Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Day (May 2022)
104 slides from Atlantic Union Bankshares's investor day presentation, May 9, 2022
Slide 1: Investor Day 2022
Investor Day 2022 Nasdaq: AUB May 9, 2022
Slide 2: Today's Speakers
2 2 Today’s Speakers Bill Cimino Senior Vice President, Investor Relations John Asbury President & Chief Executive Officer of Atlantic Union Bankshares Corporation Maria Tedesco Atlantic Union Bank President & Chief Operating Officer Kelly Dakin Digital Strategy & Enterprise Experience Group Executi
Slide 3: Forward Looking Statements
3 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 4: Additional Information: Non-GAAP Financial Measures
4 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 5: John Asbury, President & Chief Executive Officer
5 John Asbury Atlantic Union Bankshares Corporation President & Chief Executive Officer 5
Slide 6: Our Actions Match Our Words
6 Our Actions Match Our Words “ While evolving, maturing and responding to our changing environment, we are delivering on what we said we would do. I think of this as an agile form of consistency ..” - John Asbury, CEO
Slide 7: A Transformation Story: From Virginia Community Bank to Virginia's Bank and More
7 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 8: Largest Regional Banking Company Headquartered in Virginia
8 Largest Regional Banking Company Headquartered in Virginia Our Company Today Soundness | Profitability | Growth Data as of 3/31/2022, market capitalization as of 4/20/2022 1 Regional bank defined as having less than $100 billion in assets; rank determined by asset size; data per S&P Global Market
Slide 9: Our Value Proposition
9 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 10: Our Core Values
10 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 11: A Balanced Approach to all Stakeholders
11 A Balanced Approach to all Stakeholders Customers Satisfied customers think of us first for their banking needs, refer others to us, and reward us with their ongoing loyalty. Communities Investing in our communities and the local economy helps ensure the vitality of our market and our customers.
Slide 12: Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three
12 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 13: Virginia Is Among the Most Attractive Markets in USA
13 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 Ranked Virginia 8 th for Opportunity • 11 th
Slide 14: Strong Presence in Prime Virginia Markets
14 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 15: Virginia Presents Opportunity in Fast-Growing, Affluent Markets
15 $149 $141 $138 $137 $135 $130 $129 $129 $126 $125 Loudoun, VA Falls Church, VA Santa Clara, CA San Mateo, CA Marin, CA Somerset, NJ Arlington, VA Fairfax, VA Howard, MD Douglas, CO Virginia Presents Opportunity in Fast - Growing, Affluent Markets Source: S&P Global Market Intelligence Boxes denot
Slide 16: Strategic Journey
16 Strategic Journey Looking Forward • Top - tier performance • Commercial - centric • Consumer segmented and optimized • Diversified revenue • Human advocates and digitally enabled • Scalable and future - ready 16 2019 2H 2018 1H 2019 1H 2021 2019 2020 Efficient Move Above $10B Xenith Bankshares Ac
Slide 17: We have three Strategic Priorities
17 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 18: Strategic Imperatives have Evolved Alongside our Transformation
18 • 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 19: Well-Positioned in the Marketplace
19 Well - Positioned in the Marketplace FinTechs / NeoBanks Community Banks National Banks Positioned at the confluence of human interaction and digital technology
Slide 20: Looking Ahead, We Are Positioned Well
20 Looking Ahead, We Are Positioned Well We have the core components of what we need to propel our business forward A Culture of Excellence — Courageous enough to do what must be done to succeed, Caring for each other and our customers, and Committed to being the best we can be while delivering top
Slide 21: We Are Well Positioned for the Current Environment
21 We Are Well Positioned for the Current Environment and Optimistic About Our Future Top Tier Performance Pristine Credit Expense Management Actions Asset Sensitivity Growth Footing
Slide 22: Maria Tedesco, President & Chief Operating Officer
22 Maria Tedesco Atlantic Union Bank President & Chief Operating Officer
Slide 23: Operating Group Organizational Structure
23 Customer Segment Business lines are partnering together to surround customers with holistic banking solutions. Support functions are enabling more robust, segment - specific value propositions. Operating Group Organizational Structure
Slide 24: A lot has happened since our last Investor Day
24 A lot has happened since our last Investor Day • Diversified our Revenue Streams and Market Segments through product offerings in Wholesale, Consumer and Wealth • Strengthened our Digital Capabilities and Assets across all businesses with enhanced digital servicing and origination platforms • Cap
Slide 25: Shifting to a Segment Approach
25 Shifting to a Segment Approach 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 competitors. Simplified processes & technologies to improve productivity Analytics to drive
Slide 26: Recognized for Outstanding Customer Service
26 26 The Market has Recognized Us for Outstanding Customer Service 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. Also Recently Recognized By: AUB sees year over year
Slide 27: Excellence in Business Banking Award
27 27 Excellence in Business Banking Award Source: SBA, PPP first draw data, as of 6/30/20. The SBA did not provide this detail for subsequent rounds. Source: Greenwich Annual Survey, 2020 PPP1 11,300 loans for $1.76b PPP2 5,700 loans for $555m Total 17,000 loans for $2.3b • #1 in 22 VA counties • #
Slide 28: Changing the Way We Operate
28 Changing the Way We Operate Revenue Diversification Customer Experience Talent Management Brand Technology Modern Delivery System Building and optimizing new products and expertise, then expanding geographies. Going above and beyond to meet and exceed client expectations and drive satisfaction. H
Slide 29: The Technology Landscape
29 The Technology Landscape Source: CBA Live 2022 29 The Challenge The Opportunity • FinTech’s are changing the banking industry, but traditional core service providers are falling behind and are difficult to integrate with • Consumer and small/medium sized business client expectations for simplicit
Slide 30: Modernizing our technology stack
30 Modernizing our technology stack, and our approach to delivering technology, will be essential to enabling our continued success Modernize Core Banking System Plug & Play Ecosystem Innovate with FinTechs Align on and operationalize a core technology stack that enables seamless integration of part
Slide 31: Traditional Core Infrastructures are Becoming Outdated
31 Traditional Core Infrastructures are Becoming Outdated • Batch and nightly processing • Long lead - times for development • Limited integration capabilities • Limited product features • Limited customization, restricting innovation • Increasingly difficult to attract talent maintaining legacy sys
Slide 32: New FinTech solutions are being introduced every day
32 New FinTech solutions are being introduced every day, reinventing banking with stronger customer experiences and speed. 32
Slide 33: Our FinTech partnerships
33 Our FinTech partnerships are helping us sort through the sea of options Market Intelligence and Insight Connectivity to the FinTech Ecosystem Curated Introductions to best - in - class FinTechs Extensive Dialogue and Interaction Peer Networking
Slide 34: Leveraging operating momentum to accelerate growth
34 Leveraging operating momentum to accelerate growth One Team! We have great leaders in place for each area of the business, and their partnership is strong. The Operating Group will function as one, cohesive team that will accomplish more together than they could otherwise do individually. We’ve m
Slide 35: Kelly Dakin, Digital Strategy & Enterprise Experience
35 Kelly Dakin Digital Strategy & Enterprise Experience Group Executive
Slide 36: Digital Strategy Overview
36 Digital Strategy Overview Accountable for the oversight, management and agility of the customer service oriented digital platforms, ensuring frictionless customer and Teammate experiences. The Digital Teams are aligned to each of the lines of business objectives and poised to drive future digital
Slide 37: Digital Strategy & Enterprise Experience Evolution
37 Digital Strategy & Enterprise Experience Evolution Maturing Digital Strategy against all lines of business with platform accountability; complaint management, transaction disputes and Insights & Action represents enterprise - wide support of initiatives across digital and enterprise experience. 8
Slide 38: Our Digital Strategic Priorities
38 Align on and operationalize a core technology stack that enables seamless integration of partner technologies so transformative industry change can be effective. Our Digital Strategic Priorities Achieve & Sustain Top Tier Financial Performance Build digital experiences that proactively integrate
Slide 39: Define Our Long-Term Technology Stack
39 Implement Quick Fixes & Start Foundational Change Enhance Capabilities & Integrate at Enterprise Level Build to Scale & Expand Capabilities Define Our Long - Term Technology Stack Designing for seamless integration of partner technologies *Examples provided are not all - inclusive, however, are d
Slide 40: Accelerate Product Development and Speed to Market
40 Accelerate Product Development and Speed to Market Digital Strategy’s scrum team support model positions Atlantic Union Bank to iteratively develop and deploy new products and product features with agility, supporting speed - to - market and the realization of product benefits iteratively as prod
Slide 41: Curate New, Innovative Digital Capabilities
41 Curate New, Innovative Digital Capabilities Current Fintech partnerships have driven efficiencies and improved Teammate and customer experiences. Sandbox banking platform helps customers build, integrate and manage APIs. Reggora is a modern appraisal technology solution that simplifies and shorte
Slide 42: Dean Hackemer, Home Loans Group Executive
42 Dean Hackemer Home Loans Group Executive
Slide 43: Home Loans at a Glance
43 Home Loans at a Glance 1 As of 3/31/22, originations and income are for FY 2021 Annual Growth Targets The priority is to generate fee income by originating loans for sale in the secondary market (AUB may retain 30% of originated loans for investment) Where gaps exist in available for sale product
Slide 44: Home Loans Strategic Progression
44 Home Loans Strategic Progression 2020 1H 2019 1H 2019 2H 2021 2H 2020 2H 2021 1H Access National Merger The AUB Home Loans team was added from the Access merger. Digital Upgrades Completed the implementation of Built to manage construction loans and laid the foundation to implement Blend for mort
Slide 45: Home Loans Operating Model
45 Home Loans Operating Model The Home Loans team has a long history of making money both in low rate/high volume markets and high rate/low volume markets. During those periods, we leverage overtime and production bonuses to create throughput without expense of recruiting, hiring and training of new
Slide 46: Become the Preferred Home Loan Lending Source for our Bank Clients
46 Become the Preferred Home Loan Lending Source for our Bank Clients Focusing on purchase money business isn’t new to us in 2022, it's what we’ve done for 20 years. Our internal turn - time on underwriting and processing purchase business has always been our top priority, even throughout the refina
Slide 47: Approach to Home Loans Technology and Operations
47 Approach to Home Loans Technology and Operations Customer Experience Operations Optimization Two track investment strategy to advance technology, both equally important Partner with our internal digital team to help facilitate this evolution through an agile process where the business identifies
Slide 48: Journey to a Digital Mortgage
48 Journey to a Digital Mortgage Being in a position to deliver a full digital mortgage to our customers took years and, like most of what we do, was iterative in capability March 2020 2012 January 2021 Summer 2020 October 2020 Adopted eSign For initial disclosures. UX & Digital Mortgage Capabilitie
Slide 49: Future Home Loans Opportunities
49 Operations Optimization — Automation of service ordering through Robotic Process Automation (RPA), enhanced appraisal processing/delivery with Reggora , automation of disclosure generation/delivery (huge time saver ~1 FTE/100 funded loans), optical character recognition solutions (OCR) to analyze
Slide 50: David Zimmerman, Wealth Management Group Executive
50 David Zimmerman Wealth Management Group Executive
Slide 51: Wealth Management at a Glance
51 Wealth Management at a Glance 1 As of 3/31/22, income for FY 2021 Annual Growth Targets AUM Upper - Single Digit Fee Income Double Digit Expenses Low Single Digit Business Overview Snapshot 1 Fiduciary Services & Asset Management Atlantic Union Financial Consultants Private Banking Registered Inv
Slide 52: Wealth Management Progress
52 Wealth Management Progress Modified strategic plan in 2020 under new management Systems transitions from acquired businesses complete. SS&C BlackDiamond and CRM in place Bank Branded Alignment Operating as one legal entity with back office and middle office consolidations underway Credit processe
Slide 53: Wealth Management Strategic Progression
53 Wealth Management Strategic Progression Business Consolidation & Tech Complete combination of Trust businesses Complete technology integration for Trust Complete integration of Outfitters (RIA) Develop plan for BlackDiamond installation New Wealth Management Leadership Enhancement for Client Expe
Slide 54: Wealth Management Strategic Priorities
54 Wealth Management Strategic Priorities Grow Wealth’s client base of existing Bank clients through targeted marketing, joint partner calls and referral management to add value and drive introductions Deliver a Better Client Experience Advisors must adjust to client expectations by teaming to provi
Slide 55: Mine the Franchise to Drive Wealth Management Organic Growth
55 • Regional client reviews • Joint appointments • Joint product – Foreign Exchange (FX) Mine the Franchise to Drive Wealth Management Organic Growth Wholesale Banking • Project to maximize affluent clients with $500,000 – $1,000,000 in deposits • Financial Consultant territory optimization • Proje
Slide 56: Aim to Deliver A Better Client Experience
56 Aim to Deliver A Better Client Experience Interpersonal skills that ensure the client is both heard and understood Establish Relationship Values, concerns, risk tolerance, life needs and priorities must be clearly identified Understanding Client Clarify profile and motivations to move through pos
Slide 57: Wealth Management Digital Transformation – Black Diamond
57 Wealth Management Digital Transformation – Black Diamond • Leverage a new extensive wealth management platform to improve the overall client experience and advisor interactions. • Addition of a new web based client portal with mobile capability. • Account aggregation for clients to see their full
Slide 58: Shawn O'Brien, Consumer & Business Banking Group Executive
58 Shawn O’Brien Consumer & Business Banking Group Executive
Slide 59: Consumer and Small Business Banking at a Glance
59 Consumer and Small Business Banking at a Glance 1 As of 3/31/22 Consumer Banking Small Business Revenue focus up to $1 million 19 designated branches $100,000 lending limit 3,000 new clients from PPP Universal Bankers “Crown Jewel” deposit base Mass Affluent Focus • Income Producing Assets betwee
Slide 60: Business Banking at a Glance
60 Business Banking at a Glance 1 As of 3/31/22 Business Business Revenue focus $1 to $5 million 45 relationship managers Credit exposure up to $3 million New business line focus Snapshot 1 Deposits $590 million Loans $805 million Clients 5,000+ Annual Growth Targets Loans Mid - Single Digit Deposit
Slide 61: Strong Growth and Improving Trends
61 • DDA Growth since January 2020: • Accounts: 3.9% • Balances: 53% Strong Growth and Improving Trends Consumer Business Banking Consumer Lending Small Business Drivers: Solutions Banking Online Origination Project Sundown Marketing Promotions PPP brand building JD Power • DDA Growth si
Slide 62: Consumer Lending at a Glance
62 Consumer Lending at a Glance 1 As of 3/31/22, income for FY 2021 $1,148 $1,132 $1,114 $1,100 $1,089 $1,081 $1,077 $1,072 $1,072 $1,082 $1,097 $1,111 $1,116 $1,130 $1,151 $1,015 $1,055 $1,095 $1,135 $1,175 Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec
Slide 63: Consumer and Business Banking Strategic Progression
63 Consumer and Business Banking Strategic Progression Looking Forward • Maintain a Strong Foundation of Core Deposits • Continue to Grow and Diversify the Consumer Lending Portfolio • Prioritize High Opportunity Customer Segments and Solutions • Reimagine the Customer Journey • Optimize Delivery Ch
Slide 64: Optimizing as We Scale
64 Optimizing as We Scale Source: SNL Financial Note: Includes all peers listed in the DEF 14A filed 3/22/22; Excludes merger targets Note: Peer data adjusted for pending transactions 1 Calculated as the growth in deposits per branch between 12/31/18 and 3/31/22 2018 Deposits / Branch ($M) Q1 ’22 De
Slide 65: Digital Transformation Delivering A Better Client Experience
65 Digital Transformation Delivering A Better Client Experience 76,830 Scheduled Appointments since 6/2020 2,115 Scheduled Appointments since 10/2020 18,729+ Envelopes since 1/2021 GRO 13,773+ Online Accounts since 1/2021
Slide 66: Progress Against Our Strategic Plan
66 Progress Against Our Strategic Plan Branch staff are focused on well defined growth activities while Regional Operational Managers (ROM) and centralized functions are focused on branch operational safety and soundness and efficiencies Trained and educated staff delivering on our segment strategie
Slide 67: Consumer and Business Banking Strategic Priorities
67 Consumer and Business Banking Strategic Priorities Deliver reliable low - cost funding in support of asset growth, mid - single digit loan growth and controlled expenses Plan to achieve by increasing market share in high opportunity segments while optimizing production and distribution channels S
Slide 68: Maintain a Strong Foundation of Core Deposits
68 Maintain a Strong Foundation of Core Deposits • Proactive measures factoring portfolio performance, competitive environment, liquidity position and wholesale borrowing costs to set rational pricing within the segmentation model for acquisition and the portfolio retention • Leveraging our approach
Slide 69: Grow and Diversify Consumer Lending Portfolio
69 Grow and Diversify Consumer Lending Portfolio Leverage top - tier product and sales process to capture increased market share of home equity and expand indirect auto. GO Digital Dealer Expansion Diversified Lending Review of Credit Card Vendor • Build on existing FinTech partnerships for personal
Slide 70: Expand Business Banking Market Share
70 Business Development Relationship Managers (RMs) are focused on new business development activities. Managing a much smaller portfolio allows them to source and win new business clients with a focus on Commercial & Industrial (C&I) opportunities. Portfolio Relationship Managers manage the large c
Slide 71: Small Business FinTech Partnership
71 FinTech partnership with an anticipated late 2022 launch to transform small business and SBA loan origination, which we believe will create a 5x lift from current run rate • Omni channel, easy - to - use platform for borrowers and bankers • Unsecured and secured loan types • Built - in waterfall
Slide 72: Reimagine the Customer Journey
72 Reimagine the Customer Journey Opportunities to reimagine processes, procedures and tools to create efficiencies and make banking easier for our customers and our Teammates • Use customer complaints and dissatisfaction statistics to drive improvement in very targeted processes and customer journe
Slide 73: Optimize Delivery Channels
73 • Continual consideration of branch optimization and shift from transactional to advisory financial services, investing a portion of savings into our organizational structure and client self - service options • Maximize productivity, efficiency, and scale by improving, standardizing, and pruning
Slide 74: Prioritize High Opportunity Customer Segments and Solutions
74 Prioritize High Opportunity Customer Segments and Solutions Retain a compelling value proposition for the full spectrum of consumer households with a proactive focus on priority client segments and a streamlined product suite to add simplicity and value progression Mass Affluent Fee Revenue Repla
Slide 75: David Ring, Wholesale Banking Group Executive
75 David Ring Wholesale Banking Group Executive
Slide 76: Wholesale Banking at a Glance
76 Wholesale Banking at a Glance 1 As of 3/31/22, fee income for FY 2021 Annual Growth Targets Loans Upper - Single Digit Deposits Upper - Single Digit Fee Income Upper - Single Digit Expenses Low Single Digit Business Overview Snapshot (1) Regional Commercial Banking Specialty Banking Group • Comme
Slide 77: Business Profile: Wholesale Banking
77 Business Profile Wholesale Banking A full - service and client - centric model providing a breadth of products and services across multiple segments of customers and i ndustries. Operations and Admin General Industries Operations and Admin Local banking and C&I clients, primarily small and medium
Slide 78: Wholesale Banking Strategic Progression
78 $1.8MM $2.4MM FYE 2017 YTD 2022 39% 45% 61% 55% $7.4B $10.4B FYE 2017 YTD 2022 CLD/CRE C&I $600M Increase Revenue per Producer Wholesale Banking Strategic Progression Looking Forward • Enhance and Augment Strong Foundation • Maintain Operational Soundness • Embrace Continuous Improvement • Growth
Slide 79: Wholesale Banking Evolution: Ongoing and On Schedule
79 Wholesale Banking Evolution: Ongoing and On Schedule Controlled Expansion into Attractive Markets Local Market Authority and Responsiveness Relationship Managers Supported by a Team of Industry and Product Specialists Staffing and Goals Aligned with Market Characteristics and Opportunity Win Full
Slide 80: Wholesale Banking Diversified Revenue Model
80 Wholesale Banking Diversified Revenue Model At the start of the Wholesale Banking Division’s journey, nearly 100% of revenue was derived from Net Interest Income – a solid foundation to build upon, and vestige of our community banking roots. Capital Markets Growth within the various lending funct
Slide 81: Wholesale Banking Strategic Priorities
81 Wholesale Banking Strategic Priorities Deliver sustainable upper single digit loan and fee income growth through new clients, increased share of wallet and market, expanded products, services, markets, and business lines, while also efficiently managing expense levels by streamlining production.
Slide 82: Build a Durable & Diversified Revenue Stream
82 Build a Durable & Diversified Revenue Stream Build upon core franchise blocks and optimize revenue potential and sustainability through continued expansion of specialty banking products and solutions. Direct origination of Asset Based Loan deals Lead loan syndications; retain lead position with c
Slide 83: Accelerate Growth with Strategic Investments
83 Accelerate Growth with Strategic Investments Accelerate growth through expansion into desirable markets and complementary business lines through acquisition. Lift - out teams in specialized business lines or in markets that require in - fill or offer market expansion opportunities Build specialty
Slide 84: Augment Personal Delivery with Digital Solutions
84 Augment Personal Delivery with Digital Solutions Augment local delivery with digital capabilities, where bankers provide advice, form stickier relationships, and allow technology to enable deeper customer relationships. Use data to measure performance against client expectations Refine processes
Slide 85: Deliver Next Generation Solutions
85 Deliver Next Generation Solutions Foster continuous product development and improvement with an eye on the future of wholesale banking delivery models and evolving client expectations Continually evaluate and integrate new technology (i.e. Fed Now, Real Time Payments, and Blockchain for loans and
Slide 86: Case Study in New Verticals: Atlantic Union Equipment Finance
86 Wholesale Banking Case Study in New Verticals: Atlantic Union Equipment Finance Strategy • New verticals / lines of business are key to asset growth and diversification • Differentiated product offering, improves geographic reach & middle market penetration, while ensuring alignment to core value
Slide 87: Rob Gorman, Chief Financial Officer
87 Rob Gorman Chief Financial Officer
Slide 88: Our Value Proposition
88 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 & acqui
Slide 89: Balance Sheet and Earnings Growth
89 Balance Sheet and Earnings Growth 1 Data as of or for the twelve months ended each respective year, except for 1Q2022 which is as of or for the three months ende d M arch 31, 2022 1 Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconcili
Slide 90: Strong Track Record of Operating Performance
90 Strong Track Record of Operating Performance Data for the twelve months ended each respective year, 1 Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reconciliation of Non - G AAP Disclosures” Operating Return on Assets (ROA) (%) 1 Operati
Slide 91: Strong Capital Position Supports Organic Growth
91 Strong Capital Position Supports Organic Growth *Capital information presented herein is based on estimates and subject to change pending the Company’s filing of its regulatory reports 1 Non - GAAP financial measure; See reconciliation to most directly comparable GAAP measure in "Appendix -- Reco
Slide 92: Capital Management Priorities
92 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 93: AUB's Total Shareholder Return Performance vs. Peer Banks
93 AUB’s Total Shareholder Return Performance vs. Peer Banks 1 As of May 4, 2022 3 Year Relative TSR 1 4.35% 2.85% Proxy Peers AUB 151.68% 249.71% Proxy Peers AUB 10 Year Relative TSR 1 5 Year Relative TSR 1 3.19% 19.63% Proxy Peers AUB 1 Year Relative TSR 1 - 8.37% - 7.56% Proxy Peers AUB 2 Year Re
Slide 94: Top-Tier Financial Targets
94 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 above
Slide 95: Financial Outlook
95 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 96: Final Recap
96 Final Recap
Slide 97: Our strategy has been consistent and is working
97 “ Our strategy has been consistent and is working – but is evolving based on our experience and changes in our environment, customer expectations and behaviors ..” - John Asbury, CEO
Slide 98: We Are Well Positioned for the Current Environment
98 We Are Well Positioned for the Current Environment and Optimistic About Our Future Top Tier Performance Pristine Credit Expense Management Actions Asset Sensitivity Growth Footing
Slide 99: Questions
Questions Atlantic Union Bankshares
Slide 100: Appendix
Appendix _ Atlantic _ Union Bankshares
Slide 101: Reconciliation of Non-GAAP Disclosures
101 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 fina
Slide 102: Reconciliation of Non-GAAP Disclosures
102 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
Slide 103: Reconciliation of Non-GAAP Disclosures
103 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 104: Reconciliation of Non-GAAP Disclosures
104 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