United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — FY2018 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Jan 29, 2019
Slide 1: Fourth Quarter & Fiscal Year 2018 Earnings Review
United Bankshares, Inc. Fourth Quarter & Fiscal Year 2018 Earnings Review January 29, 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: 2018 Highlights
2018 HIGHLIGHTS Achieved record Net Income of $256.3 million and record Earnings Per Share of $2.45 for FY 2018 Increased dividends to shareholders for the 45th consecutive year, with a current dividend yield of 3.9% (based upon recent prices) Generated return on average assets of 1.36%, return on e
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) Net Income was $64.0 million in 4Q18 compared to $64.4 million in 3Q18. Diluted EPS were $0.62 in 4Q18 compared to $0.62 in 3Q18. Net Interest Income decreased $2.1 million linked quarter due to a $2.8 million decrease in loan purchase accounting accretion income
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. FY 2017 was impacted by $26.8 million in pre tax merger-related expenses and $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 decreased from 3.56% to 3.50% LQ. Net Interest Margin decrease is primarily attributable to a $2.8 million decrease in loan purchase accounting accretion (~7 bp impact). Scheduled loan accretion is $19 million for FY 2019 and $16 million fo
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) LQ loan growth of 4.3% (annualized) led by Residential Real Estate, Consumer, Construction & Land Development, and C&I loans. Achieved full year 2018 loan growth of 3.1%. Residential Real Estate growth generated primarily through United’s mortgage subsidia
Slide 8: Deposit Summary
DEPOSIT SUMMARY UBSI maintains a strong core deposit base with 32% of deposits in Non Interest Bearing accounts. LQ deposit decline of $96 million included a decrease of $131 million in brokered deposits. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural m
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) 9/30/18 12/31/18 Non Accrual Loans $66,554 $68,544 90-Day Past Due Loans $15,949 $14,851 Restructured Loans $63,626 $59,425 Total Non Performing Loans $146,129 $142,820 Other Real Estate Owned $18,786 $16,865 Total Non Performing Assets $164,915 $159,685
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 9/30/18 12/31/18** Common Equity Tier 1 Ratio 12.4% 12.2% Tier 1 Capital Ratio 12.4% 12.2% Total Risk Based Capital Ratio 14.6% 14.4% Leverage Ratio 10.3% 10.1% Total Equity to Total Assets 16.9% 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. Better positioned for profitability going forward due to implementation of ongoing expense reduction initiatives and continued focus on gain on sale margins. GMM gain on sale revenue and business unit profitab
Slide 14: 2019 Outlook
2019 OUTLOOK Loans & Deposits: Loan and deposit growth rates expected in the low to mid single digits for 2019 (compared to 4Q18 end of period balances). Net Interest Margin: Relatively stable core NIM (excluding purchase accounting related loan accretion / compared to 4Q18 net interest margin). Ass
Slide 15: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.9% (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 January 2019 (dollars in thousands) 2014 2015 2016 2017 2018 (1) Return on Average Tangible Equity Net Income (GAAP) $129,888 $137,959 $147,083 $150,581 $256,342 Average Total Shareholders' Equity (GAAP) $1,597,764 $1,702,490 $1,918,887 $2,971,663 $3,268,944 Less: Av
Slide 18: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) January 2019 (dollars in thousands) 9/30/2018 12/31/2018 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,187,643 $ 19,250,498 Less: Total Intangibles (GAAP) (1,516,971) (1,514,961) Tangible Assets (non-GAAP) $ 17,670,672 $ 17,735,537 Total Sha