United Bankshares(US:UBSI)2019-04-26 20:17Financial Data and Key Metrics Changes - Net income for Q1 2019 was $3.5 million, an increase from $2.6 million in Q1 2018 and $3.4 million in Q4 2018, leading to fully diluted earnings per share of $0.16, up from $0.12 in 2018 [8][10] - The return on average assets (ROA) for Q1 2019 was 1.01%, and the return on average equity (ROE) was 10.02% [10] - Non-interest expenses decreased by $526,000 or 5.6% year-over-year, totaling $8.84 million in Q1 2019 [7][13] Business Line Data and Key Metrics Changes - Loans excluding the purchase, credit, and payer portfolio grew by $4.2 million in Q1 2019, with total loans increasing by $33.7 million or 3.5% year-over-year [5][12] - The yield on loans increased from 4.68% in Q1 2018 to 5.04% in Q1 2019 [6] Market Data and Key Metrics Changes - Non-interest bearing deposit growth was $15.7 million or 10.4% year-over-year, with non-interest bearing deposits making up 14.2% of total deposits by March 31, 2019 [12][13] - The net interest margin for Q1 2019 was 3.81%, above the average of 3.77% since Q4 2015 [12] Company Strategy and Development Direction - The company aims to increase shareholder value by focusing on quality loan growth, non-interest bearing deposit growth, margin preservation, and expense control [11][15] - The strategy includes maintaining a fortress balance sheet to allow flexibility in an unpredictable interest rate environment [15][18] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth to settle in the 6% range for the year, with a stable outlook for the net interest margin [22][23] - The company remains optimistic about future earnings growth despite competitive pressures in the banking sector [18] Other Important Information - The company paid its first dividend in over nine years during this quarter [9] - Management is focused on enhancing digital banking capabilities and controlling non-interest expenses [7][17] Q&A Session Summary Question: Outlook for loan growth for the remainder of the year - Management anticipates loan growth to be in the 6% range for the year [22] Question: Outlook for the margin without more rate hikes - Management expects the margin to remain stable, with potential slight upticks depending on loan growth [23] Question: Plans for additional branch expansions - One branch is scheduled for closure, with potential for one additional office in Lynchburg and Maryland [27] Question: Outlook on expenses - Management expects expenses to remain stable, with a focus on efficiency [29] Question: View on capital and M&A activity - The company has good capital strength and is selectively looking at M&A opportunities [30] Question: Changes in tax rate outlook - No changes expected in the effective tax rate [31] Question: Expectations for ROA and drivers for improvement - Management targets an ROA above 1%, focusing on deposit mix and expense control [34] Question: Provisioning outlook for the rest of the year - Management expects to see provisions for the next three quarters due to growth [43]