United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2021 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Jan 27, 2022
Slide 1: Fourth Quarter & Fiscal Year 2021 Earnings Review
Fourth Quarter & Fiscal Year 2021 Earnings Review United Bankshares, Inc. January 27, 2022 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: 2021 Highlights
Achieved record Net Income of $367.7 million and record Diluted Earnings Per Share of $2.83 Generated Return on Average Assets of 1.35%, Return on Average Equity of 8.30%, and Return on Average Tangible Equity* of 14.18% Closed the merger with Community Bankers Trust Corporation (ESXB) on December 3
Slide 4: ESXB Merger Update and New Franchise Footprint
ESXB New Franchise Footprint UBSI Source:S&P Global Market Intelligence Note:Locations include mortgage origination and servicing branches Charleston Greenville Asheville Lynchburg Charlottesville ESXB MERGER UPDATE Update Closed the merger with Community Bankers Trust Corporation (ESXB) on December
Slide 5: Linked-Quarter Results
Linked-Quarter (LQ) Net Income was $73.9 million in 4Q21 compared to $92.2 million in 3Q21, with diluted EPS of $0.56 in 4Q21 compared to $0.71 in 3Q21. Net Interest Income increased $2.1 million due to increased average earnings assets as a result of organic growth and the ESXB acquisition, as well
Slide 6: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. 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. FY 2020 was impacted by COVID-19, CECL ACL build, pre-tax merger-related expenses of $54.2 million, an
Slide 7: Net Interest Income and Margin
Reported Net Interest Margin decreased from 2.98% to 2.94% LQ mainly due to declines in loan accretion on acquired loans and declines in PPP loan fee income of $1.9 million and $2.8 million, respectively. Linked-quarter Net Interest Income (FTE) was up $2.1 million due to increased average earnings
Slide 8: Loan Summary
Linked-Quarter loan balances increased $1.3 billion driven by the loans acquired in the ESXB merger. Excluding the impact of the merger and PPP loans, total loans increased $105 million (2.5% annualized) compared to 3Q21. In 3Q21, total loans increased $227 million (5.6% annualized) compared to 2Q21
Slide 9: Asset Quality
End of Period Balances (000s) 9/30/21 12/31/21 Non-Accrual Loans $37,689 $36,028 90-Day Past Due Loans $14,827 $18,879 Restructured Loans $37,752 $35,856 Total Non-performing Loans $90,268 $90,763 Other Real Estate Owned $16,696 $14,823 Total Non-performing Assets $106,964 $105,586 Non-performing Lo
Slide 10: Diversified portfolio with strong underwriting practices
Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio Portfolio Balance ($ MM) % Total Loans Commercial Retail CRE 1,273 7.1% Hotels 846 4.7% Entertainment & Recreation 227 1.3% Healthcare & Senior Living 208 1.2% Restaurants 195 1.1% Energy (Direct & Indirect) 15
Slide 11: Paycheck Protection Program (PPP)
PPP Loan Activity Originated over 13,500 loans for $1.8 billion since program inception in 2020 Maintained an “all hands on deck” approach in order to assist as many customers as possible Outstandings decreased $109 million in 4Q21 Remaining outstandings at 12/31/21: Over 2,900 loans totaling $302 m
Slide 12: Deposit Summary
Strong core deposit base with 39% of deposits in Non Interest Bearing accounts. LQ deposits increased $1.5 billion driven by the balances acquired in the ESXB merger. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets with a dominant market share po
Slide 13: Deposit market position by state and MSA
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 14: Capital Ratios and Per Share Data
End of Period Ratios / Values 9/30/21 12/31/21** Common Equity Tier 1 Ratio 13.5% 13.4% Tier 1 Capital Ratio 13.5% 13.4% Total Risk Based Capital Ratio 15.7% 15.4% Leverage Ratio 10.4% 11.0% Total Equity to Total Assets 16.1% 16.1% *Tangible Equity to Tangible Assets (non-GAAP) 10.1% 10.2% Book Valu
Slide 15: Mortgage Banking Segment
Three Months Ended (000s) 9/30/21 12/31/21 Applications $1,893,870 $1,534,311 Loans Originated $1,385,871 $1,287,629 Loans Sold $1,470,928 $1,273,014 Purchase Money % 69% 69% Realized Gain on Sale Margin 3.00% 3.02% Locked Pipeline (EOP) $648,706 $448,889 Loans Held for Sale (EOP) $493,299 $504,416
Slide 16: 2022 Guidance
Select guidance is being provided for 2022. Our outlook may change if the expectations for these items vary from current expectations. Balance Sheet: Expect loan growth, excluding PPP loans and loans held for sale, to be in the mid single digits for 2022 (compared to end of period balance). Loan pip
Slide 17: 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 ownership 48 consecutive yea
Slide 18: Appendix
APPENDIX
Slide 19: ESXB Merger - Additional Information
Merger-related expense detail ESXB MERGER- ADDITIONAL INFORMATION 1Q21 2Q21 3Q21 4Q21 YTD Provision --- --- --- $12.3 $12.3 Employee Comp. --- --- --- $2.6 $2.6 Data Processing --- --- --- $3.5 $3.5 Other Expense --- $0.2 $0.8 $2.0 $3.0 Total --- $0.2 $0.8 $20.4 $21.4 *In millions Day 1 purchase acc
Slide 20: Successful Acquisitions Advancing Growth and Enhancing Franchise Value
Source:S&P Global Market Intelligence Closed 3Q 2011 Closed 1Q 2014 Closed 2Q 2017 Closed 2Q 2020 Closed 4Q 2021 SUCCESSFUL ACQUISITIONS ADVANCING GROWTH AND ENHANCING FRANCHISE VALUE Closed 2Q 2016
Slide 21: Reconciliation of Non-GAAP Items
(dollars in thousands) 2017 2018 2019 2020 2021 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $150,581 $256,342 $260,099 $289,023 $367,738 Average Total Shareholders' Equity (GAAP) $2,959,293 $3,268,944 $3,336,075 $3,956,969 $4,430,688 Less: Average Total Intangibles (1,319,109) (1,519
Slide 22: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 9/30/2021 12/31/2021 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 27,507,517 $ 29,328,902 Less: Total Intangibles (GAAP) (1,832,564) (1,910,907) Tangible Assets (non-GAAP) $ 25,674,953 $ 27,417,995 Total Shareholders' Equity (GAAP) $ 4,430,766 $ 4,718,628 Less: