Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (August 2016)
20 slides from Atlantic Union Bankshares's investor presentation, Aug 2, 2016
Slide 1: Investor Presentation August/September 2016
Investor Presentation August/September 2016
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 future e
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 $8.1 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: Attractive market demographics across Virginia regions
Source: SNL Financial – June 2015 Hampton Northern Northern Roads Richmond Virginia Southwest Charlottesville Rappahannock Fredericksburg Neck Total Region Region Region Region Region Region Region Region UBSH Regions Total Households 451,124 391,588 420,049 258,821 220,068 198,251 134,666 26,024 2,
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 • 120 branches • Consolidated 3 in-store branches in Winchester into a new stand-alone branch in April. Closed 2 other branches in second quarter. • Will close 5 in-store branches in September • Only Virginia based bank with a statewide footprint • 1,251 FTEs • 58 Commercial Lende
Slide 8: Strong Presence Across All Major Virginia Markets
MSA Market Share Rank Company Deposits Total Market Deposits Market Share Roanoke Deposits: $351 mm Market Tot.: $7.3 bn Mkt. Share: 4.8% Rank: #6 Branches: 8 Staunton / Harrisonburg Rank: #2 Deposits: $496 mm Market Tot.: $3.6 bn Mkt. Share: 13.9% Branches: 13 Blacksburg Rank: #1 Deposits: $690 mm
Slide 9: Largest Community Bank in Virginia
Source: SNL Financial; Deposit data as of 6/30/2015; Pro forma for recent acquisitions Largest Community Bank in Virginia Rank Institution (ST) Number of Branches Deposits in Market ($mm) Market Share (%) 1 Wells Fargo & Co. (CA) 290 36,737 20.1 2 Bank of America Corp. (NC) 142 27,609 15.1 3 BB&T Co
Slide 10: Union Wealth Management
Union Wealth Management • Trust, Asset Management, Private Banking, Brokerage and Financial Planning services • $2.3B in AUM and AUA, the majority of which is managed assets • $2.3 million fiduciary and asset management fees generated in 2Q16 • Organic and Acquisitive growth opportunities • Expand s
Slide 11: Union Mortgage Group
Union Mortgage Group • 22 offices: 20 in Virginia, 1 each in Maryland and North Carolina • 105 FTEs – 42 loan officers • $140.1 million in 2Q16 (34% refinance) • $539,000 net income in 2Q16 • Up from $54,000 in 1Q • Opportunities: • Salesforce expansion in growth markets • Improved pipeline manageme
Slide 12: 2Q 2016 Highlights
2Q 2016 Highlights • Net Income was $19.3 million; earnings per share of $0.44 – up ~$4 million or 10 cents from 2Q 2015 • Loan growth was 11.1% annualized in the quarter • Deposit balances grew 10.1% annualized in the quarter • Closed on acquisition of Old Dominion Capital Management – registered i
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 2012 2013 2014 2015 1Q 2016 2Q 2016 $2,967 $3,039 $5,346 $5,671 $5,781 $5,941 Loans ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 1Q 2016
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 5.7 million shares since 2012 • In 2016, repurchased $30.7 million of stock (~1.3 million shares) as of June 30, 2016. • In February, Board approved a $2
Slide 15: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after-tax acquisition expenses and acquisition accounting impact 15 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2012* 2013* 2014* 2015* 2Q 2016* 0.89% 0.90% 0.91% 0.90% 0.98% Return on Average Assets (ROA) 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12
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: 16
Slide 17: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity Revenue Expense Profit Improvement This path also delivers Return on Assets of above 1.1% 17 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 ROTCE - June YTD 2016 ROTCE Target 1.0-1.4% 0.3% 0.3-0.5% 0.1-0.2% 0.1-0.2% 13+% 10.9% Loan Growth with Stabiliz
Slide 18: 2016 Outlook
2016 Outlook • Stable to growing economy in footprint • High single digit loan growth • Modest net interest margin compression for 3Q and 4Q – assumes no rate increase by Fed • Continued asset quality improvement – reduction of OREO expenses • Improving ROA, ROTCE and Efficiency Ratio • Closing 5 br
Slide 19: Value Proposition
Value Proposition • Statewide Virginia 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 Valu
Slide 20: Thank You!
THANK YOU! \ sb LLG DL
Union Bankshares — Investor Presentation (August 2016) on 6ix