Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (August 2018)
27 slides from Atlantic Union Bankshares's investor presentation, Aug 7, 2018
Slide 1: Investor Presentation August/September 2018
Exhibit 99.1 Investor Presentation Nasdaq: UBSH August/September 2018
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation which are not statements of historical fact constitute forward- • an insufficient allowance for loan losses; looking statements within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as a
Slide 3: Additional Information
Additional Information Unaudited Pro Forma Financial Information No Offer or Solicitation The unaudited pro forma financial information included herein is This presentation does not constitute an offer to sell or a solicitation presented for informational purposes only and does not necessarily of an
Slide 4: Our Company Highlights (6/30/18)
Our Company Highlights (6/30/18) $13.1 billion in assets $9.3 billion in loans Maryland BaltimoreBaltimore WashingtonWashington $2.7 billion market capitalization $9.8 billion in deposits WashingtonWashington FredericksburgFredericksburg StauntonStaun
Slide 5: Investment Highlights
Investment Highlights • Largest Virginia headquartered regional banking company ($13.1 billion in assets) The Right • #1 deposit market share ranking in Virginia among Virginia-based banks (1) • Operating with a statewide Virginia footprint of 138 branches in all major markets with 9 Scale additiona
Slide 6: Virginia's Bank
Virginia’s Bank Virginia: All Banks Virginia: Banks Headquartered in VA Deposits Market Deposits Market Rank Institution ($mm) Share Branches Rank Institution ($mm) Share Branches 1 Wells Fargo & Co. $27,452 16.8 % 275 1 Union Bankshares Corp. $8,902 16.2 % 141 2 BB&T Corp. 23,236 14.2 327 2 TowneBa
Slide 7: Diversity Supports Growth In Virginia
Diversity Supports Growth In Virginia • State Capital, Fortune 500 headquarters (7), VCU & VCU Medical Center Richmond • $2.6 billion in-market deposits and total deposit market share of 11.4% • Defense and security contractors, Healthcare, Retail, Real Estate development Fredericksburg • $997 milli
Slide 8: Among The Most Attractive Markets in USA
Among The Most Attractive Markets in USA 2018 Median HHI ($) 2018 Population (mm) GDP ($bn) # State HHI ($) # State Population (mm) 1 District of Columbia $82,192 1 California 39.7 2 Maryland 81,294 2 Texas 28.5 3 Hawaii 80,637 3 Florida 21.1 th 4 Alaska 79,735 4 New York 19.8 ranked Virginia the 4
Slide 9: Balance Sheet and Net Income Trends (GAAP)
Balance Sheet and Net Income Trends (GAAP) Loans ($M) Deposits ($M) Assets ($M) Net Income ($) $77,476 $72,923 $67,079 $63,966 $52,164 $34,366 2013 2014 2015 2016 2017 YTD 18 Data as of or for the twelve months ended each respective year, except for Q118 data which is as of or for the three months e
Slide 10: Balance Sheet and Operating Net Income Trends
Balance Sheet and Operating Net Income Trends Loans ($M) Deposits ($M) Assets ($M) Operating Net Income(1)(2) ($) (1) Excludes merger-related costs and nonrecurring tax expenses unrelated to normal operations 10 (2) *includes the impact of strategic actions taken in quarter ended June 30, 2018 on sl
Slide 11: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) ROA (%) NIM (%) ROE (%) Efficiency Ratio (%) Data as of or for the twelve months ended each respective year, except for Q118 data which is for the three months ended March 31, 2018 and Q218 data which is 11 for the three months June 30, 2018
Slide 12: Strong Track Record of Performance (Non-GAAP)
Strong Track Record of Performance (Non-GAAP) Operating ROA (1) (2) (%) NIM (FTE) (2) (%) Operating ROTCE (1) (2) (%) Operating Efficiency Ratio (FTE) (1) (2) (%) Data as of or for the twelve months ended each respective year, except for Q118 and Q2 data which is as of or for the three months ended
Slide 13: Financial Targets
Financial Targets Financial Targets Committed to top-tier financial performance • Union is committed to achieving top tier financial performance and providing our ROA 1.3% - 1.5% shareholders with above average returns on their investment ROTCE 15% - 17% • Key financial performance metrics benchmark
Slide 14: Solid Capital Position
Solid Capital Position Capital Position Regulatory Capital Composition TCE / TA (1) 8.9% CET1 Ratio 9.7% Tier 1 Capital Ratio 11.0% Total Capital Ratio 12.8% Leverage Ratio 9.5% CRE / Total Risk-Based Capital 309% Total Risk Based Capital: $1,372 mm Dividend Yield (2) 2.2% Capital information presen
Slide 15: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio Loan Composition at June 30, 2018 - $9.3 Billion Total Loan Portfolio CRE Composition - $4.2 Billion Composition by Type CRE Composition by Type Total Portfolio Characteristics Duration 1.5 years QTD Weighted Average Yield (Tax Equivalent) 4.91% 15 Note: Figur
Slide 16: Attractive Core Deposit Base
Attractive Core Deposit Base Deposit Composition at June 30, 2018 - $9.8 Billion Deposit Base Characteristics Deposit Composition QTD Cost of deposits - 54 bps 90% core deposits (1) 44% transactional accounts #1 in deposit market share for regional/community banks in Richmond and Charlottesv
Slide 17: Union's 2018 Strategic Priorities
Union’s 2018 Strategic Priorities Diversify Loan Portfolio • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time and Revenue Streams • Grow fee-based products and services • Fund loan growth with depo
Slide 18: Investment Thesis
Investment Thesis • $13.1 billion in assets The Right • Strong market share Scale • Extensive product mix, enhanced C&I focus • Growing, economically diversified The Right • Presence across state Markets • Scale in the sizable Richmond and Hampton Roads markets • Deep team with broad experience The
Slide 19: Appendix
Appendix UNION
Slide 20: Executive Management Team
Executive Management Team . 1 year at Union John C. Asbury . 25+ years of experience in the banking industry, primarily at Bank of America President & CEO and Regions Bank . Former President and CEO of First National Bank of Santa Fe . 5 years at Union Robert M. Gorman . 25+ years of experience in t
Slide 21: Delivering the Xenith Economics
Delivering the Xenith Economics 40% Cost Savings + 2018 Focus on Post Announcement Revenue Initiatives Successful Integration Ramping Announced May 22, 2017 Closed January 1, 2018 Savings target of 40% of the Xenith expense base, or Nearly all commercial Focus on seamless approximately $28
Slide 22: Strategic Actions in 2Q 2018
Strategic Actions in 2Q 2018 Second Quarter 2018 Strategic Actions ($ in Thousands) Financial Impact to: Strategic Action Net Income Consumer Loans C&I Loans Sale of Shore Premier Finance at a 5% premium $16,510 -$364,900 -$19,000 Sale of Third Pary Originated Consumer Loan Portfolio at par - -$206,
Slide 23: Reconciliation of Non-GAAP Disclosures: Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Tangible Common Equity As of June 30, 2018 Tangible Common Equity Shareholders' equity (GAAP) $ 1,864,870 Less: Intangibles 776,406 Tangible Shareholders' equity (non-GAAP) $ 1,088,464 Assets (GAAP) $ 13,066,106 Intangibles 776,406 Tangible assets (non-GAAP) $
Slide 24: Reconciliation of Non-GAAP Disclosures: Net Operating Income
Reconciliation of Non-GAAP Disclosures Net Operating Income Union Standalone Union For the Twelve Months Ended 12/31 Three Months Ended Six Months Ended (Dollars in thousands) 2013 2014 2015 2016 2017 3/31/2018 6/30/2018 6/30/2018 Net income (GAAP) $34,366 $52,164 $67,079 $77,476 $72,923 $16,639 $47
Slide 25: Reconciliation of Non-GAAP Disclosures: Return on Assets
Reconciliation of Non-GAAP Disclosures Return on Assets (ROA) Union Standalone Union For the Twelve Months Ended 12/31 Three Months Ended (Dollars in thousands) 2013 2014 2015 2016 2017 3/31/2018 6/30/2018 Average assets (GAAP) $4,051,850 $7,250,494 $7,492,895 $8,046,305 $8,820,142 $13,019,572 $13,2
Slide 26: Reconciliation of Non-GAAP Disclosures: ROTCE
Reconciliation of Non-GAAP Disclosures Return on Tangible Common Equity (ROTCE) Union Standalone Union For the Twelve Months Ended 12/31 Three Months Ended (Dollars in thousands) 2013 2014 2015 2016 2017 3/31/2018 6/30/2018 Average equity (GAAP) $435,635 $983,727 $991,977 $994,785 $1,030,847 $1,824,
Slide 27: Reconciliation of Non-GAAP Disclosures: Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Efficiency Ratio Union Standalone Union For the Twelve Months Ended 12/31 Three Months Ended (Dollars in thousands) 2013 2014 2015 2016 2017 3/31/2018 6/30/2018 Noninterest expense (GAAP) $137,047 $238,216 $216,882 $222,703 $234,765 $101,743 $85,140 Less: Merge
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