United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2022
United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter of 2022 of $102.6 million, or $0.76 per diluted share, as compared to earnings of $95.6 million, or $0.71 per diluted share, for the second quarter of 2022. The quarter was highlighted by continued broad-based loan growth, net interest margin expansion and strong credit quality metrics.
Annualized loan growth, excluding Paycheck Protection Program (“PPP”) loans, for the third quarter and first nine months of 2022 was 16% and 15%, respectively. Third quarter 2022 net interest margin of 3.78% increased 40 basis points from the second quarter of 2022. Non-performing loans as a percentage of loans and leases, net of unearned income was a low 0.35% at September 30, 2022.
Third quarter 2022 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.41%, 8.96% and 15.46%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.32%, 8.33% and 14.23%, respectively, for the second quarter of 2022.
“The third quarter of 2022 was another great quarter for UBSI,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “The company delivered strong results related to loan growth, margin expansion, expense control and asset quality. The vitality of our markets, the strength of our deposit franchise and our conservative and disciplined approach to running our business have served us well in this environment and will provide us opportunities going forward.”
Third quarter of 2022 compared to the second quarter of 2022
Net interest income for the third quarter of 2022 increased $25.7 million, or 12%, from the second 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 third quarter of 2022 also increased $25.7 million, or 12%, from the second 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. This increase in net interest income and tax-equivalent net interest income was partially offset by higher interest expense primarily driven by deposit rate repricing as well as due to lower PPP loan fee income and lower acquired loan accretion. The interest rate spread of 3.52% for the third quarter of 2022 increased 28 basis points from the second quarter of 2022 due to a 56 basis point increase in the average yield on earning assets partially offset by a 28 basis point increase in the average cost of funds. A decrease in average earning assets of $188.1 million, or 1%, from the second quarter of 2022 was driven by a decrease of $818.5 million in short-term investments partially offset by increases in higher yielding average net loans and loans held for sale of $627.6 million. Net PPP loan fee income decreased $1.9 million to $1.6 million for the third quarter of 2022. Acquired loan accretion income decreased $1.3 million to $4.1 million for the third quarter of 2022. The net interest margin of 3.78% for the third quarter of 2022 was an increase of 40 basis points from the net interest margin of 3.38% for the second quarter of 2022.
The provision for credit losses was $7.7 million for the third quarter of 2022 as compared to a net benefit of $1.8 million for the second quarter of 2022. The increase in the provision for credit losses was primarily due to loan growth.
Noninterest income for the third quarter of 2022 decreased $10.9 million, or 25%, from the second quarter of 2022. The decrease in noninterest income was primarily due to decreases of $6.0 million in income from mortgage banking activities, $2.6 million in income from bank-owned life insurance (“BOLI”), $1.4 million in net (losses) gains on investment securities and $761 thousand in fees from deposit services. The decrease in income from mortgage banking activities was 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. The decrease in BOLI income was primarily due to lower death benefits from the second quarter of 2022 and the impact of lower market values of underlying investments in the third quarter of 2022. The decrease in fees from deposit services reflects changes to United’s overdraft policy implemented during the third quarter of 2022.
Noninterest expense for the third quarter of 2022 decreased $4.0 million, or 3%, from the second quarter of 2022. The decrease in noninterest expense was primarily due to decreases of $8.8 million in the expense for the reserve for unfunded loan commitments and $3.0 million in employee compensation partially offset by an increase of $6.1 million in other noninterest expense. The decrease in the reserve for unfunded loan commitments reflects a decrease in the outstanding balance of loan commitments at quarter-end driven by loan fundings. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production. Other noninterest expense for the third quarter of 2022 included an accrual of $5.0 million related to a litigation matter with a former commercial customer.
For the third quarter of 2022, income tax expense was $25.9 million as compared to $23.5 million for the second quarter of 2022. The increase of $2.4 million was due to higher earnings and a higher effective tax rate. United’s effective tax rate was 20.2% and 19.8% for the third and second quarter of 2022, respectively.
Third quarter of 2022 compared to the third quarter of 2021
Earnings for the third quarter of 2022 were $102.6 million, or $0.76 per diluted share, as compared to earnings of $92.2 million, or $0.71 per diluted share, for the third quarter of 2021.
Net interest income for the third quarter of 2022 increased $59.0 million, or 33%, from the third quarter of 2021. Tax-equivalent net interest income for the third quarter of 2022 increased $59.1 million, or 32%, from the third 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 and organic loan growth, 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 higher interest expense primarily driven by deposit rate repricing, lower PPP loan fee income and lower acquired loan accretion income. Average earning assets for the third quarter of 2022 increased $1.1 billion, or 4%, from the third quarter of 2021 due to a $2.5 billion increase in average net loans and loans held for sale and a $1.5 billion increase in average investment securities partially offset by a $2.9 billion decrease in average short-term investments. The interest rate spread for the third quarter of 2022 increased 69 basis points from the third quarter of 2021 to 3.52% due to a 96 basis point increase in the average yield on earning assets partially offset by a 27 basis point increase in the average cost of funds. Net PPP loan fee income was $1.6 million and $7.8 million for the third quarter of 2022 and 2021, respectively, a decrease of $6.2 million. Acquired loan accretion income was $4.1 million and $8.2 million for the third quarter of 2022 and 2021, respectively, a decrease of $4.1 million. The net interest margin of 3.78% for the third quarter of 2022 was an increase of 80 basis points from the net interest margin of 2.98% for the third quarter of 2021.
The provision for credit losses was $7.7 million for the third quarter of 2022 as compared to a net benefit of $7.8 million for the third quarter of 2021. The increase in the provision for credit losses in the third quarter of 2022 was primarily due to loan growth.
Noninterest income for the third quarter of 2022 was $32.7 million, which was a decrease of $35.9 million, or 52%, from the third quarter of 2021. The decrease in noninterest income was driven by a $35.6 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.
Noninterest expense for the third quarter of 2022 was $137.2 million, a decrease of $5.1 million, or 4%, from the third quarter of 2021 primarily due to decreases of $7.8 million in employee compensation and $7.2 million in the expense for the reserve for unfunded loan commitments partially offset by an increase of $8.8 million in other noninterest expense. The decrease in employee compensation was primarily due to lower employee commissions related to mortgage banking production partially offset by additional employees from the Community Bankers Trust acquisition. The increase in other noninterest expense resulted from the previously mentioned litigation accrual in the third quarter of 2022 and higher amounts of certain general operating expenses.
For the third quarter of 2022, income tax expense was $25.9 million as compared to $23.6 million for the third quarter of 2021. The increase of $2.3 million was primarily due to higher earnings partially offset by a slightly lower effective tax rate. United’s effective tax rate was 20.2% for the third quarter of 2022 and 20.4% for the third quarter of 2021.
First nine months of 2022 compared to the first nine months of 2021
Earnings for the first nine months of 2022 were $279.9 million, or $2.06 per diluted share, as compared to earnings of $293.9 million, or $2.27 per diluted share, for the first nine months of 2021.
Net interest income for the first nine months of 2022 increased $88.0 million, or 16%, from the first nine months of 2021. Tax-equivalent net interest income for the first nine months of 2022 increased $88.1 million, or 16%, from the first nine months of 2021. 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, an increase in average earning assets from the Community Bankers Trust acquisition and organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by lower PPP loan fee income, lower acquired loan accretion income and the impact of rising market interest rates on interest-bearing liabilities. Average earning assets for the first nine months of 2022 increased $1.8 billion, or 7%, from the first nine months of 2021 due to a $1.5 billion increase in average investment securities and a $1.3 billion increase in average net loans and loans held for sale partially offset by a $1.1 billion decrease in average short-term investments. The interest rate spread for the first nine months of 2022 increased 22 basis points from the first nine months of 2021 due to a 26 basis point increase in the average yield on earning assets partially offset by a 4 basis point increase in the average cost of funds. Net PPP loan fee income was $9.3 million and $28.2 million for the first nine months of 2022 and 2021, respectively, a decrease of $18.9 million. Acquired loan accretion income was $13.6 million and $27.6 million for the first nine months of 2022 and 2021, respectively, a decrease of $14.0 million. The net interest margin of 3.38% for the first nine months of 2022 was an increase of 24 basis points from the net interest margin of 3.14% for the first nine months of 2021.
The provision for credit losses was $2.5 million for the first nine months of 2022 as compared to a net benefit of $16.6 million for the first nine months of 2021.
Noninterest income for the first nine months of 2022 was $122.4 million, which was a decrease of $101.7 million, or 45%, from the first nine months of 2021. The decrease was driven by a $106.3 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. Fees from deposit services for the first nine months of 2022 were $31.0 million, an increase of $2.9 million from the first nine months of 2021. BOLI income for the first nine months of 2022 was $7.8 million, an increase of $2.2 million from the first nine months of 2021 due to increased death benefits.
Noninterest expense for the first nine months of 2022 was $417.5 million, a decrease of $12.6 million, or 3%, from the first nine months of 2021 driven by decreases in employee compensation of $23.6 million and employee benefits of $7.4 million partially offset by an increase in other noninterest expense of $13.3 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 increase in other noninterest expense resulted from the previously mentioned litigation accrual in the third quarter of 2022 and higher amounts of certain general operating expenses.
For the first nine months of 2022, income tax expense was $69.6 million as compared to $75.6 million for the first nine months of 2021 due to lower earnings and a lower effective tax rate. United’s effective tax rate was 19.9% for the first nine months of 2022 and 20.5% for the first nine months of 2021.
Credit Quality
United’s asset quality continues to be sound. At September 30, 2022, non-performing loans were $69.7 million, or 0.35% 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 $80.4 million, including OREO of $10.8 million at September 30, 2022, represented 0.28% 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 September 30, 2022, the allowance for loan & lease losses was $219.6 million, or 1.11% 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 charge-offs were $1.8 million for the third quarter of 2022 compared to net recoveries of $1.2 million for the third quarter of 2021. Net recoveries were $1.1 million for the first nine months of 2022 compared to net charge-offs of $8.6 million for the first nine months of 2021. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.04% and (0.03)% for the third quarter of 2022 and 2021, respectively. Annualized net (recoveries) charge-offs as a percentage of average loans & leases, net of unearned income were (0.01)% and 0.07% for the for the first nine months of 2022 and 2021, respectively.
Capital
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.4% at September 30, 2022, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.7%, respectively. The September 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 nine months of 2022 and 2021, United repurchased, under a previously announced stock repurchase plan, shares of its common stock. United did not repurchase any shares of its common stock during the third quarter of 2022 or 2021. During the first nine months 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 nine months 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 September 30, 2022, United had consolidated assets of approximately $29.0 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 September 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 September 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
Nine Months Ended
EARNINGS SUMMARY:
September
2022
September
2021
June
2022
September
2022
September
2021
Interest income
$
263,683
$
194,080
$
227,771
$
694,249
$
599,923
Interest expense
23,061
12,501
12,868
47,222
40,867
Net interest income
240,622
181,579
214,903
647,027
559,056
Provision for credit losses
7,671
(7,829
)
(1,807
)
2,454
(16,565
)
Noninterest income
32,749
68,631
43,608
122,382
224,075
Noninterest expense
137,196
142,283
141,174
417,545
430,186
Income before income taxes
128,504
115,756
119,144
349,410
369,510
Income taxes
25,919
23,604
23,531
69,548
75,624
Net income
$
102,585
$
92,152
$
95,613
$
279,862
$
293,886
PER COMMON SHARE:
Net income:
Basic
$
0.76
$
0.71
$
0.71
$
2.07
$
2.28
Diluted
0.76
0.71
0.71
2.06
2.27
Cash dividends
$
0.36
$
0.35
0.36
1.08
1.05
Book value
33.34
32.98
34.29
Closing market price
$
35.07
$
35.75
$
36.38
Common shares outstanding:
Actual at period end, net of treasury shares
134,580,646
134,631,647
129,203,774
Weighted average-basic
134,182,248
128,762,815
134,623,061
134,947,674
128,716,450
Weighted average-diluted
134,553,565
128,960,220
134,863,650
135,251,299
128,934,282
FINANCIAL RATIOS:
Return on average assets
1.41
%
1.33
%
1.32
%
1.29
%
1.46
%
Return on average shareholders’ equity
8.96
%
8.23
%
8.33
%
8.07
%
8.95
%
Return on average tangible equity (non-GAAP)(1)
15.46
%
14.03
%
14.23
%
13.73
%
15.36
%
Average equity to average assets
15.75
%
16.18
%
15.88
%
15.95
%
16.27
%
Net interest margin
3.78
%
2.98
%
3.38
%
3.38
%
3.14
%
PERIOD END BALANCES:
September 30:2022
December 31
2021
September 30
2021
June 30
2022
Assets
$
29,048,475
$
29,328,902
$
27,507,517
$
28,777,896
Earning assets
25,648,264
26,083,089
24,415,973
25,356,669
Loans & leases, net of unearned income
19,700,080
18,023,648
16,743,629
18,970,395
Loans held for sale
210,075
504,416
493,299
220,689
Investment securities
4,923,694
4,295,749
3,646,065
5,073,618
Total deposits
22,863,377
23,350,263
21,822,609
23,026,649
Shareholders’ equity
4,440,086
4,718,628
4,430,766
4,487,050
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
Nine Months Ended
September
September
June
March
September
September
2022
2021
2022
2022
2022
2021
Interest & Loan Fees Income (GAAP)
$
263,683
$
194,080
$
227,771
$
202,795
$
694,249
$
599,923
Tax equivalent adjustment
1,105
1,059
1,104
1,109
3,318
3,181
Interest & Fees Income (FTE) (non-GAAP)
264,788
195,139
228,875
203,904
697,567
603,104
Interest Expense
23,061
12,501
12,868
11,293
47,222
40,867
Net Interest Income (FTE) (non-GAAP)
241,727
182,638
216,007
192,611
650,345
562,237
Provision for Credit Losses
7,671
(7,829
)
(1,807
)
(3,410
)
2,454
(16,565
)
Noninterest Income:
Fees from trust services
4,384
4,269
4,294
4,127
12,805
12,225
Fees from brokerage services
4,016
3,883
4,115
4,552
12,683
11,860
Fees from deposit services
10,069
9,888
10,830
10,148
31,047
28,180
Bankcard fees and merchant discounts
1,857
1,473
1,671
1,379
4,907
3,905
Other charges, commissions, and fees
918
703
785
759
2,462
2,237
Income from bank-owned life insurance
1,472
2,556
4,120
2,194
7,786
5,617
Income from mortgage banking activities
6,422
42,012
12,445
19,203
38,070
144,350
Mortgage loan servicing income
2,302
2,429
2,328
2,387
7,017
7,170
Net (losses) gains on investment securities
(206
)
82
1,182
(251
)
725
2,715
Other noninterest income
1,515
1,336
1,838
1,527
4,880
5,816
Total Noninterest Income
32,749
68,631
43,608
46,025
122,382
224,075
Noninterest Expense:
Employee compensation
59,618
67,459
62,632
62,621
184,871
208,428
Employee benefits
10,750
13,132
12,047
12,851
35,648
43,052
Net occupancy
11,281
10,339
11,206
11,187
33,674
31,381
Data processing
7,614
6,612
7,549
7,371
22,534
20,594
Amortization of intangibles
1,379
1,466
1,379
1,379
4,137
4,399
OREO expense
1,708
428
46
182
1,936
4,483
Net losses (gains) on the sale of OREO properties
125
(34
)
(454
)
(33
)
(362
)
(67
)
Equipment expense
7,807
7,286
7,310
7,335
22,452
19,160
FDIC insurance expense
3,063
1,920
3,004
2,673
8,740
5,720
Mortgage loan servicing expense and impairment
1,847
3,253
1,783
1,643
5,273
10,029
Expense for the reserve for unfunded loan commitments
(2,881
)
4,294
5,899
5,237
8,255
5,941
Other noninterest expense
34,885
26,128
28,773
26,729
90,387
77,066
Total Noninterest Expense
137,196
142,283
141,174
139,175
417,545
430,186
Income Before Income Taxes (FTE) (non-GAAP)
129,609
116,815
120,248
102,871
352,728
372,691
Tax equivalent adjustment
1,105
1,059
1,104
1,109
3,318
3,181
Income Before Income Taxes (GAAP)
128,504
115,756
119,144
101,762
349,410
369,510
Taxes
25,919
23,604
23,531
20,098
69,548
75,624
Net Income
$
102,585
$
92,152
$
95,613
$
81,664
$
279,862
$
293,886
MEMO: Effective Tax Rate
20.17
%
20.39
%
19.75
%
19.75
%
19.90
%
20.47
%
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Consolidated Balance Sheets
September 2022
September 2021
September 30
December 31
September 30
June 30
Q-T-D Average
Q-T-D Average
2022
2021
2021
2022
Cash & Cash Equivalents
$
1,260,311
$
4,132,702
$
1,356,347
$
3,758,170
$
4,033,561
$
1,658,486
Securities Available for Sale
4,826,072
3,344,196
4,648,087
4,042,699
3,409,984
4,812,704
Less: Allowance for credit losses
0
0
0
0
0
0
Net available for sale securities
4,826,072
3,344,196
4,648,087
4,042,699
3,409,984
4,812,704
Securities Held to Maturity
1,020
1,020
1,020
1,020
1,020
1,020
Less: Allowance for credit losses
(18
)
(31
)
(19
)
(19
)
(27
)
(18
)
Net held to maturity securities
1,002
989
1,001
1,001
993
1,002
Equity Securities
9,449
11,735
7,314
12,404
11,984
13,513
Other Investment Securities
251,405
222,765
267,292
239,645
223,104
246,399
Total Securities
5,087,928
3,579,685
4,923,694
4,295,749
3,646,065
5,073,618
Total Cash and Securities
6,348,239
7,712,387
6,280,041
8,053,919
7,679,626
6,732,104
Loans held for sale
203,420
445,983
210,075
504,416
493,299
220,689
Commercial Loans & Leases
14,410,508
12,621,706
14,531,221
13,809,735
12,657,238
14,136,614
Mortgage Loans
3,613,613
2,916,877
3,756,692
3,008,410
2,884,542
3,481,064
Consumer Loans
1,442,240
1,221,578
1,434,572
1,233,162
1,229,552
1,376,447
Gross Loans
19,466,361
16,760,161
19,722,485
18,051,307
16,771,332
18,994,125
Unearned income
(24,295
)
(31,288
)
(22,405
)
(27,659
)
(27,703
)
(23,730
)
Loans & Leases, net of unearned income
19,442,066
16,728,873
19,700,080
18,023,648
16,743,629
18,970,395
Allowance for Loan & Lease Losses
(213,824
)
(217,472
)
(219,611
)
(216,016
)
(210,891
)
(213,729
)
Net Loans
19,228,242
16,511,401
19,480,469
17,807,632
16,532,738
18,756,666
Mortgage Servicing Rights
22,369
22,479
21,908
23,144
22,836
22,593
Goodwill
1,888,889
1,810,040
1,888,889
1,886,494
1,810,040
1,888,889
Other Intangibles
21,165
23,409
20,276
24,413
22,524
21,655
Operating Lease Right-of-Use Asset
74,734
68,373
74,043
81,942
75,593
75,143
Other Real Estate Owned
13,508
17,618
10,779
14,823
16,696
13,847
Bank Owned Life Insurance
477,654
432,593
478,518
478,067
446,110
473,470
Other Assets
556,215
393,427
583,477
454,052
408,055
572,840
Total Assets
$
28,834,435
$
27,437,710
$
29,048,475
$
29,328,902
$
27,507,517
$
28,777,896
MEMO: Interest-earning Assets
$
25,438,281
$
24,362,333
$
25,648,264
$
26,083,089
$
24,415,973
$
25,356,669
Interest-bearing Deposits
$
13,756,151
$
13,361,016
$
13,533,152
$
14,369,716
$
13,332,418
$
13,995,710
Noninterest-bearing Deposits
9,216,058
8,471,744
9,330,225
8,980,547
8,490,191
9,030,939
Total Deposits
22,972,209
21,832,760
22,863,377
23,350,263
21,822,609
23,026,649
Short-term Borrowings
137,985
123,526
142,476
128,844
123,018
128,242
Long-term Borrowings
894,940
813,976
1,297,308
817,394
813,851
796,961
Total Borrowings
1,032,925
937,502
1,439,784
946,238
936,869
925,203
Operating Lease Liability
79,409
72,389
78,748
86,703
80,518
79,787
Other Liabilities
207,792
154,952
226,480
227,070
236,755
259,207
Total Liabilities
24,292,335
22,997,603
24,608,389
24,610,274
23,076,751
24,290,846
Preferred Equity
0
0
0
0
0
0
Common Equity
4,542,100
4,440,107
4,440,086
4,718,628
4,430,766
4,487,050
Total Shareholders' Equity
4,542,100
4,440,107
4,440,086
4,718,628
4,430,766
4,487,050
Total Liabilities & Equity
$
28,834,435
$
27,437,710
$
29,048,475
$
29,328,902
$
27,507,517
$
28,777,896
MEMO: Interest-bearing Liabilities
$
14,789,076
$
14,298,518
$
14,972,936
$
15,315,954
$
14,269,287
$
14,920,913
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Nine Months Ended
September
September
June
March
September
September
Quarterly/Year-to-Date Share Data:
2022
2021
2022
2022
2022
2021
Earnings Per Share:
Basic
$
0.76
$
0.71
$
0.71
$
0.60
$
2.07
$
2.28
Diluted
$
0.76
$
0.71
$
0.71
$
0.60
$
2.06
$
2.27
Common Dividend Declared Per Share
$
0.36
$
0.35
$
0.36
$
0.36
$
1.08
$
1.05
High Common Stock Price
$
40.85
$
37.12
$
37.81
$
39.80
$
40.85
$
42.50
Low Common Stock Price
$
33.67
$
31.74
$
33.11
$
33.58
$
33.11
$
31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic
134,182,248
128,762,815
134,623,061
136,058,328
134,947,674
128,716,450
Diluted
134,553,565
128,960,220
134,863,650
136,435,229
135,251,299
128,934,282
Common Dividends
$
48,564
$
45,271
$
48,544
$
49,266
$
146,374
$
135,793
Dividend Payout Ratio
47.34
%
49.13
%
50.77
%
60.33
%
52.30
%
46.21
%
September 30
September 30
June 30
March 31
EOP Share Data:
2022
2021
2022
2022
Book Value Per Share
$
32.98
$
34.29
$
33.34
$
33.77
Tangible Book Value Per Share (non-GAAP) (1)
$
18.80
$
20.11
$
19.14
$
19.72
52-week High Common Stock Price
$
40.85
$
42.50
$
39.80
$
42.50
Date
8/16/22
05/18/21
01/13/22
05/18/21
52-week Low Common Stock Price
$
33.11
$
21.19
$
31.74
$
31.74
Date
5/2/22
10/01/20
09/20/21
9/20/21
EOP Shares Outstanding (Net of Treasury Stock):
134,631,647
129,203,774
134,580,646
136,068,439
Memorandum Items:
EOP Employees (full-time equivalent)
2,915
2,986
2,988
3,090
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,440,086
$
4,430,766
$
4,487,050
$
4,595,140
Less: Total Intangibles
(1,909,165
)
(1,832,564
)
(1,910,544
)
(1,912,278
)
Tangible Equity (non-GAAP)
$
2,530,921
$
2,598,202
$
2,576,506
$
2,682,862
÷ EOP Shares Outstanding (Net of Treasury Stock)
134,631,647
129,203,774
134,580,646
136,068,439
Tangible Book Value Per Share (non-GAAP)
$
18.80
$
20.11
$
19.14
$
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
September 2022
Three Months Ended
September 2021
Three Months Ended
June 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
$
918,691
$
6,834
2.95
%
$
3,825,264
$
2,548
0.26
%
$
1,737,146
$
4,841
1.12
%
Investment securities:
Taxable
4,687,528
29,149
2.49
%
3,215,719
12,999
1.62
%
4,665,307
24,558
2.11
%
Tax-exempt
400,400
2,783
2.78
%
363,966
2,327
2.56
%
419,865
2,794
2.66
%
Total securities
5,087,928
31,932
2.51
%
3,579,685
15,326
1.71
%
5,085,172
27,352
2.15
%
Loans and loans held for sale, net of unearned income (2)
19,645,486
226,022
4.57
%
17,174,856
177,265
4.10
%
19,018,717
196,682
4.15
%
Allowance for loan losses
(213,824
)
(217,472
)
(214,624
)
Net loans and loans held for sale
19,431,662
4.62
%
16,957,384
4.15
%
18,804,093
4.19
%
Total earning assets
25,438,281
$
264,788
4.14
%
24,362,333
$
195,139
3.18
%
25,626,411
$
228,875
3.58
%
Other assets
3,396,154
3,075,377
3,383,037
TOTAL ASSETS
$
28,834,435
$
27,437,710
$
29,009,448
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
13,756,151
$
17,660
0.51
%
$
13,361,016
$
9,803
0.29
%
$
14,136,707
$
9,751
0.28
%
Short-term borrowings
137,985
493
1.42
%
123,526
167
0.54
%
136,025
237
0.70
%
Long-term borrowings
894,940
4,908
2.18
%
813,976
2,531
1.23
%
811,924
2,880
1.42
%
Total interest-bearing liabilities
14,789,076
23,061
0.62
%
14,298,518
12,501
0.35
%
15,084,656
12,868
0.34
%
Noninterest-bearing deposits
9,216,058
8,471,744
9,038,947
Accrued expenses and other liabilities
287,201
227,341
279,659
TOTAL LIABILITIES
24,292,335
22,997,603
24,403,262
SHAREHOLDERS’ EQUITY
4,542,100
4,440,107
4,606,186
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
28,834,435
$
27,437,710
$
29,009,448
NET INTEREST INCOME
$
241,727
$
182,638
$
216,007
INTEREST RATE SPREAD
3.52
%
2.83
%
3.24
%
NET INTEREST MARGIN
3.78
%
2.98
%
3.38
%
(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)
Nine Months Ended
September 2022
Nine Months Ended
September 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
$
1,887,158
$
14,004
0.99
%
$
3,012,429
$
6,198
0.28
%
Investment securities:
Taxable
4,540,767
71,212
2.09
%
3,085,050
40,371
1.74
%
Tax-exempt
421,440
8,266
2.62
%
337,590
6,639
2.62
%
Total securities
4,962,207
79,478
2.14
%
3,422,640
47,010
1.83
%
Loans and loans held for sale, net of unearned income (2)
19,068,898
604,085
4.23
%
17,742,054
549,896
4.14
%
Allowance for loan losses
(214,813
)
(228,163
)
Net loans and loans held for sale
18,854,085
4.28
%
17,513,891
4.20
%
Total earning assets
25,703,450
$
697,567
3.63
%
23,948,960
$
603,104
3.37
%
Other assets
3,358,118
3,032,927
TOTAL ASSETS
$
29,061,568
$
26,981,887
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
14,089,933
$
35,972
0.34
%
$
13,255,751
$
32,800
0.33
%
Short-term borrowings
136,014
911
0.90
%
134,092
527
0.53
%
Long-term borrowings
841,693
10,339
1.64
%
820,426
7,540
1.23
%
Total interest-bearing liabilities
15,067,640
47,222
0.42
%
14,210,269
40,867
0.38
%
Noninterest-bearing deposits
9,082,869
8,147,540
Accrued expenses and other liabilities
275,201
234,991
TOTAL LIABILITIES
24,425,710
22,592,800
SHAREHOLDERS’ EQUITY
4,635,858
4,389,087
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,061,568
$
26,981,887
NET INTEREST INCOME
$
650,345
$
562,237
INTEREST RATE SPREAD
3.21
%
2.99
%
NET INTEREST MARGIN
3.38
%
3.14
%
(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
Nine Months Ended
September
September
June
March
September
September
Selected Financial Ratios:
2022
2021
2022
2022
2022
2021
Return on Average Assets
1.41
%
1.33
%
1.32
%
1.13
%
1.29
%
1.46
%
Return on Average Shareholders’ Equity
8.96
%
8.23
%
8.33
%
6.96
%
8.07
%
8.95
%
Return on Average Tangible Equity (non-GAAP) (1)
15.46
%
14.03
%
14.23
%
11.63
%
13.73
%
15.36
%
Efficiency Ratio
50.19
%
56.87
%
54.61
%
58.59
%
54.27
%
54.93
%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
102,585
$
92,152
$
95,613
$
81,664
$
279,862
$
293,886
(b) Number of Days
92
92
91
90
273
273
Average Total Shareholders' Equity (GAAP)
$
4,542,100
$
4,440,107
$
4,606,186
$
4,759,780
$
4,635,858
$
4,389,087
Less: Average Total Intangibles
(1,910,054
)
(1,833,449
)
(1,911,705
)
(1,911,125
)
(1,910,957
)
(1,831,364
)
(c) Average Tangible Equity (non-GAAP)
$
2,632,046
$
2,606,658
$
2,694,481
$
2,848,655
$
2,724,901
$
2,557,723
Return on Average Tangible Equity (non-GAAP)\[(a) / (b)] x 365 / (c)
15.46
%
14.03
%
14.23
%
11.63
%
13.73
%
15.36
%
Selected Financial Ratios:
September 30
2022
December 31
2021
September 30
2021
June 30
2022
Loans & Leases, net of unearned income / Deposit Ratio
86.16
%
77.19
%
76.73
%
82.38
%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income
1.11
%
1.20
%
1.26
%
1.13
%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income
1.32
%
1.37
%
1.41
%
1.35
%
Nonaccrual Loans / Loans & Leases, net of unearned income
0.14
%
0.20
%
0.23
%
0.15
%
90-Day Past Due Loans/ Loans & Leases, net of unearned income
0.09
%
0.10
%
0.09
%
0.09
%
Non-performing Loans/ Loans & Leases, net of unearned income
0.35
%
0.50
%
0.54
%
0.37
%
Non-performing Assets/ Total Assets
0.28
%
0.36
%
0.39
%
0.29
%
Primary Capital Ratio
16.03
%
16.79
%
16.82
%
16.34
%
Shareholders' Equity Ratio
15.29
%
16.09
%
16.11
%
15.59
%
Price / Book Ratio
1.08
x
1.05
x
1.06
x
1.05
x
Price / Earnings Ratio
11.75
x
12.82
x
12.76
x
12.37
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
Nine Months Ended
September
September
June
March
September
September
Mortgage Banking Segment Data:
2022
2021
2022
2022
2022
2021
Applications
$
785,529
$
1,893,870
$
1,159,102
$
1,696,504
$
3,641,135
$
6,554,142
Loans originated
552,487
1,385,871
955,152
1,006,363
2,514,002
4,954,618
Loans sold
$
564,267
$
1,470,928
$
1,072,623
$
1,170,124
$
2,807,014
$
5,166,584
Purchase money % of loans closed
86
%
69
%
86
%
73
%
81
%
59
%
Realized gain on sales and fees as a % of loans sold
2.13
%
3.00
%
2.40
%
2.98
%
2.49
%
3.37
%
Net interest income
$
2,758
$
2,367
$
2,870
$
2,317
$
7,945
$
7,888
Other income
13,749
45,023
21,468
23,397
58,614
152,295
Other expense
20,662
31,787
25,776
25,448
71,886
109,361
Income taxes
(820
)
3,179
(285
)
57
(1,048
)
10,399
Net (loss) income
$
(3,335
)
$
12,424
$
(1,153
)
$
209
$
(4,279
)
$
40,423
September 30
December 31
September 30
June 30
March 31
Period End Mortgage Banking Segment Data:
2022
2021
2021
2022
2022
Locked pipeline
$
131,846
$
448,889
$
648,706
$
206,246
$
412,809
Balance of loans serviced
$
3,459,781
$
3,698,998
$
3,723,206
$
3,534,607
$
3,623,207
Number of loans serviced
23,859
25,198
25,583
24,226
24,677
September 30
December 31
September 30
June 30
March 31
Asset Quality Data:
2022
2021
2021
2022
2022
EOP Non-Accrual Loans
$
28,244
$
36,028
$
37,689
$
28,386
$
34,093
EOP 90-Day Past Due Loans
18,254
18,879
14,827
16,443
15,179
EOP Restructured Loans (1)
23,155
35,856
37,752
25,504
30,582
Total EOP Non-performing Loans
$
69,653
$
90,763
$
90,268
$
70,333
$
79,854
EOP Other Real Estate Owned
10,779
14,823
16,696
13,847
13,641
Total EOP Non-performing Assets
$
80,432
$
105,586
$
106,964
$
84,180
$
93,495
Three Months Ended
Nine Months Ended
September
September
June
March
September
September
Allowance for Loan & Lease Losses:
2022
2021
2022
2022
2022
2021
Beginning Balance
$
213,729
$
217,545
$
214,594
$
216,016
$
216,016
$
235,830
Gross Charge-offs
(3,087
)
(2,004
)
(2,119
)
(1,476
)
(6,682
)
(15,092
)
Recoveries
1,299
3,173
3,060
3,456
7,815
6,498
Net (Charge-offs) Recoveries
(1,788
)
1,169
941
1,980
1,133
(8,594
)
Provision for Loan & Lease Losses
7,670
(7,823
)
(1,806
)
(3,402
)
2,462
(16,345
)
Ending Balance
$
219,611
$
210,891
$
213,729
$
214,594
$
219,611
$
210,891
Reserve for lending-related commitments
39,698
25,191
42,579
36,679
39,698
25,191
Allowance for Credit Losses (2)
$
259,309
$
236,082
$
256,308
$
251,273
$
259,309
$
236,082
Notes:
(1) Restructured loans with an aggregate balance of $10,336, $24,662, $22,421, $11,298 and $13,568 at September 30, 2022, September 30, 2021, December 31, 2021, June 30, 2022 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 $2,941, $102 and $3,162 at September 30, 2022, December 31, 2021 and June 30, 2022, 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/20221027005187/en/