Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (November 2021)
30 slides from Atlantic Union Bankshares's investor presentation, Nov 5, 2021
Slide 1: Investor Presentation November – December 2021
Investor Presentation Nasdaq: AUB November – December 2021
Slide 2: Forward Looking Statements
2 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 projections, predictions, expectations, or beliefs about
Slide 3: Additional Information
3 Additional Information 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: Largest Regional Banking Company Headquartered in Virginia
4 Largest Regional Banking Company Headquartered in Virginia Our Company Soundness | Profitability | Growth Data as of 9/30/2021, market capitalization as of 10/22/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size Highlights ($bn) Branch Footprint
Slide 5: Our Value Proposition
5 Our Value Proposition Strong Growth Potential Organic & acquisition opportunities Financial Strength Solid balance sheet & capital levels Leading Regional Presence Unique value in branch footprint across attractive market Attractive Financial Profile Solid dividend yield & payout ratio with earnin
Slide 6: Our Markets
6 Our Markets Source: SNL Financial; excludes branches greater than $5 billion Deposit data as of 6/30/2021; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA definitions in SNL 6 Richmond State Capital, Fortune
Slide 7: Virginia's Bank
7 Virginia’s Bank Source: SNL Financial and FDIC deposit data Deposit and branch data as of 6/30/21; pro forma for announced transactions Note: Excludes branches with deposits greater than $5.0 billion Virginia: All Banks Virginia: Banks Headquartered in VA Statewide Branch Footprint Brings Unique F
Slide 8: Virginia Is Among the Most Attractive Markets in USA
8 Virginia Is Among the Most Attractive Markets in USA Source: SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics, Fortune.com, U.S. News & World Report; Forbes, CNBC, U.S. Small Business Administration, USA Today; Business Facilities Unemployment data as of 10/21 8 ranked Virgin
Slide 9: Our Core Values
9 Caring Working together toward common goals, acting with kindness, respect and a genuine concern for others. Courageous Speaking openly, honestly and accepting our challenges and mistakes as opportunities to learn and grow. Committed Driven to help our clients, Teammates and company succeed, doing
Slide 10: Customer Experience Successes
10 10 Customer Experience Successes For J.D. Power 2021 award information, visit jdpower.com/awards Atlantic Union is #1 among small businesses in the South Region with $1 - $10mm in revenue. Atlantic Union believes that the successful launch of PPP and support of the Small Business Community during
Slide 11: Balance Sheet Trends (GAAP)
11 Balance Sheet Trends (GAAP) Data as of or for the twelve months ended each respective year and the nine months ended September 30, 2021 Loans ($mm) Deposits ($mm) Assets ($mm) $6,307 $7,142 $9,716 $12,611 $14,021 $13,140 2016 2017 2018 2019 2020 3Q2021 16% CAGR $6,379 $6,992 $9,971 $13,305 $15,72
Slide 12: Strong Track Record of Performance (GAAP)
12 Strong Track Record of Performance (GAAP) pre and post 2020 COVID-19 Impact Data as of or for the twelve months ended each respective year except for the first 3Q of 2021, which is the first 9 months ended on September 30, 2021 Earnings Per Share Available to Common Shareholders ($) Return on Equ
Slide 13: Strong Track Record of Performance (Non-GAAP)
13 Strong Track Record of Performance (Non-GAAP) pre and post 2020 COVID-19 Impact Data as of or for the twelve months ended each respective year except for the first 3Q of 2021, which is the first 9 months ended on September 30, 2021 (1) Non-GAAP financial measure; See reconciliation to most direct
Slide 14: Credit Loss Trends (GAAP)
14 Credit Loss Trends (GAAP) Data as of or for the twelve months ended each respective year except for the first 3Q of 2021, which is the first 9 months ended on September 30, 2021 Note: The Company adopted of ASU 2016-13, Financial Instruments and Credit Losses (Topic 326): Measurement of Credit Lo
Slide 15: Capital Management
15 Capital Targets AUB 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 levels are commensurate with the Company’s risk profile, capital stress test projec
Slide 16: Q3 Allowance For Credit Loss and Provision for Credit Losses
16 Q3 Allowance For Credit Loss (ACL) and Provision for Credit Losses Note: Figures may not foot due to rounding (1) Non-GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconciliation of Non-GAAP Disclosures” 16 Q3 Macroeconomic Forecast Moody’s Se
Slide 17: Post-Pandemic Financial Targets
17 Post-Pandemic Financial Targets Committed to top-tier financial performance 13%– 15% Return on Tangible Common Equity 1.1%– 1.3% Return on Assets ≤ 53% Efficiency Ratio (FTE) Atlantic Union is committed to achieving top tier financial performance and providing our shareholders with above average
Slide 18: Our Long-Term Strategic Priorities
18 Our Long-Term Strategic Priorities Diversify Loan Portfolio and Revenue Streams • 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 Grow Core Funding • Fund
Slide 19: Appendix
Appendix h rion hankehares
Slide 20: Virginia Market Highlights
20 Virginia Market Highlights Opportunity in Fast-Growing, Affluent Markets Source: S&P Global Market Intelligence Boxes denote county/city of operation (1) Median HH Income projected for 2021 Top Counties in the U.S. — Projected Median HH Income ($000s)(1) Top 10 Counties in Virginia — Projected 5-
Slide 21: Our Presence in Key Markets
21 Our Presence in Key Markets Source: S&P Global Market Intelligence Note: Deposit data excludes branches with deposits greater than $5 billion Deposit and branch data as of 6/30/21; pro forma for announced transactions (1) Northern Virginia includes only the Virginia branches of the Washington, Al
Slide 22: Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP)
22 Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP) Data as of or for the twelve months ended each respective year except for the first 3Q of 2021, which is the first 9 months ended on September 30, 2021 Note: The Company adopted of ASU 2016-13, Financial Instruments and Credit Losses (To
Slide 23: Diversified and Granular Loan Portfolio
23 Diversified and Granular Loan Portfolio Total Loan Portfolio $13.1 billion at September 30, 2021 Non-Owner Occupied CRE Composition — $4.5 billion C&D 6.7% Owner Occupied CRE 15.4% C&I 19.6% Non-Owner Occupied CRE 34.3% 1-4 Family 11.0% Other 4.1% Residential 1-4 family - Revolving 4.2% Consumer
Slide 24: Attractive Core Deposit Base
24 Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at September 30, 2021 — $16.6 billion (1) Core deposits defined as total deposits less jumbo time deposits Non-Interest Bearing, 32% NOW, 24% Money Market, 25% Retail Time, 9% Jumbo Time, 3% Savings, 6% • Q3 2021 cost o
Slide 25: Reconciliation of Non-GAAP Disclosures
25 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 supplements to GAAP, which is used to prepare the Company’s financial stateme
Slide 26: Reconciliation of Non-GAAP Disclosures
26 Reconciliation of Non-GAAP Disclosures 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 sheet repositioning (princi
Slide 27: Reconciliation of Non-GAAP Disclosures
27 Reconciliation of Non-GAAP Disclosures PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic gr
Slide 28: Reconciliation of Non-GAAP Disclosures
28 Reconciliation of Non-GAAP Disclosures The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, merger and rebranding-related costs, the gain on sale of securities, and gains or losses related to balance sheet repositioning (principally composed of gains and l
Slide 29: Reconciliation of Non-GAAP Disclosures
29 Reconciliation of Non-GAAP Disclosures Tangible assets, tangible common equity, and adjusted leverage ratio are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity, adjusted leverage ratio and the related ra
Slide 30: Reconciliation of Non-GAAP Disclosures
30 Reconciliation of Non-GAAP Disclosures PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides more clarity on the Company’s organic gr
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