Atlantic Union Bankshares Corporation · NYSE:AUB
Atlantic Union Bankshares — Union Bankshares — Investor Presentation (February 2017)
25 slides from Atlantic Union Bankshares's investor presentation, Feb 9, 2017
Slide 1: Investor Presentation February/March 2017
Investor Presentation February/March 2017 Exhibit 99.1
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 future e
Slide 3: Company Snapshot
Company Snapshot 3 Overview Branch Map • Shares listed under “UBSH” on NASDAQ • Headquartered in Richmond, VA • 100+ years of banking history • 113 branches across more than 50 counties and 10 MSAs throughout Virginia - Only Virginia-based bank with a statewide footprint - Largest community banking
Slide 4: Union's Strengths
Union’s Strengths • Unique branch network across Virginia, competitive banking products and services and a loyal customer 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: 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 6: Union Bank & Trust
Union Bank & Trust • 113 branches • Reduction of 10 branches in 2016; one in January 2017 • Only Virginia-based bank with a statewide footprint • 1,294 FTEs • 58 Commercial Bankers • $6.3 Billion Loans • $6.4 Billion Deposits • 177,000+ Core Consumer Households 6
Slide 7: Strong Presence Across All Major Virginia Markets
MSA Market Share Rank Company Deposits Total Market Deposits Market Share Roanoke Deposits: $378 mm Market Tot.: $7.3 bn Mkt. Share: 5.2% Rank: #6 Branches: 8 Staunton / Harrisonburg Rank: #2 Deposits: $516 mm Market Tot.: $4.0 bn Mkt. Share: 12.9% Branches: 11 Blacksburg Rank: #2 Deposits: $614 mm
Slide 8: Largest Community Bank Headquartered in Virginia
Source: SNL Financial; Deposit data as of 6/30/2016; Pro forma for recent acquisitions Largest Community Bank Headquartered in Virginia Deposit Market Share – Virginia 8 Rank Parent Company Name Number of Branches Total Deposits ($000) Total Deposit Market Share (%) 1 Wells Fargo & Co. (CA) 287 38,6
Slide 9: Union Wealth Management
Union Wealth Management • Trust, Asset Management, Private Banking, Brokerage and Financial Planning services • $2.3B in AUM and AUA, the majority of which is managed assets • $10.2 million fiduciary and asset management fees generated in 2016 • Organic and Acquisitive growth opportunities • Expand
Slide 10: Union Mortgage Group
Union Mortgage Group • 22 offices: 20 in Virginia, 1 each in Maryland and North Carolina • 105 FTEs – 41 loan officers • $145.3 million of originations 4Q16; $540 million in originations for 2016 (39% refinance) • $1.8 net income in 2016 • Up from a loss of $202,000 in 2015 • Opportunities: • Salesf
Slide 11: 2016 Financial Highlights
2016 Financial Highlights Fourth Quarter 2016 • Net Income was $20.8 million; earnings per share of $0.48 – up ~$3.0 million, or 16.6%, and up 8 cents, or 20%, from 4Q 2015 • ROA was 99 basis points • ROTCE was 12.05% • Efficiency ratio (FTE) was 62.8% • Loan growth was 10.3% annualized in the quart
Slide 12: Balance Sheet Trends
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 2016 $2,967 $3,039 $5,346 $5,671 $6,307 Loans ($M) Balance Sheet Trends 12 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2012 2013 2014 2015 2016 $3,298 $3,237 $5,639
Slide 13: Capital Management
Repurchased 1.1 million shares in 2012 Capital Management 13 • Since 2011, increased quarterly dividend from $0.07/share to $0.20/share; • Increased quarterly dividend to $0.20 in November 2016 • Repurchased 5.8 million shares since 2012 • In 2016, repurchased $33.2 million of stock (~1.4 million sh
Slide 14: Profitability Ratios and Income Trends
Profitability Ratios and Income Trends * excludes after-tax acquisition expenses and acquisition accounting impact 14 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2012* 2013* 2014* 2015* 2016* 0.89% 0.90% 0.91% 0.90% 0.96% Return on Average Assets (ROA) 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 2012* 2013
Slide 15: Top-Tier Financial Performance
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 • Top Tier Financial Performance targets: 15
Slide 16: Path to Top Tier Return on Tangible Common Equity
Path to Top Tier Return on Tangible Common Equity Revenue Expense This path also delivers Return on Assets of above 1.1% 16 2.00 4.00 6.00 8.00 10.00 12.00 14.00 ROTCE - 2016 ROTCE Target 11.5% 1.0% - 1.3% 0.3% 0.1% - 0.2% 0.3% - 0.5% Loan Growth with Stabilized Spread FF Rate Rise of 25 bps Wealth
Slide 17: 2017 Outlook
2017 Outlook • Stable economy in footprint; expectation of federal budget passing • Upper single digit loan growth • Modest net interest margin compression in 1Q, stabilizing NIM in the second quarter followed by modest NIM expansion during the second half of 2017 • Improving ROA, ROTCE and Efficien
Slide 18: 2017 Priorities
2017 Priorities • Diversification of loan portfolio, deposit base and revenue streams • Low cost core deposit growth to fund loan growth and work towards our loan/deposit ratio target of 95% • Focus on improving the Company’s efficiency ratio • Complete readiness for crossing the $10 billion asset t
Slide 19: Value Proposition
Value Proposition • Scaled statewide Virginia branch footprint is a competitive advantage and brings a unique franchise value • Strong balance sheet and capital levels • Organic growth and acquisition opportunities • Experienced management team • Committed to top tier financial performance • Shareho
Slide 20: Appendix
APPENDIX \ eo)
Slide 21: CEO Succession Plan
CEO Succession Plan • John Asbury became President & CEO of Union Bank & Trust and President of Union Bankshares Corporation on October 1; CEO of Holding company on January 2, 2017 – succeeding Billy Beale. • Asbury was most recently President and CEO of First National Bank of Santa Fe, a multi-stat
Slide 22: Diversified Loan Portfolio
Diversified Loan Portfolio 22 Source: SNL Financial, Company documents Loan Composition at December 31, 2016 – $6.307 Billion Portfolio Characteristics Average loan size $141,000 Weighted average maturity 80 months Yield YTD (Tax Equivalent) 4.44% Composition By Type Composition By Region NOO CRE/To
Slide 23: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio 23 Source: SNL Financial, Company documents CRE Composition at December 31, 2016 - $2.756 Billion Portfolio Characteristics 10 largest loans 7.5% of CRE portfolio 10 largest loans 3.3% of total loan portfolio Weighted average maturity 60 months Weighted average coupo
Slide 24: Construction and Development Loans
Construction and Development Loans 24 Source: Company documents C&D Composition at December 31, 2016 - $751 million Portfolio Characteristics 10 largest loans 18.9% of C&D portfolio 10 largest loans 2.3% of total loan portfolio Weighted average maturity 19 months Weighted average coupon 4.13% C&D Lo
Slide 25: Core Deposit Base
Core Deposit Base 25 (1) Time deposits greater than $100,000 Note: Minimal exposure to CDARS/ICS deposits Source: SNL Financial, Company documents Deposit Composition at December 31, 2016 - $6.379 Billion Deposit Base Characteristics Average cost of interest bearing deposits (YTD) 38 basis points Av
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