Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (February 2016)
20 slides from Atlantic Union Bankshares's investor presentation, Feb 5, 2016
Slide 1: Investor Presentation February/March 2016
Investor Presentation February/March 2016
Slide 2: Forward-Looking Statement
Forward - Looking Statement Certain statements in this report 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 fu
Slide 3: Company Overview
Company Overview • The largest community banking organization headquartered in Virginia • Holding company formed in 1993 – Banking history goes back more than 100 years • 7 whole bank and 16 branch acquisitions since 1993 • Assets of $7.7 Billion • Comprehensive financial services provider offering
Slide 4: Union's Strengths
Union’s Strengths • Unique branch network across Virginia, competitive banking products and services and a loyal customer base • Well positioned for organic growth given commercial activity, household income levels and population growth in its footprint • Strong balance sheet and solid capital base
Slide 5: Attractive market demographics across Virginia regions
Source: SNL Financial Hampton Northern Northern Roads Richmond Virginia Southwest Charlottesville Rappahannock Fredericksburg Neck Total Region Region Region Region Region Region Region Region UBSH Regions Total Households 451,124 391,588 420,049 258,821 220,068 198,251 134,666 26,024 2,100,591 Proj
Slide 6: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Richmond • State Capital • Fortune 500 headquarters (6) • Finance and insurance • VCU & VCU Medical Center Fredericksburg • Defense and security contractors • Health care • Retail • Real Estate development Charlottesville • University of Virginia & Medical Colle
Slide 7: Union Bank & Trust
Union Bank & Trust • 124 branches – closing net 4 branches in 2 nd quarter 2016 • Only Virginia based bank with a statewide footprint • 1,272 FTEs • 5 5 Commercial Lenders • $ 5.7 Billion Loans • $6.0 Billion Deposits • 147,000+ Core Consumer Households 7
Slide 8: Virginia branch footprint by county
Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rappahannock Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Rockbridge Nelson Nelson Nelson Nelson Nelson Nelson Nelson Nelson Nelson Accomack Accomack Acc
Slide 9: Largest Community Bank in Virginia: Deposit Market Share
Source: SNL Financial; Deposit data as of 6/30/2015; Pro forma for recent acquisitions Largest Community Bank in Virginia Rank Institution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Wells Fargo & Co. (CA) 290 36,737 20.1 2 Bank of America Corp. (NC) 142 27,609 15.1 3 BB&T Co
Slide 10: Union Wealth Management
Union Wealth Management • Trust, Asset Management, Private Banking, Brokerage and Financial Planning services • 70 FTEs • $1.8B in AUM and AUA, the majority of which is managed assets • $9.1 million fiduciary and asset management fees generated in 2015 • Organic and Acquisitive growth opportunities
Slide 11: Union Mortgage Group
Union Mortgage Group • 20 offices: 18 in Virginia, 1 each in Maryland and North Carolina • 111 FTEs – 43 loan officers • $540 Million in 2015 originations; $113.0 million in 4Q15 (36% refinance) • $202,000 net loss in 2015 • Over $5 million or 36bps in cost efficiencies realized in 2015 • Costs to p
Slide 12: 2015 Highlights
2015 Highlights • Net Income was $67.1 million; earnings per share of $1.49 • Loan growth in 2015 was 6.6%*; annualized loan growth was 9.2% in the fourth quarter • Deposit balances grew 5.8% in 2015; annualized deposit growth in the fourth quarter was 10% • Asset Quality remained strong as nonperfo
Slide 13: Balance Sheet Trends
Balance Sheet Trends 13 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2009 2010 2011 2012 2013 2014 2015 $ 1,916 $ 3,070 $ 3,175 $ 3,298 $ 3,237 $ 5,639 $ 5,964 Deposits ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2009 2010 2011 2012 2013 2014 201
Slide 14: Capital Ratios, Dividends and Share Repurchases
Repurchased 1.1 million shares in 2012 Capital Ratios 14 • Since 2011, increased quarterly dividend from $0.07/share to $ 0.19/share; target payout ratio is 45 - 50% • Repurchased 4.4 million shares over past 4 years • As of December 31, 2015, approximately $22.4 million remaining on $25 million sto
Slide 15: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after - tax acquisition expenses and acquisition accounting impact 15 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2010* 2011* 2012* 2013* 2014* 2015* 0.78% 0.80% 0.89% 0.90% 0.91% 0.90% Return on Average Assets (ROA) 8.90% 9.10% 9.30% 9.50% 9.70% 9.90%
Slide 16: Top-Tier Financial Performance Focus
Top - Tier Financial Performance Focus • Union is committed to achieving top tier financial performance and providing our shareholders with above average returns on their investment • Key financial performance metrics benchmarked against top quartile peers • Top Tier Financial Performance targets: 1
Slide 17: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 ROTCE - 2015 ROTCE Target 0.7 - 0.9% 0.3 - 0.5% 0.4 - 0.6% 0.3 - 0.5% 0.1 - 0.3% 0.7 - 1.0% 13+% 10.0% Loan Growth with Stabilized NIM Rate rise of 100 bps Normalized OREO Expense Management Improved
Slide 18: 2016 Outlook
2016 Outlook • Stable to growing economy in footprint • Mid single digit loan growth • Modest net interest margin compression • Continued asset quality improvement – reduction of OREO expenses • Improving ROA, ROTCE and Efficiency Ratio • Closing 4 branches (net) in 2Q 18
Slide 19: Value Proposition
Value Proposition • Statewide Branch footprint is a competitive advantage and brings a unique franchise value • Strong balance sheet and capital base • Organic growth and acquisition opportunities • Experienced management team • Committed to top tier financial performance • Shareholder Value Driven
Slide 20: Thank You!
THANK YOU! UNION
Union Bankshares — Investor Presentation (February 2016) on 6ix