Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Shareholder Meeting (May 2023)
38 slides from Atlantic Union Bankshares's shareholder meeting presentation, May 2, 2023
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting NYSE: AUB May 2, 2023
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, expectations with respec
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: John Asbury, Chief Executive Officer
4 4 John Asbury Chief Executive Officer
Slide 5: Opening the New York Stock Exchange
5 Opening the New York Stock Exchange
Slide 6: Largest Regional Banking Company Headquartered in Virginia
6 Largest Regional Banking Company Headquartered in Virginia Our Company Soundness | Profitability | Growth Data as of 3/31/2023, market capitalization as of 4/24/2023 1) Regional bank defined as having less than $100 billion in assets; rank determined by asset size; data per S&P Global Market Intel
Slide 7: Our Shareholder Value Proposition
7 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 8: Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three
8 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 6/30/22; pro forma for announced transactions Atlantic Union Bank closed 5 Virginia branches on March 1, 2023 Note: Excludes branches with depo
Slide 9: Q1 2023 Highlights and 2023 Outlook
9 Q1 2023 Highlights and 2023 Outlook Loan and Deposit Growth • Funded loan growth with core deposit growth. Total deposit growth of 13.3% quarter over quarter annualized. • 3.8% annualized loan growth in Q1 2023 • Line of Credit Utilization of 33% for Q1 2023 and relatively flat with Q4 2022 • Expe
Slide 10: Stable Deposit Balances
10 5,370 5,362 5,291 4,883 4,578 4,121 3,943 4,354 4,187 4,714 4,151 3,956 3,962 3,923 3,548 1,167 1,166 1,174 1,131 1,048 1,675 1,644 1,744 1,801 2,190 0 58 21 7 378 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Demand Deposits Interest Checking Money Markets Savings Time Deposits Brokered Deposits Stabl
Slide 11: Granular Deposit Base
11 Granular Deposit Base 34% 33% 35% 33% 28% $5,527 $5,351 $5,821 $5,299 $4,591 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Period End Uninsured and Uncollateralized Deposits as a Percentage of Total Deposits ($ in Millions) Top 15 Commercial Deposits by NAICS as of 3/31/2023 NAICS Code/Title % of Total
Slide 12: Diversified and Granular Loan Portfolio
12 Diversified and Granular Loan Portfolio Total Loan Portfolio $14.6 billion at March 31, 2023 Non-Owner Occupied CRE Composition — $4.8 billion Total Portfolio Characteristics Duration Q1 2023 Weighted Average Yield (Tax Equivalent) 1.2 years 5.35% Figures may not total to 100% due to rounding Dur
Slide 13: Our Core Values
13 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 14: Authentically Human - Fostering a People-First Culture
14 81% Authentically Human - Fostering a People-First Culture Engagement Growth & Development ~2/3 Female Workforce Exceeded Benchmark Internal Hires 80% +3 Above Industry Benchmark +3 Above Industry Benchmark +9 Above Industry Benchmark An Employer of Choice Voted Top Workplaces in 2023 Investment
Slide 15: We are focused on three Strategic Priorities
15 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 16: Maria Tedesco, President and Chief Operating Officer
16 16 Maria Tedesco President and Chief Operating Officer
Slide 17: Recent accolades
A Recent accolades Atlantic Union Bankshares Forbes 2023 AMERICA’S Forbes EVE] WORLD'S BEST BANKS 7
Slide 18: Modernization of Atlantic Union Bank
18 Modernization of Atlantic Union Bank We are a union of multiple community banks that have come together over time. With that comes a level of customer-centricity and a sense of community that makes Atlantic Union Bank a very special place. However, the industry is evolving and our customers’ expe
Slide 19: Modernization isn't just about technology
19 Modernization isn’t just about technology, it stretches across all we do and how we do it. PEOPLE PROCESS TECHNOLOGY Those who come together to create value for all our customers, communities, shareholders and each other. Efficient and systematic approach to running our business and delivering ch
Slide 20: Our strategic plan outlined various ways to modernize the bank
20 Our strategic plan outlined various ways in which we plan to change the way we operate and modernize the bank Building and optimizing new products and expertise, then expanding geographies. Going above and beyond to meet and exceed client expectations and drive satisfaction. A strong mass market
Slide 21: Rob Gorman, Chief Financial Officer
21 21 Rob Gorman Chief Financial Officer
Slide 22: 2022 Financial Results
22 2022 Financial Results Full Year 2022 Financial Highlights For the year ended December 31, 2022, net income available to common shareholders was $222.6 million and earnings per common share were $2.97. Excluding the after-tax strategic branch closing and facility consolidation costs ($4.4 million
Slide 23: First Quarter 2023 Financial Highlights
23 First Quarter 2023 Financial Highlights Net income available to common shareholders for the first quarter was $32.7 million or $0.44 per share. Excluding the after-tax losses incurred on the sale of AFS securities of $10.6 million for the first quarter of 2023, and the after-tax legal reserve ass
Slide 24: Strong Capital Position at March 31, 2023
24 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% 12.8% 7.8% 10.8% Tier 1 Capital Ratio 8.0% 10.9% 12.8% 8.8% 10.8% Total Risk Based Capital Ratio 10.0% 13.8% 1
Slide 25: Total Shareholder Return and Dividends
25 $0.54$0.58 $0.68 $0.77$0.81 $0.88 $0.96 $1.00 $1.09 $1.16 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 37.8% 39.4% Proxy Peers AUB 3 Year Relative TSR1 1 As of April 26, 2023 1 Year Relative TSR1 -17.0 % -18.7% Proxy Peers AUB 60.8% 96.9% Proxy Peers AUB 10 Year Relative TSR1 Dividends Paid
Slide 26: Appendix
Appendix Atlanti h Gnion Bankshares
Slide 27: Market Highlights: Opportunity in Affluent Markets
27 Market Highlights Opportunity in Affluent Markets Source: S&P Global Market Intelligence Boxes denote county/city of operation (1) Median HH Income projected for 2022 Top Counties in the U.S. — Projected Median HH Income ($000s)(1) $162 $149 $147 $142 $137 $137 $136 $133 $132 $129 $129 $126 Loudo
Slide 28: Attractive Core Deposit Base
28 Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at March 31, 2023 — $16.5 billion Cost of deposit data is as of or for the three months ended March 31, 2023 (1) Core deposits defined as total deposits less jumbo time deposits and brokered deposits • Q1 2023 cost of d
Slide 29: Non-Owner-Occupied CRE Portfolio
29 Non-Owner-Occupied CRE Portfolio as of March 31, 2023 $ in millions Total Outstandings % of Portfolio Multi Family $822 5.6% Retail $847 5.8% Hotel/Motel B&B $745 5.1% Office $729 5.0% Industrial/Warehouse $641 4.4% Senior Living $367 2.5% Self Storage $341 2.3% Other $299 2.0% Total Non-Owner Oc
Slide 30: Non-Owner-Occupied Office CRE Portfolio
30 Office 75% Medical Office 25% By Market ($ millions) Key Portfolio Metrics Carolinas $165 Fredericksburg Area $134 Central VA $105 Northern VA/Maryland $115 Western VA $98 Eastern VA $94 Other $18 Total $729 Avg. Office Loan ($ millions) $1.7 Loan Loss Reserve / Office Loans 2.3% NCOs / Office Lo
Slide 31: Balance Sheet Trends (GAAP)
31 $9,971 $13,305 $15,723 $16,611 $15,932 $16,456 2018 2019 2020 2021 2022 1Q 2023 13% CAGR Balance Sheet Trends (GAAP) Data as of or for the twelve months ended each respective year, except for 1Q 2023, which is as of or for the three months ended March 31, 2023 Loans ($mm) Deposits ($mm) Assets ($
Slide 32: Reconciliation of Non-GAAP Disclosures
32 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 33: Reconciliation of Non-GAAP Disclosures
33 Reconciliation of Non -GAAP Disclosures Adjusted operating measures exclude, as applicable, merger and rebranding -related costs, nonrecurring tax expenses, the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losse
Slide 34: Reconciliation of Non-GAAP Disclosures
34 Reconciliation of Non-GAAP Disclosures The adjusted operating efficiency ratio (FTE) excludes, as applicable, merger-related costs, rebranding costs, the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gain on sale of
Slide 35: Reconciliation of Non-GAAP Disclosures
35 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 36: Reconciliation of Non-GAAP Disclosures
36 Reconciliation of Non-GAAP Disclosures All regulatory capital ratios at March 31, 2023 are estimates and subject to change pending the Company’s filing of its FR Y-9 C. In addition to these regulatory capital ratios, the Company adjusts certain regulatory capital ratios to include the impacts of
Slide 37: Reconciliation of Non-GAAP Disclosures
37 Reconciliation of Non-GAAP Disclosures Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, losses on sale of securities, a legal reserve associated with an ongoing
Slide 38: Reconciliation of Non-GAAP Disclosures
38 Reconciliation of Non -GAAP Disclosures Adjusted operating measures exclude, as applicable, losses on sale of securities, a legal reserve associated with an ongoing regulatory matter previously disclosed, as well as strategic branch closure initiatives and related facility consolidation costs (pr
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