United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2018 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Oct 25, 2018
Slide 1: Third Quarter 2018 Earnings Review
United Bankshares, Inc. Third Quarter 2018 Earnings Review October 25, 2018 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and statements made by United Bankshares, Inc. (“United”) and its management may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified
Slide 3: 3Q18 Highlights
3Q18 HIGHLIGHTS Achieved record Net Income of $192.4 million through the first nine months of 2018. 3Q18 Net Income of $64.4 million with diluted earnings per share of $0.62 Outperformed peer profitability Generated return on average assets of 1.34%, return on equity of 7.83%, and return on tangible
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) Net Income decreased from $66.3 million in 2Q18 to $64.4 million in 3Q18. The decrease in Net Income was primarily due to lower earnings from George Mason Mortgage Company. Diluted EPS were $0.62 in 3Q18 compared to $0.63 in 2Q18. Net Interest Income decreased $0
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. 4Q17 was impacted by $37.7 million in additional tax expense related to the Tax Act. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin decreased from 3.67% to 3.56% LQ. Net Interest Margin decrease was primarily due to: Strategy to extend CD portfolio (executed $200 million of brokered CD’s on 6/29/18 for 12 months at a rate of 2.5%). Approximately 6 bps impact. $497 thous
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) LQ decrease in loans driven by an above average level of payoffs, led by one sizable payoff in the C&I portfolio. Residential real estate growth generated primarily through United’s mortgage subsidiary – George Mason Mortgage Company. Loans consist of ARM
Slide 8: Deposit Summary
DEPOSIT SUMMARY UBSI maintains a strong core deposit base with 32% of deposits in Non Interest Bearing accounts. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets where United has a dominant market share position. Maintain the #8 deposit market sha
Slide 9: Enhancing Franchise Value
ENHANCING FRANCHISE VALUE Deposit Market Share: Washington D.C. MSA Since 2014, United has completed 3 acquisitions in the Washington D.C. MSA, significantly increasing franchise value (Cardinal, Bank of Georgetown, & Virginia Commerce). United has increased deposit market share in the Washington D.
Slide 10: Strong Deposit Market Share in WV
STRONG DEPOSIT MARKET SHARE IN WV Source: SNL Financial 6/30/2018 1. BB&T Corp. 15.81% 2. United Bankshares, Inc. 13.31% 3. WesBanco, Inc. 9.17% 4. City Holding Company 7.56% 5. Huntington Bancshares Inc. 5.79% 6. JPMorgan Chase & Co. 5.64% 7. Summit Financial Group, Inc. 3.68% 8. MVB Financial Corp
Slide 11: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/18 9/30/18 Non Accrual Loans $74,114 $66,554 90-Day Past Due Loans $16,422 $15,949 Restructured Loans $60,384 $63,626 Total Non Performing Loans $150,920 $146,129 Other Real Estate Owned $21,926 $18,786 Total Non Performing Assets $172,846 $164,915 N
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 6/30/18 9/30/18** Common Equity Tier 1 Ratio 12.0% 12.4% Tier 1 Capital Ratio 12.0% 12.4% Total Risk Based Capital Ratio 14.2% 14.6% Leverage Ratio 10.4% 10.3% Total Equity to Total Assets 16.9% 16.9% *Tangible Equity to Tangible Assets (
Slide 13: George Mason Mortgage
GEORGE MASON MORTGAGE GMM remains the #1 purchase money lender in the Washington D.C. MSA. Better positioned for profitability going forward due to implementation of ongoing expense reduction initiatives and continued focus on gain on sale margins. GMM gain on sale revenue and business unit profitab
Slide 14: 2018 Outlook
2018 OUTLOOK Loans & Deposits: Loan and deposit growth rates expected in the low to mid single digits for 4Q18 (annualized). Net Interest Margin: Stable to slightly improving core NIM (excluding purchase accounting related loan accretion). Asset Quality: Stable asset quality metrics (following impro
Slide 15: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 4.2% (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 owner
Slide 16: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 17: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items October 2018 (dollars in thousands) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $56,738 $17,975 $61,706 $66,274 $64,412 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equ
Slide 18: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) October 2018 (dollars in thousands) 6/30/2018 9/30/2018 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,207,603 $ 19,187,643 Less: Total Intangibles (GAAP) (1,518,980) (1,516,971) Tangible Assets (non-GAAP) $ 17,688,623 $ 17,670,672 Total Shar