• United Bankshares, Inc.
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  • United Bankshares, Inc. Announces Increased Earnings for the Fourth Quarter and Year of 2014
    Company Release - 01/29/2015 07:50

    WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI), today reported an increase in earnings for the fourth quarter and year of 2014 as compared to same time periods last year. Earnings for the fourth quarter of 2014 were $33.3 million or $0.48 per diluted share as compared to earnings of $19.7 million or $0.39 per diluted share for the fourth quarter of 2013. Earnings for the year of 2014 were $129.9 million or $1.92 per diluted share, an increase from earnings of $85.6 million or $1.70 per diluted share for the year of 2013.

    Fourth quarter of 2014 results produced an annualized return on average assets of 1.09% and an annualized return on average equity of 7.88%. For the year of 2014, United’s return on average assets was 1.11% while the return on average equity was 8.13%. United’s annualized returns on average assets and average equity were 0.91% and 7.57%, respectively, for the fourth quarter of 2013 while the returns on average assets and average equity were 1.02% and 8.43%, respectively, for the year of 2013.

    “In 2014, United had the most successful year in the company’s long history,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Before tax earnings increased from $125 million to a record $195 million. Earnings per share increased 13% from $1.70 to $1.92. We outperformed peer profitability with a return on average assets of 1.11% as compared to 0.95% for our peer group. We increased the dividend to shareholders from $1.25 to $1.28 per share, which represented the 41st consecutive year of dividend increases to shareholders. That is a record only one other major banking company in the United States has been able to achieve. Our stock price increased 19% for the year as compared to the NASDAQ Bank Index which increased 3% and the Keefe, Bruyette & Woods (KBW) Bank Index which was flat. Our total return increased 23.8% as compared to increases of 4.9% and 2.4% for the NASDAQ Bank Index and KBW Bank Index, respectively. We successfully executed the largest merger in the company’s history with Virginia Commerce Bancorp, Inc., headquartered in Arlington, Virginia, which increased total assets from $8.7 billion to a record $12 billion.”

    On January 31, 2014, United completed its acquisition of Virginia Commerce Bancorp, Inc. (Virginia Commerce). The results of operations of Virginia Commerce are included in the consolidated results of operations from the date of acquisition. As a result, comparisons for the fourth quarter and year of 2014 to the fourth quarter and year of 2013 are impacted by increased levels of average balances, income, and expense due to the acquisition. At consummation, Virginia Commerce had assets of approximately $2.8 billion, loans of $2.1 billion, and deposits of $2.0 billion.

    The results for the fourth quarter and year of 2014 included noncash, before-tax, other-than-temporary impairment charges of $704 thousand and $6.5 million, respectively, on certain investment securities. The results for the fourth quarter and year of 2013 included noncash, before-tax, other-than-temporary impairment charges of $6.4 million and $7.3 million, respectively, on certain investment securities. Also included in the results for the fourth quarter and year of 2014 was a penalty of $2.0 million to prepay a Federal Home Loan Bank (FHLB) advance with a high interest rate. As previously reported, United sold a former branch building during the first quarter of 2014 which resulted in a before-tax gain of $9.0 million. In addition, the results for the year of 2014 included merger related expenses and charges of $5.3 million as compared to $2.0 million for the year of 2013.

    Tax-equivalent net interest income for the fourth quarter of 2014 was $102.1 million, an increase of $31.4 million or 44% from the fourth quarter of 2013. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Virginia Commerce acquisition. Average earning assets increased $3.1 billion or 40% from the fourth quarter of 2013. Average net loans increased $2.4 billion or 37% for the fourth quarter of 2014 while average investment securities and average short-term investments increased $464.4 million or 55% and $203.6 million or 84%, respectively. In addition, the average yield on earning assets increased 9 basis points while the average cost of funds declined 3 basis points from the fourth quarter of 2013. The net interest margin for the fourth quarter of 2014 was 3.77%, which was an increase of 11 basis points from a net interest margin of 3.66% for the fourth quarter of 2013.

    Tax-equivalent net interest income for the year of 2014 was $382.0 million, an increase of $106.2 million or 38% from the year of 2013. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Virginia Commerce acquisition. Average earning assets increased $2.8 billion or 37% from the year of 2013. Average net loans increased $2.2 billion or 34% for the year of 2014 while average investment securities and average short-term investments increased $482.4 million or 61% and $145.2 million or 62%, respectively. In addition, the average cost of funds declined 9 basis points from the year of 2013. Partially offsetting the increases to tax-equivalent net interest income for the year of 2014 was a decline of 4 basis points in the average yield on earning assets as compared to the year of 2013. The net interest margin for the year of 2014 was 3.71%, which was an increase of 3 basis points from a net interest margin of 3.68% for the year of 2013.

    On a linked-quarter basis, United’s tax-equivalent net interest income for the fourth quarter of 2014 increased $4.6 million or 5% due mainly to increases in average earning assets and the average yield on those average earning assets. Average earning assets increased $175.3 million or 2% during the quarter. Average net loans increased $110.2 million or 1%. Average short-term investments increased $42.3 million or 10% while average investment securities increased $22.8 million or 2% for the quarter. The fourth quarter of 2014 average yield on earning assets increased 12 basis points from the third quarter of 2014 due primarily to interest income of $3.2 million on the repayment of a large acquired loan. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2014 was an increase of a basis point in the average cost of funds as compared to the third quarter of 2014. The net interest margin of 3.77% for the fourth quarter of 2014 was an increase of 11 basis points from the net interest margin of 3.66% for the third quarter of 2014.

    For the quarters ended December 31, 2014 and 2013, the provision for loan losses was $6.3 million and $4.3 million, respectively, while the provision for the year of 2014 was $21.9 million as compared to $19.3 million for the year of 2013. Net charge-offs were $6.5 million and $20.6 million for the fourth quarter and year of 2014, respectively, as compared to $4.7 million and $19.0 million for the same time periods in 2013. Annualized net charge-offs as a percentage of average loans were 0.28% and 0.24% for the fourth quarter and year of 2014, respectively. United’s most recently reported Federal Reserve peer group’s net charge-offs to average loans percentage was 0.29% for the first nine months of 2014. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2014 increased $1.6 million while net charge-offs increased $2.5 million from the third quarter of 2014.

    Noninterest income for the fourth quarter of 2014 was $19.4 million, which was an increase of $7.5 million from the fourth quarter of 2013. Included in noninterest income for the fourth quarter of 2014 were noncash, before-tax, other-than-temporary impairment charges of $704 thousand on certain investment securities as compared to $6.4 million for the fourth quarter of 2013. In addition, net gains on sales and calls of investment securities were $1.2 million and $934 thousand for the fourth quarter of 2014 and 2013, respectively. Excluding the results of the noncash, other-than-temporary impairment charges as well as the net gains from sales and calls of investment securities, noninterest income for the fourth quarter of 2014 increased $1.6 million or 9% from the fourth quarter of 2013. This increase for the fourth quarter of 2014 was due primarily to an increase of $705 thousand in fees from deposit services as a result of increased debit card and automated teller machine (ATM) usage as a result of the Virginia Commerce merger. Also, fees from bankcard services increased $341 thousand due to an increase in volume and income from bank-owned life insurance policies increased $203 thousand due to an increase in cash surrender values.

    Noninterest income for the year of 2014 was $81.0 million, which was an increase of $14.5 million from the year of 2013. Included in noninterest income for the year of 2014 was the previously mentioned net gain of $9.0 million on the sale of bank premises as well as noncash, before-tax, other-than-temporary impairment charges of $6.5 million on certain investment securities as compared to noncash, before-tax other-than-temporary impairment charges of $7.3 million on certain investment securities for the year of 2013. In addition, net gains on sales and calls of investment securities were $3.4 million and $1.5 million for the year of 2014 and 2013, respectively. Excluding the net gain on the sale of bank premises, the noncash, other-than-temporary impairment charges as well as the net gains from sales and calls of investment securities, noninterest income for year of 2014 increased $2.8 million or 4% from the year of 2013. This increase was due mainly to higher fees from deposit services of $2.1 million due to increased debit card and ATM usage, an increase in income from trust and brokerage services of $1.7 million due to increased volume and value of assets under management and a rise in fees from bankcard services of $616 thousand due to higher volume. These increases were partially offset by decreases in mortgage banking income of $695 thousand due to fewer sales in the secondary market and income from bank-owned insurance policies of $488 thousand due to large death benefits in 2013.

    On a linked-quarter basis, noninterest income for the fourth quarter of 2014 increased $3.3 million from the third quarter of 2014. Included in the results for the fourth quarter and third quarter of 2014 were noncash, before-tax, other-than-temporary impairment charges of $704 thousand and $4.7 million, respectively. In addition, the results for the fourth and third quarter of 2014 included net gains on sales and calls of investment securities of $1.2 million and $1.3 million, respectively. Excluding the noncash, other-than-temporary impairment charges as well as the net gains from sales and calls of investment securities, noninterest income decreased $684 thousand or 3% on a linked-quarter basis. This decrease was mainly due to declines in mortgage banking income of $369 thousand due to decreased sales in the secondary market and fees from deposit services of $357 thousand as a result of a decrease in overdraft fees.

    Noninterest expense for the fourth quarter of 2014 was $64.0 million, an increase of $16.2 million or 34% from the fourth quarter of 2013 due mainly to the Virginia Commerce merger and the previously mentioned prepayment penalty of $2.0 million on an FHLB advance. Due to the merger, most major categories of noninterest expense showed increases. In particular, employee compensation increased $4.9 million, net occupancy expenses increased $1.6 million, data processing fees increased $874 thousand and equipment expense increased $669 thousand. These increases were due mainly to the additional employees, offices, equipment, and data processing expenses as a result of the Virginia Commerce acquisition. In addition, expense on other real estate owned (OREO) increased $1.5 million from the fourth quarter of 2013 due to declines in the fair values of OREO properties and Federal Deposit Insurance Corporation (FDIC) insurance expense increased $480 thousand due to a higher assessment base as a result of the Virginia Commerce acquisition. Partially offsetting these increases from the fourth quarter of 2013 was a decrease of $570 thousand in employee benefits due to a decline in pension expense.

    Noninterest expense for the year of 2014 was $239.8 million, an increase of $47.8 million or 25% from the year of 2013 due mainly to the Virginia Commerce merger. Accordingly, most major categories of noninterest expense showed increases. In particular, employee compensation increased $22.8 million including $3.6 million of merger severance charges, net occupancy expenses increased $6.0 million, data processing fees increased $3.1 million, and equipment expense increased $1.8 million. These increases were due mainly to the additional employees, offices, equipment, and data processing expenses as a result of the Virginia Commerce acquisition. In addition, FDIC insurance expense and OREO expense for the year of 2014 increased $1.4 million and $1.3 million, respectively, from the year of 2013 due to a higher assessment base as a result of the Virginia Commerce acquisition and a decline in the fair values of OREO properties, respectively. Partially offsetting these increases was a decrease of $2.5 million in employee benefits due to a decline in pension expense.

    On a linked-quarter basis, noninterest expense for the fourth quarter of 2014 increased $6.3 million or 11% from the third quarter of 2014 due primarily to the previously mentioned prepayment penalty of $2.0 million on an FHLB advance. In addition, the expense associated with the reserve for lending related commitments increased $1.0 million, OREO expense increased $954 thousand due to declines in the fair values of OREO properties and equipment expense increased $671 thousand due to software costs and certain maintenance contracts expensed in the fourth quarter. Also included in noninterest expense for the fourth quarter of 2014 was a donation of $800 thousand to an educational institution.

    United’s asset quality continues to be sound. At December 31, 2014, nonperforming loans were $109.0 million or 1.20% of loans, net of unearned income, as compared to nonperforming loans of $81.1 million or 1.21% of loans, net of unearned income, at December 31, 2013. As of December 31, 2014, the allowance for loan losses was $75.5 million or 0.83% of loans, net of unearned income, as compared to $74.2 million or 1.11% of loans, net of unearned income, at December 31, 2013. The decline in the ratio at December 31, 2014 of the allowance for loan losses as a percentage of loans, net of unearned income, was mainly because United was unable to carry-over Virginia Commerce’s previously established allowance for loan losses as acquired loans are recorded at fair value in accordance with accounting rules. In addition, the allowance for loan losses declined during the year due to lower historical loss rates and specific loan allocations. Total nonperforming assets of $147.7 million, including OREO of $38.8 million at December 31, 2014, represented 1.20% of total assets.

    United continues to be well-capitalized based on all regulatory guidelines. United’s estimated risk-based capital ratio is 13.2% at December 31, 2014 while its Tier I capital and leverage ratios are 12.3% and 10.3%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Tier I capital ratio of 6% and a leverage ratio of 5%.

    During the fourth quarter of 2014, United’s Board of Directors declared a cash dividend of $0.32 per share. The 2014 dividend of $1.28 per share represented the 41st consecutive year of dividend increases for United shareholders.

    United has consolidated assets of approximately $12.3 billion with 130 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C.United Bankshares stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

    Cautionary Statements

    The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2014 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2014 and will adjust amounts preliminarily reported, if necessary.

    Use of non-GAAP Financial Measures

    This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.

    Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, noninterest income excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

    Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 35%.

    GAAP total non-interest income results are adjusted for other-than-temporary impairment charges (OTTI) on certain investment securities, net gains or losses on the sale of securities and any infrequent noninterest income items. Management believes noninterest income without OTTI charges, net securities gains or losses and infrequent noninterest income items is more indicative of United’s performance because it isolates income that is primarily customer relationship driven and is more indicative of normalized operations. In addition, these items can fluctuate greatly from quarter to quarter and are difficult to predict.

    The efficiency ratio used by United focuses on the performance of its core business operations. It is used by management as a measure of operating expense control. In general, the GAAP efficiency ratio is total noninterest expenses as a percentage of net interest income plus total noninterest income as shown on the face of the Consolidated Statements of Income. In United’s calculation of its efficiency ratio, amortization of intangibles, OREO expense and any infrequent noninterest expenses are excluded from total noninterest expenses. Net interest income is increased for the favorable treatment of tax-exempt income and excludes securities gains and losses as well as any infrequent noninterest income items from total noninterest income. Management believes that excluding these items is more indicative of United’s normalized operations and is highly useful in comparing period-to-period core operating performance.

    Tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of common equity are presented.These two measures, along with others, are used by management to analyze capital adequacy.

    Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

    Forward-Looking Statements

    This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties.Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

     

     

    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    FINANCIAL SUMMARY

    (In Thousands Except for Per Share Data)

     
    Three Months EndedYear Ended
    December 31

    2014

      December 31

    2013

    December 31

    2014

      December 31

    2013

    EARNINGS SUMMARY:    
    Interest income, taxable equivalent (non-GAAP) $ 113,252 $ 79,111 $ 424,858 $ 312,153
    Interest expense 11,166 8,453 42,834 36,313
    Net interest income, taxable equivalent (non-GAAP) 102,086 70,658 382,024 275,840
    Taxable equivalent adjustment 1,530 1,472 6,316 5,999
    Net interest income (GAAP) 100,556 69,186 375,708 269,841
    Provision for loan losses 6,309 4,343 21,937 19,267
    Noninterest income 19,415 11,905 80,962 66,506
    Noninterest expenses 64,024 47,836 239,847 192,036
    Income taxes 16,381 9,252 64,998 39,416
    Net income $ 33,257 $ 19,660 $ 129,888 $ 85,628
     
    PER COMMON SHARE:
    Net income:
    Basic $ 0.48 $ 0.39 $ 1.93 $ 1.70
    Diluted 0.48 0.39 1.92 1.70
    Cash dividends $ 0.32 $ 0.32 1.28 1.25
    Book value 23.90 20.66
    Closing market price $ 37.45 $ 31.45
    Common shares outstanding:
    Actual at period end, net of treasury shares 69,295,859 50,430,267
    Weighted average- basic 69,088,844 50,417,452 67,404,254 50,353,452
    Weighted average- diluted 69,355,086 50,564,497 67,648,673 50,426,078
     
    FINANCIAL RATIOS:
    Return on average assets 1.09 % 0.91 % 1.11 % 1.02 %
    Return on average shareholders’ equity 7.88 % 7.57 % 8.13 % 8.43 %
    Average equity to average assets 13.79 % 12.01 % 13.71 % 12.07 %
    Net interest margin 3.77 % 3.66 % 3.71 % 3.68 %
     
    December 31

    2014

      December 31

    2013

    December 31

    2012

      September 30

    2014

    PERIOD END BALANCES:
    Assets $ 12,328,811 $ 8,735,324 $ 8,420,013 $ 12,085,063
    Earning assets 10,931,194 7,805,772 7,459,217 10,657,693
    Loans, net of unearned income 9,104,652 6,704,583 6,511,416 9,015,903
    Loans held for sale 8,680 4,236 17,762 5,773
    Investment securities 1,316,040 889,342 729,402 1,307,242
    Total deposits 9,045,485 6,621,571 6,752,986 8,753,257
    Shareholders’ equity 1,656,160 1,041,732 992,251 1,653,673

    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

           
    Consolidated Statements of Income
    Three Months Ended
    DecemberDecemberSeptemberJuneMarch
    20142013201420142014
    Interest & Loan Fees Income (GAAP)$ 111,722$ 77,639$ 106,857$ 104,799$ 95,164
    Tax equivalent adjustment 1,530   1,472   1,572   1,606   1,608  
    Interest & Fees Income (FTE) (non-GAAP) 113,252 79,111 108,429 106,405 96,772
    Interest Expense 11,166   8,453   10,939   10,867   9,862  
    Net Interest Income (FTE) (non-GAAP) 102,086 70,658 97,490 95,538 86,910
     
    Provision for Loan Losses 6,309 4,343 4,748 6,201 4,679
     
    Non-Interest Income:
    Fees from trust & brokerage services 4,433 4,241 4,474 4,641 4,593
    Fees from deposit services 10,777 10,072 11,134 10,902 9,559
    Bankcard fees and merchant discounts 1,233 892 1,101 1,127 746
    Other charges, commissions, and fees 508 461 512 602 427
    Income from bank owned life insurance 1,279 1,076 1,325 1,445 1,251
    Mortgage banking income 405 262 774 438 259
    Net gain on the sale of bank premises 0 0 0 0 8,976
    Other non-interest revenue 252 328 251 259 391
    Net other-than-temporary impairment losses (704 ) (6,361 ) (4,714 ) (421 ) (639 )
    Net gains on sales/calls of investment

    securities

    1,232

     

    934

     

    1,309

     

    1

      824  
    Total Non-Interest Income 19,415   11,905   16,166   18,994   26,387  
     
    Non-Interest Expense:
    Employee compensation 22,097 17,244 22,173 21,546 25,007
    Employee benefits 4,890 5,460 4,753 5,190 5,624
    Net occupancy 6,447 4,875 6,400 6,514 6,435
    Data processing 3,844 2,970 3,785 3,589 3,237
    Amortization of intangibles 1,054 450 1,054 1,104 809
    OREO expense 2,772 1,306 1,818 1,037 2,113
    FDIC expense 2,006 1,526 1,981 2,071 1,507
    Prepayment penalty on FHLB advance 1,971 0 0 0 0
    Other expenses 18,943   14,005   15,730   16,052   16,294  
    Total Non-Interest Expense 64,024   47,836   57,694   57,103   61,026  
     
    Income Before Income Taxes (FTE) (non-GAAP) 51,168 30,384 51,214 51,228 47,592
     
    Tax equivalent adjustment 1,530   1,472   1,572   1,606   1,608  
     
    Income Before Income Taxes (GAAP) 49,638 28,912 49,642 49,622 45,984
     
    Taxes 16,381   9,252   16,382   16,375   15,860  
     
    Net Income$ 33,257   $ 19,660   $ 33,260   $ 33,247   $ 30,124  
     
    MEMO: Effective Tax Rate 33.00 % 32.00 % 33.00 % 33.00 % 34.49 %
     

    Note: Non-Interest Income excluding the results of noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of

    investment securities (non-GAAP):

           
    Total Non-Interest Income (GAAP) $ 19,415 $ 11,905 $ 16,166 $ 18,994 $ 26,387
    Less: Net gain on the sale of bank premises (GAAP) 0 0 0 0 8,976
    Less: Net other-than-temporary impairment losses (GAAP) (704 ) (6,361 ) (4,714 ) (421 ) (639 )
    Less: Net gains on sales/calls of investment

    securities (GAAP)

     

    1,232

       

    934

       

    1,309

       

    1

       

    824

     
    Non-Interest Income excluding the results of noncash,

    other-than-temporary impairment charges as well as

    net gains and losses from sales and calls of investment

    securities (non-GAAP)

     

     

    $

     

     

    18,887

     

     

     

    $

     

     

    17,332

     

     

     

    $

     

     

    19,571

     

     

     

    $

     

     

    19,414

     

     

     

    $

     

     

    17,226

     
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

         
    Consolidated Statements of Income
    Year Ended
    DecemberDecemberDecemberDecember
    2014201320122011
    Interest & Loan Fees Income (GAAP)$ 418,542$ 306,154$ 323,897 $ 316,522
    Tax equivalent adjustment 6,316   5,999   6,413     6,587  
    Interest & Fees Income (FTE) (non-GAAP) 424,858 312,153 330,310 323,109
    Interest Expense 42,834   36,313   46,190     55,794  
    Net Interest Income (FTE) (non-GAAP) 382,024 275,840 284,120 267,315
     
    Provision for Loan Losses 21,937 19,267 17,862 17,141
     
    Non-Interest Income:
    Fees from trust & brokerage services 18,141 16,447 15,845 13,343
    Fees from deposit services 42,372 40,245 41,832 42,110
    Bankcard fees and merchant discounts 4,207 3,591 2,996 2,572
    Other charges, commissions, and fees 2,049 2,247 2,229 1,849
    Income from bank owned life insurance 5,300 5,788 5,039 5,286
    Mortgage banking income 1,876 2,571 2,471 952
    Net gain on the sale of bank premises 8,976 0 0 0
    Other non-interest revenue 1,153 1,426 1,360 1,781
    Net other-than-temporary impairment losses (6,478 ) (7,332 ) (7,376 ) (20,414 )
    Net gains on sales/calls of investment

    securities

    3,366

     

    1,523

     

    446

       

    1,576

     
    Total Non-Interest Income 80,962   66,506   64,842     49,055  
     
    Non-Interest Expense:
    Employee compensation 90,823 68,074 71,402 64,611
    Employee benefits 20,457 22,970 21,178 17,358
    Net occupancy 25,796 19,818 20,428 18,596
    Data processing 14,455 11,394 12,532 11,637
    Amortization of intangibles 4,021 1,969 2,852 2,429
    OREO expense 7,740 6,441 8,556 7,008
    FDIC expense 7,565 6,188 6,064 8,468
    Prepayment penalty on FHLB advance 1,971 0 0 0
    Other expenses 67,019   55,182   60,194     52,159  
    Total Non-Interest Expense 239,847   192,036   203,206     182,266  
     
    Income Before Income Taxes (FTE) (non-GAAP) 201,202 131,043 127,894 116,963
     
    Tax equivalent adjustment 6,316   5,999   6,413     6,587  
     
    Income Before Income Taxes (GAAP) 194,886 125,044 121,481 110,376
     
    Taxes 64,998   39,416   38,874     34,766  
     
    Net Income$ 129,888   $ 85,628   $ 82,607   $ 75,610  
     
    MEMO: Effective Tax Rate 33.35 % 31.52 % 32.00 % 31.50 %

    Note: Non-Interest Income excluding the results of noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of

    investment securities (non-GAAP):

    Total Non-Interest Income (GAAP) $ 80,962   $ 66,506   $ 64,842 $ 49,055
    Less: Net gain on the sale of bank premises (GAAP) 8,976 0 0 0
    Less: Net other-than-temporary impairment losses (GAAP) (6,478 ) (7,332 ) (7,376 ) (20,414 )
    Less: Net gains on sales/calls of investment

    securities (GAAP)

     

    3,366

       

    1,523

       

    446

       

    1,576

     
    Non-Interest Income excluding the results of noncash,

    other-than-temporary impairment charges as well as

    net gains and losses from sales and calls of investment

    securities (non-GAAP)

     

     

    $

     

     

    75,098

     

     

     

    $

     

     

    72,315

     

     

     

    $

     

     

    71,772

     

     

     

    $

     

     

    67,893

     
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

             
    Consolidated Balance Sheets
    December 31December 31
    20142013December 31December 31December 31
    Q-T-D AverageQ-T-D Average201420132012
     
    Cash & Cash Equivalents $ 603,289 $ 376,412 $ 753,064 $ 416,617 $ 432,077
     
    Securities Available for Sale 1,170,638 735,626 1,180,386 775,284 625,625
    Securities Held to Maturity 39,464 41,902 39,310 40,965 43,467
    Other Investment Securities   101,392     69,539     96,344     73,093     60,310  
    Total Securities   1,311,494     847,067     1,316,040     889,342     729,402  
    Total Cash and Securities   1,914,783     1,223,479     2,069,104     1,305,959     1,161,479  
     
    Loans Held for Sale 4,912 2,586 8,680 4,236 17,762
     
    Commercial Loans 6,902,466 4,867,199 6,923,745 4,926,537 4,726,292
    Mortgage Loans 1,792,098 1,461,033 1,806,766 1,460,327 1,490,306
    Consumer Loans   385,786     328,015     388,981     326,735     301,182  
     
    Gross Loans 9,080,350 6,656,247 9,119,492 6,713,599 6,517,780
     
    Unearned Income   (15,008 )   (8,643 )   (14,840 )   (9,016 )   (6,364 )
     
    Loans, Net of Unearned Income 9,065,342 6,647,604 9,104,652 6,704,583 6,511,416
     
    Allowance for Loan Losses (76,133 ) (74,689 ) (75,529 ) (74,198 ) (73,901 )
     
    Goodwill 709,812 375,559 709,794 375,547 375,583
    Other Intangibles   21,792     8,379     21,260     8,138     10,107  
    Total Intangibles 731,604 383,938 731,054 383,685 385,690
     
    Real Estate Owned 41,778 39,553 38,778 38,182 49,484
    Other Assets   454,606     351,867     452,072     372,877     368,083  
    Total Assets $ 12,136,892   $ 8,574,338   $ 12,328,811   $ 8,735,324   $ 8,420,013  
     
    MEMO: Earning Assets $ 10,752,045   $ 7,665,396   $ 10,931,194   $ 7,805,772   $ 7,459,217  
     
    Interest-bearing Deposits $ 6,323,295 $ 4,773,397 $ 6,453,866 $ 4,747,051 $ 4,928,575
    Noninterest-bearing Deposits   2,533,963     1,849,404     2,591,619     1,874,520     1,824,411  
    Total Deposits 8,857,258 6,622,801 9,045,485 6,621,571 6,752,986
     
    Short-term Borrowings 425,600 300,688 435,652 430,754 314,962
    Long-term Borrowings   1,131,901     573,849     1,105,314     575,697     284,926  
    Total Borrowings 1,557,501 874,537 1,540,966 1,006,451 599,888
     
    Other Liabilities   48,504     47,252     86,200     65,570     74,888  
    Total Liabilities   10,463,263     7,544,590     10,672,651     7,693,592     7,427,762  
     
    Preferred Equity --- --- --- --- ---
    Common Equity   1,673,629     1,029,748     1,656,160     1,041,732     992,251  
    Total Shareholders' Equity   1,673,629     1,029,748     1,656,160     1,041,732     992,251  
     
    Total Liabilities & Equity $ 12,136,892   $ 8,574,338   $ 12,328,811   $ 8,735,324   $ 8,420,013  
     
    MEMO: Interest-bearing Liabilities $ 7,880,796   $ 5,647,934   $ 7,994,832   $ 5,753,502   $ 5,528,463  
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

             
    Three Months Ended
    DecemberDecemberSeptemberJuneMarch
    Quarterly Share Data:20142013201420142014
     
    Earnings Per Share:
    Basic $ 0.48 $ 0.39 $ 0.48 $ 0.48 $ 0.48
    Diluted $ 0.48 $ 0.39 $ 0.48 $ 0.48 $ 0.48
     
    Common Dividend Declared Per Share $ 0.32 $ 0.32 $ 0.32 $ 0.32 $ 0.32
     
    High Common Stock Price $ 38.00 $ 32.71 $ 33.60 $ 32.50 $ 32.08
    Low Common Stock Price $ 30.39 $ 28.06 $ 30.89 $ 28.19 $ 28.23
     
    Average Shares Outstanding (Net of Treasury Stock):
    Basic 69,088,844 50,417,452 69,044,876 68,956,123 62,434,749
    Diluted 69,355,086 50,564,497 69,269,309 69,154,032 62,707,328
     
    Tax Applicable to Security Sales/Calls $ 431 $ 327 $ 458 $ 1 $ 288
     
    Common Dividends $ 22,165 $ 16,140 $ 22,142 $ 22,130 $ 22,085
     
    Dividend Payout Ratio 66.65 % 82.10 % 66.57 % 66.56 % 73.31 %
     
    Year Ended
    DecemberDecemberDecemberDecember
    YTD Share Data:2014201320122011
     
    Earnings Per Share:
    Basic $ 1.93 $ 1.70 $ 1.64 $ 1.62
    Diluted $ 1.92 $ 1.70 $ 1.64 $ 1.61
     
    Common Dividend Declared Per Share $ 1.28 $ 1.25 $ 1.24 $ 1.21
     
    Average Shares Outstanding (Net of Treasury Stock):
    Basic 67,404,254 50,353,452 50,265,620 46,803,432
    Diluted 67,648,673 50,426,078 50,298,019 46,837,363
     
    Tax Applicable to Security Sales/Calls $ 1,178 $ 533 $ 156 $ 552
     
    Common Dividends $ 88,522 $ 62,982 $ 62,351 $ 56,827
     
    Dividend Payout Ratio 68.15 % 73.55 % 75.48 % 75.16 %
     
    EOP Employees (full-time equivalent) 1,703 1,528 1,529 1,619
     
    Three Months Ended
    DecemberDecemberSeptemberJuneMarch
    EOP Share Data:20142013201420142014
    Book Value Per Share $ 23.90 $ 20.66 $ 23.90 $ 23.70 $ 23.40
    Tangible Book Value Per Share (1) $ 13.35 $ 13.05 $ 13.29 $ 13.10 $ 12.78
     
    52-week High Common Stock Price $ 38.00 $ 32.71 $ 33.60 $ 32.71 $ 32.71
    Date 12/30/1411/29/1309/19/1411/29/1311/29/13
    52-week Low Common Stock Price $ 28.23 $ 24.46 $ 28.06 $ 26.04 $ 24.46
    Date 02/03/1405/01/1310/08/1307/01/1305/01/13
     
    EOP Shares Outstanding (Net of Treasury Stock): 69,295,859 50,430,267 69,196,992 69,163,254 69,055,157
     

    Note:

    (1) Tangible Book Value Per Share:
    Total Shareholders' Equity (GAAP) $ 1,656,160 $ 1,041,732 $ 1,653,673 $ 1,639,283 $ 1,616,123
    Less: Total Intangibles   (731,054 )   (383,685 )   (734,379 )   (733,533 )   (733,762 )
    Tangible Equity (non-GAAP) $ 925,106 $ 658,047 $ 919,294 $ 905,750 $ 882,361
    ÷ EOP Shares Outstanding (Net of Treasury Stock) 69,295,859 50,430,267 69,196,992 69,163,254 69,055,157
    Tangible Book Value Per Share (non-GAAP) $ 13.35 $ 13.05 $ 13.29 $ 13.10 $ 12.78
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

               
    Three Months Ended
    DecemberDecemberSeptemberJuneMarch
    20142013201420142014
    Selected Yields and Net Interest Margin:
    Net Loans 4.55 % 4.42 % 4.43 % 4.48 % 4.50 %
    Investment Securities 3.02 % 2.70 % 2.86 % 2.74 % 2.59 %
    Money Market Investments/FFS 0.27 % 0.27 % 0.24 % 0.26 % 0.23 %
    Average Earning Assets Yield 4.19 % 4.10 % 4.07 % 4.11 % 4.13 %
    Interest-bearing Deposits 0.44 % 0.51 % 0.45 % 0.45 % 0.46 %
    Short-term Borrowings 0.21 % 0.27 % 0.21 % 0.23 % 0.24 %
    Long-term Borrowings 1.39 % 1.47 % 1.31 % 1.45 % 1.56 %
    Average Liability Costs 0.56 % 0.59 % 0.55 % 0.56 % 0.56 %
    Net Interest Spread 3.63 % 3.51 % 3.52 % 3.55 % 3.57 %
    Net Interest Margin 3.77 % 3.66 % 3.66 % 3.69 % 3.70 %
     
    Selected Financial Ratios:
    Return on Average Common Equity 7.88 % 7.57 % 7.96 % 8.16 % 8.57 %
    Return on Average Assets 1.09 % 0.91 % 1.10 % 1.13 % 1.14 %
    Efficiency Ratio (non-GAAP) (1) 48.13 % 51.85 % 46.89 % 47.63 % 50.85 %
     

    Note:

    (1) The efficiency ratio used by United reflects certain adjustments from the GAAP based calculation as reconciled below:
     
    Total Non-Interest Expense (GAAP) $ 64,024 $ 47,836 $ 57,694$ 57,103 $ 61,026
    Net Interest Income plus Total Non-Interest Income (GAAP) 119,971 81,091 112,084 112,926 111,689
    Efficiency Ratio (GAAP) 53.37 % 58.99 % 51.47 % 50.57 % 54.64 %
     
    Total Non-Interest Expense (GAAP) 64,024 47,836 57,694 57,103 61,026
    Less: Amortization of intangibles (GAAP) 1,054 450 1,054 1,104 809
    Less: OREO expense (GAAP) 2,772 1,306 1,818 1,037 2,113
    Less: Prepayment penalty on FHLB advance (GAAP) 1,971 0 0 0 0
    Less: Merger related expenses and charges (GAAP)   0     455   (72 ) 211     5,148  
    Total Non-Interest Expense (non-GAAP) $ 58,227 $ 45,625 $ 54,894$ 54,751 $ 52,956
     
    Net Interest Income plus Total Non-Interest Income (GAAP) $ 119,971 $ 81,091 $ 112,084$ 112,926 $ 111,689
    Plus: Tax equivalent adjustment (non-GAAP) 1,530 1,472 1,572 1,606 1,608
    Less: Net gain on the sale of bank premises (GAAP) 0 0 0 0 8,976
    Less: Net other-than-temporary impairment losses (GAAP) (704 ) (6,361 ) (4,714 ) (421 ) (639 )
    Less: Net gains on sales/calls of investment

    securities (GAAP)

     

    1,232

       

    934

     

    1,309

     

    1

       

    824

     
    Net Interest Income plus Total Non-Interest

    Income (non-GAAP)

    $

    120,973

    $

    87,990

    $ 117,061

    $ 114,952

    $

    104,136

    Efficiency Ratio (non-GAAP) 48.13 % 51.85 % 46.89 % 47.63 % 50.85 %
     
    Year Ended
    DecemberDecemberDecemberDecember
    2014201320122011
    Selected Yields and Net Interest Margin:
    Net Loans 4.49 % 4.49 % 4.90 % 5.18 %
    Investment Securities 2.81 % 2.65 % 2.98 % 3.61 %
    Money Market Investments/FFS 0.25 % 0.26 % 0.27 % 0.28 %
    Average Earning Assets Yield 4.12 % 4.16 % 4.43 % 4.68 %
    Interest-bearing Deposits 0.45 % 0.55 % 0.64 % 0.82 %
    Short-term Borrowings 0.22 % 0.25 % 0.11 % 0.06 %
    Long-term Borrowings 1.42 % 2.32 % 4.45 % 4.79 %
    Average Liability Costs 0.56 % 0.65 % 0.82 % 1.04 %
    Net Interest Spread 3.56 % 3.51 % 3.61 % 3.64 %
    Net Interest Margin 3.71 % 3.68 % 3.81 % 3.87 %
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

     
    Year Ended
    DecemberDecemberDecemberDecember
    2014201320122011
    Selected Financial Ratios:
    Return on Average Common Equity 8.13% 8.43% 8.35% 8.50%
    Return on Average Assets 1.11% 1.02% 0.98% 0.97%
    Loan / Deposit Ratio 100.65% 101.25% 96.42% 91.37%
    Allowance for Loan Losses/ Loans, Net of Unearned Income 0.83% 1.11% 1.13% 1.19%
    Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 0.85% 1.14% 1.16% 1.22%
    Nonaccrual Loans / Loans, Net of Unearned Income 0.82% 0.92% 1.10% 0.96%
    90-Day Past Due Loans/ Loans, Net of Unearned Income 0.13% 0.16% 0.28% 0.26%
    Non-performing Loans/ Loans, Net of Unearned Income 1.20% 1.21% 1.43% 1.28%
    Non-performing Assets/ Total Assets 1.20% 1.37% 1.69% 1.56%
    Primary Capital Ratio 13.97% 12.69% 12.57% 12.25%
    Shareholders' Equity Ratio 13.43% 11.93% 11.78% 11.46%
    Price / Book Ratio 1.57 x 1.52 x 1.23 x 1.47 x
    Price / Earnings Ratio 19.50 x 18.52 x 14.82 x 17.51 x
    Efficiency Ratio (non-GAAP) (2) 48.31% 52.16% 53.68% 51.14%
     

    Notes:

    (1) Includes allowance for loan losses and reserve for lending-related commitments.
    (2) The efficiency ratio used by United reflects certain adjustments from the GAAP based calculation as reconciled below:
    Total Non-Interest Expense (GAAP) $ 239,847$ 192,036$ 203,206   $ 182,266
    Net Interest Income plus Total Non-Interest Income (GAAP) 456,670 336,347 342,549 309,783
    Efficiency Ratio (GAAP) 52.52% 57.09% 59.32% 58.84%
     
    Total Non-Interest Expense (GAAP) 239,847 192,036 203,206 182,266
    Less: Amortization of intangibles (GAAP) 4,021 1,969 2,852 2,429
    Less: OREO expense (GAAP) 7,740 6,441 8,556 7,008
    Less: Prepayment penalty on FHLB advance (GAAP) 1,971 0 0 0
    Less: Merger related expenses and charges (GAAP) 5,287 2,014 760 1,411
    Total Non-Interest Expense (non-GAAP) $ 220,828$ 181,612$ 191,038$ 171,418
     
    Net Interest Income plus Total Non-Interest Income (GAAP) $ 456,670$ 336,347$ 342,549$ 309,783
    Plus: Tax equivalent adjustment (non-GAAP) 6,316 5,999 6,413 6,587
    Less: Net gain on the sale of bank premises (GAAP) 8,976 0 0 0
    Less: Net other-than-temporary impairment losses (GAAP) (6,478) (7,332) (7,376) (20,414)
    Less: Net gains on sales/calls of investment securities (GAAP) 3,366 1,523 446 1,576
    Net Interest Income plus Total Non-Interest Income (non-GAAP) $ 457,122$ 348,155$ 355,892$ 335,208
    Efficiency Ratio (non-GAAP) 48.31% 52.16% 53.68% 51.14%
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

           
    DecemberDecemberSeptemberJuneMarch
    Asset Quality Data:

    2014

    2013201420142014
     
    EOP Non-Accrual Loans $ 75,051 $ 61,928 $ 67,715 $ 55,150 $ 60,207
    EOP 90-Day Past Due Loans 11,675 11,044 16,692 18,417 27,812
    EOP Restructured Loans (2)   22,234     8,157     13,502     13,648     8,106  
    Total EOP Non-performing Loans $ 108,960 $ 81,129 $ 97,909 $ 87,215 $ 96,125
     
    EOP Other Real Estate & Assets Owned   38,778     38,182     42,432     43,232     43,792  
    Total EOP Non-performing Assets $ 147,738   $ 119,311   $ 140,341   $ 130,447   $ 139,917  
     
    Three Months EndedYear Ended
    DecemberDecemberDecemberDecemberDecember
    Allowance for Credit Losses:(1)

    2014

    2013201420132012
    Beginning Balance $ 77,198 $ 76,767 $ 76,341 $ 75,557 $ 75,727
    Provision for Credit Losses (3)   6,350     4,290     21,312     19,754     17,665  
    83,548 81,057 97,653 95,311 93,392
    Gross Charge-offs (8,246 ) (5,362 ) (25,241 ) (21,006 ) (20,555 )
    Recoveries   1,745     646     4,635     2,036     2,720  
    Net Charge-offs   (6,501 )   (4,716 )   (20,606 )   (18,970 )   (17,835 )
    Ending Balance $ 77,047   $ 76,341   $ 77,047   $ 76,341   $ 75,557  
     

    Notes:

    (1) Includes allowance for loan losses and reserve for lending-related commitments.
    (2) Restructured loans with an aggregate balance of $4,194, $820, $827, $844 and $861 at December 31, 2014, September 30, 2014, June 30, 2014, March 31, 2014 and December 31, 2013, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
    (3) Includes the Provision for Loan Losses and a provision for lending-related commitments included in Other Expenses.

    United Bankshares, Inc.
    W. Mark Tatterson
    Chief Financial Officer
    800-445-1347 ext. 8716

    Source: United Bankshares, Inc.