United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2023 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Earnings Review
Third Quarter 2023 Earnings Review United Bankshares, Inc. October 25, 2023 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: 3Q23 Highlights
Achieved Net Income of $96.2 million and Diluted Earnings Per Share of $0.71 Generated Return on Average Assets of 1.31%, Return on Average Equity of 8.14%, and Return on Average Tangible Equity* of 13.71% Ranked #1 most trustworthy bank in Newsweek’s list of “Most Trustworthy Companies in America 2
Slide 4: Linked-Quarter Net Income and Results Summary
Linked-Quarter (LQ) Net Income was $96.2 million in 3Q23 compared to $92.5 million in 2Q23, with diluted EPS of $0.71 in 3Q23 compared to $0.68 in 2Q23. Net Interest Income increased $1.0 million due to a combination of the impact of rising market interest rates on earning assets, a change in the as
Slide 5: Performance Ratios
PERFORMANCE RATIOS *Non-GAAP measure. Refer to appendix. Strong profitability and expense control
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin increased from 3.51% to 3.54% LQ. Linked-quarter Net Interest Income (FTE) increased $1.0 million due to a combination of the impact of rising market interest rates on earning assets, a change in the asset mix to higher earning assets and lower average balances of long-t
Slide 7: Loan Portfolio and Loan Growth
Linked-Quarter loan balances increased $333 million primarily driven by Constructions & Land Development and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 19.1% annualized in 3Q23, and up 13.8% annualized YTD. Non
Slide 8: Asset Quality
End of Period Balances (000s) 6/30/23 9/30/23 Non-Accrual Loans $26,545 $24,456 90-Day Past Due Loans $15,007 $18,283 Total Non-performing Loans $41,552 $42,739 Other Real Estate Owned $3,756 $3,181 Total Non-performing Assets $45,308 $45,920 Non-performing Loans / Loans 0.20% 0.20% Non-performing A
Slide 9: Deposit Base and Top Deposit Markets
Strong core deposit base with 28% of deposits in Non Interest Bearing accounts. LQ deposits increased $307 million driven by Money Market accounts, Time Deposits and Interest Bearing Transaction accounts, partially offset by declines in other categories. Brokered deposits total $338 million (only 1.
Slide 10: Liquidity Position & Additional Deposit Detail
Deposit Account Details ($ in millions) End of Period Ratios / Values 9/30/23 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,530 29% Estimated Insured/Collateralized Deposits $16,146 71% Total Deposits $22,677 100% No borrowings from the FRB Discount
Slide 11: Deposit Market Position by State and MSA
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 12: Capital Ratios and Per Share Data
End of Period Ratios / Values 6/30/23 9/30/23** Common Equity Tier 1 Ratio 12.8% 13.0% Tier 1 Capital Ratio 12.8% 13.0% Total Risk Based Capital Ratio 15.1% 15.2% Leverage Ratio 11.0% 11.3% Total Equity to Total Assets 15.6% 15.9% *Tangible Equity to Tangible Assets (non-GAAP) 9.8% 10.0% Book Value
Slide 13: Mortgage Banking Segment
Three Months Ended (000s) 6/30/23 9/30/23 Applications $588,734 $458,818 Loans Originated $416,255 $342,131 Loans Sold $399,632 $367,679 Purchase Money % 94% 94% Realized Gain on Sale Margin 2.27% 2.29% Locked Pipeline (EOP) $93,417 $99,988 Loans Held for Sale (EOP) $91,296 $59,614 Balance of Loans
Slide 14: 2023 Guidance
Select guidance is being provided for 2023. Our outlook may change if the expectations for these items vary from current expectations. Balance Sheet: Expect loan growth, excluding loans held for sale, to be in the low single digits for the 4th quarter of 2023 (annualized). Expect investment portfoli
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 49 consecutive years of dividend increases e
Slide 16: Appendix
APPENDIX
Slide 17: Reconciliation of Non-GAAP Items
(dollars in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $102,585 $99,765 $98,307 $92,459 $96,157 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equity (GAAP) $4,542,100 $4,498,378 $4,570,288 $
Slide 18: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 6/30/2023 9/30/2023 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,694,651 $ 29,224,794 Less: Total Intangibles (GAAP) (1,905,228) (1,903,949) Tangible Assets (non-GAAP) $ 27,789,423 $ 27,320,845 Total Shareholders' Equity (GAAP) $ 4,637,043 $ 4,648,878 Less: