Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (May 2015)
25 slides from Atlantic Union Bankshares's investor presentation, May 13, 2015
Slide 1: Investor Presentation May/June 2015
Investor Presentation May/June 2015
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 $7.4 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: Union Footprint
Union Footprint 5
Slide 6: Organic growth opportunities in our footprint
O Source : CPG analysis of data from Nielsen, 2014; and SNL Financial, LC, 2015. rganic growth opportunities in our footprint Charlottesville Region Fredericksburg Region Hampton Roads Region Northern Neck Region Northern Virginia Region Rappahannock Region Richmond Region Southwest Region Total UBS
Slide 7: 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 8: Union Bank & Trust
Union Bank & Trust • 131 branches – closing 7 branches by end of August • Only Virginia based bank with a statewide footprint • 1,307 FTEs • 5 7 Commercial Lenders • $5.4 Billion Loans • $5.7 Billion Deposits • 146,000+ Core Consumer Households • Net operating earnings of $69.8 million in 2014 • 0.9
Slide 9: Strong Deposit Franchise
NC DC VA AL CT DE GA IL IN KY MA MD MI MS NJ NY OH RI SC TN WV Strong Deposit Franchise 9 Source: SNL Financial, FDIC and MapInfo Professional as of 6/30/2014 Note: Richmond market total deposits includes non - retail deposits; Fredericksburg market defined as Caroline, Fredericksburg Cit y, King Ge
Slide 10: Top Community Bank Market Share
Top Community Bank Market Share 10 Source: SNL Financial - Deposit data as of 6/30/2014 Rank Institution Number of Branches Total Deposits ($000) Market Share (%) 1 Wells Fargo & Co. (CA) 291 31,222,493 18.25% 2 Bank of America Corp. (NC) 153 23,745,941 13.88% 3 BB&T Corp. (NC) 361 21,538,540 12.59%
Slide 11: Union Mortgage Group
Union Mortgage Group • 19 offices: 16 in Virginia, 1 each in Maryland, North Carolina and South Carolina • 116 FTEs – 44 loan officers • $138.7 million in 1Q15 originations – 47% refinance • $267,000 net loss in 1Q15 • Completed a systemic change and complete platform rebuild in 2014. Work began in
Slide 12: Union Wealth Management
Union Wealth Management • Trust, Asset Management, Private Banking and Brokerage services • 68 FTEs • $1.8B in AUM and AUA, the majority of which is managed assets • $2.2 million in fees generated in 1Q15 • Organic and Acquisitive growth opportunities • Expand services to existing customers • Target
Slide 13: Uniquely Positioned To Grow
Uniquely Positioned To Grow • Unmatched footprint in Virginia – significant barriers for competitors to overcome • Higher lending capacity than other Virginia - based banks – larger potential customer base • Expansion opportunities in Northern Virginia and Virginia Beach • Consolidation opportunitie
Slide 14: 2014 Financial Highlights
2014 Financial Highlights • 2014 Operating Net Income (1) was $66.3 million and operating earnings per share were $1.44 • The Community Banking segment operating earnings were $69.8 million, or $1.52 per share • The mortgage segment reported a net loss of $3.5 million ($0.08 per share) • StellarOne
Slide 15: First Quarter 2015 Highlights
First Quarter 2015 Highlights • Net Income for the first quarter was $15.7 million and earnings per share were $0.35 • The Community Banking segment earnings were $16.0 million, or $0.36 per share • The mortgage segment reported a net loss of $0.3 million ($ 0.01 per share) • Annualized Loan growth
Slide 16: Balance Sheet Trends
Balance Sheet Trends 16 $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 1Q 2015 $ 1,874 $ 2,837 $ 2,819 $ 2,967 $ 3,039 $ 5,346 $ 5,388 Loans ($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 1Q
Slide 17: Share Repurchases and Capital Ratios
Repurchased 1.1 million shares in 2012 Capital Ratios 17 • Repurchased 3.8 million shares over past 3 years • Since 2011, increased quarterly dividend from $0.07/share to $0.17/share • As of May 1, 2015, approximately $ 9 million remaining on $65 million stock buyback authorization Repurchased 500,0
Slide 18: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends 18 * excludes after - tax acquisition expenses and acquisition accounting impact 0.70% 0.75% 0.80% 0.85% 0.90% 0.95% 2010* 2011* 2012* 2013* 2014* 1Q15 0.78% 0.80% 0.89% 0.90% 0.91% 0.86% Return on Average Assets (ROA) 9.00% 9.20% 9.40% 9.60% 9.80% 10.00% 10.20
Slide 19: 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: •
Slide 20: 2015 Outlook
2015 Outlook • Leveraging new franchise • Stable to growing economy in footprint • Mid single digit loan growth • Modest net interest margin compression • Continued asset quality improvement – reduction of OREO • Improving ROA, ROTCE and Efficiency Ratio • $65 million in share repurchases authorized
Slide 21: 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 22: Appendix
APPENDIX UNION
Slide 23: Loan Portfolio
Loan Portfolio 23 03/31/2015 Change 12/14 to 03/15 $ % of Portfolio % of Type Construction, Land Development, and Other Land $657.6 12.2% $1.2 - 0.1% 0.2% Commercial Real Estate $2,377.3 44.1% $28.1 0.2% 1.2% Residential 1 - 4 Family $916.6 17.0% - $8.8 - 0.3% - 1.0% Equity Lines of Credit $515.2 9.
Slide 24: NPAs by Type
NPAs by Type 24 03/31/2015 Change 12/14 to 03/15 $ % of Portfolio % of Type Construction and Land Development $3.0 7.0% - $0.3 0.1% - 8.7% Commercial $3.9 9.1% - $1.6 - 2.5% - 28.9% Commercial NonOwner Occupied $3.3 7.8% - $2.6 - 4.7% - 43.6% Commercial Owner Occupied $4.3 10.0% $3.3 7.9% 328.4% Con
Slide 25: OREO
OREO 25 03/31/2105 Change 12/14 to 03/15 $ % of Portfolio % of Type Construction and Land Development $11.7 46.2% - $0.1 4.2% - 0.4% King Carter Golf Community $6.0 23.6% $0.0 2.3% 0.4% Commercial $0.1 0.2% $0.0 0.0% 0.0% Commercial Non - Owner Occupied $0.7 2.6% - $0.1 - 0.1% - 12.0% Commercial Own