United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Investor Presentation (March 2010)
44 slides from United Bankshares's investor presentation, March 2010
Slide 1: United Bankshares, Inc.
UNITED BANKSHARES, INC.
Slide 2: The Challenge To Be The Best Never Ends
The Challenge To Be The Best Never Ends Richard M. Adams Steven E. Wilson Chairman of the Board & Executive Vice President & Chief Chief Executive Officer Financial Officer www.ubsi-inc.com
Slide 3: 20th Anniversary of NASDAQ Listing
20th Anniversary of NASDAQ Listing 2007
Slide 4: Mission
Mission The mission of United Bankshares is excellence in service to our shareholders, our employees, our customers, and our communities.
Slide 5: United Bankshares, Inc.
United Bankshares, Inc. • $7.8 billion regional bank holding company • Dual headquarters: Washington, DC and Charleston, WV • Two banking subsidiaries: United Bank-VA and United Bank-WV • 113 full-service offices in Virginia, West Virginia, Maryland, Washington, DC and Ohio • Since 1982, United has
Slide 6: United Bankshares, Inc.
United Bankshares, Inc. • Ranked the 55th largest bank holding company based on market capitalization • Ranked the 22nd top performing banking company in the nation by the ABA Banking Journal based on return on average total equity • Ranked 29th out of the 150 largest U.S. bank holding companies by
Slide 7: Office Locations
Office Locations Weirton/ | St. Clairsville Bellaire _/ Wheeling Morgantown Parkersburg Clarksburg WEST VIRGINIA Huntington Charleston PENNSYLVANIA ‘Martinsburg Winchester % me ~~-Batlesda AX 4 Washingto Fairfax 4 Harrisonburg Charlottesville VIRGINIA
Slide 8: Topics for Today's Presentation
Topics for Today’s Presentation • 4th Quarter & Year of 2009 Results • Asset Quality • Balance Sheet Mix • Capital • Why Own United?
Slide 9: 4th Quarter & Year of 2009 Results
4th Quarter & Year of 2009 Results • 4Q09 Reported EPS = $0.40 • Net Income = $17.4 million • YTD Reported EPS = $1.55 • Net Income = $67.3 million • YTD ROA = 0.85% vs. Peer = (0.16%) • YTD ROE = 8.81% vs. Peer = (2.22%)
Slide 10: Credit Culture
Credit Culture • Prudent Underwriting • Good Lending Policies, Systems and Procedures • Experienced Senior Credit Staff • Know Borrowers Well and Build Relationships • Balance Volume Pressure and Risk • Make Informed Decisions
Slide 11: Asset Quality
Asset Quality ($ in millions) Q4 2009 Q3 2009 Nonaccural Loans $50.9 $47.9 Loans 90+ days Past Due 20.3 23.9 Restructured Loans 1.1 1.1 Nonperforming Loans (NPLs) $72.3 $72.9 OREO 40.0 44.7 Nonperforming Assets (NPAs) $112.3 $117.6 NPAs/Total Assets 1.44% 1.46% Allowance for Credit Losses/NPLs 96.9%
Slide 12: Noncurrent Loans to Total Loans
Noncurrent Loans to Total Loans 4.23% 2.42% 0.97% 0.53% 0.51% 1.24% 0.90% 0.28% 0.29% 0.49% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR Noncurrent loans equal the sum of nonaccrual and 90+ days past due loans.
Slide 13: Loan Loss Reserve to Noncurrent Loans
Loan Loss Reserve to Noncurrent Loans 336.46% 334.76% 316.73% 307.57% 203.02% 178.13% 113.46% 95.34% 108.74% 71.69% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR Noncurrent loans equal the sum of nonaccrual and 90+ days past due loans.
Slide 14: Net Chargeoffs/Average Loans
Net Chargeoffs/Average Loans 1.58% 0.77% 0.27% 0.67% 0.18% 0.16% 0.35% 0.09% 0.13% 0.04% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR
Slide 15: Prudent Underwriting
Prudent Underwriting • Top Tier Borrowers • Emphasis on Cash Flows • Solid Collateral Valuation • Reasonable LTVs and Debt Service Coverage • Personal Guarantees Generally Required • Appropriate Terms and Conditions
Slide 16: 12/31/09 Loan Mix
12/31/09 Loan Mix Overview CRE Single Family 28% 32% • Diversified Loan Portfolio • Lower Risk Profile Other RE • Significant CRE 5% Experience Installment C&I 6% 19% Construction 10% Total Loans $5,740,778
Slide 17: West Virginia Marketplace Top Depositories
West Virginia Marketplace Top Depositories Market Share* BB&T 18.69% United Bank 9.99% Wesbanco Bank 6.97% Huntington National Bank 6.94% City National Bank 6.65% JP Morgan Chase 5.98% First Community Bank 2.99% Centra Bank 2.48% Summit Community Bank 2.29% Putnam County Bank 1.55% *Information as o
Slide 18: DC Marketplace Top Depositories
DC Marketplace Top Depositories Market Share* Capital One 18.54% Bank of America 10.77% Wells Fargo 10.09% SunTrust Bank 7.85% BB&T 7.53% PNC Bank 4.64% Citibank 2.54% M&T Bank 2.10% HSBC Bank 1.44% United Bank 1.37% *Information as of 6/30/09
Slide 19: Largest independent banking franchise in the nation's capital area
United is now the largest independent banking franchise remaining in the nation’s capital metropolitan statistical area.
Slide 20: 12/31/09 Deposit Mix
12/31/09 Deposit Mix Noninterest- Bearing Overview Time Deposits 46% 18% • Noninterest-Bearing $1,108,157 Savings 6% • NOW/ Interest- Bearing MMDA $1,778,827 • Savings NOW/Interest- $348,982 Bearing MMDA • Time Deposits 30% $2,735,134 Total Deposits $5,971,100
Slide 21: Consolidated Borrowing Capacity
United Bankshares, Inc. Consolidated Borrowing Capacity Capacity Capacity Change Capacity Source 12/31/07 to 12/31/07 12/31/08 12/31/09 12/31/09 FHLB – Pittsburgh $24,000,000 $158,000,000 $432,000,000 +$408,000,000 FHLB – Atlanta $152,000,000 $430,000,000 $304,000,000 +$152,000,000 Fed Res – Disc $1
Slide 22: Capital
Capital Q4 2009 Q3 2009 Tier I Capital Ratio 11.0% 10.7% Total Risk Based Capital Ratio 12.2% 12.0% Leverage Ratio 8.9% 8.9% Tangible Equity/Tangible Assets 5.9% 5.8% Book Value Per Share $17.53 $17.66 Tangible Book Value Per Share $10.24 $10.34
Slide 23: Why Own United?
Why Own United? • Experienced management team with a proven track record • High level of insider ownership • High-performance bank with a low-risk profile • Efficient organization • Excellent franchise with strong growth prospect • Superior long-term total return to shareholders
Slide 24: Experienced Management Team with Proven Track Record
Experienced Management Team with Proven Track Record
Slide 25: Analyst quote: Sandler O'Neill & Partners
“UBSI maintains the title as one of the more valuable franchises of size remaining in the mid-Atlantic…...” - Sandler O’Neill & Partners
Slide 26: Analyst quote: Keefe, Bruyette & Woods
“United is a well-managed institution that has earned its reputation as one of the top performing regional banks of its size in the country.” - Keefe, Bruyette & Woods
Slide 27: Executive Officers
Executive Officers Banking Name Title Experience Richard Adams Chairman & CEO 40 Steve Wilson CFO 37 Jim Hayhurst Chief Credit Officer 37 Jim Consagra EVP, United-VA 21 Joe Wilson Chief Risk Officer 38 Rick Adams EVP, United-WV 15
Slide 28: Execution, Sales, Risk Management, Expense Control
Execution Sales Risk Management Expense Control
Slide 29: High Level of Insider Ownership
High Level Of Insider Ownership
Slide 30: Thinking Like An Owner
Thinking Like An Owner % of Ownership by Employees and Directors Approximately 20%
Slide 31: Executive Officers
Executive Officers Name Title # of Shares Richard Adams Chairman & CEO 868,165 Steve Wilson CFO 211,213 Jim Hayhurst Chief Credit Officer 141,312 Jim Consagra EVP, United-VA 102,495 Joe Wilson Chief Risk Officer 154,087 Rick Adams EVP, United-WV 110,676
Slide 32: High Performance Banking Company with a Low Risk Profile
High Performance Banking Company with a Low Risk Profile
Slide 33: Return on Average Assets
Return on Average Assets 1.55% 1.34% 1.28% 1.09% 1.14% 1.11% 0.85% 0.87% 0.10% -0.16% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR
Slide 34: Return on Average Equity
Return on Average Equity 15.66% 13.90% 13.00% 11.12% 12.96% 12.23% 8.81% 9.45% -0.28% -2.22% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR
Slide 35: Efficient Organization
Efficient Organization
Slide 36: Efficiency Ratio
Efficiency Ratio 71.21% 68.01% 64.70% 60.59% 61.41% 55.17% 53.79% 51.86% 51.88% 44.42% FY05 FY06 FY07 FY08 FY09 UBSI $3-10 Billion Source: Federal Reserve BHCPR Efficiency Ratio=Overhead Expense/Net Interest Income + Noninterest Income
Slide 37: Excellent Franchise with Strong Growth Prospect
Excellent Franchise with Strong Growth Prospect
Slide 38: Efficient Integration History
Efficient Integration History • United is an experienced acquirer and integrator of banking franchises ¾ 14 transactions completed since 1990 representing more than $900 million in aggregate purchase value ¾ 27 transactions completed since 1982 • Proven ability to extract cost savings
Slide 39: Morningstar quote on United Bankshares
“United Bankshares was able to thrive by expanding into growth markets while keeping a conservative balance sheet and maintaining a low percentage of bad loans” - Jaime Peters, Morningstar
Slide 40: Superior Long-Term Total Return to Shareholders
Superior Long-Term Total Return to Shareholders
Slide 41: Dividend Overview
Dividend Overview 36 Consecutive Years of Dividend Increases $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1974 - 2009
Slide 42: Moving Forward
Moving Forward • Resolve Credit Issues • Continue to Focus on the Basics • Continue to Outperform Our Peers • Target M&A Opportunities in Maryland, Ohio, Virginia, D.C. and West Virginia • Maintain “Well Capitalized” Capital Ratios
Slide 43: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS
Slide 44: Forward-looking statements
This presentation may contain forward-looking statements about United Bankshares, Inc., which we believe are within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation may contain certain forward-looking statements with respect to the financial condition, results o
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