Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Q1 2025 Earnings Presentation
47 slides from Atlantic Union Bankshares's earnings presentation, Apr 24, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 EARNINGS PRESENTATION NYSE: AUB APRIL 24, 2025
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 regarding our r
Slide 3: Additional Information
ADDITIONAL INFORMATION Non-GAAP Financial Measures No Offer or Solicitation This presentation contains certain financial information determined by methods other than This presentation does not constitute an offer to sell or a solicitation of an offer to buy any in accordance with generally accepted
Slide 4: Pro Forma and Market and Industry Data
PRO FORMA AND MARKET AND INDUSTRY DATA Pro Forma Data Further, neither the pro forma nor the pro forma forward-looking financial data has been prepared in accordance with Article 11 of Regulation S-X, and, therefore, does not reflect any Neither Atlantic Union’s nor Sandy Spring’s independent regist
Slide 5: Our Company Pro Forma Combined Basis
OUR COMPANY Pro Forma Combined Basis Soundness | Profitability | Growth M a ry l a n d BALTIMORE WASHINGTON Largest Regional Bank Headquartered in the Lower Mid-Atlantic FREDERICKSBURG STAUNTON V i rg i n i a HIGHLIGHTS 1 CHARLOTTESVILLE $38 Billion $30 Billion $32 Billion ROANOKE RICHMOND NORFOLK A
Slide 6: Our Shareholder Value Proposition
OUR SHAREHOLDER LEADING REGIONAL PRESENCE Dense, uniquely valuable presence across attractive markets VALUE PROPOSITION ATTRACTIVE FINANCIAL PROFILE FINANCIAL STRENGTH Solid balance sheet & Solid dividend yield capital levels & payout ratio with earnings upside PEER-LEADING STRONG GROWTH PERFORMANCE
Slide 7: AUB Q1 2025 Financial Results
AUB Q1 2025 FINANCIAL RESULTS
Slide 8: Highlights
HIGHLIGHTS LOAN & DEPOSIT GROWTH FINANCIAL RATIOS Average loan growth of approximately 1.3% Q1 2025 adjusted operating return on tangible common annualized for Q1 2025 equity of 13.2%1 Deposit growth of approximately 2.1% annualized Q1 2025 adjusted operating return on assets of 0.90%1 for Q1 2025 w
Slide 9: Q1 2025 Financial Performance At-A-Glance
Reported net income available to common shareholders for the first Q1 2025 FINANCIAL PERFORMANCE AT-A-GLANCE quarter of 2025 was $46.9 million or $0.52 per diluted share, down $7.9 million or $0.08 per diluted share compared to the prior quarter, primarily driven by the net impact of the following i
Slide 10: Q1 2025 Allowance for Credit Losses and Provision
Q1 2025 ALLOWANCE FOR CREDIT LOSSES (ACL) Q1 MACROECONOMIC FORECAST AND PROVISION FOR CREDIT LOSSES MOODY’S MARCH 2025 BASELINE FORECAST: • US GDP expected to average ~1.9% growth in 2025 and ~1.7% in 2026. ALLOWANCE FOR LOAN RESERVE FOR UNFUNDED ALLOWANCE FOR • The national unemployment rate expect
Slide 11: Q1 2025 Net Interest Margin
Q1 2025 NET INTEREST MARGIN MARGIN OVERVIEW MARKET RATES 1Q 2025 4Q 2024 1Q 2025 4Q 2024 Net interest margin (FTE)1 3.45% 3.33% Loan yield 6.01% 6.14% EOP Avg EOP Avg Investment yield 4.07% 3.87% Fed funds 4.50% 4.50% 4.50% 4.82% Earning asset yield 5.68% 5.74% Prime 7.50% 7.50% 7.50% 7.83% Cost of
Slide 12: Q1 2025 Noninterest Income and Noninterest Expense
Q1 2025 NONINTEREST INCOME AND Adjusted operating noninterest income1 decreased $5.9 million to $29.3 million for the quarter ended March 31, 2025 from $35.2 million in the prior quarter NONINTEREST EXPENSE primarily due to: • A $2.7 million decrease in loan-related interest rate swap fees due to lo
Slide 13: Q1 2025 Loan and Deposit Growth
Q1 2025 LOAN AND DEPOSIT GROWTH At March 31, 2025, loans held for investment (“LHFI”) totaled $18.4 billion a decrease of $42.9 million or 0.9% (annualized) from the prior quarter. LOAN GROWTH Average LHFI increased $61.1 million or 1.3% ($ THOUSANDS) 1Q2025 4Q2024 QTD ANNUALIZED GROWTH (annualized)
Slide 14: Strong Capital Position
STRONG CAPITAL POSITION CAPITAL MANAGEMENT STRATEGY ATLANTIC UNION CAPITAL MANAGEMENT At March 31,2025 OBJECTIVES ARE TO: • Maintain designation as a “well capitalized” PRO FORMA INCLUDING AOCI institution. REPORTED & HTM UNREALIZED LOSSES • Ensure capital levels are commensurate with the Company’s
Slide 15: AUB Franchise Perspectives
AUB FRANCHISE PERSPECTIVES Including Sandy Spring franchise footprint
Slide 16: Summary of Atlantic Union's Mid-Atlantic Presence
SUMMARY OF ATLANTIC UNION’S MID-ATLANTIC PRESENCE Pro Forma Combined ATTRACTIVE MARKET PRESENCE 1 MARYLAND $38.4 billion $29.9 billion 22 Pro Forma Assets Pro Forma Loans Pro Forma MSAs of Operation VIRGINIA $31.7 billion 183 #1 Largest Regional Bank Pro Forma Deposits Pro Forma Branches in Mid-Atla
Slide 17: Among the Most Attractive States in USA for Business
AMONG THE MOST ATTRACTIVE Ranked Virginia the Best State for Business for 2024, 2021 and 2020 and 2nd best in 2023 STATES IN USA FOR BUSINESS North Carolina ranked 2nd best in 2024 and best in 2023 Maryland ranked 8th for Technology and Innovation in 2024 MEDIAN HOUSEHOLD INCOME ($) 2024 POPULATION
Slide 18: Among the Most Attractive Markets in USA
AMONG THE MOST ATTRACTIVE MARKETS IN USA LOWEST UNEMPLOYMENT RATES FOR LARGE METRO AREAS February 2025 Within Virginia, Maryland and North Carolina, we # Metro Area February 2025 Rate % # Metro Area Rate % operate in strong markets. 1 Urban Honolulu 2.7 8 Oklahoma City 3.4 2 Nashville Davidson Frank
Slide 19: Economic Updates on Greater Washington D.C. Region
ECONOMIC UPDATES ON GREATER WASHINGTON D.C. REGION GREATER WASHINGTON D.C. REGION HIGHLIGHTS GREATER WASHINGTON D.C. REGION WORKFORCE HIGHLIGHTS Greater Washington D.C. region has been characterized by a steady ability to Washington D.C. MSA benefits from a diverse, highly skilled and educated adapt
Slide 20: Non-Owner Occupied Office CRE Portfolio
NON-OWNER OCCUPIED OFFICE CRE PORTFOLIO Pro Forma Combined Basis At March 31,2025 NON-OWNER OCCUPIED OFFICE GEOGRAPHICALLY DIVERSE NON-OWNER OCCUPIED OFFICE PORTFOLIO PORTFOLIO CREDIT QUALITY ($ MILLIONS) BY MARKET DC METRO SUBMARKET* KEY PORTFOLIO METRICS Carolinas $290 District of Columbia $73 Avg
Slide 21: Multifamily CRE Portfolio
MULTIFAMILY CRE PORTFOLIO Pro Forma Combined Basis At March 31,2025 MULTIFAMILY PORTFOLIO CREDIT GEOGRAPHICALLY DIVERSE MULTIFAMILY PORTFOLIO QUALITY ($ MILLIONS) BY MARKET DC METRO SUBMARKET* KEY PORTFOLIO METRICS Carolinas $603 District of Columbia $282 Avg. Multifamily Loan ($ thousands) $3,291 W
Slide 22: Overview of Government-Related Loan Portfolio Exposures
OVERVIEW OF GOVERNMENT-RELATED LOAN PORTFOLIO EXPOSURES Pro Forma Combined Basis As of March 31,2025 • Government Contracting team has managed through government shutdowns and sequestrations in the KEY METRICS OF GOVERNMENT CONTRACTING PORTFOLIO past. • Focus on national security agency and defense
Slide 23: Sandy Spring Merger Update
SANDY SPRING MERGER UPDATE
Slide 24: Acquisition of Sandy Spring Successfully Closed on April 1, 2025
ACQUISITION OF SANDY SPRING WAS SUCCESSFULLY CLOSED ON APRIL 1, 2025 • Transaction was closed on April 1st ACCELERATION OF TRANSACTION CLOSING • Expeditiously received regulatory and shareholder approvals; closed more than 1 quarter earlier than expected as of the October 2024 announcement date • Fo
Slide 25: Increasing Scale with Sandy Spring
INCREASING SCALE WITH SANDY SPRING TOTAL PRO FORMA ASSETS 1 PRO FORMA LOANS HFI 1 PRO FORMA DEPOSITS 1 ($ BILLIONS) ($ BILLIONS) ($ IN BILLIONS) $38.4 $27.9 / $29.9 $31.7 $13.8 Loans to $24.6 $2.0 be sold $11.2 $9.5 $20.4 $18.5 $24.6 $18.4 $20.5 4Q'24 1Q'25 4Q'24 1Q'25 4Q'24 1Q'25 PRO FORMA WEALTH A
Slide 26: Financially Compelling Transaction Pro Forma Company
FINANCIALLY COMPELLING TRANSACTION Pro Forma Company 1 SHARE HOLDE R V ALUE P ROP OSITION LEADING REGIONAL PRESENCE $11.2 billion 183 #1 Dense, uniquely valuable presence across attractive markets Deposits added in Northern Virginia, Pro Forma Branches Largest Regional Bank in Mid-Atlantic2 Maryland
Slide 27: Update on Key Transaction Metrics
UPDATE ON KEY TRANSACTION METRICS METRIC AT ANNOUNCEMENT 1 AT CLOSE 1 CLOSING DATE By the end of Q3’25 April 1, 2025 CORE SYSTEM CONVERSION TIMING February 2026 October 2025 • Closing occurred earlier than COST SAVINGS 27% 27% anticipated at announcement ONE-TIME MERGER EXPENSES $115 million after-t
Slide 28: Recent Integration Roadmap Updates
Recent Integration Roadmap Updates RECENTLY COMPLETED INTERGRATION MILESTONES KEY UPDATES ON CRE LOAN SALE PROCESS Planning to Sell approximately $2 billion of CRE Loans Closed acquisition of Sandy Spring (4/1) as Previously Announced Sale Perimeter Expected to be Similar to Pre- Settled forward sal
Slide 29: Projected Loan Interest Rate Mark Accretion Conversion
Projected Loan Interest Rate Mark Accretion Conversion KEY OBSERVATIONS AND ASSUMPTIONS PROJECTED PRO FORMA EARNINGS COMPOSITION 1 Core cash earnings represents Loan Non-PCD Credit Mark Accretion2 Large Core Cash majority of overall earnings Loan Interest Rate FMV Adjustment Accretion2 Earnings Loan
Slide 30: CET1 Ratio Waterfall
CET1 Ratio Waterfall AUB Stand Alone as of Q1 2025 Combined Projected AUB/SASR at Q2 2025 0.2% 0.0% 10.1% ~10.0% 10.0% (0.2%) M&A Close Settlement of Forward Sale CRE Loan Sale Q2 2025 Retained Earnings Q4 2024 Q4'24 Net Income Dividend on Common Stock RWA 1Q'25 Q1 2025 Illustrative IllustrativeEsti
Slide 31: 2025 Financial Outlook
2025 FINANCIAL OUTLOOK1 KEY ASSUMPTIONS1 • 2025 outlook includes nine months Inclusive of Sandy Spring beginning April 1st impact of the Sandy Spring acquisition in results FULL YEAR 2025 OUTLOOK1 • Assumes the proposed CRE loan sale closes by June 30, 2025 Loans (end of period) $28.0 – 29.0 billion
Slide 32: Appendix
APPENDIX Q1 2025 7) Atlantic (4 Union Bankshares
Slide 33: Federal Reserve Bank of Richmond Tariff Analysis of 5th District
FEDERAL RESERVE BANK OF RICHMOND TARIFF ANALYSIS OF 5th DISTRICT • As of April 9, tariffs are not expected to have a disproportionate impact on AUB’s markets. FIGURE 4C: AVERAGE EFFECTIVE TARIFF RATE BY COUNTY SCENARIO 2, FIFTH FEDERAL RESERVE DISTRICT • Industries directly impacted by higher tariff
Slide 34: Pro Forma Loan and Deposit Mix at March 31, 2025
PRO FORMA LOAN AND DEPOSIT MIX AT MARCH 31, 2025 PRO FORMA AFTER PROPOSED $2 BILLION LOAN SALE 1 Other Cons. Auto Other Cons.C&D 1 - 4 Resi Auto Other Cons. Auto 1% C&D 1 - 4 Resi LOANS 7% <1% <1% C&D 1 - 4 Resi 2% 7% 8% 1% 0% 10% 13% 8% 1 - 4 Family Cons. 1 - 4 Family Cons. 1 - 4 Family Cons. OO-CR
Slide 35: AUB Commercial Real Estate (CRE) Portfolio
AUB COMMERCIAL REAL ESTATE (“CRE”) PORTFOLIO At March 31,2025 CRE BY CLASS $ IN MILLIONS All Other Total Outstandings % of Portfolio Total Non-Owner Loans Occupied CRE Hotel/Motel B&B $985 5.3% 40.2% 27.5% Industrial/Warehouse $965 5.2% Office $825 4.5% $18.4B Retail $1,121 6.1% Total Self Storage $
Slide 36: AUB Diversified and Granular Loan Portfolio
AUB DIVERSIFIED AND GRANULAR LOAN PORTFOLIO At March 31,2025 TOTAL LOAN PORTFOLIO $18.4 BILLION NON-OWNER OCCUPIED CRE COMPOSITION $5.1 BILLION Auto Consumer Other Residential 1-4 family 1.5% 0.5% C&D 7.1% 6.3% - Revolving 4.2% Self Storage Retail Consumer 1-4 Family 9.6% 22.1% Owner Occupied 7.0% C
Slide 37: Attractive Core Deposit Base – AUB Only
ATTRACTIVE CORE DEPOSIT BASE – AUB ONLY DEPOSIT BASE CHARACTERISTICS DEPOSIT COMPOSITION AT MARCH 31, 2025 — $20.5 BILLION 2.29% Savings Brokered 5% 5% Q1 2025 cost of deposits Jumbo Time Non-Interest Bearing 6% 22% 89% Retail Time 14% core deposits1 48% Money Market Interest Checking 22% 26% transa
Slide 38: Granular Deposit Base - AUB Only
GRANULAR DEPOSIT BASE - AUB ONLY PERIOD END UNINSURED & UNCOLLATERALIZED DEPOSITS CUSTOMER DEPOSIT GRANULARITY AS A PERCENTAGE OF TOTAL DEPOSITS ($ MILLIONS) $5,992 $6,060 $5,551 $5,375 $5,094 29% 29% 30% 27% 27% $100,000 $98,000 $94,000 $19,000 $20,000 $20,000 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q2 202
Slide 39: AUB Liquidity Position
AUB LIQUIDITY POSITION At March 31,2025 ($ M I LLI ON S) Fed Funds Lines $597 Discount Window $2,840 Liquidity TOTAL LIQUIDITY SOURCES OF FHLB Borrowing Capacity Sources Total $8.5 BILLION $2,506 $8.5 ~140% Liquidity Coverage Ratio of Uninsured/Uncollateralized Deposits of $6.1 billion billion Secon
Slide 40: Securities Portfolio – AUB Only
SECURITIES PORTFOLIO – AUB ONLY • Total securities portfolio of $3.3 billion with At March 31,2025 a total unrealized loss of $429.9 million – 78% of total portfolio book value in available-for-sale at an unrealized loss INVESTMENT SECURITIES BALANCES of $381.3 million – 22% of total portfolio book
Slide 41: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES We have provided supplemental performance measures determined by methods other than in accordance with GAAP. These non-GAAP financial measures are a supplement to GAAP, which we use to prepare our financial statements, and should not be considered in isolation
Slide 42: Reconciliation of Non-GAAP Disclosures: Adjusted Operating Earnings
RECONCILIATION OF NON-GAAP DISCLOSURES ADJUSTED OPERATING EARNINGS AND EFFICIENCY RATIO Adjusted operating measures exclude, as (Dollars in thousands, except per share amounts) applicable, merger-related costs, and (loss) gain For the three months ended on sale of securities. The Company believes th
Slide 43: Reconciliation of Non-GAAP Disclosures: Net Interest Margin
RECONCILIATION OF NON-GAAP DISCLOSURES NET INTEREST MARGIN The Company believes net interest (Dollars in thousands) income (FTE), total revenue (FTE), For the three months ended and total adjusted revenue (FTE), March 31, 2025 December 31, 2024 which are used in computing net interest margin (FTE),
Slide 44: Reconciliation of Non-GAAP Disclosures: Tangible Assets and Equity
RECONCILIATION OF NON-GAAP DISCLOSURES TANGIBLE ASSETS, TANGIBLE COMMON EQUITY, AND LEVERAGE RATIO Tangible assets and tangible common equity are (Dollars in thousands, except per share amounts) used in the calculation of certain profitability, As of March 31, 2025 capital, and per share ratios. The
Slide 45: Reconciliation of Non-GAAP Disclosures: Risk-Based Capital Ratios
RECONCILIATION OF NON-GAAP DISCLOSURES RISK-BASED CAPITAL RATIOS All regulatory capital ratios at March 31, 2025 are (Dollars in thousands) estimates and subject to change pending the Company’s filing of its FR Y-9C. In addition to As of March 31, 2025 these regulatory capital ratios, the Company ad
Slide 46: Reconciliation of Non-GAAP Disclosures: Operating Measures
RECONCILIATION OF NON-GAAP DISCLOSURES OPERATING MEASURES Tangible assets and tangible common equity are (Dollars in thousands) used in the calculation of certain profitability, capital, and per share ratios. The Company For the three months ended believes tangible assets, tangible common equity and
Slide 47: Reconciliation of Non-GAAP Disclosures: Pre-Tax Pre-Provision Earnings
RECONCILIATION OF NON-GAAP DISCLOSURES PRE-TAX PRE-PROVISION ADJUSTED OPERATING EARNINGS Pre-tax pre-provision adjusted earnings (Dollars in thousands) excludes, as applicable, the provision for credit losses, which can fluctuate significantly from For the three months ended period-to-period under t
Atlantic Union Bankshares — Q1 2025 Earnings Presentation on 6ix