Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (May 2024)
32 slides from Atlantic Union Bankshares's investor presentation, May 10, 2024
Slide 1: Investor Presentation
Investor Presentation NYSE: AUB May – June 2024
Slide 2: Forward Looking Statements
2 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 ent
Slide 3: Additional Information
3 Additional Information Non-GAAP Financial Measures This presentation contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures are a supplement to GAAP, which
Slide 4: Largest Regional Banking Company Headquartered in Virginia
4 Largest Regional Banking Company Headquartered in Virginia Our Company | Pro Forma Combined Basis Soundness | Profitability | Growth *Data as of 3/31/2024, presented on a pro forma basis reflecting the acquisition of American National, before any merger-related adjustments, which closed on April 1
Slide 5: Our Shareholder Value Proposition
5 Our Shareholder Value Proposition Leading Regional Presence Dense, uniquely valuable presence across attractive markets Financial Strength Solid balance sheet & capital levels Attractive Financial Profile Solid dividend yield & payout ratio with earnings upside Strong Growth Potential Organic & ac
Slide 6: Strong Presence in Prime Virginia Markets
6 Strong Presence in Prime Virginia Markets (1) Among midsized and community banks less than $100 billion in assets Source: SNL Financial, FDIC deposit data; excludes branches greater than $5 billion Deposit data as of 6/30/2023, which is presented on a pro forma basis reflecting the acquisition of
Slide 7: Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three
7 Virginia’s Bank and Sizeable Opportunity to Take Market Share from the Big Three Source: SNL Financial and FDIC deposit data Deposit and branch data as of 6/30/23; which is presented on a pro forma basis reflecting the acquisition of American National, before any merger-related adjustments, which
Slide 8: Virginia Is Among the Most Attractive Markets in USA
8 Virginia Is Among the Most Attractive Markets in USA Source: SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics, Fortune.com, U.S. News & World Report; Forbes, CNBC, U.S. Small Business Administration, USA Today; Business Facilities; most recent data available ranked Virginia t
Slide 9: Q1 2024 Highlights
9 Q1 2024 Highlights Loan and Deposit Growth • 5.6% annualized loan growth in Q1 2024 from Q4 2023 and 8.7% from Q1 2023 • 11.0% annualized deposit growth in Q1 2024 from Q4 2023 and 5.0% from Q1 2023 Asset Quality • Q1 2024 net charge-offs at 13 bps annualized which is the same as Q1 2023 Positioni
Slide 10: Our Core Values
10 Caring Working together toward common goals, acting with kindness, respect and a genuine concern for others. Courageous Speaking openly, honestly and accepting our challenges and mistakes as opportunities to learn and grow. Committed Driven to help our clients, Teammates and company succeed, doin
Slide 11: We are focused on three Strategic Priorities
11 We are focused on three Strategic Priorities Organic Deliver Organic Growth • Overweighting opportunities in Wholesale Banking Group • Directing consumer efforts to market segments and delivery channels with the strongest value proposition • Prioritizing fee income growth • Maintaining a reliable
Slide 12: Balance Sheet Trends (GAAP)
12 10% 8% CAGR CAGR $17,563 $19,628 $20,065 $20,461 $21,166 $24,455 2019 2020 2021 2022 2023 1Q 2024 $13,305 $15,723 $16,611 $15,932 $16,818 $19,865 2019 2020 2021 2022 2023 1Q 2024 Balance Sheet Trends (GAAP) Data as of December 31 each respective year, except for 1Q 2024, which is data as of March
Slide 13: Strong Track Record of Performance (GAAP)
13 Strong Track Record of Performance (GAAP) Earnings Per Share Available to Common Shareholders ($) Return on Equity (ROE) (%) Return on Assets (ROA) (%) Efficiency Ratio (%) $2.41 $1.93 $3.26 $2.97 $2.53 $0.62 2019 2020 2021 2022 2023 1Q 2024 7.89% 6.14% 9.68% 9.51% 8.27% 8.14% 2019 2020 2021 2022
Slide 14: Strong Track Record of Performance (Non-GAAP)
14 Strong Track Record of Performance (Non-GAAP) Data as of or for the twelve months ended each respective year, except 1Q 2024 which is as of or for the three months ended March 31, 2024 (1) Non-GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reco
Slide 15: Strong Capital Position at March 31, 2024
15 Capital Ratio Regulatory Well Capitalized Minimums Atlantic Union Bankshares Atlantic Union Bank Atlantic Union Bankshares Atlantic Union Bank Common Equity Tier 1 Ratio (CET1) 6.5% 9.9% 12.5% 7.8% 10.5% Tier 1 Capital Ratio 8.0% 10.8% 12.5% 8.7% 10.5% Total Risk Based Capital Ratio 10.0% 13.6% 1
Slide 16: 2024 Financial Outlook
16 2024 Financial Outlook (inclusive of American National beginning April 1st) 1 1Key Assumptions • 2024 outlook includes nine months impact of American National in results • The outlook includes preliminary estimates of merger-related purchase accounting adjustments that are subject to change • Rem
Slide 17: Appendix
Appendix h Ghion Banksha res
Slide 18: Q1 2024 Allowance For Credit Losses and Provision for Credit Losses
18 Q1 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses Q1 Macroeconomic Forecast Moody’s March 2024 Baseline Forecast: • US GDP expected to average ~2.5% growth in 2024 and ~1.5% in 2025. • The national unemployment rate expected to average ~3.9% in 2024 and ~4.1% in 2025. Q1 A
Slide 19: Loan and Deposit Trends
19 Loan and Deposit Trends 42% 44% 45% 47% 48% 5.35% 5.62% 5.84% 5.97% 6.02% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Loan Beta1 Cumulative Loan Beta Avg. Rate 28% 24% 22% 72% 76% 78% Q1 2023 Q4 2023 Q1 2024 Deposit Mix Shift $ in Millions Non Interest Deposits Interest Bearing Deposits $16,456
Slide 20: Diversified and Granular Loan Portfolio
20 Diversified and Granular Loan Portfolio Total Loan Portfolio $15.9 billion at March 31, 2024 Non-Owner Occupied CRE Composition $5.3 billion at March 31, 2024 Total Portfolio Characteristics Duration Q1 2024 Weighted Average Yield (Tax Equivalent) 1.3 years 6.03% Figures may not total to 100% due
Slide 21: Non-Owner Occupied CRE Portfolio
21 Non-Owner Occupied Office CRE 4.9% All Other Non-Owner Occupied CRE 21.7% Multifamily CRE All Other Loans 6.8% 66.6% AUB Non-Owner Occupied CRE Portfolio at March 31, 2024 $ in millions Total Outstandings % of Portfolio Multifamily $1,075 6.8% Retail $865 5.5% Hotel/Motel B&B $867 5.5% Office $77
Slide 22: Non-Owner Occupied Office CRE Portfolio
22 Other Office 77.5% Medical Office 22.5% Medical vs Other Office By Market ($ millions) Key Portfolio Metrics Carolinas $245 Fredericksburg Area $116 Central VA $104 Northern VA/Maryland $65 Western VA $99 Eastern VA $48 Other $101 Total $779 Avg. Office Loan ($ thousands) $1,924 Median Office Loa
Slide 23: Multifamily CRE Portfolio
23 By Market ($ millions) Key Portfolio Metrics Carolinas $188 Fredericksburg Area $93 Central VA $338 Northern VA/Maryland $32 Western VA $160 Eastern VA $110 Other $154 Total $1,075 AUB Multifamily CRE Portfolio at March 31, 2024 Multifamily Portfolio Credit Quality Geographically Diverse Multifam
Slide 24: Attractive Core Deposit Base
24 Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at March 31, 2024 — $17.3 billion Cost of deposit data is as of or for the three months ended March 31, 2024 (1) Core deposits defined as total deposits less jumbo time deposits and brokered deposits • Q1 2024 cost of d
Slide 25: Granular Deposit Base
25 Granular Deposit Base $19,000 $19,000 $19,000 $99,000 $98,000 $100,000 Q1 2023 Q4 2023 Q1 2024 Customer Deposit Granularity Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size 28% 26% 27% 29% 29% $4,589 $4,343 $4,492 $4,922 $5,094 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Period End Uni
Slide 26: Liquidity Position at March 31, 2024
26 Cash and Cash Equivalents (unrestricted) $425 Unencumbered Securities $1,298 FHLB Borrowing Capacity $1,375 Fed Funds Lines $752 Discount Window $286 Secondary Sources* $1,271 ($ in millions) Liquidity Position at March 31, 2024 Total Liquidity Sources of $5.4 billion ~106% liquidity coverage rat
Slide 27: Securities Portfolio at March 31, 2024
27 Securities Portfolio at March 31, 2024 • As of March 31, 2024, total securities portfolio of $3.0 billion with a total unrealized loss of $448.5 million • 76% of total portfolio in available-for-sale at an unrealized loss of $410.9 million • 24% of total portfolio designated as held-to-maturity w
Slide 28: Reconciliation of Non-GAAP Disclosures
28 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 statem
Slide 29: Reconciliation of Non-GAAP Disclosures
29 Reconciliation of Non -GAAP Disclosures Adjusted operating measures exclude, as applicable, merger - related costs, FDIC special assessments, legal reserves associated with our previously disclosed settlement with the CFPB, strategic cost saving initiatives (principally composed of severance char
Slide 30: Reconciliation of Non-GAAP Disclosures
30 Reconciliation of Non-GAAP Disclosures The adjusted operating efficiency ratio (FTE) excludes, as applicable, the amortization of intangible assets, merger-related costs, FDIC special assessments, strategic cost saving initiatives (principally composed of severance charges related to headcount re
Slide 31: Reconciliation of Non-GAAP Disclosures
31 Reconciliation of Non-GAAP Disclosures Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy be
Slide 32: Reconciliation of Non-GAAP Disclosures
32 Reconciliation of Non-GAAP Disclosures The Company adjusts certain regulatory capital ratios to include the impacts of AOCI, which the Company has elected to exclude from regulatory capital ratios under applicable regulations, and net unrealized losses on HTM securities, assuming that those unrea
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