Company Announcements

United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2022

WASHINGTON & CHARLESTON, W.V.--(BUSINESS WIRE)--Jul. 28, 2022-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2022 of $95.6 million, or $0.71 per diluted share, as compared to earnings of $81.7 million, or $0.60 per diluted share, for the first quarter of 2022. The quarter was highlighted by continued loan growth, net interest margin expansion, and strong credit quality metrics.

Annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, for the second quarter and first half of 2022 was 15% and 13%, respectively. Second quarter 2022 net interest margin of 3.38% increased 39 basis points from the first quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.37% at June 30, 2022.

Second quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.32%, 8.33% and 14.23%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.13%, 6.96% and 11.63%, respectively, for the first quarter of 2022.

“During the second quarter, we continued our strong momentum from the beginning of the year and are well positioned for the second half of 2022,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We had meaningful net interest margin expansion and continue to experience promising loan growth in our markets. We remain well capitalized with solid asset quality, have sound liquidity levels, and maintain our longstanding commitments to strong risk management practices, credit underwriting discipline and meeting our customers’ needs.”

Second quarter of 2022 compared to the first quarter of 2022

Net interest income for the second quarter of 2022 increased $23.4 million, or 12%, from the first 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 second quarter of 2022 also increased $23.4 million, or 12%, from the first 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. The interest rate spread of 3.24% for the second quarter of 2022 increased 38 basis points from the first quarter of 2022 due to a 42 basis point increase in the average yield on earning assets partially offset by a 4 basis point increase in the average cost of funds. A decrease in average earning assets of $426.0 million, or 2%, from the first quarter of 2022, driven by a decrease of $1.3 billion in short-term investments, was partially offset by increases in higher yielding average net loans and loans held for sale of $489.9 million and average investment securities of $375.8 million. Acquired loan accretion income increased $1.3 million to $5.4 million for the second quarter of 2022. Net PPP loan fee income decreased $542 thousand to $3.6 million for the second quarter of 2022. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 39 basis points from the net interest margin of 2.99% for the first quarter of 2022.

The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $3.4 million for the first quarter of 2022. The net benefit in the second quarter reflects continued strong performance trends within the loan portfolio partially offset by loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2022 decreased $2.4 million, or 5%, from the first quarter of 2022. The decrease in noninterest income was primarily due to a decrease of $6.8 million 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. Income from bank-owned life insurance (“BOLI”) increased $1.9 million from the first quarter of 2022 to $4.1 million primarily due to the recognition of death benefits.

Noninterest expense for the second quarter of 2022 increased $2.0 million, or 1%, from the first quarter of 2022. The increase in noninterest expense resulted from higher amounts of certain general operating expenses including an increase in the expense for reserve for unfunded loan commitments of $662 thousand.

For the second quarter of 2022, income tax expense was $23.5 million as compared to $20.1 million for the first quarter of 2022. The increase of $3.4 million was due to higher earnings. United’s effective tax rate was 19.8% for both the second and first quarters of 2022.

Second quarter of 2022 compared to the second quarter of 2021

Earnings for the second quarter of 2022 were $95.6 million, or $0.71 per diluted share, as compared to earnings of $94.8 million, or $0.73 per diluted share, for the second quarter of 2021.

Net interest income for the second quarter of 2022 increased $28.4 million, or 15%, from the second quarter of 2021. 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 second quarter of 2022 also increased $28.4 million, or 15%, from the second 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, 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 lower acquired loan accretion income, lower PPP loan fee income and higher average interest-bearing deposit balances as a result of the Community Bankers Trust acquisition. Average earning assets for the second quarter of 2022 increased $1.7 billion, or 7%, from the second quarter of 2021 due to a $1.6 billion increase in average investment securities and a $1.2 billion increase in average net loans and loans held for sale partially offset by a $1.2 billion decrease in average short-term investments. The interest rate spread for the second quarter of 2022 increased 26 basis points from the second quarter of 2021 to 3.24% due to a 21 basis point increase in the average yield on earning assets and a 5 basis point decrease in the average cost of funds. Average interest-bearing deposits for the second quarter of 2022 increased $917.1 million, or 7%, from the second quarter of 2021; however, the yield on interest-bearing deposits decreased 5 basis points from the second quarter of 2021. Acquired loan accretion income was $5.4 million and $9.7 million for the second quarter of 2022 and 2021, respectively, a decrease of $4.3 million. Net PPP loan fee income was $3.6 million and $9.0 million for the second quarter of 2022 and 2021, respectively, a decrease of $5.4 million. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 24 basis points from the net interest margin of 3.14% for the second quarter of 2021.

The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $8.9 million for the second quarter of 2021.

Noninterest income for the second quarter of 2022 was $43.6 million, which was a decrease of $19.3 million, or 31%, from the second quarter of 2021. The decrease in noninterest income was driven by a $24.5 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. BOLI income for the second quarter of 2022 was $4.1 million, an increase of $2.5 million from the second quarter of 2021. Fees from deposit services for the second quarter of 2022 were $10.8 million, an increase of $1.4 million from the second quarter of 2021.

Noninterest expense for the second quarter of 2022 was $141.2 million, an increase of $2.2 million, or 2%, from the second quarter of 2021 primarily due to a $5.0 million increase in the expense for reserve for unfunded loan commitments and a $3.8 million increase in other noninterest expense from higher amounts of certain general operating expenses. These increases in noninterest expense were partially offset by a $5.9 million decrease in employee compensation primarily due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition.

For the second quarter of 2022, income tax expense was $23.5 million as compared to $24.5 million for the second quarter of 2021. The decrease of $924 thousand was primarily due to a lower effective tax rate. United’s effective tax rate was 19.8% for the second quarter of 2022 and 20.5% for the second quarter of 2021.

First half of 2022 compared to the first half of 2021

Earnings for the first six months of 2022 were $177.3 million, or $1.30 per diluted share, as compared to earnings of $201.7 million, or $1.56 per diluted share, for the first six months of 2021.

Net interest income for the first six months of 2022 increased $28.9 million, or 8%, from the first six months of 2021. 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 first six months of 2022 increased $29.0 million, or 8%, from the first six months of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets from the Community Bankers Trust acquisition and organic growth, the impact of rising market interest rates on earning assets and due to lower interest expense on deposits. These increases were partially offset by lower PPP loan fee income and lower acquired loan accretion income. Average earning assets for the first six months of 2022 increased $2.1 billion, or 9%, from the first six months of 2021 due to a $1.6 billion increase in average investment securities and a $763.8 million increase in average net loans and loans held for sale partially offset by a $219.9 million decrease in average short-term investments. The interest rate spread for the first six months of 2022 decreased 1 basis point from the first six months of 2021 due to a 9 basis point decrease in the average yield on earning assets partially offset by an 8 basis point decrease in the average cost of funds. Net PPP loan fee income was $7.7 million and $20.3 million for the first half of 2022 and 2021, respectively, a decrease of $12.6 million. Acquired loan accretion income was $9.5 million and $19.5 million for the first half of 2022 and 2021, respectively, a decrease of $10.0 million. The net interest margin of 3.18% for the first six months of 2022 was a decrease of 4 basis points from the net interest margin of 3.22% for the first six months of 2021.

The provision for credit losses was a net benefit of $5.2 million for the first six months 2022 as compared to a net benefit of $8.7 million for the first six months of 2021.

Noninterest income for the first six months of 2022 was $89.6 million, which was a decrease of $65.8 million, or 42%, from the first six months of 2021. The decrease was driven by a $70.7 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. BOLI income for the first six months of 2022 was $6.3 million, an increase of $3.3 million from the first six months of 2021. Fees from deposit services for the first six months of 2022 were $21.0 million, an increase of $2.7 million from the first six months of 2021.

Noninterest expense for the first six months of 2022 was $280.3 million, a decrease of $7.6 million, or 3%, from the first six months of 2021 driven by decreases in employee compensation of $15.7 million, employee benefits of $5.0 million, real estate owned (“OREO”) expense of $3.8 million and mortgage loan servicing expense and impairment of $3.4 million partially offset by an increase in the expense for reserve for unfunded loan commitments of $9.5 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 decrease in OREO expense was primarily due to fewer declines in the fair value of OREO properties. The decrease in mortgage loan servicing expense and impairment was due to lower amortization of mortgage servicing rights (“MSR”) and a recovery of the MSR valuation allowance of $883 thousand during the first six months of 2022 as compared to a MSR impairment of $250 thousand during the first six months of 2021.

For the first six months of 2022, income tax expense was $43.6 million as compared to $52.0 million for the first six months of 2021 primarily due to lower earnings and a lower effective tax rate. United’s effective tax rate was 19.8% for the first six months of 2022 and 20.5% for the first six months of 2021.

Credit Quality

United’s asset quality continues to be sound. At June 30, 2022, non-performing loans were $70.3 million, or 0.37% 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 $84.2 million, including OREO of $13.8 million at June 30, 2022, represented 0.29% 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 June 30, 2022, the allowance for loan & lease losses was $213.7 million, or 1.13% 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 recoveries were $941 thousand and $2.9 million for the second quarter and first half of 2022, respectively. Net charge-offs were $5.2 million and $9.8 million for the second quarter and first half of 2021, respectively. Annualized net recoveries as a percentage of average loans & leases, net of unearned income were (0.02)% and (0.03)% for the second quarter and first half of 2022, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.10% and 0.15% for the for the second quarter and first half of 2021, respectively.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.8% at June 30, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.7%, 12.7% and 10.5%, respectively. The June 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 half of 2022 and 2021, United repurchased, under a previously announced stock repurchase plan, shares of its common stock. During the second quarter of 2022, United repurchased approximately 1.5 million shares of its common stock at an average price per share of $34.47. United did not repurchase any shares of its common stock during the second quarter of 2021. During the first half 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 half 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 June 30, 2022, United had consolidated assets of approximately $28.8 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 June 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 June 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

 

Six Months Ended

 

 

June

 

June

 

March

 

June

 

June

EARNINGS SUMMARY:

2022

 

2021

 

2022

 

2022

 

2021

Interest income

 

$

227,771

 

 

$

200,186

 

 

$

202,795

 

 

$

430,566

 

 

$

405,843

 

Interest expense

 

 

12,868

 

 

 

13,669

 

 

 

11,293

 

 

 

24,161

 

 

 

28,366

 

Net interest income

 

 

214,903

 

 

 

186,517

 

 

 

191,502

 

 

 

406,405

 

 

 

377,477

 

Provision for credit losses

 

 

(1,807

)

 

 

(8,879

)

 

 

(3,410

)

 

 

(5,217

)

 

 

(8,736

)

Noninterest income

 

 

43,608

 

 

 

62,864

 

 

 

46,025

 

 

 

89,633

 

 

 

155,444

 

Noninterest expense

 

 

141,174

 

 

 

138,969

 

 

 

139,175

 

 

 

280,349

 

 

 

287,903

 

Income before income taxes

 

 

119,144

 

 

 

119,291

 

 

 

101,762

 

 

 

220,906

 

 

 

253,754

 

Income taxes

 

 

23,531

 

 

 

24,455

 

 

 

20,098

 

 

 

43,629

 

 

 

52,020

 

Net income

 

$

95,613

 

 

$

94,836

 

 

$

81,664

 

 

$

177,277

 

 

$

201,734

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.73

 

 

$

0.60

 

 

$

1.31

 

 

$

1.56

 

Diluted

 

 

0.71

 

 

 

0.73

 

 

 

0.60

 

 

 

1.30

 

 

 

1.56

 

Cash dividends

 

$

0.36

 

 

$

0.35

 

 

 

0.36

 

 

 

0.72

 

 

 

0.70

 

Book value

 

 

 

 

 

 

33.77

 

 

 

33.34

 

 

 

34.01

 

Closing market price

 

 

 

 

 

$

34.88

 

 

$

35.07

 

 

$

36.50

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

 

 

136,068,439

 

 

 

134,580,646

 

 

 

129,203,593

 

Weighted average-basic

 

 

134,623,061

 

 

 

128,750,851

 

 

 

136,058,328

 

 

 

135,336,729

 

 

 

128,693,616

 

Weighted average-diluted

 

 

134,863,650

 

 

 

129,033,988

 

 

 

136,435,229

 

 

 

135,634,398

 

 

 

128,946,280

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.32

%

 

 

1.41

%

 

 

1.13

%

 

 

1.23

%

 

 

1.52

%

Return on average shareholders’ equity

 

 

8.33

%

 

 

8.69

%

 

 

6.96

%

 

 

7.63

%

 

 

9.32

%

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

 

 

14.23

%

 

 

14.95

%

 

 

11.63

%

 

 

12.90

%

 

 

16.06

%

Average equity to average assets

 

 

15.88

%

 

 

16.21

%

 

 

16.22

%

 

 

16.05

%

 

 

16.31

%

Net interest margin

 

 

3.38

%

 

 

3.14

%

 

 

2.99

%

 

 

3.18

%

 

 

3.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

June 30

 

March 31

PERIOD END BALANCES:

2022

 

2021

 

2021

 

2022

Assets

 

 

 

$

28,777,896

 

 

$

29,328,902

 

 

$

27,190,926

 

 

$

29,365,511

 

Earning assets

 

 

 

 

25,356,669

 

 

 

26,083,089

 

 

 

24,129,532

 

 

 

25,958,745

 

Loans & leases, net of unearned income

 

 

 

 

18,970,395

 

 

 

18,023,648

 

 

 

16,888,001

 

 

 

18,392,086

 

Loans held for sale

 

 

 

 

220,689

 

 

 

504,416

 

 

 

576,827

 

 

 

340,040

 

Investment securities

 

 

 

 

5,073,618

 

 

 

4,295,749

 

 

 

3,511,501

 

 

 

5,020,712

 

Total deposits

 

 

 

 

23,026,649

 

 

 

23,350,263

 

 

 

21,567,391

 

 

 

23,474,301

 

Shareholders’ equity

 

 

 

 

4,487,050

 

 

 

4,718,628

 

 

 

4,393,713

 

 

 

4,595,140

 

 

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

 

Six Months Ended

 

 

June

 

June

 

March

 

June

 

June

 

 

2022

 

2021

 

2022

 

2022

 

2021

Interest & Loan Fees Income (GAAP)

 

$

227,771

 

 

$

200,186

 

 

$

202,795

 

 

$

430,566

 

 

$

405,843

 

Tax equivalent adjustment

 

 

1,104

 

 

 

1,075

 

 

 

1,109

 

 

 

2,213

 

 

 

2,122

 

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

 

 

228,875

 

 

 

201,261

 

 

 

203,904

 

 

 

432,779

 

 

 

407,965

 

Interest Expense

 

 

12,868

 

 

 

13,669

 

 

 

11,293

 

 

 

24,161

 

 

 

28,366

 

Net Interest Income (FTE) (non-GAAP)

 

 

216,007

 

 

 

187,592

 

 

 

192,611

 

 

 

408,618

 

 

 

379,599

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

 

(1,807

)

 

 

(8,879

)

 

 

(3,410

)

 

 

(5,217

)

 

 

(8,736

)

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

 

4,294

 

 

 

4,193

 

 

 

4,127

 

 

 

8,421

 

 

 

7,956

 

Fees from brokerage services

 

 

4,115

 

 

 

3,654

 

 

 

4,552

 

 

 

8,667

 

 

 

7,977

 

Fees from deposit services

 

 

10,830

 

 

 

9,396

 

 

 

10,148

 

 

 

20,978

 

 

 

18,292

 

Bankcard fees and merchant discounts

 

 

1,671

 

 

 

1,368

 

 

 

1,379

 

 

 

3,050

 

 

 

2,432

 

Other charges, commissions, and fees

 

 

785

 

 

 

775

 

 

 

759

 

 

 

1,544

 

 

 

1,534

 

Income from bank-owned life insurance

 

 

4,120

 

 

 

1,658

 

 

 

2,194

 

 

 

6,314

 

 

 

3,061

 

Income from mortgage banking activities

 

 

12,445

 

 

 

36,943

 

 

 

19,203

 

 

 

31,648

 

 

 

102,338

 

Mortgage loan servicing income

 

 

2,328

 

 

 

2,386

 

 

 

2,387

 

 

 

4,715

 

 

 

4,741

 

Net gains (losses) on investment securities

 

 

1,182

 

 

 

24

 

 

 

(251

)

 

 

931

 

 

 

2,633

 

Other noninterest income

 

 

1,838

 

 

 

2,467

 

 

 

1,527

 

 

 

3,365

 

 

 

4,480

 

Total Noninterest Income

 

 

43,608

 

 

 

62,864

 

 

 

46,025

 

 

 

89,633

 

 

 

155,444

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

 

62,632

 

 

 

68,557

 

 

 

62,621

 

 

 

125,253

 

 

 

140,969

 

Employee benefits

 

 

12,047

 

 

 

14,470

 

 

 

12,851

 

 

 

24,898

 

 

 

29,920

 

Net occupancy

 

 

11,206

 

 

 

10,101

 

 

 

11,187

 

 

 

22,393

 

 

 

21,042

 

Data processing

 

 

7,549

 

 

 

6,956

 

 

 

7,371

 

 

 

14,920

 

 

 

13,982

 

Amortization of intangibles

 

 

1,379

 

 

 

1,467

 

 

 

1,379

 

 

 

2,758

 

 

 

2,933

 

OREO expense

 

 

46

 

 

 

496

 

 

 

182

 

 

 

228

 

 

 

4,055

 

Net (gains) on the sale of OREO properties

 

 

(454

)

 

 

(106

)

 

 

(33

)

 

 

(487

)

 

 

(33

)

Equipment expense

 

 

7,310

 

 

 

5,830

 

 

 

7,335

 

 

 

14,645

 

 

 

11,874

 

FDIC insurance expense

 

 

3,004

 

 

 

1,800

 

 

 

2,673

 

 

 

5,677

 

 

 

3,800

 

Mortgage loan servicing expense and impairment

 

 

1,783

 

 

 

3,599

 

 

 

1,643

 

 

 

3,426

 

 

 

6,776

 

Expense for reserve for unfunded loan commitments

 

 

5,899

 

 

 

873

 

 

 

5,237

 

 

 

11,136

 

 

 

1,646

 

Other noninterest expense

 

 

28,773

 

 

 

24,926

 

 

 

26,729

 

 

 

55,502

 

 

 

50,939

 

Total Noninterest Expense

 

 

141,174

 

 

 

138,969

 

 

 

139,175

 

 

 

280,349

 

 

 

287,903

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

120,248

 

 

 

120,366

 

 

 

102,871

 

 

 

223,119

 

 

 

255,876

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

1,104

 

 

 

1,075

 

 

 

1,109

 

 

 

2,213

 

 

 

2,122

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

 

119,144

 

 

 

119,291

 

 

 

101,762

 

 

 

220,906

 

 

 

253,754

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

 

23,531

 

 

 

24,455

 

 

 

20,098

 

 

 

43,629

 

 

 

52,020

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

95,613

 

 

$

94,836

 

 

$

81,664

 

 

$

177,277

 

 

$

201,734

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

 

19.75

%

 

 

20.50

%

 

 

19.75

%

 

 

19.75

%

 

 

20.50

%

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 2022

 

June 2021

 

June 30

 

December 31

 

June 30

 

 

Q-T-D Average

 

Q-T-D Average

 

2022

 

2021

 

2021

 

 

 

 

 

Cash & Cash Equivalents

 

$

2,105,669

 

 

$

3,203,664

 

 

$

1,658,486

 

 

$

3,758,170

 

 

$

3,677,396

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

4,824,655

 

 

 

3,234,581

 

 

 

4,812,704

 

 

 

4,042,699

 

 

 

3,277,074

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

4,824,655

 

 

 

3,234,581

 

 

 

4,812,704

 

 

 

4,042,699

 

 

 

3,277,074

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(19

)

 

 

(23

)

 

 

(18

)

 

 

(19

)

 

 

(31

)

Net held to maturity securities

 

 

1,001

 

 

 

997

 

 

 

1,002

 

 

 

1,001

 

 

 

989

 

Equity Securities

 

 

13,204

 

 

 

11,454

 

 

 

13,513

 

 

 

12,404

 

 

 

11,507

 

Other Investment Securities

 

 

246,312

 

 

 

221,093

 

 

 

246,399

 

 

 

239,645

 

 

 

221,931

 

Total Securities

 

 

5,085,172

 

 

 

3,468,125

 

 

 

5,073,618

 

 

 

4,295,749

 

 

 

3,511,501

 

Total Cash and Securities

 

 

7,190,841

 

 

 

6,671,789

 

 

 

6,732,104

 

 

 

8,053,919

 

 

 

7,188,897

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

263,039

 

 

 

618,306

 

 

 

220,689

 

 

 

504,416

 

 

 

576,827

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans & Leases

 

 

14,210,173

 

 

 

13,068,138

 

 

 

14,136,614

 

 

 

13,809,735

 

 

 

12,723,654

 

Mortgage Loans

 

 

3,227,395

 

 

 

2,950,453

 

 

 

3,481,064

 

 

 

3,008,410

 

 

 

2,946,352

 

Consumer Loans

 

 

1,344,390

 

 

 

1,224,973

 

 

 

1,376,447

 

 

 

1,233,162

 

 

 

1,251,646

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

18,781,958

 

 

 

17,243,564

 

 

 

18,994,125

 

 

 

18,051,307

 

 

 

16,921,652

 

Unearned income

 

 

(26,280

)

 

 

(36,437

)

 

 

(23,730

)

 

 

(27,659

)

 

 

(33,651

)

Loans & Leases, net of unearned income

 

 

18,755,678

 

 

 

17,207,127

 

 

 

18,970,395

 

 

 

18,023,648

 

 

 

16,888,001

 

Allowance for Loan & Lease Losses

 

 

(214,624

)

 

 

(231,422

)

 

 

(213,729

)

 

 

(216,016

)

 

 

(217,545

)

Net Loans

 

 

18,541,054

 

 

 

16,975,705

 

 

 

18,756,666

 

 

 

17,807,632

 

 

 

16,670,456

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Servicing Rights

 

 

22,644

 

 

 

22,385

 

 

 

22,593

 

 

 

23,144

 

 

 

22,540

 

Goodwill

 

 

1,889,186

 

 

 

1,810,045

 

 

 

1,888,889

 

 

 

1,886,494

 

 

 

1,810,040

 

Other Intangibles

 

 

22,519

 

 

 

24,875

 

 

 

21,655

 

 

 

24,413

 

 

 

23,990

 

Operating Lease Right-of-Use Asset

 

 

76,821

 

 

 

68,191

 

 

 

75,143

 

 

 

81,942

 

 

 

66,635

 

Other Real Estate Owned

 

 

13,943

 

 

 

18,740

 

 

 

13,847

 

 

 

14,823

 

 

 

18,474

 

Bank Owned Life Insurance

 

 

478,163

 

 

 

390,184

 

 

 

473,470

 

 

 

478,067

 

 

 

408,973

 

Other Assets

 

 

511,238

 

 

 

405,738

 

 

 

572,840

 

 

 

454,052

 

 

 

404,094

 

Total Assets

 

$

29,009,448

 

 

$

27,005,958

 

 

$

28,777,896

 

 

$

29,328,902

 

 

$

27,190,926

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

25,626,411

 

 

$

23,967,740

 

 

$

25,356,669

 

 

$

26,083,089

 

 

$

24,129,532

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

14,136,707

 

 

$

13,219,572

 

 

$

13,995,710

 

 

$

14,369,716

 

 

$

13,283,937

 

Noninterest-bearing Deposits

 

 

9,038,947

 

 

 

8,227,147

 

 

 

9,030,939

 

 

 

8,980,547

 

 

 

8,283,454

 

Total Deposits

 

 

23,175,654

 

 

 

21,446,719

 

 

 

23,026,649

 

 

 

23,350,263

 

 

 

21,567,391

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

136,025

 

 

 

136,801

 

 

 

128,242

 

 

 

128,844

 

 

 

127,745

 

Long-term Borrowings

 

 

811,924

 

 

 

814,151

 

 

 

796,961

 

 

 

817,394

 

 

 

814,022

 

Total Borrowings

 

 

947,949

 

 

 

950,952

 

 

 

925,203

 

 

 

946,238

 

 

 

941,767

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

81,450

 

 

 

72,254

 

 

 

79,787

 

 

 

86,703

 

 

 

70,546

 

Other Liabilities

 

 

198,209

 

 

 

157,135

 

 

 

259,207

 

 

 

227,070

 

 

 

217,509

 

Total Liabilities

 

 

24,403,262

 

 

 

22,627,060

 

 

 

24,290,846

 

 

 

24,610,274

 

 

 

22,797,213

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,606,186

 

 

 

4,378,898

 

 

 

4,487,050

 

 

 

4,718,628

 

 

 

4,393,713

 

Total Shareholders' Equity

 

 

4,606,186

 

 

 

4,378,898

 

 

 

4,487,050

 

 

 

4,718,628

 

 

 

4,393,713

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

29,009,448

 

 

$

27,005,958

 

 

$

28,777,896

 

 

$

29,328,902

 

 

$

27,190,926

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

15,084,656

 

 

$

14,170,524

 

 

$

14,920,913

 

 

$

15,315,954

 

 

$

14,225,704

 

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:

 

2022

 

2021

 

2022

 

2022

 

2021

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.73

 

 

$

0.60

 

 

$

1.31

 

 

$

1.56

 

Diluted

 

$

0.71

 

 

$

0.73

 

 

$

0.60

 

 

$

1.30

 

 

$

1.56

 

Common Dividend Declared Per Share

 

$

0.36

 

 

$

0.35

 

 

$

0.36

 

 

$

0.72

 

 

$

0.70

 

High Common Stock Price

 

$

37.81

 

 

$

42.50

 

 

$

39.80

 

 

$

39.80

 

 

$

42.50

 

Low Common Stock Price

 

$

33.11

 

 

$

36.19

 

 

$

33.58

 

 

$

33.11

 

 

$

31.57

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

Basic

 

 

134,623,061

 

 

 

128,750,851

 

 

 

136,058,328

 

 

 

135,336,729

 

 

 

128,693,616

 

Diluted

 

 

134,863,650

 

 

 

129,033,988

 

 

 

136,435,229

 

 

 

135,634,398

 

 

 

128,946,280

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

 

$

48,544

 

 

$

45,268

 

 

$

49,266

 

 

$

97,810

 

 

$

90,522

 

Dividend Payout Ratio

 

 

50.77

%

 

 

47.73

%

 

 

60.33

%

 

 

55.17

%

 

 

44.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

March 31

EOP Share Data:

 

 

 

 

 

2022

 

2021

 

2022

Book Value Per Share

 

 

 

 

 

$

33.34

 

 

$

34.01

 

 

$

33.77

 

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

 

 

 

 

 

$

19.14

 

 

$

19.81

 

 

$

19.72

 

52-week High Common Stock Price

 

 

 

 

 

$

39.80

 

 

$

42.50

 

 

$

42.50

 

Date

 

 

 

 

 

01/13/22

 

05/18/21

 

05/18/21

52-week Low Common Stock Price

 

 

 

 

 

$

31.74

 

 

$

20.57

 

 

$

31.74

 

Date

 

 

 

 

 

09/20/21

 

09/25/20

 

9/20/21

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

134,580,646

 

 

 

129,203,593

 

 

 

136,068,439

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

 

2,988

 

 

 

3,012

 

 

 

3,090

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

 

$

4,487,050

 

 

$

4,393,713

 

 

$

4,595,140

 

Less: Total Intangibles

 

 

 

 

 

 

(1,910,544

)

 

 

(1,834,030

)

 

 

(1,912,278

)

Tangible Equity (non-GAAP)

 

 

 

 

 

$

2,576,506

 

 

$

2,559,683

 

 

$

2,682,862

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

 

134,580,646

 

 

 

129,203,593

 

 

 

136,068,439

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

 

$

19.14

 

 

$

19.81

 

 

$

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

 

Three Months Ended

 

Three Months Ended

June 2022

 

June 2021

 

March 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

 

$

1,737,146

 

 

$

4,841

 

1.12

%

 

$

2,905,604

 

 

$

1,757

 

0.24

%

 

$

3,028,826

 

 

$

2,329

 

0.31

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,665,307

 

 

 

24,558

 

2.11

%

 

 

3,114,902

 

 

 

13,846

 

1.78

%

 

 

4,264,820

 

 

 

17,505

 

1.64

%

Tax-exempt

 

 

419,865

 

 

 

2,794

 

2.66

%

 

 

353,223

 

 

 

2,331

 

2.64

%

 

 

444,542

 

 

 

2,688

 

2.42

%

Total securities

 

 

5,085,172

 

 

 

27,352

 

2.15

%

 

 

3,468,125

 

 

 

16,177

 

1.87

%

 

 

4,709,362

 

 

 

20,193

 

1.72

%

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

 

 

19,018,717

 

 

 

196,682

 

4.15

%

 

 

17,825,433

 

 

 

183,327

 

4.12

%

 

 

18,530,232

 

 

 

181,382

 

3.96

%

Allowance for loan losses

 

 

(214,624

)

 

 

 

 

 

 

(231,422

)

 

 

 

 

 

 

(216,016

)

 

 

 

 

Net loans and loans held for sale

 

 

18,804,093

 

 

 

 

4.19

%

 

 

17,594,011

 

 

 

 

4.18

%

 

 

18,314,216

 

 

 

 

4.01

%

Total earning assets

 

 

25,626,411

 

 

$

228,875

 

3.58

%

 

 

23,967,740

 

 

$

201,261

 

3.37

%

 

 

26,052,404

 

 

$

203,904

 

3.16

%

Other assets

 

 

3,383,037

 

 

 

 

 

 

 

3,038,218

 

 

 

 

 

 

 

3,292,118

 

 

 

 

 

TOTAL ASSETS

 

$

29,009,448

 

 

 

 

 

 

$

27,005,958

 

 

 

 

 

 

$

29,344,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

14,136,707

 

 

$

9,751

 

0.28

%

 

$

13,219,572

 

 

$

11,012

 

0.33

%

 

$

14,383,839

 

 

$

8,561

 

0.24

%

Short-term borrowings

 

 

136,025

 

 

 

237

 

0.70

%

 

 

136,801

 

 

 

182

 

0.54

%

 

 

133,987

 

 

 

181

 

0.55

%

Long-term borrowings

 

 

811,924

 

 

 

2,880

 

1.42

%

 

 

814,151

 

 

 

2,475

 

1.22

%

 

 

817,363

 

 

 

2,551

 

1.27

%

Total interest-bearing liabilities

 

 

15,084,656

 

 

 

12,868

 

0.34

%

 

 

14,170,524

 

 

 

13,669

 

0.39

%

 

 

15,335,189

 

 

 

11,293

 

0.30

%

Noninterest-bearing deposits

 

 

9,038,947

 

 

 

 

 

 

 

8,227,147

 

 

 

 

 

 

 

8,991,131

 

 

 

 

 

Accrued expenses and other liabilities

 

 

279,659

 

 

 

 

 

 

 

229,389

 

 

 

 

 

 

 

258,422

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,403,262

 

 

 

 

 

 

 

22,627,060

 

 

 

 

 

 

 

24,584,742

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,606,186

 

 

 

 

 

 

 

4,378,898

 

 

 

 

 

 

 

4,759,780

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,009,448

 

 

 

 

 

 

$

27,005,958

 

 

 

 

 

 

$

29,344,522

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

216,007

 

 

 

 

 

$

187,592

 

 

 

 

 

$

192,611

 

 

INTEREST RATE SPREAD

 

 

 

 

 

3.24

%

 

 

 

 

 

2.98

%

 

 

 

 

 

2.86

%

NET INTEREST MARGIN

 

 

 

 

 

3.38

%

 

 

 

 

 

3.14

%

 

 

 

 

 

2.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Six Months Ended

June 2022

June 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

 

$

2,379,418

 

 

$

7,170

 

0.61

%

 

$

2,599,276

 

 

$

3,650

 

0.28

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,466,170

 

 

 

42,063

 

1.88

%

 

 

3,018,633

 

 

 

27,372

 

1.81

%

Tax-exempt

 

 

432,135

 

 

 

5,483

 

2.54

%

 

 

324,183

 

 

 

4,312

 

2.66

%

Total securities

 

 

4,898,305

 

 

 

47,546

 

1.94

%

 

 

3,342,816

 

 

 

31,684

 

1.90

%

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

 

 

18,775,823

 

 

 

378,063

 

4.06

%

 

 

18,030,354

 

 

 

372,631

 

4.16

%

Allowance for loan losses

 

 

(215,316

)

 

 

 

 

 

 

(233,597

)

 

 

 

 

Net loans and loans held for sale

 

 

18,560,507

 

 

 

 

4.10

%

 

 

17,796,757

 

 

 

 

4.22

%

Total earning assets

 

 

25,838,230

 

 

$

432,779

 

3.37

%

 

 

23,738,849

 

 

$

407,965

 

3.46

%

Other assets

 

 

3,338,261

 

 

 

 

 

 

 

3,011,252

 

 

 

 

 

TOTAL ASSETS

 

$

29,176,491

 

 

 

 

 

 

$

26,750,101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

14,259,590

 

 

$

18,312

 

0.26

%

 

$

13,202,246

 

 

$

22,997

 

0.35

%

Short-term borrowings

 

 

135,012

 

 

 

418

 

0.62

%

 

 

139,463

 

 

 

360

 

0.52

%

Long-term borrowings

 

 

814,628

 

 

 

5,431

 

1.34

%

 

 

823,705

 

 

 

5,009

 

1.23

%

Total interest-bearing liabilities

 

 

15,209,230

 

 

 

24,161

 

0.32

%

 

 

14,165,414

 

 

 

28,366

 

0.40

%

Noninterest-bearing deposits

 

 

9,015,171

 

 

 

 

 

 

 

7,982,751

 

 

 

 

 

Accrued expenses and other liabilities

 

 

269,099

 

 

 

 

 

 

 

238,883

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,493,500

 

 

 

 

 

 

 

22,387,048

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,682,991

 

 

 

 

 

 

 

4,363,053

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,176,491

 

 

 

 

 

 

$

26,750,101

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

408,618

 

 

 

 

 

$

379,599

 

 

INTEREST RATE SPREAD

 

 

 

 

 

3.05

%

 

 

 

 

 

3.06

%

NET INTEREST MARGIN

 

 

 

 

 

3.18

%

 

 

 

 

 

3.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

Six Months Ended

 

 

 

June

 

June

 

March

 

June

 

June

 

Selected Financial Ratios:

 

2022

 

2021

 

2022

 

2022

 

2021

 

Return on Average Assets

 

 

1.32

%

 

 

1.41

%

 

 

1.13

%

 

 

1.23

%

 

 

1.52

%

 

Return on Average Shareholders’ Equity

 

 

8.33

%

 

 

8.69

%

 

 

6.96

%

 

 

7.63

%

 

 

9.32

%

 

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

 

 

14.23

%

 

 

14.95

%

 

 

11.63

%

 

 

12.90

%

 

 

16.06

%

 

Efficiency Ratio

 

 

54.61

%

 

 

55.73

%

 

 

58.59

%

 

 

56.52

%

 

 

54.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

95,613

 

 

$

94,836

 

 

$

81,664

 

 

$

177,277

 

 

$

201,734

 

 

(b) Number of Days

 

 

91

 

 

 

91

 

 

 

90

 

 

 

181

 

 

 

181

 

 

Average Total Shareholders' Equity (GAAP)

 

$

4,606,186

 

 

$

4,378,898

 

 

$

4,759,780

 

 

$

4,682,991

 

 

$

4,363,053

 

 

Less: Average Total Intangibles

 

 

(1,911,705

)

 

 

(1,834,920

)

 

 

(1,911,125

)

 

 

(1,911,416

)

 

 

(1,830,305

)

 

(c) Average Tangible Equity (non-GAAP)

 

$

2,694,481

 

 

$

2,543,978

 

 

$

2,848,655

 

 

$

2,771,575

 

 

$

2,532,748

 

 

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

365 / (c)

 

 

14.23

%

 

 

14.95

%

 

 

11.63

%

 

 

12.90

%

 

 

16.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

June 30

 

March 31

 

Selected Financial Ratios:

2022

 

2021

 

2021

 

2022

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

82.38

%

 

 

77.19

%

 

 

78.30

%

 

 

78.35

%

 

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

 

 

 

 

1.13

%

 

 

1.20

%

 

 

1.29

%

 

 

1.17

%

 

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

 

 

 

 

1.35

%

 

 

1.37

%

 

 

1.41

%

 

 

1.37

%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

0.15

%

 

 

0.20

%

 

 

0.24

%

 

 

0.19

%

 

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

 

 

 

 

0.09

%

 

 

0.10

%

 

 

0.08

%

 

 

0.08

%

 

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

 

 

 

 

0.37

%

 

 

0.50

%

 

 

0.61

%

 

 

0.43

%

 

Non-performing Assets/ Total Assets

 

 

 

 

0.29

%

 

 

0.36

%

 

 

0.45

%

 

 

0.32

%

 

Primary Capital Ratio

 

 

 

 

16.34

%

 

 

16.79

%

 

 

16.89

%

 

 

16.36

%

 

Shareholders' Equity Ratio

 

 

 

 

15.59

%

 

 

16.09

%

 

 

16.16

%

 

 

15.65

%

 

Price / Book Ratio

 

 

 

 

1.05

 

x

 

1.05

 

x

 

1.07

 

x

 

1.03

 

x

Price / Earnings Ratio

 

 

 

 

12.37

 

x

 

12.82

 

x

 

12.42

 

x

 

14.57

 

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

 

Six Months Ended

 

 

June

 

June

 

March

 

June

 

June

Mortgage Banking Segment Data:

 

2022

 

2021

 

2022

 

2022

 

2021

Applications

 

$

1,159,102

 

 

$

2,029,846

 

 

$

1,696,504

 

 

$

2,855,606

 

 

$

4,660,272

 

Loans originated

 

 

955,152

 

 

 

1,658,128

 

 

 

1,006,363

 

 

 

1,961,516

 

 

 

3,568,747

 

Loans sold

 

$

1,072,623

 

 

$

1,877,772

 

 

$

1,170,124

 

 

$

2,242,748

 

 

$

3,695,656

 

Purchase money % of loans closed

 

 

86

%

 

 

69

%

 

 

73

%

 

 

79

%

 

 

55

%

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

 

 

2.40

%

 

 

2.90

%

 

 

2.98

%

 

 

2.59

%

 

 

3.52

%

Net interest income

 

$

2,870

 

 

$

2,871

 

 

$

2,317

 

 

$

5,187

 

 

$

5,521

 

Other income

 

 

21,468

 

 

 

39,764

 

 

 

23,397

 

 

 

44,865

 

 

 

107,271

 

Other expense

 

 

25,776

 

 

 

36,390

 

 

 

25,448

 

 

 

51,224

 

 

 

77,573

 

Income taxes

 

 

(285

)

 

 

1,280

 

 

 

57

 

 

 

(228

)

 

 

7,220

 

Net (loss) income

 

$

(1,153

)

 

$

4,965

 

 

$

209

 

 

$

(944

)

 

$

27,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

December 31

 

March 31

Period End Mortgage Banking Segment Data:

 

 

 

2022

 

2021

 

2021

 

2022

Locked pipeline

 

 

 

$

206,246

 

 

$

660,258

 

 

$

448,889

 

 

$

412,809

 

Balance of loans serviced

 

 

 

$

3,534,607

 

 

$

3,674,023

 

 

$

3,698,998

 

 

$

3,623,207

 

Number of loans serviced

 

 

 

 

24,226

 

 

 

25,526

 

 

 

25,198

 

 

 

24,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

December 31

 

March 31

Asset Quality Data:

 

 

 

2022

 

2021

 

2021

 

2022

EOP Non-Accrual Loans

 

 

 

$

28,386

 

 

$

41,182

 

 

$

36,028

 

 

$

34,093

 

EOP 90-Day Past Due Loans

 

 

 

 

16,443

 

 

 

14,135

 

 

 

18,879

 

 

 

15,179

 

EOP Restructured Loans (1)

 

 

 

 

25,504

 

 

 

47,271

 

 

 

35,856

 

 

 

30,582

 

Total EOP Non-performing Loans

 

 

 

$

70,333

 

 

$

102,588

 

 

$

90,763

 

 

$

79,854

 

EOP Other Real Estate Owned

 

 

 

 

13,847

 

 

 

18,474

 

 

 

14,823

 

 

 

13,641

 

Total EOP Non-performing Assets

 

 

 

$

84,180

 

 

$

121,062

 

 

$

105,586

 

 

$

93,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June

 

June

 

March

 

June

 

June

Allowance for Loan & Lease Losses:

 

2022

 

2021

 

2022

 

2022

 

2021

Beginning Balance

 

$

214,594

 

 

$

231,582

 

 

$

216,016

 

 

$

216,016

 

 

$

235,830

 

Initial allowance for acquired PCD loans

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Gross Charge-offs

 

 

(2,119

)

 

 

(6,131

)

 

 

(1,476

)

 

 

(3,595

)

 

 

(13,088

)

Recoveries

 

 

3,060

 

 

 

910

 

 

 

3,456

 

 

 

6,516

 

 

 

3,325

 

Net Recoveries (Charge-offs)

 

 

941

 

 

 

(5,221

)

 

 

1,980

 

 

 

2,921

 

 

 

(9,763

)

Provision for Loan & Lease Losses

 

 

(1,806

)

 

 

(8,816

)

 

 

(3,402

)

 

 

(5,208

)

 

 

(8,522

)

Ending Balance

 

$

213,729

 

 

$

217,545

 

 

$

214,594

 

 

$

213,729

 

 

$

217,545

 

Reserve for lending-related commitments

 

 

42,579

 

 

 

20,897

 

 

 

36,679

 

 

 

42,579

 

 

 

20,897

 

Allowance for Credit Losses (2)

 

$

256,308

 

 

$

238,442

 

 

$

251,273

 

 

$

256,308

 

 

$

238,442

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

(1) Restructured loans with an aggregate balance of $11,298, $32,471, $22,421, and $13,568 at June 30, 2022, June 30, 2021, December 31, 2021, 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 $3,162, $46 and $102 at June 30, 2022, June 30, 2021 and December 31, 2021, 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.

 

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

Source: United Bankshares, Inc.