United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2023 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Earnings Review
United Bankshares, Inc. First Quarter 2023 Earnings Review April 26, 2023 1
Slide 2: Important Information
IMPORTANT INFORMATION 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 1934. T
Slide 3: 1Q23 Highlights
1Q23 HIGHLIGHTS • Achieved Net Income of $98.3 million and Diluted Earnings Per Share of $0.73 • Generated Return on Average Assets of 1.35%, Return on Average Equity of 8.72%, and Return on Average Tangible Equity* of 14.97% • Ranked #1 most trustworthy bank in Newsweek’s list of “Most Trustworthy
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 1Q23 4Q22 1Q22 Interest & Fees Income $ 329,303 $ 307,741 $ 202,795 Interest Expense $ 94,983 $ 58,337 $ 11,293 Net Interest Income $ 234,320 $ 249,404 $ 191,502 Provision for Credit Losses $ 6,890 $ 16,368 $ (3,410) Noninterest
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.60% 70.00% 1.40% 60.00% 1.20% 50.00% 1.00% 40.00% 0.80% 30.00% 0.60% 20.00% 0.40% 0.20% 10.00% 0.00% 0.00% 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Return on Average Return on Average Com
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Average Yields Net Interest Income & Net Interest Margin 6.00% $250 4.50% $225 4.00% $200 3.50% 5.00% $175 3.00% $150 2.50% 4.00% $125 2.00% $100 $75 1.50% 3.00% $50 1.00% $25 0.50% $0 0.00% 2.00% 1Q22 2Q22 3Q22 4Q22 1Q23 PPP Fee Income 4.1 3.6 1.6 0.3 0.2 1.00% Loan P
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 1Q23 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,708 8.3% $ (17) $22,000 $20,580 $20,631 $19,722 Non Owner Occupied CRE $ 6,536 31.7% $ 249 $20,000 $18,419 $18,994 Commercial $ 3,482 16.9% $ (96) $18,000 Paycheck Protection Program $ 29 0.1% $ (
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/22 3/31/23 Non-Accrual Loans $23,685 $29,296 90-Day Past Due Loans $15,565 $13,105 Restructured Loans* $19,388 n/a Total Non-performing Loans $58,638 $42,401 Other Real Estate Owned $2,052 $4,086 Total Non-performing Assets $60,690 $46,487 Non-perfo
Slide 9: Deposit Summary
DEPOSIT SUMMARY 1Q23 % of Total LQ Change Deposits, EOP Non Interest Bearing $ 6,708 30.1% $ (492) $23,474 $25,000 $23,027 $22,863 Interest Bearing Transaction $ 4,843 21.7% $ (274) $22,303 $22,285 Regular Savings $ 1,580 7.1% $ (99) $20,000 Money Market Accounts $ 6,180 27.7% $ (119) Time Deposits
Slide 10: Liquidity Position & Additional Deposit Detail
LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL Deposit Account Details ($ in millions) End of Period Ratios / Values 3/31/23 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $7,333 33% Estimated Insured/Collateralized Deposits $14,952 67% Total Deposits $
Slide 11: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#7 overall) with $10.2 • #2 in the state (second only to billion in deposits. Truist) with $6.1 billion in deposits. • United has increased deposit market share in the D.C. MSA from #15 in 2013 to • United
Slide 12: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 12/31/22 3/31/23** Common Equity Tier 1 Ratio 12.3% 12.5% Tier 1 Capital Ratio 12.3% 12.5% Total Risk Based Capital Ratio 14.4% 14.7% Leverage Ratio 10.8% 10.8% Total Equity to Total Assets 15.3% 15.3% *Tangible Equity to Tangible Asset
Slide 13: Mortgage Banking
MORTGAGE BANKING Three Months Ended (000s) 12/31/22 3/31/23 Applications $447,951 $505,840 Loans Originated $399,706 $312,077 Loans Sold $396,735 $301,476 Purchase Money % 85% 92% Realized Gain on Sale Margin 1.82% 2.17% Locked Pipeline (EOP) $68,654 $92,639 Loans Held for Sale (EOP) $56,879 $68,176
Slide 14: 2023 Outlook
2023 OUTLOOK Select guidance is being provided for 2023. Our outlook may change if the expectations for these items vary from current expectations. • Balance Sheet: Expect loan growth, excluding loans held for sale, to be in the low to mid single digits for the remainder of 2023 (annualized). Expect
Slide 15: Investment Thesis
INVESTMENT THESIS • Premier Mid-Atlantic and Southeast franchise with an attractive mix of high growth MSAs and smaller stable markets with a dominant market share position • Consistently high-performing company with a culture of disciplined risk management and expense control • 49 consecutive years
Slide 16: Appendix
APPENDIX 16
Slide 17: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $81,664 $95,613 $102,585 $99,765 $98,307 (B) Number of Days in the Quarter 90 91 92 92 90 Average Total Shareholders' Equity (GAAP) $
Slide 18: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 12/31/2022 3/31/2023 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,489,380 $ 30,182,241 Less: Total Intangibles (GAAP) (1,907,786) (1,906,507) Tangible Assets (non-GAAP) $ 27,581,594 $ 28,275,734 Total Shareholders' Eq