United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2022 Earnings Presentation
20 slides from United Bankshares's earnings presentation, Apr 26, 2022
Slide 1: First Quarter 2022 Earnings Review
First Quarter 2022 Earnings Review United Bankshares, Inc. April 26, 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: 1Q22 Highlights
Achieved Net Income of $81.7 million and Diluted Earnings Per Share of $0.60 Generated Return on Average Assets of 1.13%, Return on Average Equity of 6.96%, and Return on Average Tangible Equity* of 11.63% Achieved period end annualized loan growth of 10.8% (excluding PPP loans) Quarterly dividend o
Slide 4: ESXB Merger Update
ESXB New Franchise Footprint UBSI Source:S&P Global Market Intelligence Note:Locations include mortgage origination and servicing branches Charleston Greenville Asheville Lynchburg Charlottesville ESXB MERGER UPDATE Update Closed the merger with Community Bankers Trust Corporation (ESXB) on December
Slide 5: Linked-Quarter Results Summary
Linked-Quarter (LQ) Net Income was $81.7 million in 1Q22 compared to $73.9 million in 4Q21, with diluted EPS of $0.60 in 1Q22 compared to $0.56 in 4Q21. Net Interest Income increased $7.8 million primarily due to increased average earning assets as a result of the full-quarter impact of the ESXB acq
Slide 6: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 7: Net Interest Income and Margin
Reported Net Interest Margin increased from 2.94% to 2.99% LQ. Linked-quarter Net Interest Income (FTE) was up $7.8 million primarily due to increased average earning assets as a result of the full-quarter impact of the ESXB acquisition and organic growth. Offsetting the increase were declines in lo
Slide 8: Loan Summary
Linked-Quarter loan balances increased $368 million primarily driven by Commercial loans and Construction & Land Development loans. Excluding the $113 million decline in PPP loans, total loans increased $481 million (10.8% annualized) compared to 4Q21. Loan balances within the North Carolina & South
Slide 9: Asset Quality
End of Period Balances (000s) 12/31/21 3/31/22 Non-Accrual Loans $36,028 $34,093 90-Day Past Due Loans $18,879 $15,179 Restructured Loans $35,856 $30,582 Total Non-performing Loans $90,763 $79,854 Other Real Estate Owned $14,823 $13,641 Total Non-performing Assets $105,586 $93,495 Non-performing Loa
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 $113 million in 1Q22 Remaining outstandings at 3/31/22: Over 1,800 loans totaling $190 mi
Slide 11: Deposit Summary
Strong core deposit base with 38% of deposits in Non Interest Bearing accounts. LQ deposits increased $124 million with all categories except Time Deposits showing increases for the quarter. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets with a
Slide 12: Deposit Market Share 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 Share Repurchases
End of Period Ratios / Values 12/31/21 3/31/22** Common Equity Tier 1 Ratio 13.4% 13.0% Tier 1 Capital Ratio 13.4% 13.0% Total Risk Based Capital Ratio 15.4% 15.1% Leverage Ratio 11.0% 10.4% Total Equity to Total Assets 16.1% 15.7% *Tangible Equity to Tangible Assets (non-GAAP) 10.2% 9.8% Book Value
Slide 14: Mortgage Banking Segment
Three Months Ended (000s) 12/31/21 3/31/22 Applications $1,534,311 $1,696,504 Loans Originated $1,287,629 $1,006,363 Loans Sold $1,273,014 $1,170,124 Purchase Money % 69% 73% Realized Gain on Sale Margin 3.02% 2.98% Locked Pipeline (EOP) $448,889 $412,809 Loans Held for Sale (EOP) $504,416 $340,040
Slide 15: 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 PPP loans and loans held for sale, to be in the mid single digits for the remainder of 2022 (annualized). Loan pipelines
Slide 16: Investment Thesis
Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 4.2% (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 17: Appendix
APPENDIX
Slide 18: ESXB Merger - Additional Information
Merger-related expense detail ESXB MERGER- ADDITIONAL INFORMATION 1Q21 2Q21 3Q21 4Q21 YTD 2021 1Q22 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 $0.5 Total --- $0.2 $0.8 $20.4 $21.4 $0.5
Slide 19: Reconciliation of Non-GAAP Items
(dollars in thousands) 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $106,898 $94,836 $92,152 $73,852 $81,664 (B) Number of Days in the Quarter 90 91 92 92 90 Average Total Shareholders' Equity (GAAP) $4,346,750 $4,378,898 $4,440,107 $
Slide 20: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 12/31/2021 3/31/2022 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,328,902 $ 29,365,511 Less: Total Intangibles (GAAP) (1,910,907) (1,912,278) Tangible Assets (non-GAAP) $ 27,417,995 $ 27,453,233 Total Shareholders' Equity (GAAP) $ 4,718,628 $ 4,595,140 Less: