Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (May 2021)
34 slides from Atlantic Union Bankshares's investor presentation, May 6, 2021
Slide 1: Investor Presentation May - June 2021
Investor Presentation Nasdaq: AUB May - June 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements in this presentation 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
Slide 3: Additional Information
Additional Information 3 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 disclosures have limitations as analytical tools an
Slide 4: Our Company
Our Company 4 Branch Footprint Data as of 3/31/2021, market capitalization as of 5/3/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size Assets Loans Deposits Market Capitalization $19.9 $14.3 $16.3 $3.1 • Largest regional banking company headquarte
Slide 5: Our Markets - Diversity Supports Growth In Virginia
Richmond Our Markets - Diversity Supports Growth In Virginia 5 Source: SNL Financial; excludes branches greater than $5 billion Deposit data as of 6/30/2020; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA def
Slide 6: Virginia's Bank
Virginia’s Bank 6 Virginia: All Banks Virginia: Banks Headquartered in VA Rank Institution Deposits ($mm) Market Share (%) Branches 1 Truist Financial Corp $48,832 23.8% 436 2 Wells Fargo & Co 33,337 16.2 250 3 Bank of America Corp. 21,769 10.6 121 4 Atlantic Union Bankshares Corp 15,360 7.5 123 5 T
Slide 7: Our Presence in Key Markets
Our Presence in Key Markets 7 Source: S&P Global Market Intelligence Note: Deposit data excludes branches with deposits greater than $5 billion Deposit data as of 6/30/20; pro forma for announced transactions and AUB branch count is proforma based on completed branch closings (1) Northern Virginia i
Slide 8: Among The Most Attractive Markets in USA
Among The Most Attractive Markets in USA 8 Fortune 500 Companies # State # Companies 1 New York 54 2 California 53 3 Texas 50 4 Illinois 37 5 Ohio 27 6 Virginia 22 7 Pennsylvania 22 8 Florida 18 9 Georgia 18 10 New Jersey 17 11 Michigan 17 12 Massachusetts 17 13 Minnesota 16 14 Connecticut 13 15 Ten
Slide 9: Virginia Market Highlights
$149 $141 $138 $137 $135 $130 $130 $129 $126 $125 $0 $40 $80 $120 $160 Loudoun, VA Falls Church, VA Santa Clara, CA San Mateo, CA Marin, CA Somerset, NJ Arlington, VA Fairfax, VA Howard, MD Douglas, CO 6.9% 6.6% 6.0% 5.8% 5.8% 5.7% 5.4% 5.1% 5.0% 4.9% 0.0% 2.5% 5.0% 7.5% 10.0% Loudoun, VA New Kent,
Slide 10: 2021 Operating Environment
2021 Operating Environment 10 Soundness Profitability Growth At March 31,2021 Assets $19.9B Loans $14.3B Deposits $16.3B Managing through COVID- 19 pandemic: • Pivoted to a new remote work and branch operating model • Focused on Teammates, clients, communities and shareholders • SBA Paycheck Protect
Slide 11: Atlantic Union's Long-Term Strategic Priorities
Atlantic Union’s Long-Term Strategic Priorities 11 • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time • Grow fee-based products and services Diversify Loan Portfolio and Revenue Streams • Fund loan
Slide 12: Customer Experience Successes
Customer Experience Successes 12 AUB Overall (Verint/Foresee) 2019 2020 YOY Overall Satisfaction 86 87 +1 Recommend AUB 85 87 +2 Increase Business 84 86 +2 Make Banking Easy 87% 88% +1% Net Promoter Score(NPS) 57 61 +4 J.D. Power awards AUB #1 in Customer Satisfaction with Retail Banking in the Mid-
Slide 13: Excellence in Small Business Banking
Excellence in Small Business Banking 13 2020 Greenwich Excellence Award Winner, South Region Greenwich Excellence 2020 Awards Based on over 12,000 interviews with small businesses across the country. 95 74 70 69 0 10 20 30 40 50 60 70 80 90 100 Atlantic Union Bank Big Bank #1 Big Bank #2 Big Bank #3
Slide 14: Balance Sheet Trends (GAAP)
$8,427 $9,315 $13,766 $17,563 $19,628 $19,855 2016 2017 2018 2019 2020 1Q2021 $6,307 $7,142 $9,716 $12,611 $14,021 $14,272 2016 2017 2018 2019 2020 1Q2021 $6,379 $6,992 $9,971 $13,305 $15,723 $16,298 2016 2017 2018 2019 2020 1Q2021 Balance Sheet Trends (GAAP) 14 Loans ($MM) Deposits ($MM) Assets ($M
Slide 15: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) pre and post 2020 COVID-19 Impact 15 Data as of or for the twelve months ended each respective year and the three months ended March 31, 2021 Return on Assets (ROA) (%) Return on Equity (ROE) (%) Efficiency Ratio (%) Earnings Per Share Available to Common Sh
Slide 16: Strong Track Record of Performance (Non-GAAP)
Strong Track Record of Performance (Non-GAAP) pre and post 2020 COVID-19 Impact 16 Data as of or for the twelve months ended each respective year and the three months ended March 31, 2021 (1) Non-GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reco
Slide 17: Credit Loss Trends (GAAP)
17 Provision for Credit Losses ($M) Provision for Credit Losses as % of Average Loans (%) Credit Loss Trends (GAAP) Net Charge-offs ($M) Net Charge-offs as % of Average Loans (%) Data as of or for the twelve months ended each respective year and the three months ended March 31, 2021 Note: The Compan
Slide 18: Capital Management Strategy
* Capital information presented herein is based on estimates and subject to change pending the Company’s filing of its FR Y-9C Capital Management Strategy Capital Targets Capital Management Priorities Excess Capital Deployment AUB’s establishes capital targets based on the following objectives: Ma
Slide 19: Allowance For Credit Loss and Provision for Credit Losses
Allowance For Credit Loss (ACL) and Provision for Credit Losses 19 Q1 Macroeconomic Forecast Q1 Additional Considerations Moody’s March Baseline Forecast US GDP returns to pre-COVID levels in Q2 2021 and averages 5.7% growth in 2021 and 2022. The unemployment rate averages 5.7% in 2021 and 4.3% in 2
Slide 20: 2021 Operating Environment – Managing through the Pandemic
2021 Operating Environment – Managing through the Pandemic 20 Soundness Profitability Growth During challenging times, it is important to remember our governing philosophy –“Soundness, Profitability, & Growth – in that order of priority” This core philosophy is serving us well as we manage the Com
Slide 21: Appendix
Appendix 7) Atlantic /4 Union Bankshares
Slide 22: Covid-19 Loan Modifications
Covid-19 Loan Modifications 22 • As of April 15, 2021 ~$64 million in loans, or 0.5% of the total loan portfolio excluding PPP loans, are in some form of a COVID Modification of which 85% of the balances are Commercial loans. • ~44% of the remaining commercial loan modifications as of April 15, 2021
Slide 23: COVID-19 Sensitive Loan Segment Details
COVID-19 Sensitive Loan Segment Details 23 Total Portfolio as of March 31, 2021 Remaining Modifications as of April 15, 2021 Count Balance Exposure Count Balance % of Portfolio Retail Trade 1,074 $ 535,806,799 $ 590,334,281 1 $ 401,117 0.1% Restaurant 524 $ 209,862,124 $ 217,569,767 2 $ 1,704,564 0.
Slide 24: Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP)
24 Provision for Credit Losses ($M) Provision for Credit Losses as % of Adjusted Average Loans (%)(1) Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP) Net Charge-offs ($M) Net Charge-offs as % of Adjusted Average Loans (%)(1) Data as of or for the twelve months ended each respective year
Slide 25: Pre-tax pre-provision (PTPP) Performance (Non-GAAP)
25 PTPP Adjusted Operating Earnings per Share Available to Common Shareholders, diluted (EPS) ($)(1) Pre-tax pre-provision (PTPP) Performance (Non-GAAP) PTPP Adjusted Operating Return on Assets (ROA) (%)(1) PTPP Adjusted Operating Earnings Available to Common Shareholders ($)(1) PTPP Adjusted Operat
Slide 26: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio 26 Note: Figures may not total to 100% due to rounding Total Loan Portfolio $ 14.3 billion at March 31, 2021 Non-Owner Occupied CRE Composition - $4.5 Billion Total Portfolio Characteristics Duration Q1 2021 Weighted Average Yield (Tax Equivalent) 1.04 years 3
Slide 27: Attractive Core Deposit Base
Attractive Core Deposit Base 27 (1) Core deposits defined as total deposits less jumbo time deposits Deposit Base Characteristics Deposit Composition at March 31, 2021 - $16.3 Billion • Q1 2021 Cost of deposits – 23 bps • 96% core deposits (1) • 53% transactional accounts Non-Interest Bearing, 31% N
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 28 Operating Earnings Per Share 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 supplements to GAAP, which is used to prepare th
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 29 Operating Earnings Per Share Adjusted operating measures exclude the after-tax effect of merger and rebranding-related costs unrelated to the Company’s normal operations. In addition, adjusted operating measures exclude the gains or losses related to balance
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 30 Operating Earnings Per Share Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, merger and rebranding-related costs, income tax expense, gains
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 31 Operating Earnings Per Share PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarit
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 32 Operating Earnings Per Share The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, merger and rebranding-related costs and gains or losses related to balance sheet repositioning (principally composed of gains and losse
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 33 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 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 34 ($ IN THOUSANDS) Operating Earnings Per Share PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it pro
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