United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2020 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Earnings Review
United Bankshares, Inc. First Quarter 2020 Earnings Review April 30, 2020 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward Looking Statements This presentation and statements made by United Bankshares, Inc. (“United”) and its management contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 19
Slide 3: COVID-19 Response
COVID-19 RESPONSE Branches Operating on a drive-up and walk-up basis, or by appointment Employees Majority working remotely - 85% of non-retail staff has remote capabilities Continuing to pay 100% of regular salaries for all employees All standalone locations remain open Paid bonuses to certain empl
Slide 4: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (PPP) Round 1: Over 3,000 applications approved and >$900 million funded Continuing to provide support during Round 2 “All hands on deck” approach in order to assist as many customers as possible Average Loan Balance: $298,000 63% of loans < $150,000 Approved to borrow fr
Slide 5: Safe, Sound, and Secure Since 1839
“SAFE, SOUND, AND SECURE SINCE 1839” Source: Federal Reserve BHCPR. NET CHARGEOFFS/AVERAGE LOANS Outperformed peers during the Great Recession Conservative credit culture and experienced management team remain intact UBSI has increased dividends to shareholders for 46 consecutive years Capital level
Slide 6: Merger Update - Carolina Financial
MERGER UPDATE - CAROLINA FINANCIAL Announced the signing of a definitive merger agreement on November 18, 2019 to acquire 100% of the outstanding shares of Carolina Financial Corp. (CARO) Continues UBSI’s strategic expansion in the Carolinas with a financially compelling acquisition of a high-perfor
Slide 7: 1Q20 Highlights
1Q20 HIGHLIGHTS Reacted swiftly to the COVID-19 pandemic, striving to execute our mission of excellence in service to our employees, our customers, our shareholders, and our communities Achieved Net Income of $40.2 million and Diluted Earnings Per Share of $0.40 Exceeded $20 billion in total assets
Slide 8: Earnings Summary
EARNINGS SUMMARY Linked-Quarter (LQ) Net Income was $40.2 million in 1Q20 compared to $63.3 million in 4Q19. Diluted EPS were $0.40 in 1Q20 compared to $0.62 in 4Q19. Net Interest Income was relatively flat, increasing $235 thousand compared to 4Q19 due to various factors. Provision Expense increase
Slide 9: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. 1Q20 impacted by COVID-19 and CECL ACL build. *Non GAAP measure. Refer to appendix.
Slide 10: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin increased from 3.29% to 3.30% LQ. Linked-quarter Net Interest Margin increase was primarily due to an increase in purchase accounting loan accretion of $905 thousand. 1Q20 Net Interest Income, excluding purchase accounting loan accretion, w
Slide 11: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Linked-Quarter loan balances increased $142 million with growth in C&I and Non Owner Occupied CRE loans being offset by declines in Construction loans. Achieved annualized loan growth of 4.2% during 1Q20. Non Owner Occupied CRE to Total Risk Based Capital
Slide 12: Commercial Loan Portfolio Details
COMMERCIAL LOAN PORTFOLIO DETAILS Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio Balance ($ MM) % Total Loans % Deferring Retail CRE 1,079 7.8% 15.8% Hotels 368 2.7% 32.8% Healthcare & Senior Living 334 2.4% 8.7% Entertainment & Recreation 177 1.3% 35.4% En
Slide 13: Consumer Loan Portfolio Details
CONSUMER LOAN PORTFOLIO DETAILS Solid portfolio with product & geographic diversification Consumer deferrals total $115 million, or 2.7% of total consumer loans Portfolio Balance ($ MM) % Total Loans Weighted Average FICO % Deferring Residential Mortgage 2,632 19.0% 753 2.9% Indirect Auto 1,159 8.4%
Slide 14: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/19 3/31/20 Non-Accrual Loans $63,209 $64,036 90-Day Past Due Loans $9,494 $7,051 Restructured Loans $58,369 $61,470 Total Non-performing Loans $131,072 $132,557 Other Real Estate Owned $15,515 $15,849 Total Non-performing Assets $146,587 $148,406 No
Slide 15: Deposit Summary
DEPOSIT SUMMARY Strong core deposit base with 35% of deposits in Non Interest Bearing accounts. LQ deposit increase of $162 million driven by growth in Non Interest Bearing accounts, while brokered deposits declined $63 million. Enviable deposit franchise with an attractive mix of both high growth M
Slide 16: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 12/31/19 3/31/20** Common Equity Tier 1 Ratio 12.5% 12.3% Tier 1 Capital Ratio 12.5% 12.3% Total Risk Based Capital Ratio 14.7% 14.5% Leverage Ratio 10.5% 10.4% Total Equity to Total Assets 17.1% 16.4% *Tangible Equity to Tangible Assets
Slide 17: George Mason Mortgage
GEORGE MASON MORTGAGE George Mason Mortgage is the #1 purchase money lender in the Washington D.C. MSA. GMM reported $1.1 million in net income in 1Q20, compared to $1.9 million in 4Q19. GMM gain on sale revenue and business unit profitability will depend upon future production mix (in-house vs. sec
Slide 18: 2020 Outlook
2020 OUTLOOK Loans & Deposits: Expect to add ~$3.2 billion in gross loans and ~$3.6 billion in deposits from the CARO acquisition (expected closing May 1, 2020). Anticipate funding ~$900 million in PPP loans during 2Q20 (first round of PPP loans). Net Interest Margin / Net Interest Income: CARO acqu
Slide 19: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 4.8% (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 20: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 21: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items April 2020 (dollars in thousands) 3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $63,642 $67,207 $65,965 $63,285 $40,183 (B) Number of Days in the Quarter 90 91 92 92 91 Average Total Shareholders' Equit
Slide 22: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) April 2020 (dollars in thousands) 12/31/2019 3/31/2020 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,662,324 $ 20,370,653 Less: Total Intangibles (GAAP) (1,507,945) (1,506,368) Tangible Assets (non-GAAP) $ 18,154,379 $ 18,864,285 Total Share