United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q2 2024 Earnings Presentation
21 slides from United Bankshares's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Earnings Review
Second Quarter 2024 Earnings Review United Bankshares, Inc. (UBSI) July 25, 2024 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and statements made by United Bankshares, Inc. (“UBSI”) 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 sta
Slide 3: Forward-looking statements and additional merger information
UBSI and Piedmont caution that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to UBSI or Piedmont or any person acting on their behalf are expressly qualified in their entire
Slide 4: Second quarter 2024 highlights
Achieved Net Income of $96.5 million and Diluted Earnings Per Share of $0.71 Generated Return on Average Assets of 1.32%, Return on Average Equity of 7.99%, and Return on Average Tangible Equity* of 13.12% Announced the signing of a definitive merger agreement to acquire Piedmont Bancorp, Inc. Finan
Slide 5: Linked-quarter net income and income statement drivers
Linked-Quarter (LQ) Net Income was $96.5 million in 2Q24 compared to $86.8 million in 1Q24, with diluted EPS of $0.71 in 2Q24 compared to $0.64 in 1Q24. Net Interest Income increased $3.2 million driven by a higher yield on average net loans and loans held for sale, organic loan growth and a decreas
Slide 6: Strong profitability and expense control
*Non-GAAP measure. Refer to appendix. Strong profitability and expense control 4Q23 was impacted by a $12.0 million expense related to the FDIC’s special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund. PERFORMANCE RATIOS
Slide 7: Net interest margin and net interest income
Reported Net Interest Margin increased from 3.44% to 3.50% LQ. Linked-quarter Net Interest Income (FTE) increased $3.2 million driven by a higher yield on average net loans and loans held for sale, organic loan growth and a decrease in average long-term borrowings partially offset by higher interest
Slide 8: Loan portfolio and CRE exposure
Linked-Quarter loan balances increased $78 million primarily driven by Construction & Land Development and Non Owner Occupied CRE loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 19.0% annualized in 2Q24, and up 16.5% annualized YTD. Non Ow
Slide 9: Asset quality
End of Period Balances (000s) 3/31/24 6/30/24 Non-Accrual Loans $63,053 $52,929 90-Day Past Due Loans $11,329 $12,402 Total Non-performing Loans $74,382 $65,331 Other Real Estate Owned $2,670 $2,156 Total Non-performing Assets $77,052 $67,487 Non-performing Loans / Loans 0.35% 0.30% Non-performing A
Slide 10: Core deposit base and top deposit markets
Strong core deposit base with 26% of deposits in Non Interest Bearing accounts. LQ deposits increased $147 million driven by Interest Bearing Transaction, Money Market Accounts and Time Deposits, partially offset by declines in other categories. Brokered deposits total $144 million (only 0.6% of tot
Slide 11: Deposit account details and available liquidity
Deposit Account Details ($ in millions) End of Period Ratios / Values 6/30/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,818 30% Estimated Insured/Collateralized Deposits $16,248 70% Total Deposits $23,066 100% No borrowings from the FRB Discount
Slide 12: Franchise and deposit market position by state
West Virginia #2 in the state (second only to Truist) with $6.0 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 MSAs and stable, rural markets with a
Slide 13: Capital ratios and per share data
End of Period Ratios / Values 3/31/24 6/30/24** Common Equity Tier 1 Ratio 13.2% 13.5% Tier 1 Capital Ratio 13.2% 13.5% Total Risk Based Capital Ratio 15.6% 15.8% Leverage Ratio 11.4% 11.6% Total Equity to Total Assets 16.0% 16.2% *Tangible Equity to Tangible Assets (non-GAAP) 10.3% 10.5% Book Value
Slide 14: 2024 guidance
Select guidance is being provided for 2024. Our outlook may change if the expectations for these items vary from current expectations. The guidance represents UBSI on a standalone basis and does not include any assumed impact from the Piedmont acquisition. Balance Sheet: Expect loan growth, excludin
Slide 15: 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 50 consecutive years of dividend increases e
Slide 16: Piedmont Bancorp acquisition overview
Continuation of UBSI’s proven M&A strategy | UBSI’s 34th acquisition Entrance into Greater Atlanta Area markets with robust economic growth opportunities Enhances UBSI’s position as one of the premier regional banking companies in the Southeast and Mid-Atlantic Piedmont Overview Advancing Strategy F
Slide 17: Piedmont merger pro forma franchise
Total Assets Note: Pro forma financial information at anticipated closing date based on assumptions at time of deal announcement Source: S&P Capital IQ Pro ~$25.5 Billion ~$31.8 Billion Net Loans Total Deposits Tangible Common Equity ~$23.7 Billion ~$3.1 Billion 227 Locations Pro Forma 16 Locations
Slide 18: Demonstrated history of successful acquisitions
(1) Estimated total pro forma assets at transaction close Source: S&P Capital IQ Pro; Company filings (1) DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS
Slide 19: Appendix
APPENDIX
Slide 20: Reconciliation of non-GAAP items
(dollars in thousands) 2Q23 3Q23 4Q23 1Q24 2Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $92,459 $96,157 $79,390 $86,814 $96,507 (B) Number of Days in the Quarter 91 92 92 91 91 Average Total Shareholders' Equity (GAAP) $4,659,094 $4,687,124 $4,697,680 $4,816,476 $4,857,893 Less:
Slide 21: Reconciliation of non-GAAP items (cont.)
(dollars in thousands) 3/31/2024 6/30/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 30,028,798 $ 29,957,418 Less: Total Intangibles (GAAP) (1,900,484) (1,899,574) Tangible Assets (non-GAAP) $ 28,128,314 $ 28,057,844 Total Shareholders' Equity (GAAP) $ 4,807,441 $ 4,856,633 Less: