United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2023 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Earnings Review
United Bankshares, Inc. Third Quarter 2023 Earnings Review October 25, 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: 3Q23 Highlights
3Q23 HIGHLIGHTS • Achieved Net Income of $96.2 million and Diluted Earnings Per Share of $0.71 • Generated Return on Average Assets of 1.31%, Return on Average Equity of 8.14%, and Return on Average Tangible Equity* of 13.71% • Ranked #1 most trustworthy bank in Newsweek’s list of “Most Trustworthy
Slide 4: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended 3Q23 2Q23 3Q22 Interest & Fees Income $ 356,910 $ 345,932 $ 263,683 Interest Expense $ 128,457 $ 118,471 $ 23,061 Net Interest Income $ 228,453 $ 227,461 $ 240,622 Provision for Credit Losses $ 5,948 $ 11,440 $ 7,671 Noninterest
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% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 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 7.00% $250 4.50% $225 4.00% 6.00% $200 3.50% $175 3.00% 5.00% $150 2.50% $125 2.00% $100 4.00% $75 1.50% $50 1.00% 3.00% $25 0.50% $0 0.00% 3Q22 4Q22 1Q23 2Q23 3Q23 2.00% PPP Fee Income 1.6 0.3 0.2 0.1 0.1 1.00%
Slide 7: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 3Q23 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,681 8.0% $ (27) $22,000 $20,782 $21,115 $19,722 $20,580 $20,631 Non Owner Occupied CRE $ 6,646 31.5% $ 73 $20,000 Commercial $ 3,527 16.7% $ (23) $18,000 $16,000 Residential Real Estate $ 5,017 23
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/23 9/30/23 Non-Accrual Loans $26,545 $24,456 90-Day Past Due Loans $15,007 $18,283 Total Non-performing Loans $41,552 $42,739 Other Real Estate Owned $3,756 $3,181 Total Non-performing Assets $45,308 $45,920 Non-performing Loans / Loans 0.20% 0.20% N
Slide 9: Deposit Summary
DEPOSIT SUMMARY 3Q23 % of Total LQ Change Deposits, EOP Non Interest Bearing $ 6,253 27.6% $ (197) $25,000 $22,863 Interest Bearing Transaction $ 5,345 23.6% $ 100 $22,303 $22,285 $22,370 $22,677 Regular Savings $ 1,395 6.2% $ (89) $20,000 Money Market Accounts $ 6,385 28.2% $ 307 Time Deposits < $1
Slide 10: Liquidity Position & Additional Deposit Detail
LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL Deposit Account Details ($ in millions) End of Period Ratios / Values 9/30/23 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,530 29% Estimated Insured/Collateralized Deposits $16,146 71% Total Deposits $
Slide 11: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#6 overall) with $9.9 • #2 in the state (second only to billion in deposits. Truist) with $6.0 billion in deposits. • United has increased deposit market share in the D.C. MSA from #15 in 2013 to • United
Slide 12: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 6/30/23 9/30/23** Common Equity Tier 1 Ratio 12.8% 13.0% Tier 1 Capital Ratio 12.8% 13.0% Total Risk Based Capital Ratio 15.1% 15.2% Leverage Ratio 11.0% 11.3% Total Equity to Total Assets 15.6% 15.9% *Tangible Equity to Tangible Assets
Slide 13: Mortgage Banking
MORTGAGE BANKING Three Months Ended (000s) 6/30/23 9/30/23 Applications $588,734 $458,818 Loans Originated $416,255 $342,131 Loans Sold $399,632 $367,679 Purchase Money % 94% 94% Realized Gain on Sale Margin 2.27% 2.29% Locked Pipeline (EOP) $93,417 $99,988 Loans Held for Sale (EOP) $91,296 $59,614
Slide 14: 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 low single digits for the 4th quarter of 2023 (annualized). Expect inve
Slide 15: Investment Thesis
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 • 49 consecutive years
Slide 16: Appendix
APPENDIX 16
Slide 17: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $102,585 $99,765 $98,307 $92,459 $96,157 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equity (GAAP) $
Slide 18: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 6/30/2023 9/30/2023 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,694,651 $ 29,224,794 Less: Total Intangibles (GAAP) (1,905,228) (1,903,949) Tangible Assets (non-GAAP) $ 27,789,423 $ 27,320,845 Total Shareholders' Equ