Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union First Market Bankshares — Investor Presentation (May 2010)
35 slides from Atlantic Union Bankshares's investor presentation, May 24, 2010
Slide 1: Investor Presentation First Quarter 2010
Investor Presentation First Quarter 2010 Exhibit 99.1 Investor Presentation First Quarter 2010
Slide 2: Agenda
Agenda Overview Purpose and Values Financial Performance First Market Update 2010 Outlook Q & A
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 future ev
Slide 4: Overview
Overview One of the Largest Virginia-Based Financial Services Organization Holding Company formed in 1993 Assets of $3.85 Billion Comprehensive financial services provider offering: banking, mortgage, investment, brokerage and insurance
Slide 5: Investment Highlights
Investment Highlights Attractive branch footprint in growth markets that will recover early Proven financial performance Experienced management team Proven acquirer and integrator
Slide 6: Union
UNION Unt: Ripe habe Ban eehates:
Slide 7: Purpose Statement
Purpose Statement “Helping People Find Financial Solutions”
Slide 8: Values
Values Customer Focus Integrity & Trust Knowledge Respect Partnership Integrity Service Caring Passion Creativity Achievement
Slide 9: Virginia Population Expansion
Virginia Population Expansion Source: Weldon Cooper Center, UVA
Slide 10: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Charlottesville University of Virginia & Medical College High tech and professional businesses Virginia Beach - Norfolk Military Shipbuilding Tourism Fredericksburg Defense and security contractors Health care Retail Northern Virginia Nation’s Capital Defense an
Slide 11: Experienced Leadership
Age Years in Position Total Years in Banking Experienced Leadership Executive Management Team (7) Average Senior Leadership Team (21) (1) Includes executive management team Varied Backgrounds Experienced Market Disruptions Problem solvers Average (1)
Slide 12: Risk Management
Risk Management Risk Mitigation Practices Act early, ensure collateral, move to protect Re-risk ratings Re-appraisals of CRE Special Asset Committee Stress testing on CRE concentrations Lending Philosophy In market lender Community bank lending Granular portfolio Full guarantees of commercial credit
Slide 13: Union
UNION Unt: Ripe habe Ban eehates:
Slide 14: Strong Balance Sheet Growth
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2010 Q1 $1,672,210 $1,824,958 $2,092,891 $2,301,397 $2,551,932 $2,587,272 $3,849,699 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 2010 Q1 $1,314,317 $1,456,515 $1,665,908 $1,659,578 $1,926,99
Slide 15: Investment Portfolio Highlights
Investment Portfolio Highlights Total Portfolio is $529 MM or 13.8% of assets Did not invest in Pooled TRUPs Data as of Q1 2010 Investment Portfolio % of Portfolio U.S. government and agency securities 2.3% Obligations of states and political subdivisions 26.0% Corporate and other bonds 3.0% Mortgag
Slide 16: Loan Composition Q1 2010
Loan Composition Q1 2010 Loan Portfolio by Type 3/31/2010 $ % Construction, Land Development, and Other Land $500,909 17.6% Commercial Real Estate $951,387 33.4% Residential 1-4 Family $421,138 14.8% Equity Lines of Credit $309,765 10.9% Second Mortgages $62,762 2.2% Commercial $211,663 7.4% Persona
Slide 17: Loan Composition Q1: Construction & Development
Loan Composition Q1 Construction & Development 3/31/2010 $ % Raw Land $117.1 23.4% Land Development / Commercial Lots $119.7 23.9% Construction Loans to Builders $69.4 13.9% Residential Non-Builder Lots $36.2 7.2% Residential Builder Lots $74.9 15.0% Commercial Construction $69.0 13.8% Consumer Cons
Slide 18: Loan Composition Q1 2010: Commercial Real Estate by Type
Loan Composition Q1 2010 Commercial Real Estate by Type 3/31/2010 $ % Owner-Occupied Commercial RE $415.7 43.7% Retail $125.4 13.2% Office $99.7 10.5% Office Warehouse $84.1 8.8% Multi-Family $83.2 8.7% Hotel, Motel, B&B $47.5 5.0% Special Use $52.1 5.5% Small Mixed Use Building $38.1 4.0% Other $5.
Slide 19: Asset Quality
Asset Quality 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 2010 Q1 1.26% 1.24% 1.11% 1.36% 1.63% 1.19% 0.03% 0.01% 0.05% 0.21% 0.71% 0.40% 0.09% 0.10% 0.06% 0.55% 0.98% 0.80% 0.83% 0.70% 0.57% 1.15% 2.36% 2.93% Allowance to Loans Charge-offs to Avg Loans, Net Provision for loan losses as % of ave
Slide 20: NPAs by Type Q1 2010
NPAs by Type Q1 2010 Non-Performing Assets by Type 3/31/2010 $ % Construction and Land Development $21.9 34.5% Commercial $7.0 11.0% Commercial Non-Owner Occupied $2.3 3.6% Commercial Owner Occupied $5.3 8.4% Consumer $1.3 2.1% OREO $23.6 37.2% OREO / Real Estate Investment $1.5 2.4% Other $0.5 0.8%
Slide 21: NPAs by Market Q1 2010
NPAs by Market Q1 2010 Non-Performing Assets by Market 3/31/2010 * $ % Charlottesville $1.7 2.7% Richmond $16.3 25.7% Fredericksburg $29.3 46.2% Northern Neck $9.5 15.0% Hampton Roads $0.7 1.1% Rappahannock $2.8 4.4% Northern Virginia $2.5 3.9% Other $0.6 0.9% $63.4 100.0%
Slide 22: Deposit Composition
lf CD> LOOK DDA 19.5% 15.9% NOW 11.6% CD<100K 24.6% MMDA Savings 23.4% 4.9% UNION Union First Market Bankshares
Slide 23: Net Interest Margin
Net Interest Margin (1) 4.22% excluding fair value accounting accretion/amortization (1)
Slide 24: Union
UNION Unt: Ripe habe Ban eehates:
Slide 25: First Market Bank Update
First Market Bank Update Closed February 1, 2010 Two Branches Closed March, 2010 Data Merge Completed March, 2010
Slide 26: Combined Franchise
Combined Franchise Largest community bank in Virginia $3.85 billion Mid-Atlantic franchise with strong presence in high growth Virginia markets Moves Union from th to th in deposit market share in Virginia; from th to th in the Richmond MSA Exceptional management with highly regarded Board Complemen
Slide 27: Transaction Detail
Transaction Detail (1) Capital Purchase Program / Troubled Asset Relief Program funds were not used in this transaction (2) To include costs associated with overlapping branches and other duplicative functions, managed through normal attrition and retirement as much as possible Consideration : (1) 1
Slide 28: Virginia Market Share Richmond MSA Market Share
Virginia Market Share Richmond MSA Market Share Pro Forma Deposit Market Share Source: SNL Financial Deposit data as of 6/30/2008; pro forma for pending and recently completed acquisitions
Slide 29: Union
UNION Unt: Ripe habe Ban eehates:
Slide 30: 2010 Outlook
2010 Outlook Uncertain/slow economic recovery Residential real estate exposure will continue to impact asset quality Interest rates expected to remain low until late 2010 Loan demand sluggish Deposits stable - few higher rate alternatives
Slide 31: 2010 Priorities
2010 Priorities Increased Net Income Continued Focus on Credit Quality Effective Integration of First Market Bank Deposit Retention Achievement of Cost Saves Market Share Growth Take advantage of market opportunities Redeem First Market Bank US Treasury Preferred Stock
Slide 32: Market Opportunity
Market Opportunity Growth in lending relationships Hiring relationship teams Synergies
Slide 33: Acquisition Blueprint
Acquisition Blueprint Good Demographics / Growth Market OR …Unique Product / Service (e.g. Trust, Wealth Management) Management Retention Thorough Due Diligence Process Low Integration Risk EPS Accretive Tangible Common Equity to Assets above 6.0%
Slide 34: Summary
Summary Attractive branch footprint in growth markets that will recover early Proven financial performance Experienced management team Proven acquirer and integrator
Slide 35: Union
UNION Unt: Ripe habe Ban eehates:
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