United Bankshares, Inc. Announces Earnings for the Fourth Quarter and Year of 2023

January 26, 2024

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter of 2023 of $79.4 million, or $0.59 per diluted share. Fourth quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.08%, 6.70% and 11.27%, respectively. Earnings for the year of 2023 were $366.3 million, or $2.71 per diluted share, and returns on average assets, average equity and average tangible equity were 1.25%, 7.87% and 13.33%, respectively, for the year of 2023.

The fourth quarter of 2023 included approximately $12.0 million of noninterest expense for the Federal Deposit Insurance Corporation’s (“FDIC”) special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund.

“We closed the year with another excellent quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We saw loan growth, deposit growth, margin expansion, and strong asset quality metrics and capital levels. I’m proud of what we accomplished in the quarter and for the full year of 2023.”

Earnings for the third quarter of 2023 were $96.2 million, or $0.71 per diluted share, and annualized returns on average assets, average equity and average tangible equity for the third quarter of 2023 were 1.31%, 8.14% and 13.71%, respectively. Earnings for the fourth quarter of 2022 were $99.8 million, or $0.74 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.36%, 8.80% and 15.28%, respectively, for the fourth quarter of 2022. Earnings for the year of 2022 were $379.6 million, or $2.80 per diluted share, and returns on average assets, average equity and average tangible equity were 1.31%, 8.25% and 14.11%, respectively, for the year of 2022.

Fourth quarter of 2023 compared to the third quarter of 2023

Net interest income for the fourth quarter of 2023 increased $1.2 million, or 1%, from the third 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 fourth quarter of 2023 also increased $1.2 million, or 1%, from the third quarter of 2023. The increase in net interest income and tax-equivalent net interest income was primarily due to organic loan growth and a higher yield on net loans and loans held for sale partially offset by higher interest expense driven by the impact of deposit rate repricing. Average net loans and loans held for sale increased $313.9 million, or 6% on an annualized basis, from the third quarter of 2023. The yield on average net loans and loans held for sale increased 15 basis points to 6.07% for the fourth quarter of 2023. The yield on average interest-bearing deposits increased 25 basis points to 2.95% for the fourth quarter of 2023. The net interest margin of 3.55% for the fourth quarter of 2023 was an increase of 1 basis point from the net interest margin of 3.54% for the third quarter of 2023.

The provision for credit losses was $6.9 million for the fourth quarter of 2023 as compared to $5.9 million for the third quarter of 2023. The higher amount of provision expense for the fourth quarter of 2023 as compared to the third quarter of 2023 was mainly due to the impact of reasonable and supportable forecasts of future macroeconomic conditions and loan growth.

Noninterest income for the fourth quarter of 2023 was flat from the third quarter of 2023, increasing $14 thousand, or less than 1%. Other noninterest income increased $3.1 million to $5.2 million for the fourth quarter of 2023 driven by a $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative. Mostly offsetting the increase in other noninterest income was a $2.8 million decrease in income from mortgage banking activities primarily due to a lower quarter-end valuation of our mortgage derivatives and a lower margin on loans sold.

Noninterest expense for the fourth quarter of 2023 increased $17.1 million, or 13%, from the third quarter of 2023. The increase in noninterest expense was primarily due to the $12.0 million FDIC special assessment and increases of $5.4 million in other noninterest expense and $3.9 million in the expense for the reserve for unfunded loan commitments. These increases in noninterest expense were partially offset by decreases of $3.2 million in employee benefits and $1.2 million in employee compensation. The increase in other noninterest expense was driven by an increase of $2.4 million of tax credit investment amortization, an increase of $1.9 million of expense related to community development lending programs and $1.3 million related to trade name intangible impairments. The decrease in employee benefits was primarily due to lower postretirement benefit costs, lower health insurance costs and lower Federal Insurance Contributions Act (“FICA”) costs. The decrease in employee compensation was primarily due to lower headcount.

Income tax expense was $24.8 million for both the fourth and third quarters of 2023. United’s effective tax rate was 23.8% and 20.5% for the fourth quarter of 2023 and third quarter of 2023, respectively. The higher effective tax rate was primarily driven by the impact of provision to return adjustments in the fourth quarter of 2023.

Fourth quarter of 2023 compared to the fourth quarter of 2022

Earnings for the fourth quarter of 2023 were $79.4 million, or $0.59 per diluted share, as compared to earnings of $99.8 million, or $0.74 per diluted share, for the fourth quarter of 2022.

Net interest income for the fourth quarter of 2023 decreased $19.7 million, or 8%, from the fourth quarter of 2022. Tax-equivalent net interest income for the fourth quarter of 2023 decreased $20.0 million, or 8%, from the fourth quarter of 2022. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing partially offset by the impact of rising market interest rates on earning assets and organic loan growth. The average cost of funds increased 170 basis points from the fourth quarter of 2022 to 3.07% driven by an increase in the yield on average interest-bearing deposits of 179 basis points. The yield on average earning assets increased 91 basis points from the fourth quarter of 2022 to 5.68% driven by increases in the yield on average net loans and loans held for sale of 89 basis points and in the yield on average investment securities of 64 basis points. Average net loans and loans held for sale increased $903.6 million, or 4%, from the fourth quarter of 2022. The net interest margin of 3.55% for the fourth quarter of 2023 was a decrease of 32 basis points from the net interest margin of 3.87% for the fourth quarter of 2022.

The provision for credit losses was $6.9 million for the fourth quarter of 2023 as compared to $16.4 million for the fourth quarter of 2022.

Noninterest income for the fourth quarter of 2023 was $33.7 million, an increase of $2.8 million, or 9%, from the fourth quarter of 2022 driven by an increase of $2.7 million in other noninterest income and smaller increases in most other categories of noninterest income. The increase in other noninterest income was primarily due to the $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative during the fourth quarter of 2023. This increase in noninterest income was partially offset by a $1.4 million decrease in mortgage loan servicing income due to lower mortgage servicing rights (“MSRs”) balances after the sale of MSRs during the second quarter of 2023.

Noninterest expense for the fourth quarter of 2023 was $152.3 million, an increase of $14.7 million, or 11% from the fourth quarter of 2022 primarily due to increases of $13.4 million in FDIC insurance expense and $8.6 million in other noninterest expense partially offset by a decrease of $5.6 million in the expense for the reserve for unfunded loan commitments. The increase in FDIC insurance expense was due to the $12.0 million special assessment recognized in the fourth quarter of 2023 and a higher overall assessment rate for the fourth quarter of 2023. Other noninterest expense for the fourth quarter of 2022 was reduced by a $3.9 million partial recovery of a prior period litigation accrual. The remainder of the increase in other noninterest expense was driven by an increase of $2.2 million of tax credit amortization, $1.3 million related to trade name intangible impairments and an increase of $1.0 million of expense related to community development lending programs. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments.

For the fourth quarter of 2023, income tax expense was $24.8 million as compared to $26.6 million for the fourth quarter of 2022. The decrease of $1.8 million was due to lower earnings partially offset by a higher effective tax rate. United’s effective tax rate was 23.8% and 21.1% for the fourth quarter of 2023 and fourth quarter of 2022, respectively. The higher effective tax rate for the fourth quarter of 2023 was primarily driven by the impact of provision to return adjustments.

Year of 2023 compared to the Year of 2022

Earnings for the year of 2023 were $366.3 million, or $2.71 per diluted share, as compared to earnings of $379.6 million, or $2.80 per diluted share, for the year of 2022.

Net interest income for the year of 2023 increased $23.5 million, or 3%, from the year 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 year of 2023 increased $23.0 million, or 3%, from the year 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, lower income from Paycheck Protection Program (“PPP”) loan fees and lower acquired loan accretion income. The yield on average earning assets increased 150 basis points from the year of 2022 to 5.41% driven by increases in the yield on average net loans and loans held for sale of 131 basis points and in the yield on average investments securities of 110 basis points. Average earning assets for the year of 2023 increased $271.0 million, or 1%, from the year of 2022 due to a $1.5 billion increase in average net loans and loans held for sale partially offset by a $697.0 million decrease in average short-term investments and a $522.5 million decrease in average investment securities. The average cost of funds increased 205 basis points from the year of 2022 to 2.69% driven by an increase in the yield on average interest-bearing deposits of 196 basis points. Net PPP loan fee income decreased $9.2 million from the year of 2022. Acquired loan accretion income was $11.5 million and $18.3 million for the years of 2023 and 2022, respectively, a decrease of $6.8 million. The net interest margin of 3.56% for the year of 2023 was an increase of 6 basis points from the net interest margin of 3.50% for the year of 2022.

The provision for credit losses was $31.2 million for the year of 2023 as compared to $18.8 million for the year of 2022. The higher amount of provision expense for the year of 2023 as compared to the year of 2022 was mainly due to the impact of qualitative adjustments, reasonable and supportable forecasts of future macroeconomic conditions and loan growth.

Noninterest income for the year of 2023 was $135.3 million, which was a decrease of $18.0 million, or 12%, from the year of 2022. Income from mortgage banking activities decreased $16.1 million from the year of 2022 mainly due to lower mortgage loan origination and sale volume and a lower margin on loans sold. Additionally, net losses on investment securities were $7.6 million for the year of 2023 as compared to net gains on investment securities of $776 thousand for the year of 2022 mainly driven by a $7.2 million loss on the sale of available for sale (“AFS”) investment securities in the second quarter of 2023. The decrease in noninterest income was partially offset by a $4.5 million increase in mortgage loan servicing income mainly driven by an $8.1 million gain on sale of MSRs in the second quarter of 2023 partially offset by lower MSR balances after the sale. Other noninterest income increased $3.7 million to $11.1 million for the year of 2023 driven by the aforementioned $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative.

Noninterest expense for the year of 2023 was $560.2 million, an increase of $5.1 million, or 1%, from the year of 2022 driven by increases of $18.4 million in FDIC insurance expense and $14.5 million in other noninterest expense partially offset by decreases of $16.2 million in the expense for the reserve for unfunded loan commitments and $11.6 million in employee compensation. The increase in FDIC insurance expense was due to the $12.0 million special assessment recognized in the fourth quarter of 2023 and a higher overall assessment rate for 2023. The increase in other noninterest expense was driven by an increase of $2.6 million of expense related to community development lending programs, an increase of $1.7 million of tax credit investment amortization, $1.3 million related to trade name intangible impairments and by higher amounts of certain general operating expenses. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production.

For the year of 2023, income tax expense was $97.5 million as compared to $96.2 million for the year of 2022 primarily due to a higher effective tax rate partially offset by lower earnings. United’s effective tax rate was 21.0% and 20.2% for the years of 2023 and 2022, respectively.

Credit Quality

United’s asset quality continues to be sound. At December 31, 2023, non-performing loans were $45.5 million, or 0.21% of loans & leases, net of unearned income. Total non-performing assets were $48.1 million, including OREO of $2.6 million, or 0.16% of total assets at December 31, 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 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 December 31, 2023, the allowance for loan & lease losses was $259.2 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 $2.5 million for the fourth quarter of 2023 compared to $1.2 million for the fourth quarter of 2022. Net charge-offs were $6.7 million for the year of 2023 compared to $101 thousand for the year of 2022. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.05% and 0.02% for the fourth quarter of 2023 and 2022, respectively. Net charge-offs as a percentage of average loans & leases, net of unearned income were 0.03% and zero for the year of 2023 and 2022, respectively. Net charge-offs were $1.8 million for the third quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.4% at December 31, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.1%, 13.1% and 11.4%, respectively. The December 31, 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 year of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 2.3 million shares of its common stock at an average price per share of $34.69. United did not repurchase any shares of its common stock during 2023.

About United Bankshares, Inc.

As of December 31, 2023, United had consolidated assets of approximately $29.9 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 December 31, 2023 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2023 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; changes in legislation or regulatory requirements; and the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

EARNINGS SUMMARY:

 

 

 

December

2023

 

December

2022

 

September

2023

 

December

2023

 

December

2022

Interest income

 

 

 

$

369,175

 

 

$

307,741

 

 

$

356,910

 

 

$

1,401,320

 

 

$

1,001,990

 

Interest expense

 

 

 

 

139,485

 

 

 

58,337

 

 

 

128,457

 

 

 

481,396

 

 

 

105,559

 

Net interest income

 

 

 

 

229,690

 

 

 

249,404

 

 

 

228,453

 

 

 

919,924

 

 

 

896,431

 

Provision for credit losses

 

 

 

 

6,875

 

 

 

16,368

 

 

 

5,948

 

 

 

31,153

 

 

 

18,822

 

Noninterest income

 

 

 

 

33,675

 

 

 

30,879

 

 

 

33,661

 

 

 

135,258

 

 

 

153,261

 

Noninterest expense

 

 

 

 

152,287

 

 

 

137,542

 

 

 

135,230

 

 

 

560,224

 

 

 

555,087

 

Income before income taxes

 

 

 

 

104,203

 

 

 

126,373

 

 

 

120,936

 

 

 

463,805

 

 

 

475,783

 

Income taxes

 

 

 

 

24,813

 

 

 

26,608

 

 

 

24,779

 

 

 

97,492

 

 

 

96,156

 

Net income

 

 

 

$

79,390

 

 

$

99,765

 

 

$

96,157

 

 

$

366,313

 

 

$

379,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

0.59

 

 

$

0.74

 

 

$

0.71

 

 

$

2.72

 

 

$

2.81

 

Diluted

 

 

 

 

0.59

 

 

 

0.74

 

 

 

0.71

 

 

 

2.71

 

 

 

2.80

 

Cash dividends

 

 

 

$

0.37

 

 

$

0.36

 

 

 

0.36

 

 

 

1.45

 

 

 

1.44

 

Book value

 

 

 

 

 

 

 

 

34.45

 

 

 

35.36

 

 

 

33.52

 

Closing market price

 

 

 

 

 

 

 

$

27.59

 

 

$

37.55

 

 

$

40.49

 

Common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

 

 

 

 

 

 

134,933,015

 

 

 

134,949,063

 

 

 

134,745,122

 

Weighted average-basic

 

 

 

 

134,691,360

 

 

 

134,267,532

 

 

 

134,685,041

 

 

 

134,505,058

 

 

 

134,776,241

 

Weighted average-diluted

 

 

 

 

134,984,970

 

 

 

134,799,436

 

 

 

134,887,776

 

 

 

134,753,820

 

 

 

135,117,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

 

1.08

%

 

 

1.36

%

 

 

1.31

%

 

 

1.25

%

 

 

1.31

%

Return on average shareholders’ equity

 

 

 

 

6.70

%

 

 

8.80

%

 

 

8.14

%

 

 

7.87

%

 

 

8.25

%

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

 

 

 

 

11.27

%

 

 

15.28

%

 

 

13.71

%

 

 

13.33

%

 

 

14.11

%

Average equity to average assets

 

 

 

 

16.11

%

 

 

15.45

%

 

 

16.12

%

 

 

15.89

%

 

 

15.83

%

Net interest margin

 

 

 

 

3.55

%

 

 

3.87

%

 

 

3.54

%

 

 

3.56

%

 

 

3.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

 

 

 

 

December 31

2023

 

December 31

2022

 

September 30

2023

 

June 30

2023

Assets

 

 

 

 

 

$

29,926,482

 

 

$

29,489,380

 

 

$

29,224,794

 

 

$

29,694,651

 

Earning assets

 

 

 

 

 

 

26,623,652

 

 

 

26,135,400

 

 

 

25,883,462

 

 

 

26,335,600

 

Loans & leases, net of unearned income

 

 

 

 

 

 

21,359,084

 

 

 

20,558,166

 

 

 

21,097,883

 

 

 

20,764,291

 

Loans held for sale

 

 

 

 

 

 

56,261

 

 

 

56,879

 

 

 

59,614

 

 

 

91,296

 

Investment securities

 

 

 

 

 

 

4,125,754

 

 

 

4,872,604

 

 

 

4,066,299

 

 

 

4,342,714

 

Total deposits

 

 

 

 

 

 

22,819,319

 

 

 

22,303,166

 

 

 

22,676,854

 

 

 

22,369,753

 

Shareholders’ equity

 

 

 

 

 

 

4,771,240

 

 

 

4,516,193

 

 

 

4,648,878

 

 

 

4,637,043

 

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

Three Months Ended

 

Year Ended

Consolidated Statements of Income

December

 

December

 

September

 

June

 

March

 

December

 

December

 

2023

 

2022

 

2023

 

2023

 

2023

 

2023

 

2022

Interest & Loan Fees Income (GAAP)

$

369,175

 

 

$

307,741

 

 

$

356,910

 

 

$

345,932

 

 

$

329,303

 

 

$

1,401,320

 

 

$

1,001,990

 

Tax equivalent adjustment

 

866

 

 

 

1,149

 

 

 

869

 

 

 

1,144

 

 

 

1,135

 

 

 

4,014

 

 

 

4,467

 

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

 

370,041

 

 

 

308,890

 

 

 

357,779

 

 

 

347,076

 

 

 

330,438

 

 

 

1,405,334

 

 

 

1,006,457

 

Interest Expense

 

139,485

 

 

 

58,337

 

 

 

128,457

 

 

 

118,471

 

 

 

94,983

 

 

 

481,396

 

 

 

105,559

 

Net Interest Income (FTE) (non-GAAP)

 

230,556

 

 

 

250,553

 

 

 

229,322

 

 

 

228,605

 

 

 

235,455

 

 

 

923,938

 

 

 

900,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

6,875

 

 

 

16,368

 

 

 

5,948

 

 

 

11,440

 

 

 

6,890

 

 

 

31,153

 

 

 

18,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees from trust services

 

4,508

 

 

 

4,411

 

 

 

4,514

 

 

 

4,516

 

 

 

4,780

 

 

 

18,318

 

 

 

17,216

 

Fees from brokerage services

 

4,360

 

 

 

3,729

 

 

 

4,433

 

 

 

3,918

 

 

 

4,200

 

 

 

16,911

 

 

 

16,412

 

Fees from deposit services

 

9,107

 

 

 

9,510

 

 

 

9,282

 

 

 

9,325

 

 

 

9,362

 

 

 

37,076

 

 

 

40,557

 

Bankcard fees and merchant discounts

 

1,923

 

 

 

1,673

 

 

 

1,676

 

 

 

1,707

 

 

 

1,707

 

 

 

7,013

 

 

 

6,580

 

Other charges, commissions, and fees

 

924

 

 

 

805

 

 

 

850

 

 

 

949

 

 

 

1,138

 

 

 

3,861

 

 

 

3,267

 

Income from bank-owned life insurance

 

1,855

 

 

 

1,402

 

 

 

2,562

 

 

 

2,022

 

 

 

1,891

 

 

 

8,330

 

 

 

9,188

 

Income from mortgage banking activities

 

4,746

 

 

 

4,620

 

 

 

7,556

 

 

 

7,907

 

 

 

6,384

 

 

 

26,593

 

 

 

42,690

 

Mortgage loan servicing income

 

783

 

 

 

2,218

 

 

 

846

 

 

 

9,841

 

 

 

2,276

 

 

 

13,746

 

 

 

9,235

 

Net gains (losses) on investment securities

 

276

 

 

 

51

 

 

 

(181

)

 

 

(7,336

)

 

 

(405

)

 

 

(7,646

)

 

 

776

 

Other noninterest income

 

5,193

 

 

 

2,460

 

 

 

2,123

 

 

 

2,329

 

 

 

1,411

 

 

 

11,056

 

 

 

7,340

 

Total Noninterest Income

 

33,675

 

 

 

30,879

 

 

 

33,661

 

 

 

35,178

 

 

 

32,744

 

 

 

135,258

 

 

 

153,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation

 

57,829

 

 

 

57,537

 

 

 

59,064

 

 

 

58,502

 

 

 

55,414

 

 

 

230,809

 

 

 

242,408

 

Employee benefits

 

9,771

 

 

 

10,296

 

 

 

12,926

 

 

 

12,236

 

 

 

13,435

 

 

 

48,368

 

 

 

45,944

 

Net occupancy

 

11,690

 

 

 

11,455

 

 

 

11,494

 

 

 

11,409

 

 

 

11,833

 

 

 

46,426

 

 

 

45,129

 

Data processing

 

7,261

 

 

 

7,463

 

 

 

7,405

 

 

 

7,256

 

 

 

7,473

 

 

 

29,395

 

 

 

29,997

 

Amortization of intangibles

 

1,279

 

 

 

1,379

 

 

 

1,279

 

 

 

1,279

 

 

 

1,279

 

 

 

5,116

 

 

 

5,516

 

OREO expense

 

188

 

 

 

202

 

 

 

185

 

 

 

315

 

 

 

667

 

 

 

1,355

 

 

 

2,138

 

Net (gains) losses on the sale of OREO properties

 

(126

)

 

 

1,062

 

 

 

93

 

 

 

16

 

 

 

(43

)

 

 

(60

)

 

 

700

 

Equipment expense

 

7,539

 

 

 

6,868

 

 

 

7,170

 

 

 

8,026

 

 

 

6,996

 

 

 

29,731

 

 

 

29,320

 

FDIC insurance expense

 

16,621

 

 

 

3,248

 

 

 

4,598

 

 

 

4,570

 

 

 

4,587

 

 

 

30,376

 

 

 

11,988

 

Mortgage loan servicing expense and impairment

 

962

 

 

 

1,826

 

 

 

1,051

 

 

 

1,699

 

 

 

1,884

 

 

 

5,596

 

 

 

7,099

 

Expense for the reserve for unfunded loan commitments

 

940

 

 

 

6,492

 

 

 

(3,002

)

 

 

(2,021

)

 

 

2,600

 

 

 

(1,483

)

 

 

14,747

 

Other noninterest expense

 

38,333

 

 

 

29,714

 

 

 

32,967

 

 

 

32,001

 

 

 

31,294

 

 

 

134,595

 

 

 

120,101

 

Total Noninterest Expense

 

152,287

 

 

 

137,542

 

 

 

135,230

 

 

 

135,288

 

 

 

137,419

 

 

 

560,224

 

 

 

555,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

105,069

 

 

 

127,522

 

 

 

121,805

 

 

 

117,055

 

 

 

123,890

 

 

 

467,819

 

 

 

480,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

866

 

 

 

1,149

 

 

 

869

 

 

 

1,144

 

 

 

1,135

 

 

 

4,014

 

 

 

4,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

104,203

 

 

 

126,373

 

 

 

120,936

 

 

 

115,911

 

 

 

122,755

 

 

 

463,805

 

 

 

475,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes

 

24,813

 

 

 

26,608

 

 

 

24,779

 

 

 

23,452

 

 

 

24,448

 

 

 

97,492

 

 

 

96,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

79,390

 

 

$

99,765

 

 

$

96,157

 

 

$

92,459

 

 

$

98,307

 

 

$

366,313

 

 

$

379,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

23.81

%

 

 

21.06

%

 

 

20.49

%

 

 

20.23

%

 

 

19.92

%

 

 

21.02

%

 

 

20.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

December 2023

 

December 2022

 

December 31 

 

December 31 

 

September 30 

 

 

Q-T-D Average

Q-T-D Average

2023

2022

 

2023

Cash & Cash Equivalents

 

$

1,073,118

 

 

$

1,053,162

 

 

$

1,598,943

 

 

$

1,176,652

 

 

$

1,184,054

 

Securities Available for Sale

 

 

3,710,447

 

 

 

4,590,452

 

 

 

3,786,377

 

 

 

4,541,925

 

 

 

3,749,357

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

3,710,447

 

 

 

4,590,452

 

 

 

3,786,377

 

 

 

4,541,925

 

 

 

3,749,357

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(18

)

 

 

(19

)

 

 

(17

)

 

 

(18

)

 

 

(18

)

Net held to maturity securities

 

 

1,002

 

 

 

1,001

 

 

 

1,003

 

 

 

1,002

 

 

 

1,002

 

Equity Securities

 

 

8,598

 

 

 

7,305

 

 

 

8,945

 

 

 

7,629

 

 

 

8,548

 

Other Investment Securities

 

 

311,922

 

 

 

286,253

 

 

 

329,429

 

 

 

322,048

 

 

 

307,392

 

Total Securities

 

 

4,031,969

 

 

 

4,885,011

 

 

 

4,125,754

 

 

 

4,872,604

 

 

 

4,066,299

 

Total Cash and Securities

 

 

5,105,087

 

 

 

5,938,173

 

 

 

5,724,697

 

 

 

6,049,256

 

 

 

5,250,353

 

Loans held for sale

 

 

53,499

 

 

 

56,849

 

 

 

56,261

 

 

 

56,879

 

 

 

59,614

 

Commercial Loans & Leases

 

 

15,510,282

 

 

 

14,830,629

 

 

 

15,535,204

 

 

 

14,986,117

 

 

 

15,416,232

 

Mortgage Loans

 

 

4,576,046

 

 

 

4,045,587

 

 

 

4,728,374

 

 

 

4,158,226

 

 

 

4,519,845

 

Consumer Loans

 

 

1,156,339

 

 

 

1,430,837

 

 

 

1,109,607

 

 

 

1,435,820

 

 

 

1,178,898

 

Gross Loans

 

 

21,242,667

 

 

 

20,307,053

 

 

 

21,373,185

 

 

 

20,580,163

 

 

 

21,114,975

 

Unearned income

 

 

(16,722

)

 

 

(23,110

)

 

 

(14,101

)

 

 

(21,997

)

 

 

(17,092

)

Loans & Leases, net of unearned income

 

 

21,225,945

 

 

 

20,283,943

 

 

 

21,359,084

 

 

 

20,558,166

 

 

 

21,097,883

 

Allowance for Loan & Lease Losses

 

 

(255,032

)

 

 

(219,933

)

 

 

(259,237

)

 

 

(234,746

)

 

 

(254,886

)

Net Loans

 

 

20,970,913

 

 

 

20,064,010

 

 

 

21,099,847

 

 

 

20,323,420

 

 

 

20,842,997

 

Mortgage Servicing Rights

 

 

4,573

 

 

 

21,590

 

 

 

4,554

 

 

 

21,022

 

 

 

4,616

 

Goodwill

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

Other Intangibles

 

 

14,569

 

 

 

19,767

 

 

 

12,505

 

 

 

18,897

 

 

 

15,060

 

Operating Lease Right-of-Use Asset

 

 

80,622

 

 

 

72,666

 

 

 

86,986

 

 

 

71,144

 

 

 

80,259

 

Other Real Estate Owned

 

 

2,885

 

 

 

10,003

 

 

 

2,615

 

 

 

2,052

 

 

 

3,181

 

Bank-Owned Life Insurance

 

 

484,987

 

 

 

478,516

 

 

 

486,895

 

 

 

480,184

 

 

 

485,386

 

Other Assets

 

 

558,122

 

 

 

558,901

 

 

 

563,233

 

 

 

577,637

 

 

 

594,439

 

Total Assets

 

$

29,164,146

 

 

$

29,109,364

 

 

$

29,926,482

 

 

$

29,489,380

 

 

$

29,224,794

 

MEMO: Interest-earning Assets

 

$

25,875,812

 

 

$

25,742,282

 

 

$

26,623,652

 

 

$

26,135,400

 

 

$

25,883,462

 

Interest-bearing Deposits

 

$

16,414,152

 

 

$

15,166,408

 

 

$

16,670,239

 

 

$

15,103,488

 

 

$

16,423,511

 

Noninterest-bearing Deposits

 

 

6,175,309

 

 

 

7,507,329

 

 

 

6,149,080

 

 

 

7,199,678

 

 

 

6,253,343

 

Total Deposits

 

 

22,589,461

 

 

 

22,673,737

 

 

 

22,819,319

 

 

 

22,303,166

 

 

 

22,676,854

 

Short-term Borrowings

 

 

198,453

 

 

 

154,894

 

 

 

196,095

 

 

 

160,698

 

 

 

188,274

 

Long-term Borrowings

 

 

1,394,361

 

 

 

1,527,904

 

 

 

1,789,103

 

 

 

2,197,656

 

 

 

1,388,770

 

Total Borrowings

 

 

1,592,814

 

 

 

1,682,798

 

 

 

1,985,198

 

 

 

2,358,354

 

 

 

1,577,044

 

Operating Lease Liability

 

 

85,063

 

 

 

77,338

 

 

 

92,885

 

 

 

75,749

 

 

 

84,569

 

Other Liabilities

 

 

199,128

 

 

 

177,113

 

 

 

257,840

 

 

 

235,918

 

 

 

237,449

 

Total Liabilities

 

 

24,466,466

 

 

 

24,610,986

 

 

 

25,155,242

 

 

 

24,973,187

 

 

 

24,575,916

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,697,680

 

 

 

4,498,378

 

 

 

4,771,240

 

 

 

4,516,193

 

 

 

4,648,878

 

Total Shareholders' Equity

 

 

4,697,680

 

 

 

4,498,378

 

 

 

4,771,240

 

 

 

4,516,193

 

 

 

4,648,878

 

Total Liabilities & Equity

 

$

29,164,146

 

 

$

29,109,364

 

 

$

29,926,482

 

 

$

29,489,380

 

 

$

29,224,794

 

MEMO: Interest-bearing Liabilities

 

$

18,006,966

 

 

$

16,849,206

 

 

$

18,655,437

 

 

$

17,461,842

 

 

$

18,000,555

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December

 

December

 

September

 

June

 

March

 

December

 

December

Quarterly/Year-to-Date Share Data:

2023

 

2022

 

2023

 

2023

 

2023

 

2023

 

2022

Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.59

 

 

$

0.74

 

 

$

0.71

 

 

$

0.68

 

 

$

0.73

 

 

$

2.72

 

 

$

2.81

 

Diluted

$

0.59

 

 

$

0.74

 

 

$

0.71

 

 

$

0.68

 

 

$

0.73

 

 

$

2.71

 

 

$

2.80

 

Common Dividend Declared Per Share

$

0.37

 

 

$

0.36

 

 

$

0.36

 

 

$

0.36

 

 

$

0.36

 

 

$

1.45

 

 

$

1.44

 

High Common Stock Price

$

38.74

 

 

$

44.15

 

 

$

34.30

 

 

$

35.61

 

 

$

42.45

 

 

$

42.45

 

 

$

44.15

 

Low Common Stock Price

$

25.35

 

 

$

35.73

 

 

$

26.49

 

 

$

27.68

 

 

$

33.35

 

 

$

25.35

 

 

$

33.11

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

134,691,360

 

 

 

134,267,532

 

 

 

134,685,041

 

 

 

134,683,010

 

 

 

134,411,166

 

 

 

134,505,058

 

 

 

134,776,241

 

Diluted

 

134,984,970

 

 

 

134,799,436

 

 

 

134,887,776

 

 

 

134,849,818

 

 

 

134,840,328

 

 

 

134,753,820

 

 

 

135,117,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividends

$

50,066

 

 

$

48,603

 

 

$

48,706

 

 

$

48,628

 

 

$

48,720

 

 

$

196,120

 

 

$

194,977

 

Dividend Payout Ratio

 

63.06

%

 

 

48.72

%

 

 

50.65

%

 

 

52.59

%

 

 

49.56

%

 

 

53.54

%

 

 

51.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

EOP Share Data:

 

 

 

 

 

 

2023

 

2022

 

2023

 

2023

Book Value Per Share

 

 

 

 

 

 

$

35.36

 

 

$

33.52

 

 

$

34.45

 

 

$

34.37

 

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

 

 

 

 

 

 

$

21.27

 

 

$

19.36

 

 

$

20.34

 

 

$

20.25

 

52-week High Common Stock Price

 

 

 

 

 

 

$

42.45

 

 

$

44.15

 

 

$

44.15

 

 

$

44.15

 

Date

 

 

 

 

 

 

2/3/2023

 

 

11/11/22

 

 

11/11/22

 

 

11/11/22

 

52-week Low Common Stock Price

 

 

 

 

 

 

$

25.35

 

 

$

33.11

 

 

$

26.49

 

 

$

27.68

 

Date

 

 

 

 

 

 

10/24/23

 

 

5/2/22

 

 

9/22/23

 

 

5/12/23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

 

134,949,063

 

 

 

134,745,122

 

 

 

134,933,015

 

 

 

134,934,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

 

 

 

 

 

2,736

 

 

 

2,856

 

 

 

2,803

 

 

 

2,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

 

 

 

 

 

$

4,771,240

 

 

$

4,516,193

 

 

$

4,648,878

 

 

$

4,637,043

 

Less: Total Intangibles

 

 

 

 

 

 

 

(1,901,394

)

 

 

(1,907,786

)

 

 

(1,903,949

)

 

 

(1,905,228

)

Tangible Equity (non-GAAP)

 

 

 

 

 

 

$

2,869,846

 

 

$

2,608,407

 

 

$

2,744,929

 

 

$

2,731,815

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

 

 

 

 

 

134,949,063

 

 

 

134,745,122

 

 

 

134,933,015

 

 

 

134,934,858

 

Tangible Book Value Per Share (non-GAAP)

 

 

 

 

 

 

$

21.27

 

 

$

19.36

 

 

$

20.34

 

 

$

20.25

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 2023

 

Three Months Ended

December 2022

 

Three Months Ended

September 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

 

 

 

5.60

%

 

 

 

4.82

%

 

 

 

5.50

%

agreements to resell and other short-term investments

$

819,431

 

$

11,570

$

736,412

 

$

8,946

$

852,224

 

$

11,810

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

3,836,498

 

 

 

35,710

 

3.72

%

 

 

4,508,813

 

 

 

34,568

 

3.07

%

 

 

3,994,073

 

 

 

35,730

 

3.58

%

Tax-exempt

 

 

195,471

 

 

 

1,471

 

3.01

%

 

 

376,198

 

 

 

2,717

 

2.89

%

 

 

211,178

 

 

 

1,482

 

2.81

%

Total securities

 

 

4,031,969

 

 

 

37,181

 

3.69

%

 

 

4,885,011

 

 

 

37,285

 

3.05

%

 

 

4,205,251

 

 

 

37,212

 

3.54

%

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

 

 

21,279,444

 

 

 

321,290

 

6.00

%

 

 

20,340,792

 

 

 

262,659

 

5.13

%

 

 

20,961,313

 

 

 

308,757

 

5.85

%

Allowance for loan losses

 

 

(255,032

)

 

 

 

 

 

 

(219,933

)

 

 

 

 

 

 

(250,810

)

 

 

 

 

Net loans and loans held for sale

 

 

21,024,412

 

 

 

 

6.07

%

 

 

20,120,859

 

 

 

 

5.18

%

 

 

20,710,503

 

 

 

 

5.92

%

Total earning assets

 

 

25,875,812

 

 

$

370,041

 

5.68

%

 

 

25,742,282

 

 

$

308,890

 

4.77

%

 

 

25,767,978

 

 

$

357,779

 

5.52

%

Other assets

 

 

3,288,334

 

 

 

 

 

 

 

3,367,082

 

 

 

 

 

 

 

3,307,943

 

 

 

 

 

TOTAL ASSETS

 

$

29,164,146

 

 

 

 

 

 

$

29,109,364

 

 

 

 

 

 

$

29,075,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

16,414,152

 

 

$

122,132

 

2.95

%

 

$

15,166,408

 

 

$

44,265

 

1.16

%

 

$

15,993,991

 

 

$

108,793

 

2.70

%

Short-term borrowings

 

 

198,453

 

 

 

1,998

 

3.99

%

 

 

154,894

 

 

 

874

 

2.24

%

 

 

188,945

 

 

 

1,805

 

3.79

%

Long-term borrowings

 

 

1,394,361

 

 

 

15,355

 

4.37

%

 

 

1,527,904

 

 

 

13,198

 

3.43

%

 

 

1,590,763

 

 

 

17,859

 

4.45

%

Total interest-bearing liabilities

 

 

18,006,966

 

 

 

139,485

 

3.07

%

 

 

16,849,206

 

 

 

58,337

 

1.37

%

 

 

17,773,699

 

 

 

128,457

 

2.87

%

Noninterest-bearing deposits

 

 

6,175,309

 

 

 

 

 

 

 

7,507,329

 

 

 

 

 

 

 

6,337,052

 

 

 

 

 

Accrued expenses and other liabilities

 

 

284,191

 

 

 

 

 

 

 

254,451

 

 

 

 

 

 

 

278,046

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,466,466

 

 

 

 

 

 

 

24,610,986

 

 

 

 

 

 

 

24,388,797

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,697,680

 

 

 

 

 

 

 

4,498,378

 

 

 

 

 

 

 

4,687,124

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,164,146

 

 

 

 

 

 

$

29,109,364

 

 

 

 

 

 

$

29,075,921

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

230,556

 

 

 

 

 

$

250,553

 

 

 

 

 

$

229,322

 

 

INTEREST RATE SPREAD

 

 

 

 

 

2.61

%

 

 

 

 

 

3.40

%

 

 

 

 

 

2.65

%

NET INTEREST MARGIN

 

 

 

 

 

3.55

%

 

 

 

 

 

3.87

%

 

 

 

 

 

3.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

December 2023

 

Year Ended

December 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

 

 

 

 

5.23

%

 

 

 

1.44

%

agreements to resell and other short-term investments

$

900,077

 

$

47,069

$

1,597,108

 

$

22,950

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

 

4,125,467

 

 

 

144,420

 

3.50

%

 

 

4,532,713

 

 

 

105,780

 

2.33

%

Tax-exempt

 

 

 

294,802

 

 

 

8,411

 

2.85

%

 

 

410,037

 

 

 

10,983

 

2.68

%

Total securities

 

 

 

4,420,269

 

 

 

152,831

 

3.46

%

 

 

4,942,750

 

 

 

116,763

 

2.36

%

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

 

 

 

20,909,248

 

 

 

1,205,434

 

5.77

%

 

 

19,389,485

 

 

 

866,744

 

4.47

%

Allowance for loan losses

 

 

 

(245,386

)

 

 

 

 

 

 

(216,104

)

 

 

 

 

Net loans and loans held for sale

 

 

 

20,663,862

 

 

 

 

5.83

%

 

 

19,173,381

 

 

 

 

4.52

%

Total earning assets

 

 

 

25,984,208

 

 

$

1,405,334

 

5.41

%

 

 

25,713,239

 

 

$

1,006,457

 

3.91

%

Other assets

 

 

 

3,311,450

 

 

 

 

 

 

 

3,360,609

 

 

 

 

 

TOTAL ASSETS

 

 

$

29,295,658

 

 

 

 

 

 

$

29,073,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

$

15,782,761

 

 

$

391,094

 

2.48

%

 

$

15,466,386

 

 

$

80,237

 

0.52

%

Short-term borrowings

 

 

 

182,936

 

 

 

6,449

 

3.53

%

 

 

140,773

 

 

 

1,785

 

1.27

%

Long-term borrowings

 

 

 

1,923,924

 

 

 

83,853

 

4.36

%

 

 

1,014,655

 

 

 

23,537

 

2.32

%

Total interest-bearing liabilities

 

 

 

17,889,621

 

 

 

481,396

 

2.69

%

 

 

16,621,814

 

 

 

105,559

 

0.64

%

Noninterest-bearing deposits

 

 

 

6,475,051

 

 

 

 

 

 

 

7,580,624

 

 

 

 

 

Accrued expenses and other liabilities

 

 

 

276,883

 

 

 

 

 

 

 

269,970

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

24,641,555

 

 

 

 

 

 

 

24,472,408

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

4,654,103

 

 

 

 

 

 

 

4,601,440

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

 

$

29,295,658

 

 

 

 

 

 

$

29,073,848

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

$

923,938

 

 

 

 

 

$

900,898

 

 

INTEREST RATE SPREAD

 

 

 

 

 

 

2.72

%

 

 

 

 

 

3.27

%

NET INTEREST MARGIN

 

 

 

 

 

 

3.56

%

 

 

 

 

 

3.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

Year Ended

 

 

December

 

 

December

 

 

September

 

 

June

 

 

March

 

December

 

December

 

 

Selected Financial Ratios:

2023

 

 

2022

 

 

2023

 

 

2023

 

 

2023

 

2023

 

2022

 

 

Return on Average Assets

 

1.08

%

 

 

 

1.36

%

 

 

 

1.31

%

 

 

 

1.26

%

 

 

 

1.35

 

%

 

 

1.25

 

%

 

 

1.31

%

 

 

Return on Average Shareholders’ Equity

 

6.70

%

 

 

 

8.80

%

 

 

 

8.14

%

 

 

 

7.96

%

 

 

 

8.72

 

%

 

 

7.87

 

%

 

 

8.25

%

 

 

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

 

11.27

%

 

 

 

15.28

%

 

 

 

13.71

%

 

 

 

13.47

%

 

 

 

14.97

 

%

 

 

13.33

 

%

 

 

14.11

%

 

 

Efficiency Ratio

 

57.82

%

 

 

 

49.07

%

 

 

 

51.59

%

 

 

 

51.51

%

 

 

 

51.46

 

%

 

 

53.09

 

%

 

 

52.88

%

 

 

Price / Earnings Ratio

 

16.00

 

x

 

13.71

 

x

 

9.70

 

x

 

10.84

 

x

 

12.10

x

 

13.85

x

 

14.46

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Net Income (GAAP)

$

79,390

 

 

 

$

99,765

 

 

 

$

96,157

 

 

 

$

92,459

 

 

 

$

98,307

 

 

 

$

366,313

 

 

 

$

379,627

 

 

 

(b) Number of Days

 

92

 

 

 

 

92

 

 

 

 

92

 

 

 

 

91

 

 

 

 

90

 

 

 

 

365

 

 

 

 

365

 

 

 

Average Total Shareholders' Equity (GAAP)

$

4,697,680

 

 

 

$

4,498,378

 

 

 

$

4,687,124

 

 

 

$

4,659,094

 

 

 

$

4,570,288

 

 

 

$

4,654,103

 

 

 

$

4,601,440

 

 

 

Less: Average Total Intangibles

 

(1,903,458

)

 

 

 

(1,908,656

)

 

 

 

(1,904,769

)

 

 

 

(1,906,053

)

 

 

 

(1,907,331

 

)

 

 

(1,905,390

 

)

 

 

(1,910,377

)

 

 

(c) Average Tangible Equity (non-GAAP)

$

2,794,222

 

 

 

$

2,589,722

 

 

 

$

2,782,355

 

 

 

$

2,753,041

 

 

 

$

2,662,957

 

 

 

$

2,748,713

 

 

 

$

2,691,063

 

 

 

Return on Average Tangible Equity (non-GAAP)\

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

 

11.27

%

 

 

 

15.28

%

 

 

 

13.71

%

 

 

 

13.47

%

 

 

 

14.97

 

%

 

 

13.33

 

%

 

 

14.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

 

 

 

 

 

 

 

 

December 31

2023

 

 

December 31

2022

 

September 30

2023

 

June 30

2023

 

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

 

 

 

 

 

 

 

 

93.60

%

 

 

 

92.18

 

%

 

 

93.04

 

%

 

 

92.82

%

 

 

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

 

 

 

 

 

 

1.21

%

 

 

 

1.14

 

%

 

 

1.21

 

%

 

 

1.21

%

 

 

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

 

 

 

 

 

 

1.42

%

 

 

 

1.37

 

%

 

 

1.42

 

%

 

 

1.43

%

 

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

 

 

 

 

0.14

%

 

 

 

0.12

 

%

 

 

0.12

 

%

 

 

0.13

%

 

 

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

 

 

 

 

 

 

0.07

%

 

 

 

0.08

 

%

 

 

0.09

 

%

 

 

0.07

%

 

 

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

 

 

 

 

 

 

0.21

%

 

 

 

0.29

 

%

 

 

0.20

 

%

 

 

0.20

%

 

 

Non-performing Assets/ Total Assets

 

 

 

 

 

 

 

 

 

 

0.16

%

 

 

 

0.21

 

%

 

 

0.16

 

%

 

 

0.15

%

 

 

Primary Capital Ratio

 

 

 

 

 

 

 

 

 

 

16.79

%

 

 

 

16.11

 

%

 

 

16.76

 

%

 

 

16.45

%

 

 

Shareholders' Equity Ratio

 

 

 

 

 

 

 

 

 

 

15.94

%

 

 

 

15.31

 

%

 

 

15.91

 

%

 

 

15.62

%

 

 

Price / Book Ratio

 

 

 

 

 

 

 

 

 

 

1.06

 

x

 

1.21

x

 

0.80

x

 

0.86

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December

 

December

 

September

 

June

 

March

 

December

 

December

Mortgage Banking Segment Data:

2023

 

2022

 

2023

 

2023

 

2023

 

2023

 

2022

Applications

$

564,766

 

 

$

447,951

 

 

$

458,818

 

 

$

588,734

 

 

$

505,840

 

 

$

2,118,158

 

 

$

4,089,086

 

Loans originated

 

431,351

 

 

 

399,706

 

 

 

342,131

 

 

 

416,255

 

 

 

312,077

 

 

 

1,501,814

 

 

 

2,913,708

 

Loans sold

$

370,213

 

 

$

396,735

 

 

$

367,679

 

 

$

399,632

 

 

$

301,476

 

 

$

1,439,000

 

 

$

3,203,749

 

Purchase money % of loans closed

 

87

%

 

 

85

%

 

 

94

%

 

 

94

%

 

 

92

%

 

 

92

%

 

 

81

%

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

 

2.11

%

 

 

1.82

%

 

 

2.29

%

 

 

2.27

%

 

 

2.17

%

 

 

2.22

%

 

 

2.40

%

Net interest income

$

2,635

 

 

$

2,654

 

 

$

2,558

 

 

$

2,155

 

 

$

2,122

 

 

$

9,470

 

 

$

10,599

 

Other income

 

7,680

 

 

 

10,693

 

 

 

10,871

 

 

 

19,946

 

 

 

10,861

 

 

 

49,358

 

 

 

69,307

 

Other expense

 

14,287

 

 

 

17,097

 

 

 

14,119

 

 

 

15,706

 

 

 

15,085

 

 

 

59,197

 

 

 

88,983

 

Income taxes

 

(1,268

)

 

 

(810

)

 

 

(141

)

 

 

1,270

 

 

 

(424

)

 

 

(563

)

 

 

(1,858

)

Net (loss) income

$

(2,704

)

 

$

(2,940

)

 

$

(549

)

 

$

5,125

 

 

$

(1,678

)

 

$

194

 

 

$

(7,219

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

 

March 31

Period End Mortgage Banking Segment Data:

 

 

 

2023

 

2022

 

2023

 

2023

 

2023

Locked pipeline

 

 

 

 

$

93,368

 

 

$

68,654

 

 

$

99,988

 

 

$

93,417

 

 

$

92,639

 

Balance of loans serviced

 

 

 

 

$

1,202,448

 

 

$

3,381,485

 

 

$

1,216,805

 

 

$

1,242,441

 

 

$

3,280,741

 

Number of loans serviced

 

 

 

 

 

12,419

 

 

 

23,510

 

 

 

12,596

 

 

 

12,843

 

 

 

22,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

December 31

 

September 30

 

June 30

 

March 31

Asset Quality Data:

 

 

 

 

2023

 

2022

 

2023

 

2023

 

2023

EOP Non-Accrual Loans

 

 

 

 

$

30,919

 

 

$

23,685

 

 

$

24,456

 

 

$

26,545

 

 

$

29,296

 

EOP 90-Day Past Due Loans

 

 

 

 

 

14,579

 

 

 

15,565

 

 

 

18,283

 

 

 

15,007

 

 

 

13,105

 

EOP Restructured Loans (1)

 

 

 

 

 

n/a

 

 

 

19,388