United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2017 Earnings Presentation
15 slides from United Bankshares's earnings presentation, Oct 26, 2017
Slide 1: Third Quarter 2017 Earnings Review
United Bankshares, Inc. Third Quarter 2017 Earnings Review October 26, 2017 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and statements made by United Bankshares, Inc. (“United”) and its management may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified
Slide 3: 3Q17 Highlights
3Q17 HIGHLIGHTS Net income of $56.7 million with diluted earnings per share of $0.54 Generated return on average assets of 1.19%, return on average equity of 6.89%, and *return on average tangible equity of 13.02% Quarterly dividend of $0.33 per share equates to a yield of 3.6% based upon recent sto
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) LQ Net Income was up $19.7 million to $56.7 million. EPS increased to $0.54 LQ due primarily to a reduction in merger expenses (down $22.6 million) and an increase in net interest income. Net Interest Income increased $14 million due to higher average earnings as
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. 2Q17 impacted by $23 million in merger expenses. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Margin increased from 3.44% to 3.65% LQ. Increase in Net Interest Margin LQ driven primarily by increased loan accretion from the Cardinal acquisition. Loan accretion associated with acquired loans increased to $12.8 million in 3Q17. Scheduled loan accreti
Slide 7: Loan Summary
LOAN SUMMARY LQ decrease in loans driven by above average loan payoffs. Non Owner Occupied CRE to Total Risk Based Capital was approximately 300% at 3Q17 compared to 322% at 3Q16. CRE portfolio continues to perform exceptionally well and remains diversified among underlying collateral types. $ in th
Slide 8: Deposit Summary
DEPOSIT SUMMARY UBSI continues to have a strong core deposit franchise with almost 30% of the deposit base in Demand Deposits. LQ decline in EOP deposits was mainly due to a decline in brokered CD’s. Brokered CD’s (non-reciprocal) decreased $154 million LQ. $ in thousands 3Q17 % of Total LQ Change D
Slide 9: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/17 9/30/17 Non Accrual Loans $96,679 $100,016 90-Day Past Due Loans $8,489 $22,249 Restructured Loans $49,037 $46,132 Total Non Performing Loans $154,205 $168,397 Other Real Estate Owned $28,157 $26,826 Total Non Performing Assets $182,362 $195,223 N
Slide 10: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 6/30/17 9/30/17 Common Equity Tier 1 Ratio 11.4% 12.0% Tier 1 Capital Ratio 11.4% 12.0% Total Risk Based Capital Ratio 13.6% 14.3% Leverage Ratio 10.4% 10.1% Total Equity to Total Assets 17.0% 17.1% *Tangible Equity to Tangible Assets 9.7
Slide 11: George Mason Mortgage
GEORGE MASON MORTGAGE GMM gain on sale revenue projected at approximately $88 million for 2018 with income before tax projected at approximately $5 million for 2018. Results could vary significantly from projections depending upon market conditions. GMM (000s) 2Q17 3Q17 Applications $1,367,000 $1,06
Slide 12: 2017 / 2018 Outlook
2017 / 2018 OUTLOOK Loans & Deposits: Expect 4Q17 portfolio loan growth to be soft. Annual loan and deposit growth rate in 2018 expected in the low to mid single digits. Net Interest Margin: Stable core NIM (excluding purchase accounting related loan accretion). Asset Quality: Stable asset quality m
Slide 13: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 14: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items October 2017 (dollars in thousands) 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $41,479 $39,106 $38,809 $37,059 $56,738 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equ
Slide 15: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) October 2017 (dollars in thousands) 6/30/2017 9/30/2017 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,035,600 $ 19,129,978 Less: Total Intangibles (GAAP) (1,538,640) (1,535,133) Tangible Assets (non-GAAP) $ 17,496,960 $ 17,594,845 Total Shar