Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Shareholder Meeting (May 2021)
33 slides from Atlantic Union Bankshares's shareholder meeting presentation, May 4, 2021
Slide 1: 2021 Annual Shareholders Meeting
2021 Annual Shareholders Meeting Nasdaq: AUB May 4, 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 3/31/2021, market capitalization as of 4/30/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size Assets Loans Deposits Market Capitalization $19.9 $14.3 $16.3 $3.1 • Largest regional banking company headquart
Slide 5: Virginia's Bank
Virginia’s Bank 5 Virginia: All Banks Virginia: Banks Headquartered in VA Rank Institution Deposits ($mm) Market Share (%) Branches 1 Truist Financial Corp $48,832 23.8% 436 2 Wells Fargo & Co 33,337 16.2 250 3 Bank of America Corp. 21,769 10.6 121 4 Atlantic Union Bankshares Corp 15,360 7.5 123 5 T
Slide 6: Balancing Commitment to Key Stakeholders
Cultivating a rewarding teammate experience enables our talented workforce to enrich the lives of the people and communities we serve, provide best in class customer experience and deliver top tier financial performance. Balancing Commitment to Key Stakeholders Teammates Customers Shareholders Commu
Slide 7: 2021 Operating Environment
2021 Operating Environment 7 Soundness Profitability Growth At March 31,2021 Assets $19.9B Loans $14.3B Deposits $16.3B Managing through COVID- 19 pandemic: • Pivoted to a new remote work and branch operating model • Focused on Teammates, clients, communities and shareholders • SBA Paycheck Protecti
Slide 8: 2021 Operating Environment – Managing through the Pandemic
2021 Operating Environment – Managing through the Pandemic 8 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 Comp
Slide 9: Strategic Priorities
3 2 1 4 5 6 Diversify Loan Portfolio and Revenue Streams Increase commercial lending growth to better balance the total loan portfolio and grow fee-based products and services. Grow Core Funding Grow core deposits with particular focus on transaction accounts and maintain 95% loan to deposit ratio.
Slide 10: Review of 2020 and 2021 Outlook
Review of 2020 and 2021 Outlook
Slide 11: 2020 Highlights
2020 was a year of expedited transformation. This environment became a catalyst for exceptional bank-wide teamwork, tighter prioritizing, faster transformation and innovation. Each business area stepped up to meet demand and help our clients in new ways, while accomplishing our planned initiatives.
Slide 12: 2020 Unprecedented Challenges
In 2020, we were faced with unprecedented challenges that became our catalyst for faster transformation and innovation Clients Under Financial Distress CARES Act Required Immediate Action Need To Service Clients In New Ways Demand For Services Higher Than Ever Businesses closed or operating under re
Slide 13: Mitigated Risk
Mitigated Risk Credit Action Stability Team “CAST”: Battened down the hatches to protect the Bank by working with our business and consumer clients to assist them through these tough times. This was a game-changing partnership with our clients to identify cash flow issues and immediate action we cou
Slide 14: Aligned the Expense Base and Enhanced Digital Experience
Aligned the expense base to the new revenue reality: Took action to reduce expenses including closing 20 branches or 13% of the network and reduced expenses across the business lines. Enhanced The Client/Teammate Digital Experience: An agile quarterly release delivery schedule allows for quicker imp
Slide 15: We excelled in our delivery of Paycheck Protection Program
We excelled in our delivery of Paycheck Protection Program 15 Italics indicates a VA HQ'd Lender Rank Lender Count of Loans % of Total 1 Truist Bank 10,203 9.3% 2 Atlantic Union Bank 10,197 9.3% 3 Bank of America, National Association 8,487 7.8% 4 Wells Fargo Bank, National Association 6,247 5.7% 5
Slide 16: Supporting our Teammates
Improved frequency of communications. Launched our Diversity, Equity and Inclusion initiative and established DEI Council. Expanded the reach and influence of Women’s Inclusion Network (WIN) learning sessions and virtual panel discussions. Hosted WIN on Racial Equality webinars. Provided half-day of
Slide 17: Efforts are paying off...
Efforts are paying off...
Slide 18: Excellence in Small Business Banking
Excellence in Small Business Banking 18 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 19: Customer Experience Successes
Customer Experience Successes 19 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 J.D. Power awards AUB #1 in Customer Satisfaction with Retail Banking in the Mid-
Slide 20: Continue to execute against our strategic plan
20 Continue to execute against our strategic plan. Focusing on credit discipline, continued growth, product expansion and relationship banking model. Develop more segmented approaches for each of our target audiences, including Mass Market, Mass Affluent, Affluent and Small Business. Double-down on
Slide 21: 2020 Financial Results
2020 Financial Results 21 Full Year 2020 Financial Highlights For the year ended 2020, reported net income available to common shareholders was $152.6 million and earnings per common share were $1.93, down ~ $41 million or 48 cents per common share from 2019 primarily due to the economic disruption
Slide 22: First Quarter 2021 Financial Highlights
22 First Quarter 2021 Financial Highlights Net income available to common shareholders for the first quarter was $53.2 million or 67 cents per common share, down $3.2 million or 5 cents per share from the prior quarter primarily due to the decline in net interest income related to lower PPP accretio
Slide 23: Allowance For Credit Loss and Provision for Credit Losses
Allowance For Credit Loss (ACL) and Provision for Credit Losses 23 Q1 Macroeconomic Forecast Q1 Additional Considerations Moody’s March Baseline Forecast US GDP returns to pre-COVID levels in Q2 2021 and averages 5.7% growth in 2021 and 2022. The unemployment rate averages 5.7% in 2021 and 4.3% in 2
Slide 24: Capital Management Strategy
Capital Management Strategy Capital Targets Capital Management Priorities Excess Capital Deployment AUB’s establishes capital targets based on the following objectives: Maintain designation as a “well capitalized” institution under fully phased-in Basel III regulatory definitions Ensure capital
Slide 25: Total Shareholder Return Performance and Dividends
80.0% 74.2% KRX AUB 25 5 Year Relative TSR 1 1 As of 5/3/2021 1 Year Relative TSR1 86.6 % 83.2% KRX AUB Creating sustainable long-term shareholder returns over time KRX AUB 201.2% 316.2% KRX AUB 10 Year Relative TSR 1 Dividends Paid ~9% CAGR AUB’s Total Shareholder Return Performance $0.54 $0.58 $0.
Slide 26: Atlantic Union's Long-Term Strategic Priorities
Atlantic Union’s Long-Term Strategic Priorities 26 • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time • Grow fee-based products and services Diversify Loan Portfolio and Revenue Streams • Fund loan
Slide 27: h Union Banishewes
h Union Banishewes
Slide 28: Appendix
Appendix 7) Atlantic /4 Union Bankshares
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 29 Operating Earnings Per Share The Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted, or pre-tax pre-provision basis. These non-GAAP financial measures are supplements to GAAP, which is used to prepare th
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 30 Operating Earnings Per Share Adjusted operating measures exclude the after-tax effect of merger and rebranding-related costs unrelated to the Company’s normal operations. In addition, adjusted operating measures exclude the gains or losses related to balance
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 31 Operating Earnings Per Share The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, merger and rebranding related costs, and gains or losses related to balance sheet repositioning (principally composed of gains and loss
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 32 Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy be
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 33 ($ IN THOUSANDS) Operating Earnings Per Share (Dollars in thousands) As of March 31, 2021 As of December 31, 2020 As of March 31, 2020 Allowance for loan losses (ALLL) 142,911 $ 160,540 $ 141,043 $ Reserve for unfunded commitment (RUC) 12,833 10,000 9,000 Al
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