United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q2 2023 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Earnings Review
United Bankshares, Inc. Second Quarter 2023 Earnings Review July 27, 2023 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: 2Q23 Highlights
2Q23 HIGHLIGHTS • Achieved Net Income of $92.5 million and Diluted Earnings Per Share of $0.68 • Generated Return on Average Assets of 1.26%, Return on Average Equity of 7.96%, and Return on Average Tangible Equity* of 13.47% • Ranked #1 most trustworthy bank in Newsweek’s list of “Most Trustworthy
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 2Q23 1Q23 2Q22 Interest & Fees Income $ 345,932 $ 329,303 $ 227,771 Interest Expense $ 118,471 $ 94,983 $ 12,868 Net Interest Income $ 227,461 $ 234,320 $ 214,903 Provision for Credit Losses $ 11,440 $ 6,890 $ (1,807) Noninteres
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.60% 60.00% 1.40% 50.00% 1.20% 40.00% 1.00% 0.80% 30.00% 0.60% 20.00% 0.40% 10.00% 0.20% 0.00% 0.00% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Return on Average Return on Average Common Equ
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% $100 4.00% $75 1.50% $50 1.00% 3.00% $25 0.50% $0 0.00% 2Q22 3Q22 4Q22 1Q23 2Q23 2.00% PPP Fee Income 3.6 1.6 0.3 0.2 0.1 1.00%
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 2Q23 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,708 8.2% $ (0) $22,000 $20,631 $20,782 $20,580 Non Owner Occupied CRE $ 6,572 31.6% $ 37 $18,994 $19,722 $20,000 Commercial $ 3,528 17.0% $ 46 $18,000 $16,000 Paycheck Protection Program $ 23 0.1%
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 3/31/23 6/30/23 Non-Accrual Loans $29,296 $26,545 90-Day Past Due Loans $13,105 $15,007 Total Non-performing Loans $42,401 $41,552 Other Real Estate Owned $4,086 $3,756 Total Non-performing Assets $46,487 $45,308 Non-performing Loans / Loans 0.21% 0.20% N
Slide 9: Deposit Summary
DEPOSIT SUMMARY 2Q23 % of Total LQ Change Deposits, EOP Non Interest Bearing $ 6,451 28.8% $ (257) $25,000 $23,027 $22,863 Interest Bearing Transaction $ 5,246 23.4% $ 403 $22,303 $22,285 $22,370 Regular Savings $ 1,484 6.6% $ (95) $20,000 Money Market Accounts $ 6,078 27.2% $ (103) Time Deposits <
Slide 10: Liquidity Position & Additional Deposit Detail
LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL Deposit Account Details ($ in millions) End of Period Ratios / Values 6/30/23 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,697 30% Estimated Insured/Collateralized Deposits $15,673 70% 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 $10.2 • #2 in the state (second only to billion in deposits. Truist) with $6.1 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 3/31/23 6/30/23** Common Equity Tier 1 Ratio 12.5% 12.8% Tier 1 Capital Ratio 12.5% 12.8% Total Risk Based Capital Ratio 14.7% 15.1% Leverage Ratio 10.8% 11.0% Total Equity to Total Assets 15.3% 15.6% *Tangible Equity to Tangible Assets
Slide 13: Mortgage Banking
MORTGAGE BANKING Three Months Ended (000s) 3/31/23 6/30/23 Applications $505,840 $588,734 Loans Originated $312,077 $416,255 Loans Sold $301,476 $399,632 Purchase Money % 92% 94% Realized Gain on Sale Margin 2.17% 2.27% Locked Pipeline (EOP) $92,639 $93,417 Loans Held for Sale (EOP) $68,176 $91,296
Slide 14: 2023 Outlook
2023 OUTLOOK Select guidance is being provided for 2023. 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 2023 (annualized). Expect
Slide 15: 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 • 49 consecutive years
Slide 16: Appendix
APPENDIX 16
Slide 17: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $95,613 $102,585 $99,765 $98,307 $92,459 (B) Number of Days in the Quarter 91 92 92 90 91 Average Total Shareholders' Equity (GAAP) $
Slide 18: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 3/31/2023 6/30/2023 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 30,182,241 $ 29,694,651 Less: Total Intangibles (GAAP) (1,906,507) (1,905,228) Tangible Assets (non-GAAP) $ 28,275,734 $ 27,789,423 Total Shareholders' Equ