80% 0.89% 0.90% 0.91% 0.90% 0.88% Return on Average Assets (ROA) 9.00% 9.20% 9.40% 9.60% 9.
Slide 23: Shareholder Value Driven – 5 Year Returns
23 Shareholder Value Driven – 5 Year Returns • Union’s stock price has increased 107% over the past 5 years, 2.1 times the KBW Regional Bank index return of 51% Source: SNL Financial UBSH +56%
Slide 24: Shareholder Value Driven – 1 Year Return
24 Shareholder Value Driven – 1 Year Return • Union’s stock price has increased 20% over the past year, more than 2 0 times the KBW Regional Bank index return of 0.78% Source: SNL Financial UBSH +19%
Slide 25: Top-Tier Financial Performance Focus
25 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 • Top Tier Financial Performance targets
Slide 26: Path to Top Tier Return on Tangible Common Equity
26 Path to Top Tier Return on Tangible Common Equity 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 ROTCE - 2015 ROTCE Target 0.7 - 0.9% 0.3 - 0.5% 0.4 - 0.6% 0.3 - 0.5% 0.1 - 0.3% 0.7 - 1.0% 13+% 10.0% Loan Growth with Stabilized NIM Rate rise of 100 bps Normalized OREO Expense Management Improv
Slide 27: 2016 Outlook
27 2016 Outlook • Stable to growing economy in footprint • Mid single digit loan growth • Modest net interest margin compression • Continued asset quality improvement – reduction of OREO expenses • Improving ROA, ROTCE and Efficiency Ratio • Closing 4 branches (net) in 2Q
Slide 28: Thank You!
28 Thank You! UNION