Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (May 2025)
40 slides from Atlantic Union Bankshares's investor presentation, May 2025
Slide 1: Investor Presentation May – June 2025
INVESTOR PRESENTATION NYSE: AUB MAY – JUNE 2025
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 regarding our r
Slide 3: Additional Information
ADDITIONAL INFORMATION Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other than This presentation does not constitute an offer to sell or a solicitation of an offer to buy any in accordance with generally accepted
Slide 4: Pro Forma and Market and Industry Data
PRO FORMA AND MARKET AND INDUSTRY DATA Pro Forma Data Further, neither the pro forma nor the pro forma forward-looking financial data has been prepared in accordance with Article 11 of Regulation S-X, and, therefore, does not reflect any Neither Atlantic Union’s nor Sandy Spring’s independent regist
Slide 5: Our Company Pro Forma Combined Basis
OUR COMPANY Pro Forma Combined Basis Soundness | Profitability | Growth M a ry l a n d BALTIMORE WASHINGTON Largest Regional Bank Headquartered in the Lower Mid-Atlantic FREDERICKSBURG STAUNTON V i rg i n i a HIGHLIGHTS 1 CHARLOTTESVILLE $38 Billion $30 Billion $32 Billion ROANOKE RICHMOND NORFOLK A
Slide 6: Our Shareholder Value Proposition
OUR SHAREHOLDER LEADING REGIONAL PRESENCE Dense, uniquely valuable presence across attractive markets VALUE PROPOSITION ATTRACTIVE FINANCIAL PROFILE FINANCIAL STRENGTH Solid balance sheet & Solid dividend yield capital levels & payout ratio with earnings upside PEER-LEADING STRONG GROWTH PERFORMANCE
Slide 7: Our Core Values
OUR CORE VALUES Culture — HOW we come together and interact as a team to accomplish our CARING COURAGEOUS COMMITTED business and societal goals. Working together toward Speaking openly, honestly Driven to help our clients, common goals, acting with and accepting our challenges Teammates and company
Slide 8: We Are Focused on Three Strategic Priorities
WE ARE FOCUSED ON THREE STRATEGIC PRIORITIES ORGANIC INORGANIC DELIVER ORGANIC GROWTH INNOVATE AND TRANSFORM STRATEGIC INVESTMENTS • Overweighting opportunities in • Pressing the relationship model • Leverage FinTech partnerships, strategic Wholesale Banking Group advantage where bankers provide par
Slide 9: Highlights
HIGHLIGHTS LOAN & DEPOSIT GROWTH FINANCIAL RATIOS Average loan growth of approximately 1.3% Q1 2025 adjusted operating return on tangible common annualized for Q1 2025 equity of 13.2%1 Deposit growth of approximately 2.1% annualized Q1 2025 adjusted operating return on assets of 0.90%1 for Q1 2025 w
Slide 10: Balance Sheet Trends (GAAP)
BALANCE SHEET TRENDS (GAAP) LOANS ($mm) 7% CAGR DEPOSITS ($mm) 6% CAGR ASSETS ($mm) 5% CAGR $18,471 $18,428 $20,398 $20,503 $24,585 $24,633 $15,635 $21,166 $20,461 $14,449 $16,611 $16,818 $19,628 $20,065 $14,021 $15,723 $15,932 $13,196 2020 2021 2022 2023 2024 1Q 2025 2020 2021 2022 2023 2024 1Q 202
Slide 11: Strong Track Record of Performance (GAAP)
STRONG TRACK RECORD OF PERFORMANCE (GAAP) EARNINGS PER SHARE, DILUTED AVAILABLE TO COMMON SHAREHOLDERS ($) RETURN ON EQUITY (ROE) (%) $3.26 $2.97 $2.53 $2.24 9.68% 9.51% $1.93 8.27% 7.04% 6.14% 6.35% $0.52 2020 2021 2022 2023 2024 Q1 2025 2020 2021 2022 2023 2024 1Q 2025 RETURN ON ASSETS (ROA) (%) E
Slide 12: Strong Track Record of Performance (Non-GAAP)
STRONG TRACK RECORD OF PERFORMANCE (NON-GAAP) ADJUSTED OPERATING EARNINGS PER SHARE ADJUSTED OPERATING RETURN AVAILABLE TO COMMON SHAREHOLDERS, DILUTED ($) (1) ON TANGIBLE COMMON EQUITY (ROTCE) (%)(1) 18.07% 17.06% 17.21% $3.53 16.12% $2.92 $2.95 $2.74 12.64% 13.15% $2.21 $0.57 2020 2021 2022 2023 2
Slide 13: Strong Capital Position
STRONG CAPITAL POSITION CAPITAL MANAGEMENT STRATEGY ATLANTIC UNION CAPITAL MANAGEMENT At March 31, 2025 OBJECTIVES ARE TO: • Maintain designation as a “well capitalized” PRO FORMA INCLUDING AOCI institution. REPORTED & HTM UNREALIZED LOSSES • Ensure capital levels are commensurate with the Company’s
Slide 14: AUB Franchise Perspectives
AUB FRANCHISE PERSPECTIVES Including Sandy Spring franchise footprint
Slide 15: Summary of Atlantic Union's Mid-Atlantic Presence
SUMMARY OF ATLANTIC UNION’S MID-ATLANTIC PRESENCE Pro Forma Combined ATTRACTIVE MARKET PRESENCE 1 MARYLAND $38.4 billion $29.9 billion 22 Pro Forma Assets Pro Forma Loans Pro Forma MSAs of Operation VIRGINIA $31.7 billion 183 #1 Largest Regional Bank Pro Forma Deposits Pro Forma Branches in Mid-Atla
Slide 16: Sizeable Opportunity to Take Market Share From the Big Three
SIZEABLE OPPORTUNITY TO TAKE MARKET SHARE FROM THE BIG THREE Statewide Branch Footprint Brings Unique Franchise Value and Significant Growth Opportunity VIRGINIA: ALL BANKS VIRGINIA: BANKS HEADQUARTERED IN VA Growth Franchise Opportunity Strength Rank Institution Deposits ($mm) Market Share (%) Bran
Slide 17: Market Opportunity in Maryland and North Carolina
MARKET OPPORTUNITY IN MARYLAND AND NORTH CAROLINA Growth Opportunity in both Maryland and North Carolina MARYLAND: ALL BANKS NORTH CAROLINA: ALL BANKS Growth Growth Opportunity Opportunity Rank Institution Deposits ($mm) Market Share (%) Branches Rank Institution Deposits ($mm) Market Share (%) Bran
Slide 18: Among the Most Attractive States in USA for Business
AMONG THE MOST ATTRACTIVE Ranked Virginia the Best State for Business for 2024, 2021 and 2020 and 2nd best in 2023 STATES IN USA FOR BUSINESS North Carolina ranked 2nd best in 2024 and best in 2023 Maryland ranked 8th for Technology and Innovation in 2024 MEDIAN HOUSEHOLD INCOME ($) 2024 POPULATION
Slide 19: Among the Most Attractive Markets in USA
AMONG THE MOST ATTRACTIVE MARKETS IN USA LOWEST UNEMPLOYMENT RATES FOR LARGE METRO AREAS March 2025 March 2025 # Metro Area # Metro Area Rate % Rate % 1 Urban Honolulu 2.3 11 Richmond 3.4 Within Virginia, Maryland and North Carolina, we 2 Nashville Davidson Franklin 2.7 11 Austin 3.4 operate in stro
Slide 20: Federal Reserve Bank of Richmond Tariff Analysis of 5th District
FEDERAL RESERVE BANK OF RICHMOND TARIFF ANALYSIS OF 5th DISTRICT • As of April 9, tariffs are not expected to have a disproportionate impact on AUB’s markets. FIGURE 4C: AVERAGE EFFECTIVE TARIFF RATE BY COUNTY SCENARIO 2, FIFTH FEDERAL RESERVE DISTRICT • Industries directly impacted by higher tariff
Slide 21: Sandy Spring Merger Update
SANDY SPRING MERGER UPDATE
Slide 22: Acquisition of Sandy Spring Was Successfully Closed on April 1, 2025
ACQUISITION OF SANDY SPRING WAS SUCCESSFULLY CLOSED ON APRIL 1, 2025 • Transaction was closed on April 1st ACCELERATION OF TRANSACTION CLOSING • Expeditiously received regulatory and shareholder approvals; closed more than 1 quarter earlier than expected as of the October 2024 announcement date • Fo
Slide 23: Increasing Scale With Sandy Spring
INCREASING SCALE WITH SANDY SPRING TOTAL PRO FORMA ASSETS 1 PRO FORMA LOANS HFI 1 PRO FORMA DEPOSITS 1 ($ BILLIONS) ($ BILLIONS) ($ IN BILLIONS) $38.4 $27.9 / $29.9 $31.7 $13.8 Loans to $24.6 $2.0 be sold $11.2 $9.5 $20.4 $18.5 $24.6 $18.4 $20.5 4Q'24 1Q'25 4Q'24 1Q'25 4Q'24 1Q'25 PRO FORMA WEALTH A
Slide 24: Financially Compelling Transaction
FINANCIALLY COMPELLING TRANSACTION Pro Forma Company 1 SHARE HOLDE R V ALUE P ROP OSITION LEADING REGIONAL PRESENCE $11.2 billion 183 #1 Dense, uniquely valuable presence across attractive markets Deposits added in Northern Virginia, Pro Forma Branches Largest Regional Bank in Mid-Atlantic2 Maryland
Slide 25: Recent Integration Roadmap Updates
Recent Integration Roadmap Updates RECENTLY COMPLETED INTERGRATION MILESTONES KEY UPDATES ON CRE LOAN SALE PROCESS Planning to Sell approximately $2 billion of CRE Loans Closed acquisition of Sandy Spring (4/1) as Previously Announced Sale Perimeter Expected to be Similar to Pre- Settled forward sal
Slide 26: Projected Loan Interest Rate Mark Accretion Conversion
Projected Loan Interest Rate Mark Accretion Conversion KEY OBSERVATIONS AND ASSUMPTIONS PROJECTED PRO FORMA EARNINGS COMPOSITION 1 Core cash earnings represents Loan Non-PCD Credit Mark Accretion2 Large Core Cash majority of overall earnings Loan Interest Rate FMV Adjustment Accretion2 Earnings Loan
Slide 27: CET1 Ratio Waterfall
CET1 Ratio Waterfall AUB Stand Alone as of Q1 2025 Combined Projected AUB/SASR at Q2 2025 0.2% 0.0% 10.1% ~10.0% 10.0% (0.2%) M&A Close Settlement of Forward Sale CRE Loan Sale Q2 2025 Retained Earnings Q4 2024 Q4'24 Net Income Dividend on Common Stock RWA 1Q'25 Q1 2025 Q2 2025 Illustrative Illustra
Slide 28: 2025 Financial Outlook
2025 FINANCIAL OUTLOOK1 KEY ASSUMPTIONS1 • 2025 outlook includes nine months Inclusive of Sandy Spring beginning April 1st impact of the Sandy Spring acquisition in results FULL YEAR 2025 OUTLOOK1 • Assumes the proposed CRE loan sale closes by June 30, 2025 Loans (end of period) $28.0 – 29.0 billion
Slide 29: Appendix
APPENDIX Q1 2025 7) Atlantic (4 Union Bankshares
Slide 30: Pro Forma Loan and Deposit Mix at March 31, 2025
PRO FORMA LOAN AND DEPOSIT MIX AT MARCH 31, 2025 PRO FORMA AFTER PROPOSED $2 BILLION LOAN SALE 1 Other Cons. Auto Other Cons.C&D 1 - 4 Resi Auto Other Cons. Auto 1% C&D 1 - 4 Resi LOANS 7% <1% <1% C&D 1 - 4 Resi 2% 7% 8% 1% 0% 10% 13% 8% 1 - 4 Family Cons. 1 - 4 Family Cons. 1 - 4 Family Cons. OO-CR
Slide 31: Non-Owner Occupied Office CRE Portfolio
NON-OWNER OCCUPIED OFFICE CRE PORTFOLIO Pro Forma Combined Basis At March 31,2025 NON-OWNER OCCUPIED OFFICE GEOGRAPHICALLY DIVERSE NON-OWNER OCCUPIED OFFICE PORTFOLIO PORTFOLIO CREDIT QUALITY ($ MILLIONS) BY MARKET DC METRO SUBMARKET* KEY PORTFOLIO METRICS Carolinas $290 District of Columbia $73 Avg
Slide 32: Multifamily CRE Portfolio
MULTIFAMILY CRE PORTFOLIO Pro Forma Combined Basis At March 31,2025 MULTIFAMILY PORTFOLIO CREDIT GEOGRAPHICALLY DIVERSE MULTIFAMILY PORTFOLIO QUALITY ($ MILLIONS) BY MARKET DC METRO SUBMARKET* KEY PORTFOLIO METRICS Carolinas $603 District of Columbia $282 Avg. Multifamily Loan ($ thousands) $3,291 W
Slide 33: Overview of Government-Related Loan Portfolio Exposures
OVERVIEW OF GOVERNMENT-RELATED LOAN PORTFOLIO EXPOSURES Pro Forma Combined Basis As of March 31, 2025 • Government Contracting team has managed through government shutdowns and sequestrations in the KEY METRICS OF GOVERNMENT CONTRACTING PORTFOLIO past. • Focus on national security agency and defense
Slide 34: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES We have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which we use to prepare our financial statements, and should not be considered in isolation
Slide 35: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Adjusted operating measures exclude, as applicable, A DJUS TED O PER A TI N G EA R N I N G S & FI N A N CI A L METR I CS merger-related costs, FDIC special assessments, legal For the three months ended For the years ended reserves associated with our previously
Slide 36: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and ADJ USTE D OP E RATING E ARNINGS & FINANCIAL M E TRICS per share ratios. The Company believes tangible For the three months ended For the years ended a
Slide 37: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO Tangible assets and tangible common equity are (Dollars in thousands, except per share amounts) used in the calculation of certain profitability, As of March 31, 2025 capital, and per share ratios. The
Slide 38: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES RISK-BASED CAPITAL RATIOS In addition to these regulatory capital ratios, the (Dollars in thousands) Company adjusts certain regulatory capital ratios to include the impacts of AOCI, which the As of March 31, 2025 Company has elected to exclude from regulatory
Slide 39: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS Pre-tax pre-provision adjusted earnings (Dollars in thousands) excludes, as applicable, the provision for credit losses, which can fluctuate significantly from For the three months ended period-to-period under t
Slide 40: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES NET INTEREST MARGIN The Company believes net interest (Dollars in thousands) income (FTE), total revenue (FTE), For the three months ended and total adjusted revenue (FTE), 1Q2025 4Q2024 which are used in computing net interest margin (FTE), efficiency ratio Ne
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