United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2021 Earnings Presentation
22 slides from United Bankshares's earnings presentation, Jan 27, 2022
Slide 1: Fourth Quarter & Fiscal Year 2021 Earnings Review
United Bankshares, Inc. Fourth Quarter & Fiscal Year 2021 Earnings Review January 27, 2022 1
Slide 2: Important Information: Forward Looking Statements
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: 2021 Highlights
2021 HIGHLIGHTS • Achieved record Net Income of $367.7 million and record Diluted Earnings Per Share of $2.83 • Generated Return on Average Assets of 1.35%, Return on Average Equity of 8.30%, and Return on Average Tangible Equity* of 14.18% • Closed the merger with Community Bankers Trust Corporatio
Slide 4: ESXB Merger Update
ESXB MERGER UPDATE New Franchise Footprint Update • Closed the merger with Community Bankers Trust Corporation (ESXB) on December 3, 2021 • Strategically connects UBSI’s Mid- Atlantic and Southeast footprint Charleston Charlottesville • Adds to existing presence in Washington D.C. MSA Lynchburg • Ex
Slide 5: Earnings Summary
EARNINGS SUMMARY In thousands, except per share data Three Months Ended Year Ended 4Q21 3Q21 4Q20 2021 2020 Interest & Fees Income $ 195,194 $ 194,080 $ 208,914 $ 795,117 $ 798,382 Interest Expense $ 11,516 $ 12,501 $ 16,925 $ 52,383 $ 108,609 Net Interest Income $ 183,678 $ 181,579 $ 191,989 $ 742,
Slide 6: 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% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Return on Average Return on Average Common Equ
Slide 7: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Average Yields Net Interest Income & Net Interest Margin 4.50% $200 4.00% $180 3.50% 4.00% $160 3.00% $140 3.50% 2.50% $120 3.00% $100 2.00% $80 1.50% 2.50% $60 1.00% $40 2.00% $20 0.50% $0 0.00% 1.50% 4Q20 1Q21 2Q21 3Q21 4Q21 1.00% PPP Fee Income 7.0 11.3 9.0 7.9 5.0
Slide 8: Loan Summary (Excludes Loans Held for Sale)
LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE) 4Q21 % of Total LQ Change Loans, EOP Owner Occupied CRE $ 1,733 9.6% $ 190 $20,000 Non Owner Occupied CRE $ 5,957 33.0% $ 758 $17,623 $17,400 $16,922 $16,771 $18,051 $18,000 Commercial $ 3,160 17.5% $ 342 $16,000 Paycheck Protection Program $ 302 1.7% $ (1
Slide 9: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 9/30/21 12/31/21 Non-Accrual Loans $37,689 $36,028 90-Day Past Due Loans $14,827 $18,879 Restructured Loans $37,752 $35,856 Total Non-performing Loans $90,268 $90,763 Other Real Estate Owned $16,696 $14,823 Total Non-performing Assets $106,964 $105,586 No
Slide 10: Select Loan Portfolio Details
SELECT LOAN PORTFOLIO DETAILS Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio % Total Portfolio Balance Loans ($ MM) • Total commercial deferrals have declined to $14 million (~0.1% of total commercial loans) as of 12/31/21. Commercial Retail CRE 1,273 7.1%
Slide 11: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (PPP) PPP Loan Activity • Originated over 13,500 loans for $1.8 billion since PPP Fees Recognized, net of costs ($ millions)* program inception in 2020 4Q20 1Q21 2Q21 3Q21 4Q21 • Maintained an “all hands on deck” approach in $6.98 $11.31 $9.02 $7.85 $5.04 order to assist
Slide 12: Deposit Summary
DEPOSIT SUMMARY 4Q21 % of Total LQ Change Deposits, EOP Demand Deposits $ 8,981 38.5% $ 490 $25,000 Interest Bearing Checking $ 3,734 16.0% $ 200 $21,823 $23,350 Regular Savings $ 1,641 7.0% $ 189 $21,396 $21,567 $20,585 Money Market Accounts $ 6,362 27.2% $ 257 $20,000 Time Deposits < $100,000 $ 1,
Slide 13: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION Washington D.C. MSA West Virginia • #1 regional bank (#7 overall) with $10.4 • #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 14: Capital Ratios and Per Share Data
CAPITAL RATIOS AND PER SHARE DATA End of Period Ratios / Values 9/30/21 12/31/21** Common Equity Tier 1 Ratio 13.5% 13.4% Tier 1 Capital Ratio 13.5% 13.4% Total Risk Based Capital Ratio 15.7% 15.4% Leverage Ratio 10.4% 11.0% Total Equity to Total Assets 16.1% 16.1% *Tangible Equity to Tangible Asset
Slide 15: Mortgage Banking
MORTGAGE BANKING Three Months Ended Full Year (000s) 9/30/21 12/31/21 2020 2021 Applications $1,893,870 $1,534,311 $9,988,227 $8,088,453 Loans Originated $1,385,871 $1,287,629 $6,648,247 $6,242,246 Loans Sold $1,470,928 $1,273,014 $6,393,394 $6,439,598 Purchase Money % 69% 69% 47% 61% Realized Gain
Slide 16: 2022 Outlook
2022 OUTLOOK 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 PPP loans and loans held for sale, to be in the mid single digits for 2022 (compared to end of period bal
Slide 17: Investment Thesis
INVESTMENT THESIS • Excellent franchise with long-term growth prospects • Current income opportunity with a dividend yield of 3.9% (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 18: Appendix
APPENDIX 18
Slide 19: ESXB Merger - Additional Information
ESXB MERGER- ADDITIONAL INFORMATION Merger-related expense detail 1Q21 2Q21 3Q21 4Q21 YTD Provision --- --- --- $12.3 $12.3 Employee Comp. --- --- --- $2.6 $2.6 Data Processing --- --- --- $3.5 $3.5 Other Expense --- $0.2 $0.8 $2.0 $3.0 Total --- $0.2 $0.8 $20.4 $21.4 Day 1 purchase accounting marks
Slide 20: Successful Acquisitions Advancing Growth and Enhancing Franchise Value
SUCCESSFUL ACQUISITIONS ADVANCING GROWTH AND ENHANCING FRANCHISE VALUE Closed 4Q 2021 Closed Closed Closed 1Q 2014 2Q 2017 3Q 2011 Closed 2Q 2020 $35.0 Closed 2Q 2016 $29.3 $30.0 $26.2 $25.0 $19.3 $19.7 Total Assets ($B) $20.0 $19.1 $14.5 $15.0 $12.3 $12.6 $10.0 $8.5 $8.4 $8.7 $7.2 $5.0 $0.0 2010Y 2
Slide 21: Reconciliation of Non-GAAP Items
RECONCILIATION OF NON-GAAP ITEMS (dollars in thousands) 2017 2018 2019 2020 2021 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $150,581 $256,342 $260,099 $289,023 $367,738 Average Total Shareholders' Equity (GAAP) $2,959,293 $3,268,944 $3,336,075 $3,956,969 $4,430,688 Less: Average Tot
Slide 22: Reconciliation of Non-GAAP Items (Cont.)
RECONCILIATION OF NON-GAAP ITEMS (CONT.) (dollars in thousands) 9/30/2021 12/31/2021 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 27,507,517 $ 29,328,902 Less: Total Intangibles (GAAP) (1,832,564) (1,910,907) Tangible Assets (non-GAAP) $ 25,674,953 $ 27,417,995 Total Shareholders' Eq