Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union First Market Bankshares — Investor Presentation (February 2013)
26 slides from Atlantic Union Bankshares's investor presentation, Feb 12, 2013
Slide 1: Investor Presentation February 2013
Exhibit 99.1 ExhibitFirst Union UNION Investor February99.1 Presentation 2013 Market Bankshares
Slide 2: Agenda
Union First UNION Financial Overview 2Near-Term Q&A Performance Outlook Market Bankshares
Slide 3: Forward-Looking Statements
Forward-Looking Union UNION Certain projections, derivatives) Company assurance Actual industry standards 3from time First future statements conditions, or that believes toMarket predictions, such interpretations time results actual as by Statement in that Bankshares “expect,” the and results, or th
Slide 4: Company Overview
Company Union UNION One Assets 4Comprehensive ofFirst of the$4.1 Overview largest Market Billion financial financial Bankshares services services provider organizations offeringheadquartered commercial and in Virginia retail banking, Holdingmortgage, companyinvestment, formed in 1993 trust–and Banki
Slide 5: Union First Market Bankshares Strengths
Union First UNION Excellent footprint 5performance Strong branch Market’s Market in both balance network, Bankshares good Strengths sheet and competitive and bad solid economic banking capital climates base products Conservative and services lender andwith a loyal improving client base asset Well qu
Slide 6: Banking Footprint
Union UNION 90 Added Only Banking 6Along branch community First major 8 market new offices Market corridors branches ranking bank across Footprint Bankshares (I-95, with inVirginia includes 2011 aI-64, presence Closed deposits, I-81)8inStable/Growing branches top economic 7 Virginia in 2012 andbanki
Slide 7: Quality Franchise Deposit Market Share
Quality UNION Company Cullen/Frost Pinnacle Union Dollars Richmond, Scale Franchise Number Deposits of 98654321Rank 10 Totals ’11-’16 Proj. Top franchise Concentrated Banks 7Source: Wells Village Bank SunTrust BB&T Union Franklin First C&F Market Community 5 Institution DMS (1-10) (1-34) First and C
Slide 8: 2012 Highlights
Union UNION Loan in New 3.9% The drove contribution Asset declined Implemented including Repurchased Raised 2012 8$.13 Q4’12 addition cents households Highlights Net balances in Quality aFirst the 58% 2012 toIncome the aquarterly aMarket share in increase of three and closure several trends grew 201
Slide 9: Balance Sheet Performance
Balance Union UNION $2,837 $1,874 Loans $2,967 $4,500,000 $2,552 $3,907 Assets $4,096 $3,500,000 2008 $1,927 $3,175 Deposits 9$3,298 2009 ($M) First ($M) $2,819 $2,587 $3,837 $1,916 $3,070 Sheet ($M) 2010 $4,000,000 $3,000,000 Market Performance 2011 Bankshares 2012 $3,500,000 $2,000,000 $2,500,000
Slide 10: Investment Portfolio
UnionAA UNION 4Q12 Municipal 90% 75% Investment Mortgage-backed Obligations Corporate Federal Other U.S. Total Data 10 government Investment General as Portfolio securities yield securities First of Home Reserve rated and Q4 Securities: Portfolio on Market ofObligations 2012 or Loan other total stat
Slide 11: Loan Portfolio
Loan Union UNION 0.7% Personal, 1.3% Mortgages, 6.3% Commercial, 7.5% Credit, Family, Real 12/31/2012 39.9% Change $% Construction, Land Residential Equity Second Commercial Personal Credit Other Gross Based 11Portfolio of Estate, Portfolio $25.9 Other, $59.9 $18.1 Loans on Cards First Lines 10.4% M
Slide 12: Construction/Land Development Loans
Union UNION 13.6% /Construction, 26.9% Lots, Builder Loans 12/31/2012 14.7% $470.6 Change $% Raw Land Lots Construction Residential Commercial Consumer Other $25.9 Based 12 Commercial Portfolio of $0.4 Land 9.3% Development 5.8% (including to on First 100.0% Lots, 12/11 Builders, call -1.5% loan Con
Slide 13: Commercial Real Estate Portfolio
Union UNION Building, 0.1% 4.7% Commercial 43.4% Office, 8.2% Retail, 12/31/2012 $1,184.4 Change $% Owner RE Retail Office Multi Hotel, Special Small Other $90.2 Based 13Portfolio of$59.9 Family, Family 8.2% $1.3 -$4.9 Mixed $147.9 $5.5 on Motel, First Warehouse, Warehouse $108.9 -$18.4 12.5% Occupi
Slide 14: Deposit Composition
Deposit Union UNION 100k CDs< 16% CDs> 20% 15% 6% 14% 12/31/12 29% $3,297,767 Change Composition Demand NOW Money Savings CDs $$122,662 14% millions in Swing > < Deposits Demand 100k accounts First 100k market 12/11 Composition $207,846 28,689 Deposits 3.9% 100% Market $508,630 $524,110 (42,925) (68
Slide 15: Asset Quality Trends
Asset2009 Union UNION 2.00% 2012 2011 2010 2009 Allowance ALLL 190% 2.50% 2008 Charge-offs Provision NPLs 15 Quality to 170% Adjusted First to 1.80% 2.00% Loans Nonaccrual for 2010 to Market to 150% Loan Loans 1.60% 1.50% Trends Average for 2011 130% Losses Acquired Bankshares (ALLL) 1.40% 1.00% Loa
Slide 16: Nonperforming Assets Portfolio
Nonperforming Union UNION Other, Consumer, Owner 8.4% 12/31/2012 20.6% Commercial, 2.3% Occupied, Non-Owner $26.2 Change $% Construction Development Occupied Commercial Consumer Other -$18.6 Based 16Portfolio of Development, 100.0% $0.4 $0.0 on 1.5% First -41.5% Occupied, 12/11 call -$1.4 $2.7 -$0.1
Slide 17: OREO Portfolio
OREO Union UNION Consumer, Occupied, Owner 17.4% Development, Commercial, Community, 12/31/2012 $32.8 Change $% Construction Development King Occupied Commercial Consumer Real Other $0.5 Based 17Portfolio of 1.5% Estate Carter 100.0% $0.0 on First Occupied, by 12/11 call $3.1 Type 0.0% $2.8 -$0.7 0.
Slide 18: Capital Ratios
Capital Union UNION 2009 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 14.70% 14.51% Total 8.97% 8.91% 8.22% 8.64% Tangible 18 2010 risk-based First Ratios 14.68% 14.57% Equity/Tangible 2011 Market capital 2012 Bankshares Assets
Slide 19: Net Income Trends
Net Income Union UNION $40,000 2004 $25,992 $17,925 19 $35,411 $30,445 $22,922 $8,360 $14,514 $19,756 2005 First $35,000 $24,822 2006 Market Trends 2007 $30,000 Bankshares 2008 $25,000 2009 2010 $20,000 2011$15,000 2012 $10,000 $5,000 $0
Slide 20: ROA, ROE and Efficiency Ratio Trends
ROA,2009 Union UNION 1.00% 0.96% 0.82% 0.44% 0.61% 0.79% Return 9.00% 2008 7.84% 6.70% 7.51% Efficiency 3.61% 4.07% 72.00% FY08 68.19% 68.75% 70.81% 20 65.92% 66.12% FY09 ROE First 0.90% 0.93% 0.86% 0.46% 8.00% 8.70% 6.90% on 71.00% 67.55% Average Equity Ratio 2010 Market and FY10 0.80% 7.00% 8.41%
Slide 21: Core Net Interest Margin
Core Union UNION FY08 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% *3.79% 21Excludes Net FY09 First 3.55% Interest acquisition Market FY10* 4.24% Margin Bankshares FY11* 4.37% accounting 1Q12* 4.28%impact 2Q12* 4.25% 4.23% 3Q12* 4.22% 4Q128
Slide 22: Mortgage Segment
Mortgage UNION $2.5 $1.1 2011 Union Hired 22 million, billion Rob FirstSegment Mortgage Eastep Market inanmortgage increase Group hired asBankshares President 28generated loans oforiginators 58%were ofin Union Net 2012 originated asIncome well Mortgage vs. asof inadditional 2012, Groupa 66% in loan
Slide 23: Top-Tier Financial Performance Focus
Top-Tier UNION Union benchmarked Minimum Several 23 First isinitiatives committed Financial targets Market against were were Performance Bankshares totop achieving set implemented quartile for ROA Focus top peers (>1%), tier that and financial will ROE setresult internal (>10%) performance in increa
Slide 24: 2013 Outlook
2013 Outlook Union UNION Stable Increasing 24 to First growing profitability Marketeconomy Bankshares and contribution in footprint Mid-single from Uniondigit Mortgage loan growth GroupModest Improving margin ROA, compression ROE and Efficiency ContinuedRatio asset quality improvement as commercial
Slide 25: Value Proposition
ValueinProposition Union UNION Branch Best Experienced Successful Proven Attractive 25 First class financial footprint valuation acquirer Market management net interest performance is aBankshares and vs. competitive peer integrator margin team group in all advantage market environments and brings a
Slide 26: Thank You
Union First UNION THANK YOU!Market Bankshares
Union First Market Bankshares — Investor Presentation (February 2013) on 6ix