Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Investor Presentation (February 2021)
31 slides from Atlantic Union Bankshares's investor presentation, Feb 9, 2021
Slide 1: Investor Presentation February - March 2021
Investor Presentation Nasdaq: AUB February - March 2021
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements in this presentation 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, projections, predictions, expectati
Slide 3: Additional Information
Additional Information 3 Non-GAAP Financial Measures This presentation contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP disclosures have limitations as analytical tools an
Slide 4: Our Company
Our Company 4 Branch Footprint Data as of 12/31/2020, market capitalization as of 2/3/2021 1) Regional bank defined as having less than $50 billion in assets; rank determined by asset size 2) After 5 branch closures on February 16, 2021 Assets Loans Deposits Market Capitalization $19.6 $14.0 $15.7 $
Slide 5: Our Markets - Diversity Supports Growth In Virginia
Richmond Our Markets - Diversity Supports Growth In Virginia 5 Source: SNL Financial; excludes branches greater than $5 billion Deposit data as of 6/30/2020; Fredericksburg market defined as Caroline, Fredericksburg City, King George, Spotsylvania and Stafford counties; all other markets per MSA def
Slide 6: Virginia's Bank
Virginia’s Bank 6 Virginia: All Banks Virginia: Banks Headquartered in VA Rank Institution Deposits ($mm) Market Share (%) Branches 1 Truist Financial Corp $48,832 23.8% 436 2 Wells Fargo & Co 33,337 16.2 250 3 Bank of America Corp. 21,769 10.6 121 4 Atlantic Union Bankshares Corp 15,360 7.5 128 5 T
Slide 7: Our Presence in Key Markets
Our Presence in Key Markets 7 Source: S&P Global Market Intelligence Note: Deposit data excludes branches with deposits greater than $5 billion Deposit data as of 6/30/20; pro forma for announced transactions and AUB branch closings (1) Northern Virginia includes only the Virginia branches of the Wa
Slide 8: Among The Most Attractive Markets in USA
Among The Most Attractive Markets in USA 8 Fortune 500 Companies # State # Companies 1 New York 54 2 California 53 3 Texas 50 4 Illinois 37 5 Ohio 27 6 Virginia 22 7 Pennsylvania 22 8 Florida 18 9 Georgia 18 10 New Jersey 17 11 Michigan 17 12 Massachusetts 17 13 Minnesota 16 14 Connecticut 13 15 Ten
Slide 9: Virginia Market Highlights
$149 $141 $138 $137 $135 $130 $130 $129 $126 $125 $0 $40 $80 $120 $160 Loudoun, VA Falls Church, VA Santa Clara, CA San Mateo, CA Marin, CA Somerset, NJ Arlington, VA Fairfax, VA Howard, MD Douglas, CO 6.9% 6.6% 6.0% 5.8% 5.8% 5.7% 5.4% 5.1% 5.0% 4.9% 0.0% 2.5% 5.0% 7.5% 10.0% Loudoun, VA New Kent,
Slide 10: 2021 Operating Environment
2021 Operating Environment 10 Soundness Profitability Growth At December 31,2020 Assets $19.6B Loans $14.0B Deposits $15.7B Managing through COVID- 19 pandemic: • Pivoted to a new remote work and branch operating model • Focused on Teammates, clients, communities and shareholders • SBA Paycheck Prot
Slide 11: COVID-19 Loan Modifications
COVID-19 Loan Modifications 11 • As of January 18, 2021 ~$132 million in loans, or 1% of the total loan portfolio excluding PPP loans, are in some form of a COVID Modification of which 89% of the balances are Commercial loans. • ~37% of the remaining commercial loan modifications as of January 18, 2
Slide 12: COVID-19 Sensitive Loan Segment Details
COVID-19 Sensitive Loan Segment Details 12 Total Portfolio as of December 31, 2020 Remaining Modifications as of January 18, 2021 Count Balance Exposure % of Total Loans Ex PPP Count Balance % of Portfolio Retail Trade 1,145 $ 548,747,439 $ 624,335,325 4.3% 3 $ 1,204,504 0.2% Restaurant 550 $ 213,28
Slide 13: Strong Capital and Liquidity Position at December 31, 2020
Strong Capital and Liquidity Position at December 31, 2020 13 Capital Ratio Regulatory Well Capitalized Atlantic Union Bankshares* Atlantic Union Bank* Common Equity Tier 1 Ratio (CET1) 7.0% 10.3% 12.4% Tier 1 Capital Ratio 8.5% 11.4% 12.4% Total Risk Based Capital Ratio 10.5% 14.0% 13.1% Leverage R
Slide 14: Balance Sheet Trends (GAAP)
$7,693 $8,427 $9,315 $13,766 $17,563 $19,628 2015 2016 2017 2018 2019 2020 $5,964 $6,379 $6,992 $9,971 $13,305 $15,723 2015 2016 2017 2018 2019 2020 $5,671 $6,307 $7,142 $9,716 $12,611 $14,021 2015 2016 2017 2018 2019 2020 Balance Sheet Trends (GAAP) 14 Loans ($MM) Deposits ($MM) Assets ($MM) Data a
Slide 15: Strong Track Record of Performance (GAAP)
Strong Track Record of Performance (GAAP) prior to 2020 COVID-19 Impact 15 Data as of or for the twelve months ended each respective year Return on Assets (ROA) (%) Return on Equity (ROE) (%) Efficiency Ratio (%) Earnings Per Share Available to Common Shareholders ($) $1.49 $1.77 $1.67 $2.22 $2.41 $
Slide 16: Strong Track Record of Performance (Non-GAAP)
$1.46 $1.76 $1.90 $2.70 $2.84 $2.14 2015 2016 2017 2018 2019 2020 Strong Track Record of Performance (Non-GAAP) prior to 2020 COVID-19 Impact 16 Data as of or for the twelve months ended each respective year (1) Non-GAAP financial measure; See reconciliation to most directly comparable GAAP measure
Slide 17: Credit Loss Trends (GAAP)
17 Provision for Credit Losses ($M) Provision for Credit Losses as % of Average Loans (%) Credit Loss Trends (GAAP) Net Charge-offs ($M) Net Charge-offs as % of Average Loans (%) Data as of or for the twelve months ended each respective year Note: The Company adopted of ASU 2016-13, Financial Instru
Slide 18: Credit Loss Trends Excluding Impact of PPP Loans (Non-GAAP)
18 Provision for Credit Losses ($M) Provision for Credit Losses as % of Average Loans (%)(1) Credit Loss Trends Excluding Impact of PPP loans (Non-GAAP) Net Charge-offs ($M) Net Charge-offs as % of Average Loans (%)(1) Data as of or for the twelve months ended each respective year Note: The Company
Slide 19: Q4 Allowance For Credit Loss and Provision for Credit Losses
Q4 Allowance For Credit Loss (ACL) and Provision for Credit Losses 19 Q4 Macroeconomic Forecast Q4 Additional Considerations Moody’s December Forecast • US GDP returns to pre-COVID levels in Q3 2021 and averages 4.1% in 2021 followed by 4.7% in 2022. The unemployment rate averages 6.9% in 2021 and e
Slide 20: Strong Track Record of Pre-tax Pre-provision Performance (Non-GAAP)
20 PTPP Adjusted Operating Earnings per Share Available to Common Shareholders, diluted (EPS) ($)(1) Strong Track Record of Pre-tax pre-provision (PTPP) Performance (Non-GAAP) PTPP Operating Return on Assets (ROA) (%)(1) PTPP Adjusted Operating Earnings Available to Common Shareholders ($)(1) PTPP O
Slide 21: 2021 Operating Environment – Managing through the Pandemic
2021 Operating Environment – Managing through the Pandemic 21 Soundness Profitability Growth During challenging times, it is important to remember our governing philosophy –“Soundness, Profitability, & Growth – in that order of priority” This core philosophy is serving us well as we manage the Com
Slide 22: Appendix
Appendix 7) Atlantic /4 Union Bankshares
Slide 23: Atlantic Union's Long-Term Strategic Priorities
Atlantic Union’s Long-Term Strategic Priorities 23 • Increase Commercial lending growth (Commercial & Industrial + Owner Occupied Real Estate) in order to better balance the total loan portfolio over time • Grow fee-based products and services Diversify Loan Portfolio and Revenue Streams • Fund loan
Slide 24: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio 24 Note: Figures may not total to 100% due to rounding Total Loan Portfolio $ 14.0 billion at December 31, 2020 Non-Owner Occupied CRE Composition - $4.5 Billion Total Portfolio Characteristics Duration Q4 2020 Weighted Average Yield (Tax Equivalent) 1.06 year
Slide 25: Attractive Core Deposit Base
Attractive Core Deposit Base 25 (1) Core deposits defined as total deposits less jumbo time deposits Deposit Base Characteristics Deposit Composition at December 31, 2020 - $15.7 Billion • Q4 2020 Cost of deposits – 30 bps • 96% core deposits (1) • 51% transactional accounts Non-Interest Bearing, 28
Slide 26: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 26 Operating Earnings Per Share The Company has provided supplemental performance measures on a tax-equivalent, tangible, operating, adjusted, or pre-tax pre-provision basis. These non-GAAP financial measures are supplements to GAAP, which are used to prepare t
Slide 27: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 27 Operating Earnings Per Share Adjusted operating measures exclude the after-tax effect of merger and rebranding-related costs unrelated to the Company’s normal operations. In addition, adjusted operating measures now exclude the gains or losses related to bal
Slide 28: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 28 Operating Earnings Per Share Pre-tax pre-provision adjusted earnings excludes the provision for credit losses, which can fluctuate significantly from period-to-period under the recently adopted CECL methodology, merger and rebranding-related costs, income ta
Slide 29: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 29 Operating Earnings Per Share The adjusted operating efficiency ratio (FTE) excludes the amortization of intangible assets, merger and rebranding-related costs and gains or losses related to balance sheet repositioning (principally composed of gains and losse
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 30 Operating Earnings Per Share Tangible common equity is used in the calculation of certain profitability, capital, and per share ratios. The Company believes tangible common equity and the related ratios are meaningful measures of capital adequacy because the
Slide 31: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 31 ($ IN THOUSANDS) Operating Earnings Per Share PPP adjustment impact excludes the SBA guaranteed loans funded during 2020. The Company believes loans held for investment (net of deferred fees and costs), excluding PPP is useful to investors as it provides mor
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