Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (November 2015)
20 slides from Atlantic Union Bankshares's investor presentation, Nov 10, 2015
Slide 1: Investor Presentation November 2015
Investor Presentation November 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 $7.6 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 • 124 branches – closed 7 branches in 3 rd quarter • Only Virginia based bank with a statewide footprint • 1,272 FTEs • 5 5 Commercial Lenders • $ 5.5 Billion Loans • $5.8 Billion Deposits • 147,000+ 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 6/30/2015 Note: Richmond market total deposits includes non - retail deposits; Fredericksburg market defined as Caroline, Fredericksburg Cit y, King Ge
Slide 9: Deposit Market Share Summary for Virginia 2015
Deposit Market Share Summary for Virginia 2015 Rank Institution (ST) 2015 Number of Branches 2015 Total Deposits in Market ($000) 2015 Total Market Share (%) 1 Wells Fargo & Company (CA) 291 36,737,065 20.06 2 Bank of America Corporation (NC) 143 27,608,625 15.08 3 BB&T Corporation (NC) 359 22,793,6
Slide 10: Union Mortgage Group
Union Mortgage Group • 20 offices: 18 in Virginia, 1 each in Maryland and North Carolina • 110 FTEs – 44 loan officers • $148.1 million in 3Q15 originations – 32% refinance • $59,000 net income in 3Q15 • Re - tooled operating platform helps recruit new sales talent and profitably grow production • O
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 3Q15 • Organic and Acquisitive growth opportunities • Expand services to existing customers • Opport
Slide 12: Third Quarter 2015 Highlights
Third Quarter 2015 Highlights • Net Income $18.2 million; earnings per share of $0.40 • Mortgage company remained profitable • Loan growth for last 12 months was 7.2%; annualized Loan growth was 4.3% for the quarter • Annualized average deposit balances grew 7.3% • Core Net Interest Margin declined
Slide 13: Balance Sheet Trends
Balance Sheet Trends 13 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2009 2010 2011 2012 2013 2014 3Q 2015 $2,587 $3,837 $3,907 $4,096 $4,177 $7,359 $7,594 Assets ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2009 2010 2011 20
Slide 14: Capital Ratios and Share Repurchases
Repurchased 1.1 million shares in 2012 Capital Ratios 14 • Since 2011, increased quarterly dividend from $0.07/share to $0.19/share • Repurchased 4.1 million shares over past 3.5 years • As of October 30, 2015, approximately $2.5 million remaining on $65 million 2014 stock buyback authorization • Ne
Slide 15: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after - tax acquisition expenses and acquisition accounting impact 15 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2010* 2011* 2012* 2013* 2014* 3Q15* 0.78% 0.80% 0.89% 0.90% 0.91% 0.96% Return on Average Assets (ROA) 8.50% 9.00% 9.50% 10.00% 10.50% 11.00% 20
Slide 16: 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: 1
Slide 17: 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+% 9.9% Loan Growth with Stabilized NIM Rate rise of 100 bps Normalized OREO Expense Management Improv
Slide 18: 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 18
Slide 19: 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 20: Thank You!
THANK YOU! UNION
Union Bankshares — Investor Presentation (November 2015) on 6ix