Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (November 2014)
21 slides from Atlantic Union Bankshares's investor presentation, Nov 5, 2014
Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
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 fu
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 • Assets of $7.2 Billion • Comprehensive financial services provider offering commercial and retail banking, mortgage, investment,
Slide 4: Union's Strengths
Union’s Strengths • Unique branch network across Virginia, competitive banking products and services and a loyal client 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: Union First Market Footprint
Union First Market Footprint 5 • Acquisition of StellarOne Corporation resulted in statewide footprint • Only Virginia - based bank with a statewide presence – 131 branches
Slide 6: Branch Franchise
NC DC VA AL CT DE GA IL IN KY MA MD MI MS NJ NY OH RI SC TN WV Branch Franchise 6 Branches FTEs Assets Loans Deposits 131 1,483 $7.2 Billion $5. 2 Billion $5.6 Billion Source: SNL Financial, FDIC and MapInfo Professional as of 6/30/2014 Note: Richmond market total deposits includes non - retail depo
Slide 7: 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 8: Growing Market Share
Growing Market Share 8 Source: SNL Financial - Deposit data as of 6/30/2014 Rank Institution Number of Branches Total Deposits ($000) Market Share (%) 1 Wells Fargo & Co. (CA) 291 31,222,493 18.25% 2 Bank of America Corp. (NC) 153 23,745,941 13.88% 3 BB&T Corp. (NC) 361 21,538,540 12.59% 4 SunTrust
Slide 9: Uniquely Positioned To Grow
Uniquely Positioned To Grow • Acquirer of choice - keep our commitments and deliver results to shareholders • More acquisitions than any other Virginia bank since 1993 • 7 whole bank acquisitions and 5 separate branch transactions (16 branches total) • Unmatched footprint in Virginia – significant b
Slide 10: StellarOne Acquisition Financial Recap
StellarOne Acquisition Financial Recap 10 Projections Assumptions • Net expense savings of 32%, or $28 million pre - tax • 65% phased in by 2014; 100% thereafter • Share repurchases of $65 million planned for 2014 and 2015 with excess capital • One time merger related expenses of approximately $19.5
Slide 11: Balance Sheet Trends
Balance Sheet Trends 11 • First quarter financial results include the first full quarter financial results of StellarOne which was acquired on January 1, 2014 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2011 2012 2013 2014 1Q 2014 2Q 2014 3Q $2,819 $2,967 $3,039 $5,274 $5,23
Slide 12: Capital Ratios
Capital Ratios 12 • Union has authorization to repurchase $65 million worth of stock by the end of 2015 • ~1.8 million shares repurchased leaving approximately $20 million remaining as of October 17, 2014 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2011 2012 2013 2014 1Q 2014 2Q 2014 3
Slide 13: Profitability Ratios and Income Trends
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2010* 2011* 2012 2013* 2014 YTD* $29,129 $30,722 $35,411 $36,538 $50,680 Net Income ($) Profitability Ratio’s and Income Trends 13 * excludes after - tax acquisition expenses; ** 3Q 2014 ROA and ROTCE excludes OREO valuation adjustments 0.00% 0.20%
Slide 14: Loan Portfolio
Loan Portfolio 14 9/30/2014 Change 06/14 to 9/14 $ % of Portfolio % of Type Construction, Land Development, and Other Land $611.7 11.8% - $1.3 0.1% - 0.2% Commercial Real Estate $2,274.3 44.0% - $36.0 - 0.2% - 1.6% Residential 1 - 4 Family $931.7 18.0% - $8.4 0.1% - 0.9% Equity Lines of Credit $514.
Slide 15: NPAs by Type
NPAs by Type 15 9/30/2014 Change 6/14 to 9/14 $ % of Portfolio % of Type Construction and Land Development $5.7 9.7% - $1.3 - 1.2% - 18.7% Commercial $3.2 5.5% - $1.8 - 2.4% - 36.8% Commercial NonOwner Occupied $0.2 0.3% $0.0 0.0% - 18.0% Commercial Owner Occupied $1.3 2.2% $0.8 1.4% 158.0% Consumer
Slide 16: OREO
OREO 16 9/30/2014 Change 6/14 to 9/14 $ % of Portfolio % of Type Construction and Land Development $13.8 36.6% - $1.8 - 4.0% - 11.5% King Carter Golf Community $5.9 15.6% - $2.8 - 7.0% - 32.2% Commercial $0.2 0.5% - $0.6 - 1.6% - 77.8% Commercial Non - Owner Occupied $4.6 12.1% - $0.2 - 0.3% - 4.4%
Slide 17: Core Net Interest Margin
Core Net Interest Margin 17 * Excludes acquisition accounting impact 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2011* 2012* 2013* 2014 1Q* 2014 2Q* 2014 3Q* 4.37% 4.24% 4.18% 3.99% 3.94% 3.92% Best in Class Net Interest Margin
Slide 18: 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 • StellarOne acquisition accelerates achiev
Slide 19: 2014 Outlook
2014 Outlook • Leveraging new franchise • Stable to growing economy in footprint • Loans modestly down from prior year • Modest net interest margin compression • Continued asset quality improvement – reduction of OREO • Improving ROA, ROTCE and Efficiency Ratio • $65 million in share repurchases aut
Slide 20: Value Proposition
Value Proposition • Statewide Branch footprint is a competitive advantage and brings a unique franchise value • Strong balance sheet and capital base • Best in class net interest margin • Experienced management team • Proven acquirer and integrator • Committed to top tier financial performance • Sha
Slide 21: Thank You!
THANK YOU! UNION
Union Bankshares — Investor Presentation (November 2014) on 6ix