United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q4 2017 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Jan 30, 2018
Slide 1: Fourth Quarter and Fiscal Year 2017 Earnings Review
United Bankshares, Inc. Fourth Quarter and Fiscal Year 2017 Earnings Review January 30, 2018 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and statements made by United Bankshares, Inc. (“United”) and its management may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified
Slide 3: 2017 Highlights
2017 HIGHLIGHTS Successfully completed the largest acquisition in UBSI history (Cardinal Financial Corporation), increasing deposit market share in the attractive Washington D.C. MSA to #7 Increased dividends to shareholders for the 44th consecutive year, with a current dividend yield of 3.8% (based
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked Quarter (LQ) Income Before Income Taxes was relatively flat at $84.9 million in 4Q17 compared to $84.6 million in 3Q17. Diluted EPS were $0.17 in 4Q17 compared to $0.54 in 3Q17. Diluted EPS in 4Q17 were impacted by additional income tax expense of $37.7 million, or $0.36 per
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 Net Interest Margin increased from 3.65% to 3.77% LQ. Increase in Net Interest Margin LQ was driven primarily by increased loan accretion. Loan accretion associated with acquired loans increased to $16.8 million in 4Q17. Scheduled loan accretion for FY 2018 and FY 2019
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Record loan production in 4Q17. LQ decrease in loans driven by above average loan payoffs. Strong LQ growth in C&I loans. Non Owner Occupied CRE to Total Risk Based Capital was approximately 286% at 4Q17 compared to 300% at 3Q17. CRE portfolio continues to
Slide 8: Deposit Summary
DEPOSIT SUMMARY UBSI maintains a strong core deposit base with 31% of the deposits in Demand. Deposit betas remained low in 2017. During 2017, UBSI increased deposit market share rank to #7 in the Washington D.C. MSA. Maintained #2 deposit market share position in the state of West Virginia (second
Slide 9: Enhancing Franchise Value
ENHANCING FRANCHISE VALUE Source: SNL Financial Deposit Market Share: Washington D.C. MSA Source: SNL Financial Since 2014, United has completed 3 acquisitions in the Washington D.C. MSA, significantly increasing franchise value (Cardinal, Bank of Georgetown, & Virginia Commerce). Washington D.C. is
Slide 10: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 9/30/17 12/31/17 Non Accrual Loans $100,016 $108,803 90-Day Past Due Loans $22,249 $9,803 Restructured Loans $46,132 $50,129 Total Non Performing Loans $168,397 $168,735 Other Real Estate Owned $26,826 $24,348 Total Non Performing Assets $195,223 $193,083
Slide 11: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 9/30/17 12/31/17 Common Equity Tier 1 Ratio 12.0% 12.0% Tier 1 Capital Ratio 12.0% 12.0% Total Risk Based Capital Ratio 14.3% 14.2% Leverage Ratio 10.1% 10.1% Total Equity to Total Assets 17.1% 17.0% *Tangible Equity to Tangible Assets (n
Slide 12: George Mason Mortgage
GEORGE MASON MORTGAGE GMM remains the #1 purchase money lender in the Washington D.C. MSA. GMM gain on sale revenue projected at approximately $88 million for 2018 with income before tax projected at approximately $5 million for 2018. Results could vary significantly from projections depending upon
Slide 13: 2018 Outlook
2018 OUTLOOK Loans & Deposits: Annual loan and deposit growth rate in 2018 expected in the low to mid single digits. Net Interest Margin: Stable core NIM (excluding purchase accounting related loan accretion). Asset Quality: Stable to improving asset quality metrics. Non Interest Income: NII growth,
Slide 14: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with strong growth prospects Experienced management team with a proven track record of execution High level of insider ownership High-performance bank with a low-risk profile 44 consecutive years of dividend increases evidences United’s strong profitability
Slide 15: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 16: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items January 2018 (dollars in thousands) 2013 2014 2015 2016 2017 (1) Return on Average Tangible Equity Net Income (GAAP) $85,628 $129,888 $137,959 $147,083 $150,581 Average Total Shareholders' Equity (GAAP) $1,016,000 $1,597,764 $1,702,490 $1,918,887 $2,971,663 Less: Ave
Slide 17: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) January 2018 (dollars in thousands) 9/30/2017 12/31/2017 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,129,978 $ 19,058,959 Less: Total Intangibles (GAAP) (1,535,133) (1,523,366) Tangible Assets (non-GAAP) $ 17,594,845 $ 17,535,593 Total Sha