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Press Release

United Bankshares, Inc. Announces Record Earnings for the Year 2020

Company Release - 1/28/2021

WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)-- United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter and the year of 2020. Earnings for the fourth quarter of 2020 were $92.4 million, or $0.71 per diluted share, as compared to earnings of $63.3 million, or $0.62 per diluted share for the fourth quarter of 2019. Earnings for the year of 2020 were a record $289.0 million as compared to earnings of $260.1 million for the year of 2019. Earnings per diluted share for the year of 2020 were $2.40 as compared to earnings per diluted share of $2.55 for the year of 2019.

Fourth quarter 2020 results produced annualized returns on average assets, average equity and average tangible equity of 1.41%, 8.51% and 14.72%, respectively compared to annualized returns on average assets, average equity and average tangible equity of 1.29%, 7.42% and 13.38%, respectively, for the fourth quarter of 2019. For the year of 2020, United’s returns on average assets, average equity and average tangible equity were 1.20%, 7.30% and 12.90%, respectively compared to returns on average assets, average equity and average tangible equity of 1.34%, 7.80% and 14.26%, respectively, for the year of 2019.

The record net income for the year of 2020, as compared to the year of 2019, was primarily due to higher income from mortgage banking activities, driven by an elevated volume of mortgage loan originations and sales in the secondary market, as well as the impact of the Carolina Financial Corporation (“Carolina Financial”) acquisition. Partially offsetting these increases in net income was higher provision for credit losses resulting from an adverse future macroeconomic forecast as a result of the coronavirus (“COVID-19”) pandemic under the Current Expected Credit Loss (“CECL”) accounting standard and merger-related expenses related to the Carolina Financial acquisition.

“During the many challenges of 2020, United delivered a strong performance for our shareholders, our team members, our customers and our communities,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “For 2020, we earned a record $289 million, increased our dividend for the 47th consecutive year, successfully completed the largest acquisition in our company’s history with Carolina Financial, and maintained our focus on meeting the needs of our customers, our employees and our communities during the COVID-19 pandemic. We enter 2021 with strong credit quality and regulatory ratios that position us well for continued success.”

The results of operations for Carolina Financial are included in the consolidated results of operations from the date of acquisition, May 1, 2020. As a result of the acquisition, the fourth quarter and year of 2020 reflected higher average balances, income, and expense as compared to the fourth quarter and year of 2020. In addition, the fourth quarter and year of 2020 included merger-related expenses of $558 thousand and $54.2 million, respectively, as compared to $589 thousand for both the fourth quarter and year of 2019.

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2020 was $192.0 million, which was an increase of $50.7 million or 36% from the fourth quarter of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition and Paycheck Protection Program (“PPP”) loans. 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 fourth quarter of 2020 increased $50.9 million or 36% from the fourth quarter of 2019 to $193.0 million. Average earning assets for the fourth quarter of 2020 increased $6.0 billion or 35% from the fourth quarter of 2019 due to a $4.4 billion increase in average net loans and loans held for sale, a $1.2 billion increase in average short-term investments and a $395.1 million increase in average investment securities. The net interest spread for the fourth quarter of 2020 increased 36 basis points from the fourth quarter of 2019 due to a 102 basis point decrease in the average cost of funds primarily due to the decline in market interest rates from the fourth quarter of 2019. The increase in the net interest spread was partially offset by a 66 basis point decrease in the average yield on earning assets from the fourth quarter of 2019 due to the decline in market interest rates and the lower yield on PPP loans. Loan accretion on acquired loans was $10.9 million and $8.6 million for the fourth quarter of 2020 and 2019, respectively, an increase of $2.3 million, primarily driven by the accretion on loans acquired from the Carolina Financial acquisition. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 4 basis points from the net interest margin of 3.29% for the fourth quarter of 2019.

Net interest income for the year of 2020 was $689.8 million, which was an increase of $111.9 million or 19% from the year of 2019, primarily due to an increase in average earning assets from the Carolina Financial acquisition. Tax-equivalent net interest income for the year of 2020 was $693.7 million, an increase of $112.0 million or 19% from the year of 2019. Average earning assets for the year of 2020 increased $4.2 billion or 25% from the year of 2019 due to a $3.2 billion increase in average net loans and loans held for sale, a $767.9 million increase in average short-term investments and a $293.2 million increase in average investment securities. The net interest spread for the year of 2020 increased 8 basis points from the year of 2019 due to an 80 basis point decrease in the average cost of funds partially offset by a 72 basis point decrease in the average yield on earning assets. Loan accretion on acquired loans was $41.8 million and $38.8 million for the year of 2020 and 2019, respectively, an increase of $3.0 million. The net interest margin of 3.24% for the year of 2020 was a decrease of 15 basis points from the net interest margin of 3.39% for the year of 2019.

On a linked-quarter basis, net interest income for the fourth quarter of 2020 increased $6.3 million or 3% from the third quarter of 2020. United’s tax-equivalent net interest income for the fourth quarter of 2020 also increased $6.3 million or 3% from the third quarter of 2020. The net interest spread for the fourth quarter of 2020 increased 21 basis points from the third quarter of 2020 due to an 18 basis point decrease in the average cost of funds and a 3 basis point increase in the average yield on earning assets. PPP loan fee income increased $2.2 million to $7.0 million in the fourth quarter of 2020 from the third quarter of 2020, driven by loan forgiveness. Average earning assets decreased approximately $302.1 million or 1% from the third quarter of 2020, driven by a decrease in average net loans and loans held for sale of $165.3 million and average short-term investments of $199.8 million from the third quarter of 2020. Loan accretion on acquired loans decreased approximately $815 thousand from the third quarter of 2020. The net interest margin of 3.33% for the fourth quarter of 2020 was an increase of 15 basis points from the net interest margin of 3.18% for the third quarter of 2020.

Credit Quality

United’s asset quality continues to be sound relative to the current economic environment. At December 31, 2020, nonperforming loans were $132.2 million, or 0.75% of loans & leases, net of unearned income, as compared to nonperforming loans of $131.1 million, or 0.96% of loans & leases, net of unearned income, at December 31, 2019. As of December 31, 2020, the allowance for loan losses was $235.8 million or 1.34% of loans & leases, net of unearned income, as compared to $77.1 million or 0.56% of loans & leases, net of unearned income, at December 31, 2019. The increase in the allowance for loan losses was due to the adoption of CECL, the impact of COVID-19 and the loans acquired from Carolina Financial. Total nonperforming assets of $154.8 million, including OREO of $22.6 million at December 31, 2020, represented 0.59% of total assets as compared to nonperforming assets of $146.6 million or 0.75% of total assets at December 31, 2019.

For the quarters ended December 31, 2020 and 2019, the provision for credit losses was $16.8 million and $5.9 million, respectively. The increase in the provision in relation to the prior year quarter was driven by the impact from the reasonable and supportable forecasts of future macroeconomic conditions used in the estimation of expected credit losses adversely impacted by the COVID-19 pandemic under CECL. The provision for the year of 2020 was $106.6 million as compared to $21.3 million for the year of 2019. In addition to the impact of reasonable and supportable forecasts on reserves, the increase year over year was also driven by the provision for credit losses of $29.0 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from the Carolina Financial acquisition. Net charge-offs were $6.9 million and $5.9 million for the fourth quarter of 2020 and 2019, respectively. Net charge-offs were $23.6 million and $21.0 million for the year of 2020 and 2019, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.16% and 0.14% for the fourth quarter and year of 2020, respectively. On a linked-quarter basis, the provision for credit losses remained flat at $16.8 million.

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $94.1 million, which was an increase of $56.8 million or 153% from the fourth quarter of 2019. The increase was driven by a $53.2 million increase in income from mortgage banking activities due to an elevated volume of mortgage loan originations and sales in the secondary market as well as the addition of mortgage banking operations from the Carolina Financial acquisition. Noninterest income for the fourth quarter of 2020 also included $2.3 million in mortgage loan servicing income.

Noninterest income for the year of 2020 was $354.7 million, which was an increase of $204.3 million or 136% from the year of 2019. The increase was due mainly to an increase of $189.1 million in income from mortgage banking activities. Net gains on investment securities were $3.2 million for the year of 2020 as compared to a net gain of $175 thousand for the year of 2019, an increase of approximately $3.0 million. Noninterest income for the year of 2020 also included $6.2 million in mortgage loan servicing income and a $2.2 million gain on the sale of a bank premises.

On a linked-quarter basis, noninterest income for the fourth quarter of 2020 decreased $41.4 million or 31% from the third quarter of 2020 primarily due to a decrease of $38.7 million in income from mortgage banking activities. Mortgage loan originations and sales volumes remained strong in the fourth quarter of 2020. The decrease in the fourth quarter of 2020 in relation to the third quarter of 2020 was primarily due to lower balances and volume of loans held for sale and loan commitments. The third quarter of 2020 also included a $2.2 million gain on the sale of a bank premises.

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 was $156.1 million, an increase of $59.2 million or 61% from the fourth quarter of 2019. Employee compensation increased $32.6 million from the fourth quarter of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additionally, noninterest expense increased from the fourth quarter of 2019 due to a $10.8 million increase in other expense, a $3.4 million increase in mortgage loan servicing expense and impairment, a $3.0 million increase in employee benefits, a $2.9 million increase in equipment expense and a $2.2 million increase in net occupancy expense. Within other expense, the largest drivers of the increase included an increase in the expense for the reserve for unfunded commitments of $3.3 million and an increase in the amortization of income tax credits of $1.9 million. The increases in employee benefits, equipment expense and occupancy expense were mainly from the Carolina Financial acquisition.

Noninterest expense for the year of 2020 was $578.2 million, an increase of $195.6 million or 51% from the year of 2019. Employee compensation increased $100.7 million from the year of 2019 due to the Carolina Financial acquisition as well as due to higher employee incentives and commissions expense mainly related to higher mortgage banking production. Additional employee benefit expense of $13.1 million and occupancy expense of $6.5 million were recognized in the year of 2020 mainly from the Carolina Financial acquisition. Data processing expense increased $13.2 million (including the Carolina Financial data processing contract termination penalty of $9.7 million recorded in the second quarter of 2020), mortgage loan servicing expense and impairment increased $9.0 million (including $1.4 million temporary impairment on mortgage servicing rights) and prepayment penalties on the early payoff of long-term FHLB advances increased $5.3 million. Other expense also increased $39.1 million due to an increase in merger-related expenses of $10.7 million associated with the Carolina Financial acquisition, an increase in the expense for the reserve for unfunded commitments of $11.0 million, and an increase in the amortization of income tax credits of $5.7 million which reduces the effective tax rate.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2020 decreased $15.5 million or 9% from the third quarter of 2020 due primarily to the $10.4 million in prepayment penalties on the early payoff of three long-term FHLB advances recognized in the third quarter of 2020. Additionally, employee compensation decreased $7.5 million due a decline in salaries expense as a result of fewer employees and lower employee incentives and commissions expense recognized in the fourth quarter of 2020 related primarily to mortgage banking production.

Income Tax Expense

For the fourth quarter and year of 2020, income tax expense was $20.8 million and $70.7 million as compared to $12.5 million and $64.3 million, respectively, for the fourth quarter and year of 2019. The increase in the comparative quarter and year periods was due to overall higher earnings. On a linked-quarter basis, income tax expense decreased $8.1 million due to lower earnings and a lower effective tax rate primarily as a result of an increased benefit from income tax credits. United’s effective tax rate was 18.4% for the fourth quarter of 2020, 16.5% for the fourth quarter of 2019 and 21.8% for the third quarter of 2020. For the year of 2020 and 2019, United's effective tax rate was 19.7% and 19.8%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.6% at December 31, 2020 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.3%, 13.3% and 10.3%, respectively. The December 31, 2020 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 December 31, 2020, United had consolidated assets of approximately $26.2 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank has 230 offices in West Virginia, Virginia, Ohio, Pennsylvania, Maryland, North Carolina, South Carolina, Georgia, and the nation’s capital. 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 December 31, 2020 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2020 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 common equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of common equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.

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

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, such as statements about the potential impacts of the COVID-19 pandemic. 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 effect of the COVID-19 pandemic, including the negative impacts and disruptions on United’s colleagues, the communities United serves, and the domestic and global economy, which may have an adverse effect on United’s business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve Board; 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; the successful integration of operations of Carolina Financial Corporation; 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, 2019, 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

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

 

 

Three Months Ended

 

Year Ended

 

December
2020

December
2019

 

December
2020

December
2019

EARNINGS SUMMARY:

 

 

 

 

 

Interest income

$

208,914

 

$

183,869

 

 

$

798,382

 

$

762,562

 

Interest expense

 

16,925

 

 

42,586

 

 

 

108,609

 

 

184,640

 

Net interest income

 

191,989

 

 

141,283

 

 

 

689,773

 

 

577,922

 

Provision for credit losses

 

16,751

 

 

5,867

 

 

 

106,562

 

 

21,313

 

Noninterest income

 

94,082

 

 

37,242

 

 

 

354,746

 

 

150,484

 

Noninterest expense

 

156,117

 

 

96,900

 

 

 

578,217

 

 

382,654

 

Income before income taxes

 

113,203

 

 

75,758

 

 

 

359,740

 

 

324,439

 

Income taxes

 

20,833

 

 

12,473

 

 

 

70,717

 

 

64,340

 

Net income

$

92,370

 

$

63,285

 

 

$

289,023

 

$

260,099

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

Net income:

 

 

 

 

 

Basic

$

0.71

 

$

0.62

 

 

$

2.40

 

$

2.55

 

Diluted

 

0.71

 

 

0.62

 

 

 

2.40

 

 

2.55

 

Cash dividends

$

0.35

 

$

0.35

 

 

 

1.40

 

 

1.37

 

Book value

 

 

 

 

33.27

 

 

33.12

 

Closing market price

 

 

 

$

32.40

 

$

38.66

 

Common shares outstanding:

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

129,188,507

 

 

101,553,671

 

Weighted average-basic

 

129,371,600

 

 

101,250,489

 

 

 

120,017,247

 

 

101,585,599

 

Weighted average-diluted

 

129,479,390

 

 

101,537,640

 

 

 

120,090,232

 

 

101,852,577

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

Return on average assets

 

1.41

%

 

1.29

%

 

 

1.20

%

 

1.34

%

Return on average shareholders’ equity

 

8.51

%

 

7.42

%

 

 

7.30

%

 

7.80

%

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

 

14.72

%

 

13.38

%

 

 

12.90

%

 

14.26

%

Average equity to average assets

 

16.54

%

 

17.39

%

 

 

16.39

%

 

17.13

%

Net interest margin

 

3.33

%

 

3.29

%

 

 

3.24

%

 

3.39

%

 

 

 

 

 

 

 

December 31
2020

December 31
2019

 

December 31
2018

September 30
2020

PERIOD END BALANCES:

 

 

 

 

 

Assets

$

26,184,247

 

$

19,662,324

 

 

$

19,250,498

 

$

25,931,308

 

Earning assets

 

23,172,403

 

 

17,344,638

 

 

 

16,971,602

 

 

22,903,067

 

Loans & leases, net of unearned income

 

17,591,413

 

 

13,712,129

 

 

 

13,422,222

 

 

17,930,231

 

Loans held for sale

 

718,937

 

 

387,514

 

 

 

249,846

 

 

812,084

 

Investment securities

 

3,186,184

 

 

2,669,797

 

 

 

2,543,727

 

 

3,007,263

 

Total deposits

 

20,585,160

 

 

13,852,421

 

 

 

13,994,749

 

 

20,251,539

 

Shareholders’ equity

 

4,297,620

 

 

3,363,833

 

 

 

3,251,624

 

 

4,267,441

 

 
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

 

December

 

December

 

September

 

June

 

March

 

2020

 

2019

 

2020

 

2020

 

2020

Interest & Loan Fees Income (GAAP)

$

208,914

 

 

$

183,869

 

 

$

210,269

 

 

$

198,717

 

 

$

180,482

 

Tax equivalent adjustment

 

1,042

 

 

 

851

 

 

 

1,046

 

 

 

1,018

 

 

 

782

 

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

 

209,956

 

 

 

184,720

 

 

 

211,315

 

 

 

199,735

 

 

 

181,264

 

Interest Expense

 

16,925

 

 

 

42,586

 

 

 

24,605

 

 

 

28,115

 

 

 

38,964

 

Net Interest Income (FTE) (non-GAAP)

 

193,031

 

 

 

142,134

 

 

 

186,710

 

 

 

171,620

 

 

 

142,300

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

16,751

 

 

 

5,867

 

 

 

16,781

 

 

 

45,911

 

 

 

27,119

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

Fees from trust services

 

3,585

 

 

 

3,597

 

 

 

3,574

 

 

 

3,261

 

 

 

3,483

 

Fees from brokerage services

 

3,125

 

 

 

2,468

 

 

 

3,066

 

 

 

2,651

 

 

 

2,916

 

Fees from deposit services

 

9,501

 

 

 

8,549

 

 

 

9,320

 

 

 

8,055

 

 

 

7,957

 

Bankcard fees and merchant discounts

 

1,129

 

 

 

1,154

 

 

 

1,226

 

 

 

718

 

 

 

993

 

Other charges, commissions, and fees

 

753

 

 

 

576

 

 

 

715

 

 

 

610

 

 

 

518

 

Income from bank-owned life insurance

 

1,479

 

 

 

2,906

 

 

 

2,059

 

 

 

1,291

 

 

 

2,388

 

Income from mortgage banking activities

 

70,793

 

 

 

17,547

 

 

 

109,457

 

 

 

68,213

 

 

 

17,631

 

Mortgage loan servicing income

 

2,334

 

 

 

0

 

 

 

2,345

 

 

 

1,534

 

 

 

0

 

Net gain on the sale of bank premises

 

0

 

 

 

0

 

 

 

2,229

 

 

 

0

 

 

 

0

 

Net gains on investment securities

 

589

 

 

 

109

 

 

 

860

 

 

 

1,510

 

 

 

196

 

Other noninterest income

 

794

 

 

 

336

 

 

 

617

 

 

 

547

 

 

 

724

 

Total Noninterest Income

 

94,082

 

 

 

37,242

 

 

 

135,468

 

 

 

88,390

 

 

 

36,806

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

Employee compensation

 

77,001

 

 

 

44,399

 

 

 

84,455

 

 

 

68,664

 

 

 

44,541

 

Employee benefits

 

12,103

 

 

 

9,121

 

 

 

13,202

 

 

 

12,779

 

 

 

10,786

 

Net occupancy

 

10,979

 

 

 

8,734

 

 

 

10,944

 

 

 

10,318

 

 

 

9,062

 

Data processing

 

7,280

 

 

 

5,727

 

 

 

6,708

 

 

 

15,926

 

 

 

5,506

 

Amortization of intangibles

 

1,691

 

 

 

1,754

 

 

 

1,691

 

 

 

1,646

 

 

 

1,577

 

OREO expense

 

3,069

 

 

 

1,450

 

 

 

1,166

 

 

 

607

 

 

 

906

 

Equipment expense

 

6,396

 

 

 

3,522

 

 

 

5,616

 

 

 

5,004

 

 

 

3,845

 

FDIC insurance expense

 

2,250

 

 

 

1,005

 

 

 

2,700

 

 

 

2,782

 

 

 

2,400

 

Mortgage loan servicing expense and impairment

 

3,482

 

 

 

119

 

 

 

3,301

 

 

 

2,510

 

 

 

138

 

Prepayment penalties on FHLB borrowings

 

0

 

 

 

0

 

 

 

10,385

 

 

 

0

 

 

 

0

 

Other expenses

 

31,866

 

 

 

21,069

 

 

 

31,425

 

 

 

29,138

 

 

 

22,372

 

Total Noninterest Expense

 

156,117

 

 

 

96,900

 

 

 

171,593

 

 

 

149,374

 

 

 

101,133

 

 

 

 

 

 

 

 

 

 

 

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

 

114,245

 

 

 

76,609

 

 

 

133,804

 

 

 

64,725

 

 

 

50,854

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

1,042

 

 

 

851

 

 

 

1,046

 

 

 

1,018

 

 

 

782

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

113,203

 

 

 

75,758

 

 

 

132,758

 

 

 

63,707

 

 

 

50,072

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

20,833

 

 

 

12,473

 

 

 

28,974

 

 

 

11,021

 

 

 

9,889

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

92,370

 

 

$

63,285

 

 

$

103,784

 

 

$

52,686

 

 

$

40,183

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

18.40

%

 

 

16.46

%

 

 

21.82

%

 

 

17.30

%

 

 

19.75

%

 

 

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

 

 

 

 

 

 

 

 

Year Ended

 

December

 

December

 

December

 

December

 

2020

 

2019

 

2018

 

2017

Interest & Loan Fees Income (GAAP)

$

798,382

 

 

$

762,562

 

 

$

717,715

 

 

$

623,806

 

Tax equivalent adjustment

 

3,888

 

 

 

3,735

 

 

 

4,328

 

 

 

8,429

 

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

 

802,270

 

 

 

766,297

 

 

 

722,043

 

 

 

632,235

 

Interest Expense

 

108,609

 

 

 

184,640

 

 

 

129,070

 

 

 

74,809

 

Net Interest Income (FTE) (non-GAAP)

 

693,661

 

 

 

581,657

 

 

 

592,973

 

 

 

557,426

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

106,562

 

 

 

21,313

 

 

 

22,013

 

 

 

28,406

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

Fees from trust services

 

13,903

 

 

 

13,873

 

 

 

12,930

 

 

 

11,801

 

Fees from brokerage services

 

11,758

 

 

 

10,136

 

 

 

9,347

 

 

 

7,730

 

Fees from deposit services

 

34,833

 

 

 

33,768

 

 

 

33,973

 

 

 

33,622

 

Bankcard fees and merchant discounts

 

4,066

 

 

 

4,674

 

 

 

5,168

 

 

 

4,795

 

Other charges, commissions, and fees

 

2,596

 

 

 

2,241

 

 

 

2,228

 

 

 

2,057

 

Income from bank-owned life insurance

 

7,217

 

 

 

7,339

 

 

 

5,045

 

 

 

5,110

 

Income from mortgage banking activities

 

266,094

 

 

 

76,951

 

 

 

58,109

 

 

 

58,907

 

Mortgage loan servicing income

 

6,213

 

 

 

0

 

 

 

0

 

 

 

0

 

Net gain on the sale of bank premises

 

2,229

 

 

 

0

 

 

 

2,763

 

 

 

0

 

Net gains (losses) on investment securities

 

3,155

 

 

 

175

 

 

 

(2,618

)

 

 

5,584

 

Other noninterest income

 

2,682

 

 

 

1,327

 

 

 

1,767

 

 

 

2,039

 

Total Noninterest Income

 

354,746

 

 

 

150,484

 

 

 

128,712

 

 

 

131,645

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

Employee compensation

 

274,661

 

 

 

173,962

 

 

 

164,468

 

 

 

166,393

 

Employee benefits

 

48,870

 

 

 

35,745

 

 

 

36,172

 

 

 

34,997

 

Net occupancy

 

41,303

 

 

 

34,850

 

 

 

36,462

 

 

 

39,067

 

Data processing

 

35,420

 

 

 

22,232

 

 

 

23,800

 

 

 

21,019

 

Amortization of intangibles

 

6,605

 

 

 

7,016

 

 

 

8,039

 

 

 

7,772

 

OREO expense

 

5,748

 

 

 

5,336

 

 

 

3,444

 

 

 

6,003

 

Equipment expense

 

20,861

 

 

 

14,210

 

 

 

13,846

 

 

 

10,528

 

FDIC insurance expense

 

10,132

 

 

 

8,070

 

 

 

11,464

 

 

 

7,051

 

Mortgage loan servicing expense and impairment

 

9,431

 

 

 

423

 

 

 

271

 

 

 

263

 

Prepayment penalties on FHLB borrowings

 

10,385

 

 

 

5,105

 

 

 

0

 

 

 

0

 

Other expenses

 

114,801

 

 

 

75,705

 

 

 

70,213

 

 

 

74,316

 

Total Noninterest Expense

 

578,217

 

 

 

382,654

 

 

 

368,179

 

 

 

367,409

 

 

 

 

 

 

 

 

 

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

 

363,628

 

 

 

328,174

 

 

 

331,493

 

 

 

293,256

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

3,888

 

 

 

3,735

 

 

 

4,328

 

 

 

8,429

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

359,740

 

 

 

324,439

 

 

 

327,165

 

 

 

284,827

 

 

 

 

 

 

 

 

 

Taxes

 

70,717

 

 

 

64,340

 

 

 

70,823

 

 

 

134,246

 

 

 

 

 

 

 

 

 

Net Income

$

289,023

 

 

$

260,099

 

 

$

256,342

 

 

$

150,581

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

19.66

%

 

 

19.83

%

 

 

21.65

%

 

 

47.13

%

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 2020

 

December 2019

 

December 31

 

December 31

 

December 31

 

Q-T-D Average

 

Q-T-D Average

 

2020

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

$

2,048,915

 

 

$

777,007

 

 

$

2,209,068

 

 

$

837,493

 

 

$

1,020,396

 

 

Securities Available for Sale

 

2,849,102

 

 

 

2,463,101

 

 

 

2,953,359

 

 

 

2,437,296

 

 

 

2,337,039

 

Less: Allowance for credit losses

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

2,849,102

 

 

 

2,463,101

 

 

 

2,953,359

 

 

 

2,437,296

 

 

 

2,337,039

 

Securities Held to Maturity

 

1,235

 

 

 

1,463

 

 

 

1,235

 

 

 

1,446

 

 

 

19,999

 

Less: Allowance for credit losses

 

(21

)

 

 

0

 

 

 

(23

)

 

 

0

 

 

 

0

 

Net held to maturity securities

 

1,214

 

 

 

1,463

 

 

 

1,212

 

 

 

1,446

 

 

 

19,999

 

Equity Securities

 

10,399

 

 

 

8,984

 

 

 

10,718

 

 

 

8,894

 

 

 

9,734

 

Other Investment Securities

 

218,741

 

 

 

210,855

 

 

 

220,895

 

 

 

222,161

 

 

 

176,955

 

Total Securities

 

3,079,456

 

 

 

2,684,403

 

 

 

3,186,184

 

 

 

2,669,797

 

 

 

2,543,727

 

Total Cash and Securities

 

5,128,371

 

 

 

3,461,410

 

 

 

5,395,252

 

 

 

3,507,290

 

 

 

3,564,123

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

720,896

 

 

 

368,966

 

 

 

718,937

 

 

 

387,514

 

 

 

249,846

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans & Leases

 

13,296,380

 

 

 

9,347,641

 

 

 

13,165,497

 

 

 

9,399,170

 

 

 

9,447,420

 

Mortgage Loans

 

3,269,073

 

 

 

3,052,045

 

 

 

3,197,274

 

 

 

3,107,721

 

 

 

2,979,787

 

Consumer Loans

 

1,253,421

 

 

 

1,195,999

 

 

 

1,259,812

 

 

 

1,206,657

 

 

 

1,002,325

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

17,818,874

 

 

 

13,595,685

 

 

 

17,622,583

 

 

 

13,713,548

 

 

 

13,429,532

 

Unearned income

 

(38,502

)

 

 

(2,823

)

 

 

(31,170

)

 

 

(1,419

)

 

 

(7,310

)

Loans & Leases, net of unearned income

 

17,780,372

 

 

 

13,592,862

 

 

 

17,591,413

 

 

 

13,712,129

 

 

 

13,422,222

 

Allowance for Loan & Leases Losses

 

(225,918

)

 

 

(77,073

)

 

 

(235,830

)

 

 

(77,057

)

 

 

(76,703

)

Net Loans

 

17,554,454

 

 

 

13,515,789

 

 

 

17,355,583

 

 

 

13,635,072

 

 

 

13,345,519

 

 

 

 

 

 

 

 

 

 

 

Mortgage Servicing Rights

 

20,766

 

 

 

0

 

 

 

20,955

 

 

 

0

 

 

 

0

 

Goodwill

 

1,794,997

 

 

 

1,478,014

 

 

 

1,796,848

 

 

 

1,478,014

 

 

 

1,478,014

 

Other Intangibles

 

27,580

 

 

 

30,837

 

 

 

26,923

 

 

 

29,931

 

 

 

36,947

 

Operating Lease Right-of-Use Asset

 

72,090

 

 

 

59,031

 

 

 

69,520

 

 

 

57,783

 

 

 

0

 

Other Real Estate Owned

 

26,316

 

 

 

18,472

 

 

 

22,595

 

 

 

15,515

 

 

 

16,865

 

Other Assets

 

771,233

 

 

 

532,561

 

 

 

777,634

 

 

 

551,205

 

 

 

559,184

 

Total Assets

$

26,116,703

 

 

$

19,465,080

 

 

$

26,184,247

 

 

$

19,662,324

 

 

$

19,250,498

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

$

23,122,784

 

 

$

17,165,071

 

 

$

23,172,403

 

 

$

17,344,638

 

 

$

16,971,602

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

$

13,018,640

 

 

$

9,281,403

 

 

$

13,179,900

 

 

$

9,231,059

 

 

$

9,577,934

 

Noninterest-bearing Deposits

 

7,495,594

 

 

 

4,647,907

 

 

 

7,405,260

 

 

 

4,621,362

 

 

 

4,416,815

 

Total Deposits

 

20,514,234

 

 

 

13,929,310

 

 

 

20,585,160

 

 

 

13,852,421

 

 

 

13,994,749

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

144,177

 

 

 

132,621

 

 

 

142,300

 

 

 

374,654

 

 

 

351,327

 

Long-term Borrowings

 

901,655

 

 

 

1,836,423

 

 

 

864,369

 

 

 

1,838,029

 

 

 

1,499,103

 

Total Borrowings

 

1,045,832

 

 

 

1,969,044

 

 

 

1,006,669

 

 

 

2,212,683

 

 

 

1,850,430

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

75,805

 

 

 

62,662

 

 

 

73,213

 

 

 

61,342

 

 

 

0

 

Other Liabilities

 

161,580

 

 

 

118,702

 

 

 

221,585

 

 

 

172,045

 

 

 

153,695

 

Total Liabilities

 

21,797,451

 

 

 

16,079,718

 

 

 

21,886,627

 

 

 

16,298,491

 

 

 

15,998,874

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

4,319,252

 

 

 

3,385,362

 

 

 

4,297,620

 

 

 

3,363,833

 

 

 

3,251,624

 

Total Shareholders' Equity

 

4,319,252

 

 

 

3,385,362

 

 

 

4,297,620

 

 

 

3,363,833

 

 

 

3,251,624

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

$

26,116,703

 

 

$

19,465,080

 

 

$

26,184,247

 

 

$

19,662,324

 

 

$

19,250,498

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

$

14,064,472

 

 

$

11,250,447

 

 

$

14,186,569

 

 

$

11,443,742

 

 

$

11,428,364

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

Quarterly Share Data:

2020

 

2019

 

2020

 

2020

 

2020

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.62

 

 

$

0.80

 

 

$

0.44

 

 

$

0.40

 

Diluted

$

0.71

 

 

$

0.62

 

 

$

0.80

 

 

$

0.44

 

 

$

0.40

 

Common Dividend Declared Per Share

$

0.35

 

 

$

0.35

 

 

$

0.35

 

 

$

0.35

 

 

$

0.35

 

High Common Stock Price

$

32.86

 

 

$

40.70

 

 

$

30.07

 

 

$

33.12

 

 

$

39.07

 

Low Common Stock Price

$

21.19

 

 

$

36.09

 

 

$

20.57

 

 

$

21.52

 

 

$

19.67

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

Basic

 

129,371,600

 

 

 

101,250,489

 

 

 

129,373,154

 

 

 

119,823,652

 

 

 

101,295,073

 

Diluted

 

129,479,390

 

 

 

101,537,640

 

 

 

129,454,966

 

 

 

119,887,823

 

 

 

101,399,181

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

45,442

 

 

$

35,543

 

 

$

45,414

 

 

$

45,416

 

 

$

35,604

 

Dividend Payout Ratio

 

49.20

%

 

 

56.16

%

 

 

43.76

%

 

 

86.20

%

 

 

88.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December

 

December

 

December

 

December

YTD Share Data:

 

 

2020

 

2019

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

Basic

 

 

$

2.40

 

 

$

2.55

 

 

$

2.46

 

 

$

1.54

 

Diluted

 

 

$

2.40

 

 

$

2.55

 

 

$

2.45

 

 

$

1.54

 

Common Dividend Declared Per Share

 

 

$

1.40

 

 

$

1.37

 

 

$

1.36

 

 

$

1.33

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

Basic

 

 

 

120,017,247

 

 

 

101,585,599

 

 

 

104,015,976

 

 

 

97,502,633

 

Diluted

 

 

 

120,090,232

 

 

 

101,852,577

 

 

 

104,298,825

 

 

 

97,890,078

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

 

 

$

171,876

 

 

$

139,508

 

 

$

141,610

 

 

$

131,755

 

Dividend Payout Ratio

 

 

 

59.47

%

 

 

53.64

%

 

 

55.24

%

 

 

87.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

 

March 31

EOP Share Data:

2020

 

2019

 

2020

 

2020

 

2020

 

 

 

 

 

 

 

 

 

 

Book Value Per Share

$

33.27

 

 

$

33.12

 

 

$

32.89

 

 

$

32.35

 

 

$

32.87

 

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

$

19.15

 

 

$

18.27

 

 

$

18.84

 

 

$

18.28

 

 

$

18.06

 

 

 

 

 

 

 

 

 

 

 

52-week High Common Stock Price

$

39.07

 

 

$

40.70

 

 

$

40.70

 

 

$

40.70

 

 

$

40.70

 

Date

 

01/02/20

 

 

 

11/05/19

 

 

 

11/05/19

 

 

 

11/05/19

 

 

 

11/05/19

 

52-week Low Common Stock Price

$

19.67

 

 

$

30.67

 

 

$

19.67

 

 

$

19.67

 

 

$

19.67

 

Date

 

03/23/20

 

 

 

01/02/19

 

 

 

03/23/20

 

 

 

03/23/20

 

 

 

03/23/20

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

129,188,507

 

 

 

101,553,671

 

 

 

129,762,348

 

 

 

129,755,395

 

 

 

101,723,600

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

3,051

 

 

 

2,204

 

 

 

3,137

 

 

 

3,039

 

 

 

2,206

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

$

4,297,620

 

 

$

3,363,833

 

 

$

4,267,441

 

 

$

4,197,855

 

 

$

3,343,702

 

Less: Total Intangibles

 

(1,823,771

)

 

 

(1,507,945

)

 

 

(1,823,129

)

 

 

(1,825,887

)

 

 

(1,506,368

)

Tangible Equity (non-GAAP)

$

2,473,849

 

 

$

1,855,888

 

 

$

2,444,312

 

 

$

2,371,968

 

 

$

1,837,334

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

129,188,507

 

 

 

101,553,671

 

 

 

129,762,348

 

 

 

129,755,395

 

 

 

101,723,600

 

Tangible Book Value Per Share (non-GAAP)

$

19.15

 

 

$

18.27

 

 

$

18.84

 

 

$

18.28

 

 

$

18.06

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

Selected Yields and Net Interest Margin:

2020

 

2019

 

2020

 

2020

 

2020

 

 

 

 

 

 

 

 

 

 

Net Loans and Loans held for sale

 

4.18

%

 

 

4.65

%

 

 

4.17

%

 

 

4.21

%

 

 

4.60

%

Investment Securities

 

2.08

%

 

 

2.74

%

 

 

2.17

%

 

 

2.44

%

 

 

2.70

%

Money Market Investments/FFS

 

0.42

%

 

 

2.57

%

 

 

0.42

%

 

 

0.49

%

 

 

2.23

%

Average Earning Assets Yield

 

3.62

%

 

 

4.28

%

 

 

3.59

%

 

 

3.70

%

 

 

4.21

%

Interest-bearing Deposits

 

0.43

%

 

 

1.33

%

 

 

0.54

%

 

 

0.67

%

 

 

1.19

%

Short-term Borrowings

 

0.55

%

 

 

1.52

%

 

 

0.44

%

 

 

0.54

%

 

 

1.34

%

Long-term Borrowings

 

1.15

%

 

 

2.35

%

 

 

1.65

%

 

 

1.68

%

 

 

2.21

%

Average Liability Costs

 

0.48

%

 

 

1.50

%

 

 

0.66

%

 

 

0.82

%

 

 

1.37

%

Net Interest Spread

 

3.14

%

 

 

2.78

%

 

 

2.93

%

 

 

2.88

%

 

 

2.84

%

Net Interest Margin

 

3.33

%

 

 

3.29

%

 

 

3.18

%

 

 

3.18

%

 

 

3.30

%

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

1.41

%

 

 

1.29

%

 

 

1.56

%

 

 

0.87

%

 

 

0.82

%

Return on Average Shareholders’ Equity

 

8.51

%

 

 

7.42

%

 

 

9.68

%

 

 

5.40

%

 

 

4.82

%

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

 

14.72

%

 

 

13.38

%

 

 

16.94

%

 

 

9.58

%

 

 

8.77

%

Efficiency Ratio

 

54.57

%

 

 

54.28

%

 

 

53.43

%

 

 

57.68

%

 

 

56.71

%

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

92,370

 

 

$

63,285

 

 

$

103,784

 

 

$

52,686

 

 

$

40,183

 

 

 

 

 

 

 

 

 

 

 

(b) Number of days

 

92

 

 

 

92

 

 

 

92

 

 

 

91

 

 

 

91

 

 

 

 

 

 

 

 

 

 

 

Average Total Shareholders' Equity (GAAP)

$

4,319,252

 

 

$

3,385,362

 

 

$

4,263,111

 

 

$

3,921,289

 

 

$

3,350,652

 

Less: Average Total Intangibles

 

(1,822,577

)

 

 

(1,508,851

)

 

 

(1,826,057

)

 

 

(1,708,683

)

 

 

(1,507,272

)

(c) Average Tangible Equity (non-GAAP)

$

2,496,675

 

 

$

1,876,511

 

 

$

2,437,054

 

 

$

2,212,606

 

 

$

1,843,380

 

Return on Average Tangible Equity (non-GAAP)

[(a) / (b)] x 366 or 365 / (c)

 

 

 

14.72

 

%

 

 

 

 

13.38

 

%

 

 

 

 

16.94

 

%

 

 

 

 

9.58

 

%

 

 

 

 

8.77

 

%

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

Year Ended

 

December

 

December

 

December

 

December

 

2020

2019

 

2018

 

2017

Selected Yields and Net Interest Margin:

 

 

 

 

 

 

 

Net Loans and Loans held for sale

 

4.27

%

 

 

4.85

%

 

 

4.77

%

 

 

4.56

%

Investment Securities

 

2.33

%

 

 

2.86

%

 

 

2.73

%

 

 

2.63

%

Money Market Investments/FFS

 

0.65

%

 

 

2.91

%

 

 

2.29

%

 

 

1.23

%

Average Earning Assets Yield

 

3.75

%

 

 

4.47

%

 

 

4.36

%

 

 

4.07

%

Interest-bearing Deposits

 

0.67

%

 

 

1.41

%

 

 

0.97

%

 

 

0.54

%

Short-term Borrowings

 

0.70

%

 

 

1.67

%

 

 

1.00

%

 

 

0.51

%

Long-term Borrowings

 

1.76

%

 

 

2.56

%

 

 

2.34

%

 

 

1.80

%

Average Liability Costs

 

0.80

%

 

 

1.60

%

 

 

1.15

%

 

 

0.69

%

Net Interest Spread

 

2.95

%

 

 

2.87

%

 

 

3.21

%

 

 

3.38

%

Net Interest Margin

 

3.24

%

 

 

3.39

%

 

 

3.58

%

 

 

3.58

%

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

Return on Average Assets

 

1.20

%

 

 

1.34

%

 

 

1.36

%

 

 

0.85

%

Return on Average Shareholders’ Equity

 

7.30

%

 

 

7.80

%

 

 

7.84

%

 

 

5.09

%

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

 

12.90

%

 

 

14.26

%

 

 

14.65

%

 

 

9.18

%

Loans & Leases, net of unearned income / Deposit Ratio

 

85.46

%

 

 

98.99

%

 

 

95.91

%

 

 

94.08

%

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

 

1.34

%

 

 

0.56

%

 

 

0.57

%

 

 

0.59

%

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

 

1.45

%

 

 

0.57

%

 

 

0.58

%

 

 

0.59

%

Nonaccrual Loans / Loans & Leases, net of unearned income

 

0.36

%

 

 

0.46

%

 

 

0.51

%

 

 

0.84

%

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

 

0.08

%

 

 

0.07

%

 

 

0.11

%

 

 

0.08

%

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

 

0.75

%

 

 

0.96

%

 

 

1.06

%

 

 

1.30

%

Non-performing Assets/ Total Assets

 

0.59

%

 

 

0.75

%

 

 

0.83

%

 

 

1.01

%

Primary Capital Ratio

 

17.22

%

 

 

17.44

%

 

 

17.23

%

 

 

17.34

%

Shareholders' Equity Ratio

 

16.41

%

 

 

17.11

%

 

 

16.89

%

 

 

17.00

%

Price / Book Ratio

 

0.97

x

 

1.17

x

 

0.98

x

 

1.13

x

Price / Earnings Ratio

 

13.50

x

 

15.14

x

 

12.71

x

 

22.59

x

Efficiency Ratio

 

55.36

%

 

 

52.53

%

 

 

51.32

%

 

 

53.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

289,023

 

 

$

260,099

 

 

$

256,342

 

 

$

150,581

 

 

 

 

 

 

 

 

 

Average Total Shareholders' Equity (GAAP)

$

3,956,969

 

 

$

3,336,075

 

 

$

3,268,944

 

 

$

2,959,293

 

Less: Average Total Intangibles

 

(1,716,738

)

 

 

(1,511,501

)

 

 

(1,519,174

)

 

 

(1,319,109

)

(b) Average Tangible Equity (non-GAAP)

$

2,240,231

 

 

$

1,824,574

 

 

$

1,749,770

 

 

$

1,640,184

 

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

 

12.90

%

 

 

14.26

%

 

 

14.65

%

 

 

9.18

%

 

 

 

 

 

 

 

 

(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

 

December

 

December

 

September

 

June

 

March

 

2020

 

2019

 

2020

 

2020

 

2020

Mortgage Banking Segment Data:

 

 

 

 

 

 

 

 

 

Applications

$

2,284,532

 

 

$

896,000

 

 

$

3,460,687

 

 

$

2,189,008

 

 

$

2,054,000

 

Loans originated

 

1,979,284

 

 

 

777,312

 

 

 

2,071,717

 

 

 

1,692,297

 

 

 

904,949

 

Loans sold

$

2,065,400

 

 

$

800,400

 

 

$

1,898,539

 

 

$

1,636,063

 

 

$

793,392

 

Purchase money % of loans closed

 

49

%

 

 

66

%

 

 

48

%

 

 

42

%

 

 

49

%

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

 

4.10

%

 

 

2.84

%

 

 

4.26

%

 

 

2.49

%

 

 

2.82

%

Net interest income

$

2,918

 

 

$

547

 

 

$

2,740

 

 

$

2,246

 

 

$

949

 

Other income

 

73,082

 

 

 

19,946

 

 

 

110,900

 

 

 

71,013

 

 

 

21,190

 

Other expense

 

41,193

 

 

 

18,419

 

 

 

43,417

 

 

 

35,261

 

 

 

20,757

 

Income taxes

 

5,656

 

 

 

192

 

 

 

14,823

 

 

 

6,946

 

 

 

273

 

Net income

$

29,151

 

 

$

1,882

 

 

$

55,400

 

 

$

31,052

 

 

$

1,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December

 

December

 

December

 

December

 

 

 

2020

 

2019

 

2018

 

2017

Mortgage Banking Segment Data:

 

 

 

 

 

 

 

 

 

Applications

 

 

$

9,988,227

 

 

$

4,330,000

 

 

$

3,912,000

 

 

$

3,337,000

 

Loans originated

 

 

 

6,648,247

 

 

 

2,941,722

 

 

 

2,619,454

 

 

 

2,333,895

 

Loans sold

 

 

$

6,393,394

 

 

$

2,804,451

 

 

$

2,608,242

 

 

$

2,350,813

 

Purchase money % of loans closed

 

 

 

47

%

 

 

72

%

 

 

83

%

 

 

82

%

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

 

 

 

3.63

%

 

 

2.86

%

 

 

2.72

%

 

 

2.80

%

Net interest income

 

 

$

8,853

 

 

$

916

 

 

$

1,315

 

 

$

(69

)

Other income

 

 

 

276,185

 

 

 

83,884

 

 

 

68,555

 

 

 

58,532

 

Other expense

 

 

 

140,628

 

 

 

72,288

 

 

 

72,632

 

 

 

62,072

 

Income taxes (benefit)

 

 

 

27,698

 

 

 

2,355

 

 

 

(505

)

 

 

(901

)

Net income (loss)

 

 

$

116,712

 

 

$

10,157

 

 

$

(2,257

)

 

$

(2,708

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

 

March 31

 

2020

 

2019

 

2020

 

2020

 

2020

Period End Mortgage Banking Segment Data:

 

 

 

 

 

 

 

 

 

Locked pipeline

$

989,640

 

 

$

143,465

 

 

$

1,398,898

 

 

$

889,275

 

 

$

739,322

 

Balance of loans serviced

$

3,587,953

 

 

$

0

 

 

$

3,551,157

 

 

$

3,552,292

 

 

$

0

 

Number of loans serviced

 

25,614

 

 

 

0

 

 

 

25,813

 

 

 

25,609

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

 

March 31

 

2020

 

2019

 

2020

 

2020

 

2020

Asset Quality Data:

 

 

 

 

 

 

 

 

 

EOP Non-Accrual Loans

$

62,718

 

 

$

63,209

 

 

$

71,312

 

 

$

67,669

 

 

$

64,036

 

EOP 90-Day Past Due Loans

 

13,832

 

 

 

9,494

 

 

 

12,583

 

 

 

11,150

 

 

 

7,051

 

EOP Restructured Loans (1)

 

55,657

 

 

 

58,369

 

 

 

68,381

 

 

 

77,436

 

 

 

61,470

 

Total EOP Non-performing Loans

$

132,207

 

 

$

131,072

 

 

$

152,276

 

 

$

156,255

 

 

$

132,557

 

 

 

 

 

 

 

 

 

 

 

EOP Other Real Estate Owned

 

22,595

 

 

 

15,515

 

 

 

25,696

 

 

 

29,947

 

 

 

15,849

 

Total EOP Non-performing Assets

$

154,802

 

 

$

146,587

 

 

$

177,972

 

 

$

186,202

 

 

$

148,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December

 

December

 

September

 

June

 

March

 

2020

 

2019

 

2020

 

2020

 

2020

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

Beginning Balance

$

225,812

 

 

$

77,098

 

 

$

215,121

 

 

$

154,923

 

 

$

77,057

 

Cumulative Effect Adjustment for CECL

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

57,442

 

 

 

225,812

 

 

 

77,098

 

 

 

215,121

 

 

 

154,923

 

 

 

134,499

 

Initial allowance for acquired PCD loans

 

0

 

 

 

0

 

 

 

0

 

 

 

18,635

 

 

 

0

 

Gross Charge-offs

 

(10,120

)

 

 

(9,704

)

 

 

(8,468

)

 

 

(5,634

)

 

 

(8,761

)

Recoveries

 

3,203

 

 

 

3,796

 

 

 

2,820

 

 

 

1,290

 

 

 

2,073

 

Net Charge-offs

 

(6,917

)

 

 

(5,908

)

 

 

(5,648

)

 

 

(4,344

)

 

 

(6,688

)

Provision for Loan & Lease Losses

 

16,935

 

 

 

5,867

 

 

 

16,339

 

 

 

45,907

 

 

 

27,112

 

Ending Balance

$

235,830

 

 

$

77,057

 

 

$

225,812

 

 

$

215,121

 

 

$

154,923

 

Reserve for lending-related commitments

 

19,250

 

 

 

1,733

 

 

 

15,960

 

 

 

11,946

 

 

 

7,742

 

Allowance for Credit Losses (2)

$

255,080

 

 

$

78,790

 

 

$

241,772

 

 

$

227,067

 

 

$

162,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

December

 

December

 

December

 

December

 

 

 

2020

 

2019

 

2018

 

2017

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

 

Beginning Balance

 

 

$

77,057

 

 

$

76,703

 

 

$

76,627

 

 

$

72,771

 

Cumulative Effect Adjustment for CECL

 

 

 

57,442

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

 

 

134,499

 

 

 

76,703

 

 

 

76,627

 

 

 

72,771

 

Initial allowance for acquired PCD loans

 

 

 

18,635

 

 

 

0

 

 

 

0

 

 

 

0

 

Gross Charge-offs

 

 

 

(32,983

)

 

 

(29,110

)

 

 

(28,606

)

 

 

(32,863

)

Recoveries

 

 

 

9,386

 

 

 

8,151

 

 

 

6,669

 

 

 

8,313

 

Net Charge-offs

 

 

 

(23,597

)

 

 

(20,959

)

 

 

(21,937

)

 

 

(24,550

)

Provision for Loan & Lease Losses

 

 

 

106,293

 

 

 

21,313

 

 

 

22,013

 

 

 

28,406

 

Ending Balance

 

 

$

235,830

 

 

$

77,057

 

 

$

76,703

 

 

$

76,627

 

Reserve for lending-related commitments

 

 

 

19,250

 

 

 

1,733

 

 

 

1,389

 

 

 

679

 

Allowance for Credit Losses (2)

 

 

$

255,080

 

 

$

78,790

 

 

$

78,092

 

 

$

77,306

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1)

Restructured loans with an aggregate balance of $41,185, $53,665, $59,916, $51,775 and $48,387 at December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.

(2)

Includes allowances for loan losses and lending-related commitments.

 

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

Source: United Bankshares, Inc.