Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union First Market Bankshares — Investor Presentation (August 2011)
29 slides from Atlantic Union Bankshares's investor presentation, Aug 2, 2011
Slide 1: Investor Presentation August 2011
Investor Presentation August 2011 Exhibit 99.1 Investor Presentation August 2011
Slide 2: Agenda
Agenda Overview Financial Performance Near-Term Outlook Q & A
Slide 3: 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 ev
Slide 4: Overview
Overview One of the largest financial services organizations headquartered in Virginia Holding company formed in 1993 – Banking history in some communities goes back more than 100 years Assets of $3.8 Billion Comprehensive financial services provider offering: banking, mortgage, investment, trust an
Slide 5: Investment Highlights
Investment Highlights Uniquely positioned in Virginia – locations, products and services Branch footprint provides a competitive advantage Experienced management team Proven acquirer and integrator Proven financial performance
Slide 6: Virginia Population Expansion
Virginia Population Expansion Source: Weldon Cooper Center, UVA
Slide 7: Union First Market Footprint
Union First Market Footprint Only community bank with a presence in top 7 Virginia banking markets More than 160 ATMs Along major corridors (I-95 & I-64) Stable/Growing markets Economically diverse markets
Slide 8: Diversity Supports Growth in Virginia
Diversity Supports Growth in Virginia Charlottesville University of Virginia & Medical College High tech and professional businesses Virginia Beach - Norfolk Military Shipbuilding Tourism Fredericksburg Defense and security contractors Health care Retail Northern Virginia Nation’s Capital Defense an
Slide 9: Risk Management
Risk Management Risk Mitigation Practices Forward looking Move early to protect Special Assets Committee Weekly meetings Lending Philosophy In-market lender Community bank lending Granular portfolio analysis Full guarantees of commercial credits Control Environment Strong internal policies Active co
Slide 10: Financial Performance
Financial Performance
Slide 11: Strong Balance Sheet
Strong Balance Sheet Assets ($M) Deposits ($M) Loans ($M)
Slide 12: Investment Portfolio
Investment Portfolio % of Portfolio $ in thousands Investment Portfolio Highlights Total Portfolio is $591 MM or 15.3% of assets Did not invest in Pooled TRUPs Data as of Q2 2011 U.S. government and agency securities 1.6% $ 9,313 Obligations of states and political subdivisions 31.7% 187,417 Corpora
Slide 13: Loan Composition by Type
Loan Composition by Type Based on call report filings 6/30/2011 $ % of Portfolio Construction, Land Development, and Other Land $473.6 16.6% Commercial Real Estate $1,086.9 38.0% Residential 1-4 Family $448.3 15.7% Equity Lines of Credit $301.7 10.6% Second Mortgages $62.5 2.2% Commercial $165.6 5.8
Slide 14: Construction & Development
Construction & Development 6/30/2011 $ % Raw Land $105.6 22.3% Land Development / Commercial Lots $125.9 26.6% Construction Loans to Builders $63.8 13.5% Residential Non Builder Lots $42.5 9.0% Residential Builder Lots $54.6 11.5% Commercial Construction $62.9 13.3% Consumer Construction $17.2 3.6%
Slide 15: Commercial Real Estate
Commercial Real Estate 6/30/2011 Owner Occupied Commercial RE $462.8 42.6% Retail $132.6 12.2% Office $126.1 11.6% Office Warehouse $100.7 9.3% Multi Family $103.9 9.6% Hotel, Motel, B&B $58.9 5.4% Special Use $59.8 5.5% Small Mixed Use Building $34.0 3.1% Other $8.0 0.7% $1,086.8 100.0%
Slide 16: Allowance, Charge-offs and NPLs to Loans
2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2006 2007 = Allowance to Loans = Charge-offs to Avg Loans, Net ‘=NPLs/ Loans 2008 2009 2010 1Q 2011 202011 = Adjusted for acquired loans, = Provision for loan losses as % of average loans UNION Union First Market Bankshates
Slide 17: NPAs by Type
NPAs by Type Based on call report filings 6/30/2011 Construction and Land Development $27.4 30.2% Commercial $12.8 14.1% Commercial Non-Owner Occupied $1.7 1.9% Commercial Owner Occupied $6.6 7.3% Consumer $4.6 5.1% OREO $35.6 39.3% OREO / Real Estate Investment $1.5 1.7% Other $0.4 0.4% $90.6 100.0
Slide 18: NPAs by Market
NPAs by Market 6/30/2011 Charlottesville $2.8 3.1% Richmond $30.1 33.2% Fredericksburg $29.2 32.2% Northern Neck $11.1 12.3% Hampton Roads $4.9 5.4% Rappahannock $5.6 6.2% Northern Virginia $1.9 2.1% Other $5.0 5.5% $90.6 100.0% Change 3/11 to 6/11 $ % of Portfolio % of Market Charlottesville -$0.2
Slide 19: Deposit Composition
Deposit Composition As of 6/30/11
Slide 20: Capital Ratios
16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 14.70% 14.68% 1S es 14.91% 14.56% fod 8.22% 8.51% 6.09% 2008 2009 "Total risk-based capital 2010 201101 = Tangible Equity/Tangible Assets 201102 UNION Union First Market Bankshates
Slide 21: First Half Earnings
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000 soqan 525992 $22,922 $19,756 $17,925 a $13,014 $8,360 ] $0 tae I 2004 2005 += 2006 = 2007 = «2008 = 2009S 2010-2011 First Half U Union NION ‘Movliet Hankshaies:
Slide 22: Comparative Results
Comparative Results $ in thousands
Slide 23: Net Interest Margin
Net Interest Margin * Includes acquisition accounting impact
Slide 24: Return on Average Assets and Equity
9.00% 8.00% “lll 2909 3Q09, -4Q09,1Q10 2Q1K0 3QI0 4QIO Qld 2QUL = Returnon average assets (ROA) —_™ Return on average equity (ROE) UNION Union First Market Bankshares
Slide 25: Near-Term Outlook/Priorities
Near-Term Outlook/Priorities
Slide 26: 2011 Outlook
2011 Outlook Economic recovery? Residential real estate exposure will continue to impact asset quality Challenging loan market Competition rational Expansion opportunities Organic Acquisition
Slide 27: 2011 Priorities
2011 Priorities Continued focus on credit quality Deepen existing relationships Increase market share Invest in technology and delivery channels to increase product offerings Rolled out mobile banking which will include text, mobile web and iPhone App (Android coming soon) ATM upgrades coming soon
Slide 28: Summary
Summary Branch footprint is a competitive advantage Product and services that compete effectively with our largest competitors, but we’re able to maintain low costs Experienced management team Proven acquirer and integrator Strong balance sheet Proven financial performance in all market environments
Slide 29: Thank You!
Thank You!
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