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
First Quarter 2023 Earnings Review United Bankshares, Inc. April 26, 2023 Exhibit 99.2
Slide 2: 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 1934. These forward-looking s
Slide 3: 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 Companies in America 2
Slide 4: Linked-Quarter Results Summary
Linked-Quarter (LQ) Net Income was $98.3 million in 1Q23 compared to $99.8 million in 4Q22, with diluted EPS of $0.73 in 1Q23 compared to $0.74 in 4Q22. Net Interest Income decreased $15.1 million primarily due to higher interest expense driven by deposit rate repricing and higher average balances o
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin decreased from 3.87% to 3.63% LQ. Linked-quarter Net Interest Income (FTE) was down $15.1 million primarily due to higher interest expense driven by deposit rate repricing and higher average balances of FHLB borrowings as well as lower acquired loan accretion income. The
Slide 7: Loan Portfolio
Linked-Quarter loan balances increased $51 million primarily driven by Non Owner Occupied CRE loans and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 9.3% annualized in 1Q23. Non Owner Occupied CRE to Total Risk B
Slide 8: Asset 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-performing Loans / L
Slide 9: Deposits
Strong core deposit base with 30% of deposits in Non Interest Bearing accounts. LQ deposits decreased $19 million driven by declines in Non Interest Bearing accounts and Interest Bearing Transaction accounts, partially offset by increases in Time Deposits. Brokered deposits total $522 million (only
Slide 10: Liquidity Position & Additional Deposit Detail
Deposit Account Details ($ 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 $22,285 100% No borrowings from the FRB Discount
Slide 11: Franchise Markets Overview
West Virginia #2 in the state (second only to Truist) with $6.1 billion in deposits. United ranks #1 or #2 in deposit market share within its top 5 largest markets in the state. United continues to build franchise value with an attractive mix of both high growth MSA’s and stable, rural markets with
Slide 12: 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 Assets (non-GAAP) 9.5% 9.5% Book Value
Slide 13: Mortgage Banking Segment
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 Balance of Loans
Slide 14: 2023 Guidance
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 investment por
Slide 15: 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 of dividend increases e
Slide 16: Appendix
APPENDIX
Slide 17: 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) $4,759,780 $4,606,186 $4,542,100 $
Slide 18: 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' Equity (GAAP) $ 4,516,193 $ 4,606,537 Less: