Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (November 2016)
21 slides from Atlantic Union Bankshares's investor presentation, Nov 8, 2016
Slide 1: Investor Presentation November/December 2016
Investor Presentation November/December 2016
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain statements in this report 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 about future e
Slide 3: Company Overview
Company Overview • The largest community banking organization headquartered in Virginia • Holding company formed in 1993 – Banking history goes back more than 100 years • 7 whole bank and 16 branch acquisitions since 1993 • Assets of $8.3 Billion • Comprehensive financial services provider offering
Slide 4: Union's Strengths
Union’s Strengths • Unique branch network across Virginia, competitive banking products and services and a loyal customer base • Well positioned for organic growth given commercial activity, household income levels and population growth in its footprint • Strong balance sheet and solid capital base
Slide 5: Attractive market demographics across Virginia regions
Source: SNL Financial – June 2015 Hampton Northern Northern Roads Richmond Virginia Southwest Charlottesville Rappahannock Fredericksburg Neck Total Region Region Region Region Region Region Region Region UBSH Regions Total Households 451,124 391,588 420,049 258,821 220,068 198,251 134,666 26,024 2,
Slide 6: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Richmond • State Capital • Fortune 500 headquarters (6) • Finance and insurance • VCU & VCU Medical Center Fredericksburg • Defense and security contractors • Health care • Retail • Real Estate development Charlottesville • University of Virginia & Medical Colle
Slide 7: Union Bank & Trust
Union Bank & Trust • 115 branches • Reduction of 9 branches (net) year to date. Will close one additional branch in December • Only Virginia-based bank with a statewide footprint • 1,264 FTEs • 59 Commercial Bankers • $6.1 Billion Loans • $6.3 Billion Deposits • 176,000+ Core Consumer Households 7
Slide 8: Strong Presence Across All Major Virginia Markets
MSA Market Share Rank Company Deposits Total Market Deposits Market Share Roanoke Deposits: $378 mm Market Tot.: $7.3 bn Mkt. Share: 5.2% Rank: #6 Branches: 8 Staunton / Harrisonburg Rank: #2 Deposits: $516 mm Market Tot.: $4.0 bn Mkt. Share: 12.9% Branches: 11 Blacksburg Rank: #2 Deposits: $614 mm
Slide 9: Largest Community Bank Headquartered in Virginia
Source: SNL Financial; Deposit data as of 6/30/2016; Pro forma for recent acquisitions Largest Community Bank Headquartered in Virginia Deposit Market Share – Virginia 9 Rank Parent Company Name Number of Branches Total Deposits ($000) Total Deposit Market Share (%) 1 Wells Fargo & Co. (CA) 287 38,6
Slide 10: Union Wealth Management
Union Wealth Management • Trust, Asset Management, Private Banking, Brokerage and Financial Planning services • $2.3B in AUM and AUA, the majority of which is managed assets • $2.8 million fiduciary and asset management fees generated in 3Q16 • Organic and Acquisitive growth opportunities • Expand s
Slide 11: Union Mortgage Group
Union Mortgage Group • 22 offices: 20 in Virginia, 1 each in Maryland and North Carolina • 111 FTEs – 44 loan officers • $156.7 million of originations 3Q16 (34% refinance) • $785,000 net income in 3Q16 • Up from $539,000 in 2Q • Opportunities: • Salesforce expansion in growth markets • Improved pip
Slide 12: 3Q 2016 Highlights
3Q 2016 Highlights • Net Income was $20.4 million; earnings per share of $0.47 – up ~$2.2 million or 7 cents from 3Q 2015 • Loan growth was 14% annualized in the quarter • Deposit balances grew 10.7% annualized in the quarter • Asset Quality remained strong as nonperforming assets declined $11.8 mil
Slide 13: Balance Sheet Trends
Balance Sheet Trends 13 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 1Q 2016 2Q 2016 3Q 2016 $2,967 $3,039 $5,346 $5,671 $5,781 $5,941 $6,149 Loans ($M) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 20
Slide 14: Capital Ratios, Dividends and Repurchases
Repurchased 1.1 million shares in 2012 Capital Ratios 14 • Since 2011, increased quarterly dividend from $0.07/share to $0.20/share; • Increased quarterly dividend to $0.20 starting in November 2016 • Repurchased 5.8 million shares since 2012 • In 2016, repurchased $33.2 million of stock (~1.4 milli
Slide 15: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after-tax acquisition expenses and acquisition accounting impact 15 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2012* 2013* 2014* 2015* 3Q 2016* 0.89% 0.90% 0.91% 0.90% 1.00% Return on Average Assets (ROA) 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 2012* 2
Slide 16: Top-Tier Financial Performance Focus
Top-Tier Financial Performance Focus • Union is committed to achieving top tier financial performance and providing our shareholders with above average returns on their investment • Key financial performance metrics benchmarked against top quartile peers • Top Tier Financial Performance targets: 16
Slide 17: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity Revenue Expense Profit Improvement This path also delivers Return on Assets of above 1.1% 17 8.00 9.00 10.00 11.00 12.00 13.00 14.00 ROTCE - September YTD 2016 ROTCE Target 1.0-1.4% 0.3% 0.3-0.5% 0.1-0.2% 0.1-0.2% 13+% 11.3% Loan Growth With Stabiliz
Slide 18: CEO Succession Plan
CEO Succession Plan • John Asbury became President & CEO of Union Bank & Trust and President of Union Bankshares Corporation on October 1 • Most recently was President and CEO of First National Bank of Santa Fe, a multi-state bank located in the Southwest • Prior to that, he was Senior Executive Vic
Slide 19: 2016 Outlook
2016 Outlook • Stable to growing economy in footprint • Low double digit loan growth • Modest net interest margin compression in 4Q • Continued asset quality improvement – reduction of OREO expenses • Improving ROA, ROTCE and Efficiency Ratio • Closing 1 branch in 4Q and 1 branch in 1Q 2017 19
Slide 20: Value Proposition
Value Proposition • Statewide Virginia branch footprint is a competitive advantage and brings a unique franchise value • Strong balance sheet and capital base • Organic growth and acquisition opportunities • Experienced management team • Committed to top tier financial performance • Shareholder Valu
Slide 21: THANK YOU!
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