United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q2 2018 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Jul 26, 2018
Slide 1: Second Quarter 2018 Earnings Review
United Bankshares, Inc. Second Quarter 2018 Earnings Review July 26, 2018 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and statements made by United Bankshares, Inc. (“United”) and its management may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified
Slide 3: 2Q18 Highlights
2Q18 HIGHLIGHTS Record Net Income of $66.3 million with diluted earnings per share of $0.63 Generated return on average assets of 1.42%, return on equity of 8.11%, and return on tangible equity* of 15.14% Quarterly dividend of $0.34 per share equates to a yield of 3.7% based upon recent stock price
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) Net Income increased from $61.7 million in 1Q18 to $66.3 million in 2Q18. The increase in Net Income was primarily due to growth in net interest income and higher earnings from George Mason Mortgage Company. Diluted EPS were $0.63 in 2Q18 compared to $0.59 in 1Q1
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. 2Q17 was impacted by $23.2 million in pre-tax merger-related expenses. 4Q17 was impacted by $37.7 million in additional tax expense related to the Tax Act. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin increased from 3.61% to 3.67% LQ. Increases in Net Interest Margin and Net Interest Income LQ were primarily driven by a favorable change in the mix of earnings assets (i.e. growth in portfolio loans), higher loan and securities yields, and
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Strong loan growth (4.1% LQ, 16.3% annualized) led by C&I, Residential Real Estate, and Consumer loans. C&I growth was driven by high quality, in-market borrowers. Residential real estate growth generated through United’s mortgage subsidiary – George Mason
Slide 8: Deposit Summary
DEPOSIT SUMMARY UBSI maintains a strong core deposit base with 31% of deposits in Non Interest Bearing accounts. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets where United has a dominant market share position. Maintain the #7 deposit market sha
Slide 9: Enhancing Franchise Value
ENHANCING FRANCHISE VALUE Deposit Market Share: Washington D.C. MSA Since 2014, United has completed 3 acquisitions in the Washington D.C. MSA, significantly increasing franchise value (Cardinal, Bank of Georgetown, & Virginia Commerce). United has increased deposit market share in the Washington D.
Slide 10: Strong Deposit Market Share in WV
STRONG DEPOSIT MARKET SHARE IN WV Source: SNL Financial 6/30/2017 1. BB&T Corp. 16.06% 2. United Bankshares, Inc. 13.51% 3. WesBanco, Inc. 7.54% 4. City Holding Company 7.41% 5. JPMorgan Chase & Co. 5.58% 6. Huntington Bancshares, Inc. 5.51% 7. Summit Financial Group, Inc. 3.71% 8. MVB Financial Cor
Slide 11: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 3/31/18 6/30/18 Non Accrual Loans $100,172 $74,114 90-Day Past Due Loans $9,165 $16,422 Restructured Loans $48,271 $60,384 Total Non Performing Loans $157,608 $150,920 Other Real Estate Owned $22,778 $21,926 Total Non Performing Assets $180,386 $172,846 N
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 3/31/18 6/30/18** Common Equity Tier 1 Ratio 12.4% 12.0% Tier 1 Capital Ratio 12.4% 12.0% Total Risk Based Capital Ratio 14.6% 14.2% Leverage Ratio 10.5% 10.4% Total Equity to Total Assets 17.5% 16.9% *Tangible Equity to Tangible Assets (
Slide 13: George Mason Mortgage
GEORGE MASON MORTGAGE GMM remains the #1 purchase money lender in the Washington D.C. MSA. Business unit net income increased to $1.9 million in 2Q18. GMM continued to originate portfolio ARM products for United Bank during 2Q18 (lower margins). GMM gain on sale revenue and business unit profitabili
Slide 14: 2018 Outlook
2018 OUTLOOK Loans & Deposits: Loan and deposit growth rates expected in the low to mid single digits for the remainder of 2018. Net Interest Margin: Stable core NIM (excluding purchase accounting related loan accretion). Asset Quality: Stable asset quality metrics (following improvement in 1Q18 & 2
Slide 15: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with strong growth prospects Experienced management team with a proven track record of execution High level of insider ownership High-performance bank with a low-risk profile 44 consecutive years of dividend increases evidences United’s strong profitability
Slide 16: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 17: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items July 2018 (dollars in thousands) 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $37,059 $56,738 $17,975 $61,706 $66,274 (B) Number of Days in the Quarter 91 92 92 90 91 Average Total Shareholders' Equity
Slide 18: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) July 2018 (dollars in thousands) 3/31/2018 6/30/2018 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 18,619,702 $ 19,207,603 Less: Total Intangibles (GAAP) (1,521,556) (1,518,980) Tangible Assets (non-GAAP) $ 17,098,146 $ 17,688,623 Total Shareho