• United Bankshares, Inc.
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  • United Bankshares, Inc. Announces Record Earnings for the Second Quarter and First Half of 2018
    Company Release - 07/26/2018 07:50

    WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI), today reported record earnings for the second quarter and the first half of 2018. Earnings for the second quarter of 2018 were a record $66.3 million as compared to earnings of $37.1 million for the second quarter of 2017. Diluted earnings per share were $0.63 for the second quarter of 2018 as compared to diluted earnings per share of $0.37 for the second quarter of 2017. Earnings for the first half of 2018 were a record $128.0 million as compared to earnings of $75.9 million for the first half of 2017. Diluted earnings per share were $1.22 for the first half of 2018 as compared to diluted earnings per share of $0.84 for the first half of 2017.

    Second quarter of 2018 results produced an annualized return on average assets of 1.42% and an annualized return on average equity of 8.11%, respectively. For the first half of 2018, United’s return on average assets was 1.39% while the return on average equity was 7.88%. United’s annualized returns on average assets and average equity were 0.82% and 4.93%, respectively, for the second quarter of 2017 while the returns on average assets and average equity were 0.94% and 5.80%, respectively, for the first half of 2017.

    “Following record net income in the first quarter of 2018, United’s earnings momentum continued as we achieved record net income of $66.3 million and $128.0 million for the second quarter and first half of 2018,” stated Richard M. Adams, United’s Chairman and Chief Executive Officer.

    On April 21, 2017, United completed its acquisition of Cardinal Financial Corporation (“Cardinal”) of Tysons, Virginia. The results of operations of Cardinal are included in the consolidated results of operations from the date of acquisition. As a result of the Cardinal acquisition, the second quarter and first half of 2018 were impacted by increased levels of average balances, income, and expense as compared to the second quarter and first half of 2017. In addition, the second quarter and first half of 2017 included merger-related expenses of $23.2 million and $24.5 million, respectively, due to the Cardinal acquisition.

    Net interest income for the second quarter of 2018 was $149.1 million, which was an increase of $12.9 million or 9% from the second quarter of 2017. The $12.9 million increase in net interest income occurred because total interest income increased $23.1 million while total interest expense only increased $10.2 million from the second quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the second quarter of 2018 was $150.2 million, an increase of $11.5 million or 8% from the second quarter of 2017 due mainly to an additional month of higher average earning assets in 2018 as a result of the Cardinal acquisition. Average earning assets for the second quarter of 2018 increased $264.4 million or 2% from the second quarter of 2017 due mainly to increases of $540.3 million or 31% in average investment securities and $428.3 million or 3% in average net loans. Partially offsetting these increases was a decrease in average short-term investments of $704.2 million or 52%. The second quarter of 2018 average yield on earning assets increased 46 basis points from the second quarter of 2017 due to higher market interest rates and additional loan accretion of $4.7 million on acquired loans. Partially offsetting the increases to tax-equivalent net interest income for the second quarter of 2018 was an increase of 39 basis points in the average cost of funds as compared to the second quarter of 2017 due to higher market interest rates. The net interest margin of 3.67% for the second quarter of 2018 was an increase of 23 basis points from the net interest margin of 3.44% for the second quarter of 2017.

    Net interest income for the first six months of 2018 was $293.2 million, which was an increase of $49.3 million or 20% from the first six months of 2017. The $49.3 million increase in net interest income occurred because total interest income increased $69.5 million while total interest expense only increased $20.2 million from the first six months of 2017. Tax-equivalent net interest income for the first six months of 2018 was $295.4 million, an increase of $47.4 million or 19% from the first six months of 2017. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Average earning assets increased $1.8 billion or 13% from the first six months of 2017 as average net loans increased $1.6 billion or 14% for the first six months of 2018. Average investment securities increased $674.7 million or 43%. The first half of 2018 average yield on earning assets increased 40 basis points from the first half of 2017 due to higher market interest rates and additional loan accretion of $11.2 million on acquired loans. Partially offsetting the increases to tax-equivalent net interest income for the first half of 2018 was an increase of 32 basis points in the average cost of funds as compared to the first half of 2017 due to higher market interest rates. The net interest margin of 3.64% for the first half of 2018 was an increase of 20 basis points from the net interest margin of 3.44% for the first half of 2017.

    On a linked-quarter basis, net interest income for the second quarter of 2018 increased $5.1 million or 4% from the first quarter of 2018. The $5.1 million increase in net interest income occurred because total interest income increased $10.8 million while total interest expense only increased $5.7 million from the first quarter of 2018. United’s tax-equivalent net interest income for the second quarter of 2018 increased $5.1 million or 4% from the first quarter of 2018 due to a combination of a slight increase in the average earning assets and an increase in the yield on average earning assets. Average earning assets for the second quarter of 2018 were relatively flat, increasing $156.1 million or less than 1% as compared to the first quarter of 2018 as average investment securities increased $113.0 million or 5% and average net loans increased $373.5 million or 3% for the linked-quarter. Average short-term investments decreased $330.4 million or 34%. The yield on average earning assets for the second quarter of 2018 increased 18 basis points from the first quarter of 2018 due mainly to a higher yield on loans as a result of higher market interest rates and an increase of $1.3 million in loan accretion on acquired loans. Partially offsetting the increases to tax-equivalent net interest income for the second quarter of 2018 was an increase of 20 basis points in the average cost of funds as compared to the first quarter of 2018 due to higher market interest rates. The net interest margin of 3.67% for the second quarter of 2018 increased 6 basis points from the net interest margin of 3.61% for the first quarter of 2018.

    For the quarters ended June 30, 2018 and 2017, the provision for loan losses was $6.2 million and $8.3 million, respectively, while the provision for the first six months of 2018 was $11.4 million as compared to $14.2 million for the first six months of 2017. Net charge-offs were $5.7 million and $8.1 million for the second quarter of 2018 and 2017, respectively. Net charge-offs were $10.9 million and $13.9 million for the first half of 2018 and 2017, respectively. Annualized net charge-offs as a percentage of average loans was 0.17% for the both the second quarter and first half of 2018. On a linked-quarter basis, the provision for loan losses increased $1.03 million while net charge-offs increased $571 thousand from the first quarter of 2018.

    Noninterest income for the second quarter of 2018 was $36.0 million, which was a decrease of $4.5 million or 11% from the second quarter of 2017. The decrease was due mainly to a decrease of $3.8 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason. However, George Mason did originate approximately $305 million of portfolio mortgage loan products for United Bank during the second quarter of 2018. In addition, net gains and losses on investment securities’ activity declined $802 thousand.

    Noninterest income for the first half of 2018 was $67.2 million, which was an increase of $6.5 million or 11% from the first half of 2017 as income from mortgage banking activities for the first half of 2018 increased $10.1 million from the first half of 2017. This increase was mainly due to including the production and sales of mortgage loans in the secondary market by George Mason for a full first six months in 2018 as compared to slightly over two months in 2017. In addition, bankcard fees and fees from brokerage services increased $735 thousand and $439 thousand, respectively, due to increased volume. Fees from deposit services increased $416 thousand mainly due to higher income from debit card and automated teller machine (ATM) fees. Partially offsetting these increases was a decline in net gains and losses on investment securities’ activity of $5.2 million for the first half of 2018 from the first half of 2017 due mainly to a net gain of $3.8 million on the redemption of an investment security during the first quarter of 2017.

    On a linked-quarter basis, noninterest income for the second quarter of 2018 increased $4.8 million or 15% from the first quarter of 2018 due mainly to an increase of $4.1 million in income from mortgage banking activities. The increase was due mainly to a change in fair value of $4.2 million on George Mason’s interest rate lock commitments. In addition, net gains and losses on investment securities’ activity increased $430 thousand.

    Noninterest expense for the second quarter of 2018 was $93.4 million, a decrease of $18.7 million or 17% from the second quarter of 2017 due mainly to merger-related expenses in the second quarter of 2017 from the Cardinal acquisition. In particular, employee compensation decreased $12.9 million due mainly to a decrease of $12.8 million in merger severance charges, net occupancy expenses decreased $4.8 million due to a decline of $5.8 million for the termination of leases and the reduction in value of leasehold improvements for closed offices, and, within other expense, additional merger-related expenses decreased $4.2 million. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $1.1 million as United Bank is now considered a large institution and subject to increased assessment rates. In addition, equipment expense increased $808 thousand due to increased maintenance expense and data processing expense increased $486 thousand due to additional processing despite a contract termination penalty of $525 thousand from the Cardinal acquisition in the second quarter of 2017.

    Noninterest expense for the first half of 2018 was $183.9 million, an increase of $8.9 million or 5% from the first half of 2017 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases partially offset by a decline in the associated merger-related expenses of the acquisition. In particular, employee compensation increased $3.9 million, employee benefits increased $2.2 million, equipment expense increased $2.0 million, and data processing expense increased $2.3 million. Within other expense, amortization of core deposit intangibles increased $878 thousand and business franchise taxes increased $488 thousand while merger-related expenses decreased $5.4 million. In addition, FDIC insurance expense increased $1.2 million due to United Bank now being considered a large institution as previously mentioned. Partially offsetting these increases was a decrease in net occupancy expense of $2.2 million due to the expense for the termination of leases and the reduction in value of leasehold improvements for closed offices in the Cardinal acquisition being included in the first half of 2017.

    On a linked-quarter basis, noninterest expense for the second quarter of 2018 increased $3.0 million or 3% from the first quarter of 2018 due mainly to an increase of $2.3 million in employee compensation as a result of higher commissions expense related to an increase in production and sales of mortgage loans at George Mason. In addition, FDIC insurance expense increased $994 thousand due to United Bank now being considered a large institution as previously mentioned.

    For the second quarter and first half of 2018, income tax expense was $19.2 million and $37.1 million, respectively, as compared to $19.3 million and $39.5 million, respectively, in the second quarter and first half of 2017. The decreases in 2018 were mainly due to a decline in the effective tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act). On a linked-quarter basis, income tax expense for the second quarter of 2018 increased $1.3 million from the first quarter of 2018 mainly due to higher earnings. United’s effective tax rate was 22.5% for the second quarter and first quarter of 2018 and 34.25% for the second quarter of 2017. For the first half of 2018 and 2017, United's effective tax rate was 22.5% and 34.25%, respectively. The lower effective tax rate for the time periods in 2018 was due to the impact of the Tax Act.

    United’s asset quality continues to be sound. At June 30, 2018, nonperforming loans were $150.9 million, or 1.12% of loans, net of unearned income, down from nonperforming loans of $168.7 million, or 1.30% of loans, net of unearned income, at December 31, 2017. As of June 30, 2018, the allowance for loan losses was $77.1 million or 0.57% of loans, net of unearned income, as compared to $76.6 million or 0.59% of loans, net of unearned income, at December 31, 2017. Total nonperforming assets of $172.8 million, including OREO of $21.9 million at June 30, 2018, represented 0.90% of total assets as compared to nonperforming assets of $193.1 million or 1.01% at December 31, 2017.

    United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.2% at June 30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.0%, 12.0% and 10.4%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

    As of June 30, 2018, United had consolidated assets of approximately $19.2 billion with 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 June 30, 2018 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2018 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, 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%.

    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 EndedSix Months Ended
    June 30

    2018

        June 30

    2017

    June 30

    2018

        June 30

    2017

    EARNINGS SUMMARY:        
    Interest income $ 178,000 $ 154,947 $ 345,185 $ 275,705
    Interest expense   28,878         18,702     52,020         31,840  
    Net interest income 149,122 136,245 293,165 243,865
    Provision for loan losses 6,204 8,251 11,382 14,150
    Noninterest income 36,007 40,506 67,199 60,652
    Noninterest expenses   93,410         112,137     183,862         174,979  
    Income before income taxes 85,515 56,363 165,120 115,388
    Income taxes   19,241         19,304     37,140         39,520  
    Net income $ 66,274       $ 37,059   $ 127,980       $ 75,868  
     
    PER COMMON SHARE:
    Net income:
    Basic $ 0.63 $ 0.37 $ 1.22 $ 0.84
    Diluted 0.63 0.37 1.22 0.84
    Cash dividends $ 0.34 $ 0.33 0.68 0.66
    Book value 31.12 30.85
    Closing market price $ 36.40 $ 39.20
    Common shares outstanding:
    Actual at period end, net of treasury shares 104,203,542 104,946,351
    Weighted average- basic 104,682,910 99,197,807 104,770,681 90,100,627
    Weighted average- diluted 104,952,788 99,620,045 105,058,014 90,570,289
     
    FINANCIAL RATIOS:
    Return on average assets 1.42 % 0.82 % 1.39 % 0.94 %
    Return on average shareholders’ equity 8.11 % 4.93 % 7.88 % 5.80 %
    Average equity to average assets 17.51 % 16.59 % 17.58 % 16.18 %
    Net interest margin 3.67 % 3.44 % 3.64 % 3.44 %
     
     
    June 30

    2018

        June 30

    2017

    December 31

    2017

        March 31

    2018

    PERIOD END BALANCES:
    Assets $ 19,207,603 $ 19,035,600 $ 19,058,959 $ 18,619,702
    Earning assets 16,852,952 16,657,280 16,741,819 16,331,741
    Loans, net of unearned income 13,516,629 13,392,478 13,011,421 12,984,417
    Loans held for sale 285,194 339,403 265,955 193,915
    Investment securities 2,266,303 1,790,487 2,071,645 2,268,963
    Total deposits 13,830,766 13,971,221 13,830,591 13,646,168
    Shareholders’ equity 3,242,565 3,237,421 3,240,530 3,251,313
     
     
     
     
     
     
    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 EndedSix Months Ended
    JuneJuneMarchJuneJune
    20182017201820182017
    Interest & Loan Fees Income (GAAP) $ 178,000 $ 154,947 $ 167,185 $ 345,185 $ 275,705
    Tax equivalent adjustment   1,115     2,512     1,104     2,219     4,076  
    Interest & Fees Income (FTE) (non-GAAP) 179,115 157,459 168,289 347,404 279,781
    Interest Expense   28,878     18,702     23,142     52,020     31,840  
    Net Interest Income (FTE) (non-GAAP) 150,237 138,757 145,147 295,384 247,941
     
    Provision for Loan Losses 6,204 8,251 5,178 11,382 14,150
     
    Non-Interest Income:
    Fees from trust services 3,104 2,863 3,091 6,195 5,893
    Fees from brokerage services 1,953 1,882 2,224 4,177 3,738
    Fees from deposit services 8,420 8,528 8,230 16,650 16,234
    Bankcard fees and merchant discounts 1,479 1,216 1,356 2,835 2,100
    Other charges, commissions, and fees 599 521 509 1,108 998
    Income from bank-owned life insurance 1,271 1,258 1,254 2,525 2,475
    Income from mortgage banking activities 18,692 22,537 14,570 33,262 23,212
    Net (losses) gains on investment securities (55 ) 747 (485 ) (540 ) 4,687
    Other non-interest revenue   544     954     443     987     1,315  
    Total Non-Interest Income   36,007     40,506     31,192     67,199     60,652  
     
    Non-Interest Expense:
    Employee compensation 43,120 56,030 40,836 83,956 80,063
    Employee benefits 9,298 9,760 9,571 18,869 16,663
    Net occupancy 9,076 13,913 9,427 18,503 20,697
    Data processing 5,817 5,331 5,850 11,667 9,374
    Amortization of intangibles 2,010 2,093 2,010 4,020 3,141
    OREO expense 556 524 946 1,502 1,938
    FDIC insurance expense 2,842 1,771 1,848 4,690 3,522
    Other expenses   20,691     22,715     19,964     40,655     39,581  
    Total Non-Interest Expense   93,410     112,137     90,452     183,862     174,979  
     
    Income Before Income Taxes (FTE) (non-GAAP) 86,630 58,875 80,709 167,339 119,464
     
    Tax equivalent adjustment   1,115     2,512     1,104     2,219     4,076  
     
    Income Before Income Taxes (GAAP) 85,515 56,363 79,605 165,120 115,388
     
    Taxes   19,241     19,304     17,899     37,140     39,520  
     
    Net Income $ 66,274   $ 37,059   $ 61,706   $ 127,980   $ 75,868  
     
    MEMO: Effective Tax Rate 22.50 % 34.25 % 22.48 % 22.49 % 34.25 %
     
     
     
     
     
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

                           

    Consolidated Balance Sheets

    June 30June 30
    20182017June 30December 31June 30
    Q-T-D AverageQ-T-D Average201820172017
     
    Cash & Cash Equivalents $ 837,329 $ 1,530,812 $ 1,092,926 $ 1,666,167 $ 1,411,004
     
    Securities Available for Sale 2,092,862 1,575,120 2,060,927 1,888,756 1,606,813
    Held to Maturity Securities 20,395 27,090 20,378 20,428 20,401
    Equity Securities 10,314 0 9,664 0 0
    Other Investment Securities   168,778     149,819     175,334     162,461     163,273  
    Total Securities   2,292,349     1,752,029     2,266,303     2,071,645     1,790,487  
    Total Cash and Securities   3,129,678     3,282,841     3,359,229     3,737,812     3,201,491  
     
    Loans held for sale 209,836 226,834 285,194 265,955 339,403
     
    Commercial Loans 9,847,720 9,804,391 9,875,623 9,822,027 10,199,455
    Mortgage Loans 2,655,389 2,395,699 2,782,735 2,443,780 2,514,896
    Consumer Loans   847,949     705,914     870,650     761,530     696,126  
     
    Gross Loans 13,351,058 12,906,004 13,529,008 13,027,337 13,410,477
     
    Unearned income   (13,523 )   (17,741 )   (12,379 )   (15,916 )   (17,999 )
     
    Loans, net of unearned income 13,337,535 12,888,263 13,516,629 13,011,421 13,392,478
     
    Allowance for Loan Losses (76,773 ) (72,837 ) (77,135 ) (76,627 ) (72,983 )
     
    Goodwill 1,478,195 1,288,114 1,478,014 1,478,380 1,485,113
    Other Intangibles   42,058     21,751     40,966     44,986     53,527  
    Total Intangibles 1,520,253 1,309,865 1,518,980 1,523,366 1,538,640
     
    Other Real Estate Owned 22,263 29,089 21,926 24,348 28,157
    Other Assets   569,592     518,960     582,780     572,684     608,414  
    Total Assets $ 18,712,384   $ 18,183,015   $ 19,207,603   $ 19,058,959   $ 19,035,600  
     
    MEMO: Interest-earning Assets $ 16,412,229   $ 16,147,805   $ 16,852,952   $ 16,741,819   $ 16,657,280  
     
    Interest-bearing Deposits $ 9,210,282 $ 9,613,565 $ 9,498,926 $ 9,535,904 $ 9,957,776
    Noninterest-bearing Deposits   4,255,840     3,784,465     4,331,840     4,294,687     4,013,445  
    Total Deposits 13,466,122 13,398,030 13,830,766 13,830,591 13,971,221
     
    Short-term Borrowings 208,058 341,201 199,507 477,587 321,322
    Long-term Borrowings   1,659,613     1,329,013     1,794,641     1,363,977     1,364,531  
    Total Borrowings 1,867,671 1,670,214 1,994,148 1,841,564 1,685,853
     
    Other Liabilities   102,492     97,982     140,124     146,274     141,105  
    Total Liabilities   15,436,285     15,166,226     15,965,038     15,818,429     15,798,179  
     
    Preferred Equity --- --- --- --- ---
    Common Equity   3,276,099     3,016,789     3,242,565     3,240,530     3,237,421  
    Total Shareholders' Equity   3,276,099     3,016,789     3,242,565     3,240,530     3,237,421  
     
    Total Liabilities & Equity $ 18,712,384   $ 18,183,015   $ 19,207,603   $ 19,058,959   $ 19,035,600  
     
    MEMO: Interest-bearing Liabilities $ 11,077,953   $ 11,283,779   $ 11,493,074   $ 11,377,468   $ 11,643,629  
     
     
     
     
     
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

                   
    Three Months EndedSix Months Ended
    JuneJuneMarchJuneJune

    Quarterly/Year-to-Date Share Data:

    20182017201820182017
     

    Earnings Per Share:

    Basic $ 0.63 $ 0.37 $ 0.59 $ 1.22 $ 0.84
    Diluted $ 0.63 $ 0.37 $ 0.59 $ 1.22 $ 0.84
     

    Common Dividend Declared Per Share:

    $ 0.34 $ 0.33 $ 0.34 $ 0.68 $ 0.66
     
    High Common Stock Price $ 38.80 $ 42.60 $ 38.55 $ 38.80 $ 47.30
    Low Common Stock Price $ 33.40 $ 37.45 $ 33.60 $ 33.40 $ 37.45
     

    Average Shares Outstanding (Net of Treasury Stock):

    Basic 104,682,910 99,197,807 104,859,427 104,770,681 90,100,627
    Diluted 104,952,788 99,620,045 105,162,858 105,058,014 90,570,289
     

    Memorandum Items:

     
    Common Dividends $ 35,584 $ 34,621 $ 35,748 $ 71,332 $ 61,398
     
    Dividend Payout Ratio 53.69 % 93.42 % 57.93 % 55.74 % 80.93 %
     
     
    June 30June 30March 31

    EOP Share Data:

    201820172018
     
    Book Value Per Share $ 31.12 $ 30.85 $ 30.92
    Tangible Book Value Per Share (non-GAAP) (1) $ 16.54 $ 16.19 $ 16.45
     
    52-week High Common Stock Price $ 40.45 $ 49.35 $ 42.60
    Date 07/03/1712/12/1604/03/17
    52-week Low Common Stock Price $ 31.70 $ 35.91 $ 31.70
    Date 09/07/1707/06/1609/07/17
     

    EOP Shares Outstanding (Net of Treasury Stock):

    104,203,542 104,946,351 105,141,170
     

    Memorandum Items:

     
    EOP Employees (full-time equivalent) 2,300 2,493 2,341
     

    Note:

    (1) Tangible Book Value Per Share:
    Total Shareholders' Equity (GAAP) $ 3,242,565 $ 3,237,421 $ 3,251,313
    Less: Total Intangibles   (1,518,980 )   (1,538,640 )   (1,521,556 )
    Tangible Equity (non-GAAP) $ 1,723,585 $ 1,698,781 $ 1,729,757
    ÷ EOP Shares Outstanding (Net of Treasury Stock) 104,203,542 104,946,351 105,141,170
    Tangible Book Value Per Share (non-GAAP) $ 16.54 $ 16.19 $ 16.45
     
     
     
     
     
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

                       
    Three Months EndedSix Months Ended
    JuneJuneMarchJuneJune

    Selected Yields and Net Interest Margin:

    20182017201820182017
     
    Net Loans 4.76 % 4.38 % 4.63 % 4.70 % 4.37 %
    Investment Securities 2.73 % 2.52 % 2.52 % 2.63 % 2.66 %
    Money Market Investments/FFS 2.14 % 1.12 % 2.04 % 2.08 % 1.00 %
    Average Earning Assets Yield 4.37 % 3.91 % 4.19 % 4.28 % 3.88 %
    Interest-bearing Deposits 0.83 % 0.53 % 0.68 % 0.75 % 0.49 %
    Short-term Borrowings 0.89 % 0.49 % 0.60 % 0.72 % 0.51 %
    Long-term Borrowings 2.26 % 1.72 % 2.12 % 2.20 % 1.63 %
    Average Liability Costs 1.05 % 0.66 % 0.85 % 0.95 % 0.63 %
    Net Interest Spread 3.32 % 3.25 % 3.34 % 3.33 % 3.25 %
    Net Interest Margin 3.67 % 3.44 % 3.61 % 3.64 % 3.44 %
     

    Selected Financial Ratios:

     
    Return on Average Common Equity 8.11 % 4.93 % 7.65 % 7.88 % 5.80 %
    Return on Average Assets 1.42 % 0.82 % 1.35 % 1.39 % 0.94 %
    Efficiency Ratio 50.46 % 63.44 % 51.62 % 51.02 % 57.46 %
     
     
    June 30June 30March 31December 31
    2018201720182017
    Loan / Deposit Ratio 97.73 % 95.86 % 95.15 % 94.08 %
    Allowance for Loan Losses/ Loans, net of unearned income 0.57 % 0.54 % 0.59 % 0.59 %
    Allowance for Credit Losses (1)/ Loans, net of unearned income 0.58 % 0.55 % 0.60 % 0.59 %
    Nonaccrual Loans / Loans, net of unearned income 0.55 % 0.72 % 0.77 % 0.84 %
    90-Day Past Due Loans/ Loans, net of unearned income 0.12 % 0.06 % 0.07 % 0.08 %
    Non-performing Loans/ Loans, net of unearned income 1.12 % 1.15 % 1.21 % 1.30 %
    Non-performing Assets/ Total Assets 0.90 % 0.96 % 0.97 % 1.01 %
    Primary Capital Ratio 17.21 % 17.32 % 17.80 % 17.34 %
    Shareholders' Equity Ratio 16.88 % 17.01 % 17.46 % 17.00 %
    Price / Book Ratio 1.17x

    1.27x

    1.14x

    1.13x

    Price / Earnings Ratio 14.41x

    26.34x

    15.02x

    22.59x

     

    Note:

             
    (1) Includes allowances for loan losses and lending-related commitments.
     
     
     
     
     
     

    UNITED BANKSHARES, INC. AND SUBSIDIARIES
    Washington, D.C. and Charleston, WV
    Stock Symbol:  UBSI
    (In Thousands Except for Per Share Data)

     
            Three Months Ended   Six Months Ended
    June   June   MarchJuneJune

    Mortgage Banking Data – George Mason:

    20182017201820182017
    Applications $ 1,195,000 $ 1,367,000 $ 1,149,000 $ 2,344,000 $ 1,367,000
    Loans originated 874,493 786,318 573,732 1,448,225 786,318
    Loans sold $ 784,727 $ 722,098 $ 616,951 $ 1,401,678 $ 722,098
    Purchase money % of loans closed 83 % 87 % 75 % 80 % 87 %
    Realized gain on sales and fees as a % of loans sold 2.62 % 2.96 % 2.62 % 2.62 % 2.96 %
    Net interest income $ 264 $ 90 $ 376 $ 640 $ 90
    Other income 23,468 22,393 14,883 38,351 22,393
    Other expense 21,225 18,708 18,384 39,609 18,708
    Income taxes 564 1,293 (703 ) (139 ) 1,293
    Net income $ 1,943 $ 2,482 $ (2,422 ) $ (479 ) $ 2,482
     
     

    June

    June

    December

    March

    Period End Mortgage Banking Data – George Mason:

    2018

    2017

    2017

    2018

    Locked pipeline

    $  221,317

    $  387,710

    $  157,130

    $  206,883

     
     
     
                    June     June     December     March

    Asset Quality Data:

    2018201720172018
     
    EOP Non-Accrual Loans $ 74,114 $ 96,679 $ 108,803 $ 100,172
    EOP 90-Day Past Due Loans 16,422 8,489 9,803 9,165
    EOP Restructured Loans (1)   60,384   49,037   50,129   48,271
    Total EOP Non-performing Loans $ 150,920 $ 154,205 $ 168,735 $ 157,608
     
    EOP Other Real Estate Owned   21,926   28,157   24,348   22,778
    Total EOP Non-performing Assets $ 172,846 $ 182,362 $ 193,083 $ 180,386
         
    Three Months EndedSix Months Ended
    June   June   MarchJune   June

    Allowance for Loan Losses:

    20182017201820182017
    Beginning Balance $ 76,653 $ 72,875 $ 76,627 $ 76,627 $ 72,771
    Provision for Loan Losses   6,204     8,251     5,178     11,382     14,150  
    82,857 81,126 81,805 88,009 86,921
    Gross Charge-offs (7,712 ) (9,922 ) (5,858 ) (13,570 ) (17,207 )
    Recoveries   1,990     1,779     706     2,696     3,269  
    Net Charge-offs   (5,722 )   (8,143 )   (5,152 )   (10,874 )   (13,938 )
    Ending Balance $ 77,135 $ 72,983 $ 76,653 $ 77,135 $ 72,983
    Reserve for lending-related commitments   927     738    

    755

        927     738  
    Allowance for Credit Losses (2) $ 78,062   $ 73,721   $ 77,408   $ 78,062   $ 73,721  
     
     

    Notes:

    (1) Restructured loans with an aggregate balance of $46,652, $31,606, $33,592 and $30,868 at June 30, 2018, June 30, 2017, March 31, 2018 and December 31, 2017, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
    (2) Includes allowances for loan losses and lending-related commitments.
     
     
     
     

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

    Source: United Bankshares, Inc.