Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (May 2022)
31 slides from Atlantic Union Bankshares's investor presentation, May 12, 2022
Slide 1: Investor Presentation May – June 2022
Investor Presentation Nasdaq: AUB May – June 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 on slides entitled “
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 5/4/2022 1) Regional bank defined as having less than $100 billion in assets; rank determined by asset size; data per S&P Global Market Intell
Slide 5: A Transformation Story: From Virginia Community Bank to Virginia's Bank
5 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 • The alternative to large competitors • Organic growth model + effective consolid
Slide 6: Our Value Proposition
6 Our Value Proposition Leading Regional Presence Dense, uniquely valuable presence across attractive markets Financial Strength Solid balance sheet & capital levels Attractive Financial Profile Solid dividend yield & payout ratio with earnings upside Strong Growth Potential Organic & acquisition op
Slide 7: Strong Presence in Prime Virginia Markets
7 Strong Presence in Prime Virginia Markets (1) Among midsized and community banks less than $100 billion in assets 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
Slide 8: Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three
8 Virginia’s Bank and Sizeable Opportunity to Take Market Share from the Big Three Source: SNL Financial and FDIC deposit data Deposit and branch data as of 6/30/21; pro forma for announced transactions and AUB branch closings Note: Excludes branches with deposits greater than $5.0 billion Virginia:
Slide 9: Virginia Is Among the Most Attractive Markets in USA
9 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 9 ranked Virginia the Best State for Business
Slide 10: Q1 2022 Highlights and 2022 Outlook
10 Q1 2022 Highlights and 2022 Outlook Loan Growth • 10.8% annualized loan growth, ex - Paycheck Protection Program 1 (PPP) (Non - GAAP), during Q1 2022 • Expect high single digit loan growth for 2022 Asset Quality • Net Charge - offs of less than 0.01 % annualized for Q1 2022 Positioning for Long T
Slide 11: Our Core Values
11 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, doin
Slide 12: We have three Strategic Priorities
12 We have three Strategic Priorities Organic Deliver Organic Growth • Overweighting opportunities in Wholesale Banking Group • Directing consumer efforts to market segments and delivery channels with the strongest value proposition • Prioritizing fee income growth • Maintaining a reliable low - cos
Slide 13: Strategic Imperatives have Evolved Alongside our Transformation
13 • Maintain a top tier financial position over time as the price of independence • Invest in our core business lines, people and operations to drive performance Strategic Imperatives have Evolved Alongside our Transformation Achieve & Sustain Top Tier Financial Performance • Accelerate the moderni
Slide 14: Balance Sheet Trends (GAAP)
14 Balance Sheet Trends (GAAP) Data as of or for the twelve months ended each respective year, except for 1Q 2022 which is as of or for the three months ended March 31, 2022 Loans ($mm) Deposits ($mm) Assets ($mm) $7,142 $9,716 $12,611 $14,021 $13,196 $13,459 2017 2018 2019 2020 2021 1Q 2022 16 % CA
Slide 15: Strong Track Record of Performance (GAAP)
15 Strong Track Record of Performance (GAAP ) Earnings Per Share Available to Common Shareholders ($) Return on Equity (ROE) (%) Return on Assets (ROA) (%) Efficiency Ratio (%) $1.67 $2.22 $2.41 $1.93 $3.26 $0.54 2017 2018 2019 2020 2021 1Q 2022 7.07% 7.85% 7.89% 6.14% 9.68% 6.66% 2017 2018 2019 202
Slide 16: Strong Track Record of Performance (Non-GAAP)
16 Strong Track Record of Performance (Non - GAAP ) Data as of or for the twelve months ended each respective year, except for 1Q 2022 which is as of or for the three months ended March 31, 2022 (1) Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendi
Slide 17: Strong Capital Position Supports Organic Growth
17 Strong Capital Position Supports Organic Growth 1 Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconciliation of Non - GAAP Disclosures” Capital Ratio as of 3/31/2022 Regulatory Well Capitalized Atlantic Union Bankshares Atlantic Union
Slide 18: Capital Management Priorities
18 Capital Management Priorities 1 Total Common shareholder payout; includes common share repurchases, common share dividends and operating net income (Non - GAAP). Adjusted Operating Earnings is a Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix
Slide 19: Top-Tier Financial Targets
19 Top - Tier Financial Targets Committed to top - tier financial performance 16 % – 18 % Return on Tangible Common Equity 1.3 % – 1.5 % Return on Assets ≤ 51 % (1) Efficiency Ratio (FTE) Atlantic Union is committed to achieving top tier financial performance and providing our shareholders with abov
Slide 20: Financial Outlook
20 Financial Outlook 1 1 Key Economic Assumptions • Rising rate environment • The Federal Reserve Bank increases the fed funds rate on an accelerated basis to: • 2.5% by the end of 2022; and • 3.25% at the end of 2023 • Soft landing achieved with real GDP growth of 2.0 - 3.0% over the forecast perio
Slide 21: Appendix
Appendix Atlanti h Gnion Bankshares
Slide 22: Virginia Market Highlights: Opportunity in Fast-Growing, Affluent Markets
22 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
Slide 23: Q1 Allowance for Credit Loss (ACL) and Provision for Credit Losses
23 Q1 Allowance For Credit Loss (ACL) and Provision for Credit Losses 23 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 aver
Slide 24: Diversified and Granular Loan Portfolio
24 Diversified and Granular Loan Portfolio Total Loan Portfolio $ 13.5 billion at March 31, 2022 Non - Owner Occupied CRE Composition — $ 4.6 billion Total Portfolio Characteristics Duration Q1 2022 Weighted Average Yield (Tax Equivalent) 1.6 years 3.49% Figures may not total to 100% due to rounding
Slide 25: Attractive Core Deposit Base
25 Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at March 31, 2022 — $ 16.5 billion (1) Core deposits defined as total deposits less jumbo time deposits • Q1 2022 cost of deposits – 11 bps • 98% core deposits (1) • 58% transactional accounts Non - Interest Bearing , 3
Slide 26: Reconciliation of Disclosures
26 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 27: Reconciliation of Disclosures
27 Reconciliation of Non - GAAP Disclosures Adjusted operating measures exclude merger and rebranding - related costs, nonrecurring tax expenses, the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment), gains or losses on sale of s
Slide 28: Reconciliation of Disclosures
28 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 Com
Slide 29: Reconciliation of Disclosures
29 Reconciliation of Non - GAAP Disclosures The adjusted operating efficiency ratio (FTE) excludes merger - related costs, rebranding costs , the amortization of intangible assets, gains or losses on sale of securities, gains on the sale of Visa, Inc. Class B common stock, gains or losses related to
Slide 30: Reconciliation of Disclosures
30 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
Slide 31: Reconciliation of Disclosures
31 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. As of A
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