Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union First Market Bankshares — Investor Presentation (August 2013)
31 slides from Atlantic Union Bankshares's investor presentation, Aug 22, 2013
Slide 1: Investor Presentation August 2013
Investor Presentation August 2013
Slide 2: Overview
Overview StellarOne Corporation Acquisition Financial Performance Near - Term Outlook 2
Slide 3: 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 fut
Slide 4: Company Overview
Company Overview One of the largest financial services organizations headquartered in Virginia Holding company formed in 1993 – Banking history in our communities goes back more than 100 years Assets of $4.1 Billion Comprehensive financial services provider offering commercial and retail banking, mo
Slide 5: Union First Market's Strengths
Union First Market’s Strengths Excellent branch network, competitive banking products and services and a loyal client 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 Conserva
Slide 6: Union First Market Footprint
Union First Market Footprint 6 Expanding with recently announced acquisition of StellarOne Corporation Currently 90 branch offices across Virginia Closed 8 branches in 2012 Only community bank with a presence in top 7 Virginia banking markets Banking market ranking includes deposits, economic and po
Slide 7: StellarOne Acquisition
7 Acquisition Announced on June 10, 2013 The Next Great Virginia Bank StellarOne Acquisition
Slide 8: StellarOne Acquisition - Rationale
Creates the dominant community bank in Virginia Scale overshadows in - state competitors Expands presence to include all major Virginia markets Broadens and deepens competitive strengths StellarOne Acquisition - Rationale 8 Acquisition Highlights Strategic Merit Results in top tier financial perform
Slide 9: Pro Forma Branch Franchise
Pro Forma Branch Franchise 9 Source: SNL Financial and MapInfo Professional Note: Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania, & Stafford counties; all oth er markets per MSA definitions in SNL Financial (1) Represents the number of STEL branches within
Slide 10: StellarOne Acquisition - Competitive Positioning
StellarOne Acquisition - Competitive Positioning 10 Richmond Charlottesville Source: SNL Financial and U.S. Census Bureau; Deposit data as of 6/30/2012 Note: Small businesses have less than 100 employees; Fredericksburg market defined as Caroline, Fredericksburg City, King Geo rge , Spotsylvania, &
Slide 11: StellarOne Acquisition - Growing Market Share
RankInstitution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Wells Fargo & Co. (CA) 295 29,350 17.4 2 Bank of America Corp. (NC) 177 22,233 13.2 3 BB&T Corp. (NC) 379 21,452 12.7 4 Capital One Financial Corp. (VA) 86 18,540 11.0 5 SunTrust Banks Inc. (GA) 239 17,168 10.2 Pro F
Slide 12: StellarOne Acquisition - Integration Update
StellarOne Acquisition - Integration Update Merger Steering Committee formed and integration teams established Focused on building organizational structure to manage and grow a $7 billion bank StellarOne EVP, CFO Jeff Farrar will join Union after close as EVP for Wealth Management, Insurance and Mor
Slide 13: StellarOne Acquisition - Financial Impact
StellarOne Acquisition - Financial Impact 13 Impact Assumptions Net expense savings of 32% (2) , or $28 million pre - tax 65% phased in by 2014 100% thereafter No revenue enhancements were modeled Share repurchases planned for 2014 and 2015 with excess capital One time merger related expenses of app
Slide 14: Second Quarter Financial Highlights
Second Quarter Financial Highlights Operating earnings (1) for Q2’13 were $10.4 million; an increase of 15.6% from Q1’13 and 23.3% from Q2’12 Operating (1) ROA – 1.03% Operating (1) ROE – 9.58% Q2’13 operating (1) earnings per share was $0.42; an increase of 16.7% from Q1’13 and 31.3% from Q2’12 Loa
Slide 15: Second Quarter Financial Highlights
Second Quarter Financial Highlights Asset Quality continued to improve as Q2’13 net charge - offs were at a four year low and nonperforming assets declined by 17.1% from Q2’12 to $62 million Current quarterly dividend payable on August 30 th was increased to $.14 cents per share – a 40% increase ove
Slide 16: Balance Sheet Performance
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2009 2010 2011 2012 2Q 2013 $ 2,587 $ 3,837 $ 3,907 $ 4,096 $ 4,057 Balance Sheet Performance 16 Assets ($M) Deposits ($M) Loans ($M) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000
Slide 17: Capital Ratios
Capital Ratios 17 In the first quarter, Union repurchased and retired 500,000 shares of its common stock; remaining repurchase authorization is 250,000 shares 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2009 2010 2011 2012 2Q 2013 14.70% 14.68% 14.51% 14.57% 14.37% 8.64% 8.22% 8.91% 8.
Slide 18: Net Income Trends
Net Income Trends 18 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* $17,925 $24,822 $25,992 $19,756 $14,514 $8,360 $22,922 $30,445 $35,411 $19,365 * 2013 excludes $919,000 in after tax acquisition expenses and reported net income
Slide 19: ROA, ROE and Efficiency Ratio Trends
ROA, ROE and Efficiency Ratio Trends 19 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2009 2010 2011 2012 1Q13 2Q13* 0.32% 0.61% 0.79% 0.89% 0.90% 1.03% Return on Average Assets (ROA) 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2009 2010 2011 2012 1Q13 2Q13* 2.90% 5.50% 6.90% 8.13
Slide 20: Core Net Interest Margin
Core Net Interest Margin 20 * Excludes acquisition accounting impact 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% FY09 FY10* FY11* FY12* 1Q13* 2Q13* 3.55% 4.24% 4.37% 4.24% 4.18% 4.14% Best In Class Margin
Slide 21: Mortgage Segment
Mortgage Segment Union Mortgage Group’s net income of $294,000 in the quarter declined year over year but increased on a linked quarter basis Q2’13 originations increased by $30 million to $298 million from Q1’13, and $41 million or 16% from Q2’12 Refinance versus Purchase volume was 38% to 62% for
Slide 22: 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 In 2012, Union developed key financial performance metrics benchmarked against top quartile peers Minimum targets were s
Slide 23: 2013 Second Half Outlook
2013 Second Half Outlook Stable to growing economy in footprint Low mid - single digit loan growth Modest margin compression Continued asset quality improvement Improving ROA, ROE and Efficiency Ratio Focus on integration of StellarOne 23
Slide 24: Value Proposition
Value Proposition Expanding franchise through StellarOne acquisition Branch footprint is a competitive advantage and brings a unique franchise value Strong balance sheet and capital base Best in class net interest margin Experienced management team Successful acquirer and integrator Commitment to to
Slide 25: Thank You!
THANK YOU!
Slide 26: Additional Information
Additional Information Additional Information and Where to Find It In connection with the proposed merger, Union will file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S - 4 to register the shares of Union common stock to be issued to the stockholders of S
Slide 27: Appendix
APPENDIX
Slide 28: Deposit Composition
Deposit Composition 28 $ in Millions 6/30/2013 Change from 6/12 to 6/13 $ % $ % Demand Deposits 668,303 20.5% 76,546 12.9% NOW Accounts 456,459 14.0% 31,272 7.4% Money market savings 953,979 29.2% 48,240 5.3% Savings accounts 225,821 6.9% 27,093 13.6% CDs > $100,000 468,263 14.3% (66,419) - 12.4% CD
Slide 29: Loan Portfolio
Loan Portfolio 29 Construction, Land Development, and Other Land, 15.2% Commercial Real Estate, 40.9% Residential 1 - 4 Family, 15.9% Equity Lines of Credit , 10.0% Second Mortgages, 1.3% Commercial , 6.1% Personal , 7.9% Credit Cards , 0.7% Other, 2.0% Based on call report filings ($ in millions) 6
Slide 30: Loans Trends
Loans Trends 30 Construction, Land Development, and Other Land by Type (Based on Outstanding Balance: Dollars in millions) 6/30/2013 Change 6/12 to 6/13 $ % of Portfolio % of Type Raw Land $90.1 19.7% $7.6 1.3% 9.2% Land Development / Commercial Lots $113.4 24.8% - $16.1 - 4.1% - 12.4% Construction
Slide 31: Nonperforming Asset Trends
Nonperforming Asset Trends 31 Non - Performing Loans by Type (Based on Outstanding Balance: Dollars in millions) 6/30/2013 Change 6/12 to 6/13 $ % of Portfolio % of Type Construction and Land Development $10.0 37.0% - $12.2 - 19.6% - 55.0% Commercial $9.6 35.6% $1.3 14.4% 15.7% Commercial Non - Owne
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