United Bankshares, Inc. Announces Earnings for the Second Quarter and First Half of 2022
United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the second quarter of 2022 of $95.6 million, or $0.71 per diluted share, as compared to earnings of $81.7 million, or $0.60 per diluted share, for the first quarter of 2022. The quarter was highlighted by continued loan growth, net interest margin expansion, and strong credit quality metrics.
Annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, for the second quarter and first half of 2022 was 15% and 13%, respectively. Second quarter 2022 net interest margin of 3.38% increased 39 basis points from the first quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.37% at June 30, 2022.
Second quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.32%, 8.33% and 14.23%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.13%, 6.96% and 11.63%, respectively, for the first quarter of 2022.
“During the second quarter, we continued our strong momentum from the beginning of the year and are well positioned for the second half of 2022,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We had meaningful net interest margin expansion and continue to experience promising loan growth in our markets. We remain well capitalized with solid asset quality, have sound liquidity levels, and maintain our longstanding commitments to strong risk management practices, credit underwriting discipline and meeting our customers’ needs.”
Second quarter of 2022 compared to the first quarter of 2022
Net interest income for the second quarter of 2022 increased $23.4 million, or 12%, from the first quarter 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 second quarter of 2022 also increased $23.4 million, or 12%, from the first quarter of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. The interest rate spread of 3.24% for the second quarter of 2022 increased 38 basis points from the first quarter of 2022 due to a 42 basis point increase in the average yield on earning assets partially offset by a 4 basis point increase in the average cost of funds. A decrease in average earning assets of $426.0 million, or 2%, from the first quarter of 2022, driven by a decrease of $1.3 billion in short-term investments, was partially offset by increases in higher yielding average net loans and loans held for sale of $489.9 million and average investment securities of $375.8 million. Acquired loan accretion income increased $1.3 million to $5.4 million for the second quarter of 2022. Net PPP loan fee income decreased $542 thousand to $3.6 million for the second quarter of 2022. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 39 basis points from the net interest margin of 2.99% for the first quarter of 2022.
The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $3.4 million for the first quarter of 2022. The net benefit in the second quarter reflects continued strong performance trends within the loan portfolio partially offset by loan growth and the impact of reasonable and supportable forecasts of future macroeconomic conditions.
Noninterest income for the second quarter of 2022 decreased $2.4 million, or 5%, from the first quarter of 2022. The decrease in noninterest income was primarily due to a decrease of $6.8 million in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. Income from bank-owned life insurance (“BOLI”) increased $1.9 million from the first quarter of 2022 to $4.1 million primarily due to the recognition of death benefits.
Noninterest expense for the second quarter of 2022 increased $2.0 million, or 1%, from the first quarter of 2022. The increase in noninterest expense resulted from higher amounts of certain general operating expenses including an increase in the expense for reserve for unfunded loan commitments of $662 thousand.
For the second quarter of 2022, income tax expense was $23.5 million as compared to $20.1 million for the first quarter of 2022. The increase of $3.4 million was due to higher earnings. United’s effective tax rate was 19.8% for both the second and first quarters of 2022.
Second quarter of 2022 compared to the second quarter of 2021
Earnings for the second quarter of 2022 were $95.6 million, or $0.71 per diluted share, as compared to earnings of $94.8 million, or $0.73 per diluted share, for the second quarter of 2021.
Net interest income for the second quarter of 2022 increased $28.4 million, or 15%, from the second quarter of 2021. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the second quarter of 2022 also increased $28.4 million, or 15%, from the second quarter of 2021. United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”) on December 3, 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of higher average earning assets, driven by the Community Bankers Trust acquisition, the impact of rising market interest rates on earning assets and a change in the asset mix to higher earning assets. These increases were partially offset by lower acquired loan accretion income, lower PPP loan fee income and higher average interest-bearing deposit balances as a result of the Community Bankers Trust acquisition. Average earning assets for the second quarter of 2022 increased $1.7 billion, or 7%, from the second quarter of 2021 due to a $1.6 billion increase in average investment securities and a $1.2 billion increase in average net loans and loans held for sale partially offset by a $1.2 billion decrease in average short-term investments. The interest rate spread for the second quarter of 2022 increased 26 basis points from the second quarter of 2021 to 3.24% due to a 21 basis point increase in the average yield on earning assets and a 5 basis point decrease in the average cost of funds. Average interest-bearing deposits for the second quarter of 2022 increased $917.1 million, or 7%, from the second quarter of 2021; however, the yield on interest-bearing deposits decreased 5 basis points from the second quarter of 2021. Acquired loan accretion income was $5.4 million and $9.7 million for the second quarter of 2022 and 2021, respectively, a decrease of $4.3 million. Net PPP loan fee income was $3.6 million and $9.0 million for the second quarter of 2022 and 2021, respectively, a decrease of $5.4 million. The net interest margin of 3.38% for the second quarter of 2022 was an increase of 24 basis points from the net interest margin of 3.14% for the second quarter of 2021.
The provision for credit losses was a net benefit of $1.8 million for the second quarter of 2022 as compared to a net benefit of $8.9 million for the second quarter of 2021.
Noninterest income for the second quarter of 2022 was $43.6 million, which was a decrease of $19.3 million, or 31%, from the second quarter of 2021. The decrease in noninterest income was driven by a $24.5 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. BOLI income for the second quarter of 2022 was $4.1 million, an increase of $2.5 million from the second quarter of 2021. Fees from deposit services for the second quarter of 2022 were $10.8 million, an increase of $1.4 million from the second quarter of 2021.
Noninterest expense for the second quarter of 2022 was $141.2 million, an increase of $2.2 million, or 2%, from the second quarter of 2021 primarily due to a $5.0 million increase in the expense for reserve for unfunded loan commitments and a $3.8 million increase in other noninterest expense from higher amounts of certain general operating expenses. These increases in noninterest expense were partially offset by a $5.9 million decrease in employee compensation primarily due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition.
For the second quarter of 2022, income tax expense was $23.5 million as compared to $24.5 million for the second quarter of 2021. The decrease of $924 thousand was primarily due to a lower effective tax rate. United’s effective tax rate was 19.8% for the second quarter of 2022 and 20.5% for the second quarter of 2021.
First half of 2022 compared to the first half of 2021
Earnings for the first six months of 2022 were $177.3 million, or $1.30 per diluted share, as compared to earnings of $201.7 million, or $1.56 per diluted share, for the first six months of 2021.
Net interest income for the first six months of 2022 increased $28.9 million, or 8%, from the first six months of 2021. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the first six months of 2022 increased $29.0 million, or 8%, from the first six months of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets from the Community Bankers Trust acquisition and organic growth, the impact of rising market interest rates on earning assets and due to lower interest expense on deposits. These increases were partially offset by lower PPP loan fee income and lower acquired loan accretion income. Average earning assets for the first six months of 2022 increased $2.1 billion, or 9%, from the first six months of 2021 due to a $1.6 billion increase in average investment securities and a $763.8 million increase in average net loans and loans held for sale partially offset by a $219.9 million decrease in average short-term investments. The interest rate spread for the first six months of 2022 decreased 1 basis point from the first six months of 2021 due to a 9 basis point decrease in the average yield on earning assets partially offset by an 8 basis point decrease in the average cost of funds. Net PPP loan fee income was $7.7 million and $20.3 million for the first half of 2022 and 2021, respectively, a decrease of $12.6 million. Acquired loan accretion income was $9.5 million and $19.5 million for the first half of 2022 and 2021, respectively, a decrease of $10.0 million. The net interest margin of 3.18% for the first six months of 2022 was a decrease of 4 basis points from the net interest margin of 3.22% for the first six months of 2021.
The provision for credit losses was a net benefit of $5.2 million for the first six months 2022 as compared to a net benefit of $8.7 million for the first six months of 2021.
Noninterest income for the first six months of 2022 was $89.6 million, which was a decrease of $65.8 million, or 42%, from the first six months of 2021. The decrease was driven by a $70.7 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume driven by the rising rate environment and a lower margin on loans sold in the secondary market. BOLI income for the first six months of 2022 was $6.3 million, an increase of $3.3 million from the first six months of 2021. Fees from deposit services for the first six months of 2022 were $21.0 million, an increase of $2.7 million from the first six months of 2021.
Noninterest expense for the first six months of 2022 was $280.3 million, a decrease of $7.6 million, or 3%, from the first six months of 2021 driven by decreases in employee compensation of $15.7 million, employee benefits of $5.0 million, real estate owned (“OREO”) expense of $3.8 million and mortgage loan servicing expense and impairment of $3.4 million partially offset by an increase in the expense for reserve for unfunded loan commitments of $9.5 million. The decrease in employee compensation was due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. Employee benefits decreased primarily due to changes in deferred compensation plans resulting from market fluctuations. The decrease in OREO expense was primarily due to fewer declines in the fair value of OREO properties. The decrease in mortgage loan servicing expense and impairment was due to lower amortization of mortgage servicing rights (“MSR”) and a recovery of the MSR valuation allowance of $883 thousand during the first six months of 2022 as compared to a MSR impairment of $250 thousand during the first six months of 2021.
For the first six months of 2022, income tax expense was $43.6 million as compared to $52.0 million for the first six months of 2021 primarily due to lower earnings and a lower effective tax rate. United’s effective tax rate was 19.8% for the first six months of 2022 and 20.5% for the first six months of 2021.
Credit Quality
United’s asset quality continues to be sound. At June 30, 2022, non-performing loans were $70.3 million, or 0.37% of loans & leases, net of unearned income, down from $90.8 million, or 0.50% of loans & leases, net of unearned income, at December 31, 2021. Total non-performing assets of $84.2 million, including OREO of $13.8 million at June 30, 2022, represented 0.29% of total assets as compared to non-performing assets of $105.6 million, including OREO of $14.8 million, or 0.36% of total assets at December 31, 2021.
As of June 30, 2022, the allowance for loan & lease losses was $213.7 million, or 1.13% of loans & leases, net of unearned income, as compared to $216.0 million, or 1.20% of loans & leases, net of unearned income, at December 31, 2021. Net recoveries were $941 thousand and $2.9 million for the second quarter and first half of 2022, respectively. Net charge-offs were $5.2 million and $9.8 million for the second quarter and first half of 2021, respectively. Annualized net recoveries as a percentage of average loans & leases, net of unearned income were (0.02)% and (0.03)% for the second quarter and first half of 2022, respectively. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.10% and 0.15% for the for the second quarter and first half of 2021, respectively.
Capital
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.8% at June 30, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.7%, 12.7% and 10.5%, respectively. The June 30, 2022 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.
During the first half of 2022 and 2021, United repurchased, under a previously announced stock repurchase plan, shares of its common stock. During the second quarter of 2022, United repurchased approximately 1.5 million shares of its common stock at an average price per share of $34.47. United did not repurchase any shares of its common stock during the second quarter of 2021. During the first half of 2022, United repurchased approximately 2.3 million shares of its common stock at an average price per share of $34.69. During the first half of 2021, United repurchased approximately 306 thousand shares of its common stock at an average price per share of $32.52.
About United Bankshares, Inc.
As of June 30, 2022, United had consolidated assets of approximately $28.8 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".
Cautionary Statements
The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its June 30, 2022 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2022 and will adjust amounts preliminarily reported, if necessary.
Use of non-GAAP Financial Measures
This press release contains certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP"). Generally, United has presented these “non-GAAP” financial measures because it believes that these measures provide meaningful additional information to assist in the evaluation of United’s results of operations or financial position. Presentation of these non-GAAP financial measures is consistent with how United’s management evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.
Specifically, this press release contains certain references to financial measures identified as tax-equivalent (FTE) net interest income, average tangible equity, return on average tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.
Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.
Tangible equity is calculated as GAAP total shareholders’ equity minus total intangible assets. Tangible equity can thus be considered the most conservative valuation of the company. Tangible equity is also presented on a per common share basis and considering net income, a return on average tangible equity. Management provides these amounts to facilitate the understanding of as well as to assess the quality and composition of United’s capital structure. By removing the effect of intangible assets that result from merger and acquisition activity, the “permanent” items of equity are presented. These measures, along with others, are used by management to analyze capital adequacy and performance.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as reconciliation to that comparable GAAP financial measure can be found in the attached financial information tables to this press release. Investors should recognize that United’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures at other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and United strongly encourages a review of its condensed consolidated financial statements in their entirety.
Forward-Looking Statements
In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic, on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Six Months Ended
June
June
March
June
June
EARNINGS SUMMARY:
2022
2021
2022
2022
2021
Interest income
$
227,771
$
200,186
$
202,795
$
430,566
$
405,843
Interest expense
12,868
13,669
11,293
24,161
28,366
Net interest income
214,903
186,517
191,502
406,405
377,477
Provision for credit losses
(1,807
)
(8,879
)
(3,410
)
(5,217
)
(8,736
)
Noninterest income
43,608
62,864
46,025
89,633
155,444
Noninterest expense
141,174
138,969
139,175
280,349
287,903
Income before income taxes
119,144
119,291
101,762
220,906
253,754
Income taxes
23,531
24,455
20,098
43,629
52,020
Net income
$
95,613
$
94,836
$
81,664
$
177,277
$
201,734
PER COMMON SHARE:
Net income:
Basic
$
0.71
$
0.73
$
0.60
$
1.31
$
1.56
Diluted
0.71
0.73
0.60
1.30
1.56
Cash dividends
$
0.36
$
0.35
0.36
0.72
0.70
Book value
33.77
33.34
34.01
Closing market price
$
34.88
$
35.07
$
36.50
Common shares outstanding:
Actual at period end, net of treasury shares
136,068,439
134,580,646
129,203,593
Weighted average-basic
134,623,061
128,750,851
136,058,328
135,336,729
128,693,616
Weighted average-diluted
134,863,650
129,033,988
136,435,229
135,634,398
128,946,280
FINANCIAL RATIOS:
Return on average assets
1.32
%
1.41
%
1.13
%
1.23
%
1.52
%
Return on average shareholders’ equity
8.33
%
8.69
%
6.96
%
7.63
%
9.32
%
Return on average tangible equity (non-GAAP)(1)
14.23
%
14.95
%
11.63
%
12.90
%
16.06
%
Average equity to average assets
15.88
%
16.21
%
16.22
%
16.05
%
16.31
%
Net interest margin
3.38
%
3.14
%
2.99
%
3.18
%
3.22
%
June 30
December 31
June 30
March 31
PERIOD END BALANCES:
2022
2021
2021
2022
Assets
$
28,777,896
$
29,328,902
$
27,190,926
$
29,365,511
Earning assets
25,356,669
26,083,089
24,129,532
25,958,745
Loans & leases, net of unearned income
18,970,395
18,023,648
16,888,001
18,392,086
Loans held for sale
220,689
504,416
576,827
340,040
Investment securities
5,073,618
4,295,749
3,511,501
5,020,712
Total deposits
23,026,649
23,350,263
21,567,391
23,474,301
Shareholders’ equity
4,487,050
4,718,628
4,393,713
4,595,140
Note: (1) See information under the “Selected Financial Ratios” table for a reconciliation of non-GAAP measure.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Statements of Income
Three Months Ended
Six Months Ended
June
June
March
June
June
2022
2021
2022
2022
2021
Interest & Loan Fees Income (GAAP)
$
227,771
$
200,186
$
202,795
$
430,566
$
405,843
Tax equivalent adjustment
1,104
1,075
1,109
2,213
2,122
Interest & Fees Income (FTE) (non-GAAP)
228,875
201,261
203,904
432,779
407,965
Interest Expense
12,868
13,669
11,293
24,161
28,366
Net Interest Income (FTE) (non-GAAP)
216,007
187,592
192,611
408,618
379,599
Provision for Credit Losses
(1,807
)
(8,879
)
(3,410
)
(5,217
)
(8,736
)
Noninterest Income:
Fees from trust services
4,294
4,193
4,127
8,421
7,956
Fees from brokerage services
4,115
3,654
4,552
8,667
7,977
Fees from deposit services
10,830
9,396
10,148
20,978
18,292
Bankcard fees and merchant discounts
1,671
1,368
1,379
3,050
2,432
Other charges, commissions, and fees
785
775
759
1,544
1,534
Income from bank-owned life insurance
4,120
1,658
2,194
6,314
3,061
Income from mortgage banking activities
12,445
36,943
19,203
31,648
102,338
Mortgage loan servicing income
2,328
2,386
2,387
4,715
4,741
Net gains (losses) on investment securities
1,182
24
(251
)
931
2,633
Other noninterest income
1,838
2,467
1,527
3,365
4,480
Total Noninterest Income
43,608
62,864
46,025
89,633
155,444
Noninterest Expense:
Employee compensation
62,632
68,557
62,621
125,253
140,969
Employee benefits
12,047
14,470
12,851
24,898
29,920
Net occupancy
11,206
10,101
11,187
22,393
21,042
Data processing
7,549
6,956
7,371
14,920
13,982
Amortization of intangibles
1,379
1,467
1,379
2,758
2,933
OREO expense
46
496
182
228
4,055
Net (gains) on the sale of OREO properties
(454
)
(106
)
(33
)
(487
)
(33
)
Equipment expense
7,310
5,830
7,335
14,645
11,874
FDIC insurance expense
3,004
1,800
2,673
5,677
3,800
Mortgage loan servicing expense and impairment
1,783
3,599
1,643
3,426
6,776
Expense for reserve for unfunded loan commitments
5,899
873
5,237
11,136
1,646
Other noninterest expense
28,773
24,926
26,729
55,502
50,939
Total Noninterest Expense
141,174
138,969
139,175
280,349
287,903
Income Before Income Taxes (FTE) (non-GAAP)
120,248
120,366
102,871
223,119
255,876
Tax equivalent adjustment
1,104
1,075
1,109
2,213
2,122
Income Before Income Taxes (GAAP)
119,144
119,291
101,762
220,906
253,754
Taxes
23,531
24,455
20,098
43,629
52,020
Net Income
$
95,613
$
94,836
$
81,664
$
177,277
$
201,734
MEMO: Effective Tax Rate
19.75
%
20.50
%
19.75
%
19.75
%
20.50
%
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Balance Sheets
June 2022
June 2021
June 30
December 31
June 30
Q-T-D Average
Q-T-D Average
2022
2021
2021
Cash & Cash Equivalents
$
2,105,669
$
3,203,664
$
1,658,486
$
3,758,170
$
3,677,396
Securities Available for Sale
4,824,655
3,234,581
4,812,704
4,042,699
3,277,074
Less: Allowance for credit losses
0
0
0
0
0
Net available for sale securities
4,824,655
3,234,581
4,812,704
4,042,699
3,277,074
Securities Held to Maturity
1,020
1,020
1,020
1,020
1,020
Less: Allowance for credit losses
(19
)
(23
)
(18
)
(19
)
(31
)
Net held to maturity securities
1,001
997
1,002
1,001
989
Equity Securities
13,204
11,454
13,513
12,404
11,507
Other Investment Securities
246,312
221,093
246,399
239,645
221,931
Total Securities
5,085,172
3,468,125
5,073,618
4,295,749
3,511,501
Total Cash and Securities
7,190,841
6,671,789
6,732,104
8,053,919
7,188,897
Loans held for sale
263,039
618,306
220,689
504,416
576,827
Commercial Loans & Leases
14,210,173
13,068,138
14,136,614
13,809,735
12,723,654
Mortgage Loans
3,227,395
2,950,453
3,481,064
3,008,410
2,946,352
Consumer Loans
1,344,390
1,224,973
1,376,447
1,233,162
1,251,646
Gross Loans
18,781,958
17,243,564
18,994,125
18,051,307
16,921,652
Unearned income
(26,280
)
(36,437
)
(23,730
)
(27,659
)
(33,651
)
Loans & Leases, net of unearned income
18,755,678
17,207,127
18,970,395
18,023,648
16,888,001
Allowance for Loan & Lease Losses
(214,624
)
(231,422
)
(213,729
)
(216,016
)
(217,545
)
Net Loans
18,541,054
16,975,705
18,756,666
17,807,632
16,670,456
Mortgage Servicing Rights
22,644
22,385
22,593
23,144
22,540
Goodwill
1,889,186
1,810,045
1,888,889
1,886,494
1,810,040
Other Intangibles
22,519
24,875
21,655
24,413
23,990
Operating Lease Right-of-Use Asset
76,821
68,191
75,143
81,942
66,635
Other Real Estate Owned
13,943
18,740
13,847
14,823
18,474
Bank Owned Life Insurance
478,163
390,184
473,470
478,067
408,973
Other Assets
511,238
405,738
572,840
454,052
404,094
Total Assets
$
29,009,448
$
27,005,958
$
28,777,896
$
29,328,902
$
27,190,926
MEMO: Interest-earning Assets
$
25,626,411
$
23,967,740
$
25,356,669
$
26,083,089
$
24,129,532
Interest-bearing Deposits
$
14,136,707
$
13,219,572
$
13,995,710
$
14,369,716
$
13,283,937
Noninterest-bearing Deposits
9,038,947
8,227,147
9,030,939
8,980,547
8,283,454
Total Deposits
23,175,654
21,446,719
23,026,649
23,350,263
21,567,391
Short-term Borrowings
136,025
136,801
128,242
128,844
127,745
Long-term Borrowings
811,924
814,151
796,961
817,394
814,022
Total Borrowings
947,949
950,952
925,203
946,238
941,767
Operating Lease Liability
81,450
72,254
79,787
86,703
70,546
Other Liabilities
198,209
157,135
259,207
227,070
217,509
Total Liabilities
24,403,262
22,627,060
24,290,846
24,610,274
22,797,213
Preferred Equity
0
0
0
0
0
Common Equity
4,606,186
4,378,898
4,487,050
4,718,628
4,393,713
Total Shareholders' Equity
4,606,186
4,378,898
4,487,050
4,718,628
4,393,713
Total Liabilities & Equity
$
29,009,448
$
27,005,958
$
28,777,896
$
29,328,902
$
27,190,926
MEMO: Interest-bearing Liabilities
$
15,084,656
$
14,170,524
$
14,920,913
$
15,315,954
$
14,225,704
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Six Months Ended
June
June
March
June
June
Quarterly/Year-to-Date Share Data:
2022
2021
2022
2022
2021
Earnings Per Share:
Basic
$
0.71
$
0.73
$
0.60
$
1.31
$
1.56
Diluted
$
0.71
$
0.73
$
0.60
$
1.30
$
1.56
Common Dividend Declared Per Share
$
0.36
$
0.35
$
0.36
$
0.72
$
0.70
High Common Stock Price
$
37.81
$
42.50
$
39.80
$
39.80
$
42.50
Low Common Stock Price
$
33.11
$
36.19
$
33.58
$
33.11
$
31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic
134,623,061
128,750,851
136,058,328
135,336,729
128,693,616
Diluted
134,863,650
129,033,988
136,435,229
135,634,398
128,946,280
Common Dividends
$
48,544
$
45,268
$
49,266
$
97,810
$
90,522
Dividend Payout Ratio
50.77
%
47.73
%
60.33
%
55.17
%
44.87
%
June 30
June 30
March 31
EOP Share Data:
2022
2021
2022
Book Value Per Share
$
33.34
$
34.01
$
33.77
Tangible Book Value Per Share (non-GAAP) (1)
$
19.14
$
19.81
$
19.72
52-week High Common Stock Price
$
39.80
$
42.50
$
42.50
Date
01/13/22
05/18/21
05/18/21
52-week Low Common Stock Price
$
31.74
$
20.57
$
31.74
Date
09/20/21
09/25/20
9/20/21
EOP Shares Outstanding (Net of Treasury Stock):
134,580,646
129,203,593
136,068,439
Memorandum Items:
EOP Employees (full-time equivalent)
2,988
3,012
3,090
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,487,050
$
4,393,713
$
4,595,140
Less: Total Intangibles
(1,910,544
)
(1,834,030
)
(1,912,278
)
Tangible Equity (non-GAAP)
$
2,576,506
$
2,559,683
$
2,682,862
÷ EOP Shares Outstanding (Net of Treasury Stock)
134,580,646
129,203,593
136,068,439
Tangible Book Value Per Share (non-GAAP)
$
19.14
$
19.81
$
19.72
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Three Months Ended
Three Months Ended
June 2022
June 2021
March 2022
Selected Average Balances and Yields:
Average
Average
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities purchased under
agreements to resell and other short-term investments
$
1,737,146
$
4,841
1.12
%
$
2,905,604
$
1,757
0.24
%
$
3,028,826
$
2,329
0.31
%
Investment securities:
Taxable
4,665,307
24,558
2.11
%
3,114,902
13,846
1.78
%
4,264,820
17,505
1.64
%
Tax-exempt
419,865
2,794
2.66
%
353,223
2,331
2.64
%
444,542
2,688
2.42
%
Total securities
5,085,172
27,352
2.15
%
3,468,125
16,177
1.87
%
4,709,362
20,193
1.72
%
Loans and loans held for sale, net of unearned income (2)
19,018,717
196,682
4.15
%
17,825,433
183,327
4.12
%
18,530,232
181,382
3.96
%
Allowance for loan losses
(214,624
)
(231,422
)
(216,016
)
Net loans and loans held for sale
18,804,093
4.19
%
17,594,011
4.18
%
18,314,216
4.01
%
Total earning assets
25,626,411
$
228,875
3.58
%
23,967,740
$
201,261
3.37
%
26,052,404
$
203,904
3.16
%
Other assets
3,383,037
3,038,218
3,292,118
TOTAL ASSETS
$
29,009,448
$
27,005,958
$
29,344,522
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
14,136,707
$
9,751
0.28
%
$
13,219,572
$
11,012
0.33
%
$
14,383,839
$
8,561
0.24
%
Short-term borrowings
136,025
237
0.70
%
136,801
182
0.54
%
133,987
181
0.55
%
Long-term borrowings
811,924
2,880
1.42
%
814,151
2,475
1.22
%
817,363
2,551
1.27
%
Total interest-bearing liabilities
15,084,656
12,868
0.34
%
14,170,524
13,669
0.39
%
15,335,189
11,293
0.30
%
Noninterest-bearing deposits
9,038,947
8,227,147
8,991,131
Accrued expenses and other liabilities
279,659
229,389
258,422
TOTAL LIABILITIES
24,403,262
22,627,060
24,584,742
SHAREHOLDERS’ EQUITY
4,606,186
4,378,898
4,759,780
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,009,448
$
27,005,958
$
29,344,522
NET INTEREST INCOME
$
216,007
$
187,592
$
192,611
INTEREST RATE SPREAD
3.24
%
2.98
%
2.86
%
NET INTEREST MARGIN
3.38
%
3.14
%
2.99
%
(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal
income tax rate of 21%.
(2) Nonaccruing loans are included in the daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Six Months Ended
Six Months Ended
June 2022
June 2021
Selected Average Balances and Yields:
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities purchased under
agreements to resell and other short-term investments
$
2,379,418
$
7,170
0.61
%
$
2,599,276
$
3,650
0.28
%
Investment securities:
Taxable
4,466,170
42,063
1.88
%
3,018,633
27,372
1.81
%
Tax-exempt
432,135
5,483
2.54
%
324,183
4,312
2.66
%
Total securities
4,898,305
47,546
1.94
%
3,342,816
31,684
1.90
%
Loans and loans held for sale, net of unearned income (2)
18,775,823
378,063
4.06
%
18,030,354
372,631
4.16
%
Allowance for loan losses
(215,316
)
(233,597
)
Net loans and loans held for sale
18,560,507
4.10
%
17,796,757
4.22
%
Total earning assets
25,838,230
$
432,779
3.37
%
23,738,849
$
407,965
3.46
%
Other assets
3,338,261
3,011,252
TOTAL ASSETS
$
29,176,491
$
26,750,101
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
14,259,590
$
18,312
0.26
%
$
13,202,246
$
22,997
0.35
%
Short-term borrowings
135,012
418
0.62
%
139,463
360
0.52
%
Long-term borrowings
814,628
5,431
1.34
%
823,705
5,009
1.23
%
Total interest-bearing liabilities
15,209,230
24,161
0.32
%
14,165,414
28,366
0.40
%
Noninterest-bearing deposits
9,015,171
7,982,751
Accrued expenses and other liabilities
269,099
238,883
TOTAL LIABILITIES
24,493,500
22,387,048
SHAREHOLDERS’ EQUITY
4,682,991
4,363,053
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,176,491
$
26,750,101
NET INTEREST INCOME
$
408,618
$
379,599
INTEREST RATE SPREAD
3.05
%
3.06
%
NET INTEREST MARGIN
3.18
%
3.22
%
(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.
(2) Nonaccruing loans are included in the daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Six Months Ended
June
June
March
June
June
Selected Financial Ratios:
2022
2021
2022
2022
2021
Return on Average Assets
1.32
%
1.41
%
1.13
%
1.23
%
1.52
%
Return on Average Shareholders’ Equity
8.33
%
8.69
%
6.96
%
7.63
%
9.32
%
Return on Average Tangible Equity (non-GAAP) (1)
14.23
%
14.95
%
11.63
%
12.90
%
16.06
%
Efficiency Ratio
54.61
%
55.73
%
58.59
%
56.52
%
54.02
%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
95,613
$
94,836
$
81,664
$
177,277
$
201,734
(b) Number of Days
91
91
90
181
181
Average Total Shareholders' Equity (GAAP)
$
4,606,186
$
4,378,898
$
4,759,780
$
4,682,991
$
4,363,053
Less: Average Total Intangibles
(1,911,705
)
(1,834,920
)
(1,911,125
)
(1,911,416
)
(1,830,305
)
(c) Average Tangible Equity (non-GAAP)
$
2,694,481
$
2,543,978
$
2,848,655
$
2,771,575
$
2,532,748
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x
365 / (c)
14.23
%
14.95
%
11.63
%
12.90
%
16.06
%
June 30
December 31
June 30
March 31
Selected Financial Ratios:
2022
2021
2021
2022
Loans & Leases, net of unearned income / Deposit Ratio
82.38
%
77.19
%
78.30
%
78.35
%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income
1.13
%
1.20
%
1.29
%
1.17
%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income
1.35
%
1.37
%
1.41
%
1.37
%
Nonaccrual Loans / Loans & Leases, net of unearned income
0.15
%
0.20
%
0.24
%
0.19
%
90-Day Past Due Loans/ Loans & Leases, net of unearned income
0.09
%
0.10
%
0.08
%
0.08
%
Non-performing Loans/ Loans & Leases, net of unearned income
0.37
%
0.50
%
0.61
%
0.43
%
Non-performing Assets/ Total Assets
0.29
%
0.36
%
0.45
%
0.32
%
Primary Capital Ratio
16.34
%
16.79
%
16.89
%
16.36
%
Shareholders' Equity Ratio
15.59
%
16.09
%
16.16
%
15.65
%
Price / Book Ratio
1.05
x
1.05
x
1.07
x
1.03
x
Price / Earnings Ratio
12.37
x
12.82
x
12.42
x
14.57
x
Note:
(2) Includes allowances for loan losses and lending-related commitments.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Six Months Ended
June
June
March
June
June
Mortgage Banking Segment Data:
2022
2021
2022
2022
2021
Applications
$
1,159,102
$
2,029,846
$
1,696,504
$
2,855,606
$
4,660,272
Loans originated
955,152
1,658,128
1,006,363
1,961,516
3,568,747
Loans sold
$
1,072,623
$
1,877,772
$
1,170,124
$
2,242,748
$
3,695,656
Purchase money % of loans closed
86
%
69
%
73
%
79
%
55
%
Realized gain on sales and fees as a % of loans sold
2.40
%
2.90
%
2.98
%
2.59
%
3.52
%
Net interest income
$
2,870
$
2,871
$
2,317
$
5,187
$
5,521
Other income
21,468
39,764
23,397
44,865
107,271
Other expense
25,776
36,390
25,448
51,224
77,573
Income taxes
(285
)
1,280
57
(228
)
7,220
Net (loss) income
$
(1,153
)
$
4,965
$
209
$
(944
)
$
27,999
June 30
June 30
December 31
March 31
Period End Mortgage Banking Segment Data:
2022
2021
2021
2022
Locked pipeline
$
206,246
$
660,258
$
448,889
$
412,809
Balance of loans serviced
$
3,534,607
$
3,674,023
$
3,698,998
$
3,623,207
Number of loans serviced
24,226
25,526
25,198
24,677
June 30
June 30
December 31
March 31
Asset Quality Data:
2022
2021
2021
2022
EOP Non-Accrual Loans
$
28,386
$
41,182
$
36,028
$
34,093
EOP 90-Day Past Due Loans
16,443
14,135
18,879
15,179
EOP Restructured Loans (1)
25,504
47,271
35,856
30,582
Total EOP Non-performing Loans
$
70,333
$
102,588
$
90,763
$
79,854
EOP Other Real Estate Owned
13,847
18,474
14,823
13,641
Total EOP Non-performing Assets
$
84,180
$
121,062
$
105,586
$
93,495
Three Months Ended
Six Months Ended
June
June
March
June
June
Allowance for Loan & Lease Losses:
2022
2021
2022
2022
2021
Beginning Balance
$
214,594
$
231,582
$
216,016
$
216,016
$
235,830
Initial allowance for acquired PCD loans
0
0
0
0
0
Gross Charge-offs
(2,119
)
(6,131
)
(1,476
)
(3,595
)
(13,088
)
Recoveries
3,060
910
3,456
6,516
3,325
Net Recoveries (Charge-offs)
941
(5,221
)
1,980
2,921
(9,763
)
Provision for Loan & Lease Losses
(1,806
)
(8,816
)
(3,402
)
(5,208
)
(8,522
)
Ending Balance
$
213,729
$
217,545
$
214,594
$
213,729
$
217,545
Reserve for lending-related commitments
42,579
20,897
36,679
42,579
20,897
Allowance for Credit Losses (2)
$
256,308
$
238,442
$
251,273
$
256,308
$
238,442
Notes:
(1) Restructured loans with an aggregate balance of $11,298, $32,471, $22,421, and $13,568 at June 30, 2022, June 30, 2021, December 31, 2021, and March 31, 2022 respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,162, $46 and $102 at June 30, 2022, June 30, 2021 and December 31, 2021, respectively, were 90 days past due, but not included in "EOP Non-Accrual Loans" above.
(2) Includes allowances for loan losses and lending-related commitments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005183/en/