United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2021 Earnings Presentation
20 slides from United Bankshares's earnings presentation, Apr 23, 2021
Slide 1: First Quarter 2021 Earnings Review
United Bankshares, Inc. First Quarter 2021 Earnings Review April 23, 2021 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: 1Q21 Highlights
1Q21 HIGHLIGHTS Achieved record quarterly Net Income of $106.9 million and record quarterly Diluted Earnings Per Share of $0.83 Generated Return on Average Assets of 1.64%, Return on Average Equity of 9.97%, and Return on Average Tangible Equity* of 17.20% Reported strong mortgage banking revenue, n
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked-Quarter (LQ) Net Income was $106.9 million in 1Q21 compared to $92.4 million in 4Q20, with diluted EPS of $0.83 in 1Q21 compared to $0.71 in 4Q20. Net Interest Income decreased $1.0 million due mainly to a decrease in the net interest margin of 3 basis points and a decrease i
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong profitability and expense control. 1Q20 was impacted by COVID-19 and CECL ACL build. 2Q20 was impacted by pre-tax merger-related expenses of $46.4 million and additional ACL build. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin decreased from 3.33% to 3.30% LQ. Excluding purchase accounting loan accretion, linked-quarter Net Interest Income was up $0.1 million, with PPP loan fee income increasing $4.3 million. Total remaining unamortized PPP fees (net of costs) is
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Linked-Quarter loan balances decreased $223 million driven primarily by declines in Residential Real Estate loans and Non Owner Occupied CRE loans, while Revolving Line of Credit balances within Commercial loans were down for the quarter as well. Non Owner
Slide 8: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 12/31/20 3/31/21 Non-Accrual Loans $62,718 $48,985 90-Day Past Due Loans $13,832 $15,719 Restructured Loans $55,657 $51,529 Total Non-performing Loans $132,207 $116,233 Other Real Estate Owned $22,595 $18,690 Total Non-performing Assets $154,802 $134,923
Slide 9: Select Loan Portfolio Details
SELECT LOAN PORTFOLIO DETAILS Diversified portfolio with strong underwriting practices and ongoing monitoring Portfolio Portfolio Balance ($ MM) % Total Loans Commercial Retail CRE 1,281 7.4% Hotels 787 4.5% Healthcare & Senior Living 316 1.8% Entertainment & Recreation 276 1.6% Restaurants 229 1.3%
Slide 10: Paycheck Protection Program (PPP)
PAYCHECK PROTECTION PROGRAM (PPP) Originated over 12,200 loans for $1.7 billion since program inception in 2020 Maintained an “all hands on deck” approach in order to assist as many customers as possible Outstandings increased $21 million in 1Q21 (new originations of $377 million & paydowns of $356
Slide 11: Deposit Summary
DEPOSIT SUMMARY Strong core deposit base with 38% of deposits in Non Interest Bearing accounts. LQ deposits increased $811 million. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets with a dominant market share position. $ in millions Source: S&P G
Slide 12: Attractive Deposit Market Share Position
ATTRACTIVE DEPOSIT MARKET SHARE POSITION West Virginia #2 in the state (second only to Truist) with $5.3 billion in deposits. United ranks #1 or #2 in deposit market share within its top 5 largest markets in the state. North Carolina #17 in the state with $1.9 billion. Select MSAs: #14 in Charlotte
Slide 13: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 12/31/20 3/31/21** Common Equity Tier 1 Ratio 13.3% 13.5% Tier 1 Capital Ratio 13.3% 13.5% Total Risk Based Capital Ratio 15.6% 15.7% Leverage Ratio 10.3% 10.4% Total Equity to Total Assets 16.4% 16.0% *Tangible Equity to Tangible Assets
Slide 14: Mortgage Banking
MORTGAGE BANKING Mortgage Banking Segment represents George Mason Mortgage and Crescent Mortgage Company. George Mason Mortgage, founded in 1980, is headquartered in the Washington D.C. MSA with 13 retail offices located throughout Virginia, Maryland, North Carolina, and South Carolina. Crescent Mor
Slide 15: 2021 Outlook
2021 OUTLOOK Loans & Deposits: Expect loan growth, excluding PPP forgiveness and new PPP originations, to be in the low to mid single digits. Pipelines continue to be strong, particularly in the North Carolina and South Carolina markets. Expect further decreases in the cost of interest bearing depos
Slide 16: Investment Thesis
INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.6% (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 ownership
Slide 17: M&A History
M&A HISTORY Four most recent transactions: Company Location Completion Date Total Assets Carolina Financial Corporation Charleston, SC 5/1/2020 $5.0 billion Cardinal Financial Corporation McLean, VA 4/21/2017 $4.1 billion Bank of Georgetown Washington, DC 6/3/2016 $1.3 billion Virginia Commerce Banc
Slide 18: Appendix
Appendix '@ BANKSHARES,INC. 19
Slide 19: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items April 2021 (dollars in thousands) 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $40,183 $52,686 $103,784 $92,370 $106,898 (B) Number of Days in the Quarter 91 91 92 92 90 Average Total Shareholders' Equ
Slide 20: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) April 2021 (dollars in thousands) 12/31/2020 3/31/2021 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 26,184,247 $ 27,030,755 Less: Total Intangibles (GAAP) (1,823,771) (1,829,495) Tangible Assets (non-GAAP) $ 24,360,476 $ 25,201,260 Total Share