United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2019 Earnings Presentation
19 slides from United Bankshares's earnings presentation, Jan 29, 2020
Slide 1: Fourth Quarter & Fiscal Year 2019 Earnings Review
United Bankshares, Inc. Fourth Quarter & Fiscal Year 2019 Earnings Review January 29, 2020 Exhibit 99.2
Slide 2: Forward-Looking Statements
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 19
Slide 3: 2019 Highlights
2019 HIGHLIGHTS Achieved record Net Income of $260.1 million and record Diluted Earnings Per Share of $2.55 for FY 2019 Increased dividends to shareholders for the 46th consecutive year, with a current dividend yield of 3.9% (based upon recent prices) Announced the signing of a definitive merger agr
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked-Quarter (LQ) Net Income was $63.3 million in 4Q19 compared to $66.0 million in 3Q19. Diluted EPS were $0.62 in 4Q19 compared to $0.65 in 3Q19. Net Interest Income was relatively flat, decreasing $635 thousand compared to 3Q19 due primarily to a decline in average earning asse
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. FY 2017 was impacted by $26.8 million in pre tax merger related expenses and $37.7 million in additional tax expense related to the Tax Act. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin increased from 3.27% to 3.29% LQ. Linked-quarter Net Interest Margin increase was primarily due to an increase in purchase accounting loan accretion of $1.4 million. 4Q19 Net Interest Income, excluding purchase accounting loan accretion, wa
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Linked-Quarter loan balances increased $76 million with growth in C&I and Construction loans being offset by declines in Non Owner Occupied CRE loans. Achieved full year 2019 loan growth of 2.1%. Non Owner Occupied CRE to Total Risk Based Capital was 243%
Slide 8: Deposit Summary
DEPOSIT SUMMARY Strong core deposit base with 33% of deposits in Non Interest Bearing accounts. LQ deposit decline of $243 million driven by a decline in brokered deposits of $196 million. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets where Uni
Slide 9: Enhancing Franchise Value: Deposit Market Share Washington D.C. MSA
ENHANCING FRANCHISE VALUE Deposit Market Share: Washington D.C. MSA Since 2014, United has completed 3 acquisitions in the Washington D.C. MSA, significantly increasing franchise value (Cardinal, Bank of Georgetown, & Virginia Commerce). United has increased deposit market share in the Washington D.
Slide 10: Strong Deposit Market Share in WV
STRONG DEPOSIT MARKET SHARE IN WV Source: SNL Financial 6/30/2019 1. Truist Financial Corp. 15.44% 2. United Bankshares, Inc. 14.01% 3. WesBanco, Inc. 8.51% 4. City Holding Company 7.69% 5. Huntington Bancshares Inc. 6.13% 6. JPMorgan Chase & Co. 5.39% 7. Summit Financial Group, Inc. 4.36% 8. MVB Fi
Slide 11: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 9/30/19 12/31/19 Non Accrual Loans $69,884 $63,209 90-Day Past Due Loans $9,840 $9,494 Restructured Loans $60,559 $58,369 Total Non Performing Loans $140,283 $131,072 Other Real Estate Owned $18,367 $15,515 Total Non Performing Assets $158,650 $146,587 No
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 9/30/19 12/31/19** Common Equity Tier 1 Ratio 12.3% 12.5% Tier 1 Capital Ratio 12.3% 12.5% Total Risk Based Capital Ratio 14.4% 14.7% Leverage Ratio 10.2% 10.5% Total Equity to Total Assets 17.0% 17.1% *Tangible Equity to Tangible Assets
Slide 13: George Mason Mortgage
GEORGE MASON MORTGAGE George Mason Mortgage is the #1 purchase money lender in the Washington D.C. MSA. GMM gain on sale revenue and business unit profitability will depend upon future production mix (in-house vs. secondary) and general market conditions. The impact from ASC 815 (formerly SAB 109) o
Slide 14: 2020 Outlook
2020 OUTLOOK Loans & Deposits: Annual loan and deposit growth rates expected in the low to mid single digits for 2020 (compared to 4Q19 end of period balances). Net Interest Margin / Net Interest Income: Relatively stable core NIM (excluding purchase accounting loan accretion / compared to 4Q19 net
Slide 15: UBSI Investment Thesis
UBSI 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 owner
Slide 16: Merger Update - Carolina Financial
MERGER UPDATE - CAROLINA FINANCIAL Announced the signing of a definitive merger agreement on November 18, 2019 to acquire 100% of the outstanding shares of Carolina Financial Corp. (CARO) Continues UBSI’s strategic expansion in the Carolinas with a financially compelling acquisition of a high-perfor
Slide 17: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 18: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items January 2020 (dollars in thousands) 2015 2016 2017 2018 2019 (1) Return on Average Tangible Equity Net Income (GAAP) $137,959 $147,083 $150,581 $256,342 $260,099 Average Total Shareholders' Equity (GAAP) $1,702,490 $1,918,887 $2,959,293 $3,268,944 $3,336,075 Less: Av
Slide 19: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) January 2020 (dollars in thousands) 9/30/2019 12/31/2019 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,751,461 $ 19,662,324 Less: Total Intangibles (GAAP) (1,509,699) (1,507,945) Tangible Assets (non-GAAP) $ 18,241,762 $ 18,154,379 Total Sha