United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2022 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Earnings Review
Third Quarter 2022 Earnings Review United Bankshares, Inc. October 27, 2022 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: 3Q22 Highlights
Achieved Net Income of $102.6 million and Diluted Earnings Per Share of $0.76 Generated Return on Average Assets of 1.41%, Return on Average Equity of 8.96%, and Return on Average Tangible Equity* of 15.46% Achieved period end annualized loan growth of 16.4% (excluding PPP loans) Net Interest Margin
Slide 4: Linked-quarter net income and income statement drivers
Linked-Quarter (LQ) Net Income was $102.6 million in 3Q22 compared to $95.6 million in 2Q22, with diluted EPS of $0.76 in 3Q22 compared to $0.71 in 2Q22. Net Interest Income increased $25.7 million primarily due to higher interest income on earning assets driven by rising market interest rates and a
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 6: Net Interest Margin increased from 3.38% to 3.78%
Reported Net Interest Margin increased from 3.38% to 3.78% LQ. Linked-quarter Net Interest Income (FTE) was up $25.7 million primarily due to higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. The increase in net in
Slide 7: Loan Summary
Linked-Quarter loan balances increased $728 million primarily driven by Residential Real Estate loans and Construction & Land Development loans. Excluding the $45 million decline in PPP loans, total loans increased $773 million (16.4% annualized) compared to 2Q22. As of 9/30/22, loan balances within
Slide 8: Credit Quality
End of Period Balances (000s) 6/30/22 9/30/22 Non-Accrual Loans $28,386 $28,244 90-Day Past Due Loans $16,443 $18,254 Restructured Loans $25,504 $23,155 Total Non-performing Loans $70,333 $69,653 Other Real Estate Owned $13,847 $10,779 Total Non-performing Assets $84,180 $80,432 Non-performing Loans
Slide 9: Deposits and top deposit markets
Strong core deposit base with 41% of deposits in Non Interest Bearing accounts. LQ deposits decreased $163 million driven by Interest Bearing Checking and Time Deposit accounts. Interest bearing deposit beta of ~16% and total deposit beta of ~10% in 3Q22, and cumulative betas of ~13% and ~8%, respec
Slide 10: Deposit market position by state and MSA
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 11: Capital Ratios and Per Share Data
End of Period Ratios / Values 6/30/22 9/30/22** Common Equity Tier 1 Ratio 12.7% 12.4% Tier 1 Capital Ratio 12.7% 12.4% Total Risk Based Capital Ratio 14.8% 14.4% Leverage Ratio 10.5% 10.7% Total Equity to Total Assets 15.6% 15.3% *Tangible Equity to Tangible Assets (non-GAAP) 9.6% 9.3% Book Value P
Slide 12: Mortgage Banking Segment
Three Months Ended (000s) 6/30/22 9/30/22 Applications $1,159,102 $785,529 Loans Originated $955,152 $552,487 Loans Sold $1,072,623 $564,267 Purchase Money % 86% 86% Realized Gain on Sale Margin 2.40% 2.13% Locked Pipeline (EOP) $206,246 $131,846 Loans Held for Sale (EOP) $220,689 $210,075 Balance o
Slide 13: 4Q22 Guidance
Select guidance is being provided for 4Q22. 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 mid to high single digits for 4Q22 (annualized) compared to EOP 3Q22. Loan pipelines c
Slide 14: Investment Thesis
Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.7% (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 / employee ownership 48 cons
Slide 15: Appendix
APPENDIX
Slide 16: Reconciliation of Non-GAAP Items
(dollars in thousands) 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $92,152 $73,852 $81,664 $95,613 $102,585 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equity (GAAP) $4,440,107 $4,551,634 $4,759,780 $
Slide 17: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 6/30/2022 9/30/2022 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 28,777,896 $ 29,048,475 Less: Total Intangibles (GAAP) (1,910,544) (1,909,165) Tangible Assets (non-GAAP) $ 26,867,352 $ 27,139,310 Total Shareholders' Equity (GAAP) $ 4,487,050 $ 4,440,086 Less: