Atlantic Union Bankshares : AUB 3Q 2024 Investor Presentation

Published: 2024-11-07 10:01:11 ET AUB

Investor Presentation

NYSE: AUB

November - December 2024

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 on slides entitled "Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three," "Market Opportunity in Maryland and North Carolina," "Q3 2024 Highlights" and "2024 Financial Outlook," statements regarding our expectations with regard to the benefits of the American National Bankshares Inc. ("American National") acquisition, our business, financial and operating results, including our deposit base and funding, the impact of future economic conditions, changes in economic conditions, our asset quality, our customer relationships, and statements that include other projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties, and other factors, some of which cannot be predicted or quantified, that may cause actual results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often characterized by the use of qualified words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," "intend," "will," "may," "view," "opportunity," "potential," "continue," "confidence," or words of similar meaning or other statements concerning opinions or judgment of Atlantic Union Bankshares (the "Company") and our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the effects of or changes in:

Please also refer to such other factors as discussed throughout Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended

December 31, 2023, and related disclosures in other filings, which have been filed with the U.S. Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or our businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements. Forward-looking statements speak only as of the date they are made. We do not intend or assume any obligation to update, revise or clarify any forward-looking statements that may be made from time to time by or on behalf of the Company, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information

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 financial measures are a supplement to GAAP, which is used to prepare the Company's financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company's non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company's performance. The Company's management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods, show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company's underlying performance, or show the potential effects of accumulated other comprehensive income (or AOCI) or unrealized losses on securities on the Company's capital. This presentation also includes certain projections of non-GAAP financial measures. Due to the inherent variability and difficulty associated with making accurate forecasts and projections of information that is excluded from these projected non-GAAP measures, and the fact that some of the excluded information is not currently ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable projected GAAP financial measures without unreasonable effort. Consequently, no disclosure of projected comparable GAAP measures is included, and no reconciliation of forward- looking non-GAAP financial information is included.

Please see "Reconciliation of Non-GAAP Disclosures" at the end of this presentation for a reconciliation to the nearest GAAP financial measure.

No Offer or Solicitation

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Atlantic Union Bankshares Corporation

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank had 129 branches and approximately 150 ATMs located throughout Virginia and in portions of Maryland and North Carolina as of September 30, 2024. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

Our Company

Soundness | Profitability | Growth

Highlights ($bn)

Branch/Office Footprint

$24.8

$18.3

Assets

Loans

$20.3

$3.5

Deposits

Market Capitalization

Largest Regional Banking Company Headquartered in Virginia

*Data as of 9/30/2024, market capitalization as of 10/14/2024

1) Regional bank defined as having less than $100 billion in assets; rank determined by asset size; market share data per S&P Global Market Intelligence as of June 30, 2024

Our Shareholder Value Proposition

Leading Regional Presence

Dense, uniquely valuable presence

across attractive markets

Attractive

Financial

Financial Profile

Strength

Solid dividend yield

Solid balance sheet

& payout ratio with

& capital levels

earnings upside

Peer-Leading

Strong Growth

Performance

Potential

Committed to top-tier

Organic & acquisition

financial performance

opportunities

Virginia's Bank and Sizeable Opportunity to Take Market Share from the Big Three

Virginia: All Banks

Growth

Opportunity

Rank

Institution

Deposits ($mm)

Market Share (%)

Branches

Truist Financial Corp

$48,427

21.3%

260

Wells Fargo & Co

32,756

14.4

185

Bank of America Corp.

25,539

11.3

101

Atlantic Union Bankshares Corp

20,678

9.1

130

TowneBank

10,684

4.7

United Bankshares Inc.

9,057

4.0

PNC Financial Services Group Inc.

5,031

2.2

Capital One Financial Corp.

5,014

2.2

Burke & Herbert

3,797

1.7

Carter Bank & Trust

3,334

1.5

Top 10 Banks

$164,317

72.4%

961

All Institutions in Market

$226,917

100.0%

1,843

Virginia: Banks Headquartered in VA

Franchise

Strength

Rank

Institution

Deposits

Market Share (%)

Branches

($mm)

Atlantic Union Bankshares Corp.

$20,678

24.3%

130

TowneBank

10,684

12.5

Capital One Financial Corp.

5,014

5.9

Burke & Herbert

3,797

4.5

Carter Bank & Trust

3,334

3.9

Primis Financial Corp

3,173

3.7

First Bancorp Inc.

2,685

3.2

Blue Ridge Bankshares Inc.

2,354

2.8

C&F Financial Corp

2,118

2.5

FVCBankcorp Inc.

1,861

2.2

Top 10 Banks

$55,698

65,5%

389

All Institutions in Market

$85,196

100.0%

827

Statewide Branch Footprint Brings Unique Franchise Value and Significant Growth Opportunity

Source: SNL Financial and FDIC deposit data

Deposit and branch data as of 6/30/24 which is presented on a pro forma basis for any announced transactions6 Note: Excludes branches with deposits greater than $5.0 billion

Market Opportunity in Maryland and North Carolina

North Carolina: All Banks

Growth

Opportunity

Rank Institution

Deposits ($mm)

Market Share (%)

Branches

Truist Financial Corp.

$43,459

19.5%

275

Wells Fargo & Co.

37,836

17.0

229

First Citizens BancShares Inc.

25,019

11.2

200

Bank of America Corp.

20,970

9.4

106

PNC Financial Services Group Inc.

10,335

4.6

104

First Bancorp

9,152

4.1

101

Fifth Third Bancorp

7,702

3.5

F.N.B. Corp.

7,636

3.4

First Horizon Corp.

6,832

3.1

Pinnacle Financial Partners Inc.

6,504

2.9

Atlantic Union Bankshares Corp.

1,036

0.5

Top 10 Banks

$175,445

78.7%

1,310

All Institutions in Market

$222,801

100.0%

1,995

Growth Opportunity in both Maryland and North Carolina

Maryland: All Banks

Growth

Opportunity

Rank

Institution

Deposits

Market Share (%)

Branches

($mm)

Bank of America Corp.

$30,444

17.6%

118

Truist Financial Corp.

21,651

12.5

138

M&T Bank Corp.

18,295

10.6

160

PNC Financial Services Group Inc.

17,273

10.0

117

Wells Fargo & Co.

11,695

6.8

Capital One Financial Corp.

11,342

6.6

Atlantic Union Bankshares Corp

9,661

5.6

Forbright Inc.

5,502

3.2

Eagle Bancorp Inc.

5,494

3.2

Shore Bancshares Inc.

4,718

2.7

Top 10 Banks

$136,075

78.8%

737

All Institutions in Market

$173,222

100.0%

1,170

Source: SNL Financial and FDIC deposit data

Deposit and branch data as of 6/30/24; which is presented on a pro forma basis for any announced transactions7 Note: Excludes branches with deposits greater than $5.0 billion

Among the Most Attractive Markets in USA

Household Income ($)

2024 Population (mm)

State

HHI ($)

State

HHI ($)

State

Pop. (mm)

State

Pop. (mm)

California

39.2

District of Columbia

98,916

Colorado

90,555

North Carolina

10.9

Maryland

97,364

Texas

30.7

Michigan

10.1

Connecticut

89,717

Massachusetts

96,584

Florida

22.7

New Jersey

9.3

Virginia

89,172

New Jersey

96,278

New York

19.6

Virginia

8.8

Utah

88,438

New Hampshire

94,929

Pennsylvania

13.0

Washington

7.9

Alaska

86,275

Washington

93,297

Illinois

12.5

Arizona

7.5

Minnesota

86,272

California

92,605

Ohio

11.8

Tennessee

7.1

New York

81,057

Hawaii

91,385

Georgia

11.1

GDP ($bn)

Fortune 500 Companies

State

GDP ($bn)

State

GDP ($bn)

State

# Companies

State

# Companies

California

3,987

Washington

830

California

Georgia

Texas

2,664

New Jersey

826

Texas

Minnesota

New York

2,227

North Carolina

794

New York

Massachusetts

Florida

1,647

Massachusetts

759

Illinois

Michigan

Illinois

1,107

Virginia

733

Ohio

Connecticut

Pennsylvania

998

Michigan

679

Virginia

New Jersey

Ohio

897

Tennessee

540

Florida

North Carolina

Georgia

833

Pennsylvania

ranked Virginia the Best State for Business for 2024, 2021 and 2020 and 2nd best in 2023

North Carolina ranked 2nd best in 2024 and best in 2023

ranked Virginia the 4th Best State for Business and North Carolina 1st

ranked Virginia 13th for Best

States

Virginia is home to 818,450 Small Businesses - 99.5% of Virginia businesses

Virginia rated 1st in Workforce

Training and Cybersecurity, 2nd

in Tech Talent Pipeline and 3rd in

Business Climate

North Carolina rated 2nd in

Business Climate

Source: SNL Financial; Bureau of Economic Analysis; Bureau of Labor Statistics, Fortune.com, U.S. News & World Report;

Forbes, CNBC, U.S. Small Business Administration, USA Today; Business Facilities; most recent data available

Q3 2024 Highlights

Loan and Deposit Growth

Improved Financial Ratios Positioning for Long Term

Differentiated Client

Experience

Asset Quality

Capitalize on

Strategic Opportunities

1 - For non-GAAP financial measures, see reconciliation to most directly comparable GAAP measure in "Appendix - Reconciliation of Non-GAAP Disclosures

Our Core Values

Culture - HOW we come together and interact as a team to accomplish our business

and societal goals.

Caring

Courageous

Committed

Working together toward

Speaking openly, honestly and

Driven to help our clients,

common goals, acting with

accepting our challenges and

Teammates and company

kindness, respect and a

mistakes as opportunities to

succeed, doing what is right and

genuine concern for others.

learn and grow.

accountable for our actions.

Diversity, Equity, Inclusion, and Belonging Statement

Atlantic Union Bank embraces diversity of thought and identity to better serve our stakeholders and achieve our purpose. We commit to cultivating a welcoming workplace where Teammate and customer perspectives are valued and respected.

Disclaimer

Atlantic Union Bankshares Corporation published this content on November 07, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 07, 2024 at 15:00:12.756.