Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Barclays Conference 2019
29 slides from Atlantic Union Bankshares's conference presentation, Sep 10, 2019
Slide 1: Investor Presentation - Barclays Conference, September 10, 2019
Investor Presentation Nasdaq: AUB Barclays Conference - September 10, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements • • • • • 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 include, without limitation, projections, predictions, expectations or belie
Slide 3: Additional Information
Additional Information Unaudited Pro Forma Financial Information Any unaudited pro forma financial information included herein, or discussed in connection with, is presented for informational purposes only and does not necessarily reflect the financial results of the combined company had the compani
Slide 4: Brand Transition - A Unified Bank Brand Across All Markets
Brand Transition - A Unified Bank Brand Across All Markets On May 20th, we rebranded Union Bank & Trust to Atlantic Union Bank to reduce brand complexity and ensure recognition and clarity in the marketplace. Maintaining ‘Union’ in the new brand is key because it represents the unification of multip
Slide 5: The Atlantic Union Story: From Virginia Community Bank to Virginia's Bank
The “Atlantic Union” Story: FROM VIRGINI A COM M UNITY BANK TO VIRGINI A’S BANK • “Crown jewel” deposit base - 45% transaction accounts compete against them escape the past Atlantic Union “Soundness, profitability & growth in that order of priority” Underpinning for how we run our company 5 Larger B
Slide 6: Our Acceleration Strategy
Our Acceleration Strategy Establish Focus Design for Success Drive-to-Scale • Set the vision • Recreate a Virginia regional bank • Take back what was lost Establish strategic priorities Align goals & compensation to priorities Make tough decisions Divest non-strategic businesses • • Put the right te
Slide 7: Our Company Highlights
Our Company Highlights ($bn) Branch Footprint • Largest regional banking company headquartered in Virginia with statewide Virginia footprint of 144 branches in all major markets #1 regional bank1 deposit market share in Virginia Positioned for growth with organic and acquisition opportunities Strong
Slide 8: Virginia's Bank
Virginia’s Bank Virginia: All Banks Virginia: Banks RankInstitution Headquartered in VA Rank Institution Deposits ($mm) Market Share Branches Deposits ($mm) Market Share Branches 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 BB&T Corp (“Truist”) Wells Fargo & Co Bank of America Corp. Atlantic Union Bank
Slide 9: Our Presence in Key Markets
Our Presence in Key Markets Deposits ($mm) Market Share Rank Ins titution Deposits ($mm) M arket Share Branche s Rank Institution Branches 1 BB&T Corp. (“Truist”) 2 Wells Fargo & Co. $ 6,038,488 4,672,274 28.2% 21.7 70 55 1 2 3 BB&T Corp (“Truist”) Wells Fargo & Co Bank of America Corp. $39,102 24,0
Slide 10: Diversity Supports Growth In Virginia
Diversity Supports Growth In Virginia security contracts, Non-profit Source: SNL Financial Deposit data as of 6/30/18; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA definitions in SNL 10 Northern Virginia Na
Slide 11: Virginia Market Highlights
Virginia Market Highlights Opportunity in Fast-Growing, Affluent Markets Top 10 Counties in the U.S. – Median HH Income ($000s) (1) $160 $128 $123 $123 $120 $116 $116 $120 $80 $40 $0 Howard, MD San Mateo, CA Santa Clara, Hunterdon, NJ CA Williamson, TN Morris, NJ Top 10 Counties in Virginia – Projec
Slide 12: Among The Most Attractive Markets in USA
Among The Most Attractive Markets in USA ranked Virginia the Best State for Business Pop. (mm) # State HHI ($) # State District of Columbia Maryland Hawaii Alaska New Jersey Massachusetts Connecticut New Hampshire $82,192 81,294 80,637 79,735 78,317 77,248 76,633 75,742 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7
Slide 13: Atlantic Union's 2019 Strategic Priorities
Atlantic Union’s 2019 Strategic Priorities of coaching and development, and Source: SNL Financial and FDIC deposit data Excludes branches with deposits greater than $1.0 billion 13 I ntegr ate Access Leverage commercial expertise and new market opportunities Achieve cost saves and successful convers
Slide 14: Attractive Core Deposit Base
Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at June 30, 2019 - $12.5 Billion Savings 6% Q2 19 Cost of deposits – 93 bps Non-Interest Bearing 24% Jumbo Time 5% 95% core deposits (1) 44% transactional accounts Retail Time 16% #1 in deposit market share for reg
Slide 15: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio Total Loan Portfolio $ 12.2 billion at June 30, 2019 Non-Owner Occupied CRE Composition - $3.7 Billion Consumer 5.7% HELOC 5.4% C&D 10.3% Other 3.3% Small Mixed Use Building 1.4% Special Use 7.4% Other 1.9% Retail 21.0% Senior Living 5.9% CRE - Owner Occupied
Slide 16: Balance Sheet Trends (GAAP)
Balance Sheet Trends (GAAP) Loans ($M) Deposits ($M) $12,221 $11,952 20% CAGR 19% CAGR $12,489 $12,516 $9,716 $9,971 $7,142 $6,307 $6,992 $6,379 $5,671 $5,346 $5,964 $5,639 2014 2015 2016 2017 2018 1Q 2019 2Q 2019 2014 2015 2016 2017 2018 1Q 2019 2Q 2019 Assets ($M) 21% CAGR $17,159 $16,898 $13,766
Slide 17: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) Earnings Per Share ($) Return on Equity (ROE) (%) $2.22 7.86% 7.85% 7.79% $1.77 7.07% $1.67 6.76% 6.37% $1.49 5.30% $1.13 $1.06 2014 2015 2016 2017 2018 1H 2019 2014 2015 2016 2017 2018 1Q 2019 2Q 2019 Return on Assets (ROA) (%) Efficiency Ratio (%) 1.15% 1.
Slide 18: Strong Track Record of Performance (Non-GAAP)
Strong Track Record of Performance (Non-GAAP) Operating Return on Tangible Common Equity (ROTCE) (%)(1) Operating Earnings Per Share ($)(1) $2.71 17% CAGR 17.35% 16.58% 16.27% $1.91 $1.77 12.14% 12.24% $1.49 11.11% $1.43 10.81% $1.36 2014 2015 2016 2017 2018 1H 2019 2014 2015 2016 2017 2018 1Q 2019
Slide 19: Solid Capital Position
Solid Capital Position Capital Position as of June 30, 2019 TCE / TA1 9.3% CET1 Ratio 10.5% Tier 1 Capital Ratio 10.5% Total Capital Ratio 13.0% Leverage Ratio 9.0% CRE / Total Risk-Based Capital (Bank) 293% Capital information presented herein is based on estimates and subject to change pending the
Slide 20: Capital Management
Capital Management Capital Management Priorities Capital Targets based on the following objectives: Excess Capital target is 8.5% 22 $150 million Share Repurchase Plan authorization through June 30, 2021 • Atlantic Union’s Tangible Common Equity Ratio • TCE above 8.5% is considered excess capital as
Slide 21: Total Shareholder Return Performance
Total Shareholder Return Performance Total shareholder return (TSR) has consistently exceeded the KBW Regional Bank (KRX) index return over Y T D 2019 R el at i v e T S R 1 the past 5 years 3 Year R elati v e T S R 1 5 Year R elati v e T S R 1 75.9% 41.0% 31.3% AUB KRX AUB KRX AUB KRX Di vi dends Pa
Slide 22: Investment Thesis
Investment Thesis The Right Scale The Right Markets The Right Team The Right Targets • $17.2 billion in assets • Growing, economically diversified Presence across state • Deep team with broad experience Experience in M&A integration • Targeting top tier operating performance • • Strong market share
Slide 23: Appendix
Appendix A Atlantic (4 Union Bankshares
Slide 24: Reconciliation of Non-GAAP Disclosures: Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Tangible Common Equity As of June 30, 2019 C om m on equi ty ( G AAP) $2,512,295 Les s : G oodw i l l and A m or ti z abl e In tangi bl es $1,013,425 T angi bl e C om m on equi ty ( non - G AAP) $1,498,870 As s e t s ( G AAP) $17,159,384 Les s : G oodw i l l an
Slide 25: Reconciliation of Non-GAAP Disclosures: Operating Earnings Per Share
Reconciliation of Non-GAAP Disclosures Operating Earnings Per Share For the 12 Months Ended For the 3 Months Ended ($ IN THOUSANDS) 2014 2015 2016 2017 2018 3/31/2019 6/30/2019 N et i nc om e ( G A A P ) $52,164 $67, 079 $77, 476 $72, 923 $146, 24 8 $35, 631 $48, 823 P l us : M er ger - r el at e d
Slide 26: Reconciliation of Non-GAAP Disclosures: Return on Assets
Reconciliation of Non-GAAP Disclosures Return on Assets (ROA) For the 12 Months Ended For the 3 Months Ended ($ IN THOUSANDS) 2014 2015 2016 2017 2018 3/31/2019 6/30/2019 A v er age as s et s ( G A A P ) $7, 250, 4 9 4 $7, 492, 8 9 5 $8, 046, 3 0 5 $8, 820, 1 4 2 $13, 181, 6 0 9 $15, 699, 7 4 3 $16,
Slide 27: Reconciliation of Non-GAAP Disclosures: Return on Tangible Common Equity
Reconciliation of Non-GAAP Disclosures Return on Tangible Common Equity (ROTCE) For the 12 Months Ended For the 3 Months Ended ($ IN THOUSANDS) 2014 2015 2016 2017 2018 3/31/2019 6/30/2019 A v er age equi t y ( G A A P ) Les s : A vg G oodw i l l and A m or t i z abl e I nt angi bl es A v g t angi b
Slide 28: Reconciliation of Non-GAAP Disclosures: Efficiency Ratio
Reconciliation of Non-GAAP Disclosures Efficiency Ratio For the 12 Months Ended For the 3 Months Ended ($ IN THOUSANDS) 2014 2015 2016 2017 2018 3/31/2019 6/30/2019 N oni nt er es t ex pens e ( G AAP) $222, 41 9 $206, 31 0 $213, 09 0 $225, 66 8 $337, 76 7 $106, 72 8 $105, 60 8 Les s : M er ger - r e
Slide 29: Reconciliation of Non-GAAP Disclosures: Net Interest Margin
Reconciliation of Non-GAAP Disclosures Net Interest Margin For the 12 Months Ended For the 3 Months Ended ($ IN THOUSANDS) 2014 2015 2016 2017 2018 3/31/2019 6/30/2019 N et i nt er es t i nc om e ( G AAP) $253, 21 3 $250, 45 0 $263, 96 6 $279, 00 7 $426, 69 1 $ 127, 54 7 $138, 59 4 F T E adj us t m