United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2021 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Oct 26, 2021
Slide 1: United Bankshares, Inc. Third Quarter 2021 Earnings Review
United Bankshares, Inc. Third Quarter 2021 Earnings Review October 26, 2021 1
Slide 2: Important Information: Forward Looking Statements
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: 3Q21 Highlights
3Q21 HIGHLIGHTS • Achieved quarterly Net Income of $92.2 million and quarterly Diluted Earnings Per Share of $0.71 • Generated Return on Average Assets of 1.33%, Return on Average Equity of 8.23%, and Return on Average Tangible Equity* of 14.03% • Achieved period-end annualized loan growth of 5.6% (
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 3Q21 2Q21 3Q20 Interest & Fees Income $ 194,080 $ 200,186 $ 210,269 Interest Expense $ 12,501 $ 13,669 $ 24,605 Net Interest Income $ 181,579 $ 186,517 $ 185,664 Provision for Credit Losses $ (7,829) $ (8,879) $ 16,781 Nonintere
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.80% 60.00% 1.60% 50.00% 1.40% 1.20% 40.00% 1.00% 30.00% 0.80% 0.60% 20.00% 0.40% 10.00% 0.20% 0.00% 0.00% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Return on Average Return on Average Comm
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Average Yields Net Interest Income & Net Interest Margin 4.50% $200 4.00% $180 3.50% 4.00% $160 3.00% 3.50% $140 $120 2.50% 3.00% $100 2.00% 2.50% $80 1.50% $60 2.00% 1.00% $40 $20 0.50% 1.50% $0 0.00% 1.00% 3Q20 4Q20 1Q21 2Q21 3Q21 Loan PA Accretion 11.7 10.9 9.8 9.7
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 3Q21 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,543 9.2% $ (47) $20,000 $17,968 $17,623 $17,400 Non Owner Occupied CRE $ 5,199 31.0% $ 218 $18,000 $16,922 $16,771 Commercial $ 2,818 16.8% $ (51) $16,000 Paycheck Protection Program $ 412 2.5% $
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/21 9/30/21 Non-Accrual Loans $41,182 $37,689 90-Day Past Due Loans $14,135 $14,827 Restructured Loans $47,271 $37,752 Total Non-performing Loans $102,588 $90,268 Other Real Estate Owned $18,474 $16,696 Total Non-performing Assets $121,062 $106,964 No
Slide 9: Select Loan Portfolio Details
SELECT LOAN PORTFOLIO DETAILS Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio % Total Portfolio Balance Loans ($ MM) • Total commercial deferrals have declined to $48 million (~0.4% of total commercial loans) as of 9/30/21. Commercial Retail CRE 1,348 8.0% •
Slide 10: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (PPP) PPP Loan Activity • Originated over 13,500 loans for $1.8 billion since PPP Fees Recognized, net of costs ($ millions)* program inception in 2020 3Q20 4Q20 1Q21 2Q21 3Q21 • Maintained an “all hands on deck” approach in $4.80 $6.98 $11.31 $9.02 $7.85 order to assist
Slide 11: Deposit Summary
DEPOSIT SUMMARY 3Q21 % of Total LQ Change Deposits, EOP Interest Bearing $ 13,332 61.1% $ 48 $25,000 Non Interest Bearing $ 8,490 38.9% $ 207 $21,396 $21,567 $21,823 $20,252 $20,585 Total Deposits $ 21,823 100.0% $ 255 $20,000 $15,000 • Strong core deposit base with 39% of deposits in Non Interest B
Slide 12: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION West Virginia Washington D.C. MSA • #2 in the state (second only to • #1 regional bank (#7 overall) with $10.3 Truist) with $6.1 billion in billion in deposits. deposits. • United has increased deposit market • United ranks #1 or #2 in deposit share in the D.
Slide 13: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 6/30/21 9/30/21** Common Equity Tier 1 Ratio 13.7% 13.5% Tier 1 Capital Ratio 13.7% 13.5% Total Risk Based Capital Ratio 15.9% 15.7% Leverage Ratio 10.3% 10.4% Total Equity to Total Assets 16.2% 16.1% *Tangible Equity to Tangible Assets
Slide 14: Mortgage Banking
MORTGAGE BANKING Three Months Ended (000s) 6/30/21 9/30/21 Applications $2,029,846 $1,893,870 Loans Originated $1,658,128 $1,385,871 Loans Sold $1,877,772 $1,470,928 Purchase Money % 69% 69% Realized Gain on Sale Margin 2.90% 3.00% Locked Pipeline (EOP) $660,258 $648,706 Loans Held for Sale (EOP) $5
Slide 15: 2021 Outlook
2021 OUTLOOK Select guidance is being provided for 2021. Our outlook may change if the expectations for these items vary from current expectations. • Community Bankers Trust Corporation (ESXB) Merger: Expect to close the ESXB merger in 4Q21, subject to approval by the shareholders of ESXB. Requisite
Slide 16: Investment Thesis
INVESTMENT THESIS • Excellent franchise with long-term growth prospects • Current income opportunity with a dividend yield of 3.8% (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
Slide 17: ESXB Merger - Announced June 3, 2021
ESXB MERGER- ANNOUNCED JUNE 3, 2021 • Headquarters: Richmond, VA • Founded: 1926 ESXB Overview • Ticker: ESXB (NASDAQ) • Total Assets: $1.7 Billion (1) • Enhances density and scale in highly attractive markets throughout Virginia and Maryland • Adds to existing presence in Washington D.C. MSA Advanc
Slide 18: ESXB Merger - Pro Forma Franchise
ESXB MERGER- PRO FORMA FRANCHISE Pro Forma Franchise Footprint Total ~$29 Billion Assets Charleston Charlottesville Net ~$19 Billion Loans Lynchburg Total Asheville ~$23 Billion Deposits Greenville UBSI Tangible 222 Locations ~$2.7 Billion Equity ESXB 26 Locations Source: S&P Global Market Intellige
Slide 19: Successful Acquisitions Advancing Growth and Enhancing Franchise Value
SUCCESSFUL ACQUISITIONS ADVANCING GROWTH AND ENHANCING FRANCHISE VALUE Announced Closed 2Q 2021 1Q 2014 Closed Closed 2Q 2017 3Q 2011 Closed 2Q 2020 $35.0 Closed $30.0 2Q 2016 $28.7 $27.0 $26.2 $25.0 $19.7 Total Assets ($B) $19.3 $19.1 $20.0 $14.5 $15.0 $12.6 $12.3 $8.7 $10.0 $8.5 $8.4 $7.2 $5.0 $0.
Slide 20: Appendix
APPENDIX 20
Slide 21: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $103,784 $92,370 $106,898 $94,836 $92,152 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equity (GAAP)
Slide 22: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 6/30/2021 9/30/2021 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 27,190,926 $ 27,507,517 Less: Total Intangibles (GAAP) (1,834,030) (1,832,564) Tangible Assets (non-GAAP) $ 25,356,896 $ 25,674,953 Total Shareholders' Equ