United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2019 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Apr 25, 2019
Slide 1: First Quarter 2019 Earnings Review
United Bankshares, Inc. First Quarter 2019 Earnings Review April 25, 2019 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: 1Q19 Highlights
1Q19 HIGHLIGHTS Achieved Net Income of $63.6 million and Diluted Earnings Per Share of $0.62 Generated Return on Average Assets of 1.34%, Return on Average Equity of 7.88%, and Return on Average Tangible Equity* of 14.64% Outperformed peer ROAA and ROATE Quarterly dividend of $0.34 per share equates
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) Net Income was $63.6 million in 1Q19 compared to $64.0 million in 4Q18. Diluted EPS were $0.62 in 1Q19 compared to $0.62 in 4Q18. Weighted Average Diluted Shares decreased by one million shares LQ due to share repurchase activity. Net Interest Income decreased $2
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin decreased from 3.50% to 3.46% LQ. Linked quarter Net Interest Margin decrease was primarily due to a shift in the mix of deposits, higher deposit rates, and lower loan fees (down $775 thousand). 1Q19 Net Interest Income, excluding purchase
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) LQ loan growth of 4.4% (annualized) led by Construction & Land Development, Residential Real Estate, Consumer, and C&I loans. Residential Real Estate growth generated primarily through United’s mortgage subsidiary – George Mason Mortgage Company. Loans con
Slide 8: Deposit Summary
DEPOSIT SUMMARY Strong core deposit base with 31% of deposits in Non Interest Bearing accounts. LQ deposit growth of $164 million driven by customer money market accounts and brokered deposits. LQ decline in average deposits is primarily attributable to seasonality. Enviable deposit franchise with a
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 6/30/2018 1. BB&T Corp. 15.81% 2. United Bankshares, Inc. 13.31% 3. WesBanco, Inc. 9.17% 4. City Holding Company 7.56% 5. Huntington Bancshares Inc. 5.79% 6. JPMorgan Chase & Co. 5.64% 7. Summit Financial Group, Inc. 3.68% 8. MVB Financial Corp
Slide 11: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/18 3/31/19 Non Accrual Loans $68,544 $63,402 90-Day Past Due Loans $14,851 $15,572 Restructured Loans $59,425 $56,778 Total Non Performing Loans $142,820 $135,752 Other Real Estate Owned $16,865 $17,465 Total Non Performing Assets $159,685 $153,217
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 12/31/18 3/31/19** Common Equity Tier 1 Ratio 12.2% 12.0% Tier 1 Capital Ratio 12.2% 12.0% Total Risk Based Capital Ratio 14.4% 14.2% Leverage Ratio 10.1% 10.2% Total Equity to Total Assets 16.9% 16.7% *Tangible Equity to Tangible Assets
Slide 13: George Mason Mortgage
GEORGE MASON MORTGAGE George Mason Mortgage is the #1 purchase money lender in the Washington D.C. MSA. Better positioned for profitability going forward due to implementation of expense reduction initiatives and continued focus on gain on sale margins. GMM gain on sale revenue and business unit pro
Slide 14: 2019 Outlook
2019 OUTLOOK Loans & Deposits: Annual loan and deposit growth rates expected in the low to mid single digits for 2019. Net Interest Margin / Net Interest Income: Flat to slightly declining core NIM (excluding purchase accounting loan accretion / compared to 1Q19 net interest margin). Expect net inte
Slide 15: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.5% (based upon recent prices) High-performance bank with a low-risk profile Experienced management team with a proven track record of execution High level of insider owner
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 April 2019 (dollars in thousands) 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $61,706 $66,274 $64,412 $63,950 $63,642 (B) Number of Days in the Quarter 90 91 92 92 90 Average Total Shareholders' Equit
Slide 18: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) April 2019 (dollars in thousands) 12/31/2018 3/31/2019 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,250,498 $ 19,645,133 Less: Total Intangibles (GAAP) (1,514,961) (1,513,207) Tangible Assets (non-GAAP) $ 17,735,537 $ 18,131,926 Total Share