United Bankshares, Inc. Announces Record Earnings for the Year 2021
United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the fourth quarter and the year of 2021. Earnings for the fourth quarter of 2021 were $73.9 million, or $0.56 per diluted share, as compared to earnings of $92.4 million, or $0.71 per diluted share, for the fourth quarter of 2020. Earnings for the year of 2021 were a record $367.7 million as compared to earnings of $289.0 million for the year of 2020. Earnings per diluted share for the year of 2021 were a record $2.83 as compared to earnings per diluted share of $2.40 for the year of 2020.
Fourth quarter 2021 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.04%, 6.44% and 10.87%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.41%, 8.51% and 14.72%, respectively, for the fourth quarter of 2020. For the year of 2021, United’s returns on average assets, average equity and average tangible equity were 1.35%, 8.30% and 14.18%, respectively, compared to returns on average assets, average equity, and average tangible equity of 1.20%, 7.30% and 12.90%, respectively, for the year of 2020.
“2021 was one of the most successful years in our Company’s history,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We achieved record pre-tax earnings of $463 million, increased earnings per diluted share 18%, and outperformed peer profitability. We increased our dividend for the 48th consecutive year and successfully completed the acquisition of Community Bankers Trust Corporation, the 33rd acquisition of the current administration.”
On December 3, 2021, United completed its acquisition of Community Bankers Trust Corporation (“Community Bankers Trust”). The results of operations for Community Bankers Trust are included in the consolidated results of operations from the date of acquisition. As a result of the acquisition, the fourth quarter and year of 2021 were impacted by approximately one month of increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2020 and as compared to the third quarter of 2021.
As a result of the acquisition of Carolina Financial Corporation (“Carolina Financial”) on May 1, 2020, the year of 2021 reflected higher average balances, income, and expense as compared to the year of 2020.
The fourth quarter and year of 2021 included merger-related expenses associated with the Community Bankers Trust acquisition of $20.4 million and $21.4 million, respectively, compared to $558 thousand and $54.2 million of merger-related expenses associated with the Carolina Financial acquisition for the fourth quarter and year of 2020.
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2021 was $183.7 million, which was a decrease of $8.3 million, or 4%, from the fourth quarter of 2020. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2021 also decreased $8.3 million, or 4%, from the fourth quarter of 2020 to $184.7 million. The decrease in net interest income and tax-equivalent net interest income was primarily due to lower accretion on acquired loans and lower fee income from Paycheck Protection Program (“PPP”) loans. A decrease in interest income due to lower acquired loan accretion income and PPP loan fee income as well as due to a change in the mix of interest earning assets was partially offset by lower interest expense on deposits and borrowings driven by rate repricing. The net interest spread for the fourth quarter of 2021 decreased 32 basis points from the fourth quarter of 2020 due to a 49 basis point decrease in the average yield on earning assets partially offset by a 17 basis point decrease in the average cost of funds. Loan accretion on acquired loans was $6.2 million and $10.9 million for the fourth quarter of 2021 and 2020, respectively, a decrease of $4.7 million. Net PPP loan fee income of $5.0 million was recognized in the fourth quarter of 2021 driven primarily by loan forgiveness, as compared to $7.0 million for the fourth quarter of 2020. Average earning assets for the fourth quarter of 2021 increased $1.8 billion, or 8%, from the fourth quarter of 2020 due to a $1.8 billion increase in average short-term investments and a $833.6 million increase in average investment securities, partially offset by a $862.0 million decrease in average net loans and loans held for sale mainly driven by a decline in PPP loan balances. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 39 basis points from the net interest margin of 3.33% for the fourth quarter of 2020.
Net interest income for the year of 2021 was $742.7 million, which was an increase of $53.0 million, or 8%, from the year of 2020. Tax-equivalent net interest income for the year of 2021 was $747.0 million, an increase of $53.3 million, or 8%, from the year of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to lower interest expense on deposits and borrowings as well as due to an increase in average earning assets from the Carolina Financial acquisition and PPP loan fee income, partially offset by lower acquired loan accretion income. The net interest spread for the year of 2021 decreased 2 basis points from the year of 2020 due to a 45 basis point decrease in the average yield on earning assets partially offset by a 43 basis point decrease in the average cost of funds. Average earning assets for the year of 2021 increased $2.8 billion, or 13%, from the year of 2020 due to a $1.7 billion increase in average short-term investments, a $628.0 million increase in average investment securities and a $523.9 million increase in average net loans and loans held for sale. Net PPP loan fee income of $33.2 million was recognized in the year of 2021 driven primarily by loan forgiveness, as compared to $16.3 million for the year of 2020. Loan accretion on acquired loans was $33.9 million and $41.8 million for the year of 2021 and 2020, respectively, a decrease of $7.9 million. The net interest margin of 3.09% for the year of 2021 was a decrease of 15 basis points from the net interest margin of 3.24% for the year of 2020.
On a linked-quarter basis, net interest income for the fourth quarter of 2021 increased $2.1 million, or 1%, from the third quarter of 2021. Tax-equivalent net interest income for the fourth quarter of 2021 also increased $2.1 million, or 1%, from the third quarter of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets due to organic growth and the Community Bankers Trust acquisition as well as lower interest expense on deposits and borrowings partially offset by lower acquired loan accretion and PPP loan fee income. Average earning assets increased approximately $573.2 million, or 2%, from the third quarter of 2021 due to increases in average net loans and loans held for sale of $456.0 million and average securities of $333.4 million partially offset by a decrease in average short-term investments of $216.2 million. The net interest spread for the fourth quarter of 2021 of 2.82% decreased 1 basis point from the third quarter of 2021 due to a 5 basis point decrease in the average yield on earning assets partially offset by a 4 basis point decrease in the average cost of funds. Net PPP loan fee income for the fourth quarter of 2021 decreased $2.8 million from the third quarter of 2021 to $5.0 million. Loan accretion on acquired loans decreased $1.9 million from the third quarter of 2021 to $6.2 million for the fourth quarter of 2021. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 4 basis points from the net interest margin of 2.98% for the third quarter of 2021.
Credit Quality
United’s asset quality continues to be sound. At December 31, 2021, nonperforming loans were $90.8 million, or 0.50% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $105.6 million, including other real estate owned (“OREO”) of $14.8 million at December 31, 2021, represented 0.36% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.
The provision for credit losses was a net benefit of $7.4 million and $24.0 million for the fourth quarter and year of 2021, respectively, while the provision for credit losses was an expense of $16.8 million and $106.6 million, respectively, for the fourth quarter and year of 2020. The quarter and year of 2021 included a provision for loan losses of $12.3 million recorded on purchased non-credit deteriorated (“non-PCD”) loans from Community Bankers Trust. The year of 2020 included a provision for loan losses of $29.0 million recorded on non-PCD loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and year of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the fourth quarter of 2021 was a net benefit of $7.4 million compared to a net benefit of $7.8 million for the third quarter of 2021.
As of December 31, 2021, the allowance for loan losses was $216.0 million, or 1.20% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net charge-offs were $125 thousand for the fourth quarter of 2021 compared to net charge-offs of $6.9 million for the fourth quarter of 2020. Net charge-offs were $8.7 million for the year of 2021 compared to net charge-offs of $23.6 million for the year of 2020. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.003% and 0.05% for the fourth quarter and year of 2021, respectively, compared to annualized net charge-offs of 0.16% and 0.14% for the fourth quarter and year of 2020. Net recoveries were $1.2 million for the third quarter of 2021.
Noninterest Income
Noninterest income for the fourth quarter of 2021 was $54.0 million, which was a decrease of $40.0 million, or 43%, from the fourth quarter of 2020 primarily driven by a $43.5 million decrease in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower margin on loans sold in the secondary market. Partially offsetting the decreases in noninterest income were increases in fees from deposit services of $1.0 million, fees from trust services of $742 thousand and fees from brokerage services of $574 thousand.
Noninterest income for the year of 2021 was $278.1 million, which was a decrease of $76.7 million, or 22%, from the year of 2020. The decrease was driven primarily by a $94.4 million decrease in income from mortgage banking activities due primarily to a lower loan pipeline valuation and a lower margin on loans sold in the secondary market. The year of 2021 included fees from deposit services of $38.7 million, an increase of $3.9 million from the year of 2020, fees from trust services of $16.6 million, an increase of $2.6 million from the year of 2020 and fees from brokerage services of $15.6 million, an increase of $3.8 million from the year of 2020. Mortgage loan servicing income was $9.6 million for the year of 2021 compared to $6.2 million for the year of 2020, an increase of $3.4 million due to the Carolina Financial acquisition. The year of 2020 also included a gain on the sale of a bank premises of $2.2 million.
On a linked-quarter basis, noninterest income for the fourth quarter of 2021 decreased $14.6 million, or 21%, from the third quarter of 2021 primarily due to a decrease of $14.7 million in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower loan pipeline valuation.
Noninterest Expense
Noninterest expense for the fourth quarter of 2021 was $151.8 million, a decrease of $4.3 million, or 3%, from the fourth quarter of 2020. Employee compensation decreased $5.5 million due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by $2.5 million of merger-related expenses from the Community Bankers Trust acquisition as well as additional employees from the acquisition. OREO expense decreased $2.1 million due to a decrease in net losses on the sale of OREO properties and fewer declines in the fair value of OREO properties. Partially offsetting the decreases in noninterest expense were increases in data processing expense of $3.6 million primarily due to $3.5 million of merger-related expenses associated with the Community Bankers Trust acquisition. Other expense increased $1.9 million driven by an increase in the reserve for unfunded loan commitments of $2.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust.
Noninterest expense for the year of 2021 was $581.9 million, an increase of $3.7 million, or less than 1%, from the year of 2020. Employee compensation increased $5.3 million from the year of 2020 primarily due to the Carolina Financial and Community Bankers Trust acquisitions partially offset by lower employee compensation expense related to mortgage banking production. Additionally, noninterest expense increased slightly from the year of 2020 due to increases of $5.1 million in equipment expense, $5.0 million in employee benefits and $2.8 million in mortgage loan servicing expense and impairment. The increases in equipment expense, employee benefits and mortgage loan servicing expense and impairment were mainly from the Carolina Financial acquisition. Offsetting the increases in noninterest expense was a decrease in data processing expense of $4.0 million, due to a penalty of $9.7 million to terminate Carolina Financial’s data processing contract incurred in the second quarter of 2020, partially offset by $3.5 million of merger-related termination and conversion expenses associated with the Community Bankers Trust acquisition in the fourth quarter of 2021. The year of 2020 also included $10.4 million in prepayment penalties on the early payoff of FHLB advances compared to $15 thousand for the year of 2021.
On a linked-quarter basis, noninterest expense for the fourth quarter of 2021 increased $9.5 million, or 7%, from the third quarter of 2021 primarily due to an increase of $4.1 million in employee compensation, $4.2 million in data processing and $3.3 million in other expense. The increases in employee compensation and data processing expense were primarily due to the Community Bankers Trust acquisition. Within other expense, the largest driver of the increase was an increase in the reserve for unfunded loan commitments of $1.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust. Partially offsetting the increases in noninterest expense were decreases in employee benefits of $2.3 million and mortgage loan servicing expense and impairment of $1.0 million.
Income Tax Expense
For the fourth quarter of 2021, income tax expense was $19.5 million as compared to $20.8 million for the fourth quarter of 2020 primarily due to lower earnings partially offset by a higher effective tax rate. For the year of 2021, income tax expense was $95.1 million as compared to $70.7 million for the year of 2020 primarily due to higher earnings and a slightly higher effective tax rate. On a linked-quarter basis, income tax expense decreased $4.1 million primarily due to lower earnings. United’s effective tax rate was 20.9% for the fourth quarter of 2021, 18.4% for the fourth quarter of 2020 and 20.4% for the third quarter of 2021. For the year of 2021 and 2020, United’s effective tax rate was 20.6% and 19.7%, respectively.
Regulatory Capital
United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.4% at December 31, 2021, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.4%, 13.4% and 11.0%, respectively. The December 31, 2021 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%.
About United Bankshares, Inc.
As of December 31, 2021, United had consolidated assets of approximately $29.3 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".
Cautionary Statements
The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2021 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, 2021 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, return on 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, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, 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; risks relating to the merger with Community Bankers Trust, including the successful integration of operations of Community Bankers Trust, the expected growth opportunities and costs savings from the merger, and deposit attrition, operating costs, customer losses and business disruption following the merger; 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, 2020, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
Three Months Ended
Year Ended
EARNINGS SUMMARY:
December
2021
December
2020
December
2021
December
2020
Interest income
$
195,194
$
208,914
$
795,117
$
798,382
Interest expense
11,516
16,925
52,383
108,609
Net interest income
183,678
191,989
742,734
689,773
Provision for credit losses
(7,405
)
16,751
(23,970
)
106,562
Noninterest income
54,049
94,082
278,092
354,746
Noninterest expense
151,789
156,117
581,943
578,217
Income before income taxes
93,343
113,203
462,853
359,740
Income taxes
19,491
20,833
95,115
70,717
Net income
$
73,852
$
92,370
$
367,738
$
289,023
PER COMMON SHARE:
Net income:
Basic
$
0.56
$
0.71
$
2.84
$
2.40
Diluted
0.56
0.71
2.83
2.40
Cash dividends
$
0.36
$
0.35
1.41
1.40
Book value
34.60
33.27
Closing market price
$
36.28
$
32.40
Common shares outstanding:
Actual at period end, net of treasury shares
136,392,758
129,188,507
Weighted average-basic
130,939,640
129,371,600
129,276,452
120,017,247
Weighted average-diluted
131,295,816
129,479,390
129,512,853
120,090,232
FINANCIAL RATIOS:
Return on average assets
1.04
%
1.41
%
1.35
%
1.20
%
Return on average shareholders’ equity
6.44
%
8.51
%
8.30
%
7.30
%
Return on average tangible equity (non-GAAP)(1)
10.87
%
14.72
%
14.18
%
12.90
%
Average equity to average assets
16.22
%
16.54
%
16.26
%
16.39
%
Net interest margin
2.94
%
3.33
%
3.09
%
3.24
%
PERIOD END BALANCES:
December 31
2021
December 31
2020
December 31
2019
September 30
2021
Assets
$
29,328,902
$
26,184,247
$
19,662,324
$
27,507,517
Earning assets
26,083,089
23,172,403
17,344,638
24,415,973
Loans & leases, net of unearned income
18,023,648
17,591,413
13,712,129
16,743,629
Loans held for sale
504,416
718,937
387,514
493,299
Investment securities
4,295,749
3,186,184
2,669,797
3,646,065
Total deposits
23,350,263
20,585,160
13,852,421
21,822,609
Shareholders’ equity
4,718,628
4,297,620
3,363,833
4,430,766
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
2021
2020
2021
2021
2021
Interest & Loan Fees Income (GAAP)
$
195,194
$
208,914
$
194,080
$
200,186
$
205,657
Tax equivalent adjustment
1,037
1,042
1,059
1,075
1,047
Interest & Fees Income (FTE) (non-GAAP)
196,231
209,956
195,139
201,261
206,704
Interest Expense
11,516
16,925
12,501
13,669
14,697
Net Interest Income (FTE) (non-GAAP)
184,715
193,031
182,638
187,592
192,007
Provision for Credit Losses
(7,405
)
16,751
(7,829
)
(8,879
)
143
Noninterest Income:
Fees from trust services
4,327
3,585
4,269
4,193
3,763
Fees from brokerage services
3,699
3,125
3,883
3,654
4,323
Fees from deposit services
10,509
9,501
9,888
9,396
8,896
Bankcard fees and merchant discounts
1,580
1,129
1,473
1,368
1,064
Other charges, commissions, and fees
753
753
703
775
759
Income from bank-owned life insurance
1,223
1,479
2,556
1,658
1,403
Income from mortgage banking activities
27,342
70,793
42,012
36,943
65,395
Mortgage loan servicing income
2,435
2,334
2,429
2,386
2,355
Net gain on the sale of bank premises
0
0
0
0
0
Net (losses) gains on investment securities
(39
)
589
82
24
2,609
Other noninterest income
2,220
794
1,329
2,449
2,006
Total Noninterest Income
54,049
94,082
68,624
62,846
92,573
Noninterest Expense:
Employee compensation
71,542
77,001
67,459
68,557
72,412
Employee benefits
10,819
12,103
13,132
14,470
15,450
Net occupancy
10,653
10,979
10,339
10,101
10,941
Data processing
10,852
7,280
6,612
6,956
7,026
Amortization of intangibles
1,509
1,691
1,466
1,467
1,466
OREO expense
1,004
3,069
387
372
3,625
Equipment expense
6,819
6,396
7,286
5,830
6,044
FDIC insurance expense
2,626
2,250
1,920
1,800
2,000
Mortgage loan servicing expense and impairment
2,217
3,482
3,253
3,599
3,177
Prepayment penalties on FHLB borrowings
15
0
0
0
0
Other noninterest expense
33,733
31,866
30,422
25,799
26,786
Total Noninterest Expense
151,789
156,117
142,276
138,951
148,927
Income Before Income Taxes (FTE) (non-GAAP)
94,380
114,245
116,815
120,366
135,510
Tax equivalent adjustment
1,037
1,042
1,059
1,075
1,047
Income Before Income Taxes (GAAP)
93,343
113,203
115,756
119,291
134,463
Taxes
19,491
20,833
23,604
24,455
27,565
Net Income
$
73,852
$
92,370
$
92,152
$
94,836
$
106,898
MEMO: Effective Tax Rate
20.88
%
18.40
%
20.39
%
20.50
%
20.50
%
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
2021
2020
2019
2018
Interest & Loan Fees Income (GAAP)
$
795,117
$
798,382
$
762,562
$
717,715
Tax equivalent adjustment
4,218
3,888
3,735
4,328
Interest & Fees Income (FTE) (non-GAAP)
799,335
802,270
766,297
722,043
Interest Expense
52,383
108,609
184,640
129,070
Net Interest Income (FTE) (non-GAAP)
746,952
693,661
581,657
592,973
Provision for Credit Losses
(23,970
)
106,562
21,313
22,013
Noninterest Income:
Fees from trust services
16,552
13,903
13,873
12,930
Fees from brokerage services
15,559
11,758
10,136
9,347
Fees from deposit services
38,689
34,833
33,768
33,973
Bankcard fees and merchant discounts
5,485
4,066
4,674
5,168
Other charges, commissions, and fees
2,990
2,596
2,241
2,228
Income from bank-owned life insurance
6,840
7,217
7,339
5,045
Income from mortgage banking activities
171,692
266,094
76,951
58,109
Mortgage loan servicing income
9,605
6,213
0
0
Net gain on the sale of bank premises
0
2,229
0
2,763
Net gains (losses) on investment securities
2,676
3,155
175
(2,618
)
Other noninterest income
8,004
2,682
1,327
1,767
Total Noninterest Income
278,092
354,746
150,484
128,712
Noninterest Expense:
Employee compensation
279,970
274,661
173,962
164,468
Employee benefits
53,871
48,870
35,745
36,172
Net occupancy
42,034
41,303
34,850
36,462
Data processing
31,446
35,420
22,232
23,800
Amortization of intangibles
5,908
6,605
7,016
8,039
OREO expense
5,388
5,748
5,336
3,444
Equipment expense
25,979
20,861
14,210
13,846
FDIC insurance expense
8,346
10,132
8,070
11,464
Mortgage loan servicing expense and impairment
12,246
9,431
423
271
Prepayment penalties on FHLB borrowings
15
10,385
5,105
0
Other noninterest expense
116,740
114,801
75,705
70,213
Total Noninterest Expense
581,943
578,217
382,654
368,179
Income Before Income Taxes (FTE) (non-GAAP)
467,071
363,628
328,174
331,493
Tax equivalent adjustment
4,218
3,888
3,735
4,328
Income Before Income Taxes (GAAP)
462,853
359,740
324,439
327,165
Taxes
95,115
70,717
64,340
70,823
Net Income
$
367,738
$
289,023
$
260,099
$
256,342
MEMO: Effective Tax Rate
20.55
%
19.66
%
19.83
%
21.65
%
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 2021
December 2020
December 31
December 31
December 31
Q-T-D Average
Q-T-D Average
2021
2020
2019
Cash & Cash Equivalents
$
3,913,480
$
2,048,915
$
3,758,170
$
2,209,068
$
837,493
Securities Available for Sale
3,669,387
2,849,102
4,042,699
2,953,359
2,437,296
Less: Allowance for credit losses
0
0
0
0
0
Net available for sale securities
3,669,387
2,849,102
4,042,699
2,953,359
2,437,296
Securities Held to Maturity
1,020
1,235
1,020
1,235
1,446
Less: Allowance for credit losses
(27
)
(21
)
(19
)
(23
)
0
Net held to maturity securities
993
1,214
1,001
1,212
1,446
Equity Securities
12,161
10,399
12,404
10,718
8,894
Other Investment Securities
230,535
218,741
239,645
220,895
222,161
Total Securities
3,913,076
3,079,456
4,295,749
3,186,184
2,669,797
Total Cash and Securities
7,826,556
5,128,371
8,053,919
5,395,252
3,507,290
Loans held for sale
482,387
720,896
504,416
718,937
387,514
Commercial Loans & Leases
13,028,313
13,296,380
13,809,735
13,165,497
9,399,170
Mortgage Loans
2,908,187
3,269,073
3,008,410
3,197,274
3,107,721
Consumer Loans
1,240,676
1,253,421
1,233,162
1,259,812
1,206,657
Gross Loans
17,177,176
17,818,874
18,051,307
17,622,583
13,713,548
Unearned income
(27,666
)
(38,502
)
(27,659
)
(31,170
)
(1,419
)
Loans & Leases, net of unearned income
17,149,510
17,780,372
18,023,648
17,591,413
13,712,129
Allowance for Loan & Leases Losses
(218,550
)
(225,918
)
(216,016
)
(235,830
)
(77,057
)
Net Loans
16,930,960
17,554,454
17,807,632
17,355,583
13,635,072
Mortgage Servicing Rights
22,851
20,766
23,144
20,955
0
Goodwill
1,833,187
1,794,997
1,886,494
1,796,848
1,478,014
Other Intangibles
22,954
27,580
24,413
26,923
29,931
Operating Lease Right-of-Use Asset
75,254
72,090
81,942
69,520
57,783
Other Real Estate Owned
15,451
26,316
14,823
22,595
15,515
Other Assets
857,680
771,233
932,119
777,634
551,205
Total Assets
$
28,067,280
$
26,116,703
$
29,328,902
$
26,184,247
$
19,662,324
MEMO: Interest-earning Assets
$
24,935,489
$
23,122,784
$
26,083,089
$
23,172,403
$
17,344,638
Interest-bearing Deposits
$
13,653,822
$
13,018,640
$
14,369,716
$
13,179,900
$
9,231,059
Noninterest-bearing Deposits
8,678,093
7,495,594
8,980,547
7,405,260
4,621,362
Total Deposits
22,331,915
20,514,234
23,350,263
20,585,160
13,852,421
Short-term Borrowings
127,731
144,177
128,844
142,300
374,654
Long-term Borrowings
816,518
901,655
817,394
864,369
1,838,029
Total Borrowings
944,249
1,045,832
946,238
1,006,669
2,212,683
Operating Lease Liability
80,118
75,805
86,703
73,213
61,342
Other Liabilities
159,364
161,580
227,070
221,585
172,045
Total Liabilities
23,515,646
21,797,451
24,610,274
21,886,627
16,298,491
Preferred Equity
0
0
0
0
0
Common Equity
4,551,634
4,319,252
4,718,628
4,297,620
3,363,833
Total Shareholders' Equity
4,551,634
4,319,252
4,718,628
4,297,620
3,363,833
Total Liabilities & Equity
$
28,067,280
$
26,116,703
$
29,328,902
$
26,184,247
$
19,662,324
MEMO: Interest-bearing Liabilities
$
14,598,071
$
14,064,472
$
15,315,954
$
14,186,569
$
11,443,742
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:
2021
2020
2021
2021
2021
Earnings Per Share:
Basic
$
0.56
$
0.71
$
0.71
$
0.73
$
0.83
Diluted
$
0.56
$
0.71
$
0.71
$
0.73
$
0.83
Common Dividend Declared Per Share
$
0.36
$
0.35
$
0.35
$
0.35
$
0.35
High Common Stock Price
$
39.41
$
32.86
$
37.12
$
42.50
$
41.61
Low Common Stock Price
$
33.34
$
21.19
$
31.74
$
36.19
$
31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic
130,939,640
129,371,600
128,762,815
128,750,851
128,635,740
Diluted
131,295,816
129,479,390
128,960,220
129,033,988
128,890,861
Common Dividends
$
46,564
$
45,442
$
45,271
$
45,268
$
45,254
Dividend Payout Ratio
63.05
%
49.20
%
49.13
%
47.73
%
42.33
%
Year Ended
December
December
December
December
Year-to-Date Share Data:
2021
2020
2019
2018
Earnings Per Share:
Basic
$
2.84
$
2.40
$
2.55
$
2.46
Diluted
$
2.83
$
2.40
$
2.55
$
2.45
Common Dividend Declared Per Share
$
1.41
$
1.40
$
1.37
$
1.36
Average Shares Outstanding (Net of Treasury Stock):
Basic
129,276,452
120,017,247
101,585,599
104,015,976
Diluted
129,512,853
120,090,232
101,852,577
104,298,825
Common Dividends
$
182,357
$
171,876
$
139,508
$
141,610
Dividend Payout Ratio
49.59
%
59.47
%
53.64
%
55.24
%
December 31
December 31
September 30
June 30
March 31
EOP Share Data:
2021
2020
2021
2021
2021
Book Value Per Share
$
34.60
$
33.27
$
34.29
$
34.01
$
33.54
Tangible Book Value Per Share (non-GAAP) (1)
$
20.59
$
19.15
$
20.11
$
19.81
$
19.38
52-week High Common Stock Price
$
42.50
$
39.07
$
42.50
$
42.50
$
41.61
Date
05/18/21
01/02/20
05/18/21
05/18/21
03/18/21
52-week Low Common Stock Price
$
31.57
$
19.67
$
21.19
$
20.57
$
20.57
Date
1/29/21
03/23/20
10/01/20
09/25/20
09/25/20
EOP Shares Outstanding (Net of Treasury Stock):
136,392,758
129,188,507
129,203,774
129,203,593
129,175,800
Memorandum Items:
EOP Employees (full-time equivalent)
3,143
3,051
2,986
3,012
3,033
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,718,628
$
4,297,620
$
4,430,766
$
4,393,713
$
4,332,698
Less: Total Intangibles
(1,910,907
)
(1,823,771
)
(1,832,564
)
(1,834,030
)
(1,829,495
)
Tangible Equity (non-GAAP)
$
2,807,721
$
2,473,849
$
2,598,202
$
2,559,683
$
2,503,203
÷ EOP Shares Outstanding (Net of Treasury Stock)
136,392,758
129,188,507
129,203,774
129,203,593
129,175,800
Tangible Book Value Per Share (non-GAAP)
$
20.59
$
19.15
$
20.11
$
19.81
$
19.38
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
2021
2020
2021
2021
2021
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale
4.04
%
4.18
%
4.15
%
4.18
%
4.26
%
Investment Securities
1.72
%
2.08
%
1.71
%
1.87
%
1.93
%
Money Market Investments/FFS
0.28
%
0.42
%
0.26
%
0.24
%
0.34
%
Average Earning Assets Yield
3.13
%
3.62
%
3.18
%
3.37
%
3.56
%
Interest-bearing Deposits
0.26
%
0.43
%
0.29
%
0.33
%
0.37
%
Short-term Borrowings
0.52
%
0.55
%
0.54
%
0.54
%
0.51
%
Long-term Borrowings
1.23
%
1.15
%
1.23
%
1.22
%
1.23
%
Average Liability Costs
0.31
%
0.48
%
0.35
%
0.39
%
0.42
%
Net Interest Spread
2.82
%
3.14
%
2.83
%
2.98
%
3.14
%
Net Interest Margin
2.94
%
3.33
%
2.98
%
3.14
%
3.30
%
Selected Financial Ratios:
Return on Average Assets
1.04
%
1.41
%
1.33
%
1.41
%
1.64
%
Return on Average Shareholders’ Equity
6.44
%
8.51
%
8.23
%
8.69
%
9.97
%
Return on Average Tangible Equity (non-GAAP) (1)
10.87
%
14.72
%
14.03
%
14.95
%
17.20
%
Efficiency Ratio
63.85
%
54.57
%
56.86
%
55.72
%
52.53
%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
73,852
$
92,370
$
92,152
$
94,836
$
106,898
(b) Number of Days
92
92
92
91
90
Average Total Shareholders' Equity (GAAP)
$
4,551,634
$
4,319,252
$
4,440,107
$
4,378,898
$
4,346,750
Less: Average Total Intangibles
(1,856,141
)
(1,822,577
)
(1,833,449
)
(1,834,920
)
(1,825,639
)
(c) Average Tangible Equity (non-GAAP)
$
2,695,493
$
2,496,675
$
2,606,658
$
2,543,978
$
2,521,111
Return on Average Tangible Equity (non-GAAP) [(a) / (b)]
x 365 or 366 / (c)
10.87
%
14.72
%
14.03
%
14.95
%
17.20
%
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
2021
2020
2019
2018
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale
4.16
%
4.27
%
4.85
%
4.77
%
Investment Securities
1.80
%
2.33
%
2.86
%
2.73
%
Money Market Investments/FFS
0.28
%
0.65
%
2.91
%
2.29
%
Average Earning Assets Yield
3.30
%
3.75
%
4.47
%
4.36
%
Interest-bearing Deposits
0.31
%
0.67
%
1.41
%
0.97
%
Short-term Borrowings
0.52
%
0.70
%
1.67
%
1.00
%
Long-term Borrowings
1.23
%
1.76
%
2.56
%
2.34
%
Average Liability Costs
0.37
%
0.80
%
1.60
%
1.15
%
Net Interest Spread
2.93
%
2.95
%
2.87
%
3.21
%
Net Interest Margin
3.09
%
3.24
%
3.39
%
3.58
%
Selected Financial Ratios:
Return on Average Assets
1.35
%
1.20
%
1.34
%
1.36
%
Return on Average Shareholders’ Equity
8.30
%
7.30
%
7.80
%
7.84
%
Return on Average Tangible Equity (non-GAAP) (1)
14.18
%
12.90
%
14.26
%
14.65
%
Efficiency Ratio
57.01
%
55.36
%
52.53
%
51.32
%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
367,738
$
289,023
$
260,099
$
256,342
Average Total Shareholders' Equity (GAAP)
4,430,688
3,956,969
3,336,075
3,268,944
Less: Average Total Intangibles
(1,837,609
)
(1,716,738
)
(1,511,501
)
(1,519,174
)
(b) Average Tangible Equity (non-GAAP)
$
2,593,079
$
2,240,231
$
1,824,574
$
1,749,770
Return on Average Tangible Equity (non-GAAP) [(a) / (b)]
14.18
%
12.90
%
14.26
%
14.65
%
December 31
December 31
December 31
December 31
Selected Financial Ratios:
2021
2020
2019
2018
Loans & Leases, net of unearned income / Deposit Ratio
77.19
%
85.46
%
98.99
%
95.91
%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income
1.20
%
1.34
%
0.56
%
0.57
%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income
1.37
%
1.45
%
0.57
%
0.58
%
Nonaccrual Loans / Loans & Leases, net of unearned income
0.20
%
0.36
%
0.46
%
0.51
%
90-Day Past Due Loans/ Loans & Leases, net of unearned income
0.10
%
0.08
%
0.07
%
0.11
%
Non-performing Loans/ Loans & Leases, net of unearned income
0.50
%
0.75
%
0.96
%
1.06
%
Non-performing Assets/ Total Assets
0.36
%
0.59
%
0.75
%
0.83
%
Primary Capital Ratio
16.79
%
17.22
%
17.44
%
17.23
%
Shareholders' Equity Ratio
16.09
%
16.41
%
17.11
%
16.89
%
Price / Book Ratio
1.05
x
0.97
x
1.17
x
0.98
x
Price / Earnings Ratio
12.82
x
13.50
x
15.14
x
12.71
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
December
December
September
June
March
Mortgage Banking Segment Data:
2021
2020
2021
2021
2021
Applications
$
1,534,311
$
2,284,532
$
1,893,870
$
2,029,846
$
2,630,426
Loans originated
1,287,629
1,979,284
1,385,871
1,658,128
1,910,619
Loans sold
$
1,273,014
$
2,065,400
$
1,470,928
$
1,877,772
$
1,817,884
Purchase money % of loans closed
69
%
49
%
69
%
69
%
43
%
Realized gain on sales and fees as a % of loans sold
3.02
%
4.10
%
3.00
%
2.90
%
4.16
%
Net interest income
$
2,609
$
2,918
$
2,367
$
2,871
$
2,650
Other income
30,921
73,082
45,023
39,765
67,507
Other expense
29,147
41,193
31,787
36,391
41,183
Income taxes
876
5,656
3,179
1,280
5,940
Net income
$
3,507
$
29,151
$
12,424
$
4,965
$
23,034
Year Ended
December
December
December
December
Mortgage Banking Segment Data:
2021
2020
2019
2018
Applications
$
8,088,453
$
9,988,227
$
4,330,000
$
3,912,000
Loans originated
6,242,246
6,648,247
2,941,722
2,619,454
Loans sold
$
6,439,598
$
6,393,394
$
2,804,451
$
2,608,242
Purchase money % of loans closed
61
%
47
%
72
%
83
%
Realized gain on sales and fees as a % of loans sold
3.31
%
3.63
%
2.86
%
2.72
%
Net interest income
$
10,497
$
8,853
$
916
$
1,315
Other income
183,216
276,185
83,884
68,555
Other expense
138,508
140,628
72,288
72,632
Income taxes
11,275
27,698
2,355
(505
)
Net income (loss)
$
43,930
$
116,712
$
10,157
$
(2,257
)
December 31
December 31
September 30
June 30
March 31
Period End Mortgage Banking Segment Data:
2021
2020
2021
2021
2021
Locked pipeline
$
448,889
$
989,640
$
648,706
$
660,258
$
979,842
Balance of loans serviced
$
3,698,998
$
3,587,953
$
3,723,206
$
3,674,023
$
3,585,890
Number of loans serviced
25,198
25,614
25,583
25,526
25,443
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
December 31
December 31
September 30
June 30
March 31
Asset Quality Data:
2021
2020
2021
2021
2021
EOP Non-Accrual Loans
$
36,028
$
62,718
$
37,689
$
41,182
$
48,985
EOP 90-Day Past Due Loans
18,879
13,832
14,827
14,135
15,719
EOP Restructured Loans (1)
35,856
55,657
37,752
47,271
51,529
Total EOP Non-performing Loans
$
90,763
$
132,207
$
90,268
$
102,588
$
116,233
EOP Other Real Estate Owned
14,823
22,595
16,696
18,474
18,690
Total EOP Non-performing Assets
$
105,586
$
154,802
$
106,964
$
121,062
$
134,923
Three Months Ended
December
December
September
June
March
Allowance for Loan Losses:
2021
2020
2021
2021
2021
Beginning Balance
$
210,891
$
225,812
$
217,545
$
231,582
$
235,830
Cumulative Effect Adjustment for CECL
0
0
0
0
0
210,891
225,812
217,545
231,582
235,830
Initial allowance for acquired PCD loans
12,629
0
0
0
0
Gross Charge-offs
(4,205
)
(10,120
)
(2,004
)
(6,131
)
(6,957
)
Recoveries
4,080
3,203
3,173
910
2,415
Net (Charge-offs) Recoveries
(125
)
(6,917
)
1,169
(5,221
)
(4,542
)
Provision for Loan & Lease Losses
(7,379
)
16,935
(7,823
)
(8,816
)
294
Ending Balance
216,016
235,830
210,891
217,545
231,582
Reserve for lending-related commitments
31,442
19,250
25,191
20,897
20,024
Allowance for Credit Losses (2)
$
247,458
$
255,080
$
236,082
$
238,442
$
251,606
Year Ended
December
December
December
December
Allowance for Loan Losses:
2021
2020
2019
2018
Beginning Balance
$
235,830
$
77,057
$
76,703
$
76,627
Cumulative Effect Adjustment for CECL
0
57,442
0
0
235,830
134,499
76,703
76,627
Initial allowance for acquired PCD loans
12,629
18,635
0
0
Gross Charge-offs
(19,297
)
(32,983
)
(29,110
)
(28,606
)
Recoveries
10,578
9,386
8,151
6,669
Net (Charge-offs)
(8,719
)
(23,597
)
(20,959
)
(21,937
)
Provision for Loan & Lease Losses
(23,724
)
106,293
21,313
22,013
Ending Balance
216,016
235,830
77,057
76,703
Reserve for lending-related commitments
31,442
19,250
1,733
1,389
Allowance for Credit Losses (2)
$
247,458
$
255,080
$
78,790
$
78,092
Notes:
(1) Restructured loans with an aggregate balance of $22,421, $41,185, $24,662, $32,471, and $38,023 at December 31, 2021, December 31, 2020, September 30, 2021,
June 30, 2021 and March 31, 2021, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an
aggregate balance of $102 thousand and $46 thousand at December 31, 2021 and June 30, 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/20220127005201/en/