United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2021 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Oct 26, 2021
Slide 1: Third Quarter 2021 Earnings Review
Third Quarter 2021 Earnings Review United Bankshares, Inc. October 26, 2021 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: 3Q21 Highlights
Achieved quarterly Net Income of $92.2 million and quarterly Diluted Earnings Per Share of $0.71 Generated Return on Average Assets of 1.33%, Return on Average Equity of 8.23%, and Return on Average Tangible Equity* of 14.03% Achieved period-end annualized loan growth of 5.6% (excluding PPP loans) R
Slide 4: Earnings Summary
Linked-Quarter (LQ) Net Income was $92.2 million in 3Q21 compared to $94.8 million in 2Q21, with diluted EPS of $0.71 in 3Q21 compared to $0.73 in 2Q21. Net Interest Income decreased $4.9 million with loan accretion on acquired loans and PPP loan fee income decreasing $1.5 million and $1.2 million,
Slide 5: Performance Ratios
Strong profitability and expense control PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
Reported Net Interest Margin decreased from 3.14% to 2.98% LQ mainly due to growth in interest bearing cash, a change in the mix of earnings assets, and declines in loan accretion on acquired loans and PPP fee income. Linked-quarter Net Interest Income (FTE) was down $5.0 million, with loan accretio
Slide 7: Loan Summary
Linked-Quarter loan balances decreased $151 million driven by paydowns on PPP loans of $378 million. Excluding the impact of PPP loans, total loans increased $227 million (5.6% annualized) driven by Non Owner Occupied CRE and Construction loans. Revolving Line of Credit balances within Commercial lo
Slide 8: Credit Quality
End of Period Balances (000s) 6/30/21 9/30/21 Non-Accrual Loans $41,182 $37,689 90-Day Past Due Loans $14,135 $14,827 Restructured Loans $47,271 $37,752 Total Non-performing Loans $102,588 $90,268 Other Real Estate Owned $18,474 $16,696 Total Non-performing Assets $121,062 $106,964 Non-performing Lo
Slide 9: Diversified portfolio with strong underwriting practices and ongoing monitoring
Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio Portfolio Balance ($ MM) % Total Loans Commercial Retail CRE 1,348 8.0% Hotels 803 4.8% Entertainment & Recreation 246 1.5% Healthcare & Senior Living 215 1.3% Restaurants 183 1.1% Energy (Direct & Indirect) 13
Slide 10: Paycheck Protection Program (PPP)
PPP Loan Activity Originated over 13,500 loans for $1.8 billion since program inception in 2020 Maintained an “all hands on deck” approach in order to assist as many customers as possible Outstandings decreased $378 million in 3Q21 Remaining outstandings at 9/30/21: Over 4,000 loans totaling $412 mi
Slide 11: Deposit Summary
Strong core deposit base with 39% of deposits in Non Interest Bearing accounts. LQ deposits increased $255 million. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets with a dominant market share position. Top 10 Deposit Markets by MSA (as of 6/30/2
Slide 12: 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 13: Capital Ratios and Per Share Data
End of Period Ratios / Values 6/30/21 9/30/21** Common Equity Tier 1 Ratio 13.7% 13.5% Tier 1 Capital Ratio 13.7% 13.5% Total Risk Based Capital Ratio 15.9% 15.7% Leverage Ratio 10.3% 10.4% Total Equity to Total Assets 16.2% 16.1% *Tangible Equity to Tangible Assets (non-GAAP) 10.1% 10.1% Book Value
Slide 14: Mortgage Banking Segment
Three Months Ended (000s) 6/30/21 9/30/21 Applications $2,029,846 $1,893,870 Loans Originated $1,658,128 $1,385,871 Loans Sold $1,877,772 $1,470,928 Purchase Money % 69% 69% Realized Gain on Sale Margin 2.90% 3.00% Locked Pipeline (EOP) $660,258 $648,706 Loans Held for Sale (EOP) $576,827 $493,299 B
Slide 15: 2021 Guidance and Outlook
Select guidance is being provided for 2021. Our outlook may change if the expectations for these items vary from current expectations. Community Bankers Trust Corporation (ESXB) Merger: Expect to close the ESXB merger in 4Q21, subject to approval by the shareholders of ESXB. Requisite approvals for
Slide 16: Investment Thesis
Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.8% (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 ownership 47 consecutive yea
Slide 17: Community Bankers Trust (ESXB) Merger Transaction Details
Advancing Strategy Financially Attractive Transaction Transaction Details As of March 31, 2021 Assumes fully phased in cost save estimates Headquarters: Richmond, VA Founded: 1926 Ticker: ESXB (NASDAQ) Total Assets: $1.7 Billion (1) Enhances density and scale in highly attractive markets throughout
Slide 18: ESXB Merger - Pro Forma Franchise
ESXB 26 Locations ~$29 Billion Tangible Equity Total Deposits Net Loans Total Assets Pro Forma Franchise Footprint ~$19 Billion ~$23 Billion ~$2.7 Billion UBSI 222 Locations Source:S&P Global Market Intelligence Note:Pro forma figures as of respective March 31, 2021 data; Locations include mortgage
Slide 19: Successful Acquisitions Advancing Growth and Enhancing Franchise Value
Source:S&P Global Market Intelligence Closed 3Q 2011 Closed 1Q 2014 Closed 2Q 2016 Closed 2Q 2017 Closed 2Q 2020 Announced 2Q 2021 SUCCESSFUL ACQUISITIONS ADVANCING GROWTH AND ENHANCING FRANCHISE VALUE
Slide 20: Appendix
APPENDIX
Slide 21: Reconciliation of Non-GAAP Items
(dollars in thousands) 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $103,784 $92,370 $106,898 $94,836 $92,152 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equity (GAAP) $4,263,111 $4,319,252 $4,346,750
Slide 22: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 6/30/2021 9/30/2021 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 27,190,926 $ 27,507,517 Less: Total Intangibles (GAAP) (1,834,030) (1,832,564) Tangible Assets (non-GAAP) $ 25,356,896 $ 25,674,953 Total Shareholders' Equity (GAAP) $ 4,393,713 $ 4,430,766 Less: