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
Second Quarter 2023 Earnings Review United Bankshares, Inc. July 27, 2023 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: 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 Companies in America 2
Slide 4: Linked-quarter net income and income statement drivers
Linked-Quarter (LQ) Net Income was $92.5 million in 2Q23 compared to $98.3 million in 1Q23, with diluted EPS of $0.68 in 2Q23 compared to $0.73 in 1Q23. Net Interest Income decreased $6.9 million primarily due to higher interest expense driven by deposit rate repricing partially offset by higher int
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin decreased from 3.63% to 3.51% LQ. Linked-quarter Net Interest Income (FTE) decreased $6.9 million primarily due to higher interest expense driven by deposit rate repricing partially offset by higher interest income on net loans and loans held for sale driven by rising ma
Slide 7: Loan portfolio and growth
Linked-Quarter loan balances increased $151 million primarily driven by Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 12.1% annualized in 2Q23, and up 10.7% annualized YTD. Non Owner Occupied CRE to Total Risk Bas
Slide 8: Asset quality and non-performing assets
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% Non-performing A
Slide 9: Deposit base and top deposit markets
Strong core deposit base with 29% of deposits in Non Interest Bearing accounts. LQ deposits increased $85 million driven by Interest Bearing Transaction accounts and Time Deposits, partially offset by declines in other categories. Brokered deposits total $411 million (only 1.8% of total deposits), w
Slide 10: Liquidity Position & Additional Deposit Detail
Deposit Account Details ($ 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 $22,370 100% No borrowings from the FRB Discount
Slide 11: Franchise footprint by state and market
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 12: 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 (non-GAAP) 9.5% 9.8% Book Value P
Slide 13: Mortgage Banking Segment
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 Balance of Loans
Slide 14: 2023 Guidance
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 investment por
Slide 15: 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 of dividend increases e
Slide 16: Appendix
APPENDIX
Slide 17: 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) $4,606,186 $4,542,100 $4,498,378 $
Slide 18: 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' Equity (GAAP) $ 4,606,537 $ 4,637,043 Less: