United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2023

July 27, 2023

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2023 of $92.5 million, or $0.68 per diluted share, as compared to earnings of $98.3 million, or $0.73 per diluted share, for the first quarter of 2023. Earnings for the second quarter of 2022 were $95.6 million, or $0.71 per diluted share.

“UBSI’s performance remained strong in the second quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “Our profitability, asset quality, and balance sheet strength continue to allow us to take care of our customers, invest in our communities, and build new relationships across our footprint.”

Second quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.26%, 7.96 % and 13.47%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.35%, 8.72% and 14.97%, respectively, for the first quarter of 2023. Annualized returns on average assets, average equity and average tangible equity were 1.32%, 8.33% and 14.23%, respectively, for the second quarter of 2022.

During the second quarter of 2023, United sold mortgage servicing rights (“MSRs”) with an aggregate unpaid principal balance of approximately $2.0 billion at a gain of $8.1 million. Additionally, during the second quarter of 2023, United sold approximately $187.0 million of available for sale (“AFS”) investment securities at a loss of $7.2 million.

Second quarter of 2023 compared to the first quarter of 2023

Net interest income for the second quarter of 2023 decreased $6.9 million, or 3%, from the first quarter of 2023. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the second quarter of 2023 also decreased $6.9 million, or 3%, from the first quarter of 2023. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing partially offset by higher interest income on net loans and loans held for sale driven by rising market interest rates. The interest rate spread for the second quarter of 2023 decreased 24 basis points from the first quarter of 2023 to 2.69% due to a 47 basis point increase in the average cost of funds partially offset by a 23 basis point increase in the yield on earning assets. The yield on average interest-bearing deposits increased 54 basis points to 2.37% from the first quarter of 2023. The yield on average net loans and loans held for sale increased 23 basis points to 5.78% from the first quarter of 2023. The net interest margin of 3.51% for the second quarter of 2023 was a decrease of 12 basis points from the net interest margin of 3.63% for the first quarter of 2023.

The provision for credit losses was $11.4 million for the second quarter of 2023 as compared to $6.9 million for the first quarter of 2023. The provision for credit losses in the second quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2023 increased $2.4 million, or 7%, from the first quarter of 2023. The increase in noninterest income was primarily due to increases in mortgage loan servicing income of $7.6 million mainly driven by the gain on sale of MSRs and income from mortgage banking activities of $1.5 million driven by higher mortgage loan origination and sale volume and a higher margin on loans sold. These increases in noninterest income were partially offset by higher net losses on investment securities of $6.9 million mainly driven by the loss on sale of AFS investment securities.

Noninterest expense for the second quarter of 2023 decreased $2.1 million, or 2%, from the first quarter of 2023. The decrease in noninterest expense was primarily driven by a decrease in the expense for the reserve for unfunded loan commitments of $4.6 million partially offset by an increase in employee compensation of $3.1 million. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments at quarter end. The increase in employee compensation was primarily driven by higher employee incentives as well as higher employee commissions related to mortgage banking production.

For the second quarter of 2023, income tax expense was $23.5 million as compared to $24.4 million for the first quarter of 2023. The decrease of $996 thousand was due to lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 20.2% and 19.9% for the second quarter of 2023 and first quarter of 2023, respectively.

Second quarter of 2023 compared to the second quarter of 2022

Earnings for the second quarter of 2023 were $92.5 million, or $0.68 per diluted share, as compared to earnings of $95.6 million, or $0.71 per diluted share, for the second quarter of 2022.

Net interest income for the second quarter of 2023 increased $12.6 million, or 6%, from the second quarter of 2022. Tax-equivalent net interest income for the second quarter of 2023 also increased $12.6 million, or 6%, from the second quarter of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing, higher average balances and cost of long-term borrowings, lower income from Paycheck Protection Program (“PPP”) loan fees and lower acquired loan accretion. The yield on average earning assets increased 175 basis points from the second quarter of 2022 to 5.33%. Average earning assets for the second quarter of 2023 increased $494.6 million, or 2%, from the second quarter of 2022 due to a $1.7 billion increase in average net loans and loans held for sale partially offset by a $743.1 million decrease in average short-term investments and a $423.1 million decrease in average investment securities. The average cost of funds increased 233 basis points from the second quarter of 2022 to 2.64% primarily due to increases in the yield on average interest-bearing deposits of 212 basis points and in the yield on average long-term borrowings of 300 basis points. Average long-term borrowings increased $1.5 billion from the second quarter of 2022. Net PPP loan fee income decreased $3.5 million from the second quarter of 2022. Acquired loan accretion income was $3.1 million and $5.4 million for the second quarter of 2023 and 2022, respectively, a decrease of $2.3 million. The net interest margin of 3.51% for the second quarter of 2023 was an increase of 13 basis points from the net interest margin of 3.38% for the second quarter of 2022.

The provision for credit losses was $11.4 million for the second quarter of 2023 as compared to a net benefit of $1.8 million for the second quarter of 2022. The provision for credit losses in the second quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the second quarter of 2023 was $35.2 million, which was a decrease of $8.4 million, or 19%, from the second quarter of 2022. Net losses on investment securities were $7.3 million for the second quarter of 2023 as compared to net gains on investment securities of $1.2 million for the second quarter of 2022 mainly driven by the loss on sale of AFS investment securities in the second quarter of 2023. Additionally, income from mortgage banking activities decreased $4.5 million mainly due to lower origination and sale volume and income from bank owned life insurance ("BOLI”) decreased $2.1 million primarily due to higher amounts of death benefits recognized in the second quarter of 2022. This decrease in noninterest income was partially offset by an increase in mortgage loan servicing income of $7.5 million mainly driven by the gain on sale of MSRs.

Noninterest expense for the second quarter of 2023 was $135.3 million, a decrease of $5.9 million, or 4%, from the second quarter of 2022 primarily due to decreases of $7.9 million in the expense for the reserve for unfunded loan commitments and $4.1 million in employee compensation partially offset by increases of $3.2 million in other noninterest expense and $1.6 million in FDIC insurance expense. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production as well as lower employee incentives. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

Income tax expense of $23.5 million for the second quarter of 2023 was flat from the second quarter of 2022, decreasing $79 thousand, or less than 1%. The decrease was driven by lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 20.2% for the second quarter of 2023 and 19.8% for the second quarter of 2022.

First half of 2023 compared to the first half of 2022

Earnings for the first six months of 2023 were $190.8 million, or $1.41 per diluted share, as compared to earnings of $177.3 million, or $1.30 per diluted share, for the first six months of 2022.

Net interest income for the first six months of 2023 increased $55.4 million, or 14%, from the first six months of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the first six months of 2023 also increased $55.4 million, or 14%, from the first six months of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing and higher average balances and cost of long-term borrowings as well as lower income from PPP loan fees and acquired loan accretion. The yield on average earning assets increased 184 basis points from the first six months of 2022 to 5.21%. Average earning assets for the first six months of 2023 increased $311.0 million, or 1%, from the first six months of 2022 due to a $1.9 billion increase in average net loans and loans held for sale partially offset by a $1.4 billion decrease in average short-term investments and a $171.4 million decrease in average investment securities. The average cost of funds increased 212 basis points from the first six months of 2022 to 2.41% primarily due to increases in the yield on average interest-bearing deposits of 187 basis points and in the yield on average long-term borrowings of 298 basis points. Average long-term borrowings increased $1.5 billion from the first six months of 2022. Net PPP loan fee income decreased $7.3 million from the first six months of 2022. Acquired loan accretion income was $6.2 million and $9.5 million for the first six months of 2023 and 2022, respectively, a decrease of $3.3 million. The net interest margin of 3.57% for the first six months of 2023 was an increase of 39 basis points from the net interest margin of 3.18% for the first six months of 2022.

The provision for credit losses was $18.3 million for the first six months 2023 as compared to a net benefit of $5.2 million for the first six months of 2022.

Noninterest income for the first six months of 2023 was $67.9 million, which was a decrease of $21.7 million, or 24%, from the first six months of 2022. Income from mortgage banking activities decreased $17.4 million from the first six months of 2022 mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold. Additionally, net losses on investment securities were $7.7 million for the first six months of 2023 as compared to net gains on investment securities of $931 thousand for the first six months of 2022 mainly driven by the loss on sale of AFS investment securities in the second quarter of 2023. The decrease in noninterest income was partially offset by a $7.4 million increase in mortgage loans servicing income mainly driven by the gain on sale of MSRs in the second quarter of 2023.

Noninterest expense for the first six months of 2023 was $272.7 million, a decrease of $7.6 million, or 3%, from the first six months of 2022 driven by decreases in employee compensation of $11.3 million and the expense for reserve for unfunded loan commitments of $10.6 million partially offset by increases in other noninterest expense of $7.8 million and FDIC insurance expense of $3.5 million. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

For the first six months of 2023, income tax expense was $47.9 million as compared to $43.6 million for the first six months of 2022 primarily due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.1% for the first six months of 2023 and 19.8% for the first six months of 2022.

Credit Quality

United’s asset quality continues to be sound. At June 30, 2023, non-performing loans were $41.6 million, or 0.20% of loans & leases, net of unearned income. Total non-performing assets were $45.3 million, including other real estate owned (“OREO”) of $3.8 million, or 0.15% of total assets at June 30, 2023. At December 31, 2022, non-performing loans were $58.6 million, or 0.29% of loans & leases, net of unearned income. Total non-performing assets were $60.7 million, including OREO of $2.1 million, or 0.21% of total assets at December 31, 2022.

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

As of June 30, 2023, the allowance for loan & lease losses was $250.7 million, or 1.21% of loans & leases, net of unearned income, as compared to $234.7 million, or 1.14% of loans & leases, net of unearned income, at December 31, 2022. Net charge-offs were $1.2 million for the second quarter of 2023 compared to net recoveries of $941 thousand for the second quarter of 2022. Net charge-offs were $2.4 million for the first half of 2023 compared to net recoveries of $2.9 million for the first half of 2022. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.02% and (0.02)% for the second quarter of 2023 and 2022, respectively. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.02% and (0.03)% for the first half of 2023 and 2022, respectively. Net charge-offs were $1.1 million for the first quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.1% at June 30, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.8%, 12.8% and 11.0%, respectively. The June 30, 2023 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the second quarter of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 1.5 million shares of its common stock at an average price per share of $34.47. During the first half of 2022, United repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69. United did not repurchase any shares of its common stock during the first half of 2023.

About United Bankshares, Inc.

As of June 30, 2023, United had consolidated assets of approximately $29.7 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 June 30, 2023 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2023 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; 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, 2022, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

EARNINGS SUMMARY :

 

 

 

June

2023

 

June

2022

 

March

2023

 

June

2023

 

June

2022

Interest income

 

 

 

$

345,932

 

 

$

227,771

 

 

$

329,303

 

 

$

675,235

 

 

$

430,566

 

Interest expense

 

 

 

 

118,471

 

 

 

12,868

 

 

 

94,983

 

 

 

213,454

 

 

 

24,161

 

Net interest income

 

 

 

 

227,461

 

 

 

214,903

 

 

 

234,320

 

 

 

461,781

 

 

 

406,405

 

Provision for credit losses

 

 

 

 

11,440

 

 

 

(1,807

)

 

 

6,890

 

 

 

18,330

 

 

 

(5,217

)

Noninterest income

 

 

 

 

35,178

 

 

 

43,608

 

 

 

32,744

 

 

 

67,922

 

 

 

89,633

 

Noninterest expense

 

 

 

 

135,288

 

 

 

141,174

 

 

 

137,419

 

 

 

272,707

 

 

 

280,349

 

Income before income taxes

 

 

 

 

115,911

 

 

 

119,144

 

 

 

122,755

 

 

 

238,666

 

 

 

220,906

 

Income taxes

 

 

 

 

23,452

 

 

 

23,531

 

 

 

24,448

 

 

 

47,900

 

 

 

43,629

 

Net income

 

 

 

$

92,459

 

 

$

95,613

 

 

$

98,307

 

 

$

190,766

 

 

$

177,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE :

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.68

 

 

$

0.71

 

 

$

0.73

 

 

$

1.42

 

 

$

1.31

 

Diluted

 

 

 

 

0.68

 

 

 

0.71

 

 

 

0.73

 

 

 

1.41

 

 

 

1.30

 

Cash dividends

 

 

 

$

0.36

 

 

$

0.36

 

 

 

0.36

 

 

 

0.72

 

 

 

0.72

 

Book value

 

 

 

 

 

 

 

 

34.14

 

 

 

34.37

 

 

 

33.34

 

Closing market price

 

 

 

 

 

 

 

$

35.20

 

 

$

29.67

 

 

$

35.07

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

 

 

 

 

134,936,551

 

 

 

134,934,858

 

 

 

134,580,646

 

Weighted average-basic

 

 

 

 

134,683,010

 

 

 

134,623,061

 

 

 

134,411,166

 

 

 

134,472,074

 

 

 

135,336,729

 

Weighted average-diluted

 

 

 

 

134,849,818

 

 

 

134,863,650

 

 

 

134,840,328

 

 

 

134,748,868

 

 

 

135,634,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS :

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

 

1.26

%

 

 

1.32

%

 

 

1.35

%

 

 

1.31

%

 

 

1.23

%

Return on average shareholders’ equity

 

 

 

 

7.96

%

 

 

8.33

%

 

 

8.72

%

 

 

8.34

%

 

 

7.63

%

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

 

 

 

 

13.47

%

 

 

14.23

%

 

 

14.97

%

 

 

14.20

%

 

 

12.90

%

Average equity to average assets

 

 

 

 

15.83

%

 

 

15.88

%

 

 

15.49

%

 

 

15.66

%

 

 

16.05

%

Net interest margin

 

 

 

 

3.51

%

 

 

3.38

%

 

 

3.63

%

 

 

3.57

%

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES :

 

 

 

 

 

June 30

2023

 

December 31

2022

 

June 30

2022

 

March 31

2023

Assets

 

 

 

 

 

$

29,694,651

 

 

$

29,489,380

 

 

$

28,777,896

 

 

$

30,182,241

 

Earning assets

 

 

 

 

 

 

26,335,600

 

 

 

26,135,400

 

 

 

25,356,669

 

 

 

26,826,111

 

Loans & leases, net of unearned income

 

 

 

 

 

 

20,764,291

 

 

 

20,558,166

 

 

 

18,970,395

 

 

 

20,612,159

 

Loans held for sale

 

 

 

 

 

 

91,296

 

 

 

56,879

 

 

 

220,689

 

 

 

68,176

 

Investment securities

 

 

 

 

 

 

4,342,714

 

 

 

4,872,604

 

 

 

5,073,618

 

 

 

4,777,587

 

Total deposits

 

 

 

 

 

 

22,369,753

 

 

 

22,303,166

 

 

 

23,026,649

 

 

 

22,284,586

 

Shareholders’ equity

 

 

 

 

 

 

4,637,043

 

 

 

4,516,193

 

 

 

4,487,050

 

 

 

4,606,537

 

 

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

 

Six Months Ended

 

 

June

 

June

 

March

 

June

 

June

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

Interest & Loan Fees Income (GAAP)

$

345,932

 

 

$

227,771

 

 

$

329,303

 

 

$

675,235

 

 

$

430,566

 

 

Tax equivalent adjustment

 

1,144

 

 

 

1,104

 

 

 

1,135

 

 

 

2,279

 

 

 

2,213

 

 

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

 

347,076

 

 

 

228,875

 

 

 

330,438

 

 

 

677,514

 

 

 

432,779

 

 

Interest Expense

 

118,471

 

 

 

12,868

 

 

 

94,983

 

 

 

213,454

 

 

 

24,161

 

 

Net Interest Income (FTE) (non-GAAP)

 

228,605

 

 

 

216,007

 

 

 

235,455

 

 

 

464,060

 

 

 

408,618

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

11,440

 

 

 

(1,807

)

 

 

6,890

 

 

 

18,330

 

 

 

(5,217

)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

4,516

 

 

 

4,294

 

 

 

4,780

 

 

 

9,296

 

 

 

8,421

 

 

Fees from brokerage services

 

3,918

 

 

 

4,115

 

 

 

4,200

 

 

 

8,118

 

 

 

8,667

 

 

Fees from deposit services

 

9,325

 

 

 

10,830

 

 

 

9,362

 

 

 

18,687

 

 

 

20,978

 

 

Bankcard fees and merchant discounts

 

1,707

 

 

 

1,671

 

 

 

1,707

 

 

 

3,414

 

 

 

3,050

 

 

Other charges, commissions, and fees

 

949

 

 

 

785

 

 

 

1,138

 

 

 

2,087

 

 

 

1,544

 

 

Income from bank-owned life insurance

 

2,022

 

 

 

4,120

 

 

 

1,891

 

 

 

3,913

 

 

 

6,314

 

 

Income from mortgage banking activities

 

7,907

 

 

 

12,445

 

 

 

6,384

 

 

 

14,291

 

 

 

31,648

 

 

Mortgage loan servicing income

 

9,841

 

 

 

2,328

 

 

 

2,276

 

 

 

12,117

 

 

 

4,715

 

 

Net (losses) gains on investment securities

 

(7,336

)

 

 

1,182

 

 

 

(405

)

 

 

(7,741

)

 

 

931

 

 

Other noninterest income

 

2,329

 

 

 

1,838

 

 

 

1,411

 

 

 

3,740

 

 

 

3,365

 

 

Total Noninterest Income

 

35,178

 

 

 

43,608

 

 

 

32,744

 

 

 

67,922

 

 

 

89,633

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

58,502

 

 

 

62,632

 

 

 

55,414

 

 

 

113,916

 

 

 

125,253

 

 

Employee benefits

 

12,236

 

 

 

12,047

 

 

 

13,435

 

 

 

25,671

 

 

 

24,898

 

 

Net occupancy

 

11,409

 

 

 

11,206

 

 

 

11,833

 

 

 

23,242

 

 

 

22,393

 

 

Data processing

 

7,256

 

 

 

7,549

 

 

 

7,473

 

 

 

14,729

 

 

 

14,920

 

 

Amortization of intangibles

 

1,279

 

 

 

1,379

 

 

 

1,279

 

 

 

2,558

 

 

 

2,758

 

 

OREO expense

 

315

 

 

 

46

 

 

 

667

 

 

 

982

 

 

 

228

 

 

Net losses (gains) on the sale of OREO properties

 

16

 

 

 

(454

)

 

 

(43

)

 

 

(27

)

 

 

(487

)

 

Equipment expense

 

8,026

 

 

 

7,310

 

 

 

6,996

 

 

 

15,022

 

 

 

14,645

 

 

FDIC insurance expense

 

4,570

 

 

 

3,004

 

 

 

4,587

 

 

 

9,157

 

 

 

5,677

 

 

Mortgage loan servicing expense and impairment

 

1,699

 

 

 

1,783

 

 

 

1,884

 

 

 

3,583

 

 

 

3,426

 

 

Expense for the reserve for unfunded loan commitments

 

(2,021

)

 

 

5,899

 

 

 

2,600

 

 

 

579

 

 

 

11,136

 

 

Other noninterest expense

 

32,001

 

 

 

28,773

 

 

 

31,294

 

 

 

63,295

 

 

 

55,502

 

 

Total Noninterest Expense

 

135,288

 

 

 

141,174

 

 

 

137,419

 

 

 

272,707

 

 

 

280,349

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

117,055

 

 

 

120,248

 

 

 

123,890

 

 

 

240,945

 

 

 

223,119

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

1,144

 

 

 

1,104

 

 

 

1,135

 

 

 

2,279

 

 

 

2,213

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

115,911

 

 

 

119,144

 

 

 

122,755

 

 

 

238,666

 

 

 

220,906

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

23,452

 

 

 

23,531

 

 

 

24,448

 

 

 

47,900

 

 

 

43,629

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

92,459

 

 

$

95,613

 

 

$

98,307

 

 

$

190,766

 

 

$

177,277

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

20.23

%

 

 

19.75

%

 

 

19.92

%

 

 

20.07

%

 

 

19.75

%

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2023

 

June 2022

 

June 30

 

December 31

 

June 30

 

March 31

 

 

Q-T-D Average

Q-T-D Average

 

2023

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

1,282,923

 

 

$

2,105,669

 

 

$

1,692,357

 

 

$

1,176,652

 

 

$

1,658,486

 

 

$

1,918,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

4,320,055

 

 

 

4,824,655

 

 

 

4,005,324

 

 

 

4,541,925

 

 

 

4,812,704

 

 

 

4,419,413

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

4,320,055

 

 

 

4,824,655

 

 

 

4,005,324

 

 

 

4,541,925

 

 

 

4,812,704

 

 

 

4,419,413

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(19

)

 

 

(19

)

 

 

(19

)

 

 

(18

)

 

 

(18

)

 

 

(18

)

Net held to maturity securities

 

 

1,001

 

 

 

1,001

 

 

 

1,001

 

 

 

1,002

 

 

 

1,002

 

 

 

1,002

 

Equity Securities

 

 

8,081

 

 

 

13,204

 

 

 

8,443

 

 

 

7,629

 

 

 

13,513

 

 

 

7,792

 

Other Investment Securities

 

 

332,904

 

 

 

246,312

 

 

 

327,946

 

 

 

322,048

 

 

 

246,399

 

 

 

349,380

 

Total Securities

 

 

4,662,041

 

 

 

5,085,172

 

 

 

4,342,714

 

 

 

4,872,604

 

 

 

5,073,618

 

 

 

4,777,587

 

Total Cash and Securities

 

 

5,944,964

 

 

 

7,190,841

 

 

 

6,035,071

 

 

 

6,049,256

 

 

 

6,732,104

 

 

 

6,696,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

72,966

 

 

 

263,039

 

 

 

91,296

 

 

 

56,879

 

 

 

220,689

 

 

 

68,176

 

Commercial Loans & Leases

 

 

14,980,069

 

 

 

14,210,173

 

 

 

15,083,157

 

 

 

14,986,117

 

 

 

14,136,614

 

 

 

14,998,881

 

Mortgage Loans

 

 

4,347,941

 

 

 

3,227,395

 

 

 

4,437,158

 

 

 

4,158,226

 

 

 

3,481,064

 

 

 

4,283,339

 

Consumer Loans

 

 

1,322,889

 

 

 

1,344,390

 

 

 

1,261,611

 

 

 

1,435,820

 

 

 

1,376,447

 

 

 

1,348,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

20,650,899

 

 

 

18,781,958

 

 

 

20,781,926

 

 

 

20,580,163

 

 

 

18,994,125

 

 

 

20,630,898

 

Unearned income

 

 

(18,356

)

 

 

(26,280

)

 

 

(17,635

)

 

 

(21,997

)

 

 

(23,730

)

 

 

(18,739

)

Loans & Leases, net of unearned income

 

 

20,632,543

 

 

 

18,755,678

 

 

 

20,764,291

 

 

 

20,558,166

 

 

 

18,970,395

 

 

 

20,612,159

 

Allowance for Loan & Lease Losses

 

 

(240,611

)

 

 

(214,624

)

 

 

(250,721

)

 

 

(234,746

)

 

 

(213,729

)

 

 

(240,491

)

Net Loans

 

 

20,391,932

 

 

 

18,541,054

 

 

 

20,513,570

 

 

 

20,323,420

 

 

 

18,756,666

 

 

 

20,371,668

 

Mortgage Servicing Rights

 

 

14,662

 

 

 

22,644

 

 

 

4,627

 

 

 

21,022

 

 

 

22,593

 

 

 

19,987

 

Goodwill

 

 

1,888,889

 

 

 

1,889,186

 

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

Other Intangibles

 

 

17,164

 

 

 

22,519

 

 

 

16,339

 

 

 

18,897

 

 

 

21,655

 

 

 

17,618

 

Operating Lease Right-of-Use Asset

 

 

78,872

 

 

 

76,821

 

 

 

80,641

 

 

 

71,144

 

 

 

75,143

 

 

 

76,884

 

Other Real Estate Owned

 

 

4,070

 

 

 

13,943

 

 

 

3,756

 

 

 

2,052

 

 

 

13,847

 

 

 

4,086

 

Bank Owned Life Insurance

 

 

482,791

 

 

 

478,163

 

 

 

483,906

 

 

 

480,184

 

 

 

473,470

 

 

 

482,098

 

Other Assets

 

 

542,502

 

 

 

511,238

 

 

 

576,556

 

 

 

577,637

 

 

 

572,840

 

 

 

556,555

 

Total Assets

 

$

29,438,812

 

 

$

29,009,448

 

 

$

29,694,651

 

 

$

29,489,380

 

 

$

28,777,896

 

 

$

30,182,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

26,121,011

 

 

$

25,626,411

 

 

$

26,335,600

 

 

$

26,135,400

 

 

$

25,356,669

 

 

$

26,826,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

15,520,461

 

 

$

15,588,089

 

 

$

15,918,927

 

 

$

15,103,488

 

 

$

15,425,240

 

 

$

15,576,926

 

Noninterest-bearing Deposits

 

 

6,500,259

 

 

 

7,587,565

 

 

 

6,450,826

 

 

 

7,199,678

 

 

 

7,601,409

 

 

 

6,707,660

 

Total Deposits

 

 

22,020,720

 

 

 

23,175,654

 

 

 

22,369,753

 

 

 

22,303,166

 

 

 

23,026,649

 

 

 

22,284,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

177,315

 

 

 

136,025

 

 

 

176,739

 

 

 

160,698

 

 

 

128,242

 

 

 

170,094

 

Long-term Borrowings

 

 

2,307,485

 

 

 

811,924

 

 

 

2,188,438

 

 

 

2,197,656

 

 

 

796,961

 

 

 

2,788,103

 

Total Borrowings

 

 

2,484,800

 

 

 

947,949

 

 

 

2,365,177

 

 

 

2,358,354

 

 

 

925,203

 

 

 

2,958,197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

83,335

 

 

 

81,450

 

 

 

85,038

 

 

 

75,749

 

 

 

79,787

 

 

 

81,394

 

Other Liabilities

 

 

190,863

 

 

 

198,209

 

 

 

237,640

 

 

 

235,918

 

 

 

259,207

 

 

 

251,527

 

Total Liabilities

 

 

24,779,718

 

 

 

24,403,262

 

 

 

25,057,608

 

 

 

24,973,187

 

 

 

24,290,846

 

 

 

25,575,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,659,094

 

 

 

4,606,186

 

 

 

4,637,043

 

 

 

4,516,193

 

 

 

4,487,050

 

 

 

4,606,537

 

Total Shareholders' Equity

 

 

4,659,094

 

 

 

4,606,186

 

 

 

4,637,043

 

 

 

4,516,193

 

 

 

4,487,050

 

 

 

4,606,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

29,438,812

 

 

$

29,009,448

 

 

$

29,694,651

 

 

$

29,489,380

 

 

$

28,777,896

 

 

$

30,182,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

18,005,261

 

 

$

16,536,038

 

 

$

18,284,104

 

 

$

17,461,842

 

 

$

16,350,443

 

 

$

18,535,123

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June

 

June

 

March

 

June

 

June

Quarterly/Year-to-Date Share Data :

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

$

0.68

 

 

$

0.71

 

 

$

0.73

 

 

$

1.42

 

 

$

1.31

 

Diluted

 

 

$

0.68

 

 

$

0.71

 

 

$

0.73

 

 

$

1.41

 

 

$

1.30

 

Common Dividend Declared Per Share

 

 

$

0.36

 

 

$

0.36

 

 

$

0.36

 

 

$

0.72

 

 

$

0.72

 

High Common Stock Price

 

 

$

35.61

 

 

$

37.81

 

 

$

42.45

 

 

$

42.45

 

 

$

39.80

 

Low Common Stock Price

 

 

$

27.68

 

 

$

33.11

 

 

$

33.35

 

 

$

27.68

 

 

$

33.11

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

134,683,010

 

 

 

134,623,061

 

 

 

134,411,166

 

 

 

134,472,074

 

 

 

135,336,729

 

Diluted

 

 

 

134,849,818

 

 

 

134,863,650

 

 

 

134,840,328

 

 

 

134,748,868

 

 

 

135,634,398

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

 

 

$

48,628

 

 

$

48,544

 

 

$

48,720

 

 

$

97,348

 

 

$

97,810

 

Dividend Payout Ratio

 

 

 

52.59

%

 

 

50.77

%

 

 

49.56

%

 

 

51.03

%

 

 

55.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

June 30

 

March 31

EOP Share Data:

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

Book Value Per Share

 

 

 

 

$

34.37

 

 

$

33.52

 

 

$

33.34

 

 

$

34.14

 

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

 

 

 

 

$

20.25

 

 

$

19.36

 

 

$

19.14

 

 

$

20.01

 

52-week High Common Stock Price

 

 

 

 

$

44.15

 

 

$

44.15

 

 

$

39.80

 

 

$

44.15

 

Date

 

 

 

 

11/11/22

 

11/11/22

 

01/13/22

 

11/11/22

52-week Low Common Stock Price

 

 

 

 

$

27.68

 

 

$

33.11

 

 

$

31.74

 

 

$

33.11

 

Date

 

 

 

 

5/12/23

 

5/2/22

 

09/20/21

 

5/2/22

 

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

134,934,858

 

 

 

134,745,122

 

 

 

134,580,646

 

 

 

134,936,551

 

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

2,799

 

 

 

2,856

 

 

 

2,988

 

 

 

2,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

$

4,637,043

 

 

$

4,516,193

 

 

$

4,487,050

 

 

$

4,606,537

 

Less: Total Intangibles

 

 

 

 

 

(1,905,228

)

 

 

(1,907,786

)

 

 

(1,910,544

)

 

 

(1,906,507

)

Tangible Equity (non-GAAP)

 

 

 

 

$

2,731,815

 

 

$

2,608,407

 

 

$

2,576,506

 

 

$

2,700,030

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

134,934,858

 

 

 

134,745,122

 

 

 

134,580,646

 

 

 

134,936,551

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

$

20.25

 

 

$

19.36

 

 

$

19.14

 

 

$

20.01

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

June 2023

 

Three Months Ended

June 2022

 

Three Months Ended

March 2023

 

Selected Average Balances and Yields:

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

ASSETS:

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under

agreements to resell and other short-term investments

 

$

994,072

 

 

$

12,706

 

5.13

%

 

$

1,737,146

 

 

$

4,841

 

1.12

%

 

$

936,394

 

 

$

10,983

 

4.76

%

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,274,123

 

 

 

36,721

 

3.44

%

 

 

4,665,307

 

 

 

24,558

 

2.11

%

 

 

4,404,864

 

 

 

36,259

 

3.29

%

 

Tax-exempt

 

 

387,918

 

 

 

2,718

 

2.80

%

 

 

419,865

 

 

 

2,794

 

2.66

%

 

 

387,671

 

 

 

2,740

 

2.83

%

 

Total securities

 

 

4,662,041

 

 

 

39,439

 

3.38

%

 

 

5,085,172

 

 

 

27,352

 

2.15

%

 

 

4,792,535

 

 

 

38,999

 

3.26

%

 

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

 

 

20,705,509

 

 

 

294,931

 

5.71

%

 

 

19,018,717

 

 

 

196,682

 

4.15

%

 

 

20,683,610

 

 

 

280,456

 

5.49

%

 

Allowance for loan losses

 

 

(240,611

)

 

 

 

 

 

 

(214,624

)

 

 

 

 

 

 

(234,809

)

 

 

 

 

 

Net loans and loans held for sale

 

 

20,464,898

 

 

 

 

5.78

%

 

 

18,804,093

 

 

 

 

4.19

%

 

 

20,448,801

 

 

 

 

5.55

%

 

Total earning assets

 

 

26,121,011

 

 

$

347,076

 

5.33

%

 

 

25,626,411

 

 

$

228,875

 

3.58

%

 

 

26,177,730

 

 

$

330,438

 

5.10

%

 

Other assets

 

 

3,317,801

 

 

 

 

 

 

 

3,383,037

 

 

 

 

 

 

 

3,334,559

 

 

 

 

 

 

TOTAL ASSETS

 

$

29,438,812

 

 

 

 

 

 

$

29,009,448

 

 

 

 

 

 

$

29,512,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

15,520,461

 

 

$

91,577

 

2.37

%

 

$

15,588,089

 

 

$

9,751

 

0.25

%

 

$

15,186,632

 

 

$

68,592

 

1.83

%

 

Short-term borrowings

 

 

177,315

 

 

 

1,489

 

3.37

%

 

 

136,025

 

 

 

237

 

0.70

%

 

 

166,614

 

 

 

1,157

 

2.82

%

 

Long-term borrowings

 

 

2,307,485

 

 

 

25,405

 

4.42

%

 

 

811,924

 

 

 

2,880

 

1.42

%

 

 

2,417,999

 

 

 

25,234

 

4.23

%

 

Total interest-bearing liabilities

 

 

18,005,261

 

 

 

118,471

 

2.64

%

 

 

16,536,038

 

 

 

12,868

 

0.31

%

 

 

17,771,245

 

 

 

94,983

 

2.17

%

 

Noninterest-bearing deposits

 

 

6,500,259

 

 

 

 

 

 

 

7,587,565

 

 

 

 

 

 

 

6,897,030

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

274,198

 

 

 

 

 

 

 

279,659

 

 

 

 

 

 

 

273,726

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,779,718

 

 

 

 

 

 

 

24,403,262

 

 

 

 

 

 

 

24,942,001

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,659,094

 

 

 

 

 

 

 

4,606,186

 

 

 

 

 

 

 

4,570,288

 

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,438,812

 

 

 

 

 

 

$

29,009,448

 

 

 

 

 

 

$

29,512,289

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

228,605

 

 

 

 

 

$

216,007

 

 

 

 

 

$

235,455

 

 

 

INTEREST RATE SPREAD

 

 

 

 

 

2.69

%

 

 

 

 

 

3.27

%

 

 

 

 

 

2.93

%

 

NET INTEREST MARGIN

 

 

 

 

 

3.51

%

 

 

 

 

 

3.38

%

 

 

 

 

 

3.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

June 2023

 

Six Months Ended

June 2022

 

Selected Average Balances and Yields:

 

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

ASSETS:

 

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under

agreements to resell and other short-term investments

 

 

$

965,393

 

 

$

23,689

 

4.95

%

 

$

2,379,418

 

 

$

7,170

 

0.61

%

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

 

4,339,132

 

 

 

72,980

 

3.36

%

 

 

4,466,170

 

 

 

42,063

 

1.88

%

 

Tax-exempt

 

 

 

387,795

 

 

 

5,458

 

2.81

%

 

 

432,135

 

 

 

5,483

 

2.54

%

 

Total securities

 

 

 

4,726,927

 

 

 

78,438

 

3.32

%

 

 

4,898,305

 

 

 

47,546

 

1.94

%

 

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

 

 

 

20,694,619

 

 

 

575,387

 

5.60

%

 

 

18,775,823

 

 

 

378,063

 

4.06

%

 

Allowance for loan losses

 

 

 

(237,726

)

 

 

 

 

 

 

(215,316

)

 

 

 

 

 

Net loans and loans held for sale

 

 

 

20,456,893

 

 

 

 

5.67

%

 

 

18,560,507

 

 

 

 

4.10

%

 

Total earning assets

 

 

 

26,149,213

 

 

$

677,514

 

5.21

%

 

 

25,838,230

 

 

$

432,779

 

3.37

%

 

Other assets

 

 

 

3,324,719

 

 

 

 

 

 

 

3,338,261

 

 

 

 

 

 

TOTAL ASSETS

 

 

$

29,473,932

 

 

 

 

 

 

$

29,176,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

$

15,354,468

 

 

$

160,169

 

2.10

%

 

$

15,747,191

 

 

$

18,312

 

0.23

%

 

Short-term borrowings

 

 

 

171,994

 

 

 

2,646

 

3.10

%

 

 

135,012

 

 

 

418

 

0.62

%

 

Long-term borrowings

 

 

 

2,362,437

 

 

 

50,639

 

4.32

%

 

 

814,628

 

 

 

5,431

 

1.34

%

 

Total interest-bearing liabilities

 

 

 

17,888,899

 

 

 

213,454

 

2.41

%

 

 

16,696,831

 

 

 

24,161

 

0.29

%

 

Noninterest-bearing deposits

 

 

 

6,697,549

 

 

 

 

 

 

 

7,527,570

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

 

272,575

 

 

 

 

 

 

 

269,099

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

24,859,023

 

 

 

 

 

 

 

24,493,500

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

4,614,909

 

 

 

 

 

 

 

4,682,991

 

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

 

$

29,473,932

 

 

 

 

 

 

$

29,176,491

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

$

464,060

 

 

 

 

 

$

408,618

 

 

 

INTEREST RATE SPREAD

 

 

 

 

 

 

2.80

%

 

 

 

 

 

3.08

%

 

NET INTEREST MARGIN

 

 

 

 

 

 

3.57

%

 

 

 

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June

 

June

 

March

 

June

 

June

 

 

Selected Financial Ratios :

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

Return on Average Assets

 

 

1.26

%

 

 

1.32

%

 

 

1.35

%

 

 

1.31

%

 

 

1.23

%

 

 

Return on Average Shareholders’ Equity

 

 

7.96

%

 

 

8.33

%

 

 

8.72

%

 

 

8.34

%

 

 

7.63

%

 

 

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

 

 

13.47

%

 

 

14.23

%

 

 

14.97

%

 

 

14.20

%

 

 

12.90

%

 

 

Efficiency Ratio

 

 

51.51

%

 

 

54.61

%

 

 

51.46

%

 

 

51.48

%

 

 

56.52

%

 

 

Price / Earnings Ratio

 

 

10.84

 

x

 

12.37

 

x

 

12.10

 

x

 

10.50

 

x

 

13.45

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

92,459

 

 

$

95,613

 

 

$

98,307

 

 

$

190,766

 

 

$

177,277

 

 

 

(b) Number of Days

 

 

91

 

 

 

91

 

 

 

90

 

 

 

181

 

 

 

181

 

 

 

Average Total Shareholders' Equity (GAAP)

 

$

4,659,094

 

 

$

4,606,186

 

 

$

4,570,288

 

 

$

4,614,909

 

 

$

4,682,991

 

 

 

Less: Average Total Intangibles

 

 

(1,906,053

)

 

 

(1,911,705

)

 

 

(1,907,331

)

 

 

(1,906,689

)

 

 

(1,911,416

)

 

 

(c) Average Tangible Equity (non-GAAP)

 

$

2,753,041

 

 

$

2,694,481

 

 

$

2,662,957

 

 

$

2,708,220

 

 

$

2,771,575

 

 

 

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

 

 

13.47

%

 

 

14.23

%

 

 

14.97

%

 

 

14.20

%

 

 

12.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios :

 

 

 

June 30

2023

 

December 31

2022

 

June 30

2022

 

March 31

2023

 

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

92.82

%

 

 

92.18

%

 

 

82.38

%

 

 

92.50

%

 

 

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

 

 

 

 

1.21

%

 

 

1.14

%

 

 

1.13

%

 

 

1.17

%

 

 

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

 

 

 

 

1.43

%

 

 

1.37

%

 

 

1.35

%

 

 

1.40

%

 

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

0.13

%

 

 

0.12

%

 

 

0.15

%

 

 

0.14

%

 

 

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

 

 

 

 

0.07

%

 

 

0.08

%

 

 

0.09

%

 

 

0.06

%

 

 

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

 

 

 

 

0.20

%

 

 

0.29

%

 

 

0.37

%

 

 

0.21

%

 

 

Non-performing Assets/ Total Assets

 

 

 

 

0.15

%

 

 

0.21

%

 

 

0.29

%

 

 

0.15

%

 

 

Primary Capital Ratio

 

 

 

 

16.45

%

 

 

16.11

%

 

 

16.34

%

 

 

16.07

%

 

 

Shareholders' Equity Ratio

 

 

 

 

15.62

%

 

 

15.31

%

 

 

15.59

%

 

 

15.26

%

 

 

Price / Book Ratio

 

 

 

 

0.86

 

x

 

1.21

 

x

 

1.05

 

x

 

1.03

 

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

 

Six Months Ended

 

 

 

 

June

 

June

 

March

 

June

 

June

 

Mortgage Banking Segment Data:

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

Applications

 

 

$

588,734

 

 

$

1,159,102

 

 

$

505,840

 

 

$

1,094,574

 

 

$

2,855,606

 

 

Loans originated

 

 

 

416,255

 

 

 

955,152

 

 

 

312,077

 

 

 

728,332

 

 

 

1,961,516

 

 

Loans sold

 

 

$

399,632

 

 

$

1,072,623

 

 

$

301,476

 

 

$

701,108

 

 

$

2,242,748

 

 

Purchase money % of loans closed

 

 

 

94

%

 

 

86

%

 

 

92

%

 

 

93

%

 

 

79

%

 

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

 

 

 

2.27

%

 

 

2.40

%

 

 

2.17

%

 

 

2.23

%

 

 

2.59

%

 

Net interest income

 

 

$

2,155

 

 

$

2,870

 

 

$

2,122

 

 

$

4,277

 

 

$

5,187

 

 

Other income

 

 

 

19,946

 

 

 

21,468

 

 

 

10,861

 

 

 

30,807

 

 

 

44,865

 

 

Other expense

 

 

 

15,706

 

 

 

25,776

 

 

 

15,085

 

 

 

30,791

 

 

 

51,224

 

 

Income taxes

 

 

 

1,270

 

 

 

(285

)

 

 

(424

)

 

 

846

 

 

 

(228

)

 

Net income (loss)

 

 

$

5,125

 

 

$

(1,153

)

 

$

(1,678

)

 

$

3,447

 

 

$

(944

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

June 30

 

March 31

 

Period End Mortgage Banking Segment Data :

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

Locked pipeline

 

 

 

 

$

93,417

 

 

$

68,654

 

 

$

206,246

 

 

$

92,639

 

 

Balance of loans serviced

 

 

 

 

$

1,242,441

 

 

$

3,381,485

 

 

$

3,534,607

 

 

$

3,280,741

 

 

Number of loans serviced

 

 

 

 

 

12,843

 

 

 

23,510

 

 

 

24,226

 

 

 

22,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

December 31

 

June 30

 

March 31

 

Asset Quality Data:

 

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2023

 

 

EOP Non-Accrual Loans

 

 

 

 

 

$

26,545

 

 

$

23,685

 

 

$

28,386

 

 

$

29,296

 

 

EOP 90-Day Past Due Loans

 

 

 

 

 

 

15,007

 

 

 

15,565

 

 

 

16,443

 

 

 

13,105

 

 

EOP Restructured Loans (1)

 

 

 

 

 

 

n/a

 

 

 

19,388

 

 

 

25,504

 

 

 

n/a

 

 

Total EOP Non-performing Loans

 

 

 

 

 

$

41,552

 

 

$

58,638

 

 

$

70,333

 

 

$

42,401

 

 

EOP Other Real Estate Owned

 

 

 

 

 

 

3,756

 

 

 

2,052

 

 

 

13,847

 

 

 

4,086

 

 

Total EOP Non-performing Assets

 

 

 

 

 

$

45,308

 

 

$

60,690

 

 

$

84,180

 

 

$

46,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

June 30

 

June 30

 

March 31

 

June 30

 

June 30

 

Allowance for Loan & Lease Losses:

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

Beginning Balance

 

 

 

$

240,491

 

 

$

214,594

 

 

$

234,746

 

 

$

234,746

 

 

$

216,016

 

 

Gross Charge-offs

 

 

 

 

(2,274

)

 

 

(2,119

)

 

 

(2,936

)

 

 

(5,210

)

 

 

(3,595

)

 

Recoveries

 

 

 

 

1,065

 

 

 

3,060

 

 

 

1,791

 

 

 

2,856

 

 

 

6,516

 

 

Net (Charge-offs) Recoveries

 

 

 

 

(1,209

)

 

 

941

 

 

 

(1,145

)

 

 

(2,354

)

 

 

2,921

 

 

Provision for Loan & Lease Losses

 

 

 

 

11,439

 

 

 

(1,806

)