Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (August 2021)
33 slides from Atlantic Union Bankshares's investor presentation, Aug 5, 2021
Slide 1: Investor Presentation August - September 2021
Investor Presentation Nasdaq: AUB August - September 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 are statements that include projections, predictions, expectations, or beliefs about
Slide 3: Additional Information
Additional Information 3 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 disclosures have limitations as analytical tools an
Slide 4: Our Company
Our Company 4 Branch Footprint Data as of 6/30/2021, market capitalization as of 7/28/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size Assets Loans Deposits Market Capitalization $20.0 $13.7 $16.7 $2.8 • Largest regional banking company headquart
Slide 5: Our Markets - Diversity Supports Growth In Virginia
Richmond Our Markets - Diversity Supports Growth In Virginia 5 Source: SNL Financial; excludes branches greater than $5 billion Deposit data as of 6/30/2020; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA def
Slide 6: Virginia's Bank
Virginia’s Bank 6 Virginia: All Banks Virginia: Banks Headquartered in VA Rank Institution Deposits ($mm) Market Share (%) Branches 1 Truist Financial Corp $48,832 23.8% 368 2 Wells Fargo & Co 33,337 16.2 230 3 Bank of America Corp. 21,769 10.6 118 4 Atlantic Union Bankshares Corp 15,360 7.5 123 5 U
Slide 7: Our Presence in Key Markets
Our Presence in Key Markets 7 Source: S&P Global Market Intelligence Note: Deposit data excludes branches with deposits greater than $5 billion Deposit data as of 6/30/20; pro forma for announced transactions and AUB branch count is proforma based on completed branch closings (1) Northern Virginia i
Slide 8: Among The Most Attractive Markets in USA
Among The Most Attractive Markets in USA 8 Fortune 500 Companies # State # Companies 1 New York 54 2 California 53 3 Texas 50 4 Illinois 37 5 Ohio 27 6 Virginia 22 7 Pennsylvania 22 8 Florida 18 9 Georgia 18 10 New Jersey 17 11 Michigan 17 12 Massachusetts 17 13 Minnesota 16 14 Connecticut 13 15 Ten
Slide 9: Virginia Market Highlights
$149 $141 $138 $137 $135 $130 $130 $129 $126 $125 $0 $40 $80 $120 $160 Loudoun, VA Falls Church, VA Santa Clara, CA San Mateo, CA Marin, CA Somerset, NJ Arlington, VA Fairfax, VA Howard, MD Douglas, CO 6.9% 6.6% 6.0% 5.8% 5.8% 5.7% 5.4% 5.1% 5.0% 4.9% 0.0% 2.5% 5.0% 7.5% 10.0% Loudoun, VA New Kent,
Slide 10: 2021 Operating Environment
2021 Operating Environment 10 Soundness Profitability Growth At June 30,2021 Assets $20.0B Loans $13.7B Deposits $16.7B Managed through COVID-19 pandemic: • Pivoted to a new remote work and branch operating model • Focused on Teammates, clients, communities and shareholders • SBA Paycheck Protection
Slide 11: Atlantic Union's Long-Term Strategic Priorities
Atlantic Union’s Long-Term Strategic Priorities 11 • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time • Grow fee-based products and services Diversify Loan Portfolio and Revenue Streams • Fund loan
Slide 12: Core Values Refined
Core Values Refined 12 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 c
Slide 13: Customer Experience Successes
Customer Experience Successes 13 AUB Overall (Verint/Foresee) 2019 2020 YOY Overall Satisfaction 86 87 +1 Recommend AUB 85 87 +2 Increase Business 84 86 +2 Make Banking Easy 87% 88% +1% Net Promoter Score(NPS) 57 61 +4 Atlantic Union Bank is ranked #1 in Customer Satisfaction with Consumer Banking i
Slide 14: Excellence in Small Business Banking
Excellence in Small Business Banking 14 2020 Greenwich Excellence Award Winner, South Region Greenwich Excellence 2020 Awards Based on over 12,000 interviews with small businesses across the country. 95 74 70 69 0 10 20 30 40 50 60 70 80 90 100 Atlantic Union Bank Big Bank #1 Big Bank #2 Big Bank #3
Slide 15: Balance Sheet Trends (GAAP)
$8,427 $9,315 $13,766 $17,563 $19,628 $19,989 2016 2017 2018 2019 2020 2Q 2021 $6,379 $6,992 $9,971 $13,305 $15,723 $16,659 2016 2017 2018 2019 2020 2Q2021 $6,307 $7,142 $9,716 $12,611 $14,021 $13,698 2016 2017 2018 2019 2020 2Q2021 Balance Sheet Trends (GAAP) 15 Loans ($MM) Deposits ($MM) Assets ($
Slide 16: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) pre and post 2020 COVID-19 Impact 16 Data as of or for the twelve months ended each respective year except for the first half of 2021, which is the first 6 months ended on June 30, 2021 Return on Assets (ROA) (%) Return on Equity (ROE) (%) Efficiency Ratio (
Slide 17: Strong Track Record of Performance (Non-GAAP)
Strong Track Record of Performance (Non-GAAP) pre and post 2020 COVID-19 Impact 17 Data as of or for the twelve months ended each respective year except for the first half of 2021, which is the first 6 months ended on June 30, 2021 (1) Non-GAAP financial measure; See reconciliation to most directly
Slide 18: Credit Loss Trends (GAAP)
18 Provision for Credit Losses ($M) Provision for Credit Losses as % of Average Loans (%) Credit Loss Trends (GAAP) Net Charge-offs ($M) Net Charge-offs as % of Average Loans (%) Data as of or for the twelve months ended each respective year except for the first half of 2021, which is the first 6 mo
Slide 19: Capital Management Strategy
* Capital information presented herein is based on estimates and subject to change pending the Company’s filing of its FR Y-9C Capital Management Strategy Capital Targets Capital Management Priorities Excess Capital Deployment AUB’s establishes capital targets based on the following objectives: Ma
Slide 20: Q2 Allowance For Credit Loss and Provision for Credit Losses
Q2 Allowance For Credit Loss (ACL) and Provision for Credit Losses 20 Q2 Macroeconomic Forecast Q2 Additional Considerations Moody’s June Baseline Forecast • US GDP averages 6.9% growth in 2021 and 5% in 2022. The unemployment rate averages 5.4% in 2021 and 3.7% in 2022. • Virginia’s unemployment ra
Slide 21: 2021 Operating Environment - Managing through the Pandemic
2021 Operating Environment – Managing through the Pandemic 21 Soundness Profitability Growth During challenging times, it is important to remember our governing philosophy –“Soundness, Profitability, & Growth – in that order of priority” This core philosophy is serving us well as we manage the Com
Slide 22: Appendix
Appendix h Atlantic 4 Union Bankshares
Slide 23: Credit Loss Trends Excluding Impact of PPP Loans (Non-GAAP)
23 Provision for Credit Losses ($M) Provision for Credit Losses as % of Adjusted Average Loans (%)(1) Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP) Net Charge-offs ($M) Net Charge-offs as % of Adjusted Average Loans (%)(1) Data as of or for the twelve months ended each respective year
Slide 24: Pre-tax pre-provision (PTPP) Performance (Non-GAAP)
24 PTPP Adjusted Operating Earnings per Share Available to Common Shareholders, diluted (EPS) ($)(1) Pre-tax pre-provision (PTPP) Performance (Non-GAAP) PTPP Adjusted Operating Return on Assets (ROA) (%)(1) PTPP Adjusted Operating Earnings Available to Common Shareholders ($)(1) PTPP Adjusted Operat
Slide 25: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio 25 Note: Figures may not total to 100% due to rounding Total Loan Portfolio $ 13.7 billion at June 30, 2021 Non-Owner Occupied CRE Composition - $4.5 Billion Total Portfolio Characteristics Duration Q2 2021 Weighted Average Yield (Tax Equivalent) 1.21 years 3.
Slide 26: Attractive Core Deposit Base
Attractive Core Deposit Base 26 (1) Core deposits defined as total deposits less jumbo time deposits Deposit Base Characteristics Deposit Composition at June 30, 2021 - $16.7 Billion • Q2 2021 Cost of deposits – 18 bps • 97% core deposits (1) • 54% transactional accounts Non-Interest Bearing, 31% NO
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 27 Operating Earnings Per Share The Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted, or pre-tax pre-provision basis. These non-GAAP financial measures are supplements to GAAP, which is used to prepare th
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 28 Operating Earnings Per Share Adjusted operating measures exclude the after-tax effect of merger and rebranding-related costs unrelated to the Company’s normal operations. In addition, adjusted operating measures exclude the gains or losses related to balance
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 29 Operating Earnings Per Share Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, merger and rebranding-related costs, income tax expense, gains
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 30 Operating Earnings Per Share 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 clarit
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 31 Operating Earnings Per Share The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, merger and rebranding-related costs and gains or losses related to balance sheet repositioning (principally composed of gains and losse
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 32 Tangible assets, tangible common equity, and leverage ratio are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity, leverage ratio and the related ratios are meaningfu
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 33 ($ IN THOUSANDS) Operating Earnings Per Share 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 pro
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