United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2022 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Jan 26, 2023
Slide 1: United Bankshares, Inc. Fourth Quarter & Fiscal Year 2022 Earnings Review
United Bankshares, Inc. Fourth Quarter & Fiscal Year 2022 Earnings Review January 26, 2023 1
Slide 2: Important Information
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: 2022 Highlights
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
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended Year Ended 4Q22 3Q22 4Q21 2022 2021 Interest & Fees Income $ 307,741 $ 263,683 $ 195,194 $ 1,001,990 $ 795,117 Interest Expense $ 58,337 $ 23,061 $ 11,516 $ 105,559 $ 52,383 Net Interest Income $ 249,404 $ 240,622 $ 183,678 $ 89
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control Return on Average Assets Efficiency Ratio 1.60% 60.00% 1.40% 50.00% 1.20% 40.00% 1.00% 0.80% 30.00% 0.60% 20.00% 0.40% 10.00% 0.20% 0.00% 0.00% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Return on Average Return on Average Common Equ
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Average Yields Net Interest Income & Net Interest Margin 6.00% $250 4.50% $225 4.00% $200 3.50% 5.00% $175 3.00% $150 2.50% 4.00% $125 2.00% $100 $75 1.50% 3.00% $50 1.00% $25 0.50% $0 0.00% 2.00% 4Q21 1Q22 2Q22 3Q22 4Q22 PPP Fee Income 5.0 4.1 3.6 1.6 0.3 1.00% Loan P
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 4Q22 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,725 8.4% $ (23) $22,000 $20,580 $18,994 $19,722 Non Owner Occupied CRE $ 6,287 30.5% $ 262 $20,000 $18,419 $18,000 $18,051 Commercial $ 3,578 17.4% $ 83 $16,000 Paycheck Protection Program $ 35 0.
Slide 8: Credit Quality
CREDIT 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-p
Slide 9: Deposit Summary
DEPOSIT SUMMARY 4Q22 % of Total LQ Change Deposits, EOP Non Interest Bearing $ 7,200 32.3% $ (419) $25,000 $23,350 $23,474 Interest Bearing Transaction $ 5,117 22.9% $ (202) $23,027 $22,863 $22,303 Regular Savings $ 1,678 7.5% $ (63) $20,000 Money Market Accounts $ 6,299 28.2% $ 98 Time Deposits < $
Slide 10: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#7 overall) with $10.2 • #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 11: Capital Ratios and Per Share Data
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 Asset
Slide 12: Mortgage Banking
MORTGAGE BANKING Three Months Ended Full Year (000s) 9/30/22 12/31/22 2021 2022 Applications $785,529 $447,951 $8,088,453 $4,089,086 Loans Originated $552,487 $399,706 $6,242,246 $2,913,708 Loans Sold $564,267 $396,735 $6,439,598 $3,203,749 Purchase Money % 86% 85% 61% 81% Realized Gain on Sale Marg
Slide 13: 2023 Outlook
2023 OUTLOOK 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). Lo
Slide 14: Investment Thesis
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
Slide 15: Appendix
APPENDIX 15
Slide 16: Reconciliation of Non-GAAP Items
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 Tot
Slide 17: Reconciliation of Non-GAAP Items (Cont.)
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' Eq