United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2024 Earnings Presentation
20 slides from United Bankshares's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings Review
Third Quarter 2024 Earnings Review United Bankshares, Inc. (UBSI) October 24, 2024 Exhibit 99.2
Slide 2: 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 statements are intended to be
Slide 3: 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 deposits grew $762 million.
Slide 4: Linked-quarter net income and earnings summary
Linked-Quarter (LQ) Net Income was $95.3 million in 3Q24 compared to $96.5 million in 2Q24, with diluted EPS of $0.70 in 3Q24 compared to $0.71 in 2Q24. Net Interest Income increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans h
Slide 5: Performance Ratios
*Non-GAAP measure. Refer to appendix. Strong profitability and expense control 4Q23 was impacted by a $12.0 million expense related to the FDIC’s special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund. PERFORMANCE RATIOS
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin increased from 3.50% to 3.52% LQ. Linked-quarter Net Interest Income (FTE) increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partiall
Slide 7: Loan portfolio and CRE exposure
Linked-Quarter loan balances increased $21 million primarily driven by Construction & Land Development and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 10.2% annualized in 3Q24, and up 14.7% annualized YTD. Non O
Slide 8: Asset 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-performing Ass
Slide 9: Deposit Summary
Strong core deposit base with 25% of deposits in Non Interest Bearing accounts. LQ deposits increased $762 million driven by Money Market Accounts, Interest Bearing Transaction and Non Interest Bearing accounts. Brokered deposits declined $144 million compared to 2Q24 and now represent 0.0% of total
Slide 10: Deposit Account Details and Available Liquidity
Deposit Account Details ($ 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 $23,828 100% *Does not include other sources of
Slide 11: Deposit market share by state and MSA
West Virginia #1 in the state with $6.3 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 MSAs and stable, rural markets with a dominant market share p
Slide 12: 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 (non-GAAP) 10.5% 11.0% Book Value
Slide 13: 2024 Guidance
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 growth, excludin
Slide 14: 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 of dividend increases e
Slide 15: Piedmont Bancorp acquisition overview
Continuation of UBSI’s proven M&A strategy | UBSI’s 34th acquisition Entrance into Greater Atlanta Area markets with robust economic growth opportunities Enhances UBSI’s position as one of the premier regional banking companies in the Southeast and Mid-Atlantic Piedmont Overview Advancing Strategy F
Slide 16: Piedmont Merger - Pro Forma Franchise
Total Assets Note: Pro forma financial information at anticipated closing date based on assumptions at time of deal announcement Source: S&P Capital IQ Pro ~$25.5 Billion ~$31.8 Billion Net Loans Total Deposits Tangible Common Equity ~$23.7 Billion ~$3.1 Billion 227 Locations Pro Forma 16 Locations
Slide 17: Demonstrated History of Successful Acquisitions
(1) Estimated total pro forma assets at transaction close based on assumptions at time of deal announcement Source: S&P Capital IQ Pro; Company filings (1) DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS
Slide 18: Appendix
APPENDIX UNITED | BANKSHARES, INC.
Slide 19: 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 $4,816,476 $4,857,893 $4,908,866 Less:
Slide 20: 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' Equity (GAAP) $ 4,856,633 $ 4,967,820 Less: