United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — FY2022 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Jan 26, 2023
Slide 1: Fourth Quarter & Fiscal Year 2022 Earnings Review
Fourth Quarter & Fiscal Year 2022 Earnings Review United Bankshares, Inc. January 26, 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: 2022 Highlights
Achieved record Net Income of $379.6 million. Diluted Earnings Per Share were $2.80 Generated Return on Average Assets of 1.31%, Return on Average Equity of 8.25%, and Return on Average Tangible Equity* of 14.11% Achieved full-year period end loan growth of 15.7% (excluding PPP loans) Net Interest M
Slide 4: Linked-Quarter Net Income and Results
Linked-Quarter (LQ) Net Income was $99.8 million in 4Q22 compared to $102.6 million in 3Q22, with diluted EPS of $0.74 in 4Q22 compared to $0.76 in 3Q22. Net Interest Income increased $8.8 million primarily due to higher interest income on earning assets driven by rising market interest rates, organ
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control FY 2020 was impacted by COVID-19, CECL ACL build, pre-tax merger-related expenses of $54.2 million, and breakage fees of $10.4 million on three FHLB advance payoffs, largely offset by strong mortgage ba
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin increased from 3.78% to 3.87% LQ. Linked-quarter Net Interest Income (FTE) was up $8.8 million primarily due to higher interest income on earning assets driven by rising market interest rates, organic loan growth, and a change in the asset mix to higher earning assets. T
Slide 7: Loan Summary
Linked-Quarter loan balances increased $858 million primarily driven by Construction & Land Development loans, Residential Real Estate loans, and Non Owner Occupied CRE loans. Excluding the $8 million decline in PPP loans, total loans increased $866 million (17.6% annualized) compared to 3Q22. Loan
Slide 8: Asset Quality
End of Period Balances (000s) 9/30/22 12/31/22 Non-Accrual Loans $28,244 $23,685 90-Day Past Due Loans $18,254 $15,565 Restructured Loans $23,155 $19,388 Total Non-performing Loans $69,653 $58,638 Other Real Estate Owned $10,779 $2,052 Total Non-performing Assets $80,432 $60,690 Non-performing Loans
Slide 9: Deposits and Top 10 Deposit Markets
Strong core deposit base with 32% of deposits in Non Interest Bearing accounts. LQ deposits decreased $560 million driven by Non Interest Bearing accounts and Interest Bearing Transaction accounts. Interest bearing deposit beta of ~48% and total deposit beta of ~32% in 4Q22, and cumulative betas of
Slide 10: Deposit Market Positions 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 9/30/22 12/31/22** Common Equity Tier 1 Ratio 12.4% 12.3% Tier 1 Capital Ratio 12.4% 12.3% Total Risk Based Capital Ratio 14.4% 14.4% Leverage Ratio 10.7% 10.8% Total Equity to Total Assets 15.3% 15.3% *Tangible Equity to Tangible Assets (non-GAAP) 9.3% 9.5% Book Value
Slide 12: Mortgage Banking Segment
Three Months Ended (000s) 9/30/22 12/31/22 Applications $785,529 $447,951 Loans Originated $552,487 $399,706 Loans Sold $564,267 $396,735 Purchase Money % 86% 85% Realized Gain on Sale Margin 2.13% 1.82% Locked Pipeline (EOP) $131,846 $68,654 Loans Held for Sale (EOP) $210,075 $56,879 Balance of Loa
Slide 13: 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 mid single digits for 2023 (compared to 4Q22 end of period balance). Loan pipelines co
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 49 cons
Slide 15: Appendix
APPENDIX
Slide 16: Reconciliation of Non-GAAP Items
(dollars in thousands) 2018 2019 2020 2021 2022 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $256,342 $260,099 $289,023 $367,738 $379,627 Average Total Shareholders' Equity (GAAP) $3,268,944 $3,336,075 $3,956,969 $4,430,688 $4,601,440 Less: Average Total Intangibles (1,519,175) (1,511
Slide 17: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 9/30/2022 12/31/2022 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,048,475 $ 29,489,380 Less: Total Intangibles (GAAP) (1,909,165) (1,907,786) Tangible Assets (non-GAAP) $ 27,139,310 $ 27,581,594 Total Shareholders' Equity (GAAP) $ 4,440,086 $ 4,516,193 Less: