• United Bankshares, Inc.
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  • United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2018
    Company Release - 10/25/2018 07:50

    WASHINGTON & CHARLESTON, W.V.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2018. Earnings for the third quarter of 2018 were $64.4 million as compared to earnings of $56.7 million for the third quarter of 2017. Diluted earnings per share were $0.62 for the third quarter of 2018 as compared to diluted earnings per share of $0.54 for the third quarter of 2017. Earnings for the first nine months of 2018 were a record $192.4 million as compared to earnings of $132.6 million for the first nine months of 2017. Diluted earnings per share were $1.83 for the first nine months of 2018 as compared to diluted earnings per share of $1.39 per diluted share for the first nine months of 2017.

    Third quarter of 2018 results produced an annualized return on average assets of 1.34% and an annualized return on average equity of 7.83%, respectively. For the first nine months of 2018, United’s return on average assets was 1.37% while the return on average equity was 7.86%. United’s annualized returns on average assets and average equity were 1.19% and 6.89%, respectively, for the third quarter of 2017 while the returns on average assets and average equity were 1.03% and 6.22%, respectively, for the first nine months of 2017.

    “Our earnings continue to be strong, achieving record earnings and outperforming peer profitability,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer.

    On April 21, 2017, United completed its acquisition of Cardinal Financial Corporation (Cardinal) of Tysons Corner, 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 first nine months of 2018 were impacted by increased levels of average balances, income, and expense as compared to the first nine months of 2017. In addition, the third quarter and first nine months of 2017 included $532 thousand and $25.0 million, respectively, of merger-related expenses from the Cardinal acquisition.

    Net interest income for the third quarter of 2018 was $148.8 million, which was a decrease of $1.5 million or 1% from the third quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2018 was $149.8 million, a decrease of $2.5 million or 2% from the third quarter of 2017 due mainly to an increase of 54 basis points in the average cost of funds as compared to the third quarter of 2017 due to higher market interest rates.

    In addition, loan accretion on acquired loans was $11.6 million and $12.8 million for the third quarter of 2018 and 2017, respectively, decreasing $1.2 million or 10%. Partially offsetting these decreases to tax-equivalent net interest income for the third quarter of 2018 was an increase of 26 basis points in the average yield on earning assets as compared to the third quarter of 2017 due to higher market interest rates. In addition, average earning assets for the third quarter of 2018 increased $172.5 million or 1% from the third quarter of 2017 due mainly to an increase of $491.9 million or 27% in average investment securities. Partially offsetting this increase was a decrease in average short-term investments of $335.3 million or 27%. Average net loans remained flat for the third quarter, increasing $15.9 million or less than 1% from the third quarter of 2017. The net interest margin of 3.56% for the third quarter of 2018 was a decrease of 9 basis points from the net interest margin of 3.65% for the third quarter of 2017.

    Net interest income for the first nine months of 2018 was $441.9 million, which was an increase of $47.8 million or 12% from the first nine months of 2017. Tax-equivalent net interest income for the first nine months of 2018 was $445.2 million, an increase of $44.9 million or 11% from the first nine 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 $1.3 billion or 8% from the first nine months of 2017 as average net loans increased $1.1 billion or 9% for the first nine months of 2018. Average investment securities increased $613.1 million or 37% while short-term investments decreased $436.1 million or 34%. The first nine months of 2018 average yield on earning assets increased 34 basis points from the first nine months of 2017 due to higher market interest rates and additional loan accretion of $10.0 million on acquired loans. Loan accretion was $34.4 million and $24.4 million for the first nine months of 2018 and 2017, respectively. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2018 was an increase of 39 basis points in the average cost of funds as compared to the first nine months of 2017 due to higher market interest rates. The net interest margin of 3.61% for the first nine months of 2018 was an increase of 9 basis points from the net interest margin of 3.52% for the first nine months of 2017.

    On a linked-quarter basis, net interest income for the third quarter of 2018 was relatively flat from the second quarter of 2018, decreasing $347 thousand or less than 1%. United’s tax-equivalent net interest income for the third quarter of 2018 was also relatively flat, decreasing $413 thousand or less than 1% due to a combination of a $265.9 million or 2% increase in interest bearing funds and an increase of 22 basis points in the average cost of funds as a result of higher market interest rates. In addition, loan accretion on acquired loans decreased $497 thousand. Partially offsetting these increases to tax-equivalent net interest income for the third quarter of 2018 was a $334.5 million or 2% increase in the average earning assets and a 5 basis points increase in the yield on average earning assets. Specifically, average short-term investments increased $262.1 million or 40%. Average net loans and average investment securities were relatively flat for the third quarter of 2018, increasing $80.2 million and decreasing $7.8 million, respectively from the second quarter of 2018. The net interest margin of 3.56% for the third quarter of 2018 decreased 11 basis points from the net interest margin of 3.67% for the second quarter of 2018.

    For the quarters ended September 30, 2018 and 2017, the provision for loan losses was $4.8 million and $7.3 million, respectively, while the provision for the first nine months of 2018 was $16.2 million as compared to $21.4 million for the first nine months of 2017. Net charge-offs were $5.0 million and $15.9 million for the third quarter and first nine months of 2018, respectively, as compared to $5.3 million and $19.3 million for the third quarter and first nine months of 2017, respectively. Annualized net charge-offs as a percentage of average loans were 0.15% and 0.16% for the third quarter and first nine months of 2018, respectively. On a linked-quarter basis, the provision for loan losses decreased $1.4 million while net charge-offs decreased $720 thousand from the second quarter of 2018.

    Noninterest income for the third quarter of 2018 was $31.7 million, which was a decrease of $6.5 million or 17% from the third quarter of 2017. The decrease was due mainly to a decrease of $7.1 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 $178.3 million of portfolio mortgage loan products for United Bank during the third quarter of 2018. In addition, net gains and losses on investment securities’ activity declined $619 thousand.

    Noninterest income for the first nine months of 2018 was $98.9 million, which was flat from the first nine months of 2017, increasing $4 thousand or less than 1%. Income from mortgage banking activities for the first nine months of 2018 increased $2.9 million from the first nine months of 2017. This increase was mainly due to including the production and sales of mortgage loans in the secondary market by George Mason for nine months in 2018 as compared to slightly over five months in 2017. In addition, fees from brokerage services and bankcard fees increased $1.1 million and $952 thousand, respectively, due to increased volume. Fees from trust services increased $680 thousand due to an increase in the value of managed assets while fees from deposit services increased $345 thousand mainly due to higher income from debit card and automated teller machine (ATM) fees. Mostly offsetting these increases was a decline in net gains and losses on investment securities’ activity of $5.8 million for the first nine months of 2018 from the first nine months 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 third quarter of 2018 decreased $4.3 million or 12% from the second quarter of 2018. The decrease was due mainly to a decrease of $5.4 million in income from mortgage banking activities due mainly to a change in fair value of $6.2 million on George Mason’s interest rate lock commitments. In addition, net gains and losses on investment securities’ activity decreased $97 thousand. Partially offsetting these decreases in noninterest income was a $834 thousand increase in fees from brokerage services as well as a $253 thousand increase in fees from deposit services and a $246 thousand increase in fees from trust services mainly due to increased volume.

    Noninterest expense for the third quarter of 2018 was $93.3 million, a decrease of $3.3 million or 3% from the third quarter of 2017. In particular, employee compensation decreased $3.6 million due mainly to a decrease of $3.2 million in commissions expense, other real estate owned (OREO) expense decreased $1.8 million and merger expenses decreased $434 thousand. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $2.0 million as United Bank is now considered a large institution and subject to increased assessment rates. In addition, equipment expense increased $835 thousand due to increased maintenance expense and data processing expense increased $471 thousand due to additional processing.

    Noninterest expense for the first nine months of 2018 was $277.2 million, an increase of $5.5 million or 2% from the first nine months 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 benefits increased $1.8 million, employee compensation increased $323 thousand, equipment expense increased $2.8 million, and data processing expense increased $2.8 million. In addition, FDIC insurance expense increased $3.2 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 $2.3 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 nine months of 2017. In addition, OREO expense decreased $2.2 million and other expense decreased $943 thousand due to a decrease in merger-related expenses.

    On a linked-quarter basis, noninterest expense for the third quarter of 2018 was flat from the second quarter of 2018, decreasing $95 thousand or less than 1%. In particular, employee compensation and employee benefits decreased $1.8 million and $653 thousand, respectively, as a result of lower commissions expense and fewer employees related to a decrease in production and sales of mortgage loans at George Mason. Mostly offsetting these decreases in noninterest expense was an increase in FDIC insurance expense of $688 thousand due to United Bank now being considered a large institution as previously mentioned. In addition, equipment expense increased $613 thousand, data processing expense increased $251 thousand, OREO expense increased $365 thousand, and net occupancy expense increased $197 thousand.

    For the third quarter and first nine months of 2018, income tax expense was $17.9 million and $55.1 million, respectively, as compared to $27.8 million and $67.4 million, respectively, in the third quarter and first nine months 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 third quarter of 2018 decreased $1.3 million from the second quarter of 2018 due to a combination of lower earnings and a lower effective tax rate. United’s effective tax rate was 21.77% for the third quarter of 2018, 22.50% for the second quarter of 2018 and 32.91% for the third quarter of 2017. For the first nine months of 2018 and 2017, United's effective tax rate was 22.25% and 33.68%, 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 September 30, 2018, nonperforming loans were $146.1 million, or 1.10% 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 September 30, 2018, the allowance for loan losses was $76.9 million or 0.58% 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 $164.9 million, including OREO of $18.8 million at September 30, 2018, represented 0.86% of total assets as compared to nonperforming assets of $193.1 million or 1.01%, including OREO of $24.3 million at December 31, 2017.

    United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.6% at September 30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.3%, 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 September 30, 2018, United had consolidated assets of approximately $19.2 billion with 140 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 September 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 September 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 21% for 2018 and 35% for 2017.

    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 EndedNine Months Ended

    September 30
    2018

     

    September 30
    2017

    September 30
    2018

     

    September 30
    2017

    EARNINGS SUMMARY:
    Interest income $ 185,030 $ 171,583 $ 530,215 $ 447,288
    Interest expense   36,255     21,307     88,275     53,147  
    Net interest income 148,775 150,276 441,940 394,141
    Provision for loan losses 4,808 7,279 16,190 21,429
    Noninterest income 31,686 38,229 98,885 98,881
    Noninterest expenses   93,315     96,652     277,177     271,631  
    Income before income taxes 82,338 84,574 247,458 199,962
    Income taxes   17,926     27,836     55,066     67,356  
    Net income $ 64,412   $ 56,738   $ 192,392   $ 132,606  
     
    PER COMMON SHARE:
    Net income:
    Basic $ 0.62 $ 0.54 $ 1.84 $ 1.39
    Diluted 0.62 0.54 1.83 1.39
    Cash dividends $ 0.34 $ 0.33 1.02 0.99
    Book value 31.32 31.09
    Closing market price $ 36.35 $ 37.15
    Common shares outstanding:
    Actual at period end, net of treasury shares 103,805,836 104,983,126
    Weighted average - basic 103,617,590 104,760,153 104,382,094 95,040,664
    Weighted average - diluted 103,933,959 105,068,122 104,679,876 95,450,626
     
    FINANCIAL RATIOS:
    Return on average assets 1.34 % 1.19 % 1.37 % 1.03 %
    Return on average shareholders’ equity 7.83 % 6.89 % 7.86 % 6.22 %
    Average equity to average assets 17.13 % 17.25 % 17.43 % 16.58 %
    Net interest margin 3.56 % 3.65 % 3.61 % 3.52 %
     

    September 30
    2018

    September 30
    2017

     

    December 31
    2017

    June 30
    2018

    PERIOD END BALANCES:
    Assets $ 19,187,643 $ 19,129,978 $ 19,058,959 $ 19,207,603
    Earning assets 16,872,384 16,751,643 16,741,819 16,852,952
    Loans, net of unearned income 13,276,740 13,140,468 13,011,421 13,516,629
    Loans held for sale 234,196 315,031 265,955 285,194
    Investment securities 2,375,512 1,836,725 2,071,645 2,266,303
    Total deposits 14,091,172 13,875,297 13,830,591 13,830,766
    Shareholders’ equity 3,251,128 3,263,843 3,240,530 3,242,565
     
    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 EndedYear to Date
    SeptemberSeptemberJuneMarchSeptemberSeptember
      2018   2017   2018     2018     2018     2017  
    Interest & Loan Fees Income (GAAP) $ 185,030 $ 171,583$ 178,000 $ 167,185 $ 530,215 $ 447,288
    Tax equivalent adjustment   1,049   2,092   1,115     1,104     3,268     6,168  
    Interest & Fees Income (FTE) (non-GAAP) 186,079 173,675 179,115 168,289 533,483 453,456
    Interest Expense   36,255   21,307   28,878     23,142     88,275     53,147  
    Net Interest Income (FTE) (non-GAAP) 149,824 152,368 150,237 145,147 445,208 400,309
     
    Provision for Loan Losses 4,808 7,279 6,204 5,178 16,190 21,429
     
    Non-Interest Income:
    Fees from trust services 3,350 2,972 3,104 3,091 9,545 8,865
    Fees from brokerage services 2,787 2,080 1,953 2,224 6,964 5,818
    Fees from deposit services 8,673 8,744 8,420 8,230 25,323 24,978
    Bankcard fees and merchant discounts 1,549 1,332 1,479 1,356 4,384 3,432
    Other charges, commissions, and fees 532 535 599 509 1,640 1,533
    Income from bank-owned life insurance 1,251 1,403 1,271 1,254 3,776 3,878
    Income from mortgage banking activities 13,277 20,385 18,692 14,570 46,539 43,597
    Net (losses) gains on investment securities (152 ) 467 (55 ) (485 ) (692 ) 5,154
    Other non-interest revenue   419   311   544     443     1,406     1,626  
    Total Non-Interest Income   31,686   38,229   36,007     31,192     98,885     98,881  
     
    Non-Interest Expense:
    Employee compensation 41,312 44,882 43,120 40,836 125,268 124,945
    Employee benefits 8,645 9,004 9,298 9,571 27,514 25,667
    Net occupancy 9,273 9,364 9,076 9,427 27,776 30,061
    Data processing 6,068 5,597 5,817 5,850 17,735 14,971
    Amortization of intangibles 2,009 2,240 2,010 2,010 6,029 5,381
    OREO expense 921 2,713 556 946 2,423 4,651
    FDIC expense 3,530 1,540 2,842 1,848 8,220 5,062
    Other expenses   21,557   21,312   20,691     19,964     62,212     60,893  
    Total Non-Interest Expense   93,315   96,652   93,410     90,452     277,177     271,631  
     
    Income Before Income Taxes (FTE) (non-GAAP) 83,387 86,666 86,630 80,709 250,726 206,130
     
    Tax equivalent adjustment   1,049   2,092   1,115     1,104     3,268     6,168  
     
    Income Before Income Taxes (GAAP) 82,338 84,574 85,515 79,605 247,458 199,962
     
    Taxes   17,926   27,836   19,241     17,899     55,066     67,356  
     
    Net Income $ 64,412   $ 56,738   $ 66,274   $ 61,706   $ 192,392   $ 132,606  
     
    MEMO: Effective Tax Rate 21.77 % 32.91 % 22.50 % 22.48 % 22.25 % 33.68 %
     
    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

             

    Consolidated Balance Sheets

    September 30September 30
    20182017September 30December 31September 30
    Q-T-D AverageQ-T-D Average   2018     2017     2017  
     
    Cash & Cash Equivalents $ 1,105,876 $ 1,443,491 $ 1,254,686 $ 1,666,167 $ 1,747,037
     
    Securities Available for Sale 2,087,133 1,612,335 2,178,567 1,888,756 1,649,634
    Held to Maturity Securities 20,368 20,353 20,351 20,428 20,335
    Equity Securities 9,734 0 9,845 0 0
    Other Investment Securities   167,294     159,945     166,749     162,461     166,756  
    Total Securities   2,284,529     1,792,633     2,375,512     2,071,645     1,836,725  
    Total Cash and Securities   3,390,405     3,236,124     3,630,198     3,737,812     3,583,762  
     
    Loans held for sale 257,008 294,971 234,196 265,955 315,031
     
    Commercial Loans 9,628,904 10,111,213 9,451,496 9,822,027 9,943,254
    Mortgage Loans 2,821,722 2,488,671 2,870,840 2,443,780 2,475,092
    Consumer Loans   931,226     730,798     964,375     761,530     738,508  
     
    Gross Loans 13,381,852 13,330,682 13,286,711 13,027,337 13,156,854
     
    Unearned income   (10,928 )   (17,720 )   (9,971 )   (15,916 )   (16,386 )
     
    Loans, net of unearned income 13,370,924 13,312,962 13,276,740 13,011,421 13,140,468
     
    Allowance for Loan Losses (77,103 ) (73,031 ) (76,941 ) (76,627 ) (74,926 )
     
    Goodwill 1,478,014 1,484,488 1,478,014 1,478,380 1,487,607
    Other Intangibles   40,105     52,649     38,957     44,986     47,526  
    Total Intangibles 1,518,119 1,537,137 1,516,971 1,523,366 1,535,133
     
    Other Real Estate Owned 19,694 27,889 18,786 24,348 26,826
    Other Assets   568,642     591,733     587,693     572,684     603,684  
    Total Assets $ 19,047,689   $ 18,927,785   $ 19,187,643   $ 19,058,959   $ 19,129,978  
     

    MEMO: Interest-earning Assets

    $ 16,746,772   $ 16,574,277   $ 16,872,384   $ 16,741,819   $ 16,751,643  
     
    Interest-bearing Deposits $ 9,588,327 $ 9,837,967 $ 9,620,357 $ 9,535,904 $ 9,741,278
    Noninterest-bearing Deposits   4,338,309     4,036,653     4,470,815     4,294,687     4,134,019  
    Total Deposits 13,926,636 13,874,620 14,091,172 13,830,591 13,875,297
     
    Short-term Borrowings 212,566 325,631 379,508 477,587 492,036
    Long-term Borrowings   1,543,004     1,364,417     1,319,371     1,363,977     1,364,246  
    Total Borrowings 1,755,570 1,690,048 1,698,879 1,841,564 1,856,282
     
    Other Liabilities   102,534     97,575     146,464     146,274     134,556  
    Total Liabilities   15,784,740     15,662,243     15,936,515     15,818,429     15,866,135  
     
    Preferred Equity --- --- --- --- ---
    Common Equity   3,262,949     3,265,542     3,251,128     3,240,530     3,263,843  
    Total Shareholders' Equity   3,262,949     3,265,542     3,251,128     3,240,530     3,263,843  
     
    Total Liabilities & Equity $ 19,047,689   $ 18,927,785   $ 19,187,643   $ 19,058,959   $ 19,129,978  
     

    MEMO: Interest-bearing Liabilities

    $ 11,343,897   $ 11,528,015   $ 11,319,236   $ 11,377,468   $ 11,597,560  
     

    UNITED BANKSHARES, INC. AND SUBSIDIARIES

    Washington, D.C. and Charleston, WV

    Stock Symbol: UBSI

    (In Thousands Except for Per Share Data)

                 
    Three Months EndedYear to Date
    SeptemberSeptemberJuneMarchSeptemberSeptember
      2018   2017     2018     2018     2018     2017  

    Quarterly/Year-to-Date Share Data:

    Earnings Per Share:

    Basic $ 0.62 $ 0.54 $ 0.63 $ 0.59 $ 1.84 $ 1.39
    Diluted $ 0.62 $ 0.54 $ 0.63 $ 0.59 $ 1.83 $ 1.39
     

    Common Dividend Declared Per Share:

    $ 0.34 $ 0.33 $ 0.34 $ 0.34 $ 1.02 $ 0.99
     
    High Common Stock Price $ 39.95 $ 40.45 $ 38.80 $ 38.55 $ 39.95 $ 47.30
    Low Common Stock Price $ 34.75 $ 31.70 $ 33.40 $ 33.60 $ 33.40 $ 31.70
     

    Average Shares Outstanding (Net of Treasury Stock):

    Basic 103,617,590 104,760,153 104,682,910 104,859,427 104,382,094 95,040,664
    Diluted 103,933,959 105,068,122 104,952,788 105,162,858 104,679,876 95,450,626
     

    Memorandum Items:

     
    Common Dividends $ 35,303 $ 34,642 $ 35,584 $ 35,748 $ 106,635 $ 96,040
     
    Dividend Payout Ratio 54.81 % 61.06 % 53.69 % 57.93 % 55.43 % 72.43 %
     
    SeptemberSeptemberJune 30March 31
      2018     2017     2018     2018  

    EOP Share Data:

    Book Value Per Share $ 31.32 $ 31.09 $ 31.12 $ 30.92
    Tangible Book Value Per Share (non-GAAP) (1) $ 16.71 $ 16.47 $ 16.54 $ 16.45
     
    52-week High Common Stock Price $ 39.95 $ 49.35 $ 40.45 $ 42.60
    Date 08/21/1812/12/1607/03/1704/03/17
    52-week Low Common Stock Price $ 33.40 $ 31.70 $ 31.70 $ 31.70
    Date 05/01/1809/07/1709/07/1709/07/17
     

    EOP Shares Outstanding (Net of Treasury Stock):

    103,805,836 104,983,126 104,203,542 105,141,170
     

    Memorandum Items:

     
    EOP Employees (full-time equivalent) 2,290 2,451 2,300 2,341
     

    Note:

    (1) Tangible Book Value Per Share:
    Total Shareholders' Equity (GAAP) $ 3,251,128 $ 3,263,843 $ 3,242,565 $ 3,251,313
    Less: Total Intangibles   (1,516,971 )   (1,535,133 )   (1,518,980 )   (1,521,556 )
    Tangible Equity (non-GAAP) $ 1,734,157 $ 1,728,710 $ 1,723,585 $ 1,729,757
    ÷ EOP Shares Outstanding (Net of Treasury Stock) 103,805,836 104,983,126 104,203,542 105,141,170
    Tangible Book Value Per Share (non-GAAP) $ 16.71 $ 16.47 $ 16.54 $ 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 EndedYear to Date
    SeptemberSeptemberJuneMarchSeptemberSeptember
    2018   2017   2018   2018   2018   2017  

    Selected Yields and Net Interest Margin:

    Loans 4.83 % 4.61 % 4.76 % 4.63 % 4.74 % 4.46 %
    Investment Securities 2.74 % 2.61 % 2.73 % 2.52 % 2.66 % 2.64 %
    Money Market Investments/FFS 2.39 % 1.55 % 2.14 % 2.04 % 2.19 % 1.18 %
    Average Earning Assets Yield 4.42 % 4.16 % 4.37 % 4.19 % 4.33 % 3.99 %
    Interest-bearing Deposits 1.09 % 0.57 % 0.83 % 0.68 % 0.87 % 0.52 %
    Short-term Borrowings 1.15 % 0.52 % 0.89 % 0.60 % 0.85 % 0.52 %
    Long-term Borrowings 2.38 % 1.93 % 2.26 % 2.12 % 2.26 % 1.74 %
    Average Liability Costs 1.27 % 0.73 % 1.05 % 0.85 % 1.06 % 0.67 %
    Net Interest Spread 3.15 % 3.43 % 3.32 % 3.34 % 3.27 % 3.32 %
    Net Interest Margin 3.56 % 3.65 % 3.67 % 3.61 % 3.61 % 3.52 %
     

    Selected Performance Ratios:

     
    Return on Average Common Equity 7.83 % 6.89 % 8.11 % 7.65 % 7.86 % 6.22 %
    Return on Average Assets 1.34 % 1.19 % 1.42 % 1.35 % 1.37 % 1.03 %
    Efficiency Ratio 51.71 % 51.27 % 50.46 % 51.62 % 51.25 % 55.10 %
     
    SeptemberSeptemberJuneMarchDecember
    2018   2017   2018   2018   2017  

    Selected Financial Ratios:

    Loan / Deposit Ratio 94.22 % 94.70 % 97.73 % 95.15 % 94.08 %
    Allowance for Loan Losses/ Loans, Net of Unearned Income 0.58 % 0.57 % 0.57 % 0.59 % 0.59 %
    Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 0.59 % 0.58 % 0.58 % 0.60 % 0.59 %
    Nonaccrual Loans / Loans, Net of Unearned Income 0.50 % 0.76 % 0.55 % 0.77 % 0.84 %
    90-Day Past Due Loans/ Loans, Net of Unearned Income 0.12 % 0.17 % 0.12 % 0.07 % 0.08 %
    Non-performing Loans/ Loans, Net of Unearned Income 1.10 % 1.28 % 1.12 % 1.21 % 1.30 %
    Non-performing Assets/ Total Assets 0.86 % 1.02 % 0.90 % 0.97 % 1.01 %
    Primary Capital Ratio 17.28 % 17.39 % 17.21 % 17.80 % 17.34 %
    Shareholders' Equity Ratio 16.94 % 17.06 % 16.88 % 17.46 % 17.00 %
    Price / Book Ratio

    1.16

    x

     

    1.19

    x

     

    1.17

    x

     

    1.14

    x

     

    1.13

    x

     

    Price / Earnings Ratio 14.66

    x

     

    17.20

    x

     

    14.41

    x

     

    15.02

    x

     

    22.59

    x

     

     

    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     Year to Date
    September     September     June     MarchSeptember     September
      2018     2017     2018     2018   2018     2017  

    Mortgage Banking Data – George Mason:

    Applications $ 854,000 $ 1,064,000 $ 1,195,000 $ 1,149,000 $3,198,000 $ 2,431,000
    Loans originated 641,141 858,625 874,493 573,732 2,089,366 1,644,943
    Loans sold $ 692,270 $ 887,711 $ 784,727 $ 616,951 $2,093,948 $ 1,597,808
    Purchase money % of loans closed 88 % 81 % 83 % 75 % 82 % 84 %
    Realized gain on sales and fees as a % of loans sold 2.85 % 2.75 % 2.62 % 2.62 % 2.70 % 2.84 %
    Net interest income $ 388 $ (36 ) $ 264 $ 376 $ 1,028 $ 54
    Other income 16,478 19,936 23,468 14,883 54,829 42,329
    Other expense 17,957 24,036 21,225 18,384 57,566 42,744
    Income taxes (245 ) (1,332 ) 564 (703 ) (384 ) (39 )
    Net income $ (846 ) $ (2,804 ) $ 1,943 $ (2,422 ) $ (1,325 ) $ (322 )
        September   September   December   June   March

    Period End Mortgage Banking Data – George Mason:

      2018   2017   2017   2018   2018
    Locked pipeline $ 170,545 $ 245,986 $ 157,130 $ 221,317 $ 206,883
        September   September   December   June   March

    Asset Quality Data:

      2018   2017   2017   2018   2018
     
    EOP Non-Accrual Loans $ 66,554 $ 100,016 $ 108,803 $ 74,114 $ 100,172
    EOP 90-Day Past Due Loans 15,949 22,249 9,803 16,422 9,165
    EOP Restructured Loans (1)   63,626   46,132   50,129   60,384   48,271
    Total EOP Non-performing Loans $ 146,129 $ 168,397 $ 168,735 $ 150,920 $ 157,608
     
    EOP Other Real Estate Owned   18,786   26,826   24,348   21,926   22,778
    Total EOP Non-performing Assets $ 164,915 $ 195,223 $ 193,083 $ 172,846 $ 180,386
      Three Months Ended   Year to Date
    September   September  

        June    

     

       March   

    September   September
    Allowance for Loan Losses:   2018     2017     2018     2018     2018     2017  
    Beginning Balance $ 77,135 $ 72,983 $ 76,653 $ 76,627 $ 76,627 $ 72,771
    Provision for Loan Losses   4,808     7,279     6,204     5,178     16,190     21,429  
    81,943 80,262 82,857 81,805 92,817 94,200
    Gross Charge-offs (7,044 ) (6,357 ) (7,712 ) (5,858 ) (20,614 ) (23,564 )
    Recoveries   2,042     1,021    

     1,990

       

     706

        4,738     4,290  
    Net Charge-offs   (5,002 )   (5,336 )   (5,722 )   (5,152 )   (15,876 )   (19,274 )
    Ending Balance

    $

    76,941

    $

    74,926

    $ 77,135 $ 76,653

    $

    76,941

    $

    74,926

    Reserve for lending-related commitments   1,144     804     927    

    755

        1,144     804  
    Allowance for Credit Losses (2) $ 78,085   $ 75,730   $ 78,062   $ 77,408   $ 78,085   $ 75,730  

    Notes:

    (1) Restructured loans with an aggregate balance of $50,974, $29,717, $46,652, $33,592 and $30,868 at September 30, 2018, September 30, 2017, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
    (2) Includes allowance for loan losses and reserve for lending-related commitments.

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

    Source: United Bankshares, Inc.