United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2024 Earnings Presentation
20 slides from United Bankshares's earnings presentation, Oct 24, 2024
Slide 1: United Bankshares, Inc. (UBSI) Third Quarter 2024 Earnings Review
United Bankshares, Inc. (UBSI) Third Quarter 2024 Earnings Review October 24, 2024
Slide 2: Forward Looking Statements
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 sta
Slide 3: 3Q24 Highlights
3Q24 HIGHLIGHTS • Achieved Net Income of $95.3 million and Diluted Earnings Per Share of $0.70 • Generated Return on Average Assets of 1.28%, Return on Average Equity of 7.72%, and Return on Average Tangible Equity* of 12.59% • Net Interest Margin (FTE) increased from 3.50% to 3.52% • Period-end dep
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 3Q24 2Q24 3Q23 Interest & Fees Income $ 382,723 $ 374,184 $ 356,910 Interest Expense $ 152,467 $ 148,469 $ 128,457 Net Interest Income $ 230,256 $ 225,715 $ 228,453 Provision for Credit Losses $ 6,943 $ 5,779 $ 5,948 Noninterest
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.40% 70.00% 1.20% 60.00% 1.00% 50.00% 0.80% 40.00% 0.60% 30.00% 0.40% 20.00% 0.20% 10.00% 0.00% 0.00% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Return on Average Return on Average Common Eq
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% 5.00% $175 3.00% $150 2.50% 4.00% $125 2.00% $100 3.00% 1.50% $75 $50 1.00% 2.00% $25 0.50% 1.00% $0 0.00% 3Q23 4Q23 1Q24 2Q24 3Q24 Loan PA Accretion 2.3 3.0 2.5 2.4 2
Slide 7: Loan Summary
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) Loans, EOP 3Q24 % of Total LQ Change $21,115 $21,373 $21,533 $21,610 $21,631 Owner Occupied CRE $ 1,583 7.3% $ (18) $22,000 $20,000 Non Owner Occupied CRE $ 7,021 32.5% $ (47) $18,000 Commercial $ 3,397 15.7% $ (53) $16,000 Residential Real Estate $ 5,419
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/24 9/30/24 Non-Accrual Loans $52,929 $52,446 90-Day Past Due Loans $12,402 $12,794 Total Non-performing Loans $65,331 $65,240 Other Real Estate Owned $2,156 $169 Total Non-performing Assets $67,487 $65,409 Non-performing Loans / Loans 0.30% 0.30% Non
Slide 9: Deposit Summary
DEPOSIT SUMMARY Deposits, EOP 3Q24 % of Total LQ Change Non Interest Bearing $ 6,038 25.3% $ 106 $25,000 $23,828 Interest Bearing Transaction $ 5,890 24.7% $ 195 $22,677 $22,819 $22,920 $23,066 Regular Savings $ 1,255 5.3% $ (30) $20,000 Money Market Accounts $ 7,115 29.9% $ 457 Time Deposits < $100
Slide 10: Liquidity Position & Additional Deposit Detail
LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL Deposit Account Details ($ in millions) End of Period Ratios / Values 9/30/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $7,448 31% Estimated Insured/Collateralized Deposits $16,380 69% Total Deposits $
Slide 11: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#7 overall) with $10.1 • #1 in the state with $6.3 billion in billion in deposits. deposits. • United has increased deposit market • United ranks #1 or #2 in deposit share in the D.C. MSA from #15 in 2013
Slide 12: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 6/30/24 9/30/24** Common Equity Tier 1 Ratio 13.5% 13.8% Tier 1 Capital Ratio 13.5% 13.8% Total Risk Based Capital Ratio 15.8% 16.2% Leverage Ratio 11.6% 11.7% Total Equity to Total Assets 16.2% 16.6% *Tangible Equity to Tangible Assets
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. The guidance represents UBSI on a standalone basis and does not include any assumed impact from the Piedmont acquisition. • Balance Sheet: Expect loan g
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: Piedmont Merger - Announced May 10, 2024
PIEDMONT MERGER- ANNOUNCED MAY 10, 2024 • Headquarters: Peachtree Corners, GA Piedmont Overview • Total Assets: $2.1 billion(1) • High-performing Franchise(2): 1.43% LTM ROAA; 14.9% LTM ROATCE; LTM Net Interest Margin 4.25%; NPAs / Assets 0.00% • Continuation of UBSI’s proven M&A strategy | UBSI’s 3
Slide 16: Piedmont Merger - Pro Forma Franchise
PIEDMONT MERGER- PRO FORMA FRANCHISE ~$31.8 Billion Total Assets 227 Locations ~$23.7 Billion Net Loans 16 Locations ~$25.5 Billion Total Deposits Pro Forma 243 Locations Tangible Common ~$3.1 Billion Equity 16 Note: Pro forma financial information at anticipated closing date based on assumptions at
Slide 17: Demonstrated History of Successful Acquisitions
DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS 40.0 35.0 $31.8 $29.5 $29.9 $30.0 30.0 $29.3 $26.2 25.0 Total Assets ($B) $19.3 $19.7 20.0 $19.1 $14.5 15.0 $12.3 $12.6 10.0 $8.7 5.0 0.0 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 PF at Close (1) Estimated total pro forma
Slide 18: Appendix
APPENDIX UNITED BANKSHARES, INC.
Slide 19: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 3Q23 4Q23 1Q24 2Q24 3Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $96,157 $79,390 $86,814 $96,507 $95,267 (B) Number of Days in the Quarter 92 92 91 91 92 Average Total Shareholders' Equity (GAAP) $4,687,124 $4,697,680 $4,816
Slide 20: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 6/30/2024 9/30/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,957,418 $ 29,863,262 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Assets (non-GAAP) $ 28,057,844 $ 27,964,597 Total Shareholders' Equ