United Bankshares : 2022 4th Quarter Earnings Review

United Bankshares, Inc.

Fourth Quarter & Fiscal Year 2022 Earnings Review

January 26, 2023

1

IMPORTANT INFORMATION

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 statements are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) United's plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; (ii) the effect of the COVID-19 pandemic; and (iii) other statements identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "projects," or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations managements of United and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of United. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of possible uncertainties.

The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; (2) uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; (3) volatility and disruptions in global capital and credit markets; (4) interest rate, securities market and monetary supply fluctuations; (5) increasing rates of inflation and slower growth rates; (6) reform of LIBOR; (7) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB;

1. the effect of changes in the level of checking or savings account deposits on United's funding costs and net interest margin; (9) future provisions for credit losses on loans and debt securities; (10) changes in nonperforming assets; (11) competition; and (12) changes in legislation or regulatory requirements. Additional factors, that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed United's reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission and available on the SEC's Internet site (http://www.sec.gov).

United cautions that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning United or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. United does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

2

2022 HIGHLIGHTS

• Achieved record Net Income of $379.6 million. Diluted Earnings Per Share were $2.80
• Generated Return on Average Assets of 1.31%, Return on Average Equity of 8.25%, and Return on Average Tangible Equity* of 14.11%
• Achieved full-year period end loan growth of 15.7% (excluding PPP loans)
• Net Interest Margin (FTE) increased from 3.09% to 3.50% (full year)
• Increased dividends to shareholders for the 49th consecutive year (current dividend yield of 3.7% based upon recent prices)
• Asset quality remains sound and Non-Performing Assets decreased 42.5% YTD
• Strong expense control with an efficiency ratio of 52.88%
• Capital position remains robust and liquidity remains sound

*Non-GAAP measure. Refer to appendix.

3

EARNINGS SUMMARY

In thousands, except per share data			Three Months Ended					Year Ended
		4Q22		3Q22		4Q21			2022		2021
Interest & Fees Income	$	307,741	$	263,683	$	195,194	$	1,001,990	$	795,117
Interest Expense	$	58,337	$	23,061	$	11,516	$	105,559	$	52,383
Net Interest Income	$	249,404	$	240,622	$	183,678	$	896,431	$	742,734
Provision for Credit Losses	$	16,368	$	7,671	$	(7,405)	$	18,822	$	(23,970)
Noninterest Income	$	30,879	$	32,749	$	54,053	$	153,261	$	278,128
Noninterest Expense	$	137,542	$	137,196	$	151,793	$	555,087	$	581,979
Income Before Income Taxes	$	126,373	$	128,504	$	93,343	$	475,783	$	462,853
Income Taxes	$	26,608	$	25,919	$	19,491	$	96,156	$	95,115
Net Income	$	99,765	$	102,585	$	73,852	$	379,627	$	367,738
Diluted EPS		$0.74		$0.76		$0.56			$2.80		$2.83
Weighted Average Diluted Shares		134,799		134,554		131,296			135,118		129,513
Notes
Merger-Related Expenses (before tax)	$	-	$	-	$	20,391	$	537	$	21,418

Linked-Quarter (LQ)

• Net Income was $99.8 million in 4Q22 compared to $102.6 million in 3Q22, with diluted EPS of $0.74 in 4Q22 compared to $0.76 in 3Q22.
• Net Interest Income increased $8.8 million primarily due to higher interest income on earning assets driven by rising market interest rates, organic loan growth, and a change in the asset mix to higher earning assets. The increase in net interest income was partially offset by higher interest expense, driven by deposit rate repricing and higher average balances of FHLB borrowings.
• Provision Expense was $16.4 million in 4Q22 compared to $7.7 million in 3Q22. The increase was primarily due to loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions.
• Noninterest Income decreased $1.9 million primarily due to a decrease of $1.8 million in income from mortgage banking activities.
• Noninterest Expense increased $0.3 million. The expense for reserve for unfunded loan commitments increased $9.4 million and charitable contributions increased $1.8 million. Partially offsetting these increases were declines in other noninterest expense of $5.2 million, driven by a $3.9 million partial recovery of a 3Q accrual related to a litigation matter with a former commercial customer that was settled during 4Q, and declines in employee compensation of $2.1 million.

4

PERFORMANCE RATIOS

Strong profitability and expense control

			Return on Average Assets								Efficiency Ratio
1.60%													60.00%
1.40%													50.00%
1.20%
												40.00%
1.00%
												30.00%
0.80%
0.60%													20.00%
0.40%
												10.00%
0.20%
												0.00%
0.00%
2018	2019	2020	2021	2022	2018	2019	2020	2021	2022

				Return on Average										Return on Average
				Common Equity										Tangible Equity*
10.00%													16.00%
8.00%													14.00%
												12.00%
6.00%													10.00%
												8.00%
4.00%
												6.00%
2.00%													4.00%
												2.00%
0.00%													0.00%
2018	2019	2020	2021	2022	2018	2019	2020	2021	2022

*Non-GAAP measure. Refer to appendix.

5	FY 2020 was impacted by COVID-19, CECL ACL build, pre-taxmerger-related expenses of $54.2 million, and breakage fees of $10.4 million on three FHLB
advance payoffs, largely offset by strong mortgage banking income. FY 2021 was impacted by pre-taxmerger-related expenses of $21.4 million, offset by CECL
	ACL releases.