Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (May 2017)
24 slides from Atlantic Union Bankshares's investor presentation, May 11, 2017
Slide 1: Investor Presentation May/June 2017
Investor Presentation May/June 2017 Exhibit 99.1
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain statements in this report may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about future e
Slide 3: Company Snapshot
Company Snapshot 3 Overview Branch Map • Shares listed under “UBSH” on NASDAQ • Headquartered in Richmond, VA • 100+ years of banking history • 113 branches across more than 50 counties and 10 MSAs throughout Virginia - Only Virginia-based bank with a statewide footprint - Largest community banking
Slide 4: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Richmond • State Capital • Fortune 500 headquarters (6) • Finance and insurance • VCU & VCU Medical Center Fredericksburg • Defense and security contractors • Health care • Retail • Real Estate development Charlottesville • University of Virginia & Medical Colle
Slide 5: Union Bank & Trust Key Statistics
Union Bank & Trust Key Statistics • 113 (-10 in 2016; -1 YTD 2017) Branches • 1,309 Full Time Equivalent • 58 Commercial Bankers • $6.55 billion Loans • $6.61 billion Deposits • 178+ thousand Consumer Households 5 Union is the only Virginia-based bank with a statewide footprint
Slide 6: MSA Market Share
MSA Market Share Rank Company Deposits Total Market Deposits Market Share Roanoke Deposits: $378 mm Market Tot.: $7.3 bn Mkt. Share: 5.2% Rank: #6 Branches: 8 Staunton / Harrisonburg Rank: #2 Deposits: $516 mm Market Tot.: $4.0 bn Mkt. Share: 12.9% Branches: 11 Blacksburg Rank: #2 Deposits: $614 mm
Slide 7: Largest Community Bank Headquartered in Virginia
Source: SNL Financial; Deposit data as of 6/30/2016; Pro forma for recent acquisitions Largest Community Bank Headquartered in Virginia Deposit Market Share – Virginia 7 Rank Parent Company Name Number of Branches Total Deposits ($000) Total Deposit Market Share (%) 1 Wells Fargo & Co. (CA) 287 38,6
Slide 8: Union Wealth Management Key Statistics
Union Wealth Management Key Statistics • Trust, Asset Management, Private Banking, Brokerage and Financial Planning Services • Acquired Old Dominion Capital Management in May 2016 Growth • $2.4B in AUM and AUA, the majority of which is managed assets Size • $2.8 million, +$650,000 from 1Q16 Income •
Slide 9: 1Q 2017 Financial Highlights
1Q 2017 Financial Highlights 9 • $19.1million, +$2.2 million or +12.8%, from 1Q16 Net Income • $0.44, +6 cents, or 15.8%, from 1Q16 Earnings per share • 92 basis points, + 4 bps from 1Q16 ROA • 11.20%, +107 bps from 1Q16 ROTCE • 65.3%, -82 bps from 1Q16 Efficiency • +3.9% from 4Q16, annualized to 15
Slide 10: Balance Sheet Trends
Balance Sheet Trends 10 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 2016 1Q2017 $3,298 $3,237 $5,639 $5,964 $6,379 $6,614 Deposits ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 2016 1Q2
Slide 11: Capital Management
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2012 2013 2014 2015 2016 1Q2017 14.57% 14.16% 13.38% 12.46% 13.56% 13.30% 8.96% 8.93% 9.27% 9.20% 8.41% 8.36% Total capital ratio Tangible Equity/Tangible Assets Repurchased 1.1 million shares in 2012 Capital Management 11 • Since 2011, incre
Slide 12: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after-tax acquisition expenses and acquisition accounting impact 12 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2012* 2013* 2014* 2015* 2016* 1Q17* 0.89% 0.90% 0.91% 0.90% 0.96% 0.92% Return on Average Assets (ROA) 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00
Slide 13: Top-Tier Financial Performance
Top-Tier Financial Performance Focus • Union is committed to achieving top tier financial performance and providing our shareholders with above average returns on their investment • Key financial performance metrics benchmarked against top quartile peers • Top Tier Financial Performance targets: 13
Slide 14: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity Revenue Expense This path also delivers Return on Assets of above 1.1% 14 2.00 4.00 6.00 8.00 10.00 12.00 14.00 ROTCE - 2016 ROTCE Target 11.5% 1.0% - 1.3% 0.3% 0.1% - 0.2% 0.3% - 0.5% Loan Growth with Stabilized Spread FF Rate Rise of 25 bps Wealth
Slide 15: 2017 Outlook
2017 Outlook • Expect stable economy in Virginia footprint Economy • Low double digit Loan Growth • Stabilizing in 2Q • Modest expansion in second half of 2017 Net Interest Margin • Expect improvement in return on assets, return on tangible common equity and efficiency ratio vs. 2016 Key Financial M
Slide 16: 2017 Priorities
2017 Priorities 16 • Loan portfolio • Revenue streams Diversification • Pace loan growth with deposit growth • Target 95% loan to deposit ratio over time Core Funding • Drive efficiency ratio <60% • More revenue + lower cost structure Efficiency • Finalize preparations in 2017 $10 billion asset cros
Slide 17: Value Proposition
Value Proposition • Statewide branch footprint is a competitive advantage and brings a unique franchise value Scale • Balance sheet and Capital levels Strength • Organic and acquisition opportunities Growth • Committed to top-tier financial performance Opportunity • Solid dividend yield and payout r
Slide 18: Appendix
APPENDIX \ OE ———
Slide 19: CEO Succession Plan
CEO Succession Plan • John Asbury became President & CEO of Union Bank & Trust and President of Union Bankshares Corporation on October 1; CEO of Holding company on January 2, 2017 – succeeding Billy Beale. • Asbury was most recently President and CEO of First National Bank of Santa Fe, a multi-stat
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio 20 Source: SNL Financial, Company documents Loan Composition at March 31, 2017 – $6.554 Billion Portfolio Characteristics Average loan size $143,000 Weighted average maturity 83 months Yield YTD (Tax Equivalent) 4.35% Composition By Type Composition By Region NOO CRE/Total
Slide 21: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 21 Source: SNL Financial, Company documents CRE Composition at March 31, 2017 - $2.856 Billion Portfolio Characteristics 10 largest loans 7.0% of CRE portfolio 10 largest loans 2.6% of total loan portfolio Weighted average maturity 61 months Weighted average coupon 3
Slide 22: Construction and Development Loans
Construction and Development Loans 22 Source: Company documents C&D Composition at March 31, 2017 - $770 million Portfolio Characteristics 10 largest loans 17.0% of C&D portfolio 10 largest loans 2.6% of total loan portfolio Weighted average maturity 20 months Weighted average coupon 4.21% C&D Loans
Slide 23: Core Deposit Base
Core Deposit Base 23 (1) Time deposits greater than $100,000 Note: Minimal exposure to CDARS/ICS deposits Source: SNL Financial, Company documents Deposit Composition at March 31, 2017 - $6.614 Billion Deposit Base Characteristics Average cost of interest bearing deposits 41 basis points Average tot
Slide 24: Union Mortgage Group
Union Mortgage Group • 22 offices: 20 in Virginia, 1 each in Maryland and North Carolina • 101 FTEs – 39 loan officers • $100.2 million of originations 1Q17; (34% refinance) • $4,000 net income in 1Q17 • Opportunities: • Salesforce expansion in Virginia growth markets • Process improvement 24