Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q3 2021 Earnings Presentation
22 slides from Atlantic Union Bankshares's earnings presentation, Oct 25, 2021
Slide 1: 3rd Quarter FY2021 Earnings Presentation
3rd Quarter FY2021 Earnings Presentation Nasdaq: AUB October 25, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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, projections, predictions, expectations, or beliefs abou
Slide 3: Additional Information
Additional Information 3 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 disclosures have limitations as analytical tools an
Slide 4: Our Company
Our Company 4 Branch Footprint Data as of 9/30/2021, market capitalization as of 10/21/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size Assets Loans Deposits Market Capitalization $19.9 $13.1 $16.6 $2.9 • Largest regional banking company headquar
Slide 5: Our Value Proposition
Shareholder SOLID DIVIDEND YIELD & PAYOUT RATIO WITH EARNINGS UPSIDE Scale LARGEST VA REGIONAL BANK UNIQUE VALUE IN BRANCH FOOTPRINT Strength BALANCE SHEET & CAPITAL LEVELS Opportunity COMMITTED TO TOP-TIER PERFORMANCE Our Value Proposition 5 Growth ORGANIC & ACQUISITION OPPORTUNITIES
Slide 6: Banking Differently
Banking Differently 6 Volume and approval rate of retail deposit accounts and loan applications started online are increasing Origination by channel for consumer products and deposit transactions by channel are from January 2021 to September 2021 Digital logins 23% Zelle users 71% Zelle dollar volum
Slide 7: Atlantic Union's Strategic Priorities
Atlantic Union’s Strategic Priorities 7 • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time • Grow fee-based products and services Diversify Loan Portfolio and Revenue Streams • Fund loan growth wit
Slide 8: Q3 2021 Financial Performance At-a-Glance
Q3 2021 Financial Performance At-a-Glance 8 For non-GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non-GAAP Disclosures” Note: all tables presented dollars in thousands, expect per share amounts • Net income available to common
Slide 9: Q3 Allowance For Credit Loss (ACL) and Provision for Credit Losses
Q3 Allowance For Credit Loss (ACL) and Provision for Credit Losses 9 Q3 Macroeconomic Forecast Q3 Additional Considerations Moody’s September Baseline Forecast • US GDP averages 6.0% growth in 2021 and 4.3% in 2022. The unemployment rate averages 5.5% in 2021 and 3.6% in 2022. • Virginia’s unemploym
Slide 10: Q3 2021 Net Interest Margin
10 Q3 2021 Net Interest Margin Market Rates 3Q2021 2Q2021 EOP Avg EOP Avg Fed funds 0.25% 0.25% 0.25% 0.25% Prime 3.25% 3.25% 3.25% 3.25% 1-month Libor 0.08% 0.09% 0.10% 0.10% 2-year Treasury 0.28% 0.22% 0.25% 0.17% 10 - year Treasury 1.49% 1.32% 1.47% 1.58% Margin Overview 3Q2021 2Q2021 Net interes
Slide 11: Q3 2021 Noninterest Income and Noninterest Expense
11 Noninterest income increased $1.5 million from the prior quarter to $30.0 million from $28.5 million due to: • The recapture of $1.1 million of unrealized SBIC fund investment losses recorded in the second quarter in other operating income; • An increase of approximately $591,000 in deposit and o
Slide 12: Q3 2021 Loan and Deposit Growth
12 Q3 2021 Loan and Deposit Growth For non-GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non-GAAP Disclosures” • At September 30, 2021, loans held for investment totaled $13.1 billion, a decline of $558 million from the prior q
Slide 13: Strong Capital Position at September 30, 2021
Strong Capital Position at September 30, 2021 13 Capital Ratio Regulatory Well Capitalized Atlantic Union Bankshares* Atlantic Union Bank* Common Equity Tier 1 Ratio (CET1) 7.0% 10.4% 13.3% Tier 1 Capital Ratio 8.5% 11.5% 13.3% Total Risk Based Capital Ratio 10.5% 13.8% 13.7% Leverage Ratio 5.0% 9.0
Slide 14: Post-Pandemic Financial Targets
Post-Pandemic Financial Targets 14 ROTCE ROA Efficiency Ratio (FTE) 1.1% - 1.3% 13% - 15% < 53% Atlantic Union is committed to achieving top tier financial performance and providing our shareholders with above average returns on their investment regardless of the operating environment Key financial
Slide 15: Appendix
Appendix h Atlantic 4 Union Bankshares
Slide 16: Disclosures
Reconciliation of Non-GAAP Disclosures 16 Operating Earnings Per Share The Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted, or pre-tax pre-provision basis. These non-GAAP financial measures are supplements to GAAP, which is used to prepare th
Slide 17: Disclosures
Reconciliation of Non-GAAP Disclosures 17 Operating Earnings Per Share Adjusted operating measures exclude the gains or losses related to balance sheet repositioning (principally composed of gains and losses on debt extinguishment) and gains or losses on sale of securities. The Company believes thes
Slide 18: Disclosures
Reconciliation of Non-GAAP Disclosures 18 Operating Earnings Per Share Net interest income (FTE) and total adjusted revenue (FTE), which are used in computing net interest margin (FTE) and adjusted operating efficiency ratio (FTE), respectively, provide valuable additional insight into the net inter
Slide 19: Disclosures
Reconciliation of Non-GAAP Disclosures 19 Tangible assets and tangible common equity are used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible assets, tangible common equity and the related ratios are meaningful measures of capital adequacy be
Slide 20: Disclosures
Reconciliation of Non-GAAP Disclosures 20 Operating Earnings Per Share The Company believes that ROTCE is a meaningful supplement to GAAP financial measures and useful to investors because it measures the performance of a business consistently across time without regard to whether components of the
Slide 21: Disclosures
Reconciliation of Non-GAAP Disclosures 21 Operating Earnings Per Share Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the CECL methodology, income tax expense, gains or losses related to balance sheet re
Slide 22: Disclosures
Reconciliation of Non-GAAP Disclosures 22 ($ IN THOUSANDS) Operating Earnings Per Share PPP adjustment impact excludes the SBA guaranteed loans funded during 2020 and 2021. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it pro
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