United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2022

WASHINGTON & CHARLESTON, W.V.--()--United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter of 2022 of $102.6 million, or $0.76 per diluted share, as compared to earnings of $95.6 million, or $0.71 per diluted share, for the second quarter of 2022. The quarter was highlighted by continued broad-based loan growth, net interest margin expansion and strong credit quality metrics.

Annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, for the third quarter and first nine months of 2022 was 16% and 15%, respectively. Third quarter 2022 net interest margin of 3.78% increased 40 basis points from the second quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.35% at September 30, 2022.

Third quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.41%, 8.96% and 15.46%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.32%, 8.33% and 14.23%, respectively, for the second quarter of 2022.

“The third quarter of 2022 was another great quarter for UBSI,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “The company delivered strong results related to loan growth, margin expansion, expense control and asset quality. The vitality of our markets, the strength of our deposit franchise and our conservative and disciplined approach to running our business have served us well in this environment and will provide us opportunities going forward.”

Third quarter of 2022 compared to the second quarter of 2022

Net interest income for the third quarter of 2022 increased $25.7 million, or 12%, from the second quarter of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2022 also increased $25.7 million, or 12%, from the second quarter of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. This increase in net interest income and tax-equivalent net interest income was partially offset by higher interest expense primarily driven by deposit rate repricing as well as due to lower PPP loan fee income and lower acquired loan accretion. The interest rate spread of 3.52% for the third quarter of 2022 increased 28 basis points from the second quarter of 2022 due to a 56 basis point increase in the average yield on earning assets partially offset by a 28 basis point increase in the average cost of funds. A decrease in average earning assets of $188.1 million, or 1%, from the second quarter of 2022 was driven by a decrease of $818.5 million in short-term investments partially offset by increases in higher yielding average net loans and loans held for sale of $627.6 million. Net PPP loan fee income decreased $1.9 million to $1.6 million for the third quarter of 2022. Acquired loan accretion income decreased $1.3 million to $4.1 million for the third quarter of 2022. The net interest margin of 3.78% for the third quarter of 2022 was an increase of 40 basis points from the net interest margin of 3.38% for the second quarter of 2022.

The provision for credit losses was $7.7 million for the third quarter of 2022 as compared to a net benefit of $1.8 million for the second quarter of 2022. The increase in the provision for credit losses was primarily due to loan growth.

Noninterest income for the third quarter of 2022 decreased $10.9 million, or 25%, from the second quarter of 2022. The decrease in noninterest income was primarily due to decreases of $6.0 million in income from mortgage banking activities, $2.6 million in income from bank-owned life insurance (“BOLI”), $1.4 million in net (losses) gains on investment securities and $761 thousand in fees from deposit services. The decrease in income from mortgage banking activities was mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. The decrease in BOLI income was primarily due to lower death benefits from the second quarter of 2022 and the impact of lower market values of underlying investments in the third quarter of 2022. The decrease in fees from deposit services reflects changes to United’s overdraft policy implemented during the third quarter of 2022.

Noninterest expense for the third quarter of 2022 decreased $4.0 million, or 3%, from the second quarter of 2022. The decrease in noninterest expense was primarily due to decreases of $8.8 million in the expense for the reserve for unfunded loan commitments and $3.0 million in employee compensation partially offset by an increase of $6.1 million in other noninterest expense. The decrease in the reserve for unfunded loan commitments reflects a decrease in the outstanding balance of loan commitments at quarter-end driven by loan fundings. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production. Other noninterest expense for the third quarter of 2022 included an accrual of $5.0 million related to a litigation matter with a former commercial customer.

For the third quarter of 2022, income tax expense was $25.9 million as compared to $23.5 million for the second quarter of 2022. The increase of $2.4 million was due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.2% and 19.8% for the third and second quarter of 2022, respectively.

Third quarter of 2022 compared to the third quarter of 2021

Earnings for the third quarter of 2022 were $102.6 million, or $0.76 per diluted share, as compared to earnings of $92.2 million, or $0.71 per diluted share, for the third quarter of 2021.

Net interest income for the third quarter of 2022 increased $59.0 million, or 33%, from the third quarter of 2021. Tax-equivalent net interest income for the third quarter of 2022 increased $59.1 million, or 32%, from the third quarter of 2021. United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”) on December 3, 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of higher average earning assets, driven by the Community Bankers Trust acquisition and organic loan growth, the impact of rising market interest rates on earning assets and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing, lower PPP loan fee income and lower acquired loan accretion income. Average earning assets for the third quarter of 2022 increased $1.1 billion, or 4%, from the third quarter of 2021 due to a $2.5 billion increase in average net loans and loans held for sale and a $1.5 billion increase in average investment securities partially offset by a $2.9 billion decrease in average short-term investments. The interest rate spread for the third quarter of 2022 increased 69 basis points from the third quarter of 2021 to 3.52% due to a 96 basis point increase in the average yield on earning assets partially offset by a 27 basis point increase in the average cost of funds. Net PPP loan fee income was $1.6 million and $7.8 million for the third quarter of 2022 and 2021, respectively, a decrease of $6.2 million. Acquired loan accretion income was $4.1 million and $8.2 million for the third quarter of 2022 and 2021, respectively, a decrease of $4.1 million. The net interest margin of 3.78% for the third quarter of 2022 was an increase of 80 basis points from the net interest margin of 2.98% for the third quarter of 2021.

The provision for credit losses was $7.7 million for the third quarter of 2022 as compared to a net benefit of $7.8 million for the third quarter of 2021. The increase in the provision for credit losses in the third quarter of 2022 was primarily due to loan growth.

Noninterest income for the third quarter of 2022 was $32.7 million, which was a decrease of $35.9 million, or 52%, from the third quarter of 2021. The decrease in noninterest income was driven by a $35.6 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market.

Noninterest expense for the third quarter of 2022 was $137.2 million, a decrease of $5.1 million, or 4%, from the third quarter of 2021 primarily due to decreases of $7.8 million in employee compensation and $7.2 million in the expense for the reserve for unfunded loan commitments partially offset by an increase of $8.8 million in other noninterest expense. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. The increase in other noninterest expense resulted from the previously mentioned litigation accrual in the third quarter of 2022 and higher amounts of certain general operating expenses.

For the third quarter of 2022, income tax expense was $25.9 million as compared to $23.6 million for the third quarter of 2021. The increase of $2.3 million was primarily due to higher earnings partially offset by a slightly lower effective tax rate. United’s effective tax rate was 20.2% for the third quarter of 2022 and 20.4% for the third quarter of 2021.

First nine months of 2022 compared to the first nine months of 2021

Earnings for the first nine months of 2022 were $279.9 million, or $2.06 per diluted share, as compared to earnings of $293.9 million, or $2.27 per diluted share, for the first nine months of 2021.

Net interest income for the first nine months of 2022 increased $88.0 million, or 16%, from the first nine months of 2021. Tax-equivalent net interest income for the first nine months of 2022 increased $88.1 million, or 16%, from the first nine months of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, an increase in average earning assets from the Community Bankers Trust acquisition and organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by lower PPP loan fee income, lower acquired loan accretion income and the impact of rising market interest rates on interest-bearing liabilities. Average earning assets for the first nine months of 2022 increased $1.8 billion, or 7%, from the first nine months of 2021 due to a $1.5 billion increase in average investment securities and a $1.3 billion increase in average net loans and loans held for sale partially offset by a $1.1 billion decrease in average short-term investments. The interest rate spread for the first nine months of 2022 increased 22 basis points from the first nine months of 2021 due to a 26 basis point increase in the average yield on earning assets partially offset by a 4 basis point increase in the average cost of funds. Net PPP loan fee income was $9.3 million and $28.2 million for the first nine months of 2022 and 2021, respectively, a decrease of $18.9 million. Acquired loan accretion income was $13.6 million and $27.6 million for the first nine months of 2022 and 2021, respectively, a decrease of $14.0 million. The net interest margin of 3.38% for the first nine months of 2022 was an increase of 24 basis points from the net interest margin of 3.14% for the first nine months of 2021.

The provision for credit losses was $2.5 million for the first nine months of 2022 as compared to a net benefit of $16.6 million for the first nine months of 2021.

Noninterest income for the first nine months of 2022 was $122.4 million, which was a decrease of $101.7 million, or 45%, from the first nine months of 2021. The decrease was driven by a $106.3 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. Fees from deposit services for the first nine months of 2022 were $31.0 million, an increase of $2.9 million from the first nine months of 2021. BOLI income for the first nine months of 2022 was $7.8 million, an increase of $2.2 million from the first nine months of 2021 due to increased death benefits.

Noninterest expense for the first nine months of 2022 was $417.5 million, a decrease of $12.6 million, or 3%, from the first nine months of 2021 driven by decreases in employee compensation of $23.6 million and employee benefits of $7.4 million partially offset by an increase in other noninterest expense of $13.3 million. The decrease in employee compensation was due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. Employee benefits decreased primarily due to changes in deferred compensation plans resulting from market fluctuations. The increase in other noninterest expense resulted from the previously mentioned litigation accrual in the third quarter of 2022 and higher amounts of certain general operating expenses.

For the first nine months of 2022, income tax expense was $69.6 million as compared to $75.6 million for the first nine months of 2021 due to lower earnings and a lower effective tax rate. United’s effective tax rate was 19.9% for the first nine months of 2022 and 20.5% for the first nine months of 2021.

Credit Quality

United’s asset quality continues to be sound. At September 30, 2022, non-performing loans were $69.7 million, or 0.35% of loans & leases, net of unearned income, down from $90.8 million, or 0.50% of loans & leases, net of unearned income, at December 31, 2021. Total non-performing assets of $80.4 million, including OREO of $10.8 million at September 30, 2022, represented 0.28% of total assets as compared to non-performing assets of $105.6 million, including OREO of $14.8 million, or 0.36% of total assets at December 31, 2021.

As of September 30, 2022, the allowance for loan & lease losses was $219.6 million, or 1.11% of loans & leases, net of unearned income, as compared to $216.0 million, or 1.20% of loans & leases, net of unearned income, at December 31, 2021. Net charge-offs were $1.8 million for the third quarter of 2022 compared to net recoveries of $1.2 million for the third quarter of 2021. Net recoveries were $1.1 million for the first nine months of 2022 compared to net charge-offs of $8.6 million for the first nine months of 2021. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.04% and (0.03)% for the third quarter of 2022 and 2021, respectively. Annualized net (recoveries) charge-offs as a percentage of average loans & leases, net of unearned income were (0.01)% and 0.07% for the for the first nine months of 2022 and 2021, respectively.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.4% at September 30, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.7%, respectively. The September 30, 2022 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. 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 first nine months of 2022 and 2021, United repurchased, under a previously announced stock repurchase plan, shares of its common stock. United did not repurchase any shares of its common stock during the third quarter of 2022 or 2021. During the first nine months of 2022, United repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69. During the first nine months of 2021, United repurchased approximately 306 thousand shares of its common stock at an average price per share of $32.52.

About United Bankshares, Inc.

As of September 30, 2022, United had consolidated assets of approximately $29.0 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. 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 September 30, 2022 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, 2022 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, average tangible equity, return on average 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 equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible 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 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

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

EARNINGS SUMMARY:

 

September
2022

 

September
2021

 

June
2022

 

September
2022

 

September
2021

Interest income

 

$

263,683

 

 

$

194,080

 

 

$

227,771

 

 

$

694,249

 

 

$

599,923

 

Interest expense

 

 

23,061

 

 

 

12,501

 

 

 

12,868

 

 

 

47,222

 

 

 

40,867

 

Net interest income

 

 

240,622

 

 

 

181,579

 

 

 

214,903

 

 

 

647,027

 

 

 

559,056

 

Provision for credit losses

 

 

7,671

 

 

 

(7,829

)

 

 

(1,807

)

 

 

2,454

 

 

 

(16,565

)

Noninterest income

 

 

32,749

 

 

 

68,631

 

 

 

43,608

 

 

 

122,382

 

 

 

224,075

 

Noninterest expense

 

 

137,196

 

 

 

142,283

 

 

 

141,174

 

 

 

417,545

 

 

 

430,186

 

Income before income taxes

 

 

128,504

 

 

 

115,756

 

 

 

119,144

 

 

 

349,410

 

 

 

369,510

 

Income taxes

 

 

25,919

 

 

 

23,604

 

 

 

23,531

 

 

 

69,548

 

 

 

75,624

 

Net income

 

$

102,585

 

 

$

92,152

 

 

$

95,613

 

 

$

279,862

 

 

$

293,886

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.76

 

 

$

0.71

 

 

$

0.71

 

 

$

2.07

 

 

$

2.28

 

Diluted

 

 

0.76

 

 

 

0.71

 

 

 

0.71

 

 

 

2.06

 

 

 

2.27

 

Cash dividends

 

$

0.36

 

 

$

0.35

 

 

 

0.36

 

 

 

1.08

 

 

 

1.05

 

Book value

 

 

 

 

 

 

33.34

 

 

 

32.98

 

 

 

34.29

 

Closing market price

 

 

 

 

 

$

35.07

 

 

$

35.75

 

 

$

36.38

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

 

 

134,580,646

 

 

 

134,631,647

 

 

 

129,203,774

 

Weighted average-basic

 

 

134,182,248

 

 

 

128,762,815

 

 

 

134,623,061

 

 

 

134,947,674

 

 

 

128,716,450

 

Weighted average-diluted

 

 

134,553,565

 

 

 

128,960,220

 

 

 

134,863,650

 

 

 

135,251,299

 

 

 

128,934,282

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.41

%

 

 

1.33

%

 

 

1.32

%

 

 

1.29

%

 

 

1.46

%

Return on average shareholders’ equity

 

 

8.96

%

 

 

8.23

%

 

 

8.33

%

 

 

8.07

%

 

 

8.95

%

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

 

 

15.46

%

 

 

14.03

%

 

 

14.23

%

 

 

13.73

%

 

 

15.36

%

Average equity to average assets

 

 

15.75

%

 

 

16.18

%

 

 

15.88

%

 

 

15.95

%

 

 

16.27

%

Net interest margin

 

 

3.78

%

 

 

2.98

%

 

 

3.38

%

 

 

3.38

%

 

 

3.14

%

 

 

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

 

 

September 30:2022

 

December 31
2021

 

September 30
2021

 

June 30
2022

Assets

 

 

 

$

29,048,475

 

 

$

29,328,902

 

 

$

27,507,517

 

 

$

28,777,896

 

Earning assets

 

 

 

 

25,648,264

 

 

 

26,083,089

 

 

 

24,415,973

 

 

 

25,356,669

 

Loans & leases, net of unearned income

 

 

 

 

19,700,080

 

 

 

18,023,648

 

 

 

16,743,629

 

 

 

18,970,395

 

Loans held for sale

 

 

 

 

210,075

 

 

 

504,416

 

 

 

493,299

 

 

 

220,689

 

Investment securities

 

 

 

 

4,923,694

 

 

 

4,295,749

 

 

 

3,646,065

 

 

 

5,073,618

 

Total deposits

 

 

 

 

22,863,377

 

 

 

23,350,263

 

 

 

21,822,609

 

 

 

23,026,649

 

Shareholders’ equity

 

 

 

 

4,440,086

 

 

 

4,718,628

 

 

 

4,430,766

 

 

 

4,487,050

 

 

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

 

Nine Months Ended

 

September

 

September

 

June

 

March

 

September

 

September

 

2022

 

2021

 

2022

 

2022

 

2022

 

2021

Interest & Loan Fees Income (GAAP)

$

263,683

 

 

$

194,080

 

 

$

227,771

 

 

$

202,795

 

 

$

694,249

 

 

$

599,923

 

Tax equivalent adjustment

 

1,105

 

 

 

1,059

 

 

 

1,104

 

 

 

1,109

 

 

 

3,318

 

 

 

3,181

 

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

 

264,788

 

 

 

195,139

 

 

 

228,875

 

 

 

203,904

 

 

 

697,567

 

 

 

603,104

 

Interest Expense

 

23,061

 

 

 

12,501

 

 

 

12,868

 

 

 

11,293

 

 

 

47,222

 

 

 

40,867

 

Net Interest Income (FTE) (non-GAAP)

 

241,727

 

 

 

182,638

 

 

 

216,007

 

 

 

192,611

 

 

 

650,345

 

 

 

562,237

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

7,671

 

 

 

(7,829

)

 

 

(1,807

)

 

 

(3,410

)

 

 

2,454

 

 

 

(16,565

)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

4,384

 

 

 

4,269

 

 

 

4,294

 

 

 

4,127

 

 

 

12,805

 

 

 

12,225

 

Fees from brokerage services

 

4,016

 

 

 

3,883

 

 

 

4,115

 

 

 

4,552

 

 

 

12,683

 

 

 

11,860

 

Fees from deposit services

 

10,069

 

 

 

9,888

 

 

 

10,830

 

 

 

10,148

 

 

 

31,047

 

 

 

28,180

 

Bankcard fees and merchant discounts

 

1,857

 

 

 

1,473

 

 

 

1,671

 

 

 

1,379

 

 

 

4,907

 

 

 

3,905

 

Other charges, commissions, and fees

 

918

 

 

 

703

 

 

 

785

 

 

 

759

 

 

 

2,462

 

 

 

2,237

 

Income from bank-owned life insurance

 

1,472

 

 

 

2,556

 

 

 

4,120

 

 

 

2,194

 

 

 

7,786

 

 

 

5,617

 

Income from mortgage banking activities

 

6,422

 

 

 

42,012

 

 

 

12,445

 

 

 

19,203

 

 

 

38,070

 

 

 

144,350

 

Mortgage loan servicing income

 

2,302

 

 

 

2,429

 

 

 

2,328

 

 

 

2,387

 

 

 

7,017

 

 

 

7,170

 

Net (losses) gains on investment securities

 

(206

)

 

 

82

 

 

 

1,182

 

 

 

(251

)

 

 

725

 

 

 

2,715

 

Other noninterest income

 

1,515

 

 

 

1,336

 

 

 

1,838

 

 

 

1,527

 

 

 

4,880

 

 

 

5,816

 

Total Noninterest Income

 

32,749

 

 

 

68,631

 

 

 

43,608

 

 

 

46,025

 

 

 

122,382

 

 

 

224,075

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

59,618

 

 

 

67,459

 

 

 

62,632

 

 

 

62,621

 

 

 

184,871

 

 

 

208,428

 

Employee benefits

 

10,750

 

 

 

13,132

 

 

 

12,047

 

 

 

12,851

 

 

 

35,648

 

 

 

43,052

 

Net occupancy

 

11,281

 

 

 

10,339

 

 

 

11,206

 

 

 

11,187

 

 

 

33,674

 

 

 

31,381

 

Data processing

 

7,614

 

 

 

6,612

 

 

 

7,549

 

 

 

7,371

 

 

 

22,534

 

 

 

20,594

 

Amortization of intangibles

 

1,379

 

 

 

1,466

 

 

 

1,379

 

 

 

1,379

 

 

 

4,137

 

 

 

4,399

 

OREO expense

 

1,708

 

 

 

428

 

 

 

46

 

 

 

182

 

 

 

1,936

 

 

 

4,483

 

Net losses (gains) on the sale of OREO properties

 

125

 

 

 

(34

)

 

 

(454

)

 

 

(33

)

 

 

(362

)

 

 

(67

)

Equipment expense

 

7,807

 

 

 

7,286

 

 

 

7,310

 

 

 

7,335

 

 

 

22,452

 

 

 

19,160

 

FDIC insurance expense

 

3,063

 

 

 

1,920

 

 

 

3,004

 

 

 

2,673

 

 

 

8,740

 

 

 

5,720

 

Mortgage loan servicing expense and impairment

 

1,847

 

 

 

3,253

 

 

 

1,783

 

 

 

1,643

 

 

 

5,273

 

 

 

10,029

 

Expense for the reserve for unfunded loan commitments

 

(2,881

)

 

 

4,294

 

 

 

5,899

 

 

 

5,237

 

 

 

8,255

 

 

 

5,941

 

Other noninterest expense

 

34,885

 

 

 

26,128

 

 

 

28,773

 

 

 

26,729

 

 

 

90,387

 

 

 

77,066

 

Total Noninterest Expense

 

137,196

 

 

 

142,283

 

 

 

141,174

 

 

 

139,175

 

 

 

417,545

 

 

 

430,186

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

129,609

 

 

 

116,815

 

 

 

120,248

 

 

 

102,871

 

 

 

352,728

 

 

 

372,691

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

1,105

 

 

 

1,059

 

 

 

1,104

 

 

 

1,109

 

 

 

3,318

 

 

 

3,181

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

128,504

 

 

 

115,756

 

 

 

119,144

 

 

 

101,762

 

 

 

349,410

 

 

 

369,510

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

25,919

 

 

 

23,604

 

 

 

23,531

 

 

 

20,098

 

 

 

69,548

 

 

 

75,624

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

102,585

 

 

$

92,152

 

 

$

95,613

 

 

$

81,664

 

 

$

279,862

 

 

$

293,886

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

20.17

%

 

 

20.39

%

 

 

19.75

%

 

 

19.75

%

 

 

19.90

%

 

 

20.47

%

 

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 2022

 

September 2021

 

September 30

 

December 31

 

September 30

 

June 30

 

 

Q-T-D Average

 

Q-T-D Average

2022

2021

2021

 

2022

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

1,260,311

 

 

$

4,132,702

 

 

$

1,356,347

 

 

$

3,758,170

 

 

$

4,033,561

 

 

$

1,658,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

4,826,072

 

 

 

3,344,196

 

 

 

4,648,087

 

 

 

4,042,699

 

 

 

3,409,984

 

 

 

4,812,704

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

4,826,072

 

 

 

3,344,196

 

 

 

4,648,087

 

 

 

4,042,699

 

 

 

3,409,984

 

 

 

4,812,704

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(18

)

 

 

(31

)

 

 

(19

)

 

 

(19

)

 

 

(27

)

 

 

(18

)

Net held to maturity securities

 

 

1,002

 

 

 

989

 

 

 

1,001

 

 

 

1,001

 

 

 

993

 

 

 

1,002

 

Equity Securities

 

 

9,449

 

 

 

11,735

 

 

 

7,314

 

 

 

12,404

 

 

 

11,984

 

 

 

13,513

 

Other Investment Securities

 

 

251,405

 

 

 

222,765

 

 

 

267,292

 

 

 

239,645

 

 

 

223,104

 

 

 

246,399

 

Total Securities

 

 

5,087,928

 

 

 

3,579,685

 

 

 

4,923,694

 

 

 

4,295,749

 

 

 

3,646,065

 

 

 

5,073,618

 

Total Cash and Securities

 

 

6,348,239

 

 

 

7,712,387

 

 

 

6,280,041

 

 

 

8,053,919

 

 

 

7,679,626

 

 

 

6,732,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

203,420

 

 

 

445,983

 

 

 

210,075

 

 

 

504,416

 

 

 

493,299

 

 

 

220,689

 

Commercial Loans & Leases

 

 

14,410,508

 

 

 

12,621,706

 

 

 

14,531,221

 

 

 

13,809,735

 

 

 

12,657,238

 

 

 

14,136,614

 

Mortgage Loans

 

 

3,613,613

 

 

 

2,916,877

 

 

 

3,756,692

 

 

 

3,008,410

 

 

 

2,884,542

 

 

 

3,481,064

 

Consumer Loans

 

 

1,442,240

 

 

 

1,221,578

 

 

 

1,434,572

 

 

 

1,233,162

 

 

 

1,229,552

 

 

 

1,376,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

19,466,361

 

 

 

16,760,161

 

 

 

19,722,485

 

 

 

18,051,307

 

 

 

16,771,332

 

 

 

18,994,125

 

Unearned income

 

 

(24,295

)

 

 

(31,288

)

 

 

(22,405

)

 

 

(27,659

)

 

 

(27,703

)

 

 

(23,730

)

Loans & Leases, net of unearned income

 

 

19,442,066

 

 

 

16,728,873

 

 

 

19,700,080

 

 

 

18,023,648

 

 

 

16,743,629

 

 

 

18,970,395

 

Allowance for Loan & Lease Losses

 

 

(213,824

)

 

 

(217,472

)

 

 

(219,611

)

 

 

(216,016

)

 

 

(210,891

)

 

 

(213,729

)

Net Loans

 

 

19,228,242

 

 

 

16,511,401

 

 

 

19,480,469

 

 

 

17,807,632

 

 

 

16,532,738

 

 

 

18,756,666

 

Mortgage Servicing Rights

 

 

22,369

 

 

 

22,479

 

 

 

21,908

 

 

 

23,144

 

 

 

22,836

 

 

 

22,593

 

Goodwill

 

 

1,888,889

 

 

 

1,810,040

 

 

 

1,888,889

 

 

 

1,886,494

 

 

 

1,810,040

 

 

 

1,888,889

 

Other Intangibles

 

 

21,165

 

 

 

23,409

 

 

 

20,276

 

 

 

24,413

 

 

 

22,524

 

 

 

21,655

 

Operating Lease Right-of-Use Asset

 

 

74,734

 

 

 

68,373

 

 

 

74,043

 

 

 

81,942

 

 

 

75,593

 

 

 

75,143

 

Other Real Estate Owned

 

 

13,508

 

 

 

17,618

 

 

 

10,779

 

 

 

14,823

 

 

 

16,696

 

 

 

13,847

 

Bank Owned Life Insurance

 

 

477,654

 

 

 

432,593

 

 

 

478,518

 

 

 

478,067

 

 

 

446,110

 

 

 

473,470

 

Other Assets

 

 

556,215

 

 

 

393,427

 

 

 

583,477

 

 

 

454,052

 

 

 

408,055

 

 

 

572,840

 

Total Assets

 

$

28,834,435

 

 

$

27,437,710

 

 

$

29,048,475

 

 

$

29,328,902

 

 

$

27,507,517

 

 

$

28,777,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

25,438,281

 

 

$

24,362,333

 

 

$

25,648,264

 

 

$

26,083,089

 

 

$

24,415,973

 

 

$

25,356,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

13,756,151

 

 

$

13,361,016

 

 

$

13,533,152

 

 

$

14,369,716

 

 

$

13,332,418

 

 

$

13,995,710

 

Noninterest-bearing Deposits

 

 

9,216,058

 

 

 

8,471,744

 

 

 

9,330,225

 

 

 

8,980,547

 

 

 

8,490,191

 

 

 

9,030,939

 

Total Deposits

 

 

22,972,209

 

 

 

21,832,760

 

 

 

22,863,377

 

 

 

23,350,263

 

 

 

21,822,609

 

 

 

23,026,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

137,985

 

 

 

123,526

 

 

 

142,476

 

 

 

128,844

 

 

 

123,018

 

 

 

128,242

 

Long-term Borrowings

 

 

894,940

 

 

 

813,976

 

 

 

1,297,308

 

 

 

817,394

 

 

 

813,851

 

 

 

796,961

 

Total Borrowings

 

 

1,032,925

 

 

 

937,502

 

 

 

1,439,784

 

 

 

946,238

 

 

 

936,869

 

 

 

925,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

79,409

 

 

 

72,389

 

 

 

78,748

 

 

 

86,703

 

 

 

80,518

 

 

 

79,787

 

Other Liabilities

 

 

207,792

 

 

 

154,952

 

 

 

226,480

 

 

 

227,070

 

 

 

236,755

 

 

 

259,207

 

Total Liabilities

 

 

24,292,335

 

 

 

22,997,603

 

 

 

24,608,389

 

 

 

24,610,274

 

 

 

23,076,751

 

 

 

24,290,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,542,100

 

 

 

4,440,107

 

 

 

4,440,086

 

 

 

4,718,628

 

 

 

4,430,766

 

 

 

4,487,050

 

Total Shareholders' Equity

 

 

4,542,100

 

 

 

4,440,107

 

 

 

4,440,086

 

 

 

4,718,628

 

 

 

4,430,766

 

 

 

4,487,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

28,834,435

 

 

$

27,437,710

 

 

$

29,048,475

 

 

$

29,328,902

 

 

$

27,507,517

 

 

$

28,777,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

14,789,076

 

 

$

14,298,518

 

 

$

14,972,936

 

 

$

15,315,954

 

 

$

14,269,287

 

 

$

14,920,913

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 

June

 

March

 

September

 

September

Quarterly/Year-to-Date Share Data:

2022

 

2021

 

2022

 

2022

 

2022

 

2021

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.76

 

 

$

0.71

 

 

$

0.71

 

 

$

0.60

 

 

$

2.07

 

 

$

2.28

 

Diluted

$

0.76

 

 

$

0.71

 

 

$

0.71

 

 

$

0.60

 

 

$

2.06

 

 

$

2.27

 

Common Dividend Declared Per Share

$

0.36

 

 

$

0.35

 

 

$

0.36

 

 

$

0.36

 

 

$

1.08

 

 

$

1.05

 

High Common Stock Price

$

40.85

 

 

$

37.12

 

 

$

37.81

 

 

$

39.80

 

 

$

40.85

 

 

$

42.50

 

Low Common Stock Price

$

33.67

 

 

$

31.74

 

 

$

33.11

 

 

$

33.58

 

 

$

33.11

 

 

$

31.57

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

134,182,248

 

 

 

128,762,815

 

 

 

134,623,061

 

 

 

136,058,328

 

 

 

134,947,674

 

 

 

128,716,450

 

Diluted

 

134,553,565

 

 

 

128,960,220

 

 

 

134,863,650

 

 

 

136,435,229

 

 

 

135,251,299

 

 

 

128,934,282

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

48,564

 

 

$

45,271

 

 

$

48,544

 

 

$

49,266

 

 

$

146,374

 

 

$

135,793

 

Dividend Payout Ratio

 

47.34

%

 

 

49.13

%

 

 

50.77

%

 

 

60.33

%

 

 

52.30

%

 

 

46.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

September 30

 

June 30

 

March 31

EOP Share Data:

 

 

 

 

2022

 

2021

 

2022

 

2022

Book Value Per Share

 

 

 

 

$

32.98

 

 

$

34.29

 

 

$

33.34

 

 

$

33.77

 

Tangible Book Value Per Share (non-GAAP) (1)

 

 

 

 

$

18.80

 

 

$

20.11

 

 

$

19.14

 

 

$

19.72

 

52-week High Common Stock Price

 

 

 

 

$

40.85

 

 

$

42.50

 

 

$

39.80

 

 

$

42.50

 

Date

 

 

 

 

8/16/22

 

05/18/21

 

01/13/22

 

05/18/21

52-week Low Common Stock Price

 

 

 

 

$

33.11

 

 

$

21.19

 

 

$

31.74

 

 

$

31.74

 

Date

 

 

 

 

5/2/22

 

10/01/20

 

09/20/21

 

9/20/21

 

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

134,631,647

 

 

 

129,203,774

 

 

 

134,580,646

 

 

 

136,068,439

 

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

2,915

 

 

 

2,986

 

 

 

2,988

 

 

 

3,090

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

$

4,440,086

 

 

$

4,430,766

 

 

$

4,487,050

 

 

$

4,595,140

 

Less: Total Intangibles

 

 

 

 

 

(1,909,165

)

 

 

(1,832,564

)

 

 

(1,910,544

)

 

 

(1,912,278

)

Tangible Equity (non-GAAP)

 

 

 

 

$

2,530,921

 

 

$

2,598,202

 

 

$

2,576,506

 

 

$

2,682,862

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

134,631,647

 

 

 

129,203,774

 

 

 

134,580,646

 

 

 

136,068,439

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

$

18.80

 

 

$

20.11

 

 

$

19.14

 

 

$

19.72

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 2022

 

Three Months Ended
September 2021

 

Three Months Ended
June 2022

Selected Average Balances and Yields:

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

ASSETS:

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under agreements to resell and other short-term investments

 

$

918,691

 

 

$

6,834

 

2.95

%

 

$

3,825,264

 

 

$

2,548

 

0.26

%

 

$

1,737,146

 

 

$

4,841

 

1.12

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,687,528

 

 

 

29,149

 

2.49

%

 

 

3,215,719

 

 

 

12,999

 

1.62

%

 

 

4,665,307

 

 

 

24,558

 

2.11

%

Tax-exempt

 

 

400,400

 

 

 

2,783

 

2.78

%

 

 

363,966

 

 

 

2,327

 

2.56

%

 

 

419,865

 

 

 

2,794

 

2.66

%

Total securities

 

 

5,087,928

 

 

 

31,932

 

2.51

%

 

 

3,579,685

 

 

 

15,326

 

1.71

%

 

 

5,085,172

 

 

 

27,352

 

2.15

%

Loans and loans held for sale, net of unearned income (2)

 

 

19,645,486

 

 

 

226,022

 

4.57

%

 

 

17,174,856

 

 

 

177,265

 

4.10

%

 

 

19,018,717

 

 

 

196,682

 

4.15

%

Allowance for loan losses

 

 

(213,824

)

 

 

 

 

 

 

(217,472

)

 

 

 

 

 

 

(214,624

)

 

 

 

 

Net loans and loans held for sale

 

 

19,431,662

 

 

 

 

4.62

%

 

 

16,957,384

 

 

 

 

4.15

%

 

 

18,804,093

 

 

 

 

4.19

%

Total earning assets

 

 

25,438,281

 

 

$

264,788

 

4.14

%

 

 

24,362,333

 

 

$

195,139

 

3.18

%

 

 

25,626,411

 

 

$

228,875

 

3.58

%

Other assets

 

 

3,396,154

 

 

 

 

 

 

 

3,075,377

 

 

 

 

 

 

 

3,383,037

 

 

 

 

 

TOTAL ASSETS

 

$

28,834,435

 

 

 

 

 

 

$

27,437,710

 

 

 

 

 

 

$

29,009,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

13,756,151

 

 

$

17,660

 

0.51

%

 

$

13,361,016

 

 

$

9,803

 

0.29

%

 

$

14,136,707

 

 

$

9,751

 

0.28

%

Short-term borrowings

 

 

137,985

 

 

 

493

 

1.42

%

 

 

123,526

 

 

 

167

 

0.54

%

 

 

136,025

 

 

 

237

 

0.70

%

Long-term borrowings

 

 

894,940

 

 

 

4,908

 

2.18

%

 

 

813,976

 

 

 

2,531

 

1.23

%

 

 

811,924

 

 

 

2,880

 

1.42

%

Total interest-bearing liabilities

 

 

14,789,076

 

 

 

23,061

 

0.62

%

 

 

14,298,518

 

 

 

12,501

 

0.35

%

 

 

15,084,656

 

 

 

12,868

 

0.34

%

Noninterest-bearing deposits

 

 

9,216,058

 

 

 

 

 

 

 

8,471,744

 

 

 

 

 

 

 

9,038,947

 

 

 

 

 

Accrued expenses and other liabilities

 

 

287,201

 

 

 

 

 

 

 

227,341

 

 

 

 

 

 

 

279,659

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,292,335

 

 

 

 

 

 

 

22,997,603

 

 

 

 

 

 

 

24,403,262

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,542,100

 

 

 

 

 

 

 

4,440,107

 

 

 

 

 

 

 

4,606,186

 

 

 

 

 

TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY

 

$

28,834,435

 

 

 

 

 

 

$

27,437,710

 

 

 

 

 

 

$

29,009,448

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

241,727

 

 

 

 

 

$

182,638

 

 

 

 

 

$

216,007

 

 

INTEREST RATE SPREAD

 

 

 

 

 

3.52

%

 

 

 

 

 

2.83

%

 

 

 

 

 

3.24

%

NET INTEREST MARGIN

 

 

 

 

 

3.78

%

 

 

 

 

 

2.98

%

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal

income tax rate of 21%.

 

 

(2) Nonaccruing loans are included in the daily average loan amounts outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

September 2022

 

Nine Months Ended

September 2021

Selected Average Balances and Yields:

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

ASSETS:

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under agreements to resell and other short-term investments

 

$

1,887,158

 

 

$

14,004

 

0.99

%

 

$

3,012,429

 

 

$

6,198

 

0.28

%

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,540,767

 

 

 

71,212

 

2.09

%

 

 

3,085,050

 

 

 

40,371

 

1.74

%

 

Tax-exempt

 

 

421,440

 

 

 

8,266

 

2.62

%

 

 

337,590

 

 

 

6,639

 

2.62

%

 

Total securities

 

 

4,962,207

 

 

 

79,478

 

2.14

%

 

 

3,422,640

 

 

 

47,010

 

1.83

%

 

Loans and loans held for sale, net of unearned income (2)

 

 

19,068,898

 

 

 

604,085

 

4.23

%

 

 

17,742,054

 

 

 

549,896

 

4.14

%

 

Allowance for loan losses

 

 

(214,813

)

 

 

 

 

 

 

(228,163

)

 

 

 

 

 

Net loans and loans held for sale

 

 

18,854,085

 

 

 

 

4.28

%

 

 

17,513,891

 

 

 

 

4.20

%

 

Total earning assets

 

 

25,703,450

 

 

$

697,567

 

3.63

%

 

 

23,948,960

 

 

$

603,104

 

3.37

%

 

Other assets

 

 

3,358,118

 

 

 

 

 

 

 

3,032,927

 

 

 

 

 

 

TOTAL ASSETS

 

$

29,061,568

 

 

 

 

 

 

$

26,981,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

14,089,933

 

 

$

35,972

 

0.34

%

 

$

13,255,751

 

 

$

32,800

 

0.33

%

 

Short-term borrowings

 

 

136,014

 

 

 

911

 

0.90

%

 

 

134,092

 

 

 

527

 

0.53

%

 

Long-term borrowings

 

 

841,693

 

 

 

10,339

 

1.64

%

 

 

820,426

 

 

 

7,540

 

1.23

%

 

Total interest-bearing liabilities

 

 

15,067,640

 

 

 

47,222

 

0.42

%

 

 

14,210,269

 

 

 

40,867

 

0.38

%

 

Noninterest-bearing deposits

 

 

9,082,869

 

 

 

 

 

 

 

8,147,540

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

275,201

 

 

 

 

 

 

 

234,991

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,425,710

 

 

 

 

 

 

 

22,592,800

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,635,858

 

 

 

 

 

 

 

4,389,087

 

 

 

 

 

 

TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY

 

$

29,061,568

 

 

 

 

 

 

$

26,981,887

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

650,345

 

 

 

 

 

$

562,237

 

 

 

INTEREST RATE SPREAD

 

 

 

 

 

3.21

%

 

 

 

 

 

2.99

%

 

NET INTEREST MARGIN

 

 

 

 

 

3.38

%

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal

income tax rate of 21%.

 

(2) Nonaccruing loans are included in the daily average loan amounts outstanding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September

 

September

 

June

 

March

 

September

 

September

 

Selected Financial Ratios:

 

2022

 

2021

 

2022

 

2022

 

2022

 

2021

 

Return on Average Assets

 

 

1.41

%

 

 

1.33

%

 

 

1.32

%

 

 

1.13

%

 

 

1.29

%

 

 

1.46

%

 

Return on Average Shareholders’ Equity

 

 

8.96

%

 

 

8.23

%

 

 

8.33

%

 

 

6.96

%

 

 

8.07

%

 

 

8.95

%

 

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

 

 

15.46

%

 

 

14.03

%

 

 

14.23

%

 

 

11.63

%

 

 

13.73

%

 

 

15.36

%

 

Efficiency Ratio

 

 

50.19

%

 

 

56.87

%

 

 

54.61

%

 

 

58.59

%

 

 

54.27

%

 

 

54.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

102,585

 

 

$

92,152

 

 

$

95,613

 

 

$

81,664

 

 

$

279,862

 

 

$

293,886

 

 

(b) Number of Days

 

 

92

 

 

 

92

 

 

 

91

 

 

 

90

 

 

 

273

 

 

 

273

 

 

Average Total Shareholders' Equity (GAAP)

 

$

4,542,100

 

 

$

4,440,107

 

 

$

4,606,186

 

 

$

4,759,780

 

 

$

4,635,858

 

 

$

4,389,087

 

 

Less: Average Total Intangibles

 

 

(1,910,054

)

 

 

(1,833,449

)

 

 

(1,911,705

)

 

 

(1,911,125

)

 

 

(1,910,957

)

 

 

(1,831,364

)

 

(c) Average Tangible Equity (non-GAAP)

 

$

2,632,046

 

 

$

2,606,658

 

 

$

2,694,481

 

 

$

2,848,655

 

 

$

2,724,901

 

 

$

2,557,723

 

 

Return on Average Tangible Equity (non-GAAP)\[(a) / (b)] x 365 / (c)

 

 

15.46

%

 

 

14.03

%

 

 

14.23

%

 

 

11.63

%

 

 

13.73

%

 

 

15.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

September 30
2022

 

December 31
2021

 

September 30
2021

 

June 30
2022

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

 

 

86.16

%

 

 

77.19

%

 

 

76.73

%

 

 

82.38

%

 

Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income

 

 

 

 

 

 

1.11

%

 

 

1.20

%

 

 

1.26

%

 

 

1.13

%

 

Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income

 

 

 

 

 

 

1.32

%

 

 

1.37

%

 

 

1.41

%

 

 

1.35

%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

 

 

0.14

%

 

 

0.20

%

 

 

0.23

%

 

 

0.15

%

 

90-Day Past Due Loans/ Loans & Leases, net of unearned income

 

 

 

 

 

 

0.09

%

 

 

0.10

%

 

 

0.09

%

 

 

0.09

%

 

Non-performing Loans/ Loans & Leases, net of unearned income

 

 

 

 

 

 

0.35

%

 

 

0.50

%

 

 

0.54

%

 

 

0.37

%

 

Non-performing Assets/ Total Assets

 

 

 

 

 

 

0.28

%

 

 

0.36

%

 

 

0.39

%

 

 

0.29

%

 

Primary Capital Ratio

 

 

 

 

 

 

16.03

%

 

 

16.79

%

 

 

16.82

%

 

 

16.34

%

 

Shareholders' Equity Ratio

 

 

 

 

 

 

15.29

%

 

 

16.09

%

 

 

16.11

%

 

 

15.59

%

 

Price / Book Ratio

 

 

 

 

 

 

1.08

 

x

 

1.05

 

x

 

1.06

 

x

 

1.05

 

x

Price / Earnings Ratio

 

 

 

 

 

 

11.75

 

x

 

12.82

 

x

 

12.76

 

x

 

12.37

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September

 

September

 

June

 

March

 

September

 

September

Mortgage Banking Segment Data:

 

2022

 

2021

 

2022

 

2022

 

2022

 

2021

Applications

 

$

785,529

 

 

$

1,893,870

 

 

$

1,159,102

 

 

$

1,696,504

 

 

$

3,641,135

 

 

$

6,554,142

 

Loans originated

 

 

552,487

 

 

 

1,385,871

 

 

 

955,152

 

 

 

1,006,363

 

 

 

2,514,002

 

 

 

4,954,618

 

Loans sold

 

$

564,267

 

 

$

1,470,928

 

 

$

1,072,623

 

 

$

1,170,124

 

 

$

2,807,014

 

 

$

5,166,584

 

Purchase money % of loans closed

 

 

86

%

 

 

69

%

 

 

86

%

 

 

73

%

 

 

81

%

 

 

59

%

Realized gain on sales and fees as a % of loans sold

 

 

2.13

%

 

 

3.00

%

 

 

2.40

%

 

 

2.98

%

 

 

2.49

%

 

 

3.37

%

Net interest income

 

$

2,758

 

 

$

2,367

 

 

$

2,870

 

 

$

2,317

 

 

$

7,945

 

 

$

7,888

 

Other income

 

 

13,749

 

 

 

45,023

 

 

 

21,468

 

 

 

23,397

 

 

 

58,614

 

 

 

152,295

 

Other expense

 

 

20,662

 

 

 

31,787

 

 

 

25,776

 

 

 

25,448

 

 

 

71,886

 

 

 

109,361

 

Income taxes

 

 

(820

)

 

 

3,179

 

 

 

(285

)

 

 

57

 

 

 

(1,048

)

 

 

10,399

 

Net (loss) income

 

$

(3,335

)

 

$

12,424

 

 

$

(1,153

)

 

$

209

 

 

$

(4,279

)

 

$

40,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

June 30

 

March 31

Period End Mortgage Banking Segment Data:

 

 

 

2022

 

2021

 

2021

 

2022

 

2022

Locked pipeline

 

 

 

$

131,846

 

 

$

448,889

 

 

$

648,706

 

 

$

206,246

 

 

$

412,809

 

Balance of loans serviced

 

 

 

$

3,459,781

 

 

$

3,698,998

 

 

$

3,723,206

 

 

$

3,534,607

 

 

$

3,623,207

 

Number of loans serviced

 

 

 

 

23,859

 

 

 

25,198

 

 

 

25,583

 

 

 

24,226

 

 

 

24,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

June 30

 

March 31

Asset Quality Data:

 

 

 

2022

 

2021

 

2021

 

2022

 

2022

EOP Non-Accrual Loans

 

 

 

$

28,244

 

 

$

36,028

 

 

$

37,689

 

 

$

28,386

 

 

$

34,093

 

EOP 90-Day Past Due Loans

 

 

 

 

18,254

 

 

 

18,879

 

 

 

14,827

 

 

 

16,443

 

 

 

15,179

 

EOP Restructured Loans (1)

 

 

 

 

23,155

 

 

 

35,856

 

 

 

37,752

 

 

 

25,504

 

 

 

30,582

 

Total EOP Non-performing Loans

 

 

 

$

69,653

 

 

$

90,763

 

 

$

90,268

 

 

$

70,333

 

 

$

79,854

 

EOP Other Real Estate Owned

 

 

 

 

10,779

 

 

 

14,823

 

 

 

16,696

 

 

 

13,847

 

 

 

13,641

 

Total EOP Non-performing Assets

 

 

 

$

80,432

 

 

$

105,586

 

 

$

106,964

 

 

$

84,180

 

 

$

93,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September

 

September

 

June

 

March

 

September

 

September

Allowance for Loan & Lease Losses:

 

2022

 

2021

 

2022

 

2022

 

2022

 

2021

Beginning Balance

 

$

213,729

 

 

$

217,545

 

 

$

214,594

 

 

$

216,016

 

 

$

216,016

 

 

$

235,830

 

Gross Charge-offs

 

 

(3,087

)

 

 

(2,004

)

 

 

(2,119

)

 

 

(1,476

)

 

 

(6,682

)

 

 

(15,092

)

Recoveries

 

 

1,299

 

 

 

3,173

 

 

 

3,060

 

 

 

3,456

 

 

 

7,815

 

 

 

6,498

 

Net (Charge-offs) Recoveries

 

 

(1,788

)

 

 

1,169

 

 

 

941

 

 

 

1,980

 

 

 

1,133

 

 

 

(8,594

)

Provision for Loan & Lease Losses

 

 

7,670

 

 

 

(7,823

)

 

 

(1,806

)

 

 

(3,402

)

 

 

2,462

 

 

 

(16,345

)

Ending Balance

 

$

219,611

 

 

$

210,891

 

 

$

213,729

 

 

$

214,594

 

 

$

219,611

 

 

$

210,891

 

Reserve for lending-related commitments

 

 

39,698

 

 

 

25,191

 

 

 

42,579

 

 

 

36,679

 

 

 

39,698

 

 

 

25,191

 

Allowance for Credit Losses (2)

 

$

259,309

 

 

$

236,082

 

 

$

256,308

 

 

$

251,273

 

 

$

259,309

 

 

$

236,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

 

 

(1) Restructured loans with an aggregate balance of $10,336, $24,662, $22,421, $11,298 and $13,568 at September 30, 2022, September 30, 2021, December 31, 2021, June 30, 2022 and March 31, 2022 respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $2,941, $102 and $3,162 at September 30, 2022, December 31, 2021 and June 30, 2022, respectively, were 90 days past due, but not included in "EOP Non-Accrual Loans" above.

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

 

Contacts

W. Mark Tatterson
Chief Financial Officer
(800) 445-1347 ext. 8716

Contacts

W. Mark Tatterson
Chief Financial Officer
(800) 445-1347 ext. 8716