United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q2 2022 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Jul 28, 2022
Slide 1: Second Quarter 2022 Earnings Review
Second Quarter 2022 Earnings Review United Bankshares, Inc. July 28, 2022 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: 2Q22 Highlights
Achieved Net Income of $95.6 million and Diluted Earnings Per Share of $0.71 Generated Return on Average Assets of 1.32%, Return on Average Equity of 8.33%, and Return on Average Tangible Equity* of 14.23% Achieved period end annualized loan growth of 14.8% (excluding PPP loans) Net Interest Margin
Slide 4: Linked-Quarter Income Statement Summary
Linked-Quarter (LQ) Net Income was $95.6 million in 2Q22 compared to $81.7 million in 1Q22, with diluted EPS of $0.71 in 2Q22 compared to $0.60 in 1Q22. Net Interest Income increased $23.4 million primarily due to higher interest income on earning assets driven by rising market interest rates and a
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 6: Net Interest Income and Margin
Reported Net Interest Margin increased from 2.99% to 3.38% LQ. Linked-quarter Net Interest Income (FTE) was up $23.4 million primarily due to higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. Year 1 of a +100 bps r
Slide 7: Loan Summary
Linked-Quarter loan balances increased $575 million primarily driven by Residential Real Estate loans and Construction & Land Development loans. Excluding the $101 million decline in PPP loans, total loans increased $676 million (14.8% annualized) compared to 1Q22. As of 6/30/22, loan balances withi
Slide 8: Asset Quality
End of Period Balances (000s) 3/31/22 6/30/22 Non-Accrual Loans $34,093 $28,386 90-Day Past Due Loans $15,179 $16,443 Restructured Loans $30,582 $25,504 Total Non-performing Loans $79,854 $70,333 Other Real Estate Owned $13,641 $13,847 Total Non-performing Assets $93,495 $84,180 Non-performing Loans
Slide 9: 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 $101 million in 2Q22 Remaining outstandings at 6/30/22: Over 800 loans totaling $89 milli
Slide 10: Deposit Summary
Strong core deposit base with 39% of deposits in Non Interest Bearing accounts. LQ deposits decreased $448 million driven by Money Market and Time Deposit accounts. This includes declines in brokered deposits of $100 million. Interest bearing deposit beta of ~6% and total deposit beta of ~3% in 2Q22
Slide 11: 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 12: Capital Ratios and Per Share Data
End of Period Ratios / Values 3/31/22 6/30/22** Common Equity Tier 1 Ratio 13.0% 12.7% Tier 1 Capital Ratio 13.0% 12.7% Total Risk Based Capital Ratio 15.1% 14.8% Leverage Ratio 10.4% 10.5% Total Equity to Total Assets 15.7% 15.6% *Tangible Equity to Tangible Assets (non-GAAP) 9.8% 9.6% Book Value P
Slide 13: Mortgage Banking Segment
Three Months Ended (000s) 3/31/22 6/30/22 Applications $1,696,504 $1,159,102 Loans Originated $1,006,363 $955,152 Loans Sold $1,170,124 $1,072,623 Purchase Money % 73% 86% Realized Gain on Sale Margin 2.98% 2.40% Locked Pipeline (EOP) $412,809 $206,246 Loans Held for Sale (EOP) $340,040 $220,689 Bal
Slide 14: 2022 Guidance
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 loans held for sale, to be in the mid to high single digits for the remainder of 2022 (annualized). Loan pipelines conti
Slide 15: 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 / employee ownership 48 cons
Slide 16: Appendix
APPENDIX
Slide 17: Reconciliation of Non-GAAP Items
(dollars in thousands) 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $94,836 $92,152 $73,852 $81,664 $95,613 (B) Number of Days in the Quarter 91 92 92 90 91 Average Total Shareholders' Equity (GAAP) $4,378,898 $4,440,107 $4,551,634 $4
Slide 18: Reconciliation of Non-GAAP Items (cont.)
(dollars in thousands) 3/31/2022 6/30/2022 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,365,511 $ 28,777,896 Less: Total Intangibles (GAAP) (1,912,278) (1,910,544) Tangible Assets (non-GAAP) $ 27,453,233 $ 26,867,352 Total Shareholders' Equity (GAAP) $ 4,595,140 $ 4,487,050 Less: