2024年第3四半期決算の検討 United Bankshares, Inc. (UBSI) 2024年10月24日 付属書 99.2
このプレゼンテーションおよびユナイテッド・バンクシェアーズ株式会社（以下「UBSI」といいます）および同社経営陣による発言には、1933年証券法第27条および1934年証券取引法第21条の意味において前向きな見通しに関する記述が含まれています。これらの前向きな見通しに関する記述は、1995年の民事訴訟改革法に含まれる前向きな見通しに関する免責規定によりカバーされることを意図しています。これらの前向きな見通しに関する記述には、以下を含みますが、これらに限定されません： (i) ピードモント・バンコープ株式会社（以下「ピードモント」といいます）とUBSIとの合併（以下「合併」といいます）のメリットについての記述、将来の財務および業績結果、コスト削減、売上高向上、合併から得ることができる報告利益への増加など。 （ii）UBSIおよびピードモントの計画、目標、期待、意図、およびこのプレスリリースに含まれるその他の歴史的事実でない記述。 （iii）一般的に前向きな見通しを特定する意図で使用される単語「expects」「anticipates」「intends」「plans」「believes」「seeks」「estimates」「targets」「projects」「will」などの単語によって特定される他の記述。これらの前向きな見通しに関する記述は、UBSIとピードモントのそれぞれの経営陣の現在の信念と期待に基づいており、UBSIとピードモントのコントロールを超える多大なビジネス、経済、競争の不確実性や状況に従属しています。さらに、これらの前向きな見通しに関する記述は、将来のビジネス戦略や意思決定に関する仮定に従属しています。可能性のある不確実性のため、これらの前向きな見通しにおける議論された予想結果と実際の結果が異なる場合があります。 次の要因の中で、他の期待とは異なる実際の結果をもたらす可能性がある要因があります：（1）UBSIとピードモントの事業が成功裏に統合されない可能性があります、またはその統合が予想よりも長く、難しい、時間がかかる、あるいは高価である可能性があります。 （2）合併からの予想される成長機会やコスト削減が完全に実現されない可能性があるか、予想よりも実現するまでに時間がかかる可能性があります。 （3）合併後の預金の減少、運営コスト、顧客喪失、および業務の中断が、従業員との関係に悪影響を及ぼす可能性があります。 その他多くの要因により、これらの前向きな見通しに記述されている予想結果や他の期待と実際の結果が異なる可能性があります。
当期純利益は9530万ドル、希薄化後1株あたりの利益は0.70ドルで、平均資産利益率は1.28％、平均株主資本利益率は7.72％、平均実質株主資本利益率は12.59％ 純金利マージン（FTE）は3.50％から3.52％に増加 期末の入金残高は76200万ドル増加し、ブローカー取引の減少を除くと、期末の入金残高は90600万ドル増加 Piedmont Bancorp, Inc.の合併-株主承認は3Q24に受理。規制当局の承認およびその他の標準的な閉会条件次第で、4Q24または1Q25初めに完了する予定 アメリカの信頼性の高い銀行の一つとして常にNewsweekによりランクイン（2023年1位、2022年2位、2024年4位） FDICの2024年度預金概要に基づいて、ウェストバージニア州で第1位の預金市場シェアポジションを獲得した 四半期あたりの配当は1株あたり0.37ドルで、最近の価格に基づいて約4.0％の利回りに相当。 株主に対する50年連続の配当増額の2023年 資産の質は健全で、不良資産は総資産の0.22％で低水準 経費効率率は51.62％で、資本ポジションは堅調で流動性も健全 3Q24のハイライト *非GAAP基準。付録を参照してください。
Linked-Quarter (LQ) Net Income was $95.3 million in 3Q24 compared to $96.5 million in 2Q24, with diluted EPS of $0.70 in 3Q24 compared to $0.71 in 2Q24. Net Interest Income increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partially offset by an increase in average interest-bearing deposits as well as a higher average rate paid on deposits. Provision Expense was $6.9 million in 3Q24 compared to $5.8 million in 2Q24. Noninterest Income increased $1.7 million compared to 2Q24 driven by increases in several categories of noninterest income. During 3Q24, United sold its remaining mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of $1.1 billion at a gain of $7.1 million. United also sold $196.7 million of AFS investment securities at a loss of $6.9 million. Noninterest Expense increased $0.6 million compared to 2Q24 driven by a $1.5 million increase in other noninterest expense. The increase in other noninterest expense was mainly due to higher amounts of certain general operating expenses, partially offset by decreases in several categories including a decrease of $0.9 million in merger-related expenses related to the Piedmont acquisition. The effective tax rate increased from 16.4% to 20.6% in 3Q24. 2Q24 included the impact of discrete tax benefits recognized in 2Q24. EARNINGS SUMMARY
*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. PERFORMANCE RATIOS
Reported Net Interest Margin increased from 3.50% to 3.52% LQ. Linked-quarter Net Interest Income (FTE) increased $4.5 million driven by an increase in average short-term investments, a higher yield on average net loans and loans held for sale, and a decrease in average long-term borrowings partially offset by an increase in average interest-bearing deposits as well as a higher average rate paid on deposits. Approximately ~55% of the loan portfolio is fixed rate and ~45% is adjustable rate, while ~31% of the total portfolio is projected to reprice within the next 3 months. ~21% of the securities portfolio is floating rate. Securities balances of approximately ~$360 million with an average yield of ~4.5% are projected to roll off over the remainder of 2024. Securities balances of an additional approximately ~$360 million with an average yield of ~3.8% are projected to roll off during FY 2025. During 3Q24, approximately ~$197 million of securities were sold at a loss of $6.9 million. The securities sold were comprised of ~66% in floating rate securities and ~34% in fixed rate securities. Approximately ~$150 million was reinvested in fixed rate securities with an average yield of ~5.1%. HTM securities are immaterial at $1.0 million, or 0.0% of total securities. The duration of the AFS portfolio is 4.2 years. Time deposits have an average maturity of ~6 months. Approximately ~12% of total deposits have interest rates tied to a floating rate index. Scheduled purchase accounting loan accretion is estimated at $1.8 million for the remainder of FY 2024 and $5.7 million for FY 2025 (not including the impact from the Piedmont acquisition). NET INTEREST INCOME AND MARGIN
Linked-Quarter loan balances increased $21 million primarily driven by Construction & Land Development and Residential Real Estate loans. Loan growth continues to be led by the North Carolina & South Carolina markets, with loan balances up 10.2% annualized in 3Q24, and up 14.7% annualized YTD. Non Owner Occupied CRE to Total Risk Based Capital was ~271% at 3Q24. CRE portfolio remains diversified among underlying collateral types. Non Owner Occupied Office loans total $1.0 billion (~5% of total loans). The Top 40 Office loans make up ~70% of total Non Owner Occupied Office balances. The weighted average LTV based on current loan balances and appraised values at origination for the Top 40 was ~56% at 9/30/24. The weighted average LTV at origination for the Top 40 was ~63%. United has been disciplined in its approach to underwriting Office loans. The stringent underwriting process focuses on the underlying tenants, lease terms, sponsor support, location, property class, amenities, etc. Weighted average FICO of all consumer-related loan sectors is ~757. Total purchase accounting-related fair value discount on loans was $28 million as of 9/30/24. $ in millions LOAN SUMMARY (EXCLUDES LOANS HELD FOR SALE)
End of Period Balances (000s) 6/30/24 9/30/24 Non-Accrual Loans $52,929 $52,446 90-Day Past Due Loans $12,402 $12,794 Total Non-performing Loans $65,331 $65,240 Other Real Estate Owned $2,156 $169 Total Non-performing Assets $67,487 $65,409 Non-performing Loans / Loans 0.30% 0.30% Non-performing Assets / Total Assets 0.23% 0.22% Annualized Net Charge-offs / Average Loans 0.02% 0.07% Allowance for Loan & Lease Losses (ALLL) $267,423 $270,767 ALLL / Loans, net of unearned income 1.24% 1.25% Allowance for Credit Losses (ACL)* $308,162 $308,740 ACL / Loans, net of unearned income 1.43% 1.43% NPAs were $65.4 million at 9/30/24 compared to $67.5 million at 6/30/24 with the ratio of NPAs to Total Assets decreasing from 0.23% to 0.22%. 30-89 Day Past Due loans were 0.44% of total loans at 9/30/24 compared to 0.40% at 6/30/24 and 0.39% at 12/31/23. ALLL increased $3.3 million LQ to 1.25% of Total Loans. *ACL is comprised of ALLL and the reserve for lending-related commitments CREDIT QUALITY
Strong core deposit base with 25% of deposits in Non Interest Bearing accounts. LQ deposits increased $762 million driven by Money Market Accounts, Interest Bearing Transaction and Non Interest Bearing accounts. Brokered deposits declined $144 million compared to 2Q24 and now represent 0.0% of total deposits as of 9/30/24. Enviable deposit franchise with an attractive mix of both high growth MSAs and stable, rural markets with a dominant market share position. $ in millions Source: S&P Global Market Intelligence DEPOSIT SUMMARY Top 10 Deposit Markets by MSA (as of 6/30/24) MSA Total Deposits In Market ($000) Number of Branches Rank Washington, DC 10,071,646 58 7 Charleston, WV 1,589,675 5 2 Morgantown, WV 1,141,970 6 2 Richmond, VA 762,351 12 9 Parkersburg, WV 713,929 4 1 Hagerstown, MD 656,854 6 2 Myrtle Beach, SC 631,752 7 9 Charlotte, NC 585,589 7 17 Wheeling, WV 537,803 6 2 Charleston, SC 524,432 8 11
Deposit Account Details ($ in millions) End of Period Ratios / Values 9/30/24 % of Total Deposits Estimated Uninsured Deposits (less affiliate and collateralized deposits) $7,448 31% Estimated Insured/Collateralized Deposits $16,380 69% Total Deposits $23,828 100% *Does not include other sources of liquidity such as Fed Funds Lines, additional Reciprocal Deposit capacity, etc. Available Liquidity ($ in millions) 9/30/24 Cash & Cash Equivalents $1,909 Unpledged AFS Securities $1,083 Available FHLB Borrowing Capacity $4,032 Available FRB Discount Window Borrowing Capacity $4,585 Subtotal $11,609 Additional FHLB Capacity (with delivery of collateral) $4,154 Additional Brokered Deposit Capacity (based on internal policy) $4,766 Total Liquidity* $20,529 Liquidity remains strong with a granular deposit base and geographic diversification. Average deposit account size is ~$36 thousand with >650 thousand total deposit accounts. Estimated uninsured/uncollateralized deposits were 28% at 12/31/23 and 37% at 12/31/22. LIQUIDITY POSITION & ADDITIONAL DEPOSIT DETAIL
West Virginia #1 in the state with $6.3 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 dominant market share position. Further growth opportunities exist to expand our presence in some of the most desirable banking markets in the nation. These dynamics uniquely position our franchise and contribute to making United one of the most valuable banking companies in the Southeast and Mid-Atlantic. Washington D.C. MSA #1 regional bank (#7 overall) with $10.1 billion in deposits. United has increased deposit market share in the D.C. MSA from #15 in 2013 to #7 in 2024, with total deposits increasing from $2.1 billion to $10.1 billion. Virginia- #7 in the state with $9.1 billion (including VA deposits within the D.C. MSA). North Carolina #17 in the state with $2.3 billion. Select MSAs: #17 in Charlotte #26 in Raleigh #9 in Wilmington #10 in Greenville #1 in Washington #8 in Rocky Mount #7 in Fayetteville South Carolina #11 in the state with $1.8 billion. Select MSAs: #11 in Charleston #9 in Myrtle Beach #13 in Greenville #15 in Columbia Source: S&P Global Market Intelligence; Data as of 6/30/24 ATTRACTIVE DEPOSIT MARKET SHARE POSITION
End of Period Ratios / Values 6/30/24 9/30/24** Common Equity Tier 1 Ratio 13.5% 13.8% Tier 1 Capital Ratio 13.5% 13.8% Total Risk Based Capital Ratio 15.8% 16.2% Leverage Ratio 11.6% 11.7% Total Equity to Total Assets 16.2% 16.6% *Tangible Equity to Tangible Assets (non-GAAP) 10.5% 11.0% Book Value Per Share $35.92 $36.74 *Tangible Book Value Per Share (non-GAAP) $21.87 $22.70 Capital ratios remain significantly above regulatory “Well Capitalized” levels and exceed all internal capital targets. United did not repurchase any common shares during 2Q24 or 3Q24. As of 9/30/24, there were 4,371,239 shares available to be repurchased under the approved plan. *Non-GAAP measure. Refer to appendix. **Regulatory ratios are estimates as of the earnings release date. CAPITAL RATIOS AND PER SHARE DATA
Select guidance is being provided for 2024. Our outlook may change if the expectations for these items vary from current expectations. The guidance represents UBSI on a standalone basis and does not include any assumed impact from the Piedmont acquisition. Balance Sheet: Expect loan growth, excluding loans held for sale, to be in the low single digits for the 4th quarter of 2024 (annualized). Expect investment portfolio balances to increase ~$100 million in 4Q24. Expect deposits to be relatively flat in 4Q24. Net Interest Income / Net Interest Margin: Net interest income (non-FTE) expected to be in the range of $908 million to $913 million for 2024 (assumes two 25 bps rate cuts in 4Q24). Expect the net interest margin to remain relatively stable in 4Q24 compared to 3Q24. Provision Expense: Asset quality remains sound. Provision expense will be dependent on the future economic outlook, future credit trends within United’s portfolio, and loan growth. Expect credit environment to continue to normalize. Expect United’s credit performance to outperform the industry. Current planning assumption for provision expense is $25 million for FY 2024. Non Interest Income: Expect non interest income to be in the range of $122 million to $126 million for 2024. Mortgage banking revenue will be subject to industry trends. Non Interest Expense: Expect non interest expense, excluding any additional merger-related expenses, to be in the range of $547 million to $552 million for 2024. Effective Tax Rate: Estimated at approximately ~20.5% for the remainder of 2024. Capital: Stock buyback will be market dependent. United’s capital position remains robust. 2024 OUTLOOK
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 evidences United’s strong profitability, solid asset quality, and sound capital management over a very long period of time Experienced management team with a proven track record of execution Committed to our mission of excellence in service to our employees, our customers, our shareholders and our communities Attractive valuation with a current Price-to-Earnings Ratio of ~13.6x (based upon median 2024 street consensus estimate of $2.70 per Bloomberg) INVESTMENT THESIS
Continuation of UBSI’s proven M&A strategy | UBSI’s 34th acquisition Entrance into Greater Atlanta Area markets with robust economic growth opportunities Enhances UBSI’s position as one of the premier regional banking companies in the Southeast and Mid-Atlantic Piedmont Overview Advancing Strategy Financially Compelling Low-Risk Transaction(3) Transaction Details, Timing and Approvals Headquarters: Peachtree Corners, GA Total Assets: $2.1 billion(1) High-performing Franchise(2): 1.43% LTM ROAA; 14.9% LTM ROATCE; LTM Net Interest Margin 4.25%; NPAs / Assets 0.00% Internal Rate of Return of 20% EPS Accretion of 7.6%(4) in 2025 and 8.3% in 2026 (3.5%) Dilution to Tangible Book Value per Share (GAAP) | Earnback of 2.8 Years UBSI Maintains “Well-Capitalized” regulatory capital ratios 15.0% Total Risked Based Capital Ratio | 10.4% Tangible Common Equity Pro forma CRE to Total Capital Ratios at closing below regulatory guidance (<100% ADC to TRBC | <300% Total CRE to TRBC) Consideration Mix: 100% stock Fixed Exchange Ratio: 0.300x Anticipated Closing: late 2024 / early 2025 Customary regulatory approvals (only Fed approval is required at the federal level) Piedmont shareholder approval received (1) As of March 31, 2024 // (2) Q1 2024 LTM financial highlights shown as bank level // (3) Projections as of merger announcement date // (4) Assumes fully phased-in cost savings Source: S&P Capital IQ Pro PIEDMONT MERGER- ANNOUNCED MAY 10, 2024
Total Assets Note: Pro forma financial information at anticipated closing date based on assumptions at time of deal announcement Source: S&P Capital IQ Pro ~$25.5 Billion ~$31.8 Billion Net Loans Total Deposits Tangible Common Equity ~$23.7 Billion ~$3.1 Billion 227 Locations Pro Forma 16 Locations 243 Locations PIEDMONT MERGER- PRO FORMA FRANCHISE
(1) Estimated total pro forma assets at transaction close based on assumptions at time of deal announcement Source: S&P Capital IQ Pro; Company filings (1) DEMONSTRATED HISTORY OF SUCCESSFUL ACQUISITIONS
APPENDIX
(dollars in thousands) 3Q23 4Q23 1Q24 2Q24 3Q24 (1) Return on Average Tangible Equity (A) Net Income (GAAP) $96,157 $79,390 $86,814 $96,507 $95,267 (B) Number of Days in the Quarter 92 92 91 91 92 Average Total Shareholders' Equity (GAAP) $4,687,124 $4,697,680 $4,816,476 $4,857,893 $4,908,866 Less: Average Total Intangibles (1,904,769) (1,903,458) (1,901,074) (1,900,164) (1,899,261) (C) Average Tangible Equity (non-GAAP) $2,782,355 $2,794,222 $2,915,402 $2,957,729 $3,009,605 Formula: [(A) / (B)]*365 (or 366 for leap year) (C) Return on Average Tangible Equity (non-GAAP) 13.71% 11.27% 11.98% 13.12% 12.59% RECONCILIATION OF NON-GAAP ITEMS
(dollars in thousands) 6/30/2024 9/30/2024 (2) Tangible Equity to Tangible Assets Total Assets (GAAP) $ 29,957,418 $ 29,863,262 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Assets (non-GAAP) $ 28,057,844 $ 27,964,597 Total Shareholders' Equity (GAAP) $ 4,856,633 $ 4,967,820 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Equity (non-GAAP) $ 2,957,059 $ 3,069,155 Tangible Equity to Tangible Assets (non-GAAP) 10.5% 11.0% (3) Tangible Book Value Per Share: Total Shareholders' Equity (GAAP) $ 4,856,633 $ 4,967,820 Less: Total Intangibles (GAAP) (1,899,574) (1,898,665) Tangible Equity (non-GAAP) $ 2,957,059 $ 3,069,155 ÷ EOP Shares Outstanding (Net of Treasury Stock) 135,195,704 135,220,770 Tangible Book Value Per Share (non-GAAP) $21.87 $22.70 RECONCILIATION OF NON-GAAP ITEMS (CONT.)