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Press Release

United Bankshares, Inc. Announces Record Earnings for the Year of 2019

Company Release - 1/29/2020 7:50 AM ET

WASHINGTON & CHARLESTON, W. Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and year of 2019. Earnings for the fourth quarter of 2019 were $63.3 million or $0.62 per diluted share as compared to earnings of $64.0 million or $0.62 per diluted share for the fourth quarter of 2018. Earnings for the year of 2019 were a record $260.1 million or $2.55 per diluted share as compared to earnings of $256.3 million or $2.45 per diluted share for the year of 2018.

Fourth quarter of 2019 results produced an annualized return on average assets of 1.29%, an annualized return on average equity of 7.42% and an annualized return on average tangible equity of 13.38%. For the year of 2019, United’s return on average assets was 1.34% while the return on average equity was 7.80% and the return on average tangible equity was 14.26%. United’s annualized returns on average assets, average equity and average tangible equity were 1.33%, 7.77% and 14.52%, respectively, for the fourth quarter of 2018 while the returns on average assets, average equity and average tangible equity were 1.36%, 7.84% and 14.65%, respectively, for the year of 2018.

“2019 was another great year for United Bankshares,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We earned record net income of $260 million and record diluted earnings per share of $2.55, announced the intent to acquire Carolina Financial Corporation, our 32nd acquisition of the current administration, and increased dividends to our shareholders for the 46th consecutive year, a record only one other major banking company in the USA has been able to achieve.”

Net interest income for the fourth quarter of 2019 was $141.3 million, which was a decrease of $5.4 million or 4% from the fourth quarter of 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2019 was $142.1 million, a decrease of $5.6 million or 4% from the fourth quarter of 2018 due mainly to a decrease of 18 basis points in the average yield on earning assets and an increase of 7 basis points in the average cost of funds as compared to the fourth quarter of 2018. Partially offsetting these decreases to tax-equivalent net interest income for the fourth quarter of 2019 was an increase in average earning assets as compared to the fourth quarter of 2018. Average earning assets for the fourth quarter of 2019 increased $373.0 million or 2% from the fourth quarter of 2018 due mainly to an increase of $410.8 million or 3% in average net loans. In addition, average investment securities for the fourth quarter of 2019 increased $199.1 million or 8% from the fourth quarter of 2018. Partially offsetting these increases was a decrease in average short-term investments of $236.9 million or 28%. The net interest margin of 3.29% for the fourth quarter of 2019 was a decrease of 21 basis points from the net interest margin of 3.50% for the fourth quarter of 2018.

Net interest income for the year of 2019 was $577.9 million, which was a decrease of $10.7 million or 2% from the year of 2018. Tax-equivalent net interest income for the year of 2019 was $581.7 million, which was a decrease of $11.3 million or 2% from the year of 2018 due mainly to an increase in the average cost of funds. The average cost of funds for the year of 2019 increased 45 basis points from the year of 2018 due to higher market interest rates and a change in the mix of interest bearing liabilities. Partially offsetting the decreases to tax-equivalent net interest income for the year of 2019 were increases in average earning assets and the average yield on those average earning assets. For the year of 2019, average earning assets increased $608.0 million or 4% from the year of 2018 due mainly to increases of $403.4 million or 3% in average net loans and $313.9 million or 14% in average investment securities. Average short-term investments decreased $109.2 million or 13%. The average yield on earning assets for the year of 2019 increased 11 basis points from the year of 2018 due primarily to higher market rates. Loan accretion on acquired loans was $38.8 million and $43.2 million for the year of 2019 and 2018, respectively, decreasing $4.4 million or 10%. The net interest margin of 3.39% for the year of 2019 was a decrease of 19 basis points from the net interest margin of 3.58% for the year of 2018.

On a linked-quarter basis, net interest income for the fourth quarter of 2019 was relatively flat from the third quarter of 2019, decreasing $635 thousand or less than 1%. United’s tax-equivalent net interest income for the fourth quarter of 2019 was also relatively flat from the third quarter of 2019, decreasing $698 thousand or less than 1% due mainly to a decrease of 10 basis points in the average yield on earning assets. In addition, average earning assets declined $191.1 million or 1%. Specifically, average short-term investments decreased $234.6 million or 28% while average investment securities increased $34.6 million or 1%. Average net loans were relatively flat for the quarter, increasing $8.9 million or less than 1%. Virtually offsetting the decreases was a decline of 14 basis points in the average cost of funds. In addition, loan accretion on acquired loans increased $1.4 million. Loan accretion on acquired loans was $8.6 million and $7.2 million for the fourth quarter and third quarter of 2019, respectively. The net interest margin of 3.29% for the fourth quarter of 2019 increased 2 basis points from the net interest margin of 3.27% for the third quarter of 2019.

For the quarters ended December 31, 2019 and 2018, the provision for loan losses was $5.9 million and $5.8 million, respectively, while the provision for the year of 2019 was $21.3 million as compared to $22.0 million for the year of 2018. Net charge-offs were $5.9 million and $21.0 million for the fourth quarter and year of 2019, respectively, as compared to $6.1 million and $21.9 million for the same time periods in 2018. Annualized net charge-offs as a percentage of average loans were 0.17% and 0.16% for the fourth quarter and year of 2019, respectively. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2019 increased $834 thousand while net charge-offs increased $1.6 million from the third quarter of 2019.

Noninterest income for the fourth quarter of 2019 was $37.2 million, which was an increase of $7.4 million or 25% from the fourth quarter of 2018. The increase was due mainly to an increase of $6.0 million in income from mortgage banking activities due to increased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason Mortgage, LLC (George Mason). In addition, United recognized a net gain of $109 thousand on investment securities’ activity in the fourth quarter of 2019 as compared to a net loss of $1.9 million in the fourth quarter of 2018. Also, income from bank-owned life insurance policies increased $1.6 million from the fourth quarter of 2018 due to the recognition of death benefits of $1.7 million in the fourth quarter of 2019. Partially offsetting these increases was a net gain of $2.8 million on the sale of bank premises United recorded in the fourth quarter of 2018.

Noninterest income for the year of 2019 was $150.5 million, which was an increase of $21.8 million or 17% from the year of 2018. The increase was due mainly to an increase of $18.8 million in income from mortgage banking activities primarily due to increased loan originations and a higher realized gain on sale margin by George Mason. In addition, fees from trust services increased $943 thousand due to an increase in managed assets, fees from brokerage services increased $789 thousand due to increased volume and income from bank-owned life insurance increased $2.3 million due to the recognition of $2.3 million in death benefits for the year of 2019. Also, United recognized a net gain of $175 thousand on investment securities’ activity in the year of 2019 as compared to a net loss of $2.6 million for the year of 2018. Partially offsetting these increases was the previously mentioned net gain of $2.8 million on the sale of bank premises in the year of 2018.

On a linked-quarter basis, noninterest income for the fourth quarter of 2019 decreased $5.0 million or 12% from the third quarter of 2019. This decrease was due mainly to a decrease of $6.5 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market as a result of a typical seasonal slowdown. Partially offsetting this decrease was an increase of $1.6 million in income from bank-owned life insurance policies due to the previously mentioned recognition of death benefits of $1.7 million in the fourth quarter of 2019.

Noninterest expense for the fourth quarter of 2019 was $96.9 million, an increase of $5.9 million or 6% from the fourth quarter of 2018 due mainly to an increase of $5.2 million in employee compensation expense. The increase was due primarily to an increase in employee commissions expense related to the increase in production and sales of mortgage loans at George Mason. In addition, other expense increased $2.6 million due to an increase of $1.2 million in donations and merger expenses of $589 thousand related to the announced acquisition of Carolina Financial Corporation. Partially offsetting these increases was a decline of $2.2 million in Federal Deposit Insurance Corporation (FDIC) assessment fees.

Noninterest expense for the year of 2019 was $382.7 million, an increase of $14.5 million or 4% from the year of 2018. In particular, employee compensation expense increased $9.5 million due mainly to increased salaries and commissions expense primarily related to the increase in production and sales of mortgage loans at George Mason. In addition, United recognized prepayment penalties on FHLB advances of $5.1 million in the second quarter of 2019 and other expense increased $5.6 million due mainly to an increase of $2.8 million on the amortization of income tax credits and an increase of $1.1 million in donations. The amortization of tax credits lowered the effective tax rate. Partially offsetting these increases were decreases of $3.4 million in FDIC insurance expense resulting from a small bank assessment credit and lower assessment fees, $1.6 million in net occupancy expense due mainly to a decline in building rental expense and $1.6 million in data processing fees due to lower fees under a new contract.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2019 was relatively flat from the third quarter of 2019, increasing $766 thousand or less than 1%. An increase of $2.2 million in other expense due to an increase of $1.2 million in donations and the merger expenses of $589 thousand was virtually offset by a decline of $1.9 million in employee compensation due mainly to a decrease in commissions and incentives expense for George Mason.

For the fourth quarter and year of 2019, income tax expense was $12.5 million and $64.3 million, respectively, as compared to $15.8 million and $70.8 million, respectively, in the fourth quarter and year of 2018. The decreases in 2019 were mainly due to a decline in the effective tax rate as a result of the increased benefit from income tax credits. On a linked-quarter basis, income tax expense for the fourth quarter of 2019 decreased $4.5 million from the third quarter of 2019 due to lower earnings and a lower effective tax rate. United’s effective tax rate was 16.5% for the fourth quarter of 2019, 20.5% for the third quarter of 2019 and 19.8% for the fourth quarter of 2018. For the year of 2019 and 2018, United's effective tax rate was 19.8% and 21.7%, respectively.

United’s asset quality continues to be sound. At December 31, 2019, nonperforming loans were $131.1 million, or 0.96% of loans, net of unearned income, a decline from nonperforming loans of $142.8 million, or 1.06% of loans, net of unearned income, at December 31, 2018. As of December 31, 2019, the allowance for loan losses was $77.1 million or 0.56% of loans, net of unearned income, which was comparable to $76.7 million or 0.57% of loans, net of unearned income, at December 31, 2018. Total nonperforming assets of $146.6 million, including OREO of $15.5 million at December 31, 2019, represented 0.75% of total assets as compared to nonperforming assets of $159.7 million or 0.83% at December 31, 2018.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.7% at December 31, 2019 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.5%, 12.5% and 10.5%, 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%.

During the fourth quarter of 2019, United announced that it entered into a definitive merger agreement with Carolina Financial Corporation. Under the merger agreement, United will acquire 100% of the outstanding shares of Carolina Financial Corporation in exchange for common shares of United. The combined organization will be approximately $25 billion in assets with more than 200 locations in some of the most desirable banking markets in the nation. United recently filed a Form S-4 with the Securities and Exchange Commission regarding the proposed merger. United expects the merger to close during the second quarter of 2020.

As of December 31, 2019, United had consolidated assets of approximately $19.7 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank which comprises 138 full-service banking offices and 15 George Mason Mortgage, LLC locations, is located throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. United’s 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, 2019 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, 2019 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%.

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 and considering net income, a return on average tangible equity. 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 measures, along with others, are used by management to analyze capital adequacy and performance.

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 Ended

 

Year Ended

 

December 31
2019

December 31
2018

 

December 31
2019

December 31
2018

EARNINGS SUMMARY:

 

 

 

 

 

Interest income

$

183,869

$

187,500

 

$

762,562

$

717,715

Interest expense

 

42,586

 

40,795

 

 

184,640

 

129,070

Net interest income

 

141,283

 

146,705

 

 

577,922

 

588,645

Provision for loan losses

 

5,867

 

5,823

 

 

21,313

 

22,013

Noninterest income

 

37,242

 

29,827

 

 

150,484

 

128,712

Noninterest expenses

 

96,900

 

91,002

 

 

382,654

 

368,179

Income before income taxes

 

75,758

 

79,707

 

 

324,439

 

327,165

Income taxes

 

12,473

 

15,757

 

 

64,340

 

70,823

Net income

$

63,285

$

63,950

 

$

260,099

$

256,342

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$

0.62

$

0.62

 

$

2.55

$

2.46

Diluted

 

0.62

 

0.62

 

 

2.55

 

2.45

Cash dividends

$

0.35

$

0.34

 

 

1.37

 

1.36

Book value

 

 

 

 

33.12

 

31.78

Closing market price

 

 

 

$

38.66

$

31.11

Common shares outstanding:

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

101,553,671

 

102,323,488

Weighted average- basic

 

101,250,489

 

102,929,563

 

 

101,585,599

 

104,015,976

Weighted average- diluted

 

101,537,640

 

103,164,267

 

 

101,852,577

 

104,298,825

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

Return on average assets

 

1.29%

 

1.33%

 

 

1.34%

 

1.36%

Return on average shareholders’ equity

 

7.42%

 

7.77%

 

 

7.80%

 

7.84%

Return on average tangible equity (non-GAAP) (1)

 

13.38%

 

14.52%

 

 

14.26%

 

14.65%

Average equity to average assets

 

17.39%

 

17.10%

 

 

17.13%

 

17.34%

Net interest margin

 

3.29%

 

3.50%

 

 

3.39%

 

3.58%

 

 

 

 

 

 

 

December 31
2019

December 31
2018

 

December 31
2017

September 30
2019

PERIOD END BALANCES:

 

 

 

 

 

Assets

$

19,662,324

$

19,250,498

 

$

19,058,959

$

19,751,461

Earning assets

 

17,344,638

 

16,971,602

 

 

16,741,819

 

17,389,984

Loans, net of unearned income

 

13,712,129

 

13,422,222

 

 

13,011,421

 

13,633,427

Loans held for sale

 

387,514

 

249,846

 

 

265,955

 

412,194

Investment securities

 

2,669,797

 

2,543,727

 

 

2,071,645

 

2,673,312

Total deposits

 

13,852,421

 

13,994,749

 

 

13,830,591

 

14,095,411

Shareholders’ equity

 

3,363,833

 

3,251,624

 

 

3,240,530

 

3,354,342

 

Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.

 

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

 

December

 

December

 

September

 

June

 

March

 

2019

 

2018

 

2019

 

2019

 

2019

Interest & Loan Fees Income (GAAP)

$

183,869

 

$

187,500

 

$

190,351

 

$

199,245

 

$

189,097

Tax equivalent adjustment

 

851

 

 

1,060

 

 

914

 

 

977

 

 

993

Interest & Fees Income (FTE) (non-GAAP)

 

184,720

 

 

188,560

 

 

191,265

 

 

200,222

 

 

190,090

Interest Expense

 

42,586

 

 

40,795

 

 

48,433

 

 

48,692

 

 

44,929

Net Interest Income (FTE) (non-GAAP)

 

142,134

 

 

147,765

 

 

142,832

 

 

151,530

 

 

145,161

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

5,867

 

 

5,823

 

 

5,033

 

 

5,417

 

 

4,996

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

Fees from trust services

 

3,597

 

 

3,385

 

 

3,574

 

 

3,438

 

 

3,264

Fees from brokerage services

 

2,468

 

 

2,383

 

 

2,378

 

 

2,766

 

 

2,524

Fees from deposit services

 

8,549

 

 

8,650

 

 

8,702

 

 

8,464

 

 

8,053

Bankcard fees and merchant discounts

 

1,154

 

 

784

 

 

1,262

 

 

1,102

 

 

1,156

Other charges, commissions, and fees

 

576

 

 

588

 

 

568

 

 

576

 

 

521

Income from bank owned life insurance

 

2,906

 

 

1,269

 

 

1,280

 

 

1,326

 

 

1,827

Income from mortgage banking activities

 

17,547

 

 

11,570

 

 

24,019

 

 

21,704

 

 

13,681

Net gain on the sale of bank premises

 

0

 

 

2,763

 

 

0

 

 

0

 

 

0

Net gains (losses) on investment securities

 

109

 

 

(1,926)

 

 

116

 

 

109

 

 

(159)

Other income

 

336

 

 

361

 

 

325

 

 

310

 

 

356

Total Non-Interest Income

 

37,242

 

 

29,827

 

 

42,224

 

 

39,795

 

 

31,223

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

Employee compensation

 

44,399

 

 

39,200

 

 

46,313

 

 

44,301

 

 

38,949

Employee benefits

 

9,121

 

 

8,658

 

 

8,615

 

 

8,578

 

 

9,431

Net occupancy

 

8,734

 

 

8,686

 

 

8,698

 

 

8,667

 

 

8,751

Data processing

 

5,727

 

 

6,065

 

 

5,776

 

 

5,567

 

 

5,162

Amortization of intangibles

 

1,754

 

 

2,010

 

 

1,754

 

 

1,754

 

 

1,754

OREO expense

 

1,450

 

 

1,021

 

 

1,837

 

 

633

 

 

1,416

Equipment expense

 

3,522

 

 

3,518

 

 

3,698

 

 

3,675

 

 

3,315

FDIC expense

 

1,005

 

 

3,244

 

 

465

 

 

3,300

 

 

3,300

Prepayment penalties on FHLB borrowings

 

0

 

 

0

 

 

0

 

 

5,105

 

 

0

Other expense

 

21,188

 

 

18,600

 

 

18,978

 

 

18,615

 

 

17,347

Total Non-Interest Expense

 

96,900

 

 

91,002

 

 

96,134

 

 

100,195

 

 

89,425

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (FTE) (non-GAAP)

 

76,609

 

 

80,767

 

 

83,889

 

 

85,713

 

 

81,963

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

851

 

 

1,060

 

 

914

 

 

977

 

 

993

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

75,758

 

 

79,707

 

 

82,975

 

 

84,736

 

 

80,970

 

 

 

 

 

 

 

 

 

 

Taxes

 

12,473

 

 

15,757

 

 

17,010

 

 

17,529

 

 

17,328

 

 

 

 

 

 

 

 

 

 

Net Income

$

63,285

 

$

63,950

 

$

65,965

 

$

67,207

 

$

63,642

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

16.46%

 

 

19.77%

 

 

20.50%

 

 

20.69%

 

 

21.40%

 

 

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

 

December

 

December

 

December

 

December

 

2019

 

2018

 

2017

 

2016

Interest & Loan Fees Income (GAAP)

$

762,562

 

$

717,715

 

$

623,806

 

$

470,341

Tax equivalent adjustment

 

3,735

 

 

4,328

 

 

8,429

 

 

6,121

Interest & Fees Income (FTE) (non-GAAP)

 

766,297

 

 

722,043

 

 

632,235

 

 

476,462

Interest Expense

 

184,640

 

 

129,070

 

 

74,809

 

 

45,010

Net Interest Income (FTE) (non-GAAP)

 

581,657

 

 

592,973

 

 

557,426

 

 

431,452

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

21,313

 

 

22,013

 

 

28,406

 

 

24,509

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

Fees from trust services

 

13,873

 

 

12,930

 

 

11,801

 

 

12,025

Fees from brokerage services

 

10,136

 

 

9,347

 

 

7,730

 

 

7,012

Fees from deposit services

 

33,768

 

 

33,973

 

 

33,622

 

 

32,858

Bankcard fees and merchant discounts

 

4,674

 

 

5,168

 

 

4,795

 

 

5,215

Other charges, commissions, and fees

 

2,241

 

 

2,228

 

 

2,057

 

 

2,059

Income from bank owned life insurance

 

7,339

 

 

5,045

 

 

5,110

 

 

5,794

Income from mortgage banking activities

 

76,951

 

 

58,109

 

 

58,907

 

 

3,450

Net gain on the sale of bank premises

 

0

 

 

2,763

 

 

0

 

 

0

Net gains (losses) on investment securities

 

175

 

 

(2,618)

 

 

5,584

 

 

280

Other income

 

1,327

 

 

1,767

 

 

2,039

 

 

1,339

Total Non-Interest Income

 

150,484

 

 

128,712

 

 

131,645

 

 

70,032

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

Employee compensation

 

173,962

 

 

164,468

 

 

166,393

 

 

95,655

Employee benefits

 

35,745

 

 

36,172

 

 

34,997

 

 

26,591

Net occupancy

 

34,850

 

 

36,462

 

 

39,067

 

 

27,529

Data processing

 

22,232

 

 

23,800

 

 

21,019

 

 

15,280

Amortization of intangibles

 

7,016

 

 

8,039

 

 

7,772

 

 

3,944

OREO expense

 

5,336

 

 

3,444

 

 

6,003

 

 

5,844

Equipment expense

 

14,210

 

 

13,846

 

 

10,528

 

 

8,622

FDIC expense

 

8,070

 

 

11,464

 

 

7,051

 

 

8,548

Prepayment penalties on FHLB borrowings

 

5,105

 

 

0

 

 

0

 

 

0

Other expense

 

76,128

 

 

70,484

 

 

74,579

 

 

56,183

Total Non-Interest Expense

 

382,654

 

 

368,179

 

 

367,409

 

 

248,196

 

 

 

 

 

 

 

 

Income Before Income Taxes (FTE) (non-GAAP)

 

328,174

 

 

331,493

 

 

293,256

 

 

228,779

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

3,735

 

 

4,328

 

 

8,429

 

 

6,121

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

324,439

 

 

327,165

 

 

284,827

 

 

222,658

 

 

 

 

 

 

 

 

Taxes

 

64,340

 

 

70,823

 

 

134,246

 

 

75,575

 

 

 

 

 

 

 

 

Net Income

$

260,099

 

$

256,342

 

$

150,581

 

$

147,083

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

19.83%

 

 

21.65%

 

 

47.13%

 

33.94%

 

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 31

 

December 31

 

 

 

 

 

 

 

2019

 

2018

 

December 31

 

December 31

 

December 31

 

Q-T-D Average

 

Q-T-D Average

 

2019

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

$

777,007

 

$

1,025,695

 

$

837,493

 

$

1,020,396

 

$

1,666,167

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

2,463,101

 

 

2,287,480

 

 

2,437,296

 

 

2,337,039

 

 

1,888,756

Securities Held to Maturity

 

1,463

 

 

20,017

 

 

1,446

 

 

19,999

 

 

20,428

Equity Securities

 

8,984

 

 

9,880

 

 

8,894

 

 

9,734

 

 

0

Other Investment Securities

 

210,855

 

 

167,953

 

 

222,161

 

 

176,955

 

 

162,461

Total Securities

 

2,684,403

 

 

2,485,330

 

 

2,669,797

 

 

2,543,727

 

 

2,071,645

Total Cash and Securities

 

3,461,410

 

 

3,511,025

 

 

3,507,290

 

 

3,564,123

 

 

3,737,812

 

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

368,966

 

 

226,028

 

 

387,514

 

 

249,846

 

 

265,955

 

 

 

 

 

 

 

 

 

 

Commercial Loans

 

9,347,641

 

 

9,433,610

 

 

9,399,170

 

 

9,447,420

 

 

9,822,027

Mortgage Loans

 

3,052,045

 

 

2,906,314

 

 

3,107,721

 

 

2,979,787

 

 

2,443,780

Consumer Loans

 

1,195,999

 

 

994,233

 

 

1,206,657

 

 

1,002,325

 

 

761,530

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

13,595,685

 

 

13,334,157

 

 

13,713,548

 

 

13,429,532

 

 

13,027,337

 

 

 

 

 

 

 

 

 

 

Unearned Income

 

(2,823)

 

 

(9,290)

 

 

(1,419)

 

 

(7,310)

 

 

(15,916)

 

 

 

 

 

 

 

 

 

 

Loans, Net of Unearned Income

 

13,592,862

 

 

13,324,867

 

 

13,712,129

 

 

13,422,222

 

 

13,011,421

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

(77,073)

 

 

(76,933)

 

 

(77,057)

 

 

(76,703)

 

 

(76,627)

 

 

 

 

 

 

 

 

 

 

Goodwill

 

1,478,014

 

 

1,478,014

 

 

1,478,014

 

 

1,478,014

 

 

1,478,380

Other Intangibles

 

30,837

 

 

37,989

 

 

29,931

 

 

36,947

 

 

44,986

Total Intangibles

 

1,508,851

 

 

1,516,003

 

 

1,507,945

 

 

1,514,961

 

 

1,523,366

 

 

 

 

 

 

 

 

 

 

Operating Lease Right-of-Use Asset

 

59,031

 

---

 

 

57,783

 

---

 

---

Other Real Estate Owned

 

18,472

 

 

18,428

 

 

15,515

 

 

16,865

 

 

24,348

Other Assets

 

532,561

 

 

560,230

 

 

551,205

 

 

559,184

 

 

572,684

Total Assets

$

19,465,080

 

$

19,079,648

 

$

19,662,324

 

$

19,250,498

 

$

19,058,959

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

$

17,165,071

 

$

16,792,108

 

$

17,344,638

 

$

16,971,602

 

$

16,741,819

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

$

9,281,403

 

$

9,615,474

 

$

9,231,059

 

$

9,577,934

 

$

9,535,904

Noninterest-bearing Deposits

 

4,647,907

 

 

4,418,443

 

 

4,621,362

 

 

4,416,815

 

 

4,294,687

Total Deposits

 

13,929,310

 

 

14,033,917

 

 

13,852,421

 

 

13,994,749

 

 

13,830,591

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

132,621

 

 

193,971

 

 

374,654

 

 

351,327

 

 

477,587

Long-term Borrowings

 

1,836,423

 

 

1,481,732

 

 

1,838,029

 

 

1,499,103

 

 

1,363,977

Total Borrowings

 

1,969,044

 

 

1,675,703

 

 

2,212,683

 

 

1,850,430

 

 

1,841,564

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

62,662

 

---

 

 

61,342

 

---

 

---

Other Liabilities

 

118,702

 

 

106,671

 

 

172,045

 

 

153,695

 

 

146,274

Total Liabilities

 

16,079,718

 

 

15,816,291

 

 

16,298,491

 

 

15,998,874

 

 

15,818,429

 

 

 

 

 

 

 

 

 

 

Preferred Equity

---

 

---

 

---

 

---

 

---

Common Equity

 

3,385,362

 

 

3,263,357

 

 

3,363,833

 

 

3,251,624

 

 

3,240,530

Total Shareholders' Equity

 

3,385,362

 

 

3,263,357

 

 

3,363,833

 

 

3,251,624

 

 

3,240,530

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

$

19,465,080

 

$

19,079,648

 

$

19,662,324

 

$

19,250,498

 

$

19,058,959

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

$

11,250,447

 

$

11,291,177

 

$

11,443,742

 

$

11,428,364

 

$

11,377,468

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

Quarterly Share Data:

2019

 

2018

 

2019

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

Basic

$

0.62

 

$

0.62

 

$

0.65

 

$

0.66

 

$

0.62

Diluted

$

0.62

 

$

0.62

 

$

0.65

 

$

0.66

 

$

0.62

 

 

 

 

 

 

 

 

 

 

Common Dividend Declared Per Share

$

0.35

 

$

0.34

 

$

0.34

 

$

0.34

 

$

0.34

 

 

 

 

 

 

 

 

 

 

High Common Stock Price

$

40.70

 

$

36.84

 

$

39.98

 

$

39.88

 

$

39.14

Low Common Stock Price

$

36.09

 

$

29.13

 

$

34.77

 

$

35.42

 

$

30.67

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

Basic

 

101,250,489

 

 

102,929,563

 

 

101,432,243

 

 

101,773,643

 

 

101,894,786

Diluted

 

101,537,640

 

 

103,164,267

 

 

101,711,740

 

 

102,047,845

 

 

102,162,704

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

35,543

 

$

34,975

 

$

34,518

 

$

34,688

 

$

34,759

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio

 

56.16%

 

 

54.69%

 

 

52.33%

 

 

51.61%

 

 

54.62%

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December

 

December

 

December

 

December

YTD Share Data:

 

 

2019

 

2018

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

Basic

 

 

$

2.55

 

$

2.46

 

$

1.54

 

$

2.00

Diluted

 

 

$

2.55

 

$

2.45

 

$

1.54

 

$

1.99

 

 

 

 

 

 

 

 

 

 

Common Dividend Declared Per Share

 

 

$

1.37

 

$

1.36

 

$

1.33

 

$

1.32

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

Basic

 

 

 

101,585,599

 

 

104,015,976

 

 

97,502,633

 

 

73,531,992

Diluted

 

 

 

101,852,577

 

 

104,298,825

 

 

97,890,078

 

 

73,893,127

 

 

 

 

 

 

 

 

 

 

Common Dividends

 

 

$

139,508

 

$

141,610

 

$

131,755

 

$

98,696

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio

 

 

 

53.64%

 

 

55.24%

 

 

87.50%

 

 

67.10%

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

2,204

 

 

2,230

 

 

2,381

 

 

1,701

 

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

EOP Share Data:

2019

 

2018

 

2019

 

2019

 

2019

Book Value Per Share

$

33.12

 

$

31.78

 

$

33.03

 

$

32.70

 

$

32.19

Tangible Book Value Per Share (1)

$

18.27

 

$

16.97

 

$

18.16

 

$

17.87

 

$

17.37

 

 

 

 

 

 

 

 

 

 

52-week High Common Stock Price

$

40.70

 

$

39.95

 

$

39.98

 

$

39.95

 

$

39.95

Date

11/05/19

 

08/21/18

 

09/13/19

 

08/21/18

 

08/21/18

52-week Low Common Stock Price

$

30.67

 

$

29.13

 

$

30.67

 

$

29.13

 

$

29.13

Date

01/02/19

 

12/27/18

 

01/02/19

 

12/27/18

 

12/27/18

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

101,553,671

 

 

102,323,488

 

 

101,555,696

 

 

101,963,030

 

 

102,118,029

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

$

3,363,833

 

$

3,251,624

 

$

3,354,342

 

$

3,333,858

 

$

3,286,891

Less: Total Intangibles

 

(1,507,945)

 

 

(1,514,961)

 

 

(1,509,699)

 

 

(1,511,453)

 

 

(1,513,207)

Tangible Equity (non-GAAP)

$

1,855,888

 

$

1,736,663

 

$

1,844,643

 

$

1,822,405

 

$

1,773,684

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

101,553,671

 

 

102,323,488

 

 

101,555,696

 

 

101,963,030

 

 

102,118,029

Tangible Book Value Per Share (non-GAAP)

$

18.27

 

$

16.97

 

$

18.16

 

$

17.87

 

$

17.37

 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

 

2019

 

2018

 

2019

 

2019

 

2019

Selected Yields and Net Interest Margin:

 

 

 

 

 

 

 

 

 

Net Loans

 

4.65%

 

 

4.86%

 

 

4.75%

 

 

5.10%

 

 

4.91%

Investment Securities

 

2.74%

 

 

2.92%

 

 

2.90%

 

 

2.90%

 

 

2.93%

Money Market Investments/FFS

 

2.57%

 

 

2.57%

 

 

2.98%

 

 

2.81%

 

 

3.20%

Average Earning Assets Yield

 

4.28%

 

 

4.46%

 

 

4.38%

 

 

4.67%

 

 

4.54%

Interest-bearing Deposits

 

1.33%

 

 

1.25%

 

 

1.49%

 

 

1.46%

 

 

1.37%

Short-term Borrowings

 

1.52%

 

 

1.52%

 

 

1.78%

 

 

1.79%

 

 

1.61%

Long-term Borrowings

 

2.35%

 

 

2.58%

 

 

2.44%

 

 

2.70%

 

 

2.77%

Average Liability Costs

 

1.50%

 

 

1.43%

 

 

1.64%

 

 

1.66%

 

 

1.58%

Net Interest Spread

 

2.78%

 

 

3.03%

 

 

2.74%

 

 

3.01%

 

 

2.96%

Net Interest Margin

 

3.29%

 

 

3.50%

 

 

3.27%

 

 

3.53%

 

 

3.46%

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

 

 

Return on Average Common Equity

 

7.42%

 

 

7.77%

 

 

7.79%

 

 

8.12%

 

 

7.88%

Return on Average Assets

 

1.29%

 

 

1.33%

 

 

1.33%

 

 

1.38%

 

 

1.34%

Return on Average Tangible Equity (non-GAAP) (1)

13.38%

 

14.52%

14.16%

 

14.90%

 

14.64%

Efficiency Ratio

 

54.28%

 

 

51.55%

 

 

52.21%

 

 

52.64%

 

 

50.99%

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

63,285

 

$

63,950

 

$

65,965

 

$

67,207

 

$

63,642

 

 

 

 

 

 

 

 

 

 

(b) Number of days

 

92

 

 

92

 

 

92

 

 

91

 

 

90

 

 

 

 

 

 

 

 

 

 

Average Total Shareholders' Equity (GAAP)

$

3,385,362

 

$

3,263,357

 

$

3,359,437

 

$

3,220,987

 

$

3,276,822

Less: Average Total Intangibles

 

(1,508,851)

 

 

(1,516,003)

 

 

(1,510,653)

 

 

(1,512,400)

 

 

(1,514,168)

(c) Average Tangible Equity (non-GAAP)

$

1,876,511

 

$

1,747,354

 

$

1,848,784

 

$

1,808,587

 

$

1,762,654

 

 

 

 

 

 

 

 

 

 

Return on Tangible Equity (non-GAAP)

[(a) / (b)] x 365 / (c)

 

 

 

13.38%

 

 

 

 

14.52%

 

 

 

 

14.16%

 

 

 

 

14.90%

 

 

 

 

14.64%

 

 

Year Ended

 

 

 

December