United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2024 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Jan 24, 2025
Slide 1: Fourth Quarter & Fiscal Year 2024 Earnings Review
Fourth Quarter & Fiscal Year 2024 Earnings Review United Bankshares, Inc. (UBSI) January 24, 2025 EXHIBIT 99.2
Slide 2: Forward-looking statements
This presentation and statements made by United Bankshares, Inc. (“UBSI”) 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 statements are intended to be
Slide 3: 2024 Highlights
Achieved Net Income of $373.0 million and Diluted Earnings Per Share of $2.75 Generated Return on Average Assets of 1.26%, Return on Average Equity of 7.61%, and Return on Average Tangible Equity* of 12.43% Increased dividends to shareholders for the 51st consecutive year (current dividend yield of
Slide 4: Piedmont Bancorp merger overview
Continuation of UBSI’s proven M&A strategy | UBSI’s 34th acquisition Entrance into Greater Atlanta Area markets with robust economic growth opportunities Enhances UBSI’s position as one of the premier regional banking companies in the Southeast and Mid-Atlantic Piedmont Overview Advancing Strategy T
Slide 5: Linked-quarter net income and results
Linked-Quarter (LQ) Net Income was $94.4 million in 4Q24 compared to $95.3 million in 3Q24, with diluted EPS of $0.69 in 4Q24 compared to $0.70 in 3Q24. Net Interest Income increased $2.4 million mainly due to a lower average rate paid on deposits and an increase in average earning assets that was l
Slide 6: Performance ratios
*Non-GAAP measure. Refer to appendix. Strong profitability and expense control FY 2020 was impacted by COVID-19, CECL ACL build, pre-tax merger-related expenses of $54.2 million, and breakage fees of $10.4 million on three FHLB advance payoffs, largely offset by strong mortgage banking income. FY 20
Slide 7: Net interest margin and net interest income
Reported Net Interest Margin decreased from 3.52% to 3.49% LQ. Linked-quarter Net Interest Income (FTE) increased $2.3 million mainly due to a lower average rate paid on deposits and an increase in average earning assets that was largely funded by deposit growth, partially offset by a lower yield on
Slide 8: Loan portfolio
Linked-Quarter loan balances increased $49 million primarily driven by Construction & Land Development and Residential Real Estate loans. YTD loan growth was led by the North Carolina & South Carolina markets, up 12.5% in 2024, and the Central Virginia markets, up 11.2% in 2024. Non Owner Occupied C
Slide 9: Asset quality
End of Period Balances (000s) 9/30/24 12/31/24 Non-Accrual Loans $52,446 $56,460 90-Day Past Due Loans $12,794 $16,940 Total Non-performing Loans $65,240 $73,400 Other Real Estate Owned $169 $327 Total Non-performing Assets $65,409 $73,727 Non-performing Loans / Loans 0.30% 0.34% Non-performing Asse
Slide 10: Deposit summary
Strong core deposit base with 26% of deposits in Non Interest Bearing accounts. LQ deposits increased $134 million driven by Non Interest Bearing, Time Deposits, and Interest Bearing Transaction accounts. Brokered deposits remained at 0.0% of total deposits as of 12/31/24. Enviable deposit franchise
Slide 11: Deposit account details and available liquidity
Deposit Account Details ($ in millions) End of Period Ratios / Values 12/31/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $7,642 32% Estimated Insured/Collateralized Deposits $16,320 68% Total Deposits $23,962 100% *Does not include other sources of
Slide 12: Deposit market share by state
West Virginia #1 in the state with $6.3 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 MSAs and stable, rural markets with a strong deposit base. Fu
Slide 13: Capital ratios and per share data
End of Period Ratios / Values 9/30/24 12/31/24** Common Equity Tier 1 Ratio 13.8% 14.2% Tier 1 Capital Ratio 13.8% 14.2% Total Risk Based Capital Ratio 16.2% 16.5% Leverage Ratio 11.7% 11.7% Total Equity to Total Assets 16.6% 16.6% *Tangible Equity to Tangible Assets (non-GAAP) 11.0% 11.0% Book Valu
Slide 14: 2025 guidance
Select guidance is being provided for 2025. Our outlook may change if the expectations for these items vary from current expectations. Balance Sheet: Expect loan and deposit growth to be in the mid single digits for 2025 (not including balances acquired in the Piedmont merger). Loan pipelines contin
Slide 15: Investment thesis
Premier Mid-Atlantic and Southeast franchise with an attractive mix of high growth MSAs and smaller stable markets with a strong deposit base Consistently high-performing company with a culture of disciplined risk management and expense control 51 consecutive years of dividend increases evidences Un
Slide 16: Piedmont merger - expanded franchise
Source: S&P Capital IQ Pro 227 Locations Expanded to 16 Locations 243 Locations PIEDMONT MERGER- EXPANDED FRANCHISE
Slide 17: Atlanta: the South's business hub
Source: S&P Capital IQ Pro; City of Atlanta; Metro Atlanta Chamber; Georgia USA Companies Headquartered in Atlanta Demographics #6 Largest MSA by Population in the United States Ranks #1 in UBSI’s Pro Forma Footprint Home to 18 Fortune 500 Companies #1 US Housing Market with most growth potential in
Slide 18: Piedmont merger - compelling financial impact
GAAP Metrics Excl. Rate Marks + AOCI(1) Earnings Impact 7.6% 2025 EPS(2) Accretion 8.3% 2026 EPS Accretion 4.0% 2025 EPS(2) Accretion 4.7% 2026 EPS Accretion Tangible Book Value Impact (3.5)% TBV Dilution 2.8 Years TBV Earnback(3) (1.7)% TBV Dilution 2.5 Years TBV Earnback(3) Note: Projections based
Slide 19: Demonstrated history of successful acquisitions
(1) Estimated total pro forma assets at transaction close based on assumptions at time of deal announcement Source: S&P Capital IQ Pro; Company filings (1) DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS
Slide 20: Appendix
APPENDIX UNITED | BANKSHARES, INC.
Slide 21: Reconciliation of non-GAAP items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 2020 2021 2022 2023 2024 (1) Return on Average Tangible Equity Net Income (GAAP) $289,023 $367,738 $379,627 $366,313 $372,996 Average Total Shareholders' Equity (GAAP) $3,956,969 $4,430,688 $4,601,440 $4,654,103 $4,901,069 Less: Average Total I
Slide 22: Reconciliation of non-GAAP items (cont.)
(dollars in thousands) 9/30/2024 12/31/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,863,262 $ 30,023,545 Less: Total Intangibles (GAAP) (1,898,665) (1,897,755) Tangible Assets (non-GAAP) $ 27,964,597 $ 28,125,790 Total Shareholders' Equity (GAAP) $ 4,967,820 $ 4,993,223 Less: