Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Day (May 2022)
119 slides from Atlantic Union Bankshares's investor day presentation, May 9, 2022
Slide 1: Investor Day 2022
Investor Day 2022 Nasdaq: AUB May 9, 2022
Slide 2: Today’s Speakers
Today’s Speakers Bill Cimino David Zimmerman Senior Vice President, Investor Relations Wealth Management Group Executive John Asbury Shawn O’Brien President & Chief Executive Officer of Atlantic Union Consumer & Business Banking Group Executive Bankshares Corporation David Ring Maria Tedesco Wholesa
Slide 3: Forward Looking Statements
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 are statements that include, without limitation, statements on slides entitled “Financ
Slide 4: Additional Information
Additional Information Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other than in This presentation does not constitute an offer to sell or a solicitation of an offer to buy any accordance with generally accepted
Slide 5: John Asbury
John Asbury Atlantic Union Bankshares Corporation President & Chief Executive Officer 5
Slide 6: Our Actions Match Our Words
Our Actions Match Our Words “While evolving, maturing and responding to our changing environment, we are delivering on what we said we would do. I think of this as an agile form of consistency.” - John Asbury, CEO 6
Slide 7: A Transformation Story
A Transformation Story From Virginia Community Bank to Virginia’s Bank and More Virginia’s Bank The Atlantic Union “Moat” – Stronger than Ever • Virginia’s first and only statewide, independent bank in over 20 years • Scarcity value - franchise cannot be replicated • The alternative to large competi
Slide 8: Our Company Today
Our Company Today Soundness | Profitability | Growth Highlights ($bn) Branch/Office Footprint AUB (114) • Statewide Virginia footprint of 109 AUB LPO (3) $19.8 $13.5 branches in all major markets AUB Equipment Finance Headquarters (1) Assets Loans • #1 regional bank1 deposit market share in Virginia
Slide 9: Our Value Proposition
Leading Regional Presence Dense, uniquely valuable presence across attractive markets Our Value Proposition Attractive Financial Profile Financial Strength Solid dividend yield Solid balance sheet & payout ratio with & capital levels earnings upside Peer-Leading Strong Growth Performance Potential C
Slide 10: Our Core Values
Caring Courageous Committed Working together toward Speaking openly, honestly and Driven to help our clients, common goals, acting with accepting our challenges and Teammates and company Our Core Values kindness, respect and a genuine concern for others. mistakes as opportunities to succeed, doing w
Slide 11: A Balanced Approach to all Stakeholders
A Balanced Approach to all Stakeholders Customers Satisfied customers think of us first for their banking needs, refer others to us, and reward us with their ongoing loyalty. Teammates Communities A rewarding Teammate experience is key to Investing in our communities and the attracting and retaining
Slide 12: Virginia’s Bank and Sizeable Opportunity to Take Market Share from the Big Three
Virginia’s Bank and Sizeable Opportunity to Take Market Share from the Big Three Virginia: All Banks Growth Virginia: Banks Headquartered in VA Franchise Opportunity Strength Rank Institution Deposits ($mm) Market Share (%) Branches Rank Institution Deposits ($mm) Market Share (%) Branches 1 Truist
Slide 13: Virginia Is Among the Most Attractive Markets in USA
Virginia Is Among the Most Attractive Markets in USA Ranked Virginia the Best State Ranked Virginia the 4th Best Virginia rated 1st in Best for Business two years in a row State for Business Business Climate, Tech Talent • 3rd in Labor Supply Pipeline, Cybersecurity • 3rd in Regulatory Environment •
Slide 14: Strong Presence in Prime Virginia Markets
Diversity Supports Growth Strong Presence in Prime Virginia Markets In Virginia Richmond Fredericksburg Charlottesville State Capital, Fortune 500 Defense and security contractors, University of Virginia, High-tech and headquarters (7), VCU & VCU Medical Healthcare, Retail, Real Estate professional
Slide 15: Virginia Presents Opportunity in Fast-Growing, Affluent Markets
Virginia Presents Opportunity in Fast-Growing, Affluent Markets Top Counties in the U.S. — Projected Median HH Income ($000s) 1 $149 $141 $138 $137 $135 $130 $129 $129 $126 $125 Loudoun, VA Falls Church, VA Santa Clara, CA San Mateo, CA Marin, CA Somerset, NJ Arlington, VA Fairfax, VA Howard, MD Dou
Slide 16: Strategic Journey
Strategic Journey Be the premier regional bank headquartered in the Mid-Atlantic, providing sophisticated banking services coupled with a style of doing business that differentiates us from competitors. Solidified Position as VA’s Bank Digital & Customer Experience Success Primed for Future Growth A
Slide 17: We have three Strategic Priorities
We have three Strategic Priorities Organic Inorganic Deliver Organic Growth Innovate and Transform Strategic Investments • Overweighting opportunities in Wholesale • Pressing the relationship model advantage • Leverage FinTech partnerships, strategic partner equity Banking Group where bankers provid
Slide 18: Strategic Imperatives have Evolved Alongside our Transformation
Strategic Imperatives have Evolved Alongside our Transformation This is how we intend to achieve our priorities Achieve & Sustain Top Tier Achieve Operational Great Place to Work & Financial Performance Excellence Build A Career • Maintain a top tier financial position over • Accelerate the moderniz
Slide 19: Well-Positioned in the Marketplace
Well-Positioned in the Marketplace FinTechs/ NeoBanks Community Banks National Banks Positioned at the confluence of human interaction and digital technology 19
Slide 20: Looking Ahead, We Are Positioned Well
Looking Ahead, We Are Positioned Well We have the core components of what we need to propel our business forward The right business leaders and teams are in place as we build the business with more great talent every day. The partnership between our businesses is strong and will lead to synergies th
Slide 21: We Are Well Positioned for the Current Environment
Growth Footing We Are Well Asset Sensitivity Positioned for the Current Environment Expense Management Actions and Optimistic Pristine Credit About Our Future Top Tier Performance 21
Slide 22: Maria Tedesco
Maria Tedesco Atlantic Union Bank President & Chief Operating Officer 22
Slide 23: Operating Group Organizational Structure
Operating Group Organizational Customer Segment Structure Business lines are partnering together to surround customers with holistic banking solutions. Support functions are enabling more robust, segment-specific value propositions. 23
Slide 24: A lot has happened since our last Investor Day
A lot has happened since our last Investor Day We made progress on our strategic objectives across multiple dimensions including • Diversified our Revenue Streams and Market Segments through product offerings in Wholesale, Consumer and Wealth • Strengthened our Digital Capabilities and Assets across
Slide 25: Shifting to a Segment Approach
Shifting to a Segment Approach From To Individual Business Enterprise & Segmented Line Approach Product expansion Approach Exceptional talent for each of our advancement key segments • LOB-specific, general market • Focus on high opportunity markets Strong sales discipline approach with some and mar
Slide 26: The Market has Recognized Us for Outstanding Customer Service
The Market has Recognized Us for Outstanding Customer Service J.D. Power awards AUB #1 in Customer Satisfaction with Retail Banking in the Mid-Atlantic Region, surpassing our closest competitor by 22 points and the regional average by 40. J.D. Power 2021 U.S. Retail Banking Satisfaction StudySM Over
Slide 27: Excellence in Business Banking Award
Excellence in Business Banking Award Virginia PPP Clients Chose Atlantic Union Bank 2020 & 2021 Greenwich Excellence Award Winner First Draw PPP Lending Position: 95 Overall Satisfaction • #1 in 22 VA counties • #2 in 13 VA counties 74 70 69 • #3 in 15 VA counties Across Virginia, AUB effectively ti
Slide 28: Changing the Way We Operate
Changing the Way We Operate FROM Revenue Customer Talent Modern Delivery Diversification Experience Management Brand Technology System Building and optimizing new Going above and Hiring exceptional senior A strong mass market Filling critical gaps in Tried and true project products and expertise, th
Slide 29: The Technology Landscape
The Challenge The Opportunity The Technology Landscape • FinTech’s are changing the banking industry, but traditional core service • Availability of modular, targeted financial and operational products and services providers are falling behind and are difficult (FinTech +) to integrate with • Flexib
Slide 30: Modernizing our technology stack and delivery approach
Modernizing our technology stack, and our approach to delivering technology, will be essential to enabling our continued success Primary Areas of Focus Modernize Plug & Play Innovate Core Banking System Ecosystem with FinTechs Align on and operationalize a core Create an integration layer that enabl
Slide 31: Traditional Core Infrastructures are Becoming Outdated
Traditional Core Infrastructures are Becoming Outdated Traditional Next-Generation • Batch and nightly processing • Cloud-native Core as a Service • Long lead-times for development • Real-time, customer-centric banking • Limited integration capabilities • Greater agility, both technically and commer
Slide 32: New FinTech solutions are being introduced every day
New FinTech solutions are being introduced every day, reinventing banking with stronger customer experiences and speed. 32
Slide 33: Our FinTech partnerships are helping us sort through the sea of options
Our FinTech partnerships are helping us sort through the sea of options Connectivity to the Market Intelligence FinTech Ecosystem and Insight Peer Curated Introductions to Networking best-in-class FinTechs Extensive Dialogue and Interaction 33
Slide 34: Leveraging operating momentum to accelerate growth
Leveraging operating momentum to accelerate growth We’ve made great progress and did what we said we’d do over these past three years. Organic Growth is job #1. We will continue to surround key segments with our full suite of products and services –extrapolating our successes as we build new segment
Slide 35: Kelly Dakin
Kelly Dakin Digital Strategy & Enterprise Experience Group Executive 35
Slide 36: Digital Strategy Overview
Digital Strategy Overview Accountable for the oversight, management and agility of the customer service oriented digital platforms, ensuring frictionless customer and Teammate experiences. Define Our Long-Term Technology Stack Drive Enterprise Mitigate Risk Experience With Digital Automation Transfo
Slide 37: Digital Strategy & Enterprise Experience Evolution
Digital Strategy & Enterprise Experience Evolution Maturing Digital Strategy against all lines of business with platform accountability; complaint management, transaction disputes and Insights & Action represents enterprise-wide support of initiatives across digital and enterprise experience. Curren
Slide 38: Our Digital Strategic Priorities
Our Digital Strategic Priorities Achieve & Sustain Top Tier Mitigate Risk with Accelerate Product Development Financial Performance Digital Automation & Speed to Market Align on and operationalize a core technology Build digital experiences that proactively integrate Create scale by operationalizing
Slide 39: Define Our Long-Term Technology Stack
Define Our Long-Term Technology Stack Designing for seamless integration of partner technologies Short Term: Year 1 Medium Term: Year 2 Long Term: Year 3 Implement Quick Fixes & Enhance Capabilities & Build to Scale & Start Foundational Change Integrate at Enterprise Level Expand Capabilities Infras
Slide 40: Accelerate Product Development and Speed to Market
Accelerate Product Development and Speed to Market Prioritization Digital Strategy’s scrum team support model positions Atlantic Union Bank to iteratively develop and deploy new products and product features with agility, supporting speed-to-market and the realization of product benefits Backlog/ it
Slide 41: Curate New, Innovative Digital Capabilities
Curate New, Innovative Digital Capabilities Current Fintech partnerships have driven efficiencies and improved Teammate and customer experiences. Sandbox banking platform MX helps customers organize, Blend platform simplifies the helps customers build, simplify and gain a sense of mortgage applicati
Slide 42: Dean Hackemer
Dean Hackemer Home Loans Group Executive 42
Slide 43: Home Loans at a Glance
Home Loans at a Glance Business Overview Snapshot1 Annual Growth Targets The priority is to generate fee income by originating loans for sale in the Originations $901 million secondary market (AUB may retain 30% of originated loans for investment) Fee Mid-Single Income Digit Where gaps exist in avai
Slide 44: Home Loans Strategic Progression
Home Loans Strategic Progression Expanded Capabilities Record Mortgage Volumes Digitize Mortgage Closing Introduced portfolio mortgage Originated unprecedented volumes Implement a hybrid loan closing programs and absorbed residential in low rate environment. option where customers can eSign construc
Slide 45: Home Loans Operating Model
The Home Loans team is the The business is built to adjust In low rate refinance markets, Home Loans same core group from Access National Bank and has been quickly in changing rate or regulatory environments. we leverage our operational efficiency to accomplish more Operating Model together 15+ year
Slide 46: Become the Preferred Home Loan Lending Source for our Bank Clients
Become the Preferred Home Loan Lending Source for our Bank Clients Focusing on purchase money business isn’t new to Future growth in production will come from us in 2022, it's what we’ve done for 20 years. Our expanding our sales team. internal turn-time on underwriting and processing purchase busin
Slide 47: Approach to Home Loans Technology and Operations
Approach to Home Loans Technology and Operations Two track investment strategy to advance technology, both equally important Customer Experience Operations Optimization Increasing customer expectations require ongoing investment in digital Culture to challenge existing processes and identify opportu
Slide 48: Journey to a Digital Mortgage
Journey to a Digital Mortgage Being in a position to deliver a full digital mortgage to our customers took years and, like most of what we do, was iterative in capability Selected Blend Closing Process to use Blend eVault Implementation Implemented Required Technology as our partner for a better cus
Slide 49: Future Home Loans Opportunities
Future Home Loans Opportunities Opportunities to continue to advance on our two tracks Customer Experience — Tighter integration between Blend, CRM and loan origination system to provide a more consistent experience. Expanded engagement after closing to maintain our relationship and build share of w
Slide 50: David Zimmerman
David Zimmerman Wealth Management Group Executive 50
Slide 51: Wealth Management at a Glance
Wealth Management at a Glance Business Overview Snapshot1 Annual Growth Targets Assets Under Fiduciary Services & Asset Management Management $6.5 billion AUM Upper-Single (AUM) Digit Non-Interest Atlantic Union Financial Consultants Income $27.6 million Fee Income Double Digit Private Banking Clien
Slide 52: Wealth Management Progress
Wealth Management Progress Current state At time of 2018 Investor Day Modified strategic plan in 2020 under new management Alignment with Segmentation supports enhanced alignment with joint efforts to Consumer Bank understand and serve our clients Alignment with Joint book and business reviews and j
Slide 53: Wealth Management Strategic Progression
Wealth Management Strategic Progression Enhancement for Client Experience (CX) Business Consolidation & Tech Reframe Private Banking business plan Future Focused Complete combination of Trust businesses Installation of BlackDiamond in Trust Link Private Banking deposit clients Complete technology in
Slide 54: Wealth Management Strategic Priorities
Wealth Management Strategic Priorities Deliver a Better Client Manage to Higher Levels Experience of Performance Advisors must adjust to client expectations by Drive operational optimization by maximizing teaming to provide relevant expertise, technology investments through enhanced leveraging techn
Slide 55: Mine the Franchise to Drive Wealth Management Organic Growth
Mine the Franchise to Drive Wealth Management Organic Growth Wholesale Banking Consumer Banking • Regional client reviews • Project to maximize affluent clients with • Joint appointments $500,000 – $1,000,000 in deposits • Joint product – Foreign Exchange (FX) • Financial Consultant territory optimi
Slide 56: Aim to Deliver A Better Client Experience
Aim to Deliver A Better Client Experience Client Monitoring Establish Relationship Ongoing review and evaluation of the client’s situation with Interpersonal skills that ensure the client is agreed upon communications schedule both heard and understood Solution Implementation Understanding Client We
Slide 57: Wealth Management Digital Transformation – Black Diamond
Wealth Management Digital Transformation – Black Diamond Unification Customer Experience Operational Efficiency & Risk Management Enable Growth • Leverage a new extensive wealth management • Utilize the new wealth platform to streamline internal • Use of new business intelligence and data platform t
Slide 58: Shawn O’Brien
Shawn O’Brien Consumer & Business Banking Group Executive 58
Slide 59: Consumer and Small Business Banking at a Glance
Consumer and Small Business Banking at a Glance Consumer Banking Small Business Universal Bankers Revenue focus up to $1 million Annual Growth Targets “Crown Jewel” deposit base 19 designated branches Mass Affluent Focus $100,000 lending limit • Income Producing Assets between Loans Mid-Single Digit
Slide 60: Business Banking at a Glance
Business Banking at a Glance Annual Growth Targets Business Business Snapshot1 Loans Mid-Single Digit Revenue focus $1 to $5 million Deposits $590 million 45 relationship managers Loans $805 million Credit exposure up to $3 million New business line focus Clients 5,000+ Deposits Mid-Single Digit Exp
Slide 61: Strong Growth and Improving Trends
Strong Growth and Improving Trends Consumer Small Business • DDA Growth since January 2020: Drivers: • DDA Growth since January 2020: • Accounts: 3.9% ü Solutions Banking • Accounts: 10.3% ü Online Origination • Balances: 82.3% • Balances: 53% ü Project Sundown ü Marketing Promotions • PPP Success ü
Slide 62: Consumer Lending at a Glance
Consumer Lending at a Glance $1,175 $1,151 $1,148 $1,135 $1,132 $1,130 $1,114 $1,116 $1,111 $1,100 $1,097 $1,095 $1,089 $1,081 $1,082 $1,077 $1,072 $1,072 $1,055 $1,015 Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 62 1 As of
Slide 63: Consumer and Business Banking Strategic Progression
Consumer and Business Banking Strategic Progression Closed 25% of Branch Network since 2019 JD Power Award JD Power Award-Greenwich Award New Leadership Hired Shawn O’Brien, Group Executive PPP Success Branch Innovative Technology Business Banking Branch Optimization Branch Optimization Optimization
Slide 64: Optimizing as We Scale
Optimizing as We Scale 2018 Deposits / Branch Q1 ’22 Deposits / Branch 2018 – Q1 ’22 Deposits / Branch Growth1 ($M) ($M) (%) Peer #1 $210 Peer #1 $366 Atlantic Union 103% Peer #2 $209 Peer #2 $306 Peer #2 96% Peer #3 $165 Peer #3 $263 Peer #3 96% Peer #4 $139 Peer #4 $258 Peer #4 89% Peer #5 $112 Pe
Slide 65: Digital Transformation Delivering A Better Client Experience
Digital Transformation Delivering A Better Client Experience 76,830 2,115 Scheduled Appointments since 6/2020 Scheduled Appointments since 10/2020 GRO 18,729+ 13,773+ Envelopes since 1/2021 Online Accounts since 1/2021 65
Slide 66: Progress Against Our Strategic Plan
Progress Against Our Strategic Plan Current state At time of 2018 Investor Day Strong position in the small business market. Designated business Small Business branches with differentiated value proposition for business owners. Segment Strategy Profitable Bank-at-Work program Mass Affluent Pilot pro
Slide 67: Consumer and Business Banking Strategic Priorities
Consumer and Business Banking Strategic Priorities Deliver reliable low-cost funding in support of asset growth, mid-single digit loan growth and controlled expenses Strong Grow & Expand Small Plan to achieve by increasing market Foundation Diversify Business and of Core Deposits Consumer Lending Bu
Slide 68: Maintain a Strong Foundation of Core Deposits
Maintain a Strong Foundation of Core Deposits We are focused on growing core deposits through acquisition, retention, and expansion throughout our customer segments, while strategically utilizing rate and our high touch approach to service. • Proactive measures factoring portfolio • Utilize a combin
Slide 69: Grow and Diversify Consumer Lending Portfolio
Grow and Diversify Consumer Lending Portfolio Leverage top-tier product and sales process to capture increased market share of home equity and expand indirect auto. Leverage Emerging Diversify Client Needs and Preferences • Build on existing FinTech partnerships for personal • Build efficient, all a
Slide 70: Expand Business Banking Market Share
Expand Business Banking Market Share We are actively focused on converting the current team to a focus on prospecting, lead management, relationship management and holistic profiling of each client/prospect. Business Development Relationship Managers (RMs) are focused on new business development act
Slide 71: Transform Small Business Model
Transform Small Business Model We are in process of transforming our model for small business banking, launching a new loan origination platform and building on mid-2021 implementation of business-focused branches. FinTech partnership with an anticipated late 2022 launch to transform small business
Slide 72: Reimagine the Customer Journey
Reimagine the Customer Journey Opportunities to reimagine processes, procedures and tools to create efficiencies and make banking easier for our customers and our Teammates • Use customer complaints and dissatisfaction statistics to drive improvement in very targeted processes and customer journeys
Slide 73: Optimize Delivery Channels
Optimize Delivery Channels We are focused on truly making banking easier for both clients and Teammates, enhancing efficiency and experience. • Continual consideration of branch optimization and shift from transactional to advisory financial services, investing a portion of savings into our organiza
Slide 74: Prioritize High Opportunity Customer Segments and Solutions
Prioritize High Opportunity Customer Segments and Solutions Retain a compelling value proposition for the full spectrum of consumer households with a proactive focus on priority client segments and a streamlined product suite to add simplicity and value progression Mass Affluent – Partnership with W
Slide 75: David Ring
David Ring Wholesale Banking Group Executive 75
Slide 76: Wholesale Banking at a Glance
Wholesale Banking at a Glance Business Overview Snapshot(1) Annual Growth Targets Regional Commercial Banking Loans $10.5 billion Upper-Single Loans Digit Specialty Banking Group Deposits $6.2 billion Upper-Single • Commercial Real Estate Deposits • Government Contracting Digit • Corporate Banking •
Slide 77: Business Profile
Business Profile Wholesale Banking A full-service and client-centric model providing a breadth of products and services across multiple segments of customers and industries. General Industries Specialty Banking Group Specialty Product Group Regional Commercial Banking Commercial Real Estate Governme
Slide 78: Wholesale Banking Strategic Progression
Wholesale Banking Strategic Progression Buildout Begins Realign to Specialize Aligned legacy and new RMs Reorganize & Reposition Rebuild Treasury Management (TM) Add TM Products team Complete Reorganization sales platform Rollout Asset Based Lending Built Relationship Planning Consolidated Regions L
Slide 79: Wholesale Banking Evolution: Ongoing and On Schedule
Wholesale Banking Evolution: Current state Ongoing and On Schedule At time of 2018 Investor Day Wholesale continues to work on evolving our model in ways that align with Atlantic Union’s vision: sound, profitable growth and making banking easier. Diversified Loan Growth Across Industries and CRE Con
Slide 80: Wholesale Banking Diversified Revenue Model
Wholesale Banking Diversified Revenue Model Capital Markets Treasury Management Growth within the various lending Over the past four years, Treasury has grown functions has led to increased demand from an underfunded and underappreciated line for various products, including interest of business, to
Slide 81: Wholesale Banking Strategic Priorities
Wholesale Banking Strategic Priorities Deliver sustainable upper single digit loan and fee income growth through new clients, increased share of wallet and Enhance & Build a Durable Accelerate market, expanded products, services, Augment Strong & Diversified Growth with markets, and business lines,
Slide 82: Build a Durable & Diversified Revenue Stream
Direct origination of Asset Lead loan syndications; retain Based Loan deals lead position with clients Build a Durable & Diversified Revenue Direct placement of Capitalize on SBA loan sales Stream secondary market debt with SBA 7a products Build upon core franchise blocks and optimize revenue potent
Slide 83: Accelerate Growth with Strategic Investments
Accelerate Growth with Strategic Lift-out teams in specialized business lines or in markets that Investments require in-fill or offer market expansion opportunities Build specialty business that enhance market opportunity and Accelerate growth through can be expanded to reach out of market in a targ
Slide 84: Augment Personal Delivery with Digital Solutions
Use data to measure Refine processes to serve clients performance against using digital solutions, timely client expectations problem resolution and smooth Augment Personal product implementation Delivery with Digital Solutions Add sophisticated call Invest in key technology and center client servic
Slide 85: Deliver Next Generation Solutions
Continually evaluate Identify strategic partners and integrate new to deliver enhanced client Deliver Next technology (i.e. Fed Now, solutions Real Time Payments, Generation Solutions and Blockchain for loans and payments) Foster continuous product development and improvement with an eye on the futu
Slide 86: Wholesale Banking Case Study: Atlantic Union Equipment Finance
Wholesale Banking Case Study in New Verticals: Atlantic Union Equipment Finance Case Study: Atlantic Union Equipment Finance (AUEF) Strategy Balances (000s) • New verticals / lines of business are key Background and Development 700,000 to asset growth and diversification • During 2018, began searchi
Slide 87: Rob Gorman
Rob Gorman Chief Financial Officer 87
Slide 88: Our Value Proposition
üLeading Regional Presence Dense, uniquely valuable presence across attractive markets Our Value Proposition üAttractive üFinancial Financial Strength Profile Solid balance sheet Solid dividend yield & capital levels & payout ratio with earnings upside üPeer-Leading üStrong Growth Performance Potent
Slide 89: Balance Sheet and Earnings Growth
Balance Sheet and Earnings Growth1 Operating Earnings Per Share Available to Loans ($mm) Deposits ($mm) Common Shareholders ($)1 16% 22% CAGR CAGR $16,484 17% $3.53 $13,459 CAGR $1.90 $7,142 $6,992 2017 1Q2022 2017 1Q2022 2017 2021 Data as of or for the twelve months ended each respective year, exce
Slide 90: Strong Track Record of Operating Performance
Strong Track Record of Operating Performance Operating Return on Tangible Common Operating Efficiency Ratio (FTE) (%)1 Operating Return on Assets (ROA) (%)1 Equity (%)1 1.43% 18.07% 60.78% 0.94% 12.17% 54.52% 2017 2021 2017 2021 2017 2021 Data for the twelve months ended each respective year, 90 1 N
Slide 91: Strong Capital Position Supports Organic Growth
Strong Capital Position Supports Organic Growth Regulatory Atlantic Union Atlantic Capital Ratio as of 3/31/2022 Well Capitalized Bankshares* Union Bank* Capital Management Strategy Common Equity Tier 1 Ratio (CET1) 7.0% 9.9% 12.9% Atlantic Union capital management objectives are to: • Maintain desi
Slide 92: Capital Management Priorities
Capital Management Priorities Capital Priorities Consolidated Common Equity Tier 1 Capital Ratio 10.2% 10.3% 10.2% Annual Common Stock Dividend Growth à 9% 8-year CAGR 9.9% Supporting Organic Growth $1.09 9.0% Target Range $0.96 $1.00 9.0%-10% $0.81 $0.88 $0.68 $0.77 $0.54 $0.58 2017 2018 2019 2020
Slide 93: AUB’s Total Shareholder Return Performance vs. Peer Banks
AUB’s Total Shareholder Return Performance vs. Peer Banks 1 Year Relative TSR1 2 Year Relative TSR1 Proxy Peers AUB Proxy Peers AUB 69.39% -7.56% 61.08% -8.37% 3 Year Relative TSR1 5 Year Relative TSR1 10 Year Relative TSR1 4.35% 19.63% 249.71% 2.85% 151.68% 3.19% Proxy Peers AUB Proxy Peers AUB Pro
Slide 94: Top-Tier Financial Targets
16% – 18% 1.3% – 1.5% ≤ 51% 1 Return on Tangible Return on Assets Efficiency Ratio (FTE) Top-Tier Common Equity Financial Targets Atlantic Union is committed to achieving Key financial performance operating top tier financial performance and metrics benchmarked against top providing our shareholders
Slide 95: Financial Outlook
Financial Outlook1 Full Year 2022 Guidance Medium Term Targets 1Key Economic Assumptions Loan Growth Upper single digits (ex PPP) Upper single digits • Rising rate environment Net Interest Income (FTE) growth ~10% – 15% (ex PPP) Upper single digits • The Federal Reserve Bank increases the fed funds
Slide 96: Final Recap
Final Recap 96
Slide 97: Our strategy has been consistent and is working
“Our strategy has been consistent and is working – but is evolving based on our experience and changes in our environment, customer expectations and behaviors.” - John Asbury, CEO 97
Slide 98: We Are Well Positioned for the Current Environment
Growth Footing We Are Well Asset Sensitivity Positioned for the Current Environment Expense Management Actions and Optimistic Pristine Credit About Our Future Top Tier Performance 98
Slide 99: Questions
Questions Atlantic Union Bankshares
Slide 100: Appendix
Appendix h Atlantic _ Union Bankshares 100
Slide 101: John Asbury
John Asbury President & CEO, Atlantic Union Bankshares CEO, Atlantic Union Bank John Asbury joined Atlantic Union Bankshares Corporation in October 2016 as President and Chief Executive Officer. Headquartered in Richmond, Virginia, Atlantic Union Bankshares is the holding company for Atlantic Union
Slide 102: Maria Tedesco
Maria Tedesco President & Chief Operating Officer, Atlantic Union Bank Over the past three decades, Maria Tedesco has transformed consumer and Before joining AUB in 2018 as the bank’s first female president in its commercial banking for some of the country’s best-known banks (Citizens, 100+ year his
Slide 103: Rob Gorman
Rob Gorman Executive Vice President & Chief Financial Officer, Atlantic Union Bankshares Robert M. Gorman is Executive Vice President and Chief Financial Officer for Atlantic Union Bankshares Corporation in Richmond, Virginia. Rob has over 25 years of broad based financial management experience prin
Slide 104: David Bilko
David Bilko Executive Vice President & Chief Risk Officer, Atlantic Union Bank David G. Bilko is Executive Vice President and Chief Risk Officer of Atlantic Union Bank, headquartered in Richmond, Virginia. Mr. Bilko held the position of Chief Risk Officer at Stellar One Bank prior to its acquisition
Slide 105: Dean Brown
Dean Brown Executive Vice President, Chief Information Officer & Head of Bank Operations, Atlantic Union Bank Dean joined Union Bank as an Executive Vice President CIO & Head of Bank Operations in February 2015. As an IT and Operational leader with 35 years of experience, he has held a number of sen
Slide 106: Bill Cimino
Bill Cimino Senior Vice President & Director of Investor Relations, Atlantic Union Bankshares Bill Cimino is currently Senior Vice President and Director of Investor Relations for Atlantic Union Bankshares. Cimino came to Atlantic Union in 2010 after working at Core Consulting, where he advised two
Slide 107: Kelly Dakin
Kelly Dakin Chief Digital and Customer Experience Officer, Atlantic Union Bank Kelly Dakin is a seasoned technology expert with more than 25 years of experience developing and deploying digital strategies and operationalizing digital products in the financial industry. In her current role at Atlanti
Slide 108: Dean Hackemer
Dean Hackemer Home Loans President, Atlantic Union Bank In my career, I enjoy the challenge of aligning the interests of each of the groups I serve: our shareholders, our customers and our teammates. I’m driven by my passion for execution and efficiency. I believe that strong leadership with focused
Slide 109: Alison Holt-Fuller
Alison Holt-Fuller Head of Product Management & Business First Line Risk Management, Atlantic Union Bank Alison is the Head of Product Management and Business First Line Risk Management at Atlantic Union Bank in Richmond, VA. She manages the bank’s consumer and business products and solutions, inclu
Slide 110: Rachael Lape
Rachael Lape Executive Vice President & General Counsel, Atlantic Union Bankshares Rachael Lape has spent 22 years representing financial institutions both in private practice and as in-house corporate counsel. As General Counsel and Executive Vice President of Atlantic Union Bankshares Corporation,
Slide 111: Clare Miller
Clare Miller Executive Vice President & Chief Human Resources Officer, Atlantic Union Bank Clare Miller joins Atlantic Union Bank in May,2022 where she will be responsible for Previously, Clare served as the Chief People Officer for Navigator Management leading key priorities such as talent acquisit
Slide 112: Shawn O’Brien
Shawn O’Brien Consumer and Business Banking Group Executive, Atlantic Union Bank Shawn O’Brien is Executive Vice President and Consumer and Business Banking Group Executive of Atlantic Union Bank with responsibility for consumer, small business and business banking across the entire bank footprint.
Slide 113: David Ring
David Ring Executive Vice President, Wholesale Banking Group Executive, Atlantic Union Bank David Ring joined Atlantic Union Bank as its Executive Vice President, Wholesale Banking Group Executive in September 2017. Ring oversees Corporate and Commercial Banking, Commercial Real Estate, Specialty Fi
Slide 114: Duane Smith
Duane Smith Executive Vice President & Chief Marketing Officer, Atlantic Union Bank Duane Smith, EVP, Chief Marketing Officer and Chief of Staff, has been with Atlantic Union Bank (formerly Union Bank & Trust) since November 2016. In this role, he’s accountable for all aspects of the bank’s marketin
Slide 115: David Zimmerman
David Zimmerman President of Atlantic Union Bank Wealth Management Prior to joining Atlantic Union Bank Wealth Management in 2019, David held the David is a Certified Professional Coach and is completing a MS degree in position of President & CEO of First Citizens Investor Services, the broker-deale
Slide 116: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 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 a supplement to GAAP, which is used to prepare the Company’s financial statement
Slide 117: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Adjusted operating measures exclude merger and rebranding-related costs, nonrecurring tax expenses, ADJUSTED OPERATING EARNINGS & FINANCIAL METRICS the gains or losses related to balance sheet repositioning (principally composed of gains and For the three month
Slide 118: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures The adjusted operating efficiency ratio (FTE) ADJUSTED OPERATING EFFICIENCY RATIO excludes merger-related costs, rebranding For the three costs, the amortization of intangible assets, months ended For the years ended December 31, gains or losses on sale of secu
Slide 119: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND ADJUSTED LEVERAGE RATIO As of March 31, 2022 Tangible assets, tangible common equity, and adjusted leverage ratio are used Atlantic Union Atlantic Union in the calculation of certain profitability, capital, and per s