United Bankshares, Inc. · NASDAQ:UBSI
United Bankshares — Q1 2024 Earnings Presentation
17 slides from United Bankshares's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Review
First Quarter 2024 Earnings Review United Bankshares, Inc. April 25, 2024 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: 1Q24 Highlights
Achieved Net Income of $86.8 million and Diluted Earnings Per Share of $0.64 Generated Return on Average Assets of 1.19%, Return on Average Equity of 7.25%, and Return on Average Tangible Equity* of 11.98% Consistently ranked as one of the most trustworthy banks in America by Newsweek (#1 in 2023, #
Slide 4: Linked-Quarter Net Income Review
Linked-Quarter (LQ) Net Income was $86.8 million in 1Q24 compared to $79.4 million in 4Q23, with diluted EPS of $0.64 in 1Q24 compared to $0.59 in 4Q23. Net Interest Income decreased $7.2 million primarily due to higher interest expense driven by the impact of deposit rate repricing, a decrease in a
Slide 5: Performance Ratios
PERFORMANCE RATIOS *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.
Slide 6: Net Interest Margin and Net Interest Income
Reported Net Interest Margin decreased from 3.55% to 3.44% LQ. Linked-quarter Net Interest Income (FTE) decreased $7.2 million primarily due to higher interest expense driven by the impact of deposit rate repricing, a decrease in acquired loan accretion income and a decrease in loan fees. Approximat
Slide 7: Loan Portfolio and CRE Exposure
Linked-Quarter loan balances increased $159 million primarily driven by Non Owner Occupied CRE and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 13.3% annualized in 1Q24. This is in line with the full year 2023 gr
Slide 8: Asset Quality
End of Period Balances (000s) 12/31/23 3/31/24 Non-Accrual Loans $30,919 $63,053 90-Day Past Due Loans $14,579 $11,329 Total Non-performing Loans $45,498 $74,382 Other Real Estate Owned $2,615 $2,670 Total Non-performing Assets $48,113 $77,052 Non-performing Loans / Loans 0.21% 0.35% Non-performing
Slide 9: Deposits and Deposit Markets
Strong core deposit base with 26% of deposits in Non Interest Bearing accounts. LQ deposits increased $100 million driven by Money Market Accounts and Time Deposits, partially offset by declines in other categories. Brokered deposits total $267.8 million (only 1.2% of total deposits), which represen
Slide 10: Liquidity Position & Additional Deposit Detail
Deposit Account Details ($ in millions) End of Period Ratios / Values 3/31/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $6,727 29% Estimated Insured/Collateralized Deposits $16,193 71% Total Deposits $22,920 100% No borrowings from the FRB Discount
Slide 11: Franchise Markets Overview
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 12/31/23 3/31/24** Common Equity Tier 1 Ratio 13.1% 13.2% Tier 1 Capital Ratio 13.1% 13.2% Total Risk Based Capital Ratio 15.4% 15.6% Leverage Ratio 11.4% 11.4% Total Equity to Total Assets 15.9% 16.0% *Tangible Equity to Tangible Assets (non-GAAP) 10.2% 10.3% Book Valu
Slide 13: 2024 Guidance
Select guidance is being provided for 2024. 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 to mid single digits for the remainder of 2024 (annualized). Loan pipelines contin
Slide 14: 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 15: Appendix
APPENDIX
Slide 16: Reconciliation of Non-GAAP Items
(dollars in thousands) 1Q23 2Q23 3Q23 4Q23 1Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $98,307 $92,459 $96,157 $79,390 $86,814 (B) Number of Days in the Quarter 90 91 92 92 91 Average Total Shareholders' Equity (GAAP) $4,570,288 $4,659,094 $4,687,124 $4,697,680 $4,816,476 Less:
Slide 17: Reconciliation of Non-GAAP Items (Cont.)
(dollars in thousands) 12/31/2023 3/31/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,926,482 $ 30,028,798 Less: Total Intangibles (GAAP) (1,901,394) (1,900,484) Tangible Assets (non-GAAP) $ 28,025,088 $ 28,128,314 Total Shareholders' Equity (GAAP) $ 4,771,240 $ 4,807,441 Less: