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Press Release

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

Company Release - 4/26/2022

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the first quarter of 2022 of $81.7 million, or $0.60 per diluted share, as compared to earnings of $73.9 million, or $0.56 per diluted share, for the fourth quarter of 2021. The quarter was highlighted by strong 11% annualized loan growth (excluding Paycheck Protection Program loans), net interest margin expansion, and the resumption of United’s share repurchase program.

First quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.13%, 6.96% and 11.63%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.04%, 6.44% and 10.87%, respectively, for the fourth quarter of 2021.

“We came out of the gate quickly and are off to a good start in 2022,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We continue to experience promising loan growth in our new markets in the Southeast, as well as in our legacy markets, especially in the Greater Washington Region. We remain well capitalized, have sound liquidity levels, and maintain our longstanding commitments to strong risk management practices and credit underwriting discipline.”

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2022 was relatively flat from the first quarter of 2021, increasing $542 thousand, or less than 1%, to $191.5 million. 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 quarter of 2022 was also relatively flat from the first quarter of 2021, increasing $604 thousand, or less than 1%, to $192.6 million. United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”) on December 3, 2021. The slight increase in net interest income and tax-equivalent net interest income was primarily due to the impact of higher average earning assets, driven by the Community Bankers Trust acquisition and lower interest expense on deposits. These increases were mostly offset by lower accretion on acquired loans, lower fee income from Paycheck Protection Program (“PPP”) loans and higher average interest-bearing deposit balances as a result of the Community Bankers Trust acquisition. Average earning assets for the first quarter of 2022 increased $2.5 billion, or 11%, from the first quarter of 2021 due to a $1.5 billion increase in average investment securities, a $739.3 million increase in average short-term investments and a $312.5 million increase in average net loans and loans held for sale. Average interest-bearing deposits for the first quarter of 2022 increased $1.2 billion, or 9%, from the first quarter of 2021; however, the yield on interest-bearing deposits decreased 13 basis points from the first quarter of 2021 to 0.24% for the first quarter of 2022. The net interest spread for the first quarter of 2022 decreased 28 basis points from the first quarter of 2021 to 2.86% due to a 40 basis point decrease in the average yield on earning assets partially offset by a 12 basis point decrease in the average cost of funds. Loan accretion on acquired loans was $4.1 million and $9.8 million for the first quarter of 2022 and 2021, respectively, a decrease of $5.7 million. Net PPP loan fee income of $4.1 million was recognized in the first quarter of 2022 as compared to $11.3 million for the first quarter of 2021. The net interest margin of 2.99% for the first quarter of 2022 was a decrease of 31 basis points from the net interest margin of 3.30% for the first quarter of 2021.

On a linked-quarter basis, net interest income for the first quarter of 2022 increased $7.8 million, or 4%, from the fourth quarter of 2021. Tax-equivalent net interest income for the first quarter of 2022 increased $7.9 million, or 4%, from the fourth quarter of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets due to the full-quarter impact of the Community Bankers Trust acquisition and organic growth partially offset by lower acquired loan accretion and PPP loan fee income. Average earning assets increased approximately $1.1 billion, or 4%, from the fourth quarter of 2021 due to increases in average net loans and loans held for sale of $900.9 million and average securities of $796.3 million partially offset by a decrease in average short-term investments of $580.2 million. The net interest spread of 2.86% for the first quarter of 2022 increased 4 basis points from the fourth quarter of 2021 due to a 3 basis point increase in the average yield on earning assets and a 1 basis point decrease in the average cost of funds. Loan accretion on acquired loans decreased $2.1 million from the fourth quarter of 2021. Net PPP loan fee income for the first quarter of 2022 decreased $936 thousand from the fourth quarter of 2021. The net interest margin of 2.99% for the first quarter of 2022 was an increase of 5 basis points from the net interest margin of 2.94% for the fourth quarter of 2021.

Credit Quality

United’s asset quality continues to be sound. At March 31, 2022, non-performing loans were $79.9 million, or 0.43% of loans & leases, net of unearned income, down from $90.8 million, or 0.50% of loans & leases, net of unearned income, at December 31, 2021. Total non-performing assets of $93.5 million, including other real estate owned (“OREO”) of $13.6 million at March 31, 2022, represented 0.32% of total assets as compared to non-performing assets of $105.6 million, including OREO of $14.8 million, or 0.36% of total assets at December 31, 2021.

The provision for credit losses was a net benefit of $3.4 million for the first quarter of 2022 as compared to a provision for credit losses expense of $143 thousand for the first quarter of 2021. The decrease in the provision in relation to the prior year quarter was primarily driven by the impact of better performance trends within the loan portfolio. On a linked-quarter basis, the provision for credit losses for the first quarter of 2022 was a net benefit of $3.4 million compared to a net benefit of $7.4 million for the fourth quarter of 2021. The fourth quarter of 2021 included a provision for loan losses of $12.3 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Community Bankers Trust.

As of March 31, 2022, the allowance for loan & lease losses was $214.6 million, or 1.17% of loans & leases, net of unearned income, as compared to $216.0 million, or 1.20% of loans & leases, net of unearned income, at December 31, 2021. Net recoveries were $2.0 million for the first quarter of 2022 compared to net charge-offs of $4.5 million for the first quarter of 2021. Annualized net recoveries as a percentage of average loans & leases, net of unearned income were (0.04)% for the first quarter of 2022, compared to annualized net charge-offs of 0.10% for the first quarter of 2021. Net charge-offs were $125 thousand for the fourth quarter of 2021.

Noninterest Income

Noninterest income for the first quarter of 2022 was $46.0 million, which was a decrease of $46.6 million, or 50%, from the first quarter of 2021. The decrease in noninterest income was primarily driven by a $46.2 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. Income from bank-owned life insurance (“BOLI”) for the first quarter of 2022 was $2.2 million, an increase of $791 thousand from the first quarter of 2021. Fees from deposit services for the first quarter of 2022 were $10.1 million, an increase of $1.3 million from the first quarter of 2021.

On a linked-quarter basis, noninterest income for the first quarter of 2022 decreased $8.0 million, or 15%, from the fourth quarter of 2021. The decrease in noninterest income was primarily driven by a decrease of $8.1 million in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower loan pipeline valuation. BOLI income increased $971 thousand from the fourth quarter of 2021 to $2.2 million. Fees from brokerage services increased $853 thousand from the fourth quarter of 2021 to $4.6 million.

Noninterest Expense

Noninterest expense for the first quarter of 2022 was $139.2 million, a decrease of $9.8 million, or 7%, from the first quarter of 2021. Employee compensation decreased $9.8 million due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. OREO expense decreased $3.5 million due to fewer declines in the fair value of OREO properties. Partially offsetting the decreases in noninterest expense was an increase in the expense for reserve for unfunded loan commitments of $4.5 million mainly due to an increase in outstanding loan commitments.

On a linked-quarter basis, noninterest expense for the first quarter of 2022 decreased $12.6 million, or 8%, from the fourth quarter of 2021 primarily due to a decrease of $8.9 million in employee compensation and $3.5 million in data processing. The decrease in employee compensation was primarily due to fewer employees as well as lower employee commissions, incentives and overtime related to mortgage banking production. The fourth quarter of 2021 also included $2.5 million of merger-related employee compensation expenses from the Community Bankers Trust acquisition. The decrease in data processing expense was primarily due to $3.5 million of merger-related expenses associated with the Community Bankers Trust acquisition recognized in the fourth quarter of 2021. Also included in noninterest expense were merger-related expenses of $508 thousand for the first quarter of 2022 as compared to $2.0 million for the fourth quarter of 2021.

Income Tax Expense

For the first quarter of 2022, income tax expense was $20.1 million as compared to $27.6 million for the first quarter of 2021. The decrease of $7.5 million was primarily due to lower earnings and a lower effective tax rate. On a linked-quarter basis, income tax expense increased $607 thousand primarily due to higher earnings partially offset by a lower effective tax rate. United’s effective tax rate was 19.8% for the first quarter of 2022, 20.5% for the first quarter of 2021 and 20.9% for the fourth quarter of 2021.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.1% at March 31, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.0%, 13.0% and 10.4%, respectively. The March 31, 2022 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the first quarter of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 711 thousand shares of its common stock at an average price per share of $35.15. During the first quarter of 2021, United repurchased, under a previously announced stock repurchase plan, approximately 306 thousand shares of its common stock at an average price per share of $32.52. United did not repurchase any shares of its common stock during the fourth quarter of 2021.

About United Bankshares, Inc.

As of March 31, 2022, United had consolidated assets of approximately $29.4 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 March 31, 2022 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2022 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic, on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; risks relating to the merger with Community Bankers Trust, including the successful integration of operations of Community Bankers Trust, the expected growth opportunities and costs savings from the merger, and deposit attrition, operating costs, customer losses and business disruption following the merger; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

Three Months Ended

EARNINGS SUMMARY:

 

 

 

March

2022

 

March

2021

 

December

2021

Interest income

 

 

 

$

202,795

 

 

$

205,657

 

 

$

195,194

 

Interest expense

 

 

 

 

11,293

 

 

 

14,697

 

 

 

11,516

 

Net interest income

 

 

 

 

191,502

 

 

 

190,960

 

 

 

183,678

 

Provision for credit losses

 

 

 

 

(3,410

)

 

 

143

 

 

 

(7,405

)

Noninterest income

 

 

 

 

46,023

 

 

 

92,573

 

 

 

54,049

 

Noninterest expense

 

 

 

 

139,173

 

 

 

148,927

 

 

 

151,789

 

Income before income taxes

 

 

 

 

101,762

 

 

 

134,463

 

 

 

93,343

 

Income taxes

 

 

 

 

20,098

 

 

 

27,565

 

 

 

19,491

 

Net income

 

 

 

$

81,664

 

 

$

106,898

 

 

$

73,852

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.60

 

 

$

0.83

 

 

$

0.56

 

Diluted

 

 

 

 

0.60

 

 

 

0.83

 

 

 

0.56

 

Cash dividends

 

 

 

 

0.36

 

 

 

0.35

 

 

 

0.36

 

Book value

 

 

 

 

33.77

 

 

 

33.54

 

 

 

34.60

 

Closing market price

 

 

 

$

34.88

 

 

$

38.58

 

 

$

36.28

 

Common shares outstanding:

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

136,068,439

 

 

 

129,175,800

 

 

 

136,392,758

 

Weighted average-basic

 

 

 

 

136,058,328

 

 

 

128,635,740

 

 

 

130,939,640

 

Weighted average-diluted

 

 

 

 

136,435,229

 

 

 

128,890,861

 

 

 

131,295,816

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

 

1.13

%

 

 

1.64

%

 

 

1.04

%

Return on average shareholders’ equity

 

 

 

 

6.96

%

 

 

9.97

%

 

 

6.44

%

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

 

 

 

 

11.63

%

 

 

17.20

%

 

 

10.87

%

Average equity to average assets

 

 

 

 

16.22

%

 

 

16.41

%

 

 

16.22

%

Net interest margin

 

 

 

 

2.99

%

 

 

3.30

%

 

 

2.94

%

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

 

 

March 31

2022

 

December 31

2021

 

March 31

2021

Assets

 

 

 

$

29,365,511

 

 

$

29,328,902

 

 

$

27,030,755

 

Earning assets

 

 

 

 

25,958,745

 

 

 

26,083,089

 

 

 

24,023,292

 

Loans & leases, net of unearned income

 

 

 

 

18,392,086

 

 

 

18,023,648

 

 

 

17,365,891

 

Loans held for sale

 

 

 

 

340,040

 

 

 

504,416

 

 

 

808,134

 

Investment securities

 

 

 

 

5,020,712

 

 

 

4,295,749

 

 

 

3,402,922

 

Total deposits

 

 

 

 

23,474,301

 

 

 

23,350,263

 

 

 

21,396,474

 

Shareholders’ equity

 

 

 

 

4,595,140

 

 

 

4,718,628

 

 

 

4,332,698

 

 

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

 

 

 

 

 

 

 

March

 

March

 

December

 

 

 

 

 

 

 

2022

 

2021

 

2021

Interest & Loan Fees Income (GAAP)

 

 

 

 

 

 

$

202,795

 

 

$

205,657

 

 

$

195,194

 

Tax equivalent adjustment

 

 

 

 

 

 

 

1,109

 

 

 

1,047

 

 

 

1,037

 

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

 

 

 

 

 

 

 

203,904

 

 

 

206,704

 

 

 

196,231

 

Interest Expense

 

 

 

 

 

 

 

11,293

 

 

 

14,697

 

 

 

11,516

 

Net Interest Income (FTE) (non-GAAP)

 

 

 

 

 

 

 

192,611

 

 

 

192,007

 

 

 

184,715

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

 

 

 

 

 

 

(3,410

)

 

 

143

 

 

 

(7,405

)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

 

 

 

 

 

 

4,127

 

 

 

3,763

 

 

 

4,327

 

Fees from brokerage services

 

 

 

 

 

 

 

4,552

 

 

 

4,323

 

 

 

3,699

 

Fees from deposit services

 

 

 

 

 

 

 

10,148

 

 

 

8,896

 

 

 

10,509

 

Bankcard fees and merchant discounts

 

 

 

 

 

 

 

1,379

 

 

 

1,064

 

 

 

1,580

 

Other charges, commissions, and fees

 

 

 

 

 

 

 

759

 

 

 

759

 

 

 

753

 

Income from bank-owned life insurance

 

 

 

 

 

 

 

2,194

 

 

 

1,403

 

 

 

1,223

 

Income from mortgage banking activities

 

 

 

 

 

 

 

19,203

 

 

 

65,395

 

 

 

27,342

 

Mortgage loan servicing income

 

 

 

 

 

 

 

2,387

 

 

 

2,355

 

 

 

2,435

 

Net (losses) gains on investment securities

 

 

 

 

 

 

 

(251

)

 

 

2,609

 

 

 

(39

)

Other noninterest income

 

 

 

 

 

 

 

1,525

 

 

 

2,006

 

 

 

2,220

 

Total Noninterest Income

 

 

 

 

 

 

 

46,023

 

 

 

92,573

 

 

 

54,049

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

 

 

 

 

 

 

62,621

 

 

 

72,412

 

 

 

71,542

 

Employee benefits

 

 

 

 

 

 

 

12,851

 

 

 

15,450

 

 

 

10,819

 

Net occupancy

 

 

 

 

 

 

 

11,187

 

 

 

10,941

 

 

 

10,653

 

Data processing

 

 

 

 

 

 

 

7,371

 

 

 

7,026

 

 

 

10,852

 

Amortization of intangibles

 

 

 

 

 

 

 

1,379

 

 

 

1,466

 

 

 

1,509

 

OREO expense

 

 

 

 

 

 

 

147

 

 

 

3,625

 

 

 

1,004

 

Equipment expense

 

 

 

 

 

 

 

7,335

 

 

 

6,044

 

 

 

6,819

 

FDIC insurance expense

 

 

 

 

 

 

 

2,673

 

 

 

2,000

 

 

 

2,626

 

Mortgage loan servicing expense and impairment

 

 

 

 

 

 

 

1,643

 

 

 

3,177

 

 

 

2,217

 

Expense for reserve for unfunded loan commitments

 

 

 

 

 

 

 

5,237

 

 

 

774

 

 

 

6,094

 

Other noninterest expense

 

 

 

 

 

 

 

26,729

 

 

 

26,012

 

 

 

27,654

 

Total Noninterest Expense

 

 

 

 

 

 

 

139,173

 

 

 

148,927

 

 

 

151,789

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

102,871

 

 

 

135,510

 

 

 

94,380

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

 

 

 

 

 

1,109

 

 

 

1,047

 

 

 

1,037

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

 

 

 

 

 

 

101,762

 

 

 

134,463

 

 

 

93,343

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

 

 

 

 

 

 

20,098

 

 

 

27,565

 

 

 

19,491

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

$

81,664

 

 

$

106,898

 

 

$

73,852

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

 

 

 

 

 

 

19.75

%

 

 

20.50

%

 

 

20.88

%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2022

 

March 31, 2021

 

March 31

 

December 31

 

 

Q-T-D Average

 

Q-T-D Average

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

3,377,720

 

 

$

2,583,986

 

 

$

2,803,093

 

 

$

3,758,170

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

4,453,139

 

 

 

2,984,281

 

 

 

4,760,934

 

 

 

4,042,699

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

4,453,139

 

 

 

2,984,281

 

 

 

4,760,934

 

 

 

4,042,699

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,027

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(19

)

 

 

(23

)

 

 

(19

)

 

 

(19

)

Net held to maturity securities

 

 

1,001

 

 

 

1,004

 

 

 

1,001

 

 

 

1,001

 

Equity Securities

 

 

12,528

 

 

 

10,893

 

 

 

12,357

 

 

 

12,404

 

Other Investment Securities

 

 

242,694

 

 

 

219,937

 

 

 

246,420

 

 

 

239,645

 

Total Securities

 

 

4,709,362

 

 

 

3,216,115

 

 

 

5,020,712

 

 

 

4,295,749

 

Total Cash and Securities

 

 

8,087,082

 

 

 

5,800,101

 

 

 

7,823,805

 

 

 

8,053,919

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

327,673

 

 

 

621,688

 

 

 

340,040

 

 

 

504,416

 

 

 

 

 

 

 

 

 

 

Commercial Loans & Leases

 

 

13,986,982

 

 

 

13,298,719

 

 

 

14,072,235

 

 

 

13,809,735

 

Mortgage Loans

 

 

2,989,438

 

 

 

3,114,722

 

 

 

3,048,679

 

 

 

3,008,410

 

Consumer Loans

 

 

1,253,905

 

 

 

1,230,949

 

 

 

1,298,366

 

 

 

1,233,162

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

18,230,325

 

 

 

17,644,390

 

 

 

18,419,280

 

 

 

18,051,307

 

Unearned income

 

 

(27,766

)

 

 

(28,526

)

 

 

(27,194

)

 

 

(27,659

)

Loans & Leases, net of unearned income

 

 

18,202,559

 

 

 

17,615,864

 

 

 

18,392,086

 

 

 

18,023,648

 

Allowance for Loan & Lease Losses

 

 

(216,016

)

 

 

(235,795

)

 

 

(214,594

)

 

 

(216,016

)

Net Loans

 

 

17,986,543

 

 

 

17,380,069

 

 

 

18,177,492

 

 

 

17,807,632

 

 

 

 

 

 

 

 

 

 

Mortgage Servicing Rights

 

 

22,855

 

 

 

21,186

 

 

 

23,089

 

 

 

23,144

 

Goodwill

 

 

1,887,197

 

 

 

1,799,328

 

 

 

1,889,244

 

 

 

1,886,494

 

Other Intangibles

 

 

23,928

 

 

 

26,311

 

 

 

23,034

 

 

 

24,413

 

Operating Lease Right-of-Use Asset

 

 

80,446

 

 

 

68,030

 

 

 

77,097

 

 

 

81,942

 

Other Real Estate Owned

 

 

14,302

 

 

 

22,457

 

 

 

13,641

 

 

 

14,823

 

Bank Owned Life Insurance

 

 

478,575

 

 

 

355,967

 

 

 

479,064

 

 

 

478,067

 

Other Assets

 

 

435,921

 

 

 

395,979

 

 

 

519,005

 

 

 

454,052

 

Total Assets

 

$

29,344,522

 

 

$

26,491,116

 

 

$

29,365,511

 

 

$

29,328,902

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

26,052,404

 

 

$

23,507,417

 

 

$

25,958,745

 

 

$

26,083,089

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

14,383,839

 

 

$

13,184,728

 

 

$

14,467,340

 

 

$

14,369,716

 

Noninterest-bearing Deposits

 

 

8,991,131

 

 

 

7,735,638

 

 

 

9,006,961

 

 

 

8,980,547

 

Total Deposits

 

 

23,374,970

 

 

 

20,920,366

 

 

 

23,474,301

 

 

 

23,350,263

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

133,987

 

 

 

142,155

 

 

 

136,370

 

 

 

128,844

 

Long-term Borrowings

 

 

817,363

 

 

 

833,365

 

 

 

817,235

 

 

 

817,394

 

Total Borrowings

 

 

951,350

 

 

 

975,520

 

 

 

953,605

 

 

 

946,238

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

85,110

 

 

 

71,696

 

 

 

81,678

 

 

 

86,703

 

Other Liabilities

 

 

173,312

 

 

 

176,784

 

 

 

260,787

 

 

 

227,070

 

Total Liabilities

 

 

24,584,742

 

 

 

22,144,366

 

 

 

24,770,371

 

 

 

24,610,274

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,759,780

 

 

 

4,346,750

 

 

 

4,595,140

 

 

 

4,718,628

 

Total Shareholders' Equity

 

 

4,759,780

 

 

 

4,346,750

 

 

 

4,595,140

 

 

 

4,718,628

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

29,344,522

 

 

$

26,491,116

 

 

$

29,365,511

 

 

$

29,328,902

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

15,335,189

 

 

$

14,160,248

 

 

$

15,420,945

 

 

$

15,315,954

 

 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March

 

March

 

December

Quarterly Share Data:

 

 

 

2022

 

2021

 

2021

Earnings Per Share:

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.60

 

 

$

0.83

 

 

$

0.56

 

Diluted

 

 

 

$

0.60

 

 

$

0.83

 

 

$

0.56

 

Common Dividend Declared Per Share

 

 

 

$

0.36

 

 

$

0.35

 

 

$

0.36

 

High Common Stock Price

 

 

 

$

39.80

 

 

$

41.61

 

 

$

39.41

 

Low Common Stock Price

 

 

 

$

33.58

 

 

$

31.57

 

 

$

33.34

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

Basic

 

 

 

 

136,058,328

 

 

 

128,635,740

 

 

 

130,939,640

 

Diluted

 

 

 

 

136,435,229

 

 

 

128,890,861

 

 

 

131,295,816

 

 

 

 

 

 

 

 

 

 

Common Dividends

 

 

 

$

49,266

 

 

$

45,254

 

 

$

46,564

 

Dividend Payout Ratio

 

 

 

 

60.33

%

 

 

42.33

%

 

 

63.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

EOP Share Data:

 

 

 

2022

 

2021

 

2021

Book Value Per Share

 

 

 

$

33.77

 

 

$

34.60

 

 

$

33.54

 

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

 

 

 

$

19.72

 

 

$

20.59

 

 

$

19.38

 

52-week High Common Stock Price

 

 

 

$

42.50

 

 

$

42.50

 

 

$

41.61

 

Date

 

 

 

05/18/21

 

05/18/21

 

03/18/21

52-week Low Common Stock Price

 

 

 

$

31.74

 

 

$

31.57

 

 

$

20.57

 

Date

 

 

 

9/20/21

 

1/29/21

 

09/25/20

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

136,068,439

 

 

 

136,392,758

 

 

 

129,175,800

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

3,090

 

 

 

3,143

 

 

 

3,033

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

$

4,595,140

 

 

$

4,718,628

 

 

$

4,332,698

 

Less: Total Intangibles

 

 

 

 

(1,912,278

)

 

 

(1,910,907

)

 

 

(1,829,495

)

Tangible Equity (non-GAAP)

 

 

 

$

2,682,862

 

 

$

2,807,721

 

 

$

2,503,203

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

136,068,439

 

 

 

136,392,758

 

 

 

129,175,800

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

$

19.72

 

 

$

20.59

 

 

$

19.38

 

       

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

March

 

March

 

December

 

Selected Yields and Net Interest Margin:

 

 

 

 

 

2022

 

2021

 

2021

 

Net Loans and Loans held for sale

 

 

 

 

 

 

4.01

%

 

 

4.26

%

 

 

4.04

%

 

Investment Securities

 

 

 

 

 

 

1.72

%

 

 

1.93

%

 

 

1.72

%

 

Money Market Investments/FFS

 

 

 

 

 

 

0.31

%

 

 

0.34

%

 

 

0.28

%

 

Average Earning Assets Yield

 

 

 

 

 

 

3.16

%

 

 

3.56

%

 

 

3.13

%

 

Interest-bearing Deposits

 

 

 

 

 

 

0.24

%

 

 

0.37

%

 

 

0.26

%

 

Short-term Borrowings

 

 

 

 

 

 

0.55

%

 

 

0.51

%

 

 

0.52

%

 

Long-term Borrowings

 

 

 

 

 

 

1.27

%

 

 

1.23

%

 

 

1.23

%

 

Average Liability Costs

 

 

 

 

 

 

0.30

%

 

 

0.42

%

 

 

0.31

%

 

Net Interest Spread

 

 

 

 

 

 

2.86

%

 

 

3.14

%

 

 

2.82

%

 

Net Interest Margin

 

 

 

 

 

 

2.99

%

 

 

3.30

%

 

 

2.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

 

 

 

 

 

1.13

%

 

 

1.64

%

 

 

1.04

%

 

Return on Average Shareholders’ Equity

 

 

 

 

 

 

6.96

%

 

 

9.97

%

 

 

6.44

%

 

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

 

 

 

 

 

 

11.63

%

 

 

17.20

%

 

 

10.87

%

 

Efficiency Ratio

 

 

 

 

 

 

58.59

%

 

 

52.53

%

 

 

63.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

 

 

 

 

$

81,664

 

 

$

106,898

 

 

$

73,852

 

 

(b) Number of Days

 

 

 

 

 

 

90

 

 

 

90

 

 

 

92

 

 

Average Total Shareholders' Equity (GAAP)

 

 

 

 

 

$

4,759,780

 

 

$

4,346,750

 

 

$

4,551,634

 

 

Less: Average Total Intangibles

 

 

 

 

 

 

(1,911,125

)

 

 

(1,825,639

)

 

 

(1,856,141

)

 

(c) Average Tangible Equity (non-GAAP)

 

 

 

 

 

$

2,848,655

 

 

$

2,521,111

 

 

$

2,695,493

 

 

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

365 or 366 / (c)

 

 

 

 

 

 

11.63

%

 

 

17.20

%

 

 

10.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

March 31

2022

 

December 31

2021

 

March 31

2021

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

 

 

78.35

%

 

 

77.19

%

 

 

81.16

%

 

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

 

 

 

 

 

 

1.17

%

 

 

1.20

%

 

 

1.33

%

 

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

 

 

 

 

 

 

1.37

%

 

 

1.37

%

 

 

1.45

%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

 

 

0.19

%

 

 

0.20

%

 

 

0.28

%

 

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

 

 

 

 

 

 

0.08

%

 

 

0.10

%

 

 

0.09

%

 

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

 

 

 

 

 

 

0.43

%

 

 

0.50

%

 

 

0.67

%

 

Non-performing Assets/ Total Assets

 

 

 

 

 

 

0.32

%

 

 

0.36

%

 

 

0.50

%

 

Primary Capital Ratio

 

 

 

 

 

 

16.36

%

 

 

16.79

%

 

 

16.80

%

 

Shareholders' Equity Ratio

 

 

 

 

 

 

15.65

%

 

 

16.09

%

 

 

16.03

%

 

Price / Book Ratio

 

 

 

 

 

 

1.03

 

x

 

1.05

 

x

 

1.15

 

x

Price / Earnings Ratio

 

 

 

 

 

 

14.57

 

x

 

12.82

 

x

 

11.63

 

x

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol:  UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

March

 

March

 

December

 

Mortgage Banking Segment Data:

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

Applications

 

 

 

 

 

 

 

$

    1,696,504

 

 

$

   2,630,426

 

 

$

     1,534,311

 

 

Loans originated

 

 

 

 

 

 

 

 

1,006,363

 

 

 

1,910,619

 

 

 

1,287,629

 

 

Loans sold

 

 

 

 

 

 

 

$

    1,170,124

 

 

  $

    1,817,884

 

 

$

     1,273,014

 

 

Purchase money % of loans closed

 

 

 

 

 

 

 

 

73

%

 

 

43

%

 

 

69

%

 

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

 

 

 

 

 

 

 

 

2.98

%

 

 

4.16

%

 

 

3.02

%

 

Net interest income

 

 

 

 

 

 

 

$

           2,317

 

 

$

           2,650

 

 

$

            2,609

 

 

Other income

 

 

 

 

 

 

 

 

23,397

 

 

 

67,507

 

 

 

30,921

 

 

Other expense

 

 

 

 

 

 

 

 

25,448

 

 

 

41,183

 

 

 

29,147

 

 

Income taxes

 

 

 

 

 

 

 

 

57

 

 

 

5,940

 

 

 

876

 

 

Net income

 

 

 

 

 

 

 

 $

              209

 

 

$

         23,034

 

 

$

            3,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

 

Period End Mortgage Banking Segment Data:

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

Locked pipeline

 

 

 

 

 

 

 

$

       412,809

 

 

$

      448,889

 

 

$

       979,842

 

 

Balance of loans serviced

 

 

 

 

 

 

 

$

    3,623,207

 

 

$

    3,698,998

 

 

$

    3,585,890

 

 

Number of loans serviced

 

 

 

 

 

 

 

 

 24,677

 

 

 

                 25,198

 

 

 

        25,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

 

Asset Quality Data:

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

EOP Non-Accrual Loans

 

 

 

 

 

 

 

$

         34,093

 

 

$

         36,028

 

 

$

          48,985

 

 

EOP 90-Day Past Due Loans

 

 

 

 

 

 

 

 

15,179

 

 

 

18,879

 

 

 

15,719

 

 

EOP Restructured Loans (1)

 

 

 

 

 

 

 

 

30,582

 

 

 

35,856

 

 

 

51,529

 

 

   Total EOP Non-performing Loans

 

 

 

 

 

 

 

$

         79,854

 

 

$

         90,763

 

 

$

        116,233

 

 

 EOP Other Real Estate Owned

 

 

 

 

 

 

 

 

13,641

 

 

 

14,823

 

 

 

18,690

 

 

   Total EOP Non-performing Assets

 

 

 

 

 

 

 

$

         93,495

 

 

$

       105,586

 

 

$

        134,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

March

 

March

 

December

 

Allowance for Loan & Lease Losses:

 

 

 

 

 

 

 

2022

 

2021

 

2021

 

Beginning Balance

 

 

 

 

 

 

 

$

       216,016

 

 

$

      235,830

 

 

$

        210,891

 

 

 Initial allowance for acquired PCD loans

 

 

 

 

 

 

 

 

 0

 

 

 

0

 

 

 

                 12,629

 

 

 Gross Charge-offs

 

 

 

 

 

 

 

 

 (1,476

)

 

 

(6,957

)

 

 

                  (4,205

)

 

 Recoveries

 

 

 

 

 

 

 

 

 3,456

 

 

 

2,415

 

 

 

                   4,080

 

 

 Net Recoveries (Charge-offs)

 

 

 

 

 

 

 

 

1,980

 

 

 

(4,542

)

 

 

(125

)

 

 Provision for Loan & Lease Losses

 

 

 

 

 

 

 

 

(3,402

)

 

 

294

 

 

 

(7,379

)

 

Ending Balance

 

 

 

 

 

 

 

 

214,594

 

 

 

231,582

 

 

 

216,016

 

 

Reserve for lending-related commitments

 

 

 

 

 

 

 

 

36,679

 

 

 

20,024

 

 

 

31,442

 

 

Allowance for Credit Losses (2)

 

 

 

 

 

 

 

$

       251,273

 

 

$

      251,606

 

 

$

        247,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Restructured loans with an aggregate balance of $13,568, $38,023, and $22,421 at March 31, 2022, March 31, 2021 and December 31, 2021,

respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance

of $102 thousand at December 31, 2021 were 90 days past due, but not included in "EOP Non-Accrual Loans" above.

 

 

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

 

 

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

Source: United Bankshares, Inc.