Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q3 2024 Earnings Presentation
28 slides from Atlantic Union Bankshares's earnings presentation, Oct 22, 2024
Slide 1: 3rd Quarter 2024 Earnings Presentation
3rd Quarter 2024 Earnings Presentation NYSE: AUB October 21, 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 Carolina and Maryland $ 24.8 $ 18.3 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: Q3 2024 Highlights
Q3 2024 Highlights Loan and Deposit Growth Improved Financial Ratios Positioning for Long Term • Loans were relatively flat for the quarter • Adjusted operating return on tangible • Lending pipelines remain healthy common equity of 19.15%1 • Deposit growth of approximately 6% • Focus on performance
Slide 7: Q3 2024 Financial Performance At-a-Glance
Q3 2024 Financial Performance At-a-Glance • Reported net income available to common shareholders for the third quarter of 2024 was $73.4 million or $0.82 per share, up $51.3 million or $0.57 per share compared to the prior quarter, primarily driven by the net impact of the following items: Summarize
Slide 8: Q3 2024 Allowance For Credit Losses and Provision for Credit Losses
Q3 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 Q3 Macroeconomic Forecast 03/31/2024 $136.2MM $15.6MM $151.8MM Ending Balance % of loans (0.86%) (0.10%) (0.96%) Moody
Slide 9: Q3 2024 Net Interest Margin
Q3 2024 Net Interest Margin Margin Overview Market Rates 3Q2024 2Q2024 3Q2024 2Q2024 Net interest margin (FTE)1 3.38% 3.46% EOP Avg EOP Avg Loan yield 6.35% 6.34% Fed funds 5.00% 5.43% 5.50% 5.50% Investment yield 3.92% 4.07% Prime 8.00% 8.44% 8.50% 8.50% Earning asset yield 5.94% 5.96% 1-month SOFR
Slide 10: Q3 2024 Noninterest Income and Noninterest Expense
Q3 2024 Noninterest Income and Noninterest Expense Noninterest Income Noninterest Expense ($ thousands) 3Q2024 2Q2024 ($ thousands) 3Q2024 2Q2024 Salaries and benefits $ 69,454 $ 68,531 Service charges on deposit accounts $ 9,792 $ 9,086 Occupancy expenses 7,806 7,836 Other service charges, commissi
Slide 11: Q3 2024 Loan and Deposit Growth
Q3 2024 Loan and Deposit Growth QTD Annualized Loan Growth ($ thousands) 3Q2024 2Q2024 Growth • At September 30, 2024, LHFI totaled $18.3 billion, a decrease of $9.9 Commercial real estate - non-owner occupied $ 4,885,785 $ 4,906,285 (1.7%) million or 0.2% (annualized) from the prior quarter. Commer
Slide 12: Strong Capital Position at September 30, 2024
Strong Capital Position at September 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 We
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 September 30, 2024
Commercial Real Estate (“CRE”) portfolio at September 30, 2024 All Other Loans 40.2% Total Non-Owner Occupied CRE by class CRE 26.6% $ in millions Total Outstandings % of Portfolio Hotel/Motel B&B $996 5.4% Industrial/Warehouse $820 4.5% Office $876 4.8% Retail $1,075 5.8% Self Storage $435 2.4% Sen
Slide 16: Non-Owner Occupied Office CRE Portfolio at September 30, 2024
Non-Owner Occupied Office CRE Portfolio at September 30, 2024 Medical vs Other Office Medical Office Geographically Diverse Non-Owner Non-Owner Occupied Office 23.7% Occupied Office Portfolio Portfolio Credit Quality By Market ($ millions) Key Portfolio Metrics Carolinas $309 Avg. Office Loan ($ tho
Slide 17: Multifamily CRE Portfolio at September 30, 2024
Multifamily CRE Portfolio at September 30, 2024 Geographically Diverse Multifamily Multifamily Portfolio Credit Portfolio Quality By Market ($ millions) Key Portfolio Metrics Carolinas $403 Avg. Multifamily Loan ($ thousands) $2,667 Central VA $273 Median Multifamily Loan ($ thousands) $649 Western
Slide 18: Attractive Core Deposit Base
Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at September 30, 2024 — $20.3 billion • Q3 2024 cost of deposits – 2.57% Brokered, 7% Savings, 5% • 88% core deposits(1) Jumbo Time, 5% Non-Interest • 48% transactional accounts Bearing, 22% Retail Time, 14% Interest Check
Slide 19: Granular Deposit Base
Granular Deposit Base Customer Deposit Granularity $100,000 $92,000 $89,000 $19,000 $20,000 $19,000 Q3 2023 Q2 2024 Q3 2024 Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size Period End Uninsured and Uncollateralized Deposits as a Percentage of Total Deposits ($ in Millions) $5,551 $5,3
Slide 20: Liquidity Position at September 30, 2024
Liquidity Position at September 30, 2024 Total Liquidity Sources of $9.2 billion ~166% liquidity coverage ratio of uninsured/uncollateralized deposits of $5.6 billion ($ in millions) Discount Window Fed Funds Lines $3,951 $597 FHLB Borrowing Capacity Liquidity $2,323 Sources Total $9.2 billion Secon
Slide 21: Securities Portfolio at September 30, 2024
Securities Portfolio at September 30, 2024 • Total securities portfolio of $3.4 billion with a total unrealized loss of $364.7 million Investment Securities Balances • 78% of total portfolio in available-for-sale at (in millions) an unrealized loss of $334.5 million Total AFS (fair value) and HTM (c
Slide 22: 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 23: Reconciliation of Non-GAAP Disclosures: Adjusted Operating Earnings and Efficiency Ratio
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO For the three months ended Adjusted operating measures exclude, as applicable, merger- related costs, a deferred tax asset write-down, and gain (loss) (Dollars in thousands, except per share amounts) 3Q2024 2Q202
Slide 24: Reconciliation of Non-GAAP Disclosures: Net Interest Margin
Reconciliation of Non-GAAP Disclosures NET INTEREST MARGIN The Company believes net interest income (FTE), total revenue (FTE), and total adjusted revenue For the three months ended (FTE), which are used in computing net interest (Dollars in thousands) 3Q2024 2Q2024 margin (FTE), efficiency ratio (F
Slide 25: Reconciliation of Non-GAAP Disclosures: Tangible Assets, Tangible Common Equity
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of September 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 calcul
Slide 26: Reconciliation of Non-GAAP Disclosures: Risk-Based Capital Ratios
Reconciliation of Non-GAAP Disclosures RISK-BASED CAPITAL RATIOS As of September 30, 2024 All regulatory capital ratios at September 30, 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-9 C. In addi
Slide 27: Reconciliation of Non-GAAP Disclosures: Operating Measures
Reconciliation of Non-GAAP Disclosures OPERATING MEASURES Tangible assets and tangible common equity are used in For the three months ended the calculation of certain profitability, capital, and per (Dollars in thousands) 3Q2024 2Q2024 share ratios. The Company believes tangible assets, Return on av
Slide 28: Reconciliation of Non-GAAP Disclosures: Pre-Tax Pre-Provision Earnings
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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