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United Bankshares Inc.$37.46($.31)(.82%)

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 United Bankshares, Inc. Announces Record Earnings for the Second Quarter and First Half of 2019
   Thursday, July 25, 2019 7:50:00 AM ET

WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)--United Bankshares, Inc. (NASDAQ: UBSI ), today reported record earnings for the second quarter and the first half of 2019. Earnings for the second quarter of 2019 were a record $67.2 million as compared to earnings of $66.3 million for the second quarter of 2018. Diluted earnings per share were $0.66 for the second quarter of 2019 as compared to diluted earnings per share of $0.63 for the second quarter of 2018. Earnings for the first half of 2019 were a record $130.8 million as compared to earnings of $128.0 million for the first half of 2018. Diluted earnings per share were $1.28 for the first half of 2019 as compared to diluted earnings per share of $1.22 for the first half of 2018.



Second quarter of 2019 results produced an annualized return on average assets of 1.38%, an annualized return on average equity of 8.12% and an annualized return on average tangible equity of 14.90%, respectively. For the first half of 2019, United’s annualized return on average assets was 1.36% while the annualized return on average equity was 8.00% and the annualized return on average tangible equity was 14.78%. United’s annualized returns on average assets, average equity and average tangible equity were 1.42%, 8.11% and 15.14%, respectively, for the second quarter of 2018 while the annualized returns on average assets, average equity and average tangible equity were 1.39%, 7.88% and 14.72%, respectively, for the first half of 2018.

“We are pleased to report a continuation of strong financial performance as we announce record earnings for the second quarter and first half of 2019,” stated Richard M. Adams, United’s Chairman and Chief Executive Officer.

Net interest income for the second quarter of 2019 was $150.6 million, which was relatively flat from the second quarter of 2018, increasing $1.4 million or less than 1%. The $1.4 million increase in net interest income occurred because total interest income increased $21.2 million while total interest expense increased $19.8 million from the second quarter of 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the second quarter of 2019 was $151.5 million, which was relatively flat from the second quarter of 2018, increasing $1.3 million or less than 1% due mainly to an increase in average earning assets mostly offset by an increase in the average cost of funds. Average earning assets for the second quarter of 2019 increased $785.8 million or 5% from the second quarter of 2018 due mainly to increases of $341.4 million or 3% in average net loans, $323.0 million or 14% in average investment securities and $121.3 million or 19% in average short-term investments. In addition, the average yield on earning assets for the second quarter of 2019 increased 30 basis points from the second quarter of 2018 due to higher market rates and an increase of $2.4 million in loan accretion on acquired loans. Loan accretion on acquired loans was $14.5 million and $12.1 million for the second quarter of 2019 and 2018, respectively. Mostly offsetting these increases to tax-equivalent net interest income for the second quarter of 2019 was an increase of 61 basis points in the average cost of funds as compared to the second quarter of 2018 due to higher market interest rates. The net interest margin of 3.53% for the second quarter of 2019 was a decrease of 14 basis points from the net interest margin of 3.67% for the second quarter of 2018.

Net interest income for the first half of 2019 was $294.7 million, which was relatively flat from the first half of 2018, increasing $1.6 million or less than 1%. The $1.6 million increase in net interest income occurred because total interest income increased $43.2 million while total interest expense increased $41.6 million from the first half of 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the first half of 2019 was $296.7 million, which was relatively flat from the first half of 2018, increasing $1.3 million or less than 1% due mainly to an increase in average earning assets mostly offset by an increase in the average cost of funds. Average earning assets for the first half of 2019 increased $726.8 million or 4% from the first half of 2018 due mainly to increases of $439.4 million or 3% in average net loans and $346.1 million or 15% in average investment securities. Average short-term investments decreased $58.7 million or 7%. In addition, the average yield on earning assets for the first half of 2019 increased 32 basis points from the first half of 2018 due to higher market rates. Mostly offsetting these increases to tax-equivalent net interest income for the first half of 2019 was an increase of 67 basis points in the average cost of funds as compared to the first half of 2018 due to higher market interest rates. Loan accretion on acquired loans was $23.0 million and $22.8 million for the first half of 2019 and 2018, respectively, increasing $173 thousand or less than 1%. The net interest margin of 3.50% for the first half of 2019 was a decrease of 14 basis points from the net interest margin of 3.64% for the first half of 2018.

On a linked-quarter basis, net interest income for the second quarter of 2019 increased $6.4 million or 4% from the first quarter of 2019. The $6.4 million increase in net interest income occurred because total interest income increased $10.1 million while total interest expense only increased $3.7 million from the first quarter of 2019. United’s tax-equivalent net interest income for the second quarter of 2019 increased $6.4 million or 4% from the first quarter of 2019 as well due to an increase in the yield on average earning assets. The average yield on earning assets for the second quarter of 2019 increased 13 basis points from the first quarter of 2019 due to an increase of $6.0 million in loan accretion on acquired loans. Loan accretion on acquired loans was $14.5 million and $8.5 million for the second quarter and first quarter of 2019, respectively. In addition, average earning assets for the second quarter of 2019 increased $274.7 million or 2% as compared to the first quarter of 2019 as average net loans increased $176.5 million or 1%, average investment securities increased $66.5 million or 3% and average short-term investments increased $31.7 million or 4% for the linked quarter. Partially offsetting the increases to tax-equivalent net interest income for the second quarter of 2019 was an increase of 8 basis points in the average cost of funds as compared to the first quarter of 2019 due to higher market interest rates. The net interest margin of 3.53% for the second quarter of 2019 increased 7 basis points from the net interest margin of 3.46% for the first quarter of 2019.

For the quarters ended June 30, 2019 and 2018, the provision for loan losses was $5.4 million and $6.2 million, respectively, while the provision for the first six months of 2019 was $10.4 million as compared to $11.4 million for the first six months of 2018. Net charge-offs were $5.9 million and $5.7 million for the second quarter of 2019 and 2018, respectively. Net charge-offs were $10.7 million and $10.9 million for the first half of 2019 and 2018, respectively. Annualized net charge-offs as a percentage of average loans was 0.17% and 0.16% for the second quarter and first half of 2019, respectively. On a linked-quarter basis, the provision for loan losses increased $421 thousand while net charge-offs increased $1.1 million from the first quarter of 2019.

Noninterest income for the second quarter of 2019 was $39.8 million, which was an increase of $3.8 million or 11% from the second quarter of 2018. The increase was due mainly to an increase of $3.0 million in income from mortgage banking activities due to increased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason Mortgage, LLC (George Mason). In addition, fees from brokerage services increased $813 thousand due to increased volume.

Noninterest income for the first half of 2019 was $71.0 million, which was an increase of $3.8 million or 6% from the first half of 2018. The increase was due mainly to an increase of $2.1 million in income from mortgage banking activities due mainly to a change in fair value of $4.3 million on George Mason’s interest rate lock commitments due to a higher locked pipeline. In addition, fees from brokerage services increased $1.1 million due to increased volume and income from bank-owned life insurance increased $628 thousand due to the recognition of $600 thousand in death benefits for the first half of 2019.

On a linked-quarter basis, noninterest income for the second quarter of 2019 increased $8.6 million or 27% from the first quarter of 2019 due mainly to an increase of $8.0 million in income from mortgage banking activities. The increase was due mainly to increased production and sales of mortgage loans in the secondary market by George Mason.

Noninterest expense for the second quarter of 2019 was $100.2 million, an increase of $6.8 million or 7% from the second quarter of 2018 due mainly to penalties of $5.1 million to prepay long-term Federal Home Loan Bank (FHLB) advances. In addition, employee compensation increased $1.2 million due mainly to an increase in employee incentives while other expense also increased $1.2 million due to an increase of $858 thousand on the write-off of income tax credits. Partially offsetting these increases was a decrease of $720 thousand in employee benefits due to a decline in pension expense.

Noninterest expense for the first half of 2019 was $189.6 million, an increase of $5.8 million or 3% from the first half of 2018 due mainly to the previously mentioned prepayment penalties on FHLB advances of $5.1 million. In addition, Federal Deposit Insurance Corporation (FDIC) insurance expense increased $1.9 million due to United Bank becoming a large institution and subject to increased assessment rates and other expense increased $1.7 million due to an increase of $1.4 million on the write-off of income tax credits. Partially offsetting these increases were decreases of $1.1 million in net occupancy expense due mainly to a decline in building rental expense, $938 thousand in data processing fees due to lower fees under a new contract, and $860 thousand in employee benefits due mainly to a decline in pension expense.

On a linked-quarter basis, noninterest expense for the second quarter of 2019 increased $10.8 million or 12% from the first quarter of 2019 due in large part to the previously mentioned prepayment penalties on FHLB advances of $5.1 million. In addition, employee compensation increased $5.4 million as a result of higher commissions expense related to an increase in production and sales of mortgage loans at George Mason and other expense increased $1.3 million due primarily to increased consulting and legal expenses. Partially offsetting these increases were decreases of $853 thousand in employee benefits due mainly to a decline in pension expense and $783 thousand in other real estate owned (OREO) expense due to fewer declines in the values of OREO properties.

For the second quarter and first half of 2019, income tax expense was $17.5 million and $34.9 million, respectively, as compared to $19.2 million and $37.1 million, respectively, in second quarter and first half of 2018. The decreases in 2019 were mainly due to a decline in the effective tax rate due in large part to the increased benefit from income tax credits. On a linked-quarter basis, income tax expense for the second quarter of 2019 increased $201 thousand from the first quarter of 2019 mainly due to higher earnings. United’s effective tax rate was 20.7% for the second quarter of 2019, 22.5% for the second quarter of 2018 and 21.4% for the first quarter of 2019. For the first half of 2019 and 2018, United's effective tax rate was 21.0% and 22.5%, respectively.

United’s asset quality continues to be sound. At June 30, 2019, nonperforming loans were $142.6 million, or 1.05% of loans, net of unearned income, relatively flat from nonperforming loans of $142.8 million, or 1.06% of loans, net of unearned income, at December 31, 2018. As of June 30, 2019, the allowance for loan losses was $76.4 million or 0.56% of loans, net of unearned income, as compared to $76.7 million or 0.57% of loans, net of unearned income, at December 31, 2018. Total nonperforming assets of $157.1 million, including OREO of $14.5 million at June 30, 2019, represented 0.79% of total assets as compared to nonperforming assets of $159.7 million or 0.83% at December 31, 2018.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.3% at June 30, 2019 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.2%, 12.2% and 10.2%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

As of June 30, 2019, United had consolidated assets of approximately $19.9 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank which comprises 139 full-service banking offices and 17 George Mason Mortgage, LLC locations, is located throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI ."

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its June 30, 2019 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, 2019 and will adjust amounts preliminarily reported, if necessary.

This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, tangible equity, return on tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.

Tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets . Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of common equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

 
 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30

2019

June 30

2018

 

June 30

2019

June 30

2018

EARNINGS SUMMARY:

 

 

 

 

 

Interest income

$

199,245

 

$

178,000

 

 

$

388,342

 

$

345,185

 

Interest expense

 

48,692

 

 

28,878

 

 

 

93,621

 

 

52,020

 

Net interest income

 

150,553

 

 

149,122

 

 

 

294,721

 

 

293,165

 

Provision for loan losses

 

5,417

 

 

6,204

 

 

 

10,413

 

 

11,382

 

Noninterest income

 

39,795

 

 

36,007

 

 

 

71,018

 

 

67,199

 

Noninterest expenses

 

100,195

 

 

93,410

 

 

 

189,620

 

 

183,862

 

Income before income taxes

 

84,736

 

 

85,515

 

 

 

165,706

 

 

165,120

 

Income taxes

 

17,529

 

 

19,241

 

 

 

34,857

 

 

37,140

 

Net income

$

67,207

 

$

66,274

 

 

$

130,849

 

$

127,980

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$

0.66

 

$

0.63

 

 

$

1.28

 

$

1.22

 

Diluted

 

0.66

 

 

0.63

 

 

 

1.28

 

 

1.22

 

Cash dividends

$

0.34

 

$

0.34

 

 

 

0.68

 

 

0.68

 

Book value

 

 

 

 

32.70

 

 

31.12

 

Closing market price

 

 

 

$

37.09

 

$

36.40

 

Common shares outstanding:

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

101,963,030

 

 

104,203,542

 

Weighted average- basic

 

101,773,643

 

 

104,682,910

 

 

 

101,833,880

 

 

104,770,681

 

Weighted average- diluted

 

102,047,845

 

 

104,952,788

 

 

 

102,099,809

 

 

105,058,014

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

Return on average assets

 

1.38

%

 

1.42

%

 

 

1.36

%

 

1.39

%

Return on average shareholders’ equity

 

8.12

%

 

8.11

%

 

 

8.00

%

 

7.88

%

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

 

14.90

%

 

15.14

%

 

 

14.78

%

 

14.72

%

Average equity to average assets

 

17.02

%

 

17.51

%

 

 

17.02

%

 

17.58

%

Net interest margin

 

3.53

%

 

3.67

%

 

 

3.50

%

 

3.64

%

 

 

 

 

 

 

 

June 30

2019

June 30

2018

 

December 31

2018

March 31

2019

PERIOD END BALANCES:

 

 

 

 

 

Assets

$

19,882,539

 

$

19,207,603

 

 

$

19,250,498

 

$

19,645,133

 

Earning assets

 

17,548,123

 

 

16,852,952

 

 

 

16,971,602

 

 

17,305,050

 

Loans, net of unearned income

 

13,635,266

 

 

13,516,629

 

 

 

13,422,222

 

 

13,572,703

 

Loans held for sale

 

370,593

 

 

285,194

 

 

 

249,846

 

 

245,763

 

Investment securities

 

2,563,262

 

 

2,266,303

 

 

 

2,543,727

 

 

2,592,590

 

Total deposits

 

14,404,085

 

 

13,830,766

 

 

 

13,994,749

 

 

14,159,397

 

Shareholders’ equity

 

3,333,858

 

 

3,242,565

 

 

 

3,251,624

 

 

3,286,891

 

: (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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June

 

June

 

March

 

June

 

June

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2019

 

 

 

2018

 

Interest & Loan Fees Income (GAAP)

$

199,245

 

 

$

178,000

 

 

$

189,097

 

 

$

388,342

 

 

$

345,185

 

Tax equivalent adjustment

 

977

 

 

 

1,115

 

 

 

993

 

 

 

1,970

 

 

 

2,219

 

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

 

200,222

 

 

 

179,115

 

 

 

190,090

 

 

 

390,312

 

 

 

347,404

 

Interest Expense

 

48,692

 

 

 

28,878

 

 

 

44,929

 

 

 

93,621

 

 

 

52,020

 

Net Interest Income (FTE) (non-GAAP)

 

151,530

 

 

 

150,237

 

 

 

145,161

 

 

 

296,691

 

 

 

295,384

 

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

5,417

 

 

 

6,204

 

 

 

4,996

 

 

 

10,413

 

 

 

11,382

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Income:

 

 

 

 

 

 

 

 

 

Fees from trust services

 

3,438

 

 

 

3,104

 

 

 

3,264

 

 

 

6,702

 

 

 

6,195

 

Fees from brokerage services

 

2,766

 

 

 

1,953

 

 

 

2,524

 

 

 

5,290

 

 

 

4,177

 

Fees from deposit services

 

8,464

 

 

 

8,420

 

 

 

8,053

 

 

 

16,517

 

 

 

16,650

 

Bankcard fees and merchant discounts

 

1,102

 

 

 

1,479

 

 

 

1,156

 

 

 

2,258

 

 

 

2,835

 

Other charges, commissions, and fees

 

576

 

 

 

599

 

 

 

521

 

 

 

1,097

 

 

 

1,108

 

Income from bank-owned life insurance

 

1,326

 

 

 

1,271

 

 

 

1,827

 

 

 

3,153

 

 

 

2,525

 

Income from mortgage banking activities

 

21,704

 

 

 

18,692

 

 

 

13,681

 

 

 

35,385

 

 

 

33,262

 

Net gains (losses) on investment securities

 

109

 

 

 

(55

)

 

 

(159

)

 

 

(50

)

 

 

(540

)

Other non-interest revenue

 

310

 

 

 

544

 

 

 

356

 

 

 

666

 

 

 

987

 

Total Non-Interest Income

 

39,795

 

 

 

36,007

 

 

 

31,223

 

 

 

71,018

 

 

 

67,199

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Expense:

 

 

 

 

 

 

 

 

 

Employee compensation

 

44,301

 

 

 

43,120

 

 

 

38,949

 

 

 

83,250

 

 

 

83,956

 

Employee benefits

 

8,578

 

 

 

9,298

 

 

 

9,431

 

 

 

18,009

 

 

 

18,869

 

Net occupancy

 

8,667

 

 

 

9,076

 

 

 

8,751

 

 

 

17,418

 

 

 

18,503

 

Data processing

 

5,567

 

 

 

5,817

 

 

 

5,162

 

 

 

10,729

 

 

 

11,667

 

Amortization of intangibles

 

1,754

 

 

 

2,010

 

 

 

1,754

 

 

 

3,508

 

 

 

4,020

 

OREO expense

 

633

 

 

 

556

 

 

 

1,416

 

 

 

2,049

 

 

 

1,502

 

Equipment expense

 

3,675

 

 

 

3,279

 

 

 

3,315

 

 

 

6,990

 

 

 

6,436

 

FDIC insurance expense

 

3,300

 

 

 

2,842

 

 

 

3,300

 

 

 

6,600

 

 

 

4,690

 

Prepayment penalties on FHLB borrowings

 

5,105

 

 

 

0

 

 

 

0

 

 

 

5,105

 

 

 

0

 

Other expenses

 

18,615

 

 

 

17,412

 

 

 

17,347

 

 

 

35,962

 

 

 

34,219

 

Total Non-Interest Expense

 

100,195

 

 

 

93,410

 

 

 

89,425

 

 

 

189,620

 

 

 

183,862

 

 

 

 

 

 

 

 

 

 

 

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

 

85,713

 

 

 

86,630

 

 

 

81,963

 

 

 

167,676

 

 

 

167,339

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

977

 

 

 

1,115

 

 

 

993

 

 

 

1,970

 

 

 

2,219

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

84,736

 

 

 

85,515

 

 

 

80,970

 

 

 

165,706

 

 

 

165,120

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

17,529

 

 

 

19,241

 

 

 

17,328

 

 

 

34,857

 

 

 

37,140

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

67,207

 

 

$

66,274

 

 

$

63,642

 

 

$

130,849

 

 

$

127,980

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

20.69

%

 

 

22.50

%

 

 

21.40

%

 

 

21.04

%

 

 

22.49

%

 
 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

 

 

 

 

 

 

 

 

2019

 

 

 

2018

 

 

June 30

 

December 31

 

June 30

 

 

Q-T-D Average

 

Q-T-D Average

 

 

2019

 

 

 

2018

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

$

955,838

 

 

$

837,329

 

 

$

1,253,573

 

 

$

1,020,396

 

 

$

1,092,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

2,396,501

 

 

 

2,092,862

 

 

 

2,345,791

 

 

 

2,337,039

 

 

 

2,060,927

 

 

Held to Maturity Securities

 

7,315

 

 

 

20,395

 

 

 

6,461

 

 

 

19,999

 

 

 

20,378

 

 

Equity Securities

 

13,082

 

 

 

10,314

 

 

 

9,098

 

 

 

9,734

 

 

 

9,664

 

 

Other Investment Securities

 

198,432

 

 

 

168,778

 

 

 

201,912

 

 

 

176,955

 

 

 

175,334

 

 

Total Securities

 

2,615,330

 

 

 

2,292,349

 

 

 

2,563,262

 

 

 

2,543,727

 

 

 

2,266,303

 

 

Total Cash and Securities

 

3,571,168

 

 

 

3,129,678

 

 

 

3,816,835

 

 

 

3,564,123

 

 

 

3,359,229

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

285,366

 

 

 

209,836

 

 

 

370,593

 

 

 

249,846

 

 

 

285,194

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans

 

9,504,143

 

 

 

9,847,720

 

 

 

9,525,321

 

 

 

9,447,420

 

 

 

9,875,623

 

 

Mortgage Loans

 

3,038,958

 

 

 

2,655,389

 

 

 

3,050,786

 

 

 

2,979,787

 

 

 

2,782,735

 

 

Consumer Loans

 

1,065,490

 

 

 

847,949

 

 

 

1,063,839

 

 

 

1,002,325

 

 

 

870,650

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

13,608,591

 

 

 

13,351,058

 

 

 

13,639,946

 

 

 

13,429,532

 

 

 

13,529,008

 

 

 

 

 

 

 

 

 

 

 

 

 

Unearned income

 

(5,241

)

 

 

(13,523

)

 

 

(4,680

)

 

 

(7,310

)

 

 

(12,379

)

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income

 

13,603,350

 

 

 

13,337,535

 

 

 

13,635,266

 

 

 

13,422,222

 

 

 

13,516,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

(76,682

)

 

 

(76,773

)

 

 

(76,400

)

 

 

(76,703

)

 

 

(77,135

)

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

1,478,014

 

 

 

1,478,195

 

 

 

1,478,014

 

 

 

1,478,014

 

 

 

1,478,014

 

 

Other Intangibles

 

34,386

 

 

 

42,058

 

 

 

33,439

 

 

 

36,947

 

 

 

40,966

 

 

Total Intangibles

 

1,512,400

 

 

 

1,520,253

 

 

 

1,511,453

 

 

 

1,514,961

 

 

 

1,518,980

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Right-of-Use Asset

 

63,503

 

 

 

0

 

 

 

63,113

 

 

 

0

 

 

 

0

 

 

Other Real Estate Owned

 

16,264

 

 

 

22,263

 

 

 

14,469

 

 

 

16,865

 

 

 

21,926

 

 

Other Assets

 

540,485

 

 

 

569,592

 

 

 

547,210

 

 

 

559,184

 

 

 

582,780

 

 

Total Assets

$

19,515,854

 

 

$

18,712,384

 

 

$

19,882,539

 

 

$

19,250,498

 

 

$

19,207,603

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

$

17,197,989

 

 

$

16,412,229

 

 

$

17,548,123

 

 

$

16,971,602

 

 

$

16,852,952

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

$

9,753,724

 

 

$

9,210,282

 

 

$

10,073,420

 

 

$

9,577,934

 

 

$

9,498,926

 

 

Noninterest-bearing Deposits

 

4,240,050

 

 

 

4,255,840

 

 

 

4,330,665

 

 

 

4,416,815

 

 

 

4,331,840

 

 

Total Deposits

 

13,993,774

 

 

 

13,466,122

 

 

 

14,404,085

 

 

 

13,994,749

 

 

 

13,830,766

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

136,230

 

 

 

208,058

 

 

 

122,159

 

 

 

351,327

 

 

 

199,507

 

 

Long-term Borrowings

 

1,879,154

 

 

 

1,659,613

 

 

 

1,783,567

 

 

 

1,499,103

 

 

 

1,794,641

 

 

Total Borrowings

 

2,015,384

 

 

 

1,867,671

 

 

 

1,905,726

 

 

 

1,850,430

 

 

 

1,994,148

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

67,240

 

 

 

0

 

 

 

66,821

 

 

 

0

 

 

 

0

 

 

Other Liabilities

 

118,469

 

 

 

102,492

 

 

 

172,049

 

 

 

153,695

 

 

 

140,124

 

 

Total Liabilities

 

16,194,867

 

 

 

15,436,285

 

 

 

16,548,681

 

 

 

15,998,874

 

 

 

15,965,038

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

Common Equity

 

3,320,987

 

 

 

3,276,099

 

 

 

3,333,858

 

 

 

3,251,624

 

 

 

3,242,565

 

 

Total Shareholders' Equity

 

3,320,987

 

 

 

3,276,099

 

 

 

3,333,858

 

 

 

3,251,624

 

 

 

3,242,565

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

$

19,515,854

 

 

$

18,712,384

 

 

$

19,882,539

 

 

$

19,250,498

 

 

$

19,207,603

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

$

11,769,108

 

 

$

11,077,953

 

 

$

11,979,146

 

 

$

11,428,364

 

 

$

11,493,074

 

 

 

 
 
 

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

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2019

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.66

 

 

$

0.63

 

 

$

0.62

 

 

$

1.28

 

 

$

1.22

 

Diluted

$

0.66

 

 

$

0.63

 

 

$

0.62

 

 

$

1.28

 

 

$

1.22

 

 

 

 

 

 

 

 

 

 

 

$

0.34

 

 

$

0.34

 

 

$

0.34

 

 

$

0.68

 

 

$

0.68

 

 

 

 

 

 

 

 

 

 

 

High Common Stock Price

$

39.88

 

 

$

38.80

 

 

$

39.14

 

 

$

39.88

 

 

$

38.80

 

Low Common Stock Price

$

35.42

 

 

$

33.40

 

 

$

30.67

 

 

$

30.67

 

 

$

33.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

101,773,643

 

 

 

104,682,910

 

 

 

101,894,786

 

 

 

101,833,880

 

 

 

104,770,681

 

Diluted

 

102,047,845

 

 

 

104,952,788

 

 

 

102,162,704

 

 

 

102,099,809

 

 

 

105,058,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

34,688

 

 

$

35,584

 

 

$

34,759

 

 

$

69,447

 

 

$

71,332

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio

 

51.61

%

 

 

53.69

%

 

 

54.62

%

 

 

53.07

%

 

 

55.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

March 31

 

 

 

 

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

Book Value Per Share

 

 

 

 

$

32.70

 

 

$

31.12

 

 

$

32.19

 

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

 

 

 

 

$

17.87

 

 

$

16.54

 

 

$

17.37

 

 

 

 

 

 

 

 

 

 

 

52-week High Common Stock Price

 

 

 

 

$

39.95

 

 

$

40.45

 

 

$

39.95

 

Date

 

 

 

 

08/21/18

 

07/03/17

 

08/21/18

52-week Low Common Stock Price

 

 

 

 

$

29.13

 

 

$

31.70

 

 

$

29.13

 

Date

 

 

 

 

12/27/18

 

09/07/17

 

12/27/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101,963,030

 

 

 

104,203,542

 

 

 

102,118,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

2,212

 

 

 

2,300

 

 

 

2,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

$

3,333,858

 

 

$

3,242,565

 

 

$

3,286,891

 

Less: Total Intangibles

 

 

 

 

 

(1,511,453

)

 

 

(1,518,980

)

 

 

(1,513,207

)

Tangible Equity (non-GAAP)

 

 

 

 

$

1,822,405

 

 

$

1,723,585

 

 

$

1,773,684

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

101,963,030

 

 

 

104,203,542

 

 

 

102,118,029

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

$

17.87

 

 

$

16.54

 

 

$

17.37

 

 
 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June

 

 

June

 

March

 

June

 

June

 

 

:

 

2019

 

 

 

 

2018

 

 

 

2019

 

 

 

2019

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loans

 

5.10

%

 

 

 

4.76

%

 

 

4.91

%

 

 

5.01

%

 

 

4.70

%

 

 

Investment Securities

 

2.90

%

 

 

 

2.73

%

 

 

2.93

%

 

 

2.91

%

 

 

2.63

%

 

 

Money Market Investments/FFS

 

2.81

%

 

 

 

2.14

%

 

 

3.20

%

 

 

3.00

%

 

 

2.08

%

 

 

Average Earning Assets Yield

 

4.67

%

 

 

 

4.37

%

 

 

4.54

%

 

 

4.60

%

 

 

4.28

%

 

 

Interest-bearing Deposits

 

1.46

%

 

 

 

0.83

%

 

 

1.37

%

 

 

1.41

%

 

 

0.75

%

 

 

Short-term Borrowings

 

1.79

%

 

 

 

0.89

%

 

 

1.61

%

 

 

1.69

%

 

 

0.72

%

 

 

Long-term Borrowings

 

2.70

%

 

 

 

2.26

%

 

 

2.77

%

 

 

2.73

%

 

 

2.20

%

 

 

Average Liability Costs

 

1.66

%

 

 

 

1.05

%

 

 

1.58

%

 

 

1.62

%

 

 

0.95

%

 

 

Net Interest Spread

 

3.01

%

 

 

 

3.32

%

 

 

2.96

%

 

 

2.98

%

 

 

3.33

%

 

 

Net Interest Margin

 

3.53

%

 

 

 

3.67

%

 

 

3.46

%

 

 

3.50

%

 

 

3.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

1.38

%

 

 

 

1.42

%

 

 

1.34

%

 

 

1.36

%

 

 

1.39

%

 

 

Return on Average Common Equity

 

8.12

%

 

 

 

8.11

%

 

 

7.88

%

 

 

8.00

%

 

 

7.88

%

 

 

Return on Average Tangible Equity (non-

GAAP) (1)

 

14.90

%

 

 

 

15.14

%

 

 

14.64

%

 

 

14.78

%

 

 

14.72

%

 

 

Efficiency Ratio

 

52.64

%

 

 

 

50.46

%

 

 

50.99

%

 

 

51.85

%

 

 

51.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

67,207

 

 

 

$

66,274

 

 

$

63,642

 

 

$

130,849

 

 

$

127,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b) Number of days

 

91

 

 

 

 

91

 

 

 

90

 

 

 

181

 

 

 

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Total Shareholders' Equity (GAAP)

$

3,220,987

 

 

 

$

3,276,099

 

 

$

3,276,822

 

 

$

3,299,061

 

 

$

3,274,639

 

 

 

Less: Average Total Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

(c) Average Tangible Equity (non-GAAP)

$

1,808,587

 

 

 

$

1,755,846

 

 

$

1,762,654

 

 

$

1,785,782

 

 

$

1,753,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Tangible Equity (non-GAAP)

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

 

 

 

14.90

 

%

 

 

 

 

 

15.14

 

%

 

 

 

 

14.64

 

%

 

 

 

 

14.78

 

%

 

 

 

 

14.72

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

June 30

 

March 31

 

December 31

 

 

 

 

 

 

2019

 

2018

 

2019

 

2018

 

 

Loan / Deposit Ratio

 

 

94.66

%

 

 

97.73

%

 

 

95.86

%

 

 

95.91

%

 

 

Allowance for Loan Losses/ Loans, net of unearned income

 

 

0.56

%

 

 

0.57

%

 

 

0.57

%

 

 

0.57

%

 

 

Allowance for Credit Losses (1)/ Loans, net of unearned income

 

 

0.57

%

 

 

0.58

%

 

 

0.58

%

 

 

0.58

%

 

 

Nonaccrual Loans / Loans, net of unearned income

 

 

0.52

%

 

 

0.55

%

 

 

0.47

%

 

 

0.51

%

 

 

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

 

 

0.09

%

 

 

0.12

%

 

 

0.11

%

 

 

0.11

%

 

 

Non-performing Loans/ Loans, net of unearned income

 

 

1.05

%

 

 

1.12

%

 

 

1.00

%

 

 

1.06

%

 

 

Non-performing Assets/ Total Assets

 

 

0.79

%

 

 

0.90

%

 

 

0.78

%

 

 

0.83

%

 

 

Primary Capital Ratio

 

 

17.09

%

 

 

17.21

%

 

 

17.06

%

 

 

17.23

%

 

 

Shareholders' Equity Ratio

 

 

16.77

%

 

 

16.88

%

 

 

16.73

%

 

 

16.89

%

 

 

Price / Book Ratio

 

 

1.13

 

x

 

1.17

 

x

 

1.13

 

x

 

0.98

 

x

 

Price / Earnings Ratio

 

 

14.08

 

x

 

14.41

 

x

 

14.54

 

x

 

12.71

 

x

 

 

 

 

 

 

 

 

 

 

:

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

 

 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol:  UBSI

(In Thousands Except for Per Share Data) 

 

Three Months Ended

 

Six Months Ended

 

June

 

June

 

March

 

June

 

June

:

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2019

 

 

 

2018

 

Applications

$

1,278,000

 

 

$

1,195,000

 

 

$

   866,000

 

 

$

2,144,000

 

 

$

2,344,000

 

Loans originated

 

801,926

 

 

 

874,493

 

 

 

454,588

 

 

 

1,256,514

 

 

 

  1,448,225

 

Loans sold

$

  680,986

 

 

$

  784,727

 

 

$

   457,192

 

 

$

1,138,178

 

 

$

1,401,678

 

Purchase money % of loans closed

 

81

%

 

 

83

%

 

 

86

%

 

 

83

%

 

 

80

%

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

 

2.89

%

 

 

2.62

%

 

 

3.07

%

 

 

2.96

%

 

 

2.62

%

Net interest income

$

          111

 

 

$

          264

 

 

$

            55

 

 

$

          166

 

 

$

          640

 

Other income

 

23,501

 

 

 

23,468

 

 

 

16,106

 

 

 

39,607

 

 

 

38,351

 

Other expense

 

18,771

 

 

 

21,225

 

 

 

14,842

 

 

 

33,613

 

 

 

39,609

 

Income taxes

 

1,004

 

 

 

564

 

 

 

282

 

 

 

1,286

 

 

 

(139

)

Net income

$

      3,837

 

 

$

      1,943

 

 

$

       1,037

 

 

$

      4,874

 

 

$

      (479

)

 

June

 

June

 

December

 

March

:

2019

 

2018

 

2018

 

2019

Locked pipeline

$

   305,843

 

$

   221,317

 

$

    122,677

 

$

    223,657

 

June

 

 

June

 

December

 

March

:

2019

 

 

2018

 

2018

 

2019

 

 

 

 

 

 

 

 

 

EOP Non-Accrual Loans

$

    71,123

 

 

$

    74,114

 

$

     68,544

 

$

      63,402

EOP 90-Day Past Due Loans

 

12,729

 

 

 

16,422

 

 

14,851

 

 

15,572

EOP Restructured Loans (1)(2)

 

58,750

 

 

 

60,384

 

 

59,425

 

 

56,778

   Total EOP Non-performing Loans

$

  142,602

 

 

$

  150,920

 

$

   142,820

 

$

     135,752

 

 

 

 

 

 

 

 

 

EOP Other Real Estate Owned

 

14,469

 

 

 

21,926

 

 

16,865

 

 

17,465

   Total EOP Non-performing Assets

$

  157,071

 

 

$

  172,846

 

$

   159,685

 

$

     153,217

 

 

 

Three Months Ended

 

Six Months Ended

 

June

 

 June

 

March

 

June

 

June

:

2019

 

 2018

 

2019

 

2019

 

2018

Beginning Balance

$

    76,886

 

 

 

$

    76,653

 

 

$

     76,703

 

 

$

    76,703

 

 

$

    76,627

 

Provision for Loan Losses

 

5,417

 

 

 

 

6,204

 

 

 

4,996

 

 

 

10,413

 

 

 

11,382

 

 

 

82,303

 

 

 

 

82,857

 

 

 

81,699

 

 

 

87,116

 

 

 

88,009

 

Gross Charge-offs

 

(7,588

)

 

 

 

(7,712

)

 

 

(6,414

)

 

 

(14,002

)

 

 

(13,570

)

Recoveries

 

1,685

 

 

 

 

1,990

 

 

 

1,601

 

 

 

3,286

 

 

 

2,696

 

Net Charge-offs

 

(5,903

)

 

 

 

(5,722

)

 

 

(4,813

)

 

 

(10,716

)

 

 

(10,874

)

Ending Balance

$

    76,400

 

 

 

$

    77,135

 

 

$

     76,886

 

 

$

    76,400

 

 

$

    77,135

 

Reserve for lending-related commitments

 

1,752

 

 

 

 

927

 

 

 

1,461

 

 

 

1,752

 

 

 

927

 

Allowance for Credit Losses (3)

$

   78,152

 

 

 

$

   78,062

 

 

$

     78,347

 

 

$

   78,152

 

 

$

   78,062

 

 

 

 

 

 

 

 

 

 

 

 

:

(1) Restructured loans with an aggregate balance of $48,586, $46,652, $47,459 and $48,899 at June 30, 2019, June 30, 2018, March 31, 2019 and December 31, 2018, respectively, were on nonaccrual status, but are not included in "EOP Non-Accrual Loans" above.
(2) Restructured loans with an aggregate balance of $265 and $690 at March 31, 2019 and December 31, 2018, respectively, were 90 days or more past due, but are not included in "EOP 90-Day Past Due Loans."
(3) Includes allowances for loan losses and lending-related commitments.

 

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

Source: United Bankshares, Inc.



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