United Bank Earnings and Mortgage Banking Summary slide image

United Bank Earnings and Mortgage Banking Summary

• NET INTEREST INCOME AND MARGIN Average Yields 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 4Q21 1Q22 2Q22 3Q22 Net Loans -Investment Securities 8 Net Interest Income & Net Interest Margin $250 4.50% $225 4.00% $200 3.50% $175 3.00% $150 2.50% $125 2.00% $100 1.50% $75 $50 1.00% $25 0.50% $0 0.00% 4Q21 1Q22 2Q22 3Q22 4Q22 PPP Fee Income 5.0 4.1 3.6 1.6 0.3 Loan PA Accretion 6.2 4.1 5.4 4.1 4.7 4Q22 Net Interest Income (FTE), excluding PPP fees & loan accretion Net Interest Margin (FTE) 173.5 184.4 207.0 236.0 245.5 2.94% 2.99% 3.38% 3.78% 3.87% Interest-Bearing Deposits Reported Net Interest Margin increased from 3.78% to 3.87% LQ. Linked-quarter Net Interest Income (FTE) was up $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. Approximately ~58% of the loan portfolio is fixed rate and ~42% is adjustable rate, while ~28% of the total portfolio is projected to reprice within the next 3 months. Additionally, ~25% of the securities portfolio is floating rate. Securities balances of approximately ~$650 million with an average yield of ~2.5% are projected to roll off during 2023. Total remaining unamortized PPP fees (net of costs) were $0.8 million as of 12/31/22. Scheduled purchase accounting loan accretion is estimated at $10.5 million for FY 2023 and $8.9 million for FY 2024.
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