United Bank Earnings and Mortgage Banking Summary
2023 OUTLOOK
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Select guidance is being provided for 2023. 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 mid single digits for 2023 (compared to 4Q22
end of period balance). Loan pipelines continue to be strong. Expect investment portfolio balances to decrease ~$500
million in 2023 (compared to 4Q22 end of period balance). Expect deposit growth in the low single digits (compared to 4Q22
end of period balance).
Net Interest Income / Net Interest Margin: Net interest income (non-FTE) expected to be in the range of $960 million to
$980 million for 2023 (assumes an additional 50 bps of fed funds rate increases in 2023). Expect the net interest margin to
peak early in 2023 due to deposit remixing and late-cycle deposit rate increases. Expect full-cycle total deposit beta of ~35%.
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 near term net charge-offs to remain low. Current
planning assumption for provision expense is $36 million for FY 2023.
Non Interest Income: Expect non interest income to be in the range of $125 million to $135 million for 2023. Mortgage
banking revenue will be subject to industry trends.
Non Interest Expense: Expect non interest expense to be in the range of $560 million to $570 million (includes a ~$6 million
increase in FDIC expense as a result of higher FDIC rates).
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Effective Tax Rate: Estimated at approximately ~20.0% to 20.5%.
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Capital: Stock buyback will be market dependent. United's capital position remains robust.View entire presentation