Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — IPO Roadshow (November 2016)
27 slides from Atlantic Union Bankshares's IPO roadshow presentation, Nov 29, 2016
Slide 1: Subordinated Notes Offering November 2016
Union Bankshares Corporation (NASDAQ: UBSH) Subordinated Notes Offering November 2016
Slide 2: Forward-Looking Statements
This image cannot currently be displayed. Forward - Looking Statements This presentation has been prepared by Union Bankshares Corporation (“Union” or the “Company”) solely for informational purposes based on information regarding its operations, as well as information from public sources. This pres
Slide 3: Terms of Proposed Offering
Terms of Proposed Offering • Issuer : Union Bankshares Corporation • Security : Fixed - to - Floating Rate Subordinated Notes • Size : $100 million to $125 million • Term : 10 Years, Non - call 5 • Covenants : Consistent with regulatory requirements for Tier 2 Capital • Use of proceeds : Repay amoun
Slide 4: Company Snapshot
Company Snapshot 4 Overview Branch Map • Shares listed under “UBSH” on NASDAQ • Headquartered in Richmond, VA • 100+ years of banking history • 115 offices across over 50 counties and 10 MSAs throughout Virginia - Only Virginia - based bank with a statewide footprint - Largest community banking orga
Slide 5: Experienced Management Team
Experienced Management Team 5 Name (Title) Background G. William “Billy” Beale (Chief Executive Officer) Following graduation from The Citadel, Mr. Beale began his banking career in Texas in 1971. Over 18 years he served in various capacities at three banks including president of a de novo bank. Bea
Slide 6: CEO Succession Plan
CEO Succession Plan • John Asbury became President & CEO of Union Bank & Trust (UB&T) and President of Union Bankshares Corporation (UBSH), Union’s holding company, on October 1, 2016 - Most recently, he was President and CEO of First National Bank of Santa Fe, a multi - state bank located in the So
Slide 7: Strategic Objectives
Strategic Objectives By the end of the three year strategic plan horizon, Union intends to have: • Positioned itself to be a regional bank and grown total assets to between $12 and $15 billion via organic growth and acquisition • Achieved top quartile performance among peers as measured by return on
Slide 8: Successful Merger History
Successful Merger History 8 Source: SNL Financial, Company documents 1992 1994 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Northern Neck Bankshares Corp. Announce Date 1/11/1993 Deal Value ($mm) NA Target Assets ($mm) $112 Target / PF Assets (%) 33.0% King George State Bank, Inc. Announce Date
Slide 9: Consolidated Regulatory Capital Ratios
Consolidated Regulatory Capital Ratios 9 Note: Union’s Board of Directors authorized share repurchase programs on 1/30/2014 (up to $65 million), 10/29/2015 (up to $25 mi llion) and 2/25/2016 (up to $25 million) Source: SNL Financial, Company documents 11.27% 11.26% 11.20% 10.55% 9.78% 13.14% 13.03%
Slide 10: Bank Regulatory Capital Ratios
Bank Regulatory Capital Ratios 10 Note: Union’s Board of Directors authorized share repurchase programs on 1/30/2014 (up to $65 million), 10/29/2015 (up to $25 mi llion) and 2/25/2016 (up to $25 million) Source: SNL Financial, Company documents 12.70% 12.43% 12.36% 11.52% 10.93% 12.70% 12.43% 12.36%
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio 11 Source: SNL Financial, Company documents Loan Composition at September 30, 2016 Residential 1 - 4 Family 15% CRE 43% C&D 13% Second Mortgages 1% Equity LOC 9% C&I 8% Personal 9% Farm 0% Other 2% Portfolio Characteristics Average loan size $137,000 Weighted average matur
Slide 12: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 12 Source: SNL Financial, Company documents CRE Composition at September 30, 2016 Owner Occupied 32% Retail 13% Office 12% Office Warehouse 9% Hotel, Motel, B&B 7% Special Use 8% Small Mixed Use Building 5% Other 1% Multifamily 13% Portfolio Characteristics 10 larges
Slide 13: Construction and Development Loans
Construction and Development Loans 13 Source: Company documents C&D Composition at September 30, 2016 Portfolio Characteristics 10 largest loans 15.4% of C&D portfolio 10 largest loans 2.3% of total loan portfolio Weighted average maturity 19 months Weighted average coupon 4.08% C&D Loans/Total Capi
Slide 14: Commercial & Industrial Loans
Commercial & Industrial Loans 14 Source: Company documents C&I Composition at September 30, 2016 Portfolio Characteristics 10 largest loans 15.0% of C&I portfolio 10 largest loans 1.7% of total loan portfolio Weighted average maturity 43 months Weighted average coupon 3.80% Average loan size $230,00
Slide 15: Historically Strong Credit Metrics
Historically Strong Credit Metrics 15 Note: UBSH metrics above were obtained from SNL for peer comparison purposes and are calculated in a manner different from similar metrics calculated in the Company ’s other public filings. The metrics herein can be recalculated using information available in th
Slide 16: Historically Strong Credit Metrics (Cont'd)
Historically Strong Credit Metrics (Cont’d) 16 Source: SNL Financial Texas Ratio 30.19% 22.80% 11.73% 6.15% 5.39% 29.73% 24.07% 19.87% 12.46% 11.68% 2012Y 2013Y 2014Y 2015Y 2016Q3 UBSH U.S. Commercial Banks - $5B - $10B
Slide 17: Solid Reserve Coverage of NPLs
Solid Reserve Coverage of NPLs 17 Note: UBSH metrics above were obtained from SNL for peer comparison purposes and are calculated in a manner different from si mil ar metrics calculated in the Company’s other public filings. The metrics herein can be recalculated using information available in the a
Slide 18: Consistent Solid Profitability Metrics
Consistent Solid Profitability Metrics 18 (1) Year - to - date annualized Source: SNL Financial, Company documents ROAA ROAE 0.89% 0.85% 0.72% 0.90% 0.95% 1.21% 1.36% 1.24% 1.27% 1.20% 2012Y 2013Y 2014Y 2015Y 2016Q3¹ UBSH U.S. Commercial Banks - $5B - $10B 8.10% 7.89% 5.30% 6.76% 7.64% 10.01% 10.77%
Slide 19: Consistent Solid Profitability Metrics (Cont'd)
Consistent Solid Profitability Metrics (Cont’d) 19 (1) Year - to - date annualized Note: UBSH metrics above were obtained from SNL for peer comparison purposes and are calculated in a manner different from si mil ar metrics calculated in the Company’s other public filings. The metrics herein can be
Slide 20: Low Cost Core Deposit Base
Low Cost Core Deposit Base 20 (1) Time deposits greater than $100,000 Note: Minimal exposure to CDARS/ICS deposits Source: SNL Financial, Company documents Deposit Composition at September 30, 2016 Deposit Base Characteristics Average cost of interest bearing deposits 0.38% Average total cost of dep
Slide 21: Securities Portfolio
($000) Book Value Gain / Loss Fair Value Municipals $467,130 $21,810 $488,940 Corporate Bonds 122,130 (383) 121,747 MBS 529,228 11,368 540,596 Other 13,385 33 13,418 Total $1,131,873 $32,828 $1,164,701 Securities Portfolio 21 Source: SNL Financial, Company documents Securities Portfolio Composition
Slide 22: Historical and Pro Forma Interest Coverage
Historical and Pro Forma Interest Coverage 22 Note: Assumes a $100mm subordinated debt raise with a 5.00% coupon and 1.00% underwriting fee Note: Assumed offering size, interest rate, and amount of capital downstreamed are for illustrative purposes only Source: SNL Financial ($000) As of or for the
Slide 23: Interest Rate Sensitivity
Interest Rate Sensitivity 23 Source : Company documents Immediate Interest Rate Change Effect on Net Interest Income September 30, 2016 + 300 basis points 11.25% + 200 basis points 7.65% + 100 basis points 3.91% - 100 basis points (3.30)% - 200 basis points (4.66)% - 300 basis points (4.76)%
Slide 24: Summary
Summary • Largest community bank headquartered in Virginia, with unique statewide branch network • Competitive advantage with unique franchise value and loyal customer base • Strong balance sheet and capital base • Well positioned for continued organic growth • Experienced management team • Committe
Slide 25: Appendix
Appendix Lil UNI
Slide 26: Non-GAAP Reconciliation
Non - GAAP Reconciliation 26 (1) Year - to - date annualized (2) Includes gains/losses on sale of OREO and valuation adjustments Source: Company documents ($000) 2012Y 2013Y 2014Y 2015Y 2016Q3¹ Net Interest Income (GAAP) $154,355 $151,626 $255,018 $251,834 $196,535 FTE Adjustment $4,222 $5,256 $8,12
Slide 27: Non-GAAP Reconciliation (Cont'd)
Non - GAAP Reconciliation (Cont’d) 27 Source: Company documents ($000) 2012Y 2013Y 2014Y 2015Y 2016Q3 Nonperforming Assets $59,040 $49,151 $47,373 $27,235 $23,258 Loans past due 90+ days and accruring interest $8,843 $6,746 $10,047 $5,829 $3,529 Performing Restructurings $51,468 $34,520 $22,829 $10,