Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Shareholder Meeting (May 2022)
34 slides from Atlantic Union Bankshares's shareholder meeting presentation, May 3, 2022
Slide 1: 2022 Annual Shareholders Meeting
2022 Annual Shareholders Meeting Nasdaq: AUB May 3, 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: CEO Update John Asbury
4 CEO Update John Asbury
Slide 5: Largest Regional Banking Company Headquartered in Virginia
5 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 6: Virginia's Bank
6 Virginia’s Bank 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: All Banks Virginia: Banks Headquartered in VA Statewide Branch F
Slide 7: Virginia Is Among the Most Attractive Markets in USA
7 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 7 ranked Virginia the Best State for Busines
Slide 8: Virginia Market Highlights
8 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 9: Our Markets
9 Our Markets 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 and Stafford counties; all other markets per MSA definitions in SNL 9 Richmond State Capital, Fortune
Slide 10: Diversified and Granular Loan Portfolio
10 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 11: Attractive Core Deposit Base
11 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 12: Our Value Proposition
12 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 earni
Slide 13: Strategic Stakeholders
13 Strategic Stakeholders TEAMMATES A rewarding Teammate experience is key to attracting and retaining talented individuals. We want to inspire our Teammates to grow and develop, love what they do and who they do it for. COMMERCIAL RETAIL CUSTOMERS Satisfied customers think of us first for their ban
Slide 14: Our Core Values
14 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 15: 2021 Highlights and 2022 Outlook
15 2021 Highlights and 2022 Outlook Return to Loan Growth • 11.7% annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, during Q4 and 1.6% loan growth, ex - PPP, for 2021 1 • 10.8% annualized loan growth ex - PPP, during Q1 2022 1 • Expect high single digit loan growth for 202
Slide 16: Operating Group President and COO Maria Tedesco
16 Operating Group President and COO Maria Tedesco
Slide 17: Operating Group Organizational Structure
17 Operating Group Organizational Structure President and Chief Operating Officer Wholesale Banking Consumer & Business Banking Home Loans Wealth Management Digital Strategy Marketing Business Line Intelligence Enterprise Operations and Technology First Line of Defense KEY PARTNER GROUPS Human Resou
Slide 18: Enterprise & Segmented Approach
18 We are maturing toward an enterprise and segmented approach, consistent with our previous strategic plan vision. Be the premier regional bank headquartered in the Mid - Atlantic, providing sophisticated banking services coupled with a style of doing business that differentiates us from competitor
Slide 19: The market has recognized us for our progress
19 The market has recognized us for our progress J.D. Power awards AUB #1 in Customer Satisfaction with Retail Banking in the Mid - Atlantic Region, surpassing our closest competitor by 22 points and the regional average by 40. AUB sees year - over - year improvements in Net Promoter Score, making b
Slide 20: Excellence in Business Banking
20 Excellence in Business Banking 2020 & 2021 Greenwich Excellence Award Winner In Greenwich’s annual study, AUB leads each of the big banks among small businesses in the South Region with $1 - $10mm in revenue. Successful launch of PPP and support of the small business community during the pandemic
Slide 21: • The right business leaders in place, as we build the business with more
21 • The right business leaders in place, as we build the business with more great talent every day. The partnership between our leaders is strong and will lead to synergies that will propel us. • A reputation that resonates with consumers and businesses alike. High brand consideration and great sat
Slide 22: CFO Update Rob Gorman
22 CFO Update Rob Gorman
Slide 23: 2021 Financial Results
23 2021 Financial Results Full Year 2021 Financial Highlights For the year ended 2021, reported net income available to common shareholders was $252.0 million and earnings per common share were $ 3.26. Excluding $11.6 million in after - tax balance sheet restructuring costs, $69,000 in after - tax g
Slide 24: First Quarter 2022 Financial Highlights
24 First Quarter 2022 Financial Highlights Net income available to common shareholders for the first quarter was $40.7 million or 54 cents per common share. Excluding branch closing and facility consolidation costs in both the fourth and first quarter and the prior quarter’s $4.1 million after - tax
Slide 25: Strong Capital Position at March 31, 2022
25 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 1 5.0% 9.1% (
Slide 26: Dividends and Total Shareholder Return Performance
26 $0.54 $0.58 $0.68 $0.77 $0.81 $0.88 $0.96 $1.00 $1.09 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2.0% 11.1% Proxy Peers AUB 5 Year Relative TSR 1 1 As of April 26, 2022 1 Year Relative TSR 1 - 8.6 % - 7.6% Proxy Peers AUB 137.9% 220.3% Proxy Peers AUB 10 Year Relative TSR 1 Dividends Paid per
Slide 27: Post-Pandemic Financial Targets
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 above
Slide 28: Questions?
Questions? _ Atlantic _ Union Bankshares
Slide 29: Appendix
Appendix _ Atlantic _ Union Bankshares
Slide 30: Reconciliation of Non-GAAP Disclosures
30 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 31: Reconciliation of Non-GAAP Disclosures
31 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 32: Reconciliation of Non-GAAP Disclosures
32 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 33: Reconciliation of Non-GAAP Disclosures
33 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 34: Reconciliation of Non-GAAP Disclosures
34 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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