United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2024 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Apr 25, 2024
Slide 1: United Bankshares, Inc. First Quarter 2024 Earnings Review
United Bankshares, Inc. First Quarter 2024 Earnings Review April 25, 2024 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: 1Q24 Highlights
1Q24 HIGHLIGHTS • Achieved Net Income of $86.8 million and Diluted Earnings Per Share of $0.64 • Generated Return on Average Assets of 1.19%, Return on Average Equity of 7.25%, and Return on Average Tangible Equity* of 11.98% • Consistently ranked as one of the most trustworthy banks in America by N
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 1Q24 4Q23 1Q23 Interest & Fees Income $ 369,180 $ 369,175 $ 329,303 Interest Expense $ 146,691 $ 139,485 $ 94,983 Net Interest Income $ 222,489 $ 229,690 $ 234,320 Provision for Credit Losses $ 5,740 $ 6,875 $ 6,890 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% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 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 7.00% $250 4.50% $225 4.00% 6.00% $200 3.50% $175 3.00% 5.00% $150 2.50% $125 2.00% 4.00% $100 1.50% $75 3.00% $50 1.00% $25 0.50% 2.00% $0 0.00% 1Q23 2Q23 3Q23 4Q23 1Q24 1.00% Loan PA Accretion 3.1 3.1 2.3 3.0 2
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) Loans, EOP $21,373 $21,533 1Q24 % of Total LQ Change $22,000 $21,115 $20,631 $20,782 Owner Occupied CRE $ 1,625 7.5% $ 27 $20,000 Non Owner Occupied CRE $ 7,010 32.6% $ 292 $18,000 Commercial $ 3,540 16.4% $ (33) $16,000 Residential Real Estate $ 5,366 24.
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/23 3/31/24 Non‐Accrual Loans $30,919 $63,053 90‐Day Past Due Loans $14,579 $11,329 Total Non‐performing Loans $45,498 $74,382 Other Real Estate Owned $2,615 $2,670 Total Non‐performing Assets $48,113 $77,052 Non‐performing Loans / Loans 0.21% 0.35%
Slide 9: Deposit Summary
DEPOSIT SUMMARY 1Q24 % of Total LQ Change Deposits, EOP Non Interest Bearing $ 6,017 26.3% $ (132) $25,000 $22,677 $22,819 $22,920 Interest Bearing Transaction $ 5,503 24.0% $ (146) $22,285 $22,370 Regular Savings $ 1,323 5.8% $ (23) $20,000 Money Market Accounts $ 6,615 28.9% $ 266 Time Deposits <
Slide 10: Liquidity Position & Additional Deposit Detail
LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL Deposit Account Details ($ in millions) End of Period Ratios / Values 3/31/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,727 29% Estimated Insured/Collateralized Deposits $16,193 71% Total Deposits $
Slide 11: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#6 overall) with $9.9 • #2 in the state (second only to billion in deposits. Truist) with $6.0 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 12/31/23 3/31/24** Common Equity Tier 1 Ratio 13.1% 13.2% Tier 1 Capital Ratio 13.1% 13.2% Total Risk Based Capital Ratio 15.4% 15.6% Leverage Ratio 11.4% 11.4% Total Equity to Total Assets 15.9% 16.0% *Tangible Equity to Tangible Asset
Slide 13: 2024 Outlook
2024 OUTLOOK Select guidance is being provided for 2024. 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 2024 (annualized). Loan p
Slide 14: 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 • 50 consecutive years
Slide 15: Appendix
APPENDIX 15
Slide 16: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON‐GAAP ITEMS (dollars in thousands) 1Q23 2Q23 3Q23 4Q23 1Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $98,307 $92,459 $96,157 $79,390 $86,814 (B) Number of Days in the Quarter 90 91 92 92 91 Average Total Shareholders' Equity (GAAP) $4,570,288 $4,659,094 $4,687
Slide 17: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON‐GAAP ITEMS (CONT.) (dollars in thousands) 12/31/2023 3/31/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,926,482 $ 30,028,798 Less: Total Intangibles (GAAP) (1,901,394) (1,900,484) Tangible Assets (non‐GAAP) $ 28,025,088 $ 28,128,314 Total Shareholders' Eq