United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2023 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Jan 26, 2024
Slide 1: Fourth Quarter & Fiscal Year 2023 Earnings Review
Fourth Quarter & Fiscal Year 2023 Earnings Review United Bankshares, Inc. January 26, 2024 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: 2023 Highlights
Achieved Net Income of $366.3 million and Diluted Earnings Per Share of $2.71 Generated Return on Average Assets of 1.25%, Return on Average Equity of 7.87%, and Return on Average Tangible Equity* of 13.33% Increased dividends to shareholders for the 50th consecutive year (current dividend yield of
Slide 4: Linked-Quarter Results
Linked-Quarter (LQ) Net Income was $79.4 million in 4Q23 compared to $96.2 million in 3Q23, with diluted EPS of $0.59 in 4Q23 compared to $0.71 in 3Q23. Net Interest Income increased $1.2 million primarily due to organic loan growth and a higher yield on net loans and loans held for sale, partially
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 Income and Net Interest Margin
Reported Net Interest Margin increased from 3.54% to 3.55% LQ. Linked-quarter Net Interest Income (FTE) increased $1.2 million primarily due to organic loan growth and a higher yield on net loans and loans held for sale, partially offset by higher interest expense driven by deposit rate repricing. A
Slide 7: Loan Portfolio
Linked-Quarter loan balances increased $258 million primarily driven by Residential Real Estate and Non Owner Occupied CRE loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 10.5% annualized in 4Q23, and up 13.3% YTD in 2023. Non Owner Occupi
Slide 8: Asset Quality
End of Period Balances (000s) 9/30/23 12/31/23 Non-Accrual Loans $24,456 $30,919 90-Day Past Due Loans $18,283 $14,579 Total Non-performing Loans $42,739 $45,498 Other Real Estate Owned $3,181 $2,615 Total Non-performing Assets $45,920 $48,113 Non-performing Loans / Loans 0.20% 0.21% Non-performing
Slide 9: Deposits
Strong core deposit base with 27% of deposits in Non Interest Bearing accounts. LQ deposits increased $142 million driven by Interest Bearing Transaction accounts and Time Deposits, partially offset by declines in other categories. Brokered deposits total $272 million (only 1.2% of total deposits),
Slide 10: Liquidity Position & Additional Deposit Detail
Deposit Account Details ($ in millions) End of Period Ratios / Values 12/31/23 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,453 28% Estimated Insured/Collateralized Deposits $16,366 72% Total Deposits $22,819 100% No borrowings from the FRB Discoun
Slide 11: Deposit Market Franchise
West Virginia #2 in the state (second only to Truist) with $6.0 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
Slide 12: Capital Ratios and Per Share Data
End of Period Ratios / Values 9/30/23 12/31/23** Common Equity Tier 1 Ratio 13.0% 13.1% Tier 1 Capital Ratio 13.0% 13.1% Total Risk Based Capital Ratio 15.2% 15.4% Leverage Ratio 11.3% 11.4% Total Equity to Total Assets 15.9% 15.9% *Tangible Equity to Tangible Assets (non-GAAP) 10.0% 10.2% Book Valu
Slide 13: Mortgage Banking Segment
Three Months Ended (000s) 9/30/23 12/31/23 Applications $458,818 $564,766 Loans Originated $342,131 $431,351 Loans Sold $367,679 $370,213 Purchase Money % 94% 87% Realized Gain on Sale Margin 2.29% 2.11% Locked Pipeline (EOP) $99,988 $93,368 Loans Held for Sale (EOP) $59,614 $56,261 Balance of Loans
Slide 14: 2024 Guidance
Select guidance is being provided for 2024. 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 2024 (compared to 4Q23 end of period balance). Loan pipelines co
Slide 15: 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 16: Appendix
APPENDIX
Slide 17: Reconciliation of Non-GAAP Items
(dollars in thousands) 2019 2020 2021 2022 2023 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $260,099 $289,023 $367,738 $379,627 $366,313 Average Total Shareholders' Equity (GAAP) $3,336,075 $3,956,969 $4,430,688 $4,601,440 $4,654,103 Less: Average Total Intangibles (1,511,501) (1,716
Slide 18: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 9/30/2023 12/31/2023 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,224,794 $ 29,926,482 Less: Total Intangibles (GAAP) (1,903,949) (1,901,394) Tangible Assets (non-GAAP) $ 27,320,845 $ 28,025,088 Total Shareholders' Equity (GAAP) $ 4,648,878 $ 4,771,240 Less: