Market Overview

United Bankshares, Inc. Announces Earnings for the Third Quarter and First Nine Months of 2012

Share:
WASHINGTON & CHARLESTON, W.Va.--(BUSINESS WIRE)--

United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2012. Earnings for the third quarter of 2012 were $19.3 million or $0.38 per diluted share while earnings for the first nine months of 2012 were $61.4 million or $1.22 per diluted share. Earnings for the third quarter of 2011 were $20.0 million or $0.40 per diluted share while earnings for the first nine months of 2011 were $55.4 million or $1.21 per diluted share.

The results for the third quarter and first nine months of 2012 included an accrual of $3.3 million with respect to a settlement of claims asserted in class actions against United Bank, Inc. of West Virginia. For further details regarding this settlement, please refer to Item 8.01 of the Form 8-K filed with the Securities Exchange Commission on this date. Also included in the results for the third quarter and first nine months of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 million and $5.4 million, respectively, on certain investment securities.

The results for the third quarter and first nine months of 2011 included before-tax, other-than-temporary impairment charges of $7.9 million and $14.1 million, respectively, on certain investment securities. In addition, United completed its acquisition of Centra Financial Holdings, Inc. (Centra) during the third quarter of 2011. As a result, comparisons for the first nine months of 2012 to the same time period in 2011 are impacted by increased levels of average balances, income, and expense due to the acquisition. At consummation, Centra had assets of approximately $1.3 billion, loans of $1.0 billion, deposits of $1.1 billion and shareholders' equity of $131 million.

Third quarter of 2012 results produced a return on average assets of 0.92% and a return on average equity of 7.76%, respectively. For the first nine months of 2012, United's return on average assets was 0.97% while the return on average equity was 8.32%. United's annualized returns on average assets and average equity were 0.95% and 8.26%, respectively, for the third quarter of 2011 while the returns on average assets and average equity was 0.98% and 8.62%, respectively, for the first nine months of 2011.

United's asset quality continues to outperform its peers. United's percentage of nonperforming loans to loans, net of unearned income of 1.53% at September 30, 2012 compares favorably to the most recently reported percentage of 2.93% at June 30, 2012 for United's Federal Reserve peer group. At September 30, 2012, nonperforming loans were $98.4 million, up from nonperforming loans of $79.7 million or 1.28% of loans, net of unearned income, at December 31, 2011. During the third quarter of 2012, loans totaling $20.5 million to two commercial customers were placed on nonaccrual status. The loss potential on these loans has been properly evaluated and allocated within the company's allowance for loan losses. As of September 30, 2012, the allowance for loan losses was $73.7 million or 1.15% of loans, net of unearned income, which was comparable to $73.9 million or 1.18% of loans, net of unearned income, at December 31, 2011. Total nonperforming assets of $148.5 million, including OREO of $50.0 million at September 30, 2012, represented 1.77% of total assets which also compares favorably to the most recently reported percentage of 2.33% at June 30, 2012 for United's Federal Reserve peer group.

United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 13.8% at September 30, 2012 while its Tier I capital and leverage ratios are 12.6% and 10.7%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Tier I capital ratio of 6% and a leverage ratio of 5%.

Tax-equivalent net interest income for the third quarter of 2012 was $71.6 million, a decrease of $951 thousand or 1% from the third quarter of 2011 due mainly to a decrease in the average yield on earning assets. The third quarter of 2012 average yield on earning assets decreased 13 basis points from the third quarter of 2011. In addition, average earning assets decreased $90.5 million or 1% from the third quarter of 2011 as average short-term investments and average investment securities declined $199.5 million and $87.9 million, respectively. Average net loans did increase $197.0 million or 3% for the third quarter of 2012 from the third quarter of 2011 partially offsetting the decreases in average short-term investments and investment securities. Partially offsetting the decreases to tax-equivalent net interest income for the third quarter of 2012 was a decline of 14 basis points in the average cost of funds as compared to the third quarter of 2011. The net interest margin for the third quarter of 2012 was 3.87%, which equaled the net interest margin for the third quarter of 2011.

Tax-equivalent net interest income for the first nine months of 2012 was $212.8 million, an increase of $19.2 million or 10% from the first nine months of 2011. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Centra acquisition. Average earning assets increased $787.6 million or 12% from the first nine months of 2011. Average net loans increased $731.7 million or 13% for the first nine months of 2012. In addition, the average cost of funds declined 23 basis points from the first nine months of 2011. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2012 was a decline of 27 basis points in the average yield on earning assets as compared to the first nine months of 2011. The net interest margin for the first nine months of 2012 was 3.80%, which was a decrease of 7 basis points from a net interest margin of 3.87% for the first nine months of 2011.

On a linked-quarter basis, United's tax-equivalent net interest income for the third quarter of 2012 increased $951 thousand or 1% from the second quarter of 2012 due mainly to increases in average net loans and the average yield on earning assets. Average net loans increased $137.2 million or 2%. The third quarter of 2012 average yield on earning assets increased 7 basis points while the average cost of funds decreased 3 basis points from the second quarter of 2012. Overall, average earning assets decreased $165.5 million or 2% during the quarter as average short-term investments and average investment securities decreased $292.1 million and $10.6 million, respectively. The net interest margin of 3.87% for the third quarter of 2012 was an increase of 11 basis points from the net interest margin of 3.76% for the second quarter of 2012.

For the quarters ended September 30, 2012 and 2011, the provision for loan losses was $4.3 million and $3.6 million, respectively, while the provision for the first nine months of 2012 was $11.9 million as compared to $12.9 million for the first nine months of 2011. Net charge-offs were $4.0 million and $3.3 million for the third quarter of 2012 and 2011, respectively, as compared to $12.0 million and $12.4 million for the first nine months of 2012 and 2011. Annualized net charge-offs as a percentage of average loans were 0.25% and 0.26% for the third quarter and first nine months of 2012, respectively. United's most recently reported Federal Reserve peer group's net charge-offs to average loans percentage was 0.65% for the second quarter of 2012.

Noninterest income for the third quarter of 2012 was $16.6 million, which was an increase of $5.7 million from the third quarter of 2011. Included in noninterest income for the third quarter of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 million on certain investment securities as compared to noncash, before-tax other-than-temporary impairment charges of $7.9 million on certain investment securities for the third quarter of 2011. Excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income for the third quarter of 2012 would have increased $367 thousand or 2% from the third quarter of 2011. This increase for the third quarter of 2012 was due primarily to increases of $890 thousand in income from trust and brokerage services due to increases in volume and the value of assets under management and $614 thousand in mortgage banking income due to increased production and sales of mortgage loans in the secondary market.

Noninterest income for the first nine months of 2012 was $49.5 million, which was an increase of $10.6 million from the first nine months of 2011. Included in noninterest income for the first nine months of 2012 were noncash, before-tax, other-than-temporary impairment charges of $5.4 million on certain investment securities as compared to noncash, before-tax other-than-temporary impairment charges of $14.1 million on certain investment securities for the first nine months of 2011. Excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income for the first nine months of 2012 would have increased $3.3 million or 6% from the first nine months of 2011. This increase for the first nine months of 2012 was due primarily to increases of $2.1 million in income from trust and brokerage services due to increases in volume and the value of assets under management, $792 thousand in fees from deposit services due to an increase in check card income and $1.1 million in mortgage banking income due to increased production and sales of mortgage loans in the secondary market.

On a linked-quarter basis, noninterest income for the third quarter of 2012 was flat from the second quarter of 2012, increasing $47 thousand. Included in the results for the third quarter of 2012 and second quarter of 2012 were noncash, before-tax, other-than-temporary impairment charges of $2.3 million and $1.7 million, respectively. Excluding the results of the noncash, other-than-temporary impairment charges as well as net gains and losses from sales and calls of investment securities, noninterest income would have increased $692 thousand or 4% on a linked-quarter basis due primarily to increases of $336 thousand in mortgage banking income due to increased sales of mortgage loans in the secondary market and $157 thousand in income from trust and brokerage services due to increases in volume and the value of assets under management.

Noninterest expense for the third quarter of 2012 was $53.9 million, an increase of $5.0 million or 10% from the third quarter of 2011 due mainly to the previously mentioned accrual of $3.3 million for the litigation settlement amount related to overdraft claims against United. In addition, employee benefits increased $910 thousand due to higher pension costs and data processing expense increased $734 thousand due to a conversion to a new servicer.

Noninterest expense for the first nine months of 2012 was $155.4 million, an increase of $21.4 million or 16% from the first nine months of 2011 due partially to the previously mentioned litigation settlement accrual. In addition, employee compensation increased $6.3 million due to additional employees from the Centra merger and employee benefits increased $3.4 million due mainly to an increase in pension costs. The remainder of the increase in noninterest expense from the first nine months of 2011 was due mainly to the additional offices and equipment from the Centra merger.

On a linked-quarter basis, noninterest expense for the third quarter of 2012 increased $2.6 million or 5% from the second quarter of 2012. This increase was due primarily to the litigation settlement accrual as well as an increase of $1.0 million in data processing expense related to the overlap of data processors and the conversion to a new servicer.

During the third quarter of 2012, United's Board of Directors declared a cash dividend of $0.31 per share. United has increased its dividend to shareholders for 38 consecutive years. The annualized 2012 dividend of $1.24 equates to a yield of approximately 5% based on recent UBSI market prices.

United has consolidated assets of approximately $8.4 billion with 123 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares 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, 2012 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, 2012 and will adjust amounts preliminarily reported, if necessary.

Forward-Looking Statements

This press release contains certain forward-looking statements, including certain plans, expectations, goals and projections, which are subject to numerous assumptions, risks and uncertainties. Actual results could differ materially from those contained in or implied by such statements for a variety of factors including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature and extent of governmental actions and reforms; and rapidly changing technology and evolving banking industry standards.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

 
Three Months Ended Nine Months Ended
September 30

2012

  September 30

2011

September 30

2012

  September 30

2011

EARNINGS SUMMARY:
Interest income, taxable equivalent (non-GAAP) $ 82,888 $ 86,466 $ 249,010 $ 235,848
Interest expense 11,322 13,949 36,194 42,257
Net interest income, taxable equivalent (non-GAAP) 71,566 72,517 212,816 193,591
Taxable equivalent adjustment 1,552 1,765 4,781 4,855
Net interest income (GAAP) 70,014 70,752 208,035 188,736
Provision for loan losses 4,346 3,637 11,915 12,873
Noninterest income 16,634 10,978 49,547 38,963
Noninterest expenses 53,869 48,873 155,383 134,019
Income taxes 9,099 9,204 28,891 25,454
Net income $ 19,334 $ 20,016 $ 61,393 $ 55,353
 
PER COMMON SHARE:
Net income:
Basic $ 0.38 $ 0.40 $ 1.22 $ 1.21
Diluted 0.38 0.40 1.22 1.21
Cash dividends $ 0.31 $ 0.30 0.93 0.90
Book value 19.66 19.38
Closing market price $ 24.91 $ 20.09
Common shares outstanding:
Actual at period end, net of treasury shares 50,275,998 50,205,691
Weighted average- basic 50,276,074 49,628,087 50,262,089 45,656,304
Weighted average- diluted 50,295,162 49,636,382 50,298,998 45,692,106
 
FINANCIAL RATIOS:
Return on average assets 0.92 % 0.95 % 0.97 % 0.98 %
Return on average shareholders' equity 7.76 % 8.26 % 8.32 % 8.62 %
Average equity to average assets 11.92 % 11.47 % 11.72 % 11.39 %
Net interest margin 3.87 % 3.87 % 3.80 % 3.87 %
 
September 30

2012

September 30

2011

December 31

2011

June 30

2012

PERIOD END BALANCES:
Assets $ 8,381,378 $ 8,577,886 $ 8,451,470 $ 8,457,009
Earning assets 7,426,785 7,601,292 7,492,400 7,482,684
Loans, net of unearned income 6,422,613 6,253,295 6,230,777 6,308,983
Loans held for sale 12,905 7,378 3,902 9,279
Investment securities 766,713 871,898 824,219 722,854
Total deposits 6,753,924 6,927,975 6,819,010 6,860,441
Shareholders' equity 988,429 972,753 968,844 981,181
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 Year to Date
September September June March September September
2012   2011   2012   2012   2012   2011  
 
Interest & Loan Fees Income (GAAP) $ 81,336 $ 84,701 $ 81,105 $ 81,788 $ 244,229 $ 230,993
Tax equivalent adjustment   1,552   1,765   1,560     1,669     4,781     4,855  
Interest & Fees Income (FTE) (non-GAAP) 82,888 86,466 82,665 83,457 249,010 235,848
Interest Expense   11,322   13,949   12,050     12,822     36,194     42,257  
Net Interest Income (FTE) (non-GAAP) 71,566 72,517 70,615 70,635 212,816 193,591
 
Provision for Loan Losses 4,346 3,637 3,436 4,133 11,915 12,873
 
Non-Interest Income:
Fees from trust & brokerage services 4,170 3,280 4,013 3,984 12,167 10,027
Fees from deposit services 10,521 10,462 10,393 10,312 31,226 30,434
Bankcard fees and merchant discounts 866 1,237 738 647 2,251 2,475
Other charges, commissions, and fees 513 455 600 577 1,690 1,290
Income from bank owned life insurance 1,247 1,544 1,255 1,289 3,791 3,947
Mortgage banking income 819 205 483 318 1,620 570
Other non-interest revenue 686 1,272 648 658 1,992 2,722
Net other-than-temporary impairment losses (2,255 ) (7,922 ) (1,742 ) (1,377 ) (5,374 ) (14,128 )
Net gains on sales/calls of investment

securities

 

67

 

445

 

199

    (82 )  

184

   

1,626

 
Total Non-Interest Income   16,634   10,978   16,587     16,326     49,547     38,963  
 
Non-Interest Expense:
Employee compensation 17,258 16,970 17,965 17,907 53,130 46,855
Employee benefits 5,271 4,361 5,823 5,192 16,286 12,870
Net occupancy 5,060 5,051 5,321 5,042 15,423 13,578
Data processing 3,675 2,941 2,639 3,209 9,523 8,618
Amortization of intangibles 697 860 724 762 2,183 1,597
OREO expense 2,160 2,129 2,160 2,328 6,648 5,129
FDIC expense 1,489 2,308 1,495 1,555 4,539 6,972
Other expenses   18,259   14,253   15,125     14,267     47,651     38,400  
Total Non-Interest Expense   53,869   48,873   51,252     50,262     155,383     134,019  
 
Income Before Income Taxes (FTE) (non-GAAP) 29,985 30,985 32,514 32,566 95,065 85,662
 
Tax equivalent adjustment   1,552   1,765   1,560     1,669     4,781     4,855  
 
Income Before Income Taxes (GAAP) 28,433 29,220 30,954 30,897 90,284 80,807
 
Taxes   9,099   9,204   9,905     9,887     28,891     25,454  
 
Net Income $ 19,334   $ 20,016   $ 21,049   $ 21,010   $ 61,393   $ 55,353  
 
MEMO: Effective Tax Rate 32.00 % 31.50 % 32.00 % 32.00 % 32.00 % 31.50 %
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

       
Consolidated Balance Sheets
September 30 September 30
2012 2011 September 30 December 31 September 30
Q-T-D Average Q-T-D Average 2012   2011   2011  
 
Cash & Cash Equivalents $ 475,549 $ 652,478 $ 436,328 $ 636,003 $ 668,524
 
Securities Available for Sale 629,531 699,449 650,145 696,518 738,226
Held to Maturity Securities 52,998 62,572 52,929 59,289 62,114
Other Investment Securities   63,725     72,172     63,639     68,412     71,558  
Total Securities   746,254     834,193     766,713     824,219     871,898  
Total Cash and Securities   1,221,803     1,486,671     1,203,041     1,460,222     1,540,422  
 
Loans held for sale 10,295 3,859 12,905 3,902 7,378
 
Commercial Loans 4,548,687 4,275,255 4,628,401 4,378,345 4,370,792
Mortgage Loans 1,508,239 1,563,506 1,502,227 1,556,905 1,553,378
Consumer Loans   306,357     333,342     297,702     299,030     334,391  
 
Gross Loans 6,363,283 6,172,103 6,428,330 6,234,280 6,258,561
 
Unearned income   (5,711 )   (4,988 )   (5,717 )   (3,503 )   (5,266 )
 
Loans, net of unearned income 6,357,572 6,167,115 6,422,613 6,230,777 6,253,295
 
Allowance for Loan Losses (73,398 ) (73,504 ) (73,748 ) (73,874 ) (73,509 )
 
Goodwill 371,778 361,995 375,583 375,626 376,912
Other Intangibles   11,213     1,762     10,776     12,950     11,787  
Total Intangibles 382,991 363,757 386,359 388,576 388,699
 
Real Estate Owned 48,321 51,430 50,040 51,760 52,657
Other Assets   368,515     383,244     380,168     390,107     408,944  
 
Total Assets $ 8,316,099   $ 8,382,572   $ 8,381,378   $ 8,451,470   $ 8,577,886  
 
MEMO: Earning Assets $ 7,369,900   $ 7,460,381   $ 7,426,785   $ 7,492,400   $ 7,601,292  
 
Interest-bearing Deposits $ 4,959,606 $ 5,217,555 $ 4,946,725 $ 5,199,848 $ 5,314,303
Noninterest-bearing Deposits   1,754,351     1,557,654     1,807,199     1,619,162     1,613,672  
Total Deposits 6,713,957 6,775,209 6,753,924 6,819,010 6,927,975
 
Short-term Borrowings 280,319 248,829 288,482 254,766 260,320
Long-term Borrowings   287,661     354,482     285,000     345,366     355,433  
Total Borrowings 567,980 603,311 573,482 600,132 615,753
 
Other Liabilities   42,513     42,340     65,543     63,484     61,405  
 
Total Liabilities   7,324,450     7,420,860     7,392,949     7,482,626     7,605,133  
 
Preferred Equity --- --- --- --- ---
Common Equity   991,649     961,712     988,429     968,844     972,753  
Total Shareholders' Equity   991,649     961,712     988,429     968,844     972,753  
 
Total Liabilities & Equity $ 8,316,099   $ 8,382,572   $ 8,381,378   $ 8,451,470   $ 8,577,886  
 
MEMO: Interest-bearing Liabilities $ 5,527,586   $ 5,820,866   $ 5,520,207   $ 5,799,980   $ 5,930,056  
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 to Date
September September   June March September September
Quarterly/Year-to-Date Share Data: 2012 2011 2012 2012 2012 2011
 
Earnings Per Share:
Basic $ 0.38 $ 0.40 $ 0.42 $ 0.42 $ 1.22 $ 1.21
Diluted $ 0.38 $ 0.40 $ 0.42 $ 0.42 $ 1.22 $ 1.21
 
Common Dividend Declared Per Share: $ 0.31 $ 0.30 $ 0.31 $ 0.31 $ 0.93 $ 0.90
 
High Common Stock Price $ 26.40 $ 25.21 $ 29.45 $ 30.91 $ 30.91 $ 30.84
Low Common Stock Price $ 22.54 $ 18.78 $ 23.87 $ 27.36 $ 22.54 $ 18.78
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 50,276,074 49,628,087 50,274,665 50,235,374 50,262,089 45,656,304
Diluted 50,295,162 49,636,382 50,308,228 50,300,538 50,298,998 45,692,106
 
Memorandum Items:
 
Tax Applicable to Security Sales/Calls $ 23 $ 156 $ 70 $ (29 ) $ 64 $ 569
 
Common Dividends $ 15,589 $ 15,062 $ 15,605 $ 15,570 $ 46,764 $ 41,256
 
Dividend Payout Ratio 80.63 % 75.25 % 74.14 % 74.11 % 76.17 % 74.53 %
 
September September June March
EOP Share Data: 2012 2011 2012 2012
 
Book Value Per Share $ 19.66 $ 19.38 $ 19.52 $ 19.42
Tangible Book Value Per Share (1) $ 11.98 $ 11.63 $ 11.82 $ 11.71
 
52-week High Common Stock Price $ 30.91 $ 30.84 $ 30.91 $ 30.91
Date 03/19/12 01/19/11 03/19/12 03/19/12
52-week Low Common Stock Price $ 19.06 $ 18.78 $ 18.78 $ 18.78
Date 10/04/11 09/22/11 09/22/11 09/22/11
 
EOP Shares Outstanding (Net of Treasury Stock): 50,275,998 50,205,691 50,275,869 50,274,104
 
Memorandum Items:
 
EOP Employees (full-time equivalent) 1,597 1,632 1,626 1,637
 
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 988,429 $ 972,753 $ 981,181 $ 976,303
Less: Total Intangibles   (386,359 )   (388,699 )   (387,056 )   (387,766 )
Tangible Equity (non-GAAP) $ 602,070 $ 584,054 $ 594,125 $ 588,517
÷ EOP Shares Outstanding (Net of Treasury Stock) 50,275,998 50,205,691 50,275,869 50,274,104
Tangible Book Value Per Share (non-GAAP) $ 11.98 $ 11.63 $ 11.82 $ 11.71
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 to Date
September September June March September September
2012 2011 2012 2012 2012 2011
 
Selected Yields and Net Interest Margin:
 
Loans 4.85% 5.14% 5.01% 5.02% 4.96% 5.18%
Investment Securities 3.28% 3.48% 2.91% 3.08% 3.09% 3.79%
Money Market Investments/FFS 0.18% 0.27% 0.27% 0.26% 0.24% 0.31%
Average Earning Assets Yield 4.48% 4.61% 4.41% 4.47% 4.45% 4.72%
Interest-bearing Deposits 0.63% 0.74% 0.65% 0.67% 0.65% 0.87%
Short-term Borrowings 0.08% 0.08% 0.10% 0.09% 0.09% 0.06%
Long-term Borrowings 4.73% 4.73% 4.78% 4.83% 4.78% 4.77%
Average Liability Costs 0.81% 0.95% 0.84% 0.89% 0.85% 1.08%
Net Interest Spread 3.67% 3.66% 3.57% 3.58% 3.60% 3.64%
Net Interest Margin 3.87% 3.87% 3.76% 3.78% 3.80% 3.87%
 
Selected Financial Ratios:
 
Return on Average Common Equity 7.76% 8.26% 8.58% 8.63% 8.32% 8.62%
Return on Average Assets 0.92% 0.95% 1.00% 1.00% 0.97% 0.98%
Efficiency Ratio 56.44% 50.44% 54.50% 53.35% 54.77% 51.94%
 
September September June March
2012 2011 2012 2012
Loan / Deposit Ratio 95.09% 90.26% 91.96% 90.01%
Allowance for Loan Losses/ Loans, Net of Unearned Income 1.15% 1.18% 1.16% 1.19%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 1.18% 1.21% 1.20% 1.22%
Nonaccrual Loans / Loans, Net of Unearned Income 1.27% 0.86% 1.00% 1.00%
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.19% 0.26% 0.16% 0.16%
Non-performing Loans/ Loans, Net of Unearned Income 1.53% 1.18% 1.23% 1.23%
Non-performing Assets/ Total Assets 1.77% 1.47% 1.49% 1.48%
Primary Capital Ratio 12.58% 12.11% 12.38% 12.23%
Shareholders' Equity Ratio 11.79% 11.34% 11.60% 11.45%
Price / Book Ratio 1.27 x 1.04 x 1.33 x 1.49 x
Price / Earnings Ratio 16.20 x 12.45 x 15.46 x 17.27 x
 
Note: (1) 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)

           
 
September September December June March
Asset Quality Data: 2012   2011   2011   2012   2012  
 
EOP Non-Accrual Loans $ 81,861 $ 53,759 $ 59,892 $ 63,279 $ 62,037
EOP 90-Day Past Due Loans 12,475 16,340 16,179 10,029 9,816
EOP Restructured Loans   4,091     3,624     3,592     4,255     4,335  
Total EOP Non-performing Loans $ 98,427 $ 73,723 $ 79,663 $ 77,563 $ 76,188
 
EOP Other Real Estate Owned   50,040     52,657     51,760     48,608     49,864  
Total EOP Non-performing Assets $ 148,467   $ 126,380   $ 131,423   $ 126,171   $ 126,052  
 
 
Three Months Ended Year to Date
September September June March September September
Allowance for Credit Losses:(1) 2012   2011   2012   2012   2012   2011  
Beginning Balance $ 75,525 $ 75,181 $ 75,747 $ 75,727 $ 75,727 $ 75,039
Provision for Credit Losses (3)   4,022     3,573     3,813     4,015     11,850     12,852  
79,547 78,754 79,560 79,742 87,577 87,891
Gross Charge-offs (4,453 ) (4,867 ) (5,188 ) (4,734 ) (14,375 ) (15,207 )
Recoveries   442     1,607     1,153     739     2,334     2,810  
Net Charge-offs   (4,011 )   (3,260 )   (4,035 )   (3,995 )   (12,041 )   (12,397 )
Ending Balance $ 75,536   $ 75,494   $ 75,525   $ 75,747   $ 75,536   $ 75,494  
 

Notes:

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

(2) Restructured loans with an aggregate balance of $1,277, $1,549, $1,528, $1,427 and $2,283 at September 30,
     2012, September 30, 2011, December 31, 2011, June 30, 2012 and March 31, 2012, respectively, were on
     nonaccrual status, but are not included in the “EOP Non-Accrual Loans.”

(3) Includes the Provision for Loan Losses and a provision for lending-related commitments included in Other
      Expenses.

United Bankshares, Inc.
Steven E. Wilson, 800-445-1347, ext. 8704
Chief Financial Officer

View Comments and Join the Discussion!