Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Shareholder Meeting (May 2024)
30 slides from Atlantic Union Bankshares's shareholder meeting presentation, May 7, 2024
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting NYSE: AUB May 7, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and statements by our management 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 entit
Slide 3: Additional Information
Additional Information Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other This presentation does not constitute an offer to sell or a solicitation of an offer to buy than in accordance with generally accepted acco
Slide 4: John Asbury
John Asbury Chief Executive Officer 4 4
Slide 5: Our Company | Pro Forma Combined Basis
Our Company | Pro Forma Combined Basis Soundness | Profitability | Growth Highlights ($bn) Branch/Office Footprint • Statewide Virginia footprint of 122 $ 24.5* $ 18.2* branches in all major markets Assets Loans • #1 regional bank1 deposit market share in Virginia • Strong balance sheet and capital
Slide 6: Our Shareholder Value Proposition
Leading Regional Presence Dense, uniquely valuable presence across attractive markets Our Shareholder Value Proposition Attractive Financial Profile Financial Strength Solid dividend yield Solid balance sheet & payout ratio with & capital levels earnings upside Peer-Leading Strong Growth Performance
Slide 7: Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three
Virginia’s Bank and Sizeable Opportunity to Take Market Share from the Big Three Virginia: All Banks Growth Virginia: Banks Headquartered in VA Franchise Opportunity Strength Deposits Rank Institution Deposits ($mm) Market Share (%) Branches Rank Institution Market Share (%) Branches ($mm) 1 Truist
Slide 8: Q1 2024 and FY 2023 Highlights
Q1 2024 and FY 2023 Highlights Loan and Deposit Growth Focus on Smooth Integration Positioning for Long Term • 5.6% annualized loan growth in Q1 2024 • Core Systems conversion planned for • In 2023, restructured the Company’s from Q4 2023 and 8.7% from Q1 2023 late May 2024 securities portfolio by ~
Slide 9: Our Core Values
Caring Courageous Committed Working together toward Driven to help our clients, Our Core Values Speaking openly, honestly and common goals, acting with accepting our challenges and Teammates and company kindness, respect and a mistakes as opportunities to succeed, doing what is right and genuine con
Slide 10: Authentically Human - Fostering a People-First Culture
Authentically Human - Fostering a People-First Culture Investment in our Teammates = Investment in our Customers = A Better Business Outcome We are a high performing company committed to client success in all we do. We believe we deliver a better banking experience by being authentically human and d
Slide 11: We are focused on three Strategic Priorities
We are focused on three Strategic Priorities Organic Inorganic Deliver Organic Growth Innovate and Transform Strategic Investments • Overweighting opportunities in Wholesale • Pressing the relationship model advantage • Leverage FinTech partnerships, strategic partner equity Banking Group where bank
Slide 12: Maria Tedesco
Maria Tedesco President and Chief Operating Officer 12 12
Slide 13: Execution on our strategic priorities will create a flywheel effect
Execution on our strategic priorities will create a flywheel effect 1 Strong organic growth and effective cost 2 Top-tier financial performance will position us to be an management will help us acquirer of quality banks for achieve our top-tier Strategic step-change growth. financial performance. Or
Slide 14: Operating Group Strategic Initiatives to Achieve Bank Priorities
Operating Group Strategic Initiatives to Achieve Bank Priorities Drive disproportionate growth through Wholesale Banking and Business Banking while optimizing and segmenting Consumer Banking Maintain a strong core funding base, growing fee revenues and exhibiting discipline in management of credit,
Slide 15: How we plan to change the way we operate
How we plan to change the way we operate Atlantic Union Bank Transformation Agenda FROM Revenue Customer Talent Modern Delivery Diversification Experience Management Brand Technology System Building and optimizing Going above and Hiring exceptional senior A strong mass market Tried and true Filling
Slide 16: We made meaningful progress in 2023
We made meaningful progress in 2023 Atlantic Union Bank 2023 Transformation Agenda Revenue Customer Talent Modern Delivery Diversification Experience Management Brand Technology System • Equipment Finance • Notable Reductions in • Succession plans in • Brand Awareness • 41 new projects and • Renegot
Slide 17: Rob Gorman
Rob Gorman Chief Financial Officer 17 17
Slide 18: 2023 Financial Results
2023 Financial Results Full Year 2023 Financial Highlights Summarized Income Statement Net income available to common shareholders for the year ended December 31, 2023 was $190.0 million or $2.53 per share, a decrease of $32.7 million or $0.44 per share, compared to the prior year, primarily due to
Slide 19: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results First Quarter 2024 Financial Highlights Summarized Income Statement Net income available to common shareholders for the first quarter of 2024 was $46.8 million or $0.62 per share, down $7.1 million or $0.10 per share, compared to the prior quarter, primarily due
Slide 20: Strong Capital Position at March 31, 2024
Strong Capital Position at March 31, 2024 Proforma including AOCI and HTM Reported Regulatory unrealized losses Well Capitalized Atlantic Union Atlantic Atlantic Union Capital Ratio Minimums Bankshares Union Bank Bankshares Atlantic Union Bank Common Equity Tier 1 Ratio (CET1) 6.5% 9.9% 12.5% 7.8% 1
Slide 21: AUB's Total Shareholder Return Performance vs. Peer Banks
AUB’s Total Shareholder Return Performance vs. Peer Banks2 1 Year Relative TSR 1 3 Year Relative TSR 1 7 Year Relative TSR 1 19.0 % Proxy Peers AUB 18.3% 18.6% 7.6% Proxy Peers AUB -7.2% -7.3% Proxy Peers AUB Dividends Paid per Common Share • During 2023, the Company returned ~$91 million to common
Slide 22: 2024 Financial Outlook
2024 Financial Outlook (inclusive of American National beginning April 1st) 1 Full Year 2024 Outlook 1 Notes1 1Key Assumptions • 2024 outlook includes nine months Loans (end of period) ~$18.0 - $18.5B impact of American National in results Deposits (end of period) ~$19.8 - $20.3B • The outlook inclu
Slide 23: Appendix
Appendix d Atlantic Union Bankshares
Slide 24: Balance Sheet Trends (GAAP)
Balance Sheet Trends (GAAP) Loans Deposits Assets ($mm) ($mm) ($mm) 9% CAGR 10% 8% CAGR CAGR $19,865 $24,455 $18,170 $2,587 $3,077 $2,318 $16,611 $16,818 $20,065 $21,166 $20,461 $15,635 $15,723 $15,932 $17,278 $19,628 $21,378 $14,021 $14,449 $15,852 $13,305 $17,563 $13,196 $12,611 2019 2020 2021 202
Slide 25: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 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 a supplement to GAAP, which is used to prepare the Company’s financial statement
Slide 26: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS & FINANCIAL METRICS Adjusted operating measures exclude, as applicable, merger-related costs, FDIC special assessments, For the three months ended For the years ended legal reserves associated with our previously (Dollars in thousand
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EFFICIENCY RATIO The adjusted operating efficiency ratio (FTE) For the three months ended For the years ended excludes, as applicable, the amortization of (Dollars in thousands) 1Q24 4Q23 2023 2022 intangible assets, merger-related costs, FDI
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of March 31, 2024 Atlantic Union Atlantic Union (Dollars in thousands, except per share amounts) Bankshares Bank Tangible assets and tangible common equity are Tangible Assets used in the calculatio
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures All regulatory capital ratios at March 31, 2024 are RISK-BASED CAPITAL RATIOS estimates and subject to change pending the As of March 31, 2024 Company’s filing of its FR Y-9 C. In addition to Atlantic Union Atlantic Union these regulatory capital ratios, the Co
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS Pre-tax pre-provision (“PTPP”) adjusted earnings excludes, as applicable, the provision for credit For the years ended losses, which can fluctuate significantly from period-to-period under the CECL methodology,
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