Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q4 2024 Earnings Presentation
28 slides from Atlantic Union Bankshares's earnings presentation, Jan 23, 2025
Slide 1: 4th Quarter and Full Year 2024 Earnings Presentation
4th Quarter and Full Year 2024 Earnings Presentation NYSE: AUB January 23, 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 on the slides e
Slide 3: Additional Information
Additional Information Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other This presentation does not constitute an offer to sell or a solicitation of an offer to buy than in accordance with generally accepted acco
Slide 4: Our Company
Our Company Soundness | Profitability | Growth Highlights ($bn) Branch/Office Footprint • 129 branches across Virginia, North Carolina and Maryland $ 24.6 $ 18.5 footprint • #1 regional bank1 deposit Assets Loans market share in Virginia • Strong balance sheet and capital levels • Committed to top-t
Slide 5: Our Shareholder Value Proposition
Leading Regional Presence Dense, uniquely valuable presence across attractive markets Our Shareholder Value Proposition Attractive Financial Profile Financial Strength Solid dividend yield Solid balance sheet & payout ratio with & capital levels earnings upside Peer-Leading Strong Growth Performance
Slide 6: Q4 2024 and Full Year 2024 Highlights
Q4 2024 and Full Year 2024 Highlights Loan and Deposit Growth Financial Ratios Positioning for Long Term • Loans growth of approximately 3% • Q4 2024 adjusted operating return on • Lending pipelines remain healthy annualized for the 4th quarter tangible common equity of 15.30%1 and Full Year 2024 ad
Slide 7: Q4 2024 Financial Performance At-a-Glance
Q4 2024 Financial Performance At-a-Glance • Reported net income available to common shareholders for the fourth Summarized Income Statement quarter of 2024 was $54.8 million or $0.60 per diluted share, down $18.6 million or $0.22 per diluted share compared to the prior quarter, 4Q2024 3Q2024 primari
Slide 8: Q4 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses
Q4 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses Allowance for Loan Reserve for Unfunded Allowance for & Lease Losses (ALLL) Commitments (RUC) Credit Losses Q4 Macroeconomic Forecast 06/30/2024 $158.1MM $17.6MM $175.7MM Ending Balance % of loans (0.86%) (0.10%) (0.96%) Moody
Slide 9: Q4 2024 Net Interest Margin
Q4 2024 Net Interest Margin Margin Overview Market Rates 4Q2024 3Q2024 4Q2024 3Q2024 Net interest margin (FTE)1 3.33% 3.38% EOP Avg EOP Avg Loan yield 6.14% 6.35% Fed funds 4.50% 4.82% 5.00% 5.43% Investment yield 3.87% 3.92% Prime 7.50% 7.83% 8.00% 8.44% Earning asset yield 5.74% 5.94% 1-month SOFR
Slide 10: Q4 2024 Noninterest Income and Noninterest Expense
Q4 2024 Noninterest Income and Noninterest Expense Noninterest Income Noninterest Expense ($ thousands) 4Q2024 3Q2024 ($ thousands) 4Q2024 3Q2024 Salaries and benefits $ 71,297 $ 69,454 Service charges on deposit accounts $ 9,832 $ 9,792 Occupancy expenses 7,964 7,806 Other service charges, commissi
Slide 11: Q4 2024 Loan and Deposit Growth
Q4 2024 Loan and Deposit Growth QTD Annualized Loan Growth ($ thousands) 4Q2024 3Q2024 Growth • At December 31, 2024, LHFI totaled $18.5 billion, an increase of Commercial real estate - non-owner occupied $ 4,935,590 $ 4,885,785 4.1% $133.3 million or 2.9% (annualized) from the prior quarter. Commer
Slide 12: Strong Capital Position at December 31, 2024
Strong Capital Position at December 31, 2024 Capital Management Strategy Atlantic Union capital management objectives are to: • Maintain designation as a “well capitalized” institution. Proforma including AOCI and • Ensure capital levels are commensurate Reported with the Company’s risk profile, cap
Slide 13: 2025 AUB Standalone Financial Outlook
2025 AUB Standalone Financial Outlook1 1Key Assumptions Full Year 2025 Outlook 1 • 2025 outlook does not include Loans (end of period) Mid-Single Digit Growth the financial impact of the pending Sandy Spring acquisition in results Deposits (end of period) Mid-Single Digit Growth • The Federal Reserv
Slide 14: Appendix
Appendix d Atlantic Union Bankshares
Slide 15: Commercial Real Estate (CRE) portfolio at December 31, 2024
Commercial Real Estate (“CRE”) portfolio at December 31, 2024 CRE by class $ in millions Total Outstandings % of Portfolio Hotel/Motel B&B $997 5.4% Industrial/Warehouse $892 4.8% Office $882 4.8% Retail $1,059 5.7% Self Storage $436 2.4% Senior Living $341 1.8% Other $330 1.8% Total Non-Owner Occup
Slide 16: Non-Owner Occupied Office CRE Portfolio at December 31, 2024
Non-Owner Occupied Office CRE Portfolio at December 31, 2024 Medical vs Other Office Medical Office Geographically Diverse Non-Owner Non-Owner Occupied Office 23.3% Occupied Office Portfolio Portfolio Credit Quality By Market ($ millions) Key Portfolio Metrics Carolinas $330 Avg. Office Loan ($ thou
Slide 17: Multifamily CRE Portfolio at December 31, 2024
Multifamily CRE Portfolio at December 31, 2024 Geographically Diverse Multifamily Multifamily Portfolio Credit Portfolio Quality By Market ($ millions) Key Portfolio Metrics Carolinas $359 Avg. Multifamily Loan ($ thousands) $2,526 Western VA $256 Median Multifamily Loan ($ thousands) $646 Central V
Slide 18: Attractive Core Deposit Base
Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at December 31, 2024 — $20.4 billion • Q4 2024 cost of deposits – 2.48% Brokered, 6% Savings, 5% • 88% core deposits(1) Jumbo Time, 6% Non-Interest • 48% transactional accounts Bearing, 21% Retail Time, 14% Interest Checki
Slide 19: Granular Deposit Base
Granular Deposit Base Period End Uninsured and Uncollateralized Deposits as a Customer Deposit Granularity Percentage of Total Deposits ($ in Millions) $5,992 $5,551 $5,375 $5,094 $4,922 29% 29% 29% 27% 27% $98,000 $92,000 $94,000 $19,000 $19,000 $20,000 Q4 2023 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 20
Slide 20: Liquidity Position at December 31, 2024
Liquidity Position at December 31, 2024 Total Liquidity Sources of $8.4 billion ~140% liquidity coverage ratio of uninsured/uncollateralized deposits of $6.0 billion ($ in millions) Fed Funds Lines Discount Window $597 $3,014 FHLB Borrowing Capacity Liquidity $2,447 Sources Total $8.4 billion Second
Slide 21: Securities Portfolio at December 31, 2024
Securities Portfolio at December 31, 2024 • Total securities portfolio of $3.3 billion with a total Investment Securities Balances unrealized loss of $445.9 million (in millions) • 78% of total portfolio book value in available- Total AFS (fair value) and HTM (carrying value) for-sale at an unrealiz
Slide 22: 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 23: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO For the three months ended For the years ended December 31, Adjusted operating measures exclude, as applicable, (Dollars in thousands, except per share amounts) 4Q2024 3Q2024 2024 2023 strategic cost saving initi
Slide 24: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue NET INTEREST MARGIN (FTE), which are used in computing net interest For the three months ended margin (FTE), efficiency ratio (FTE) and adjusted operating efficiency
Slide 25: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of December 31, 2024 Atlantic Union Atlantic Union Tangible assets and tangible common equity are Bankshares Bank (Dollars in thousands, except per share amounts) used in the calculation of certain
Slide 26: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures RISK-BASED CAPITAL RATIOS As of December 31, 2024 All regulatory capital ratios at December 31, 2024 Atlantic Union Atlantic Union are estimates and subject to change pending the (Dollars in thousands) Bankshares Bank Company’s filing of its FR Y-9C. In additio
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Tangible assets and tangible common equity are used in OPERATING MEASURES the calculation of certain profitability, capital, and per For the three months ended For the years ended December 31, share ratios. The Company believes tangible assets, (Dollars in thou
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Pre-tax pre-provision adjusted earnings PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS excludes, as applicable, the provision for For the three months ended credit losses, which can fluctuate (Dollars in thousands) 4Q2024 3Q2024 significantly from period-to-
Atlantic Union Bankshares — Q4 2024 Earnings Presentation on 6ix