Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q4 2021 Earnings Presentation
23 slides from Atlantic Union Bankshares's earnings presentation, Jan 25, 2022
Slide 1: 4th Quarter FY2021 Earnings Presentation
4th Quarter FY2021 Earnings Presentation Nasdaq: AUB January 25, 2022
Slide 2: Forward Looking Statements
2 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, including without limitation, statements regarding the Company’s outlook on fut
Slide 3: Additional Information
3 Additional Information 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 financial measures are a supplement to GAAP, wh
Slide 4: Largest Regional Banking Company Headquartered in Virginia
4 Largest Regional Banking Company Headquartered in Virginia Our Company Soundness | Profitability | Growth Data as of 12/31/2021 , market capitalization as of 1/19/2022 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size; data per S&P Global Market Inte
Slide 5: Our Value Proposition
5 Our Value Proposition Strong Growth Potential Organic & acquisition opportunities Financial Strength Solid balance sheet & capital levels Leading Regional Presence Unique value in branch footprint across attractive market Attractive Financial Profile Solid dividend yield & payout ratio with earnin
Slide 6: 2021 Highlights and 2022 Outlook
6 2021 Highlights and 2022 Outlook Return to Loan Growth • 11.7% annualized loan growth, ex - PPP, during Q4 and 1.6% loan growth, ex - PPP, for 2021 • Expect high single digit loan growth for 2022 Asset Quality • Net Charge - offs at 2 bps annualized for Q4 2021 • 2021 Full year Net Charge - offs a
Slide 7: Banking Differently: Online Origination Channels
7 13% 28% 87% 72% Q4 2020 Q4 2021 Branch Online Banking Differently Checking Origination Channel Savings Origination Channel 20% 10% 70% Deposit Transactions by Channel 2021 Mobile Check Deposit Teller ATM 15% 17% 85% 83% Q4 2020 Q4 2021 Branch Online More consumer checking and savings accounts are
Slide 8: Our Core Values
8 Caring Working together toward common goals, acting with kindness, respect and a genuine concern for others. Courageous Speaking openly, honestly and accepting our challenges and mistakes as opportunities to learn and grow. Committed Driven to help our clients, Teammates and company succeed, doing
Slide 9: Q4 2021 Financial Performance At-a-Glance
9 Q4 2021 Financial Performance At - a - Glance For non - GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non - GAAP Disclosures” Note: all tables presented dollars in thousands, expect per share amounts • Net income available to
Slide 10: Q4 Allowance for Credit Loss and Provision for Credit Losses
10 Q4 Allowance For Credit Loss (ACL) and Provision for Credit Losses Note: Figures may not foot due to rounding 10 Q4 Macroeconomic Forecast Moody’s December 2021 Baseline Forecast • US GDP averages 4.4% growth in 2022 and 2.9% in 2023. The national unemployment rate averages 3.6 % in 2022 and 3.5%
Slide 11: Q4 2021 Net Interest Margin
11 Q4 2021 Net Interest Margin Market Rates 4Q2021 3Q2021 EOP Avg EOP Avg Fed funds 0.25% 0.25% 0.25% 0.25% Prime 3.25% 3.25% 3.25% 3.25% 1 - month Libor 0.10% 0.09% 0.08% 0.09% 2 - year Treasury 0.73% 0.52% 0.28% 0.22% 10 - year Treasury 1.51% 1.53% 1.49% 1.32% Margin Overview 4Q2021 3Q2021 Net int
Slide 12: Q4 2021 Noninterest Income and Noninterest Expense
12 Q4 2021 Noninterest Income and Noninterest Expense Noninterest income increased $6.5 million from the prior quarter to $36.4 million from $29.9 million due to: • Increased service charges on accounts of $610,000 due to seasonal increase • Higher asset management fees of $ 210,000 due to increased
Slide 13: Q4 2021 Loan and Deposit Growth
13 Q4 2021 Loan and Deposit Growth • At December 31, 2021, loans held for investment totaled $ 13.2 billion, an increase of $ 56.3 million from the prior quarter driven by increases in commercial loan balances ex PPP of $345.4 million and increases in consumer loan balances ex PPP of $27.1 million,
Slide 14: Strong Capital Position at December 31, 2021
14 Strong Capital Position at December 31, 2021 Capital Ratio Regulatory Well Capitalized Atlantic Union Bankshares* Atlantic Union Bank* Common Equity Tier 1 Ratio (CET1) 7.0% 10.2% 13.0% Tier 1 Capital Ratio 8.5% 11.3% 13.0% Total Risk Based Capital Ratio 10.5% 14.2% 13.4% Leverage Ratio 5.0% 9.0%
Slide 15: Post-Pandemic Financial Targets
15 Post - Pandemic Financial Targets Committed to top - tier financial performance 13 % – 15 % Return on Tangible Common Equity 1.1 % – 1.3 % Return on Assets ≤ 53 % Efficiency Ratio (FTE) Atlantic Union is committed to achieving top tier financial performance and providing our shareholders with abo
Slide 16: Appendix
Appendix A Atlantic _ Union Bankshares
Slide 17: Reconciliation of Disclosures
17 Reconciliation of Non - GAAP Disclosures The Company has provided supplemental performance measures on a tax - equivalent, tangible, operating, adjusted, or pre - tax pre - pr ovision basis. These non - GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s finan
Slide 18: Reconciliation of Disclosures
18 Reconciliation of Non - GAAP Disclosures Adjusted operating measures exclude the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, a
Slide 19: Reconciliation of Disclosures
19 Reconciliation of Non - GAAP Disclosures Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE) and adjusted operating efficiency ratio (FTE), respectively, provide valuable additional insight into the net interest margin and the efficien
Slide 20: Reconciliation of Disclosures
20 Reconciliation of Non - GAAP Disclosures 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
Slide 21: Reconciliation of Disclosures
21 Reconciliation of Non - GAAP Disclosures 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
Slide 22: Reconciliation of Disclosures
22 Reconciliation of Non - GAAP Disclosures Pre - tax pre - provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period - to - period under the CECL methodology, income tax expense, gains or losses related to balance sheet repositioning (princi
Slide 23: Reconciliation of Disclosures
23 Reconciliation of Non - GAAP Disclosures 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 clarity on the Company’s organic
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