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United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months Of 2021

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter and first nine months of 2021. Earnings for the third quarter of 2021 were $92.2 million, or $0.71 per diluted share, as compared to earnings of $103.8 million, or $0.80 per diluted share, for the third quarter of 2020. Earnings for the first nine months of 2021 were $293.9 million, or $2.27 per diluted share, as compared to earnings of $196.7 million, or $1.68 per diluted share, for the first nine months of 2020.

Third quarter 2021 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.33%, 8.23% and 14.03%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.56%, 9.68% and 16.94%, respectively, for the third quarter of 2020. For the first nine months of 2021, United’s annualized returns on average assets, average equity and average tangible equity were 1.46%, 8.95% and 15.36%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.12%, 6.85% and 12.19%, respectively, for the first nine months of 2020.

“Our earnings continued to be strong in the third quarter of 2021 as we earned net income of $92.2 million, diluted earnings per share of $0.71 and delivered an annualized return on average assets of 1.33%,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “Additionally, credit quality metrics remain strong with nonperforming assets decreasing approximately 31% from December 31, 2020 to $107.0 million, representing 0.39% of total assets, at September 30, 2021.”

United previously announced that it entered into a definitive merger agreement with Community Bankers Trust Corporation (“Community Bankers Trust”). Under the merger agreement, United will acquire 100% of the outstanding shares of Community Bankers Trust in exchange for common shares of United. The combined organization will be approximately $29 billion in assets with nearly 250 locations in some of the most desirable banking markets in the nation. All requisite regulatory approvals for the merger have been received from the Board of Governors of the Federal Reserve System and from the Virginia State Corporation Commission. The merger is expected to close in the fourth quarter of 2021, subject to satisfaction of customary closing conditions including approval by the shareholders of Community Bankers Trust.

As a result of the acquisition of Carolina Financial Corporation (“Carolina Financial”) on May 1, 2020, the first nine months of 2021 reflected higher average balances, income, and expense as compared to the first nine months of 2020. In addition, the third quarter and first nine months of 2020 included merger-related expenses of $5.7 million and $53.7 million, respectively, associated with the acquisition of Carolina Financial compared to $845 thousand and $1.0 million of merger-related expenses incurred in the third quarter and first nine months of 2021, respectively, related to the announced Community Bankers Trust acquisition.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $181.6 million, which was a decrease of $4.1 million, or 2%, from the third quarter of 2020. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2021 decreased $4.1 million, or 2%, from the third quarter of 2020 to $182.6 million. The decrease in net interest income and tax-equivalent net interest income was primarily due to a change in the mix of interest earning assets. A decrease in interest income due to the mix of interest earning assets as well as lower loan accretion on acquired loans was partially offset by lower interest expense on deposits and borrowings reflecting a decline in market interest rates and higher loan fee income from the Paycheck Protection Program (“PPP”). The net interest spread for the third quarter of 2021 decreased 10 basis points from the third quarter of 2020 due to a 41 basis point decrease in the average yield on earning assets partially offset by a 31 basis point decrease in the average cost of funds. Average earning assets for the third quarter of 2021 increased $937.4 million, or 4%, from the third quarter of 2020 due to a $1.9 billion increase in average short-term investments and a $563.2 million increase in average investment securities, partially offset by a $1.5 billion decrease in average net loans and loans held for sale mainly driven by a decline in PPP loan balances. Loan accretion on acquired loans was $8.2 million and $11.7 million for the third quarter of 2021 and 2020, respectively, a decrease of $3.5 million. Net PPP loan fee income of $7.8 million was recognized in the third quarter of 2021 driven primarily by loan forgiveness, as compared to $4.8 million for the third quarter of 2020. The net interest margin of 2.98% for the third quarter of 2021 was a decrease of 20 basis points from the net interest margin of 3.18% for the third quarter of 2020.

Net interest income for the first nine months of 2021 was $559.1 million, which was an increase of $61.3 million, or 12%, from the first nine months of 2020. Tax-equivalent net interest income for the first nine months of 2021 was $562.2 million, an increase of $61.6 million, or 12%, from the first nine months of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets from the Carolina Financial acquisition and PPP loans as well as lower interest expense on deposits and borrowings. Average earning assets for the first nine months of 2021 increased $3.1 billion, or 15%, from the first nine months of 2020 due to a $1.6 billion increase in average short-term investments, a $989.3 million increase in average net loans and loans held for sale and a $558.5 million increase in average investment securities. The net interest spread for the first nine months of 2021 increased 11 basis points from the first nine months of 2020 due to a 54 basis point decrease in the average cost of funds partially offset by a 43 basis point decrease in the average yield on earning assets. Net PPP loan fee income of $28.2 million was recognized in the first nine months of 2021 driven primarily by loan forgiveness, as compared to $9.3 million for the first nine months of 2020. Loan accretion on acquired loans was $27.6 million and $30.8 million for the first nine months of 2021 and 2020, respectively, a decrease of $3.2 million. The net interest margin of 3.14% for the first nine months of 2021 was a decrease of 7 basis points from the net interest margin of 3.21% for the first nine months of 2020.

On a linked-quarter basis, net interest income for the third quarter of 2021 decreased $4.9 million, or 3%, from the second quarter of 2021. Tax-equivalent net interest income for the third quarter of 2021 decreased $5.0 million, or 3%, from the second quarter of 2021. The net interest spread for the third quarter of 2021 of 2.83% decreased 15 basis points from the second quarter of 2021 due to a 19 basis point decrease in the average yield on earning assets partially offset by a 4 basis point decrease in the average cost of funds. Average earning assets increased approximately $394.6 million, or 2%, from the second quarter of 2021 due to increases in average short-term investments of $919.7 million and average investment securities of $111.6 million partially offset by a decrease in average net loans and loans held for sale of $636.6 million mainly driven by a decline in PPP loan balances. Net PPP loan fee income for the third quarter of 2021 decreased $1.2 million from the second quarter of 2021 to $7.8 million. Loan accretion on acquired loans decreased $1.5 million from the second quarter of 2021 to $8.2 million for the third quarter of 2021. The net interest margin of 2.98% for the third quarter of 2021 was a decrease of 16 basis points from the net interest margin of 3.14% for the second quarter of 2021.

Credit Quality

United’s asset quality continues to be sound. At September 30, 2021, nonperforming loans were $90.3 million, or 0.54% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $107.0 million, including other real estate owned (“OREO”) of $16.7 million at September 30, 2021, represented 0.39% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.

The provision for credit losses was a net benefit of $7.8 million and $16.6 million for the third quarter and first nine months of 2021, respectively, while the provision for credit losses was an expense of $16.8 million and $89.8 million, respectively, for the third quarter and first nine months of 2020. The first nine months of 2020 included a provision for loan losses of $29.0 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and first nine months of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the third quarter of 2021 was a net benefit of $7.8 million compared to a net benefit of $8.9 million for the second quarter of 2021.

As of September 30, 2021, the allowance for loan losses was $210.9 million, or 1.26% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net recoveries were $1.2 million for the third quarter of 2021 compared to net charge-offs of $5.6 million for the third quarter of 2020. Net charge-offs were $8.6 million for the first nine months of 2021 compared to net charge-offs of $16.7 million for the first nine months of 2020. Annualized net (recoveries) charge-offs as a percentage of average loans & leases, net of unearned income were (0.03)% and 0.07% for the third quarter and first nine months of 2021, respectively, compared to annualized net charge-offs of 0.12% and 0.13% for the third quarter and first nine months of 2020. Net charge-offs were $5.2 million for the second quarter of 2021.

Noninterest Income

Noninterest income for the third quarter of 2021 was $68.6 million, which was a decrease of $66.8 million, or 49%, from the third quarter of 2020 primarily driven by a $67.4 million decrease in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and the mark-to-market impact of a declining locked pipeline. The third quarter of 2020 also included a $2.2 million gain on the sale of a bank premises. Partially offsetting the decreases in noninterest income were increases in fees from brokerage services of $817 thousand, fees from trust services of $695 thousand and fees from deposit services of $568 thousand.

Noninterest income for the first nine months of 2021 was $224.0 million, which was a decrease of $36.6 million, or 14%, from the first nine months of 2020. The decrease was driven primarily by a $51.0 million decrease in income from mortgage banking activities due primarily to the mark-to-market impact of a declining locked pipeline although originations and sales of mortgage loans in the secondary market increased. Mortgage loan servicing income for the first nine months of 2021 was $7.2 million compared to $3.9 million for the first nine months of 2020 as a result of the Carolina Financial acquisition. The first nine months of 2021 also included fees from deposit services of $28.2 million, an increase of $2.8 million from the first nine months of 2020, fees from trust services of $12.2 million, an increase of $1.9 million from the first nine months of 2020 and fees from brokerage services of $11.9 million, an increase of $3.2 million from the first nine months of 2020.

On a linked-quarter basis, noninterest income for the third quarter of 2021 increased $5.8 million, or 9%, from the second quarter of 2021 primarily due to an increase of $5.1 million in income from mortgage banking activities due primarily to a higher loan pipeline valuation. Income from bank-owned life insurance (BOLI) for the third quarter of 2021 was $2.6 million, an increase of $898 thousand from the linked quarter primarily due to the recognition of death benefits. Fees from deposit services for the third quarter of 2021 were $9.9 million, an increase of $492 thousand from the linked quarter.

Noninterest Expense

Noninterest expense for the third quarter of 2021 was $142.3 million, a decrease of $29.3 million, or 17%, from the third quarter of 2020, primarily due to a decrease of $17.0 million in employee compensation due to lower employee incentives and commissions related to mortgage banking production as well as a lower employee headcount. The third quarter of 2020 also included $10.4 million in prepayment penalties on the early payoff of three long-term FHLB advances.

Noninterest expense for the first nine months of 2021 was $430.2 million, an increase of $8.1 million, or 2%, from the first nine months of 2020. Employee compensation increased $10.8 million from the first nine months of 2020 primarily due to the Carolina Financial acquisition. Additionally, noninterest expense increased from the first nine months of 2020 due to increases of $6.3 million in employee benefits, $4.7 million in equipment expense, $4.1 million in mortgage loan servicing expense and impairment, $1.7 million in OREO expense and $1.1 million in net occupancy expense. The increase in OREO expense was due mainly to declines in the fair value of OREO properties. The increases in employee benefits, mortgage loan servicing expense and impairment, equipment expense and net occupancy expense were mainly from the Carolina Financial acquisition. Partially offsetting the increases in noninterest expense was a decrease in data processing expense of $7.5 million, primarily due to a penalty of $9.7 million to terminate Carolina Financial’s data processing contract in the second quarter of 2020. The first nine months of 2020 also included $10.4 million in prepayment penalties on the early payoff of FHLB advances.

On a linked-quarter basis, noninterest expense for the third quarter of 2021 increased $3.3 million, or 2%, from the second quarter of 2021 primarily due to an increase of $4.6 million in other expense. Within other expense, the largest drivers of the variance were increases in the expense for the reserve for unfunded commitments of $3.4 million primarily due to an increase in outstanding loan commitments and merger-related expenses of $662 thousand associated with the announced Community Bankers Trust acquisition. Partially offsetting the increases in other expense were decreases in employee compensation of $1.1 million and employee benefits of $1.3 million, primarily due to lower commissions, and associated taxes, related to mortgage banking production.

Income Tax Expense

For the third quarter of 2021, income tax expense was $23.6 million as compared to $29.0 million for the third quarter of 2020 primarily due to lower earnings and a lower effective tax rate. For the first nine months of 2021, income tax expense was $75.6 million as compared to $49.9 million for the first nine months of 2020 primarily due to higher earnings. On a linked-quarter basis, income tax expense decreased $851 thousand primarily due to lower earnings and a slightly lower effective tax rate. United’s effective tax rate was 20.4% for the third quarter of 2021, 21.8% for the third quarter of 2020 and 20.5% for the second quarter of 2021. For the first nine months of 2021 and 2020, United’s effective tax rate was 20.5% and 20.2%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.7% at September 30, 2021, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.5%, 13.5% and 10.4%, respectively. The September 30, 2021 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%.

About United Bankshares, Inc.

As of September 30, 2021, United had consolidated assets of approximately $27.5 billion. United is the parent company of United Bank which has 222 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its September 30, 2021 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of September 30, 2021 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, tangible equity, 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 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, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, 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; risks relating to the merger with Community Bankers Trust, including the successful integration of operations of Community Bankers Trust; 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, 2020, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

EARNINGS SUMMARY:

 

September

2021

 

September

2020

 

September

2021

 

September

2020

Interest income

 

$

194,080

 

 

$

210,269

 

 

$

599,923

 

 

$

589,468

 

Interest expense

 

 

12,501

 

 

 

24,605

 

 

 

40,867

 

 

 

91,684

 

Net interest income

 

 

181,579

 

 

 

185,664

 

 

 

559,056

 

 

 

497,784

 

Provision for credit losses

 

 

(7,829

)

 

 

16,781

 

 

 

(16,565

)

 

 

89,811

 

Noninterest income

 

 

68,624

 

 

 

135,468

 

 

 

224,043

 

 

 

260,664

 

Noninterest expense

 

 

142,276

 

 

 

171,593

 

 

 

430,154

 

 

 

422,100

 

Income before income taxes

 

 

115,756

 

 

 

132,758

 

 

 

369,510

 

 

 

246,537

 

Income taxes

 

 

23,604

 

 

 

28,974

 

 

 

75,624

 

 

 

49,884

 

Net income

 

$

92,152

 

 

$

103,784

 

 

$

293,886

 

 

$

196,653

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.80

 

 

$

2.28

 

 

$

1.68

 

Diluted

 

 

0.71

 

 

 

0.80

 

 

 

2.27

 

 

 

1.68

 

Cash dividends

 

$

0.35

 

 

$

0.35

 

 

 

1.05

 

 

 

1.05

 

Book value

 

 

 

 

 

 

34.29

 

 

 

32.89

 

Closing market price

 

 

 

 

 

$

36.38

 

 

$

21.47

 

Common shares outstanding:

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

 

 

129,203,774

 

 

 

129,762,348

 

Weighted average-basic

 

 

128,762,815

 

 

 

129,373,154

 

 

 

128,716,450

 

 

 

116,876,402

 

Weighted average-diluted

 

 

128,960,220

 

 

 

129,454,966

 

 

 

128,934,282

 

 

 

116,944,594

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.33

%

 

 

1.56

%

 

 

1.46

%

 

 

1.12

%

Return on average shareholders’ equity

 

 

8.23

%

 

 

9.68

%

 

 

8.95

%

 

 

6.85

%

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

 

 

14.03

%

 

 

16.94

%

 

 

15.36

%

 

 

12.19

%

Average equity to average assets

 

 

16.18

%

 

 

16.14

%

 

 

16.27

%

 

 

16.34

%

Net interest margin

 

 

2.98

%

 

 

3.18

%

 

 

3.14

%

 

 

3.21

%

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

September 30

2021

 

September 30

2020

 

December 31

2020

 

June 30

2021

Assets

 

$

27,507,517

 

 

$

25,931,308

 

 

$

26,184,247

 

 

$

27,190,926

 

Earning assets

 

 

24,415,973

 

 

 

22,903,067

 

 

 

23,172,403

 

 

 

24,129,532

 

Loans & leases, net of unearned income

 

 

16,743,629

 

 

 

17,930,231

 

 

 

17,591,413

 

 

 

16,888,001

 

Loans held for sale

 

 

493,299

 

 

 

812,084

 

 

 

718,937

 

 

 

576,827

 

Investment securities

 

 

3,646,065

 

 

 

3,007,263

 

 

 

3,186,184

 

 

 

3,511,501

 

Total deposits

 

 

21,822,609

 

 

 

20,251,539

 

 

 

20,585,160

 

 

 

21,567,391

 

Shareholders’ equity

 

 

4,430,766

 

 

 

4,267,441

 

 

 

4,297,620

 

 

 

4,393,713

 

 

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 

June

 

March

 

September

 

September

 

2021

 

2020

 

2021

 

2021

 

2021

 

2020

Interest & Loan Fees Income (GAAP)

$

194,080

 

 

$

210,269

 

 

$

200,186

 

 

$

205,657

 

 

$

599,923

 

 

$

589,468

 

Tax equivalent adjustment

 

1,059

 

 

 

1,046

 

 

 

1,075

 

 

 

1,047

 

 

 

3,181

 

 

 

2,846

 

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

 

195,139

 

 

 

211,315

 

 

 

201,261

 

 

 

206,704

 

 

 

603,104

 

 

 

592,314

 

Interest Expense

 

12,501

 

 

 

24,605

 

 

 

13,669

 

 

 

14,697

 

 

 

40,867

 

 

 

91,684

 

Net Interest Income (FTE) (non-GAAP)

 

182,638

 

 

 

186,710

 

 

 

187,592

 

 

 

192,007

 

 

 

562,237

 

 

 

500,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

(7,829

)

 

 

16,781

 

 

 

(8,879

)

 

 

143

 

 

 

(16,565

)

 

 

89,811

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

4,269

 

 

 

3,574

 

 

 

4,193

 

 

 

3,763

 

 

 

12,225

 

 

 

10,318

 

Fees from brokerage services

 

3,883

 

 

 

3,066

 

 

 

3,654

 

 

 

4,323

 

 

 

11,860

 

 

 

8,633

 

Fees from deposit services

 

9,888

 

 

 

9,320

 

 

 

9,396

 

 

 

8,896

 

 

 

28,180

 

 

 

25,332

 

Bankcard fees and merchant discounts

 

1,473

 

 

 

1,226

 

 

 

1,368

 

 

 

1,064

 

 

 

3,905

 

 

 

2,937

 

Other charges, commissions, and fees

 

703

 

 

 

715

 

 

 

775

 

 

 

759

 

 

 

2,237

 

 

 

1,843

 

Income from bank-owned life insurance

 

2,556

 

 

 

2,059

 

 

 

1,658

 

 

 

1,403

 

 

 

5,617

 

 

 

5,738

 

Income from mortgage banking activities

 

42,012

 

 

 

109,457

 

 

 

36,943

 

 

 

65,395

 

 

 

144,350

 

 

 

195,301

 

Mortgage loan servicing income

 

2,429

 

 

 

2,345

 

 

 

2,386

 

 

 

2,355

 

 

 

7,170

 

 

 

3,879

 

Net gain on the sale of bank premises

 

0

 

 

 

2,229

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

2,229

 

Net gains on investment securities

 

82

 

 

 

860

 

 

 

24

 

 

 

2,609

 

 

 

2,715

 

 

 

2,566

 

Other noninterest income

 

1,329

 

 

 

617

 

 

 

2,449

 

 

 

2,006

 

 

 

5,784

 

 

 

1,888

 

Total Noninterest Income

 

68,624

 

 

 

135,468

 

 

 

62,846

 

 

 

92,573

 

 

 

224,043

 

 

 

260,664

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

67,459

 

 

 

84,455

 

 

 

68,557

 

 

 

72,412

 

 

 

208,428

 

 

 

197,660

 

Employee benefits

 

13,132

 

 

 

13,202

 

 

 

14,470

 

 

 

15,450

 

 

 

43,052

 

 

 

36,767

 

Net occupancy

 

10,339

 

 

 

10,944

 

 

 

10,101

 

 

 

10,941

 

 

 

31,381

 

 

 

30,324

 

Data processing

 

6,612

 

 

 

6,708

 

 

 

6,956

 

 

 

7,026

 

 

 

20,594

 

 

 

28,140

 

Amortization of intangibles

 

1,466

 

 

 

1,691

 

 

 

1,467

 

 

 

1,466

 

 

 

4,399

 

 

 

4,914

 

OREO expense

 

387

 

 

 

1,166

 

 

 

372

 

 

 

3,625

 

 

 

4,384

 

 

 

2,679

 

Equipment expense

 

7,286

 

 

 

5,616

 

 

 

5,830

 

 

 

6,044

 

 

 

19,160

 

 

 

14,465

 

FDIC insurance expense

 

1,920

 

 

 

2,700

 

 

 

1,800

 

 

 

2,000

 

 

 

5,720

 

 

 

7,882

 

Mortgage loan servicing expense and impairment

 

3,253

 

 

 

3,301

 

 

 

3,599

 

 

 

3,177

 

 

 

10,029

 

 

 

5,949

 

Prepayment penalties on FHLB borrowings

 

0

 

 

 

10,385

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

10,385

 

Other noninterest expense

 

30,422

 

 

 

31,425

 

 

 

25,799

 

 

 

26,786

 

 

 

83,007

 

 

 

82,935

 

Total Noninterest Expense

 

142,276

 

 

 

171,593

 

 

 

138,951

 

 

 

148,927

 

 

 

430,154

 

 

 

422,100

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

116,815

 

 

 

133,804

 

 

 

120,366

 

 

 

135,510

 

 

 

372,691

 

 

 

249,383

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

1,059

 

 

 

1,046

 

 

 

1,075

 

 

 

1,047

 

 

 

3,181

 

 

 

2,846

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

115,756

 

 

 

132,758

 

 

 

119,291

 

 

 

134,463

 

 

 

369,510

 

 

 

246,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

23,604

 

 

 

28,974

 

 

 

24,455

 

 

 

27,565

 

 

 

75,624

 

 

 

49,884

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

92,152

 

 

$

103,784

 

 

$

94,836

 

 

$

106,898

 

 

$

293,886

 

 

$

196,653

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

20.39

%

 

 

21.82

%

 

 

20.50

%

 

 

20.50

%

 

 

20.47

%

 

 

20.23

%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 2021

 

September 2020

 

September 30

 

June 30

 

December 31

 

September 30

 

 

Q-T-D Average

 

Q-T-D Average

 

2021

 

2021

 

2020

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

4,132,702

 

 

$

2,227,314

 

 

$

4,033,561

 

 

$

3,677,396

 

 

$

2,209,068

 

 

$

1,656,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

3,344,196

 

 

 

2,751,913

 

 

 

3,409,984

 

 

 

3,277,074

 

 

 

2,953,359

 

 

 

2,777,802

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

3,344,196

 

 

 

2,751,913

 

 

 

3,409,984

 

 

 

3,277,074

 

 

 

2,953,359

 

 

 

2,777,802

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,235

 

 

 

1,020

 

 

 

1,020

 

 

 

1,235

 

 

 

1,235

 

Less: Allowance for credit losses

 

 

(31

)

 

 

(14

)

 

 

(27

)

 

 

(31

)

 

 

(23

)

 

 

(21

)

Net held to maturity securities

 

 

989

 

 

 

1,221

 

 

 

993

 

 

 

989

 

 

 

1,212

 

 

 

1,214

 

Equity Securities

 

 

11,735

 

 

 

10,033

 

 

 

11,984

 

 

 

11,507

 

 

 

10,718

 

 

 

10,255

 

Other Investment Securities

 

 

222,765

 

 

 

253,302

 

 

 

223,104

 

 

 

221,931

 

 

 

220,895

 

 

 

217,992

 

Total Securities

 

 

3,579,685

 

 

 

3,016,469

 

 

 

3,646,065

 

 

 

3,511,501

 

 

 

3,186,184

 

 

 

3,007,263

 

Total Cash and Securities

 

 

7,712,387

 

 

 

5,243,783

 

 

 

7,679,626

 

 

 

7,188,897

 

 

 

5,395,252

 

 

 

4,663,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

445,983

 

 

 

668,874

 

 

 

493,299

 

 

 

576,827

 

 

 

718,937

 

 

 

812,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans & Leases

 

 

12,621,706

 

 

 

13,224,385

 

 

 

12,657,238

 

 

 

12,723,654

 

 

 

13,165,497

 

 

 

13,377,091

 

Mortgage Loans

 

 

2,916,877

 

 

 

3,542,829

 

 

 

2,884,542

 

 

 

2,946,352

 

 

 

3,197,274

 

 

 

3,345,048

 

Consumer Loans

 

 

1,221,578

 

 

 

1,258,803

 

 

 

1,229,552

 

 

 

1,251,646

 

 

 

1,259,812

 

 

 

1,245,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

16,760,161

 

 

 

18,026,017

 

 

 

16,771,332

 

 

 

16,921,652

 

 

 

17,622,583

 

 

 

17,967,520

 

Unearned income

 

 

(31,288

)

 

 

(39,391

)

 

 

(27,703

)

 

 

(33,651

)

 

 

(31,170

)

 

 

(37,289

)

Loans & Leases, net of unearned income

 

 

16,728,873

 

 

 

17,986,626

 

 

 

16,743,629

 

 

 

16,888,001

 

 

 

17,591,413

 

 

 

17,930,231

 

Allowance for Loan & Leases Losses

 

 

(217,472

)

 

 

(214,870

)

 

 

(210,891

)

 

 

(217,545

)

 

 

(235,830

)

 

 

(225,812

)

Net Loans

 

 

16,511,401

 

 

 

17,771,756

 

 

 

16,532,738

 

 

 

16,670,456

 

 

 

17,355,583

 

 

 

17,704,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Servicing Rights

 

 

22,479

 

 

 

20,462

 

 

 

22,836

 

 

 

22,540

 

 

 

20,955

 

 

 

20,413

 

Goodwill

 

 

1,810,040

 

 

 

1,795,682

 

 

 

1,810,040

 

 

 

1,810,040

 

 

 

1,796,848

 

 

 

1,794,886

 

Other Intangibles

 

 

23,409

 

 

 

30,375

 

 

 

22,524

 

 

 

23,990

 

 

 

26,923

 

 

 

28,243

 

Operating Lease Right-of-Use Asset

 

 

68,373

 

 

 

70,920

 

 

 

75,593

 

 

 

66,635

 

 

 

69,520

 

 

 

72,789

 

Other Real Estate Owned

 

 

17,618

 

 

 

28,592

 

 

 

16,696

 

 

 

18,474

 

 

 

22,595

 

 

 

25,696

 

Other Assets

 

 

826,020

 

 

 

785,179

 

 

 

854,165

 

 

 

813,067

 

 

 

777,634

 

 

 

808,982

 

Total Assets

 

$

27,437,710

 

 

$

26,415,623

 

 

$

27,507,517

 

 

$

27,190,926

 

 

$

26,184,247

 

 

$

25,931,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

24,362,333

 

 

$

23,424,890

 

 

$

24,415,973

 

 

$

24,129,532

 

 

$

23,172,403

 

 

$

22,903,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

13,361,016

 

 

$

12,951,290

 

 

$

13,332,418

 

 

$

13,283,937

 

 

$

13,179,900

 

 

$

12,946,792

 

Noninterest-bearing Deposits

 

 

8,471,744

 

 

 

7,178,769

 

 

 

8,490,191

 

 

 

8,283,454

 

 

 

7,405,260

 

 

 

7,304,747

 

Total Deposits

 

 

21,832,760

 

 

 

20,130,059

 

 

 

21,822,609

 

 

 

21,567,391

 

 

 

20,585,160

 

 

 

20,251,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

123,526

 

 

 

156,502

 

 

 

123,018

 

 

 

127,745

 

 

 

142,300

 

 

 

148,357

 

Long-term Borrowings

 

 

813,976

 

 

 

1,616,647

 

 

 

813,851

 

 

 

814,022

 

 

 

864,369

 

 

 

924,674

 

Total Borrowings

 

 

937,502

 

 

 

1,773,149

 

 

 

936,869

 

 

 

941,767

 

 

 

1,006,669

 

 

 

1,073,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

72,389

 

 

 

74,640

 

 

 

80,518

 

 

 

70,546

 

 

 

73,213

 

 

 

76,604

 

Other Liabilities

 

 

154,952

 

 

 

174,664

 

 

 

236,755

 

 

 

217,509

 

 

 

221,585

 

 

 

262,693

 

Total Liabilities

 

 

22,997,603

 

 

 

22,152,512

 

 

 

23,076,751

 

 

 

22,797,213

 

 

 

21,886,627

 

 

 

21,663,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,440,107

 

 

 

4,263,111

 

 

 

4,430,766

 

 

 

4,393,713

 

 

 

4,297,620

 

 

 

4,267,441

 

Total Shareholders' Equity

 

 

4,440,107

 

 

 

4,263,111

 

 

 

4,430,766

 

 

 

4,393,713

 

 

 

4,297,620

 

 

 

4,267,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

27,437,710

 

 

$

26,415,623

 

 

$

27,507,517

 

 

$

27,190,926

 

 

$

26,184,247

 

 

$

25,931,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

14,298,518

 

 

$

14,724,439

 

 

$

14,269,287

 

 

$

14,225,704

 

 

$

14,186,569

 

 

$

14,019,823

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 

June

 

March

 

September

 

September

Quarterly/Year-to-Date Share Data:

2021

 

2020

 

2021

 

2021

 

2021

 

2020

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.80

 

 

$

0.73

 

 

$

0.83

 

 

$

2.28

 

 

$

1.68

 

Diluted

$

0.71

 

 

$

0.80

 

 

$

0.73

 

 

$

0.83

 

 

$

2.27

 

 

$

1.68

 

Common Dividend Declared Per Share

$

0.35

 

 

$

0.35

 

 

$

0.35

 

 

$

0.35

 

 

$

1.05

 

 

$

1.05

 

High Common Stock Price

$

37.12

 

 

$

30.07

 

 

$

42.50

 

 

$

41.61

 

 

$

42.50

 

 

$

39.07

 

Low Common Stock Price

$

31.74

 

 

$

20.57

 

 

$

36.19

 

 

$

31.57

 

 

$

31.57

 

 

$

19.67

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

128,762,815

 

 

 

129,373,154

 

 

 

128,750,851

 

 

 

128,635,740

 

 

 

128,716,450

 

 

 

116,876,402

 

Diluted

 

128,960,220

 

 

 

129,454,966

 

 

 

129,033,988

 

 

 

128,890,861

 

 

 

128,934,282

 

 

 

116,944,594

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

45,271

 

 

$

45,414

 

 

$

45,268

 

 

$

45,254

 

 

$

135,793

 

 

$

126,434

 

Dividend Payout Ratio

 

49.13

%

 

 

43.76

%

 

 

47.73

%

 

 

42.33

%

 

 

46.21

%

 

 

64.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

September 30

 

June 30

 

March 31

EOP Share Data:

 

 

 

 

2021

 

2020

 

2021

 

2021

Book Value Per Share

 

 

 

 

$

34.29

 

 

$

32.89

 

 

$

34.01

 

 

$

33.54

 

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

 

 

 

 

$

20.11

 

 

$

18.84

 

 

$

19.81

 

 

$

19.38

 

52-week High Common Stock Price

 

 

 

 

$

42.50

 

 

$

40.70

 

 

$

42.50

 

 

$

41.61

 

Date

 

 

 

 

05/18/21

 

11/05/19

 

05/18/21

 

03/18/21

52-week Low Common Stock Price

 

 

 

 

$

21.19

 

 

$

19.67

 

 

$

20.57

 

 

$

20.57

 

Date

 

 

 

 

10/01/20

 

03/23/20

 

09/25/20

 

09/25/20

 

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

129,203,774

 

 

 

129,762,348

 

 

 

129,203,593

 

 

 

129,175,800

 

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

2,986

 

 

 

3,137

 

 

 

3,012

 

 

 

3,033

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

$

4,430,766

 

 

$

4,267,441

 

 

$

4,393,713

 

 

$

4,332,698

 

Less: Total Intangibles

 

 

 

 

 

(1,832,564

)

 

 

(1,823,129

)

 

 

(1,834,030

)

 

 

(1,829,495

)

Tangible Equity (non-GAAP)

 

 

 

 

$

2,598,202

 

 

$

2,444,312

 

 

$

2,559,683

 

 

$

2,503,203

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

129,203,774

 

 

 

129,762,348

 

 

 

129,203,593

 

 

 

129,175,800

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

$

20.11

 

 

$

18.84

 

 

$

19.81

 

 

$

19.38

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September

 

September

 

June

 

March

 

September

 

September

 

 

 

2021

 

2020

 

2021

 

2021

 

2021

 

2020

 

Selected Yields and Net Interest Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loans and Loans held for sale

 

 

4.15

%

 

 

4.17

%

 

 

4.18

%

 

 

4.26

%

 

 

4.20

%

 

 

4.30

%

 

Investment Securities

 

 

1.71

%

 

 

2.17

%

 

 

1.87

%

 

 

1.93

%

 

 

1.83

%

 

 

2.42

%

 

Money Market Investments/FFS

 

 

0.26

%

 

 

0.42

%

 

 

0.24

%

 

 

0.34

%

 

 

0.28

%

 

 

0.75

%

 

Average Earning Assets Yield

 

 

3.18

%

 

 

3.59

%

 

 

3.37

%

 

 

3.56

%

 

 

3.37

%

 

 

3.80

%

 

Interest-bearing Deposits

 

 

0.29

%

 

 

0.54

%

 

 

0.33

%

 

 

0.37

%

 

 

0.33

%

 

 

0.76

%

 

Short-term Borrowings

 

 

0.54

%

 

 

0.44

%

 

 

0.54

%

 

 

0.51

%

 

 

0.53

%

 

 

0.75

%

 

Long-term Borrowings

 

 

1.23

%

 

 

1.65

%

 

 

1.22

%

 

 

1.23

%

 

 

1.23

%

 

 

1.86

%

 

Average Liability Costs

 

 

0.35

%

 

 

0.66

%

 

 

0.39

%

 

 

0.42

%

 

 

0.38

%

 

 

0.92

%

 

Net Interest Spread

 

 

2.83

%

 

 

2.93

%

 

 

2.98

%

 

 

3.14

%

 

 

2.99

%

 

 

2.88

%

 

Net Interest Margin

 

 

2.98

%

 

 

3.18

%

 

 

3.14

%

 

 

3.30

%

 

 

3.14

%

 

 

3.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

 

1.33

%

 

 

1.56

%

 

 

1.41

%

 

 

1.64

%

 

 

1.46

%

 

 

1.12

%

 

Return on Average Shareholders’ Equity

 

 

8.23

%

 

 

9.68

%

 

 

8.69

%

 

 

9.97

%

 

 

8.95

%

 

 

6.85

%

 

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

 

 

14.03

%

 

 

16.94

%

 

 

14.95

%

 

 

17.20

%

 

 

15.36

%

 

 

12.19

%

 

Efficiency Ratio

 

 

56.86

%

 

 

53.43

%

 

 

55.72

%

 

 

52.53

%

 

 

54.93

%

 

 

55.65

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

92,152

 

 

$

103,784

 

 

$

94,836

 

 

$

106,898

 

 

$

293,886

 

 

$

196,653

 

 

(b) Number of Days

 

 

92

 

 

 

92

 

 

 

91

 

 

 

90

 

 

 

273

 

 

 

274

 

 

Average Total Shareholders' Equity (GAAP)

 

$

4,440,107

 

 

$

4,263,111

 

 

$

4,378,898

 

 

$

4,346,750

 

 

$

4,389,087

 

 

$

3,835,617

 

 

Less: Average Total Intangibles

 

 

(1,833,449

)

 

 

(1,826,057

)

 

 

(1,834,920

)

 

 

(1,825,639

)

 

 

(1,831,364

)

 

 

(1,681,202

)

 

(c) Average Tangible Equity (non-GAAP)

 

$

2,606,658

 

 

$

2,437,054

 

 

$

2,543,978

 

 

$

2,521,111

 

 

$

2,557,723

 

 

$

2,154,415

 

 

Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)

 

 

14.03

%

 

 

16.94

%

 

 

14.95

%

 

 

17.20

%

 

 

15.36

%

 

 

12.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

September 30

2021

 

December 31

2020

 

September 30

2020

 

June 30

2021

 

March 31

2021

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

76.73

%

 

 

85.46

%

 

 

88.54

%

 

 

78.30

%

 

 

81.16

%

 

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

 

 

 

 

1.26

%

 

 

1.34

%

 

 

1.26

%

 

 

1.29

%

 

 

1.33

%

 

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

 

 

 

 

1.41

%

 

 

1.45

%

 

 

1.35

%

 

 

1.41

%

 

 

1.45

%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

0.23

%

 

 

0.36

%

 

 

0.40

%

 

 

0.24

%

 

 

0.28

%

 

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

 

 

 

 

0.09

%

 

 

0.08

%

 

 

0.07

%

 

 

0.08

%

 

 

0.09

%

 

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

 

 

 

 

0.54

%

 

 

0.75

%

 

 

0.85

%

 

 

0.61

%

 

 

0.67

%

 

Non-performing Assets/ Total Assets

 

 

 

 

0.39

%

 

 

0.59

%

 

 

0.69

%

 

 

0.45

%

 

 

0.50

%

 

Primary Capital Ratio

 

 

 

 

16.82

%

 

 

17.22

%

 

 

17.23

%

 

 

16.89

%

 

 

16.80

%

 

Shareholders' Equity Ratio

 

 

 

 

16.11

%

 

 

16.41

%

 

 

16.46

%

 

 

16.16

%

 

 

16.03

%

 

Price / Book Ratio

 

 

 

 

1.06

 

x

 

0.97

 

x

 

0.65

 

x

 

1.07

 

x

 

1.15

 

x

Price / Earnings Ratio

 

 

 

 

12.76

 

x

 

11.35

 

x

 

6.70

 

x

 

12.42

 

x

 

11.63

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September

 

September

 

June

 

March

 

September

 

September

 

Mortgage Banking Segment Data:

 

2021

 

2020

 

2021

 

2021

 

2021

 

2020

Applications

 

$

1,893,870

 

 

$

3,460,687

 

 

$

2,029,846

 

 

$

2,630,426

 

 

$

6,554,142

 

 

$

7,703,695

 

 

Loans originated

 

 

1,385,871

 

 

 

2,071,717

 

 

 

1,658,128

 

 

 

1,910,619

 

 

 

4,954,618

 

 

 

4,668,963

 

 

Loans sold

 

$

1,470,928

 

 

$

1,898,539

 

 

$

1,877,772

 

 

$

1,817,884

 

 

$

5,166,584

 

 

$

4,327,994

 

 

Purchase money % of loans closed

 

 

69

%

 

 

48

%

 

 

69

%

 

 

43

%

 

 

59

%

 

 

46

%

 

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

 

 

3.00

%

 

 

4.26

%

 

 

2.90

%

 

 

4.16

%

 

 

3.37

%

 

 

3.30

%

 

Net interest income

 

$

2,367

 

 

$

2,740

 

 

$

2,871

 

 

$

2,650

 

 

$

7,888

 

 

$

5,935

 

 

Other income

 

 

45,023

 

 

 

110,900

 

 

 

39,765

 

 

 

67,507

 

 

 

152,295

 

 

 

203,103

 

 

Other expense

 

 

31,787

 

 

 

43,417

 

 

 

36,391

 

 

 

41,183

 

 

 

109,361

 

 

 

99,435

 

 

Income taxes

 

 

3,179

 

 

 

14,823

 

 

 

1,280

 

 

 

5,940

 

 

 

10,399

 

 

 

22,042

 

 

Net income

 

$

12,424

 

 

$

55,400

 

 

$

4,965

 

 

$

23,034

 

 

$

40,423

 

 

$

87,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

June 30

 

March 31

 

Period End Mortgage Banking Segment Data:

 

 

 

2021

 

2020

 

2020

 

2021

 

2021

 

Locked pipeline

 

 

 

$

648,706

 

 

$

989,640

 

 

$

1,398,898

 

 

$

660,258

 

 

$

979,842

 

 

Balance of loans serviced

 

 

 

$

3,723,206

 

 

$

3,587,953

 

 

$

3,551,157

 

 

$

3,674,023

 

 

$

3,585,890

 

 

Number of loans serviced

 

 

 

 

25,583

 

 

 

25,614

 

 

 

25,813

 

 

 

25,526

 

 

 

25,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

June 30

 

March 31

 

Asset Quality Data:

 

 

 

2021

 

2020

 

2020

 

2021

 

2021

 

EOP Non-Accrual Loans

 

 

 

$

37,689

 

 

$

62,718

 

 

$

71,312

 

 

$

41,182

 

 

$

48,985

 

 

EOP 90-Day Past Due Loans

 

 

 

 

14,827

 

 

 

13,832

 

 

 

12,583

 

 

 

14,135

 

 

 

15,719

 

 

EOP Restructured Loans (1)

 

 

 

 

37,752

 

 

 

55,657

 

 

 

68,381

 

 

 

47,271

 

 

 

51,529

 

 

Total EOP Non-performing Loans

 

 

 

$

90,268

 

 

$

132,207

 

 

$

152,276

 

 

$

102,588

 

 

$

116,233

 

 

EOP Other Real Estate Owned

 

 

 

 

16,696

 

 

 

22,595

 

 

 

25,696

 

 

 

18,474

 

 

 

18,690

 

 

Total EOP Non-performing Assets

 

 

 

$

106,964

 

 

$

154,802

 

 

$

177,972

 

 

$

121,062

 

 

$

134,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September

 

September

 

June

 

March

 

September

 

September

 

Allowance for Loan Losses:

 

2021

 

2020

 

2021

 

2021

 

2021

 

2020

Beginning Balance

 

$

217,545

 

 

$

215,121

 

 

$

231,582

 

 

$

235,830

 

 

$

235,830

 

 

$

77,057

 

 

Cumulative Effect Adjustment for CECL

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

57,442

 

 

 

 

 

217,545

 

 

 

215,121

 

 

 

231,582

 

 

 

235,830

 

 

 

235,830

 

 

 

134,499

 

 

Initial allowance for acquired PCD loans

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

18,635

 

 

Gross Charge-offs

 

 

(2,004

)

 

 

(8,468

)

 

 

(6,131

)

 

 

(6,957

)

 

 

(15,092

)

 

 

(22,863

)

 

Recoveries

 

 

3,173

 

 

 

2,820

 

 

 

910

 

 

 

2,415

 

 

 

6,498

 

 

 

6,183

 

 

Net Recoveries (Charge-offs)

 

 

1,169

 

 

 

(5,648

)

 

 

(5,221

)

 

 

(4,542

)

 

 

(8,594

)

 

 

(16,680

)

 

Provision for Loan & Lease Losses

 

 

(7,823

)

 

 

16,339

 

 

 

(8,816

)

 

 

294

 

 

 

(16,345

)

 

 

89,358

 

 

Ending Balance

 

 

210,891

 

 

 

225,812

 

 

 

217,545

 

 

 

231,582

 

 

 

210,891

 

 

 

225,812

 

 

Reserve for lending-related commitments

 

 

25,191

 

 

 

15,960

 

 

 

20,897

 

 

 

20,024

 

 

 

25,191

 

 

 

15,960

 

 

Allowance for Credit Losses (2)

 

$

236,082

 

 

$

241,772

 

 

$

238,442

 

 

$

251,606

 

 

$

236,082

 

 

$

241,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Restructured loans with an aggregate balance of $24,662, $53,665, $32,471, $38,023 and $41,185 at September 30, 2021, September 30, 2020, June 30, 2021, March 31, 2021 and December 31, 2020, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. A restructured loan with a balance of $46 thousand at June 30, 2021 was 90 days past due, but not included in “EOP Non-Accrual Loans” above.

 

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

 

 

Contacts

W. Mark Tatterson

Chief Financial Officer

(800) 445-1347 ext. 8716

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