Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q2 2024 Earnings Presentation
27 slides from Atlantic Union Bankshares's earnings presentation, Jul 25, 2024
Slide 1: 2nd Quarter 2024 Earnings Presentation
2nd Quarter 2024 Earnings Presentation NYSE: AUB July 25, 2024
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 slides entit
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 $ 24.8 $ 18.3 Carolina and Maryland footprint Assets Loans • #1 regional bank1 deposit market share in Virginia • Strong balance sheet and capital levels $ 20.0 $ 3.6 • Commi
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: Q2 2024 Highlights
Q2 2024 Highlights Loan and Deposit Growth Focus on Integration Positioning for Long Term • Pro forma loan growth, as if the • Core Systems integration completed • Lending pipelines positioned for mid- American National balances were over Memorial Day weekend 2024 single digit annualized loan growth
Slide 7: Q2 2024 Financial Performance At-a-Glance
Q2 2024 Financial Performance At-a-Glance • Reported net income available to common shareholders for the second quarter of 2024 was $22.2 million or $0.25 per share, down $24.6 million or $0.37 per share compared to the prior quarter, primarily driven by the net impact of the following items: • An i
Slide 8: Q2 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses
Q2 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 Q2 Macroeconomic Forecast 12/31/2023 $132.2MM $16.3MM $148.5MM Ending Balance % of loans (0.85%) (0.10%) (0.95%) Moody
Slide 9: Q2 2024 Net Interest Margin
Q2 2024 Net Interest Margin Margin Overview Market Rates 2Q 2024 1Q 2024 2Q 2024 1Q 2024 Net interest margin (FTE)1 3.46% 3.19% EOP Avg EOP Avg Loan yield 6.34% 6.03% Fed funds 5.50% 5.50% 5.50% 5.50% Investment yield 4.07% 3.72% Prime 8.50% 8.50% 8.50% 8.50% Earning asset yield 5.96% 5.62% 1-month
Slide 10: Q2 2024 Noninterest Income and Noninterest Expense
Q2 2024 Noninterest Income and Noninterest Expense Noninterest Income Noninterest Expense ($ thousands) 2Q2024 1Q2024 ($ thousands) 2Q2024 1Q2024 Salaries and benefits $ 68,531 $ 61,882 Service charges on deposit accounts $ 9,086 $ 8,569 Occupancy expenses 7,836 6,625 Other service charges, commissi
Slide 11: Q2 2024 Loan and Deposit Growth
Q2 2024 Loan and Deposit Growth QTD Annualized Loan Growth ($ thousands) 2Q2024 1Q2024 Growth Commercial real estate - non-owner occupied $ 4,906,285 $ 4,225,018 64.9% Commercial real estate - owner occupied 2,397,700 1,981,613 84.5% Construction and land development 1,454,545 1,246,251 67.2% Multif
Slide 12: Strong Capital Position at June 30, 2024
Strong Capital Position at June 30, 2024 Capital Management Strategy Atlantic Union capital management objectives are to: • Maintain designation as a “well capitalized” Proforma including AOCI and Reported institution. Regulatory HTM unrealized losses • Ensure capital levels are commensurate Well wi
Slide 13: 2024 Financial Outlook
2024 Financial Outlook1 Full Year 2024 Outlook 1 Notes1 1Key Assumptions • 2024 outlook includes nine Loans (end of period) ~$18.5 - $19.0B months impact of American National in results Deposits (end of period) ~$20.0 - $20.5B • The outlook includes estimates of merger-related purchase ACL to loans:
Slide 14: Appendix
Appendix d Atlantic Union Bankshares
Slide 15: Commercial Real Estate (CRE) portfolio at June 30, 2024
Commercial Real Estate (“CRE”) portfolio at June 30, 2024 CREby class $ in millions Total Outstandings % of Portfolio Hotel/Motel B&B $962 5.3% Industrial/Warehouse $842 4.6% Office $886 4.8% Retail $1,052 5.7% Self Storage $424 2.3% Senior Living $371 2.0% Other $369 2.0% Total Non-Owner Occupied C
Slide 16: Non-Owner Occupied Office CRE Portfolio at June 30, 2024
Non-Owner Occupied Office CRE Portfolio at June 30, 2024 Medical vs Other Office Medical Office Geographically Diverse Non-Owner Non-Owner Occupied Office 23.0% Occupied Office Portfolio Portfolio Credit Quality By Market ($ millions) Key Portfolio Metrics Carolinas $311 Avg. Office Loan ($ thousand
Slide 17: Multifamily CRE Portfolio at June 30, 2024
Multifamily CRE Portfolio at June 30, 2024 Geographically Diverse Multifamily Multifamily Portfolio Credit Portfolio Quality By Market ($ millions) Key Portfolio Metrics Carolinas $415 Avg. Multifamily Loan ($ thousands) $2,632 Central VA $285 Median Multifamily Loan ($ thousands) $605 Western VA $2
Slide 18: Granular Deposit Base
Granular Deposit Base Customer Deposit Granularity $98,000 $100,000 $89,000 $18,000 $19,000 $20,000 Q2 2023 Q1 2024 Q2 2024 Period End Uninsured and Uncollateralized Deposits as a Percentage of Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size Total Deposits ($ in Millions) $5,375 $5,0
Slide 19: Liquidity Position at June 30, 2024
Liquidity Position at June 30, 2024 Total Liquidity Sources of $6.1 billion ~113% liquidity coverage ratio of uninsured/uncollateralized deposits of $5.4 billion ($ in millions) Fed Funds Lines $592 Discount Window FHLB Borrowing Capacity $1,101 $1,715 Liquidity Sources Total $6.1 billion Secondary
Slide 20: Securities Portfolio at June 30, 2024
Securities Portfolio at June 30, 2024 Securities Balances $ Millions • Total securities portfolio of $3.4 billion with a total unrealized loss of $464.7 million Total AFS (fair value) and HTM (carrying value) • 79% of total portfolio in available-for-sale at an unrealized loss of $420.7 million • 21
Slide 21: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures The Company has provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be consi
Slide 22: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO For the three months ended Adjusted operating measures exclude, as applicable, merger- (Dollars in thousands, except per share amounts) 2Q2024 1Q2024 related costs, an FDIC special assessment, a deferred tax asse
Slide 23: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures NET INTEREST MARGIN The Company believes net interest income (FTE), For the three months ended total revenue (FTE), and total adjusted revenue (Dollars in thousands) 2Q2024 1Q2024 (FTE), which are used in computing net interest Net interest income (GAAP) $ 184,
Slide 24: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of June 30, 2024 Atlantic Union Atlantic Union (Dollars in thousands, except per share amounts) Bankshares Bank Tangible assets and tangible common equity are Tangible Assets used in the calculation
Slide 25: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures All regulatory capital ratios at June 30, 2024 are RISK-BASED CAPITAL RATIOS estimates and subject to change pending the As of June 30, 2024 Company’s filing of its FR Y-9 C. In addition to Atlantic Union Atlantic Union these regulatory capital ratios, the Comp
Slide 26: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures OPERATING MEASURES For the three months ended Tangible assets and tangible common equity are used in (Dollars in thousands) 2Q2024 1Q2024 the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, Return on av
Slide 27: 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 significantly from period-to-period under the (Dollars in thousand
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