Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (February 2022)
30 slides from Atlantic Union Bankshares's investor presentation, Feb 7, 2022
Slide 1: Investor Presentation February - March 2022
Investor Presentation Nasdaq: AUB February - March 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 Atlantic Union Bankshares Co
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 1/25/2022; branch data as of 3/1/2022 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size; dat
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: Our Markets
6 Our Markets Source: SNL Financial; excludes branches greater than $5 billion Deposit data as of 6/30/2021; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA definitions in SNL 6 Richmond State Capital, Fortune
Slide 7: Virginia's Bank
7 Virginia’s Bank Source: SNL Financial and FDIC deposit data Deposit and branch data as of 6/30/21; pro forma for announced transactions and AUB branch closings Note: Excludes branches with deposits greater than $5.0 billion Virginia: All Banks Virginia: Banks Headquartered in VA Statewide Branch F
Slide 8: Virginia Is Among the Most Attractive Markets in USA
8 Virginia Is Among the Most Attractive Markets in USA Source: SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics, Fortune.com , U.S. News & World Report; Forbes, CNBC, U.S. Small Business Administration, USA Today; Business Facilities 8 ranked Virginia the Best State for Busines
Slide 9: 4Q 2021 Highlights and 2022 Outlook
9 4Q 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 - off
Slide 10: Our Core Values
10 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, doin
Slide 11: Customer Experience Successes
11 11 Customer Experience Successes For J.D. Power 2021 award information, visit jdpower.com /awards Atlantic Union is #1 among small businesses in the South Region with $1 - $10mm in revenue. Atlantic Union believes that the successful launch of PPP and support of the Small Business Community durin
Slide 12: Balance Sheet Trends (GAAP)
12 Balance Sheet Trends (GAAP) Data as of or for the twelve months ended each respective year Loans ($mm) Deposits ($mm) Assets ($mm) $6,307 $7,142 $9,716 $12,611 $14,021 $13,196 2016 2017 2018 2019 2020 2021 16 % CAGR $6,379 $6,992 $9,971 $13,305 $15,723 $16,611 2016 2017 2018 2019 2020 2021 21 % C
Slide 13: Strong Track Record of Performance (GAAP)
13 Strong Track Record of Performance (GAAP) pre and post 2020 COVID - 19 Impact Data as of or for the twelve months ended each respective year Earnings Per Share Available to Common Shareholders ($) Return on Equity (ROE) (%) Return on Assets (ROA) (%) Efficiency Ratio (%) $1.77 $1.67 $2.22 $2.41 $
Slide 14: Strong Track Record of Performance (Non-GAAP)
14 Strong Track Record of Performance (Non - GAAP) pre and post 2020 COVID - 19 Impact Data as of or for the twelve months ended each respective year (1) Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconciliation of No n - GAAP Disclosure
Slide 15: Credit Loss Trends (GAAP)
15 Credit Loss Trends (GAAP) Data as of or for the twelve months ended each respective year Note : The Company adopted ASU 2016 - 13, Financial Instruments and Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1 , 2020. Provision for Credit Losses ($mm) Prov
Slide 16: Allowance For Credit Loss (ACL) and Provision for Credit Losses
16 Allowance For Credit Loss (ACL) and Provision for Credit Losses Note: Figures may not foot due to rounding 16 Q4 2021 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.
Slide 17: Strong Capital Position at December 31, 2021
17 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 18: Post-Pandemic Financial Targets
18 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 19: Our Long-Term Strategic Priorities
19 Our Long - Term Strategic Priorities Diversify Loan Portfolio and Revenue Streams • 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 Grow Core Funding •
Slide 20: Appendix
Appendix A Atlantic _ Union Bankshares
Slide 21: Virginia Market Highlights
21 Virginia Market Highlights Opportunity in Fast - Growing, Affluent Markets Source: S&P Global Market Intelligence Boxes denote county/city of operation (1) Median HH Income projected for 2021 Top Counties in the U.S. — Projected Median HH Income ($000s) (1) Top 10 Counties in Virginia — Projected
Slide 22: Our Presence in Key Markets
22 Our Presence in Key Markets Source: S&P Global Market Intelligence Note: Deposit data excludes branches with deposits greater than $5 billion Deposit as of 6/30/21; pro forma for announced transactions and AUB branch closures (1) Northern Virginia includes only the Virginia branches of the Washin
Slide 23: Diversified and Granular Loan Portfolio
23 Diversified and Granular Loan Portfolio Total Loan Portfolio $ 13.2 billion at December 31, 2021 Non - Owner Occupied CRE Composition — $ 4.6 billion Total Portfolio Characteristics Duration Q4 2021 Weighted Average Yield (Tax Equivalent) 1.2 years 3.81% Figures may not total to 100% due to round
Slide 24: Attractive Core Deposit Base
24 Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at December 31, 2021 — $16.6 billion (1) Core deposits defined as total deposits less jumbo time deposits • Q4 2021 cost of deposits – 12 bps • 97% core deposits (1) • 56% transactional accounts Non - Interest Bearing ,
Slide 25: Reconciliation of Non-GAAP Disclosures
25 Reconciliation of Non - GAAP Disclosures The Company has provided supplemental performance measures on a tax - equivalent, tangible, operating, or adjusted basis .. These non - GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and shoul
Slide 26: Reconciliation of Non-GAAP Disclosures
26 Reconciliation of Non - GAAP Disclosures Adjusted operating measures exclude merger and rebranding - related costs , nonrecurring tax expenses, the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of
Slide 27: Reconciliation of Non-GAAP Disclosures
27 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
Slide 28: Reconciliation of Non-GAAP Disclosures
28 Reconciliation of Non - GAAP Disclosures The adjusted operating efficiency ratio (FTE) excludes merger - related costs, rebranding costs , the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gains or losses related to
Slide 29: Reconciliation of Non-GAAP Disclosures
29 Reconciliation of Non - GAAP Disclosures Tangible assets, tangible common equity, and adjusted leverage ratio are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity, adjusted leverage ratio and the related
Slide 30: Reconciliation of Non-GAAP Disclosures
30 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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