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United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2023

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter of 2023 of $96.2 million, or $0.71 per diluted share, as compared to earnings of $92.5 million, or $0.68 per diluted share, for the second quarter of 2023. Earnings for the third quarter of 2022 were $102.6 million, or $0.76 per diluted share.

“Third quarter results saw accelerated growth and profitability, while maintaining our strong capital, liquidity, and asset quality positions,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “I’m pleased with the resilient performance we continue to deliver in this environment.”

Third quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.31%, 8.14% and 13.71%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.26%, 7.96% and 13.47%, respectively, for the second quarter of 2023. Annualized returns on average assets, average equity and average tangible equity were 1.41%, 8.96% and 15.46%, respectively, for the third quarter of 2022.

Third quarter of 2023 compared to the second quarter of 2023

Net interest income for the third quarter of 2023 increased $992 thousand, or less than 1%, from the second quarter of 2023. 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 2023 increased $717 thousand, or less than 1%, from the second quarter of 2023. Net interest income and tax-equivalent net interest income for the third quarter of 2023 benefited from the impact of rising market interest rates on earning assets, a change in the asset mix to higher earning assets and lower average balances of long-term borrowings. Partially offsetting the increase in net interest income and tax-equivalent net interest income was higher interest expense primarily driven by the impact of deposit rate repricing and higher average balances of interest-bearing deposits. The yield on average earning assets increased 19 basis points from the second quarter of 2023 to 5.52%. Average net loans and loans held for sale increased $245.6 million from the second quarter of 2023 and the yield on average net loans and loans held for sale increased 14 basis points to 5.92% for the third quarter of 2023. Average investment securities decreased $456.8 million from the second quarter of 2023 and average short-term investments decreased $141.8 million from the second quarter of 2023. Average long-term borrowings decreased $716.7 million from the second quarter of 2023. The yield on average interest-bearing deposits increased 33 basis points to 2.70% and average interest-bearing deposits increased $473.5 million from the second quarter of 2023. The net interest margin of 3.54% for the third quarter of 2023 was an increase of 3 basis points from the net interest margin of 3.51% for the second quarter of 2023.

The provision for credit losses was $5.9 million for the third quarter of 2023 as compared to $11.4 million for the second quarter of 2023. The lower amount of provision expense for the third quarter of 2023 as compared to the second quarter of 2023 was mainly due to a decrease in qualitative adjustments and the impact of reasonable and supportable forecasts of future macroeconomic conditions, partially offset by additional provision expense due to loan growth.

Noninterest income for the third quarter of 2023 decreased $1.5 million, or 4%, from the second quarter of 2023. The decrease in noninterest income was primarily due to a decrease in mortgage loan servicing income of $9.0 million partially offset by lower net losses on investment securities of $7.2 million. During the second quarter of 2023, United sold mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of approximately $2.0 billion at a gain of $8.1 million. The remaining decrease in mortgage loan servicing income from the second quarter of 2023 was due to lower MSR balances in the third quarter of 2023 as a result of the sale. Additionally, during the second quarter of 2023, United sold approximately $187.0 million of available for sale (“AFS”) investment securities at a loss of $7.2 million.

Noninterest expense for the third quarter of 2023 decreased $58 thousand, or less than 1%, from the second quarter of 2023. The decrease in noninterest expense from the second quarter of 2023 was primarily due to a decrease in the expense for the reserve for unfunded loan commitments of $981 thousand mainly driven by a decrease in the outstanding balance of loan commitments at quarter-end. This decrease in noninterest expense was partially offset by an increase in other noninterest expense of $966 thousand mainly driven by higher amounts of certain general operating expenses.

For the third quarter of 2023, income tax expense was $24.8 million as compared to $23.5 million for the second quarter of 2023. The increase of $1.3 million was due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.5% and 20.2% for the third quarter of 2023 and second quarter of 2023, respectively.

Third quarter of 2023 compared to the third quarter of 2022

Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, as compared to earnings of $102.6 million, or $0.76 per diluted share, for the third quarter of 2022.

Net interest income for the third quarter of 2023 decreased $12.2 million, or 5%, from the third quarter of 2022. Tax-equivalent net interest income for the third quarter of 2023 decreased $12.4 million, or 5%, from the third quarter of 2022. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing, higher average balances and cost of long-term borrowings, lower acquired loan accretion income and lower income from Paycheck Protection Program (“PPP”) loan fees. These decreases were partially offset by the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. The average cost of funds increased 231 basis points from the third quarter of 2022 to 2.87% primarily due to increases in the yield on average interest-bearing deposits of 224 basis points and in the yield on average long-term borrowings of 227 basis points. Average long-term borrowings increased $695.8 million from the third quarter of 2022. Acquired loan accretion income decreased $1.7 million from the third quarter of 2022 to $2.3 million. Net PPP loan fee income decreased $1.5 million from the third quarter of 2022. The yield on average earning assets increased 138 basis points from the third quarter of 2022 to 5.52%. Average earning assets for the third quarter of 2023 increased $329.7 million, or 1%, from the third quarter of 2022 due to a $1.3 billion increase in average net loans and loans held for sale partially offset by an $882.7 million decrease in average investment securities. The net interest margin of 3.54% for the third quarter of 2023 was a decrease of 24 basis points from the net interest margin of 3.78% for the third quarter of 2022.

The provision for credit losses was $5.9 million for the third quarter of 2023 as compared to $7.7 million for the third quarter of 2022. The lower amount of provision expense for the third quarter of 2023 as compared to the third quarter of 2022 was mainly due to the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the third quarter of 2023 was $33.7 million, an increase of $912 thousand, or 3%, from the third quarter of 2022 primarily due to increases of $1.1 million in income from mortgage banking activities and $1.1 million in income from bank-owned life insurance (“BOLI”) partially offset by a decrease in mortgage loan servicing income of $1.5 million. The increase in income from mortgage banking activities was mainly due to a higher quarter-end valuation of our mortgage derivatives and mortgage loans held for sale. The increase in BOLI income was primarily due to the impact of lower market values of underlying investments in the third quarter of 2022 and due to higher amounts of death benefits recognized in the third quarter of 2023. The decrease in mortgage loan servicing income was mainly driven by lower MSR balances primarily as a result of the sale.

Noninterest expense for the third quarter of 2023 was $135.2 million, a decrease of $2.0 million, or 1%, from the third quarter of 2022 primarily due to decreases of $1.9 million in other noninterest expense, $1.5 million in other real estate owned (“OREO”) expense and $796 thousand in mortgage loan servicing expense partially offset by increases in employee benefits of $2.2 million, FDIC insurance expense of $1.5 million and higher amounts of certain general operating expenses. Other noninterest expense for the third quarter of 2022 included an accrual of $5.0 million related to a litigation matter with a former commercial customer. The decrease in OREO expense was primarily due to fewer write-downs on OREO properties. The decrease in mortgage loan servicing expense was mainly driven by lower MSR balances. The increase in employee benefits was primarily due to higher postretirement benefit costs and higher health insurance costs. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

For the third quarter of 2023, income tax expense was $24.8 million as compared to $25.9 million for the third quarter of 2022. The decrease of $1.1 million was due to lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 20.5% and 20.2% for the third quarter of 2023 and third quarter of 2022, respectively.

First nine months of 2023 compared to the first nine months of 2022

Earnings for the first nine months of 2023 were $286.9 million, or $2.12 per diluted share, as compared to earnings of $279.9 million, or $2.06 per diluted share, for the first nine months of 2022.

Net interest income for the first nine months of 2023 increased $43.2 million, or 7%, from the first nine months of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the first nine months of 2023 increased $43.0 million, or 7%, from the first nine months of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing, higher average balances and cost of long-term borrowings, lower income from PPP loan fees and lower acquired loan accretion income. The yield on average earning assets increased 169 basis points from the first nine months of 2022 to 5.32%. Average earning assets for the first nine months of 2023 increased $317.3 million, or 1%, from the first nine months of 2022 due to a $1.7 billion increase in average net loans and loans held for sale partially offset by a $959.9 million decrease in average short-term investments and a $411.1 million decrease in average investment securities. The average cost of funds increased 218 basis points from the first nine months of 2022 to 2.56% primarily due to increases in the yield on average interest-bearing deposits of 200 basis points and in the yield on average long-term borrowings of 272 basis points. Average long-term borrowings increased $1.3 billion from the first nine months of 2022. Net PPP loan fee income decreased $8.8 million from the first nine months of 2022. Acquired loan accretion income was $8.5 million and $13.6 million for the first nine months of 2023 and 2022, respectively, a decrease of $5.1 million. The net interest margin of 3.56% for the first nine months of 2023 was an increase of 18 basis points from the net interest margin of 3.38% for the first nine months of 2022.

The provision for credit losses was $24.3 million for the first nine months 2023 as compared to $2.5 million for the first nine months of 2022. The higher amount of provision expense for the first nine months of 2023 as compared to the first nine months of 2022 was mainly due to an increase in qualitative adjustments and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the first nine months of 2023 was $101.6 million, which was a decrease of $20.8 million, or 17%, from the first nine months of 2022. Income from mortgage banking activities decreased $16.2 million from the first nine months of 2022 mainly due to lower mortgage loan origination and sale volume and a lower margin on loans sold. Additionally, net losses on investment securities were $7.9 million for the first nine months of 2023 as compared to net gains on investment securities of $725 thousand for the first nine months of 2022 mainly driven by the loss on sale of AFS investment securities in the second quarter of 2023. The decrease in noninterest income was partially offset by a $5.9 million increase in mortgage loan servicing income mainly driven by the gain on sale of MSRs in the second quarter of 2023.

Noninterest expense for the first nine months of 2023 was $407.9 million, a decrease of $9.6 million, or 2%, from the first nine months of 2022 driven by decreases in employee compensation of $11.9 million and in the expense for the reserve for unfunded loan commitments of $10.7 million partially offset by increases in other noninterest expense of $5.9 million and FDIC insurance expense of $5.0 million. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

For the first nine months of 2023, income tax expense was $72.7 million as compared to $69.5 million for the first nine months of 2022 primarily due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.2% for the first nine months of 2023 and 19.9% for the first nine months of 2022.

Credit Quality

United’s asset quality continues to be sound. At September 30, 2023, non-performing loans were $42.7 million, or 0.20% of loans & leases, net of unearned income. Total non-performing assets were $45.9 million, including OREO of $3.2 million, or 0.16% of total assets at September 30, 2023. At December 31, 2022, non-performing loans were $58.6 million, or 0.29% of loans & leases, net of unearned income. Total non-performing assets were $60.7 million, including OREO of $2.1 million, or 0.21% of total assets at December 31, 2022.

On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 non-performing loans and non-performing assets noted above included $9.1 million of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-day past due are included in the respective non-performing loan and non-performing asset categories for periods subsequent to adoption.

As of September 30, 2023, the allowance for loan & lease losses was $254.9 million, or 1.21% of loans & leases, net of unearned income, as compared to $234.7 million, or 1.14% of loans & leases, net of unearned income, at December 31, 2022. Net charge-offs were $1.8 million for both the third quarter of 2023 and 2022. Net charge-offs were $4.1 million for the first nine months of 2023 compared to net recoveries of $1.1 million for the first nine months of 2022. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.03% and 0.04% for the third quarter of 2023 and 2022, respectively. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.03% and (0.01)% for the first nine months of 2023 and 2022, respectively. Net charge-offs were $1.2 million for the second quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.2% at September 30, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.0%, 13.0% and 11.3%, respectively. The September 30, 2023 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the first nine months of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 2.3 million shares of its common stock at an average price per share of $34.69. United did not repurchase any shares of its common stock during the first nine months of 2023.

About United Bankshares, Inc.

As of September 30, 2023, United had consolidated assets of approximately $29.2 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its September 30, 2023 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, 2023 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; changes in legislation or regulatory requirements; and the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events. 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, 2022, 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

2023

September

2022

June

2023

September

2023

September

2022

Interest income

$

356,910

$

263,683

$

345,932

$

1,032,145

$

694,249

Interest expense

 

128,457

 

23,061

 

118,471

 

341,911

 

47,222

Net interest income

 

228,453

 

240,622

 

227,461

 

690,234

 

647,027

Provision for credit losses

 

5,948

 

7,671

 

11,440

 

24,278

 

2,454

Noninterest income

 

33,661

 

32,749

 

35,178

 

101,583

 

122,382

Noninterest expense

 

135,230

 

137,196

 

135,288

 

407,937

 

417,545

Income before income taxes

 

120,936

 

128,504

 

115,911

 

359,602

 

349,410

Income taxes

 

24,779

 

25,919

 

23,452

 

72,679

 

69,548

Net income

$

96,157

$

102,585

$

92,459

$

286,923

$

279,862

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$

0.71

$

0.76

$

0.68

$

2.13

$

2.07

Diluted

 

0.71

 

0.76

 

0.68

 

2.12

 

2.06

Cash dividends

$

0.36

$

0.36

 

0.36

 

1.08

 

1.08

Book value

 

 

 

34.37

 

34.45

 

32.98

Closing market price

 

 

$

29.67

$

27.59

$

35.75

Common shares outstanding:

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

134,934,858

 

134,933,015

 

134,631,647

Weighted average-basic

 

134,685,041

 

134,182,248

 

134,683,010

 

134,493,059

 

134,947,674

Weighted average-diluted

 

134,887,776

 

134,553,565

 

134,849,818

 

134,733,055

 

135,251,299

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

Return on average assets

 

1.31%

 

1.41%

 

1.26%

 

1.31%

 

1.29%

Return on average shareholders’ equity

 

8.14%

 

8.96%

 

7.96%

 

8.27%

 

8.07%

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

 

13.71%

 

15.46%

 

13.47%

 

14.03%

 

13.73%

Average equity to average assets

 

16.12%

 

15.75%

 

15.83%

 

15.81%

 

15.95%

Net interest margin

 

3.54%

 

3.78%

 

3.51%

 

3.56%

 

3.38%

 

 

 

 

 

 

PERIOD END BALANCES:

 

September 30

2023

December 31

2022

September 30

2022

June 30

2023

Assets

 

$

29,224,794

$

29,489,380

$

29,048,475

$

29,694,651

Earning assets

 

 

25,883,462

 

26,135,400

 

25,648,264

 

26,335,600

Loans & leases, net of unearned income

 

 

21,097,883

 

20,558,166

 

19,700,080

 

20,764,291

Loans held for sale

 

 

59,614

 

56,879

 

210,075

 

91,296

Investment securities

 

 

4,066,299

 

4,872,604

 

4,923,694

 

4,342,714

Total deposits

 

 

22,676,854

 

22,303,166

 

22,863,377

 

22,369,753

Shareholders’ equity

 

 

4,648,878

 

4,516,193

 

4,440,086

 

4,637,043

 

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

 

2023

2022

2023

2023

2023

2022

Interest & Loan Fees Income (GAAP)

$

356,910

$

263,683

$

345,932

$

329,303

$

1,032,145

$

694,249

Tax equivalent adjustment

 

869

 

1,105

 

1,144

 

1,135

 

3,148

 

3,318

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

 

357,779

 

264,788

 

347,076

 

330,438

 

1,035,293

 

697,567

Interest Expense

 

128,457

 

23,061

 

118,471

 

94,983

 

341,911

 

47,222

Net Interest Income (FTE) (non-GAAP)

 

229,322

 

241,727

 

228,605

 

235,455

 

693,382

 

650,345

 

 

 

 

 

 

 

Provision for Credit Losses

 

5,948

 

7,671

 

11,440

 

6,890

 

24,278

 

2,454

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

Fees from trust services

 

4,514

 

4,384

 

4,516

 

4,780

 

13,810

 

12,805

Fees from brokerage services

 

4,433

 

4,016

 

3,918

 

4,200

 

12,551

 

12,683

Fees from deposit services

 

9,282

 

10,069

 

9,325

 

9,362

 

27,969

 

31,047

Bankcard fees and merchant discounts

 

1,676

 

1,857

 

1,707

 

1,707

 

5,090

 

4,907

Other charges, commissions, and fees

 

850

 

918

 

949

 

1,138

 

2,937

 

2,462

Income from bank-owned life insurance

 

2,562

 

1,472

 

2,022

 

1,891

 

6,475

 

7,786

Income from mortgage banking activities

 

7,556

 

6,422

 

7,907

 

6,384

 

21,847

 

38,070

Mortgage loan servicing income

 

846

 

2,302

 

9,841

 

2,276

 

12,963

 

7,017

Net (losses) gains on investment securities

 

(181)

 

(206)

 

(7,336)

 

(405)

 

(7,922)

 

725

Other noninterest income

 

2,123

 

1,515

 

2,329

 

1,411

 

5,863

 

4,880

Total Noninterest Income

 

33,661

 

32,749

 

35,178

 

32,744

 

101,583

 

122,382

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

Employee compensation

 

59,064

 

59,618

 

58,502

 

55,414

 

172,980

 

184,871

Employee benefits

 

12,926

 

10,750

 

12,236

 

13,435

 

38,597

 

35,648

Net occupancy

 

11,494

 

11,281

 

11,409

 

11,833

 

34,736

 

33,674

Data processing

 

7,405

 

7,614

 

7,256

 

7,473

 

22,134

 

22,534

Amortization of intangibles

 

1,279

 

1,379

 

1,279

 

1,279

 

3,837

 

4,137

OREO expense

 

185

 

1,708

 

315

 

667

 

1,167

 

1,936

Net losses (gains) on the sale of OREO properties

 

93

 

125

 

16

 

(43)

 

66

 

(362)

Equipment expense

 

7,170

 

7,807

 

8,026

 

6,996

 

22,192

 

22,452

FDIC insurance expense

 

4,598

 

3,063

 

4,570

 

4,587

 

13,755

 

8,740

Mortgage loan servicing expense and impairment

 

1,051

 

1,847

 

1,699

 

1,884

 

4,634

 

5,273

Expense for the reserve for unfunded loan commitments

 

(3,002)

 

(2,881)

 

(2,021)

 

2,600

 

(2,423)

 

8,255

Other noninterest expense

 

32,967

 

34,885

 

32,001

 

31,294

 

96,262

 

90,387

Total Noninterest Expense

 

135,230

 

137,196

 

135,288

 

137,419

 

407,937

 

417,545

 

 

 

 

 

 

 

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

 

121,805

 

129,609

 

117,055

 

123,890

 

362,750

 

352,728

 

 

 

 

 

 

 

Tax equivalent adjustment

 

869

 

1,105

 

1,144

 

1,135

 

3,148

 

3,318

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

120,936

 

128,504

 

115,911

 

122,755

 

359,602

 

349,410

 

 

 

 

 

 

 

Taxes

 

24,779

 

25,919

 

23,452

 

24,448

 

72,679

 

69,548

 

 

 

 

 

 

 

Net Income

$

96,157

$

102,585

$

92,459

$

98,307

$

286,923

$

279,862

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

20.49%

 

20.17%

 

20.23%

 

19.92%

 

20.21%

 

19.90%

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 2023

 

September 2022

 

September 30

 

December 31

 

September 30

 

June 30

 

 

Q-T-D Average

Q-T-D Average

2023

2022

 

2022

 

2023

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

1,133,432

 

$

1,260,311

 

$

1,184,054

 

$

1,176,652

 

$

1,356,347

 

$

1,692,357

Securities Available for Sale

 

 

3,885,870

 

 

4,826,072

 

 

3,749,357

 

 

4,541,925

 

 

4,648,087

 

 

4,005,324

Less: Allowance for credit losses

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

Net available for sale securities

 

 

3,885,870

 

 

4,826,072

 

 

3,749,357

 

 

4,541,925

 

 

4,648,087

 

 

4,005,324

Securities Held to Maturity

 

 

1,020

 

 

1,020

 

 

1,020

 

 

1,020

 

 

1,020

 

 

1,020

Less: Allowance for credit losses

 

 

(19)

 

 

(18)

 

 

(18)

 

 

(18)

 

 

(19)

 

 

(19)

Net held to maturity securities

 

 

1,001

 

 

1,002

 

 

1,002

 

 

1,002

 

 

1,001

 

 

1,001

Equity Securities

 

 

8,556

 

 

9,449

 

 

8,548

 

 

7,629

 

 

7,314

 

 

8,443

Other Investment Securities

 

 

309,824

 

 

251,405

 

 

307,392

 

 

322,048

 

 

267,292

 

 

327,946

Total Securities

 

 

4,205,251

 

 

5,087,928

 

 

4,066,299

 

 

4,872,604

 

 

4,923,694

 

 

4,342,714

Total Cash and Securities

 

 

5,338,683

 

 

6,348,239

 

 

5,250,353

 

 

6,049,256

 

 

6,280,041

 

 

6,035,071

Loans held for sale

 

 

65,009

 

 

203,420

 

 

59,614

 

 

56,879

 

 

210,075

 

 

91,296

Commercial Loans & Leases

 

 

15,193,346

 

 

14,410,508

 

 

15,416,232

 

 

14,986,117

 

 

14,531,221

 

 

15,083,157

Mortgage Loans

 

 

4,482,774

 

 

3,613,613

 

 

4,519,845

 

 

4,158,226

 

 

3,756,692

 

 

4,437,158

Consumer Loans

 

 

1,237,183

 

 

1,442,240

 

 

1,178,898

 

 

1,435,820

 

 

1,434,572

 

 

1,261,611

Gross Loans

 

 

20,913,303

 

 

19,466,361

 

 

21,114,975

 

 

20,580,163

 

 

19,722,485

 

 

20,781,926

Unearned income

 

 

(16,999)

 

 

(24,295)

 

 

(17,092)

 

 

(21,997)

 

 

(22,405)

 

 

(17,635)

Loans & Leases, net of unearned income

 

 

20,896,304

 

 

19,442,066

 

 

21,097,883

 

 

20,558,166

 

 

19,700,080

 

 

20,764,291

Allowance for Loan & Lease Losses

 

 

(250,810)

 

 

(213,824)

 

 

(254,886)

 

 

(234,746)

 

 

(219,611)

 

 

(250,721)

Net Loans

 

 

20,645,494

 

 

19,228,242

 

 

20,842,997

 

 

20,323,420

 

 

19,480,469

 

 

20,513,570

Mortgage Servicing Rights

 

 

4,588

 

 

22,369

 

 

4,616

 

 

21,022

 

 

21,908

 

 

4,627

Goodwill

 

 

1,888,889

 

 

1,888,889

 

 

1,888,889

 

 

1,888,889

 

 

1,888,889

 

 

1,888,889

Other Intangibles

 

 

15,880

 

 

21,165

 

 

15,060

 

 

18,897

 

 

20,276

 

 

16,339

Operating Lease Right-of-Use Asset

 

 

80,751

 

 

74,734

 

 

80,259

 

 

71,144

 

 

74,043

 

 

80,641

Other Real Estate Owned

 

 

3,189

 

 

13,508

 

 

3,181

 

 

2,052

 

 

10,779

 

 

3,756

Bank-Owned Life Insurance

 

 

484,751

 

 

477,654

 

 

485,386

 

 

480,184

 

 

478,518

 

 

483,906

Other Assets

 

 

548,687

 

 

556,215

 

 

594,439

 

 

577,637

 

 

583,477

 

 

576,556

Total Assets

 

$

29,075,921

 

$

28,834,435

 

$

29,224,794

 

$

29,489,380

 

$

29,048,475

 

$

29,694,651

MEMO: Interest-earning Assets

 

$

25,767,978

 

$

25,438,281

 

$

25,883,462

 

$

26,135,400

 

$

25,648,264

 

$

26,335,600

Interest-bearing Deposits

 

$

15,993,991

 

$

15,308,177

 

$

16,423,511

 

$

15,103,488

 

$

15,244,554

 

$

15,918,927

Noninterest-bearing Deposits

 

 

6,337,052

 

 

7,664,032

 

 

6,253,343

 

 

7,199,678

 

 

7,618,823

 

 

6,450,826

Total Deposits

 

 

22,331,043

 

 

22,972,209

 

 

22,676,854

 

 

22,303,166

 

 

22,863,377

 

 

22,369,753

Short-term Borrowings

 

 

188,945

 

 

137,985

 

 

188,274

 

 

160,698

 

 

142,476

 

 

176,739

Long-term Borrowings

 

 

1,590,763

 

 

894,940

 

 

1,388,770

 

 

2,197,656

 

 

1,297,308

 

 

2,188,438

Total Borrowings

 

 

1,779,708

 

 

1,032,925

 

 

1,577,044

 

 

2,358,354

 

 

1,439,784

 

 

2,365,177

Operating Lease Liability

 

 

85,112

 

 

79,409

 

 

84,569

 

 

75,749

 

 

78,748

 

 

85,038

Other Liabilities

 

 

192,934

 

 

207,792

 

 

237,449

 

 

235,918

 

 

226,480

 

 

237,640

Total Liabilities

 

 

24,388,797

 

 

24,292,335

 

 

24,575,916

 

 

24,973,187

 

 

24,608,389

 

 

25,057,608

Preferred Equity

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

 

 

0

Common Equity

 

 

4,687,124

 

 

4,542,100

 

 

4,648,878

 

 

4,516,193

 

 

4,440,086

 

 

4,637,043

Total Shareholders' Equity

 

 

4,687,124

 

 

4,542,100

 

 

4,648,878

 

 

4,516,193

 

 

4,440,086

 

 

4,637,043

Total Liabilities & Equity

 

$

29,075,921

 

$

28,834,435

 

$

29,224,794

 

$

29,489,380

 

$

29,048,475

 

$

29,694,651

MEMO: Interest-bearing Liabilities

 

$

17,773,699

 

$

16,341,102

 

$

18,000,555

 

$

17,461,842

 

$

16,684,338

 

$

18,284,104

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:

2023

 

2022

 

2023

 

2023

 

2023

 

2022

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.71

 

$

0.76

 

$

0.68

 

$

0.73

 

$

2.13

 

$

2.07

Diluted

$

0.71

 

$

0.76

 

$

0.68

 

$

0.73

 

$

2.12

 

$

2.06

Common Dividend Declared Per Share

$

0.36

 

$

0.36

 

$

0.36

 

$

0.36

 

$

1.08

 

$

1.08

High Common Stock Price

$

34.30

 

$

40.85

 

$

35.61

 

$

42.45

 

$

42.45

 

$

40.85

Low Common Stock Price

$

26.49

 

$

33.67

 

$

27.68

 

$

33.35

 

$

26.49

 

$

33.11

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

134,685,041

 

 

134,182,248

 

 

134,683,010

 

 

134,411,166

 

 

134,493,059

 

 

134,947,674

Diluted

 

134,887,776

 

 

134,553,565

 

 

134,849,818

 

 

134,840,328

 

 

134,733,055

 

 

135,251,299

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

48,706

 

$

48,564

 

$

48,628

 

$

48,720

 

$

146,054

 

$

146,374

Dividend Payout Ratio

 

50.65%

 

 

47.34%

 

 

52.59%

 

 

49.56%

 

 

50.90%

 

 

52.30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

 

December 31

 

September 30

 

June 30

EOP Share Data:

 

 

 

 

 

2023

 

 

2022

 

 

2022

 

 

2023

Book Value Per Share

 

 

 

 

$

34.45

 

$

33.52

 

$

32.98

 

$

34.37

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

 

 

 

 

$

20.34

 

$

19.36

 

$

18.80

 

$

20.25

52-week High Common Stock Price

 

 

 

 

$

44.15

 

$

44.15

 

$

40.85

 

$

44.15

Date

 

 

 

 

11/11/22

 

11/11/22

 

8/16/22

 

11/11/22

52-week Low Common Stock Price

 

 

 

 

$

26.49

 

$

33.11

 

$

33.11

 

$

27.68

Date

 

 

 

 

9/22/23

 

5/2/22

 

5/2/22

 

5/12/23

 

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

134,933,015

 

 

134,745,122

 

 

134,631,647

 

 

134,934,858

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

2,803

 

 

2,856

 

 

2,915

 

 

2,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

$

4,648,878

 

$

4,516,193

 

$

4,440,086

 

$

4,637,043

Less: Total Intangibles

 

 

 

 

 

(1,903,949)

 

 

(1,907,786)

 

 

(1,909,165)

 

 

(1,905,228)

Tangible Equity (non-GAAP)

 

 

 

 

$

2,744,929

 

$

2,608,407

 

$

2,530,921

 

$

2,731,815

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

134,933,015

 

 

134,745,122

 

 

134,631,647

 

 

134,934,858

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

$

20.34

 

$

19.36

 

$

18.80

 

$

20.25

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 2023

Three Months Ended

September 2022

Three Months Ended

June 2023

Selected Average Balances and Yields:

Average

 

Average

Average

 

Average

Average

 

Average

ASSETS:

Balance

Interest(1)

Rate(1)

Balance

Interest(1)

Rate(1)

Balance

Interest(1)

Rate(1)

Earning Assets:

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under

agreements to resell and other short-term investments

$

852,224

$

11,810

5.50%

$

918,691

$

6,834

2.95%

$

994,072

$

12,706

5.13%

Investment securities:

 

 

 

 

 

 

 

 

 

Taxable

 

3,994,073

 

35,730

3.58%

 

4,687,528

 

29,149

2.49%

 

4,274,123

 

36,721

3.44%

Tax-exempt

 

211,178

 

1,482

2.81%

 

400,400

 

2,783

2.78%

 

387,918

 

2,718

2.80%

Total securities

 

4,205,251

 

37,212

3.54%

 

5,087,928

 

31,932

2.51%

 

4,662,041

 

39,439

3.38%

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

 

20,961,313

 

308,757

5.85%

 

19,645,486

 

226,022

4.57%

 

20,705,509

 

294,931

5.71%

Allowance for loan losses

 

(250,810)

 

 

 

(213,824)

 

 

 

(240,611)

 

 

Net loans and loans held for sale

 

20,710,503

 

5.92%

 

19,431,662

 

4.62%

 

20,464,898

 

5.78%

Total earning assets

 

25,767,978

$

357,779

5.52%

 

25,438,281

$

264,788

4.14%

 

26,121,011

$

347,076

5.33%

Other assets

 

3,307,943

 

 

 

3,396,154

 

 

 

3,317,801

 

 

TOTAL ASSETS

$

29,075,921

 

 

$

28,834,435

 

 

$

29,438,812

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

15,993,991

$

108,793

2.70%

$

15,308,177

$

17,660

0.46%

$

15,520,461

$

91,577

2.37%

Short-term borrowings

 

188,945

 

1,805

3.79%

 

137,985

 

493

1.42%

 

177,315

 

1,489

3.37%

Long-term borrowings

 

1,590,763

 

17,859

4.45%

 

894,940

 

4,908

2.18%

 

2,307,485

 

25,405

4.42%

Total interest-bearing liabilities

 

17,773,699

 

128,457

2.87%

 

16,341,102

 

23,061

0.56%

 

18,005,261

 

118,471

2.64%

Noninterest-bearing deposits

 

6,337,052

 

 

 

7,664,032

 

 

 

6,500,259

 

 

Accrued expenses and other liabilities

 

278,046

 

 

 

287,201

 

 

 

274,198

 

 

TOTAL LIABILITIES

 

24,388,797

 

 

 

24,292,335

 

 

 

24,779,718

 

 

SHAREHOLDERS’ EQUITY

 

4,687,124

 

 

 

4,542,100

 

 

 

4,659,094

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

$

29,075,921

 

 

$

28,834,435

 

 

$

29,438,812

 

 

NET INTEREST INCOME

 

$

229,322

 

 

$

241,727

 

 

$

228,605

 

INTEREST RATE SPREAD

 

 

2.65%

 

 

3.58%

 

 

2.69%

NET INTEREST MARGIN

 

 

3.54%

 

 

3.78%

 

 

3.51%

 

 

 

 

 

 

 

 

 

 

(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

September 2023

Nine Months Ended

September 2022

Selected Average Balances and Yields:

Average

 

Average

Average

 

Average

ASSETS:

Balance

Interest(1)

Rate(1)

Balance

Interest(1)

Rate(1)

Earning Assets:

 

 

 

 

 

 

Federal funds sold and securities purchased under

agreements to resell and other short-term investments

$

927,255

$

35,499

5.12%

$

1,887,158

$

14,004

0.99%

Investment securities:

 

 

 

 

 

 

Taxable

 

4,222,849

 

108,710

3.43%

 

4,540,767

 

71,212

2.09%

Tax-exempt

 

328,276

 

6,940

2.82%

 

421,440

 

8,266

2.62%

Total securities

 

4,551,125

 

115,650

3.39%

 

4,962,207

 

79,478

2.14%

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

 

20,784,493

 

884,144

5.69%

 

19,068,898

 

604,085

4.23%

Allowance for loan losses

 

(242,135)

 

 

 

(214,813)

 

 

Net loans and loans held for sale

 

20,542,358

 

5.75%

 

18,854,085

 

4.28%

Total earning assets

 

26,020,738

$

1,035,293

5.32%

 

25,703,450

$

697,567

3.63%

Other assets

 

3,319,143

 

 

 

3,358,118

 

 

TOTAL ASSETS

$

29,339,881

 

 

$

29,061,568

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

Interest-bearing deposits

$

15,569,985

$

268,962

2.31%

$

15,599,135

$

35,972

0.31%

Short-term borrowings

 

177,707

 

4,451

3.35%

 

136,014

 

911

0.90%

Long-term borrowings

 

2,102,386

 

68,498

4.36%

 

841,693

 

10,339

1.64%

Total interest-bearing liabilities

 

17,850,078

 

341,911

2.56%

 

16,576,842

 

47,222

0.38%

Noninterest-bearing deposits

 

6,576,063

 

 

 

7,573,667

 

 

Accrued expenses and other liabilities

 

274,418

 

 

 

275,201

 

 

TOTAL LIABILITIES

 

24,700,559

 

 

 

24,425,710

 

 

SHAREHOLDERS’ EQUITY

 

4,639,322

 

 

 

4,635,858

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

$

29,339,881

 

 

$

29,061,568

 

 

NET INTEREST INCOME

 

$

693,382

 

 

$

650,345

 

INTEREST RATE SPREAD

 

 

2.76%

 

 

3.25%

NET INTEREST MARGIN

 

 

3.56%

 

 

3.38%

 

 

 

 

 

 

 

(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September

 

September

 

June

 

March

 

September

 

September

 

Selected Financial Ratios:

2023

 

2022

 

2023

 

2023

 

2023

 

2022

 

Return on Average Assets

 

1.31%

 

 

1.41%

 

 

1.26%

 

 

1.35%

 

 

1.31%

 

 

1.29%

 

Return on Average Shareholders’ Equity

 

8.14%

 

 

8.96%

 

 

7.96%

 

 

8.72%

 

 

8.27%

 

 

8.07%

 

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

 

13.71%

 

 

15.46%

 

 

13.47%

 

 

14.97%

 

 

14.03%

 

 

13.73%

 

Efficiency Ratio

 

51.59%

 

 

50.19%

 

 

51.51%

 

 

51.46%

 

 

51.52%

 

 

54.27%

 

Price / Earnings Ratio

 

9.70

x

 

11.75

x

 

10.84

x

 

12.10

x

 

9.74

x

 

13.02

x

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

96,157

 

$

102,585

 

$

92,459

 

$

98,307

 

$

286,923

 

$

279,862

 

(b) Number of Days

 

92

 

 

92

 

 

91

 

 

90

 

 

273

 

 

273

 

Average Total Shareholders' Equity (GAAP)

$

4,687,124

 

$

4,542,100

 

$

4,659,094

 

$

4,570,288

 

$

4,639,322

 

$

4,635,858

 

Less: Average Total Intangibles

 

(1,904,769)

 

 

(1,910,054)

 

 

(1,906,053)

 

 

(1,907,331)

 

 

(1,906,042)

 

 

(1,910,957)

 

(c) Average Tangible Equity (non-GAAP)

$

2,782,355

 

$

2,632,046

 

$

2,753,041

 

$

2,662,957

 

$

2,733,280

 

$

2,724,901

 

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

 

13.71%

 

 

15.46%

 

 

13.47%

 

 

14.97%

 

 

14.03%

 

 

13.73%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

September 30

2023

 

December 31

2022

 

September 30

2022

 

June 30

2023

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

 

93.04%

 

 

92.18%

 

 

86.16%

 

 

92.82%

 

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

 

 

 

 

 

1.21%

 

 

1.14%

 

 

1.11%

 

 

1.21%

 

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

 

 

 

 

 

1.42%

 

 

1.37%

 

 

1.32%

 

 

1.43%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

 

0.12%

 

 

0.12%

 

 

0.14%

 

 

0.13%

 

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

 

 

 

 

 

0.09%

 

 

0.08%

 

 

0.09%

 

 

0.07%

 

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

 

 

 

 

 

0.20%

 

 

0.29%

 

 

0.35%

 

 

0.20%

 

Non-performing Assets/ Total Assets

 

 

 

 

 

0.16%

 

 

0.21%

 

 

0.28%

 

 

0.15%

 

Primary Capital Ratio

 

 

 

 

 

16.76%

 

 

16.11%

 

 

16.03%

 

 

16.45%

 

Shareholders' Equity Ratio

 

 

 

 

 

15.91%

 

 

15.31%

 

 

15.29%

 

 

15.62%

 

Price / Book Ratio

 

 

 

 

 

0.80

x

 

1.21

x

 

1.08

x

 

0.86

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:

2023

2022

2023

2023

2023

2022

Applications

$

458,818

$

785,529

$

588,734

$

505,840

$

1,553,392

$

3,641,135

Loans originated

 

342,131

 

552,487

 

416,255

 

312,077

 

1,070,463

 

2,514,002

Loans sold

$

367,679

$

564,267

$

399,632

$

301,476

$

1,068,787

$

2,807,014

Purchase money % of loans closed

 

94%

 

86%

 

94%

 

92%

 

94%

 

81%

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

 

2.29%

 

2.13%

 

2.27%

 

2.17%

 

2.25%

 

2.49%

Net interest income

$

2,558

$

2,758

$

2,155

$

2,122

$

6,835

$

7,945

Other income

 

10,871

 

13,749

 

19,946

 

10,861

 

41,678

 

58,614

Other expense

 

14,119

 

20,662

 

15,706

 

15,085

 

44,910

 

71,886

Income taxes

 

(141)

 

(820)

 

1,270

 

(424)

 

705

 

(1,048)

Net (loss) income

$

(549)

$

(3,335)

$

5,125

$

(1,678)

$

2,898

$

(4,279)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30

December 31

September 30

June 30

March 31

Period End Mortgage Banking Segment Data:

 

2023

2022

2022

2023

2023

Locked pipeline

 

$

99,988

$

68,654

$

131,846

$

93,417

$

92,639

Balance of loans serviced

 

$

1,216,805

$

3,381,485

$

3,459,781

$

1,242,441

$

3,280,741

Number of loans serviced

 

 

12,596

 

23,510

 

23,859

 

12,843

 

22,436

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

September 30

December 31

September 30

June 30

March 31

Asset Quality Data:

 

2023

2022

2022

2023

2023

EOP Non-Accrual Loans

 

$

24,456

$

23,685

$

28,244

$

26,545

$

29,296

EOP 90-Day Past Due Loans

 

 

18,283

 

15,565

 

18,254

 

15,007

 

13,105

EOP Restructured Loans (1)

 

 

n/a

 

19,388

 

23,155

 

n/a

 

n/a

Total EOP Non-performing Loans

 

$

42,739

$

58,638

$

69,653

$

41,552

$

42,401

EOP Other Real Estate Owned

 

 

3,181

 

2,052

 

10,779

 

3,756

 

4,086

Total EOP Non-performing Assets

 

$

45,920

$

60,690

$

80,432

$

45,308

$

46,487

 

 

 

 

 

 

 

 

Three Months Ended

Nine Months Ended

 

September 30

September 30

June 30

March 31

September 30

September 30

Allowance for Loan & Lease Losses:

2023

2022

2023

2023

2023

2022

Beginning Balance

$

250,721

$

213,729

$

240,491

$

234,746

$

234,746

$

216,016

Gross Charge-offs

 

(2,836)

 

(3,087)

 

(2,274)

 

(2,936)

 

(8,046)

 

(6,682)

Recoveries

 

1,052

 

1,299

 

1,065

 

1,791

 

3,908

 

7,815

Net (Charge-offs) Recoveries

 

(1,784)

 

(1,788)

 

(1,209)

 

(1,145)

 

(4,138)

 

1,133

Provision for Loan & Lease Losses

 

5,949

 

7,670

 

11,439

 

6,890

 

24,278

 

2,462

Ending Balance

$

254,886

$

219,611

$

250,721

$

240,491

$

254,886

$

219,611

Reserve for lending-related commitments

 

43,766

 

39,698

 

46,768

 

48,789

 

43,766

 

39,698

Allowance for Credit Losses (2)

$

298,652

$

259,309

$

297,489

$

289,280

$

298,652

$

259,309

Notes:

(1)

On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 and September 30, 2022 non-performing loans and non-performing assets included $9,127 and $9,878, respectively, of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-days past due are included in the above respective non-performing loan and non-performing asset categories at September 30, 2023.

 

Restructured loans with an aggregate balance of $7,186 and $10,336 at December 31, 2022 and September 30, 2022, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,075 and $2,941 at December 31, 2022 and September 30, 2022, respectively, were 90 days past due, but not included in "EOP 90-Day Past Due 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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