United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2022 Earnings Presentation
20 slides from United Bankshares's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Earnings Review
United Bankshares, Inc. First Quarter 2022 Earnings Review April 26, 2022 1
Slide 2: Important Information: Forward Looking Statements
IMPORTANT INFORMATION 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. T
Slide 3: 1Q22 Highlights
1Q22 HIGHLIGHTS • Achieved Net Income of $81.7 million and Diluted Earnings Per Share of $0.60 • Generated Return on Average Assets of 1.13%, Return on Average Equity of 6.96%, and Return on Average Tangible Equity* of 11.63% • Achieved period end annualized loan growth of 10.8% (excluding PPP loans
Slide 4: ESXB Merger Update
ESXB MERGER UPDATE New Franchise Footprint Update • Closed the merger with Community Bankers Trust Corporation (ESXB) on December 3, 2021 • Strategically connects UBSI’s Mid- Atlantic and Southeast footprint Charleston Charlottesville • Adds to existing presence in Washington D.C. MSA Lynchburg • Ex
Slide 5: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 1Q22 4Q21 1Q21 Interest & Fees Income $ 202,795 $ 195,194 $ 205,657 Interest Expense $ 11,293 $ 11,516 $ 14,697 Net Interest Income $ 191,502 $ 183,678 $ 190,960 Provision for Credit Losses $ (3,410) $ (7,405) $ 143 Noninterest
Slide 6: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.80% 70.00% 1.60% 60.00% 1.40% 50.00% 1.20% 1.00% 40.00% 0.80% 30.00% 0.60% 20.00% 0.40% 10.00% 0.20% 0.00% 0.00% 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Return on Average Return on Avera
Slide 7: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Average Yields Net Interest Income & Net Interest Margin 4.50% $200 4.00% $180 3.50% 4.00% $160 3.00% $140 3.50% 2.50% $120 3.00% $100 2.00% $80 1.50% 2.50% $60 1.00% $40 2.00% $20 0.50% $0 0.00% 1.50% 1Q21 2Q21 3Q21 4Q21 1Q22 1.00% PPP Fee Income 11.3 9.0 7.9 5.0 4.1
Slide 8: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 1Q22 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,698 9.2% $ (35) $20,000 $18,419 $17,400 $16,922 $18,051 Non Owner Occupied CRE $ 6,048 32.8% $ 91 $18,000 $16,771 Commercial $ 3,344 18.2% $ 185 $16,000 Paycheck Protection Program $ 190 1.0% $ (1
Slide 9: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/21 3/31/22 Non-Accrual Loans $36,028 $34,093 90-Day Past Due Loans $18,879 $15,179 Restructured Loans $35,856 $30,582 Total Non-performing Loans $90,763 $79,854 Other Real Estate Owned $14,823 $13,641 Total Non-performing Assets $105,586 $93,495 Non
Slide 10: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (PPP) PPP Loan Activity • Originated over 13,500 loans for $1.8 billion since PPP Fees Recognized, net of costs ($ millions)* program inception in 2020 1Q21 2Q21 3Q21 4Q21 1Q22 • Maintained an “all hands on deck” approach in $11.31 $9.02 $7.85 $5.04 $4.10 order to assist
Slide 11: Deposit Summary
DEPOSIT SUMMARY 1Q22 % of Total LQ Change Deposits, EOP Demand Deposits $ 9,007 38.4% $ 26 $25,000 $23,474 Interest Bearing Checking $ 3,823 16.3% $ 88 $23,350 $21,396 $21,567 $21,823 Regular Savings $ 1,705 7.3% $ 64 $20,000 Money Market Accounts $ 6,548 27.9% $ 186 Time Deposits < $100,000 $ 982 4
Slide 12: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#7 overall) with $10.4 • #2 in the state (second only to billion in deposits. Truist) with $6.1 billion in deposits. • United has increased deposit market share in the D.C. MSA from #15 in 2013 to • United
Slide 13: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 12/31/21 3/31/22** Common Equity Tier 1 Ratio 13.4% 13.0% Tier 1 Capital Ratio 13.4% 13.0% Total Risk Based Capital Ratio 15.4% 15.1% Leverage Ratio 11.0% 10.4% Total Equity to Total Assets 16.1% 15.7% *Tangible Equity to Tangible Asset
Slide 14: Mortgage Banking
MORTGAGE BANKING Three Months Ended (000s) 12/31/21 3/31/22 Applications $1,534,311 $1,696,504 Loans Originated $1,287,629 $1,006,363 Loans Sold $1,273,014 $1,170,124 Purchase Money % 69% 73% Realized Gain on Sale Margin 3.02% 2.98% Locked Pipeline (EOP) $448,889 $412,809 Loans Held for Sale (EOP) $
Slide 15: 2022 Outlook
2022 OUTLOOK Select guidance is being provided for 2022. Our outlook may change if the expectations for these items vary from current expectations. • Balance Sheet: Expect loan growth, excluding PPP loans and loans held for sale, to be in the mid single digits for the remainder of 2022 (annualized).
Slide 16: Investment Thesis
INVESTMENT THESIS • Excellent franchise with long-term growth prospects • Current income opportunity with a dividend yield of 4.2% (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
Slide 17: Appendix
APPENDIX 17
Slide 18: ESXB Merger - Additional Information
ESXB MERGER- ADDITIONAL INFORMATION Merger-related expense detail 1Q21 2Q21 3Q21 4Q21 YTD 2021 1Q22 Provision --- --- --- $12.3 $12.3 --- Employee Comp. --- --- --- $2.6 $2.6 --- Data Processing --- --- --- $3.5 $3.5 --- Other Expense --- $0.2 $0.8 $2.0 $3.0 $0.5 Total --- $0.2 $0.8 $20.4 $21.4 $0.5
Slide 19: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $106,898 $94,836 $92,152 $73,852 $81,664 (B) Number of Days in the Quarter 90 91 92 92 90 Average Total Shareholders' Equity (GAAP) $
Slide 20: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 12/31/2021 3/31/2022 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,328,902 $ 29,365,511 Less: Total Intangibles (GAAP) (1,910,907) (1,912,278) Tangible Assets (non-GAAP) $ 27,417,995 $ 27,453,233 Total Shareholders' Eq