Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q1 2022 Earnings Presentation
22 slides from Atlantic Union Bankshares's earnings presentation, Apr 21, 2022
Slide 1: 1st Quarter FY2022 Earnings Presentation
1 st Quarter FY2022 Earnings Presentation Nasdaq: AUB April 21, 2022
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, without limitation, statements regarding the Compan
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 financial measures are a supplement to GAAP, wh
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 3/31/2022, market capitalization as of 4/20/2022 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size; data per S&P Global Market Intell
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: Q1 2022 Highlights and 2022 Outlook
6 Q12022 Highlights and 2022 Outlook Loan Growth • 10.8% annualized loan growth, ex - Paycheck Protection Program (“PPP ”), during Q1 (non - GAAP) • Expect high single digit loan growth for 2022 Asset Quality • Net Charge - offs at 0 bps annualized for Q1 2022 Positioning for Long Term • Consolidate
Slide 7: Our Core Values
7 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 8: Q1 2022 Financial Performance At-a-Glance
8 Q1 2022 Financial Performance At - a - Glance For non - GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non - GAAP Disclosures” Note: all tables presented dollars in thousands, expect per share amounts • Net income available to
Slide 9: Q1 Allowance for Credit Loss (ACL) and Provision for Credit Losses
9 Q1 Allowance For Credit Loss (ACL) and Provision for Credit Losses 9 Q1 Macroeconomic Forecast Moody’s March 2022 Baseline Forecast • US GDP averages 3.5% growth in 2022 and 3.1 % in 2023. The national unemployment rate averages 3.6 % in 2022 and 3.4% in 2023. • Virginia’s unemployment rate averag
Slide 10: Net Interest Margin (FTE): Drivers of Change Q4 2021 to Q1 2022
10 3.10% 3.04% 2 bps 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% Quarter 4 NIM Core Loan Yield with Fees PPP Loans with Fee Purchase Accounting Accretion Securities Yield Earning Asset Mix Deposit Costs Core Borrowings Quarter 1 NIM Net Interest Margin (FTE): Drivers of Change Q4 2021 to Q1 2022
Slide 11: Q1 2022 Noninterest Income and Noninterest Expense
11 Q1 2022 Noninterest Income and Noninterest Expense Noninterest income declined $6.2 million to $30.2 million for the quarter ended March 31, 2022 from $36.4 million in the prior quarter due to: • Decreased service charges on deposit accounts of $212,000 • Decreased interchange fees of $217,000 du
Slide 12: Q1 2022 Loan and Deposit Growth
12 Q1 2022 Loan and Deposit Growth • At March 31, 2022, loans held for investment totaled $13.5 billion, an increase of $263.5 million from the prior quarter driven by increases in commercial loan balances ex PPP of $297.5 million and increases in consumer loan balances ex PPP of $48.9 million, part
Slide 13: Strong Capital Position at March 31, 2022
13 Strong Capital Position at March 31, 2022 Capital Ratio Regulatory Well Capitalized Atlantic Union Bankshares* Atlantic Union Bank* Common Equity Tier 1 Ratio (CET1) 7.0% 9.9% 12.9% Tier 1 Capital Ratio 8.5% 10.9% 12.9% Total Risk Based Capital Ratio 10.5% 13.8% 13.3% Leverage Ratio 5.0% 9.1% ( 9
Slide 14: Post-Pandemic Financial Targets
14 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 abo
Slide 15: Appendix
Appendix A Atlantic _ Union Bankshares
Slide 16: Disclosures
16 Reconciliation of Non - GAAP Disclosures The Company has provided supplemental performance measures on a tax - equivalent, tangible, operating, adjusted, or pre - tax pre - pr ovision basis. These non - GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s finan
Slide 17: Disclosures
17 Reconciliation of Non - GAAP Disclosures Adjusted operating measures exclude the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, a
Slide 18: Disclosures
18 Reconciliation of Non - GAAP Disclosures Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE) and adjusted operating efficiency ratio (FTE), respectively, provide valuable additional insight into the net interest margin and the efficien
Slide 19: Disclosures
19 Reconciliation of Non - GAAP Disclosures Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy
Slide 20: Disclosures
20 Reconciliation of Non - GAAP Disclosures Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy
Slide 21: Disclosures
21 Reconciliation of Non - GAAP Disclosures Pre - tax pre - provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period - to - period under the CECL methodology, income tax expense, gains or losses related to balance sheet repositioning (princi
Slide 22: Disclosures
22 Reconciliation of Non - GAAP Disclosures PPP adjustment impact excludes the unforgiven portion of PPP loans. 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 growth. The Compa
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