United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2016

WASHINGTON & CHARLESTON, W. Va.--()--United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the second quarter and the first half of 2016. Earnings for the second quarter of 2016 were $31.8 million or $0.44 per diluted share, as compared to earnings of $34.8 million or $0.50 per diluted share for the second quarter of 2015. Earnings for the first half of 2016 were $66.5 million or $0.94 per diluted share as compared to earnings of $69.4 million or $1.00 per diluted share for the first half of 2015.

“Our earnings remain strong despite significant merger expenses related to the acquisition of the Bank of Georgetown,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Even with these merger-related expenses, we are ahead of peer profit performance.”

On June 3, 2016, United completed its acquisition of Bank of Georgetown of Washington, D.C. The results of operations of Bank of Georgetown are included in the consolidated results of operations from the date of acquisition. As a result, the second quarter and first half of 2016 were impacted for approximately a month by increased levels of average balances, income, and expense as compared to the second quarter and first half of 2015 and the first quarter of 2016 due to the acquisition. In addition, the second quarter and first half of 2016 included $4.5 million and $4.7 million, respectively, of merger-related expenses. At consummation, Bank of Georgetown had assets of approximately $1.3 billion, loans of $999.8 million, and deposits of $971.4 million.

Second quarter of 2016 results produced an annualized return on average assets of 1.00% and an annualized return on average equity of 6.99%, respectively. For the first half of 2016, United’s return on average assets was 1.06% while the return on average equity was 7.51%. United’s Federal Reserve peer group’s (bank holding companies with total assets over $10 billion) most recently reported average return on assets and average return on equity were 0.86% and 7.44%, respectively, for the first quarter of 2016. United’s annualized returns on average assets and average equity were 1.15% and 8.23%, respectively, for the second quarter of 2015 while the returns on average assets and average equity were 1.15% and 8.30%, respectively, for the first half of 2015.

Tax-equivalent net interest income for the second quarter of 2016 was $104.2 million, an increase of $6.7 million or 7% from the second quarter of 2015 due mainly to an increase in average earning assets from the Bank of Georgetown acquisition and loan growth. Average earning assets for the second quarter of 2016 increased $599.3 million or 6% from the second quarter of 2015 due mainly to a $648.4 million or 7% increase in average net loans. Average short-term investments decreased $39.0 million or 8% while average investment securities were relatively flat, decreasing $10.2 million or less than 1%. The second quarter of 2016 average yield on earning assets increased 7 basis points from the second quarter of 2015 due to additional loan accretion of $2.0 million on previously acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the second quarter of 2016 was an increase of 2 basis points in the average cost of funds as compared to the second quarter of 2015 due to the higher market interest rates. The net interest margin of 3.67% for the second quarter of 2016 was an increase of 5 basis points from the net interest margin of 3.62% for the second quarter of 2015.

Tax-equivalent net interest income for the first half of 2016 was $204.0 million, an increase of $10.2 million or 5% from the first half of 2015. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Bank of Georgetown acquisition and loan growth. Average earning assets increased $415.5 million or 4% from the first half of 2015 as average net loans increased $493.2 million or 5% for the first half of 2016. Average investment securities decreased $59.2 million or 5% while short-term investments decreased $18.5 million or 4%. In addition, the average yield on earning assets increased 4 basis points from the first half of 2015 due to additional loan accretion of $3.1 million on previously acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the first half of 2016 was an increase of 2 basis points in the average cost of funds as compared to the first half of 2015 due to higher market interest rates. The net interest margin of 3.66% for the first half of 2016 was an increase of 5 basis points from the net interest margin of 3.61% for the first half of 2015.

On a linked-quarter basis, United’s tax-equivalent net interest income for the second quarter of 2016 increased $4.5 million or 4% due mainly to an increase in average earning assets from the Bank of Georgetown merger. Average earning assets increased $399.8 million or 4% for the linked-quarter. Average net loans increased $378.6 million or 4% while average investment securities increased $71.5 million or 6%. Average short-term investments decreased $50.3 million or 10%. In addition, the second quarter of 2016 average yield on earning assets increased 3 basis points from the first quarter of 2016 due to additional loan accretion of $1.1 million on previously acquired loans and the average cost of funds declined a basis point. The net interest margin of 3.67% for the second quarter of 2016 was an increase of 3 basis points from the net interest margin of 3.64% for the first quarter of 2016.

For the quarters ended June 30, 2016 and 2015, the provision for loan losses was $7.7 million and $5.7 million, respectively, while the provision for the first six months of 2016 was $11.7 million as compared to $11.1 million for the first six months of 2015. Net charge-offs were $10.7 million and $6.1 million for the second quarter of 2016 and 2015, respectively. Net charge-offs were $15.0 million and $11.4 million for the first half of 2016 and 2015, respectively. Annualized net charge-offs as a percentage of average loans was 0.44% and 0.32% for the second quarter and first half of 2016, respectively.

Noninterest income for the second quarter of 2016 was $18.0 million, which was a decrease of $1.5 million or 8% from the second quarter of 2015. The decrease was due to lower fees from deposit services as a result of the Durbin Amendment being effective for United on July 1, 2015. The Durbin Amendment, passed as part of the Dodd-Frank financial reform legislation, limits fees for debit card processing paid by merchants to banking companies with assets in excess of $10 billion. Fees from deposit services for the second quarter of 2016 declined $2.0 million from the second quarter of 2015 due mainly to lower income on debit card transactions.

Noninterest income for the first half of 2016 was $34.4 million, which was a decrease of $3.3 million or 9% from the first half of 2015. Once again, the decrease was due to lower fees from deposit services as a result of the Durbin Amendment. Fees from deposit services for the first half of 2016 declined $3.8 million from the first half of 2015. Partially offsetting this decrease was an increase in mortgage banking income of $309 thousand due to an increase in the spread on loan sales.

On a linked-quarter basis, noninterest income for the second quarter of 2016 increased $1.6 million or 10% from the first quarter of 2016. Fees from deposit services increased $417 thousand as a result of increased debit card and automated teller machine (ATM) usage and bankcard fees increased $527 thousand due to increased volume.

Noninterest expense for the second quarter of 2016 was $64.9 million, an increase of $7.1 million or 12% from the second quarter of 2015 due mainly to the Bank of Georgetown merger as most major categories of noninterest expense showed increases. In particular, employee compensation increased $1.9 million including $365 thousand of merger severance charges, employee benefits increased $706 thousand including $584 thousand of expense on assumed benefit agreements, net occupancy expenses increased $1.2 million including $1.6 million for the termination of leases for closed offices, and additional merger-related expenses of $1.9 million were incurred. The remainder of the increase in employee compensation was due mainly to merit raises and higher employee incentives. In addition, other real estate owned (OREO) expense increased $1.5 million from the second quarter of 2015 due to a decline in the fair value of OREO properties.

Noninterest expense for the first half of 2016 was $122.9 million, an increase of $7.5 million or 7% from the first half of 2015 due in large part to the Bank of Georgetown merger. Employee compensation increased $3.9 million which includes the $365 thousand of merger severance charges. Otherwise, employee compensation increased due to merit raises and a higher amount of employee incentives. Employee benefits increased $506 thousand due to the $584 thousand of expense on assumed benefit agreements. Net occupancy expenses increased $955 thousand which includes the $1.6 million for the termination of leases for closed offices. Other real estate owned (OREO) expense increased $1.1 million due to a decline in the fair value of OREO properties. In addition, other merger-related expenses of $2.2 million were incurred.

On a linked-quarter basis, noninterest expense for the second quarter of 2016 increased $6.8 million or 12% from the first quarter of 2016 generally due to additional operating and merger-related expenses from the Bank of Georgetown acquisition. In particular, employee compensation expense increased $352 thousand due to the $365 thousand of merger severance charges, employee benefits increased $691 thousand due mainly to the $584 thousand of expense on assumed benefit agreements, net occupancy expense increased $1.5 million due to the $1.6 million for the termination of leases, and other merger-related expenses increased $1.7 million. In addition, OREO expense increased $2.0 million due to a decline in the fair values of OREO properties.

For the second quarter of 2016, income tax expense was $16.4 million as compared to $17.1 million for the second quarter of 2015. This decrease was due mainly to lower earnings. On a linked-quarter basis, income tax expense decreased $1.5 million due to lower earnings from the first quarter of 2016. Income tax expense for the first half 2016 increased $1.8 million from the first half 2015 as a result of historical tax credits in the first half of 2015. United’s effective tax rate was approximately 34.0% for the second quarter and first quarter of 2016 and 33.0% for the second quarter of 2015. For the first half of 2016 and 2015, United's effective tax rate was 34.0% and 31.9%, respectively.

United’s asset quality continues to be sound. At June 30, 2016, nonperforming loans were $113.0 million, or 1.08% of loans, net of unearned income down from nonperforming loans of $126.7 million or 1.35% of loans, net of unearned income, at December 31, 2015. As of June 30, 2016, the allowance for loan losses was $72.4 million or 0.70% of loans, net of unearned income, as compared to $75.7 million or 0.81% of loans, net of unearned income, at December 31, 2015. United’s allowance for loan losses as a percentage of non-acquired loans, net of unearned income at June 30, 2016 was 0.92% as compared to 1.00% at December 31, 2015. Total nonperforming assets of $147.9 million, including OREO of $34.9 million at June 30, 2016, represented 1.03% of total assets.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 12.6% at June 30, 2016 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 10.0%, 12.0% and 11.5%, 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 second quarter of 2016, United’s Board of Directors declared a cash dividend of $0.33 per share. United has increased its dividend to shareholders for 42 consecutive years. United is one of only two major banking companies in the USA to have achieved such a record.

United has consolidated assets of approximately $14.3 billion with 129 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, 2016 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, 2016 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, the allowance for loan losses as a percentage of non-acquired loans, 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%.

In accordance with accounting rules, United is unable to carry-over an acquired banking company’s previously established allowance for loan losses because acquired loans are recorded at fair value. Therefore, due to this acquisition accounting impact on the allowance for loans losses as well as loans, net of unearned income, management believes that excluding acquired loans in the calculation of the allowance for loan losses as a percentage of loans, net of unearned income reflects the difference in the accounting rules for acquired loans and originated loans as well as provides for improved comparability to prior periods and to other financial institutions without acquired loans.

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 Ended Six Months Ended
June 30

2016

    June 30

2015

June 30

2016

    June 30

2015

EARNINGS SUMMARY:        
Interest income, taxable equivalent (non-GAAP) $ 114,600 $ 107,126 $ 224,589 $ 213,244
Interest expense   10,362       9,630   20,574       19,430
Net interest income, taxable equivalent (non-GAAP) 104,238 97,496 204,015 193,814
Taxable equivalent adjustment   1,513       1,594   3,006       3,163
Net interest income (GAAP) 102,725 95,902 201,009 190,651
Provision for loan losses 7,667 5,716 11,702 11,070
Noninterest income 17,967 19,498 34,359 37,689
Noninterest expenses   64,855       57,730   122,911       115,385
Income before income taxes 48,170 51,954 100,755 101,885
Income taxes   16,378       17,145   34,257       32,449
Net income $ 31,792     $ 34,809 $ 66,498     $ 69,436
 
PER COMMON SHARE:
Net income:
Basic $ 0.44 $ 0.50 $ 0.94 $ 1.00
Diluted 0.44 0.50 0.94 1.00
Cash dividends $ 0.33 $ 0.32 0.66 0.64
Book value 26.39 24.29
Closing market price $ 37.51 $ 40.23
Common shares outstanding:
Actual at period end, net of treasury shares 76,296,146 69,493,873
Weighted average- basic 71,483,703 69,305,612 70,490,596 69,256,831
Weighted average- diluted 71,809,021 69,587,417 70,766,964 69,531,839
 
FINANCIAL RATIOS:
Return on average assets 1.00% 1.15% 1.06% 1.15%
Return on average shareholders’ equity 6.99% 8.23% 7.51% 8.30%
Average equity to average assets 14.29% 13.96% 14.17% 13.88%
Net interest margin 3.67% 3.62% 3.66% 3.61%
 
June 30

2016

    June 30

2015

  December 31

2015

    March 31

2016

PERIOD END BALANCES:
Assets $ 14,338,012 $ 12,414,566 $ 12,577,944 $ 12,606,884
Earning assets 12,762,233 11,023,560 11,243,862 11,268,979
Loans, net of unearned income 10,422,858 9,082,104 9,384,080 9,378,393
Loans held for sale 6,226 14,856 10,681 5,395
Investment securities 1,483,151 1,258,315 1,204,182 1,207,310
Total deposits 10,315,853 9,282,426 9,341,527 9,324,568
Shareholders’ equity 2,013,140 1,688,013 1,712,635 1,735,037
 
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 Six Months Ended
June June March June June
2016 2015 2016 2016 2015
Interest & Loan Fees Income (GAAP) $ 113,087 $ 105,532 $ 108,496 $ 221,583 $ 210,081
Tax equivalent adjustment   1,513   1,594   1,493   3,006   3,163
Interest & Fees Income (FTE) (non-GAAP) 114,600 107,126 109,989 224,589 213,244
Interest Expense   10,362   9,630   10,212   20,574   19,430
Net Interest Income (FTE) (non-GAAP) 104,238 97,496 99,777 204,015 193,814
 
Provision for Loan Losses 7,667 5,716 4,035 11,702 11,070
 
Non-Interest Income:
Fees from trust & brokerage services 4,792 4,931 4,869 9,661 9,823
Fees from deposit services 8,390 10,434 7,973 16,363 20,207
Bankcard fees and merchant discounts 1,365 1,231 838 2,203 2,045
Other charges, commissions, and fees 796 639 429 1,225 1,117
Income from bank-owned life insurance 1,192 1,258 1,180 2,372 2,531
Mortgage banking income 789 663 728 1,517 1,208
Other non-interest revenue 430 339 371 801 743
Net other-than-temporary impairment losses (33) 0 0 (33) (34)
Net gains on sales/calls of investment

securities

 

246

 

3

  4  

250

 

49

Total Non-Interest Income   17,967   19,498   16,392   34,359   37,689
 
Non-Interest Expense:
Employee compensation 22,631 20,724 22,279 44,910 40,992
Employee benefits 7,294 6,588 6,603 13,897 13,391
Net occupancy 7,773 6,542 6,253 14,026 13,071
Data processing 3,596 3,867 3,551 7,147 7,610
Amortization of intangibles 919 855 745 1,664 1,710
OREO expense 2,663 1,121 649 3,312 2,234
FDIC insurance expense 2,135 2,061 2,120 4,255 4,155
Other expenses   17,844   15,972   15,856   33,700   32,222
Total Non-Interest Expense   64,855   57,730   58,056   122,911   115,385
 
Income Before Income Taxes (FTE) (non-GAAP) 49,683 53,548 54,078 103,761 105,048
 
Tax equivalent adjustment   1,513   1,594   1,493   3,006   3,163
 
Income Before Income Taxes (GAAP) 48,170 51,954 52,585 100,755 101,885
 
Taxes   16,378   17,145   17,879   34,257   32,449
 
Net Income $ 31,792 $ 34,809 $ 34,706 $ 66,498 $ 69,436
 
MEMO: Effective Tax Rate 34.00% 33.00% 34.00% 34.00% 31.85%
 
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 30 June 30
2016 2015 June 30 December 31 June 30
Q-T-D Average Q-T-D Average 2016 2015

2015

 
Cash & Cash Equivalents $ 624,130 $ 652,284 $ 1,101,469 $ 857,335 $ 917,101
 
Securities Available for Sale 1,122,029 1,145,994 1,323,709 1,066,334 1,126,809
Held to Maturity Securities 38,765 39,077 34,029 39,099 39,050
Other Investment Securities   105,733   91,663   125,413   98,749   92,456
Total Securities   1,266,527   1,276,734   1,483,151   1,204,182   1,258,315
Total Cash and Securities   1,890,657   1,929,018   2,584,620   2,061,517   2,175,416
 
Loans held for sale 6,006 10,405 6,226 10,681 14,856
 
Commercial Loans 7,367,456 6,890,468 7,943,560 7,096,595 6,869,386
Mortgage Loans 1,878,056 1,806,125 1,961,824 1,843,518 1,807,609
Consumer Loans   513,541   409,444   531,970   458,839   420,306
 
Gross Loans 9,759,053 9,106,037 10,437,354 9,398,952 9,097,301
 
Unearned income   (15,283)   (14,928)   (14,496)   (14,872)   (15,197)
 
Loans, net of unearned income 9,743,770 9,091,109 10,422,858 9,384,080 9,082,104
 
Allowance for Loan Losses (75,457) (75,617) (72,448) (75,726) (75,215)
 
Goodwill 753,346 710,252 866,176 710,252 710,252
Other Intangibles   16,871   20,005   27,583   17,840   19,550
Total Intangibles 770,217 730,257 893,759 728,092 729,802
 
Other Real Estate Owned 30,086 36,662 34,894 32,228 34,964
Other Assets   431,263   438,760   468,103   437,072   452,639
Total Assets $ 12,796,542 $ 12,160,594 $ 14,338,012 $ 12,577,944 $ 12,414,566
 
MEMO: Interest-earning Assets $ 11,409,062 $ 10,809,806 $ 12,762,233 $ 11,243,862 $ 11,023,560
 
Interest-bearing Deposits $ 6,601,335 $ 6,546,968 $ 7,174,705 $ 6,641,569 $ 6,629,478
Noninterest-bearing Deposits   2,800,110   2,558,533   3,141,148   2,699,958   2,652,948
Total Deposits 9,401,445 9,105,501 10,315,853 9,341,527 9,282,426
 
Short-term Borrowings 390,807 317,569 735,323 423,028 383,828
Long-term Borrowings   1,106,972   979,736   1,169,892   1,015,249   979,614
Total Borrowings 1,497,779 1,297,305 1,905,215 1,438,277 1,363,442
 
Other Liabilities   69,134   60,631   103,804   85,505   80,685
Total Liabilities   10,968,358   10,463,437   12,324,872   10,865,309   10,726,553
 
Preferred Equity --- --- --- --- ---
Common Equity   1,828,184   1,697,157   2,013,140   1,712,635   1,688,013
Total Shareholders' Equity   1,828,184   1,697,157   2,013,140   1,712,635   1,688,013
 
Total Liabilities & Equity $ 12,796,542 $ 12,160,594 $ 14,338,012 $ 12,577,944 $ 12,414,566
 
MEMO: Interest-bearing Liabilities $ 8,099,114 $ 7,844,273 $ 9,079,920 $ 8,079,846 $ 7,992,920
 
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 March June June
Quarterly/Year-to-Date Share Data: 2016 2015 2016 2016 2015
 
Earnings Per Share:
Basic $ 0.44 $ 0.50 $ 0.50 $ 0.94 $ 1.00
Diluted $ 0.44 $ 0.50 $ 0.50 $ 0.94 $ 1.00
 
Common Dividend Declared Per Share: $ 0.33 $ 0.32 $ 0.33 $ 0.66 $ 0.64
 
High Common Stock Price $ 40.18 $ 40.70 $ 37.85 $ 40.18 $ 40.70
Low Common Stock Price $ 34.50 $ 36.58 $ 32.22 $ 32.22 $ 33.25
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 71,483,703 69,305,612 69,497,489 70,490,596 69,256,831
Diluted 71,809,021 69,587,417 69,714,121 70,766,964 69,531,839
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 90 $ 1 $ 1 $ 91 $ 18
 
Common Dividends $ 25,160 $ 22,229 $ 23,001 $ 48,161 $ 44,440
 
Dividend Payout Ratio 79.14 % 63.86 % 66.27 % 72.42 % 64.00 %
 
June 30 June 30 March 31
EOP Share Data: 2016 2015 2016
 
Book Value Per Share $ 26.39 $ 24.29 $ 24.89
Tangible Book Value Per Share $ 14.67 $ 13.79 $ 14.46
 
52-week High Common Stock Price $ 43.43 $ 40.70 $ 43.43
Date 07/23/15 06/30/15 07/23/15
52-week Low Common Stock Price $ 32.22 $ 30.39 $ 32.22
Date 02/11/16 10/07/14 02/11/16
 
EOP Shares Outstanding (Net of Treasury Stock): 76,296,146 69,493,873 69,706,341
 
Memorandum Items:
 
EOP Employees (full-time equivalent) 1,772 1,701 1,670
 

Note:

(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 2,013,140 $ 1,688,013 $ 1,735,037
Less: Total Intangibles   (893,759 )   (729,802 )   (727,347 )
Tangible Equity (non-GAAP) $ 1,119,381 $ 958,211 $ 1,007,690
÷ EOP Shares Outstanding (Net of Treasury Stock) 76,296,146 69,493,873 69,706,341
Tangible Book Value Per Share (non-GAAP) $ 14.67 $ 13.79 $ 14.46
 
  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 March June June
Selected Yields and Net Interest Margin: 2016 2015 2016 2016 2015
 
Loans 4.34% 4.35% 4.34% 4.34% 4.35%
Investment Securities 3.03% 2.81% 3.01% 3.02% 2.87%
Money Market Investments/FFS 0.55% 0.28% 0.48% 0.52% 0.27%
Average Earning Assets Yield 4.04% 3.97% 4.01% 4.02% 3.98%
Interest-bearing Deposits 0.41% 0.42% 0.42% 0.41% 0.42%
Short-term Borrowings 0.38% 0.26% 0.31% 0.35% 0.26%
Long-term Borrowings 1.21% 1.07% 1.22% 1.22% 1.04%
Average Liability Costs 0.51% 0.49% 0.52% 0.52% 0.50%
Net Interest Spread 3.53% 3.48% 3.49% 3.50% 3.48%
Net Interest Margin 3.67% 3.62% 3.64% 3.66% 3.61%
 
Selected Financial Ratios:
 
Return on Average Common Equity 6.99% 8.23% 8.06% 7.51% 8.30%
Return on Average Assets 1.00% 1.15% 1.13% 1.06% 1.15%
Efficiency Ratio 53.74% 50.03% 50.63% 52.22% 50.53%
 
June 30 June 30 March 31 December 31
2016 2015 2016 2015
Loan / Deposit Ratio 101.04% 97.84% 100.58% 100.46%
Allowance for Loan Losses/ Loans, net of unearned income 0.70% 0.83% 0.80% 0.81%
Allowance for Loan Losses/ Non-acquired Loans, net of unearned income (1)

0.92%

1.06%

0.98%

1.00%

Allowance for Credit Losses (2)/ Loans, net of unearned income 0.71% 0.84% 0.82% 0.82%
Nonaccrual Loans / Loans, net of unearned income 0.79% 0.96% 0.99% 0.97%
90-Day Past Due Loans/ Loans, net of unearned income 0.05% 0.13% 0.08% 0.12%
Non-performing Loans/ Loans, net of unearned income 1.08% 1.33% 1.33% 1.35%
Non-performing Assets/ Total Assets 1.03% 1.25% 1.22% 1.26%
Primary Capital Ratio 14.48% 14.13% 14.28% 14.14%
Shareholders' Equity Ratio 14.04% 13.60% 13.76% 13.62%
Price / Book Ratio 1.42 x 1.66 x 1.47 x 1.50 x
Price / Earnings Ratio 21.18 x 20.11 x 18.43 x 18.67 x
 

Notes:

(1) Allowance for Loan Losses (GAAP) $ 72,448 $ 75,215 $ 75,490 $ 75,726
 
Loans, net of unearned income (GAAP) 10,422,858 9,082,104 9,378,393 9,384,080
Less: Acquired Loans (non-GAAP) (2,551,928) (2,005,674) (1,698,353) (1,791,023)
Non-Acquired Loans, net of unearned income (non-GAAP) $ 7,870,930 $ 7,076,430 $ 7,680,040 $ 7,593,057
 
Allowance for Loan Losses/ Non-acquired Loans, Net of Unearned

Income (non-GAAP)

0.92% 1.06% 0.98% 1.00%
         
(2) 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)

                           
June June December March
Asset Quality Data: 2016 2015 2015 2016
 
EOP Non-Accrual Loans $ 82,509 $ 86,843 $ 91,189 $ 92,901
EOP 90-Day Past Due Loans 5,594 11,635 11,628 7,891
EOP Restructured Loans (2)   24,944 21,992   23,890   24,156
Total EOP Non-performing Loans $ 113,047 $ 120,470 $ 126,707 $ 124,948
 
EOP Other Real Estate Owned   34,894 34,964   32,228   28,981
Total EOP Non-performing Assets $ 147,941 $ 155,434 $ 158,935 $ 153,929
 
 
Three Months Ended Six Months Ended
June June March June June
Allowance for Credit Losses: (1) 2016 2015 2016 2016 2015
 
Beginning Balance $ 76,683 $ 77,048 $ 76,662 $ 76,662 $ 77,047
Provision for Credit Losses (3)   7,868     5,621   4,292   12,160   10,932
84,551 82,669 80,954 88,822 87,979
Gross Charge-offs (11,987) (6,627) (6,946) (18,933) (12,735)
Recoveries   1,278     553   2,675   3,953   1,351
Net Charge-offs   (10,709)     (6,074)   (4,271)   (14,980)   (11,384)
Ending Balance $ 73,842   $ 76,595 $ 76,683 $ 73,842 $ 76,595
 

Notes:

(1) Includes allowances for loan losses and lending-related commitments.
(2) Restructured loans with an aggregate balance of $10,682, $9,837, $11,450 and $11,949 at June 30, 2016, June 30, 2015, March 31, 2016 and December 31, 2015, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.

(3) Includes the Provision for Loan Losses and a provision for lending-related commitments included in Other Expenses.

Contacts

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

Contacts

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