Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (July 2015)
21 slides from Atlantic Union Bankshares's investor presentation, Jul 28, 2015
Slide 1: Investor Presentation July 2015
Investor Presentation July 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 $7.5 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: Organic growth opportunities in our footprint
O 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 UBSH Regions Market Information, 2014 Total Households 220,068 134,666 451,124 26,
Slide 6: 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 7: Union Bank & Trust
Union Bank & Trust • 130 branches – closing 6 branches by end of August • Only Virginia based bank with a statewide footprint • 1,296 FTEs • 5 7 Commercial Lenders • $ 5.5 Billion Loans • $5.8 Billion Deposits • 146,000+ Core Consumer Households 7
Slide 8: 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 8 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 9: Top Community Bank Market Share
Top Community Bank Market Share 9 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 10: Union Mortgage Group
Union Mortgage Group • 21 offices: 18 in Virginia, 1 each in Maryland, North Carolina and South Carolina • 115 FTEs – 41 loan officers • $140.3 million in 2Q15 originations – 31% refinance • $95,000 net income in 2Q15 • Completed a systemic change and complete platform rebuild in Q1. Work began in 2
Slide 11: 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 • $2.3 million in fees generated in 2Q15 • Organic and Acquisitive growth opportunities • Expand services to existing customers • Opport
Slide 12: 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 13: Second Quarter 2015 Highlights
Second Quarter 2015 Highlights • Net Income $15.3 million and earnings per share were $0.34 • Includes $1.3 million in pre - tax non - recurring costs related to closing of 7 branches in August • Mortgage segment returned to profitability • Annualized Loan growth was 9.1% driven by an increase of 10
Slide 14: Balance Sheet Trends
Balance Sheet Trends 14 $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 2Q 2015 $ 1,874 $ 2,837 $ 2,819 $ 2,967 $ 3,039 $ 5,346 $ 5,510 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 2Q
Slide 15: Capital Ratios
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2010 2011 2012 2013 2014 2Q 2015 14.68% 14.51% 14.57% 14.17% 13.38% 12.82% 8.22% 8.91% 8.96% 8.93% 9.27% 9.30% Total risk-based capital Tangible Equity/Tangible Assets Repurchased 1.1 million shares in 2012 Capital Ratios 15 • Repurchased 3.9
Slide 16: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after - tax acquisition expenses and acquisition accounting impact ** excludes after - tax branch closing costs 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2010* 2011* 2012* 2013* 2014* 1Q 2015* 2Q 2015* 4.24% 4.37% 4.24% 4.18%
Slide 17: 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 18: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 ROTCE - 2015 YTD ROTCE Target 0.9 - 1.1% 0.3 - 0.5% 0.2 - 0.4% 0.4 - 0.6% 0.3 - 0.5% 1.1 - 1.3% 13+% 9.7% Loan Growth with Stabilized NIM Rate rise of 100 bps Normalized OREO Expense Management Improv
Slide 19: 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 20: 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 21: Thank You!
THANK YOU! UNION