United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q3 2019 Earnings Presentation
18 slides from United Bankshares's earnings presentation, Oct 24, 2019
Slide 1: Third Quarter 2019 Earnings Review
United Bankshares, Inc. Third Quarter 2019 Earnings Review October 24, 2019 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: 3Q19 Highlights
3Q19 HIGHLIGHTS Achieved Net Income of $66.0 million and Diluted Earnings Per Share of $0.65 Generated Return on Average Assets of 1.33%, Return on Average Equity of 7.79%, and Return on Average Tangible Equity* of 14.16% Outperformed peer ROAA and ROATE Quarterly dividend of $0.34 per share equates
Slide 4: Earnings Summary
EARNINGS SUMMARY Linked-Quarter (LQ) Net Income was $66.0 million in 3Q19 compared to $67.2 million in 2Q19. Diluted EPS were $0.65 in 3Q19 compared to $0.66 in 2Q19. Net Interest Income decreased $8.6 million compared to 2Q19 due primarily to a decrease of $7.3 million in loan accretion on acquired
Slide 5: Performance Ratios
PERFORMANCE RATIOS Strong and consistent profitability and expense control. *Non GAAP measure. Refer to appendix.
Slide 6: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Reported Net Interest Margin decreased from 3.53% to 3.27% LQ. Linked-quarter Net Interest Margin decrease was primarily due to a decrease in purchase accounting loan accretion of $7.3 million. 3Q19 Net Interest Income, excluding purchase accounting loan accretion, was
Slide 7: Loan Summary
LOAN SUMMARY (excludes Loans Held for Sale) Linked-Quarter loan balances were essentially flat, with growth in C&I, Non Owner Occupied CRE, and Consumer loans being offset by declines in Construction, Residential Real Estate, and Owner Occupied CRE loans. YTD annualized loan growth is 2.1%. Non Owne
Slide 8: Deposit Summary
DEPOSIT SUMMARY Strong core deposit base with 32% of deposits in Non Interest Bearing accounts. LQ deposit decline of $309 million driven by a decline in brokered deposits of $319 million. Enviable deposit franchise with an attractive mix of both high growth MSA’s and stable, rural markets where Uni
Slide 9: Enhancing Franchise Value
ENHANCING FRANCHISE VALUE Deposit Market Share: Washington D.C. MSA Since 2014, United has completed 3 acquisitions in the Washington D.C. MSA, significantly increasing franchise value (Cardinal, Bank of Georgetown, & Virginia Commerce). United has increased deposit market share in the Washington D.
Slide 10: Strong Deposit Market Share in WV
STRONG DEPOSIT MARKET SHARE IN WV Source: SNL Financial 6/30/2019 1. BB&T Corp. 15.44% 2. United Bankshares, Inc. 14.01% 3. WesBanco, Inc. 8.51% 4. City Holding Company 7.69% 5. Huntington Bancshares Inc. 6.13% 6. JPMorgan Chase & Co. 5.39% 7. Summit Financial Group, Inc. 3.93% 8. MVB Financial Corp
Slide 11: Credit Quality
CREDIT QUALITY End of Period Balances (000s) 6/30/19 9/30/19 Non Accrual Loans $71,123 $69,884 90-Day Past Due Loans $12,729 $9,840 Restructured Loans $58,750 $60,559 Total Non Performing Loans $142,602 $140,283 Other Real Estate Owned $14,469 $18,367 Total Non Performing Assets $157,071 $158,650 No
Slide 12: Capital Ratios & Per Share Data
CAPITAL RATIOS & PER SHARE DATA End of Period Ratios / Values 6/30/19 9/30/19** Common Equity Tier 1 Ratio 12.2% 12.3% Tier 1 Capital Ratio 12.2% 12.3% Total Risk Based Capital Ratio 14.3% 14.4% Leverage Ratio 10.2% 10.2% Total Equity to Total Assets 16.8% 17.0% *Tangible Equity to Tangible Assets (
Slide 13: George Mason Mortgage
GEORGE MASON MORTGAGE George Mason Mortgage is the #1 purchase money lender in the Washington D.C. MSA. GMM contributed strong earnings in 3Q19 due to improved mortgage market conditions, combined with recent expense reduction initiatives and continued focus on gain on sale margins. GMM gain on sale
Slide 14: 2019 Outlook
2019 OUTLOOK Loans & Deposits: Annual loan and deposit growth rates expected in the low single digits for 2019. Net Interest Margin / Net Interest Income: Slightly declining core NIM (excluding purchase accounting loan accretion / compared to 3Q19 net interest margin). Asset Quality: Stable asset qu
Slide 15: UBSI Investment Thesis
UBSI INVESTMENT THESIS Excellent franchise with long-term growth prospects Current income opportunity with a dividend yield of 3.5% (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 owner
Slide 16: The Challenge to Be the Best Never Ends
THE CHALLENGE TO BE THE BEST NEVER ENDS www.ubsi-inc.com
Slide 17: Reconciliation of non-GAAP Items
Reconciliation of non-GAAP Items October 2019 (dollars in thousands) 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $64,412 $63,950 $63,642 $67,207 $65,965 (B) Number of Days in the Quarter 92 92 90 91 92 Average Total Shareholders' Equ
Slide 18: Reconciliation of non-GAAP Items (cont.)
Reconciliation of non-GAAP Items (cont.) October 2019 (dollars in thousands) 6/30/2019 9/30/2019 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 19,882,539 $ 19,751,461 Less: Total Intangibles (GAAP) (1,511,453) (1,509,699) Tangible Assets (non-GAAP) $ 18,371,086 $ 18,241,762 Total Shar