United Bankshares, Inc. Announces Record Earnings for the Year of 2019
United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and year of 2019. Earnings for the fourth quarter of 2019 were $63.3 million or $0.62 per diluted share as compared to earnings of $64.0 million or $0.62 per diluted share for the fourth quarter of 2018. Earnings for the year of 2019 were a record $260.1 million or $2.55 per diluted share as compared to earnings of $256.3 million or $2.45 per diluted share for the year of 2018.
Fourth quarter of 2019 results produced an annualized return on average assets of 1.29%, an annualized return on average equity of 7.42% and an annualized return on average tangible equity of 13.38%. For the year of 2019, United’s return on average assets was 1.34% while the return on average equity was 7.80% and the return on average tangible equity was 14.26%. United’s annualized returns on average assets, average equity and average tangible equity were 1.33%, 7.77% and 14.52%, respectively, for the fourth quarter of 2018 while the returns on average assets, average equity and average tangible equity were 1.36%, 7.84% and 14.65%, respectively, for the year of 2018.
“2019 was another great year for United Bankshares,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We earned record net income of $260 million and record diluted earnings per share of $2.55, announced the intent to acquire Carolina Financial Corporation, our 32nd acquisition of the current administration, and increased dividends to our shareholders for the 46th consecutive year, a record only one other major banking company in the USA has been able to achieve.”
Net interest income for the fourth quarter of 2019 was $141.3 million, which was a decrease of $5.4 million or 4% from the fourth quarter of 2018. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2019 was $142.1 million, a decrease of $5.6 million or 4% from the fourth quarter of 2018 due mainly to a decrease of 18 basis points in the average yield on earning assets and an increase of 7 basis points in the average cost of funds as compared to the fourth quarter of 2018. Partially offsetting these decreases to tax-equivalent net interest income for the fourth quarter of 2019 was an increase in average earning assets as compared to the fourth quarter of 2018. Average earning assets for the fourth quarter of 2019 increased $373.0 million or 2% from the fourth quarter of 2018 due mainly to an increase of $410.8 million or 3% in average net loans. In addition, average investment securities for the fourth quarter of 2019 increased $199.1 million or 8% from the fourth quarter of 2018. Partially offsetting these increases was a decrease in average short-term investments of $236.9 million or 28%. The net interest margin of 3.29% for the fourth quarter of 2019 was a decrease of 21 basis points from the net interest margin of 3.50% for the fourth quarter of 2018.
Net interest income for the year of 2019 was $577.9 million, which was a decrease of $10.7 million or 2% from the year of 2018. Tax-equivalent net interest income for the year of 2019 was $581.7 million, which was a decrease of $11.3 million or 2% from the year of 2018 due mainly to an increase in the average cost of funds. The average cost of funds for the year of 2019 increased 45 basis points from the year of 2018 due to higher market interest rates and a change in the mix of interest bearing liabilities. Partially offsetting the decreases to tax-equivalent net interest income for the year of 2019 were increases in average earning assets and the average yield on those average earning assets. For the year of 2019, average earning assets increased $608.0 million or 4% from the year of 2018 due mainly to increases of $403.4 million or 3% in average net loans and $313.9 million or 14% in average investment securities. Average short-term investments decreased $109.2 million or 13%. The average yield on earning assets for the year of 2019 increased 11 basis points from the year of 2018 due primarily to higher market rates. Loan accretion on acquired loans was $38.8 million and $43.2 million for the year of 2019 and 2018, respectively, decreasing $4.4 million or 10%. The net interest margin of 3.39% for the year of 2019 was a decrease of 19 basis points from the net interest margin of 3.58% for the year of 2018.
On a linked-quarter basis, net interest income for the fourth quarter of 2019 was relatively flat from the third quarter of 2019, decreasing $635 thousand or less than 1%. United’s tax-equivalent net interest income for the fourth quarter of 2019 was also relatively flat from the third quarter of 2019, decreasing $698 thousand or less than 1% due mainly to a decrease of 10 basis points in the average yield on earning assets. In addition, average earning assets declined $191.1 million or 1%. Specifically, average short-term investments decreased $234.6 million or 28% while average investment securities increased $34.6 million or 1%. Average net loans were relatively flat for the quarter, increasing $8.9 million or less than 1%. Virtually offsetting the decreases was a decline of 14 basis points in the average cost of funds. In addition, loan accretion on acquired loans increased $1.4 million. Loan accretion on acquired loans was $8.6 million and $7.2 million for the fourth quarter and third quarter of 2019, respectively. The net interest margin of 3.29% for the fourth quarter of 2019 increased 2 basis points from the net interest margin of 3.27% for the third quarter of 2019.
For the quarters ended December 31, 2019 and 2018, the provision for loan losses was $5.9 million and $5.8 million, respectively, while the provision for the year of 2019 was $21.3 million as compared to $22.0 million for the year of 2018. Net charge-offs were $5.9 million and $21.0 million for the fourth quarter and year of 2019, respectively, as compared to $6.1 million and $21.9 million for the same time periods in 2018. Annualized net charge-offs as a percentage of average loans were 0.17% and 0.16% for the fourth quarter and year of 2019, respectively. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2019 increased $834 thousand while net charge-offs increased $1.6 million from the third quarter of 2019.
Noninterest income for the fourth quarter of 2019 was $37.2 million, which was an increase of $7.4 million or 25% from the fourth quarter of 2018. The increase was due mainly to an increase of $6.0 million in income from mortgage banking activities due to increased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason Mortgage, LLC (George Mason). In addition, United recognized a net gain of $109 thousand on investment securities’ activity in the fourth quarter of 2019 as compared to a net loss of $1.9 million in the fourth quarter of 2018. Also, income from bank-owned life insurance policies increased $1.6 million from the fourth quarter of 2018 due to the recognition of death benefits of $1.7 million in the fourth quarter of 2019. Partially offsetting these increases was a net gain of $2.8 million on the sale of bank premises United recorded in the fourth quarter of 2018.
Noninterest income for the year of 2019 was $150.5 million, which was an increase of $21.8 million or 17% from the year of 2018. The increase was due mainly to an increase of $18.8 million in income from mortgage banking activities primarily due to increased loan originations and a higher realized gain on sale margin by George Mason. In addition, fees from trust services increased $943 thousand due to an increase in managed assets, fees from brokerage services increased $789 thousand due to increased volume and income from bank-owned life insurance increased $2.3 million due to the recognition of $2.3 million in death benefits for the year of 2019. Also, United recognized a net gain of $175 thousand on investment securities’ activity in the year of 2019 as compared to a net loss of $2.6 million for the year of 2018. Partially offsetting these increases was the previously mentioned net gain of $2.8 million on the sale of bank premises in the year of 2018.
On a linked-quarter basis, noninterest income for the fourth quarter of 2019 decreased $5.0 million or 12% from the third quarter of 2019. This decrease was due mainly to a decrease of $6.5 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market as a result of a typical seasonal slowdown. Partially offsetting this decrease was an increase of $1.6 million in income from bank-owned life insurance policies due to the previously mentioned recognition of death benefits of $1.7 million in the fourth quarter of 2019.
Noninterest expense for the fourth quarter of 2019 was $96.9 million, an increase of $5.9 million or 6% from the fourth quarter of 2018 due mainly to an increase of $5.2 million in employee compensation expense. The increase was due primarily to an increase in employee commissions expense related to the increase in production and sales of mortgage loans at George Mason. In addition, other expense increased $2.6 million due to an increase of $1.2 million in donations and merger expenses of $589 thousand related to the announced acquisition of Carolina Financial Corporation. Partially offsetting these increases was a decline of $2.2 million in Federal Deposit Insurance Corporation (FDIC) assessment fees.
Noninterest expense for the year of 2019 was $382.7 million, an increase of $14.5 million or 4% from the year of 2018. In particular, employee compensation expense increased $9.5 million due mainly to increased salaries and commissions expense primarily related to the increase in production and sales of mortgage loans at George Mason. In addition, United recognized prepayment penalties on FHLB advances of $5.1 million in the second quarter of 2019 and other expense increased $5.6 million due mainly to an increase of $2.8 million on the amortization of income tax credits and an increase of $1.1 million in donations. The amortization of tax credits lowered the effective tax rate. Partially offsetting these increases were decreases of $3.4 million in FDIC insurance expense resulting from a small bank assessment credit and lower assessment fees, $1.6 million in net occupancy expense due mainly to a decline in building rental expense and $1.6 million in data processing fees due to lower fees under a new contract.
On a linked-quarter basis, noninterest expense for the fourth quarter of 2019 was relatively flat from the third quarter of 2019, increasing $766 thousand or less than 1%. An increase of $2.2 million in other expense due to an increase of $1.2 million in donations and the merger expenses of $589 thousand was virtually offset by a decline of $1.9 million in employee compensation due mainly to a decrease in commissions and incentives expense for George Mason.
For the fourth quarter and year of 2019, income tax expense was $12.5 million and $64.3 million, respectively, as compared to $15.8 million and $70.8 million, respectively, in the fourth quarter and year of 2018. The decreases in 2019 were mainly due to a decline in the effective tax rate as a result of the increased benefit from income tax credits. On a linked-quarter basis, income tax expense for the fourth quarter of 2019 decreased $4.5 million from the third quarter of 2019 due to lower earnings and a lower effective tax rate. United’s effective tax rate was 16.5% for the fourth quarter of 2019, 20.5% for the third quarter of 2019 and 19.8% for the fourth quarter of 2018. For the year of 2019 and 2018, United's effective tax rate was 19.8% and 21.7%, respectively.
United’s asset quality continues to be sound. At December 31, 2019, nonperforming loans were $131.1 million, or 0.96% of loans, net of unearned income, a decline from nonperforming loans of $142.8 million, or 1.06% of loans, net of unearned income, at December 31, 2018. As of December 31, 2019, the allowance for loan losses was $77.1 million or 0.56% of loans, net of unearned income, which was comparable to $76.7 million or 0.57% of loans, net of unearned income, at December 31, 2018. Total nonperforming assets of $146.6 million, including OREO of $15.5 million at December 31, 2019, represented 0.75% of total assets as compared to nonperforming assets of $159.7 million or 0.83% at December 31, 2018.
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.7% at December 31, 2019 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.5%, 12.5% and 10.5%, respectively. 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 fourth quarter of 2019, United announced that it entered into a definitive merger agreement with Carolina Financial Corporation. Under the merger agreement, United will acquire 100% of the outstanding shares of Carolina Financial Corporation in exchange for common shares of United. The combined organization will be approximately $25 billion in assets with more than 200 locations in some of the most desirable banking markets in the nation. United recently filed a Form S-4 with the Securities and Exchange Commission regarding the proposed merger. United expects the merger to close during the second quarter of 2020.
As of December 31, 2019, United had consolidated assets of approximately $19.7 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank which comprises 138 full-service banking offices and 15 George Mason Mortgage, LLC locations, is located throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. 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, 2019 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, 2019 and will adjust amounts preliminarily reported, if necessary.
Use of non-GAAP Financial Measures
This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.
Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.
Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.
Tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible common equity can thus be considered the most conservative valuation of the company. Tangible common equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of common equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.
Forward-Looking Statements
This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
FINANCIAL SUMMARY
(In Thousands Except for Per Share Data)
Three Months Ended
Year Ended
December 31
2019
December 31
2018
December 31
2019
December 31
2018
EARNINGS SUMMARY:
Interest income
$
183,869
$
187,500
$
762,562
$
717,715
Interest expense
42,586
40,795
184,640
129,070
Net interest income
141,283
146,705
577,922
588,645
Provision for loan losses
5,867
5,823
21,313
22,013
Noninterest income
37,242
29,827
150,484
128,712
Noninterest expenses
96,900
91,002
382,654
368,179
Income before income taxes
75,758
79,707
324,439
327,165
Income taxes
12,473
15,757
64,340
70,823
Net income
$
63,285
$
63,950
$
260,099
$
256,342
PER COMMON SHARE:
Net income:
Basic
$
0.62
$
0.62
$
2.55
$
2.46
Diluted
0.62
0.62
2.55
2.45
Cash dividends
$
0.35
$
0.34
1.37
1.36
Book value
33.12
31.78
Closing market price
$
38.66
$
31.11
Common shares outstanding:
Actual at period end, net of treasury shares
101,553,671
102,323,488
Weighted average- basic
101,250,489
102,929,563
101,585,599
104,015,976
Weighted average- diluted
101,537,640
103,164,267
101,852,577
104,298,825
FINANCIAL RATIOS:
Return on average assets
1.29%
1.33%
1.34%
1.36%
Return on average shareholders’ equity
7.42%
7.77%
7.80%
7.84%
Return on average tangible equity (non-GAAP) (1)
13.38%
14.52%
14.26%
14.65%
Average equity to average assets
17.39%
17.10%
17.13%
17.34%
Net interest margin
3.29%
3.50%
3.39%
3.58%
December 31
2019
December 31
2018
December 31
2017
September 30
2019
PERIOD END BALANCES:
Assets
$
19,662,324
$
19,250,498
$
19,058,959
$
19,751,461
Earning assets
17,344,638
16,971,602
16,741,819
17,389,984
Loans, net of unearned income
13,712,129
13,422,222
13,011,421
13,633,427
Loans held for sale
387,514
249,846
265,955
412,194
Investment securities
2,669,797
2,543,727
2,071,645
2,673,312
Total deposits
13,852,421
13,994,749
13,830,591
14,095,411
Shareholders’ equity
3,363,833
3,251,624
3,240,530
3,354,342
Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Statements of Income
Three Months Ended
December
December
September
June
March
2019
2018
2019
2019
2019
Interest & Loan Fees Income (GAAP)
$
183,869
$
187,500
$
190,351
$
199,245
$
189,097
Tax equivalent adjustment
851
1,060
914
977
993
Interest & Fees Income (FTE) (non-GAAP)
184,720
188,560
191,265
200,222
190,090
Interest Expense
42,586
40,795
48,433
48,692
44,929
Net Interest Income (FTE) (non-GAAP)
142,134
147,765
142,832
151,530
145,161
Provision for Loan Losses
5,867
5,823
5,033
5,417
4,996
Non-Interest Income:
Fees from trust services
3,597
3,385
3,574
3,438
3,264
Fees from brokerage services
2,468
2,383
2,378
2,766
2,524
Fees from deposit services
8,549
8,650
8,702
8,464
8,053
Bankcard fees and merchant discounts
1,154
784
1,262
1,102
1,156
Other charges, commissions, and fees
576
588
568
576
521
Income from bank owned life insurance
2,906
1,269
1,280
1,326
1,827
Income from mortgage banking activities
17,547
11,570
24,019
21,704
13,681
Net gain on the sale of bank premises
0
2,763
0
0
0
Net gains (losses) on investment securities
109
(1,926)
116
109
(159)
Other income
336
361
325
310
356
Total Non-Interest Income
37,242
29,827
42,224
39,795
31,223
Non-Interest Expense:
Employee compensation
44,399
39,200
46,313
44,301
38,949
Employee benefits
9,121
8,658
8,615
8,578
9,431
Net occupancy
8,734
8,686
8,698
8,667
8,751
Data processing
5,727
6,065
5,776
5,567
5,162
Amortization of intangibles
1,754
2,010
1,754
1,754
1,754
OREO expense
1,450
1,021
1,837
633
1,416
Equipment expense
3,522
3,518
3,698
3,675
3,315
FDIC expense
1,005
3,244
465
3,300
3,300
Prepayment penalties on FHLB borrowings
0
0
0
5,105
0
Other expense
21,188
18,600
18,978
18,615
17,347
Total Non-Interest Expense
96,900
91,002
96,134
100,195
89,425
Income Before Income Taxes (FTE) (non-GAAP)
76,609
80,767
83,889
85,713
81,963
Tax equivalent adjustment
851
1,060
914
977
993
Income Before Income Taxes (GAAP)
75,758
79,707
82,975
84,736
80,970
Taxes
12,473
15,757
17,010
17,529
17,328
Net Income
$
63,285
$
63,950
$
65,965
$
67,207
$
63,642
MEMO: Effective Tax Rate
16.46%
19.77%
20.50%
20.69%
21.40%
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Statements of Income
Year Ended
December
December
December
December
2019
2018
2017
2016
Interest & Loan Fees Income (GAAP)
$
762,562
$
717,715
$
623,806
$
470,341
Tax equivalent adjustment
3,735
4,328
8,429
6,121
Interest & Fees Income (FTE) (non-GAAP)
766,297
722,043
632,235
476,462
Interest Expense
184,640
129,070
74,809
45,010
Net Interest Income (FTE) (non-GAAP)
581,657
592,973
557,426
431,452
Provision for Loan Losses
21,313
22,013
28,406
24,509
Non-Interest Income:
Fees from trust services
13,873
12,930
11,801
12,025
Fees from brokerage services
10,136
9,347
7,730
7,012
Fees from deposit services
33,768
33,973
33,622
32,858
Bankcard fees and merchant discounts
4,674
5,168
4,795
5,215
Other charges, commissions, and fees
2,241
2,228
2,057
2,059
Income from bank owned life insurance
7,339
5,045
5,110
5,794
Income from mortgage banking activities
76,951
58,109
58,907
3,450
Net gain on the sale of bank premises
0
2,763
0
0
Net gains (losses) on investment securities
175
(2,618)
5,584
280
Other income
1,327
1,767
2,039
1,339
Total Non-Interest Income
150,484
128,712
131,645
70,032
Non-Interest Expense:
Employee compensation
173,962
164,468
166,393
95,655
Employee benefits
35,745
36,172
34,997
26,591
Net occupancy
34,850
36,462
39,067
27,529
Data processing
22,232
23,800
21,019
15,280
Amortization of intangibles
7,016
8,039
7,772
3,944
OREO expense
5,336
3,444
6,003
5,844
Equipment expense
14,210
13,846
10,528
8,622
FDIC expense
8,070
11,464
7,051
8,548
Prepayment penalties on FHLB borrowings
5,105
0
0
0
Other expense
76,128
70,484
74,579
56,183
Total Non-Interest Expense
382,654
368,179
367,409
248,196
Income Before Income Taxes (FTE) (non-GAAP)
328,174
331,493
293,256
228,779
Tax equivalent adjustment
3,735
4,328
8,429
6,121
Income Before Income Taxes (GAAP)
324,439
327,165
284,827
222,658
Taxes
64,340
70,823
134,246
75,575
Net Income
$
260,099
$
256,342
$
150,581
$
147,083
MEMO: Effective Tax Rate
19.83%
21.65%
47.13%
33.94%
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 31
December 31
2019
2018
December 31
December 31
December 31
Q-T-D Average
Q-T-D Average
2019
2018
2017
Cash & Cash Equivalents
$
777,007
$
1,025,695
$
837,493
$
1,020,396
$
1,666,167
Securities Available for Sale
2,463,101
2,287,480
2,437,296
2,337,039
1,888,756
Securities Held to Maturity
1,463
20,017
1,446
19,999
20,428
Equity Securities
8,984
9,880
8,894
9,734
0
Other Investment Securities
210,855
167,953
222,161
176,955
162,461
Total Securities
2,684,403
2,485,330
2,669,797
2,543,727
2,071,645
Total Cash and Securities
3,461,410
3,511,025
3,507,290
3,564,123
3,737,812
Loans Held for Sale
368,966
226,028
387,514
249,846
265,955
Commercial Loans
9,347,641
9,433,610
9,399,170
9,447,420
9,822,027
Mortgage Loans
3,052,045
2,906,314
3,107,721
2,979,787
2,443,780
Consumer Loans
1,195,999
994,233
1,206,657
1,002,325
761,530
Gross Loans
13,595,685
13,334,157
13,713,548
13,429,532
13,027,337
Unearned Income
(2,823)
(9,290)
(1,419)
(7,310)
(15,916)
Loans, Net of Unearned Income
13,592,862
13,324,867
13,712,129
13,422,222
13,011,421
Allowance for Loan Losses
(77,073)
(76,933)
(77,057)
(76,703)
(76,627)
Goodwill
1,478,014
1,478,014
1,478,014
1,478,014
1,478,380
Other Intangibles
30,837
37,989
29,931
36,947
44,986
Total Intangibles
1,508,851
1,516,003
1,507,945
1,514,961
1,523,366
Operating Lease Right-of-Use Asset
59,031
---
57,783
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---
Other Real Estate Owned
18,472
18,428
15,515
16,865
24,348
Other Assets
532,561
560,230
551,205
559,184
572,684
Total Assets
$
19,465,080
$
19,079,648
$
19,662,324
$
19,250,498
$
19,058,959
MEMO: Interest-earning Assets
$
17,165,071
$
16,792,108
$
17,344,638
$
16,971,602
$
16,741,819
Interest-bearing Deposits
$
9,281,403
$
9,615,474
$
9,231,059
$
9,577,934
$
9,535,904
Noninterest-bearing Deposits
4,647,907
4,418,443
4,621,362
4,416,815
4,294,687
Total Deposits
13,929,310
14,033,917
13,852,421
13,994,749
13,830,591
Short-term Borrowings
132,621
193,971
374,654
351,327
477,587
Long-term Borrowings
1,836,423
1,481,732
1,838,029
1,499,103
1,363,977
Total Borrowings
1,969,044
1,675,703
2,212,683
1,850,430
1,841,564
Operating Lease Liability
62,662
---
61,342
---
---
Other Liabilities
118,702
106,671
172,045
153,695
146,274
Total Liabilities
16,079,718
15,816,291
16,298,491
15,998,874
15,818,429
Preferred Equity
---
---
---
---
---
Common Equity
3,385,362
3,263,357
3,363,833
3,251,624
3,240,530
Total Shareholders' Equity
3,385,362
3,263,357
3,363,833
3,251,624
3,240,530
Total Liabilities & Equity
$
19,465,080
$
19,079,648
$
19,662,324
$
19,250,498
$
19,058,959
MEMO: Interest-bearing Liabilities
$
11,250,447
$
11,291,177
$
11,443,742
$
11,428,364
$
11,377,468
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
December
December
September
June
March
Quarterly Share Data:
2019
2018
2019
2019
2019
Earnings Per Share:
Basic
$
0.62
$
0.62
$
0.65
$
0.66
$
0.62
Diluted
$
0.62
$
0.62
$
0.65
$
0.66
$
0.62
Common Dividend Declared Per Share
$
0.35
$
0.34
$
0.34
$
0.34
$
0.34
High Common Stock Price
$
40.70
$
36.84
$
39.98
$
39.88
$
39.14
Low Common Stock Price
$
36.09
$
29.13
$
34.77
$
35.42
$
30.67
Average Shares Outstanding (Net of Treasury Stock):
Basic
101,250,489
102,929,563
101,432,243
101,773,643
101,894,786
Diluted
101,537,640
103,164,267
101,711,740
102,047,845
102,162,704
Common Dividends
$
35,543
$
34,975
$
34,518
$
34,688
$
34,759
Dividend Payout Ratio
56.16%
54.69%
52.33%
51.61%
54.62%
Year Ended
December
December
December
December
YTD Share Data:
2019
2018
2017
2016
Earnings Per Share:
Basic
$
2.55
$
2.46
$
1.54
$
2.00
Diluted
$
2.55
$
2.45
$
1.54
$
1.99
Common Dividend Declared Per Share
$
1.37
$
1.36
$
1.33
$
1.32
Average Shares Outstanding (Net of Treasury Stock):
Basic
101,585,599
104,015,976
97,502,633
73,531,992
Diluted
101,852,577
104,298,825
97,890,078
73,893,127
Common Dividends
$
139,508
$
141,610
$
131,755
$
98,696
Dividend Payout Ratio
53.64%
55.24%
87.50%
67.10%
EOP Employees (full-time equivalent)
2,204
2,230
2,381
1,701
Three Months Ended
December
December
September
June
March
EOP Share Data:
2019
2018
2019
2019
2019
Book Value Per Share
$
33.12
$
31.78
$
33.03
$
32.70
$
32.19
Tangible Book Value Per Share (1)
$
18.27
$
16.97
$
18.16
$
17.87
$
17.37
52-week High Common Stock Price
$
40.70
$
39.95
$
39.98
$
39.95
$
39.95
Date
11/05/19
08/21/18
09/13/19
08/21/18
08/21/18
52-week Low Common Stock Price
$
30.67
$
29.13
$
30.67
$
29.13
$
29.13
Date
01/02/19
12/27/18
01/02/19
12/27/18
12/27/18
EOP Shares Outstanding (Net of Treasury Stock):
101,553,671
102,323,488
101,555,696
101,963,030
102,118,029
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
3,363,833
$
3,251,624
$
3,354,342
$
3,333,858
$
3,286,891
Less: Total Intangibles
(1,507,945)
(1,514,961)
(1,509,699)
(1,511,453)
(1,513,207)
Tangible Equity (non-GAAP)
$
1,855,888
$
1,736,663
$
1,844,643
$
1,822,405
$
1,773,684
÷ EOP Shares Outstanding (Net of Treasury Stock)
101,553,671
102,323,488
101,555,696
101,963,030
102,118,029
Tangible Book Value Per Share (non-GAAP)
$
18.27
$
16.97
$
18.16
$
17.87
$
17.37
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
December
December
September
June
March
2019
2018
2019
2019
2019
Selected Yields and Net Interest Margin:
Net Loans
4.65%
4.86%
4.75%
5.10%
4.91%
Investment Securities
2.74%
2.92%
2.90%
2.90%
2.93%
Money Market Investments/FFS
2.57%
2.57%
2.98%
2.81%
3.20%
Average Earning Assets Yield
4.28%
4.46%
4.38%
4.67%
4.54%
Interest-bearing Deposits
1.33%
1.25%
1.49%
1.46%
1.37%
Short-term Borrowings
1.52%
1.52%
1.78%
1.79%
1.61%
Long-term Borrowings
2.35%
2.58%
2.44%
2.70%
2.77%
Average Liability Costs
1.50%
1.43%
1.64%
1.66%
1.58%
Net Interest Spread
2.78%
3.03%
2.74%
3.01%
2.96%
Net Interest Margin
3.29%
3.50%
3.27%
3.53%
3.46%
Selected Financial Ratios:
Return on Average Common Equity
7.42%
7.77%
7.79%
8.12%
7.88%
Return on Average Assets
1.29%
1.33%
1.33%
1.38%
1.34%
Return on Average Tangible Equity (non-GAAP) (1)
13.38%
14.52%
14.16%
14.90%
14.64%
Efficiency Ratio
54.28%
51.55%
52.21%
52.64%
50.99%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
63,285
$
63,950
$
65,965
$
67,207
$
63,642
(b) Number of days
92
92
92
91
90
Average Total Shareholders' Equity (GAAP)
$
3,385,362
$
3,263,357
$
3,359,437
$
3,220,987
$
3,276,822
Less: Average Total Intangibles
(1,508,851)
(1,516,003)
(1,510,653)
(1,512,400)
(1,514,168)
(c) Average Tangible Equity (non-GAAP)
$
1,876,511
$
1,747,354
$
1,848,784
$
1,808,587
$
1,762,654
Return on Tangible Equity (non-GAAP)
[(a) / (b)] x 365 / (c)
13.38%
14.52%
14.16%
14.90%
14.64%
Year Ended
December
December
December
December
2019
2018
2017
2016
Selected Yields and Net Interest Margin:
Net Loans
4.85%
4.77%
4.56%
4.38%
Investment Securities
2.86%
2.73%
2.63%
2.89%
Money Market Investments/FFS
2.91%
2.29%
1.23%
0.51%
Average Earning Assets Yield
4.47%
4.36%
4.07%
4.00%
Interest-bearing Deposits
1.41%
0.97%
0.54%
0.42%
Short-term Borrowings
1.67%
1.00%
0.51%
0.39%
Long-term Borrowings
2.56%
2.34%
1.80%
1.28%
Average Liability Costs
1.60%
1.15%
0.69%
0.53%
Net Interest Spread
2.87%
3.21%
3.38%
3.47%
Net Interest Margin
3.39%
3.58%
3.58%
3.62%
Note:
(1) Includes allowance for loan losses and reserve for lending-related commitments
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Year Ended
December
December
December
December
2019
2018
2017
2016
Selected Financial Ratios:
Return on Average Common Equity
7.80%
7.84%
5.09%
7.67%
Return on Average Assets
1.34%
1.36%
0.85%
1.10%
Return on Average Tangible Equity (non-GAAP) (1)
14.26%
14.65%
9.18%
13.39%
Loan / Deposit Ratio
98.99%
95.91%
94.08%
95.78%
Allowance for Loan Losses/ Loans, Net of Unearned Income
0.56%
0.57%
0.59%
0.70%
Allowance for Credit Losses (2)/ Loans, Net of Unearned Income
0.57%
0.58%
0.59%
0.71%
Nonaccrual Loans / Loans, Net of Unearned Income
0.46%
0.51%
0.84%
0.81%
90-Day Past Due Loans/ Loans, Net of Unearned Income
0.07%
0.11%
0.08%
0.08%
Non-performing Loans/ Loans, Net of Unearned Income
0.96%
1.06%
1.30%
1.10%
Non-performing Assets/ Total Assets
0.75%
0.83%
1.01%
1.00%
Primary Capital Ratio
17.44%
17.23%
17.34%
15.84%
Shareholders' Equity Ratio
17.11%
16.89%
17.00%
15.41%
Price / Book Ratio
1.17
x
0.98
x
1.13
x
1.68
x
Price / Earnings Ratio
15.14
x
12.71
x
22.59
x
23.24
x
Efficiency Ratio
52.53%
51.32%
53.98%
50.10%
Notes:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
260,099
$
256,342
$
150,581
$
147,083
Average Total Shareholders' Equity (GAAP)
$
3,336,075
$
3,268,944
$
2,959,293
$
1,918,887
Less: Average Total Intangibles
(1,511,501)
(1,519,174)
(1,319,109)
(820,558)
(b) Average Tangible Equity (non-GAAP)
$
1,824,574
$
1,749,770
$
1,640,184
$
1,098,329
Return on Tangible Equity (non-GAAP) [(a) / (b)]
14.26%
14.65%
9.18%
13.39%
(2) Includes allowance for loan losses and reserve for lending-related commitments
Three Months Ended
December
December
September
June
March
2019
2018
2019
2019
2019
Mortgage Banking Data – George Mason:
Applications
$
896,000
$
714,000
$
1,290,000
$
1,278,000
$
866,000
Loans originated
777,312
530,088
907,896
801,926
454,588
Loans sold
$
800,400
$
514,294
$
865,873
$
680,986
$
457,192
Purchase money % of loans closed
66%
86%
63%
81%
86%
Realized gain on sales and fees as a % of loans sold
2.84%
2.82%
2.74%
2.89%
3.07%
Net interest income
$
547
$
287
$
203
$
111
$
55
Other income
19,946
13,726
24,331
23,501
16,106
Other expense
18,419
15,066
20,256
18,771
14,842
Income taxes (benefit)
192
(121)
877
1,004
282
Net income (loss)
$
1,882
$
(932)
$
3,401
$
3,837
$
1,037
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Year Ended
December
December
Mortgage Banking Data – George Mason:
2019
2018
Applications
$
4,330,000
$
3,912,000
Loans originated
2,941,722
2,619,454
Loans sold
$
2,804,451
$
2,608,242
Purchase money % of loans closed
72%
83%
Realized gain on sales and fees as a % of loans sold
2.86%
2.72%
Net interest income
$
916
$
1,315
Other income
83,884
68,555
Other expense
72,288
72,632
Income taxes (benefit)
2,355
(505)
Net income (loss)
$
10,157
$
(2,257)
December
December
September
June
March
Period End Mortgage Banking Data – George Mason:
2019
2018
2019
2019
2019
Locked pipeline
$
143,465
$
122,677
$
262,313
$
305,843
$
223,657
December
December
September
June
March
Asset Quality Data:
2019
2018
2019
2019
2019
EOP Non-Accrual Loans
$
63,209
$
68,544
$
69,884
$
71,123
$
63,402
EOP 90-Day Past Due Loans
9,494
14,851
9,840
12,729
15,572
EOP Restructured Loans (1) (2)
58,369
59,425
60,559
58,750
56,778
Total EOP Non-performing Loans
$
131,072
$
142,820
$
140,283
$
142,602
$
135,752
EOP Other Real Estate & Assets Owned
15,515
16,865
18,367
14,469
17,465
Total EOP Non-performing Assets
$
146,587
$
159,685
$
158,650
$
157,071
$
153,217
Notes:(1)
Restructured loans with an aggregate balance of $48,387, $50,757, $48,586, $47,459 and $48,899 at December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
(2)
Restructured loans with an aggregate balance of $265 and $690 at March 31, 2019 and December 31, 2018, respectively, were 90 days or more past due, but are not included in “EOP 90-Day Past Due Loans.”
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
December
December
December
Allowance for Loan Losses:
2019
2018
2019
2018
2017
Beginning Balance
$
77,098
$
76,941
$
76,703
$
76,627
$
72,771
Provision for Loan Losses
5,867
5,823
21,313
22,013
28,406
82,965
82,764
98,016
98,640
101,177
Gross Charge-offs
(9,704)
(7,992)
(29,110)
(28,606)
(32,863)
Recoveries
3,796
1,931
8,151
6,669
8,313
Net Charge-offs
(5,908)
(6,061)
(20,959)
(21,937)
(24,550)
Ending Balance
$
77,057
$
76,703
$
77,057
$
76,703
$
76,627
Reserve for lending-related commitments
1,733
1,389
1,733
1,389
679
Allowance for Credit Losses (1)
$
78,790
$
78,092
$
78,790
$
78,092
$
77,306
Note: (1) Includes allowance for loan losses and reserve for lending-related commitments.
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