Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q3 2024 Earnings Presentation
33 slides from Atlantic Union Bankshares's earnings presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation NYSE: AUB November – December 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: Our Company
Our Company Soundness | Profitability | Growth Highlights ($bn) Branch/Office Footprint • 129 branches across Virginia, North Carolina and Maryland $ 24.8 $ 18.3 footprint • #1 regional bank1 deposit Assets Loans market share in Virginia • Strong balance sheet and capital levels • Committed to top-t
Slide 5: 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 6: 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 7: Market Opportunity in Maryland and North Carolina
Market Opportunity in Maryland and North Carolina North Carolina: All Banks Growth Maryland: All Banks Growth Opportunity Opportunity Deposits Rank Institution Deposits ($mm) Market Share (%) Branches Rank Institution Market Share (%) Branches ($mm) 1 Truist Financial Corp. $43,459 19.5% 275 1 Bank
Slide 8: Among the Most Attractive Markets in USA
Among the Most Attractive Markets in USA ranked Virginia the Best State for Business for 2024, 2021 and 2020 and 2nd best in 2023 North Carolina ranked 2nd best in 2024 and best in 2023 Household Income ($) 2024 Population (mm) # State HHI ($) # State Pop. (mm) # State Pop. (mm) ranked Virginia the
Slide 9: Q3 2024 Highlights
Q3 2024 Highlights Loan and Deposit Growth Improved Financial Ratios Positioning for Long Term • Loans were relatively flat for the quarter • Adjusted operating return on tangible • Lending pipelines remain healthy common equity of 19.15%1 • Deposit growth of approximately 6% • Focus on performance
Slide 10: Our Core Values
Caring Courageous Committed Working together toward Driven to help our clients, Our Core Values Speaking openly, honestly and common goals, acting with accepting our challenges and Teammates and company kindness, respect and a mistakes as opportunities to succeed, doing what is right and genuine con
Slide 11: We are focused on three Strategic Priorities
We are focused on three Strategic Priorities Organic Inorganic Deliver Organic Growth Innovate and Transform Strategic Investments • Overweighting opportunities in Wholesale • Pressing the relationship model advantage • Leverage FinTech partnerships, strategic partner equity Banking Group where bank
Slide 12: Balance Sheet Trends (GAAP)
Balance Sheet Trends (GAAP) Loans Deposits Assets ($mm) ($mm) ($mm) 8% CAGR 9% CAGR $18,337 $20,305 8% CAGR $24,804 $15,635 $21,166 $20,461 $14,449 $16,611 $16,818 $19,628 $20,065 $14,021 $15,723 $15,932 $13,196 $17,563 $12,611 $13,305 2019 2020 2021 2022 2023 3Q 2024 2019 2020 2021 2022 2023 3Q 202
Slide 13: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) Earnings Per Share Available to Common Shareholders Return on Equity (ROE) ($) (%) $3.26 $2.97 $2.41 $2.53 9.68% 9.51% $1.93 7.89% 8.27% $1.68 6.14% 6.97% 2019 2020 2021 2022 2023 2024 YTD 2019 2020 2021 2022 2023 2024 YTD Return on Assets (ROA) Efficiency R
Slide 14: Strong Track Record of Performance (Non-GAAP)
Strong Track Record of Performance (Non-GAAP) Adjusted Operating Earnings Per Share Available to Common Adjusted Operating Return on Tangible Common Equity Shareholders, diluted ($)(1) (ROTCE) (%)(1) 16.61% 18.07% 17.06% 17.21% $3.53 16.43% $2.84 $2.92 $2.95 12.64% $2.21 $2.12 2019 2020 2021 2022 20
Slide 15: Strong Capital Position at September 30, 2024
Strong Capital Position at September 30, 2024 Capital Management Strategy Atlantic Union capital management objectives are to: • Maintain designation as a “well capitalized” Proforma including AOCI and Reported institution. Regulatory HTM unrealized losses • Ensure capital levels are commensurate We
Slide 16: 2024 Financial Outlook
2024 Financial Outlook1 Full Year 2024 Outlook 1 Notes1 1Key Assumptions • 2024 outlook includes nine Loans (end of period) ~$18.5 - $19.0B months impact of American National in results Deposits (end of period) ~$20.0 - $20.5B • The outlook includes estimates of merger-related purchase ACL to loans:
Slide 17: Appendix
Appendix d Atlantic Union Bankshares
Slide 18: Q3 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses
Q3 2024 Allowance For Credit Losses (ACL) and Provision for Credit Losses Allowance for Loan Reserve for Unfunded Allowance for & Lease Losses (ALLL) Commitments (RUC) Credit Losses Q3 Macroeconomic Forecast 03/31/2024 $136.2MM $15.6MM $151.8MM Ending Balance % of loans (0.86%) (0.10%) (0.96%) Moody
Slide 19: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio Non-Owner Occupied CRE Composition $4.9 billion at Total Loan Portfolio $18.3 billion at September 30, 2024 September 30, 2024 Residential 1-4 family - Auto 1.9% Consumer 0.6% Revolving 4.0% Other 6.8% C&D 8.7% Retail 22.0% Consumer 1-4 Self Storage Family 7.0
Slide 20: Commercial Real Estate ("CRE") portfolio at September 30, 2024
Commercial Real Estate (“CRE”) portfolio at September 30, 2024 All Other Loans 40.2% Total Non-Owner Occupied CRE by class CRE 26.6% $ in millions Total Outstandings % of Portfolio Hotel/Motel B&B $996 5.4% Industrial/Warehouse $820 4.5% Office $876 4.8% Retail $1,075 5.8% Self Storage $435 2.4% Sen
Slide 21: Non-Owner Occupied Office CRE Portfolio at September 30, 2024
Non-Owner Occupied Office CRE Portfolio at September 30, 2024 Medical vs Other Office Medical Office Geographically Diverse Non-Owner Non-Owner Occupied Office 23.7% Occupied Office Portfolio Portfolio Credit Quality By Market ($ millions) Key Portfolio Metrics Carolinas $309 Avg. Office Loan ($ tho
Slide 22: Multifamily CRE Portfolio at September 30, 2024
Multifamily CRE Portfolio at September 30, 2024 Geographically Diverse Multifamily Multifamily Portfolio Credit Portfolio Quality By Market ($ millions) Key Portfolio Metrics Carolinas $403 Avg. Multifamily Loan ($ thousands) $2,667 Central VA $273 Median Multifamily Loan ($ thousands) $649 Western
Slide 23: Attractive Core Deposit Base
Attractive Core Deposit Base Deposit Base Characteristics Deposit Composition at September 30, 2024 — $20.3 billion • Q3 2024 cost of deposits – 2.57% Brokered, 7% Savings, 5% • 88% core deposits(1) Jumbo Time, 5% Non-Interest • 48% transactional accounts Bearing, 22% Retail Time, 14% Interest Check
Slide 24: Granular Deposit Base
Granular Deposit Base Customer Deposit Granularity $100,000 $92,000 $89,000 $19,000 $20,000 $19,000 Q3 2023 Q2 2024 Q3 2024 Retail Avg. Deposits Acct Size Business Avg. Deposits Acct Size Period End Uninsured and Uncollateralized Deposits as a Percentage of Total Deposits ($ in Millions) $5,551 $5,3
Slide 25: Liquidity Position at September 30, 2024
Liquidity Position at September 30, 2024 Total Liquidity Sources of $9.2 billion ~166% liquidity coverage ratio of uninsured/uncollateralized deposits of $5.6 billion ($ in millions) Discount Window Fed Funds Lines $3,951 $597 FHLB Borrowing Capacity Liquidity $2,323 Sources Total $9.2 billion Secon
Slide 26: Securities Portfolio at September 30, 2024
Securities Portfolio at September 30, 2024 • Total securities portfolio of $3.4 billion with a total unrealized loss of $364.7 million Investment Securities Balances • 78% of total portfolio in available-for-sale at (in millions) an unrealized loss of $334.5 million Total AFS (fair value) and HTM (c
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures The Company has provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be consi
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO For the three months ended Adjusted operating measures exclude, as applicable, merger- related costs, a deferred tax asset write-down, and gain (loss) (Dollars in thousands, except per share amounts) 3Q2024 2Q202
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures OPERATING MEASURES Tangible assets and tangible common equity are used in For the three months ended the calculation of certain profitability, capital, and per (Dollars in thousands) 3Q2024 2Q2024 share ratios. The Company believes tangible assets, Return on av
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EARNINGS & FINANCIAL METRICS Adjusted operating measures exclude, as applicable, merger- For the nine related costs, FDIC special assessments, legal reserves months ended For the years ended associated with our previously disclosed settlement
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures ADJUSTED OPERATING EFFICIENCY RATIO The adjusted operating efficiency ratio (FTE) excludes, For the nine as applicable, the amortization of intangible assets, months ended For the years ended December 31, merger-related costs, FDIC special assessments, (Dollars
Slide 32: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO As of September 30, 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 calcul
Slide 33: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures RISK-BASED CAPITAL RATIOS As of September 30, 2024 All regulatory capital ratios at September 30, 2024 Atlantic Union Atlantic Union are estimates and subject to change pending the (Dollars in thousands) Bankshares Bank Company’s filing of its FR Y-9 C. In addi
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