Market Overview

United Bankshares, Inc. Announces Record Earnings for the Second Quarter and First Half of 2018

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United Bankshares, Inc. (NASDAQ: UBSI),
today reported record earnings for the second quarter and the first half
of 2018. Earnings for the second quarter of 2018 were a record $66.3
million as compared to earnings of $37.1 million for the second quarter
of 2017. Diluted earnings per share were $0.63 for the second quarter of
2018 as compared to diluted earnings per share of $0.37 for the second
quarter of 2017. Earnings for the first half of 2018 were a record
$128.0 million as compared to earnings of $75.9 million for the first
half of 2017. Diluted earnings per share were $1.22 for the first half
of 2018 as compared to diluted earnings per share of $0.84 for the first
half of 2017.

Second quarter of 2018 results produced an annualized return on average
assets of 1.42% and an annualized return on average equity of 8.11%,
respectively. For the first half of 2018, United's return on average
assets was 1.39% while the return on average equity was 7.88%. United's
annualized returns on average assets and average equity were 0.82% and
4.93%, respectively, for the second quarter of 2017 while the returns on
average assets and average equity were 0.94% and 5.80%, respectively,
for the first half of 2017.

"Following record net income in the first quarter of 2018, United's
earnings momentum continued as we achieved record net income of $66.3
million and $128.0 million for the second quarter and first half of
2018," stated Richard M. Adams, United's Chairman and Chief Executive
Officer.

On April 21, 2017, United completed its acquisition of Cardinal
Financial Corporation ("Cardinal") of Tysons, Virginia. The results of
operations of Cardinal are included in the consolidated results of
operations from the date of acquisition. As a result of the Cardinal
acquisition, the second quarter and first half of 2018 were impacted by
increased levels of average balances, income, and expense as compared to
the second quarter and first half of 2017. In addition, the second
quarter and first half of 2017 included merger-related expenses of $23.2
million and $24.5 million, respectively, due to the Cardinal acquisition.

Net interest income for the second quarter of 2018 was $149.1 million,
which was an increase of $12.9 million or 9% from the second quarter of
2017. The $12.9 million increase in net interest income occurred because
total interest income increased $23.1 million while total interest
expense only increased $10.2 million from the second quarter of 2017.
Tax-equivalent net interest income, which adjusts for the tax-favored
status of income from certain loans and investments, for the second
quarter of 2018 was $150.2 million, an increase of $11.5 million or 8%
from the second quarter of 2017 due mainly to an additional month of
higher average earning assets in 2018 as a result of the Cardinal
acquisition. Average earning assets for the second quarter of 2018
increased $264.4 million or 2% from the second quarter of 2017 due
mainly to increases of $540.3 million or 31% in average investment
securities and $428.3 million or 3% in average net loans. Partially
offsetting these increases was a decrease in average short-term
investments of $704.2 million or 52%. The second quarter of 2018 average
yield on earning assets increased 46 basis points from the second
quarter of 2017 due to higher market interest rates and additional loan
accretion of $4.7 million on acquired loans. Partially offsetting the
increases to tax-equivalent net interest income for the second quarter
of 2018 was an increase of 39 basis points in the average cost of funds
as compared to the second quarter of 2017 due to higher market interest
rates. The net interest margin of 3.67% for the second quarter of 2018
was an increase of 23 basis points from the net interest margin of 3.44%
for the second quarter of 2017.

Net interest income for the first six months of 2018 was $293.2 million,
which was an increase of $49.3 million or 20% from the first six months
of 2017. The $49.3 million increase in net interest income occurred
because total interest income increased $69.5 million while total
interest expense only increased $20.2 million from the first six months
of 2017. Tax-equivalent net interest income for the first six months of
2018 was $295.4 million, an increase of $47.4 million or 19% from the
first six months of 2017. This increase in tax-equivalent net interest
income was primarily attributable to an increase in average earning
assets from the Cardinal acquisition. Average earning assets increased
$1.8 billion or 13% from the first six months of 2017 as average net
loans increased $1.6 billion or 14% for the first six months of 2018.
Average investment securities increased $674.7 million or 43%. The first
half of 2018 average yield on earning assets increased 40 basis points
from the first half of 2017 due to higher market interest rates and
additional loan accretion of $11.2 million on acquired loans. Partially
offsetting the increases to tax-equivalent net interest income for the
first half of 2018 was an increase of 32 basis points in the average
cost of funds as compared to the first half of 2017 due to higher market
interest rates. The net interest margin of 3.64% for the first half of
2018 was an increase of 20 basis points from the net interest margin of
3.44% for the first half of 2017.

On a linked-quarter basis, net interest income for the second quarter of
2018 increased $5.1 million or 4% from the first quarter of 2018. The
$5.1 million increase in net interest income occurred because total
interest income increased $10.8 million while total interest expense
only increased $5.7 million from the first quarter of 2018. United's
tax-equivalent net interest income for the second quarter of 2018
increased $5.1 million or 4% from the first quarter of 2018 due to a
combination of a slight increase in the average earning assets and an
increase in the yield on average earning assets. Average earning assets
for the second quarter of 2018 were relatively flat, increasing $156.1
million or less than 1% as compared to the first quarter of 2018 as
average investment securities increased $113.0 million or 5% and average
net loans increased $373.5 million or 3% for the linked-quarter. Average
short-term investments decreased $330.4 million or 34%. The yield on
average earning assets for the second quarter of 2018 increased 18 basis
points from the first quarter of 2018 due mainly to a higher yield on
loans as a result of higher market interest rates and an increase of
$1.3 million in loan accretion on acquired loans. Partially offsetting
the increases to tax-equivalent net interest income for the second
quarter of 2018 was an increase of 20 basis points in the average cost
of funds as compared to the first quarter of 2018 due to higher market
interest rates. The net interest margin of 3.67% for the second quarter
of 2018 increased 6 basis points from the net interest margin of 3.61%
for the first quarter of 2018.

For the quarters ended June 30, 2018 and 2017, the provision for loan
losses was $6.2 million and $8.3 million, respectively, while the
provision for the first six months of 2018 was $11.4 million as compared
to $14.2 million for the first six months of 2017. Net charge-offs were
$5.7 million and $8.1 million for the second quarter of 2018 and 2017,
respectively. Net charge-offs were $10.9 million and $13.9 million for
the first half of 2018 and 2017, respectively. Annualized net
charge-offs as a percentage of average loans was 0.17% for the both the
second quarter and first half of 2018. On a linked-quarter basis, the
provision for loan losses increased $1.03 million while net charge-offs
increased $571 thousand from the first quarter of 2018.

Noninterest income for the second quarter of 2018 was $36.0 million,
which was a decrease of $4.5 million or 11% from the second quarter of
2017. The decrease was due mainly to a decrease of $3.8 million in
income from mortgage banking activities due to decreased production and
sales of mortgage loans in the secondary market by United's mortgage
banking subsidiary, George Mason. However, George Mason did originate
approximately $305 million of portfolio mortgage loan products for
United Bank during the second quarter of 2018. In addition, net gains
and losses on investment securities' activity declined $802 thousand.

Noninterest income for the first half of 2018 was $67.2 million, which
was an increase of $6.5 million or 11% from the first half of 2017 as
income from mortgage banking activities for the first half of 2018
increased $10.1 million from the first half of 2017. This increase was
mainly due to including the production and sales of mortgage loans in
the secondary market by George Mason for a full first six months in 2018
as compared to slightly over two months in 2017. In addition, bankcard
fees and fees from brokerage services increased $735 thousand and $439
thousand, respectively, due to increased volume. Fees from deposit
services increased $416 thousand mainly due to higher income from debit
card and automated teller machine (ATM) fees. Partially offsetting these
increases was a decline in net gains and losses on investment
securities' activity of $5.2 million for the first half of 2018 from the
first half of 2017 due mainly to a net gain of $3.8 million on the
redemption of an investment security during the first quarter of 2017.

On a linked-quarter basis, noninterest income for the second quarter of
2018 increased $4.8 million or 15% from the first quarter of 2018 due
mainly to an increase of $4.1 million in income from mortgage banking
activities. The increase was due mainly to a change in fair value of
$4.2 million on George Mason's interest rate lock commitments. In
addition, net gains and losses on investment securities' activity
increased $430 thousand.

Noninterest expense for the second quarter of 2018 was $93.4 million, a
decrease of $18.7 million or 17% from the second quarter of 2017 due
mainly to merger-related expenses in the second quarter of 2017 from the
Cardinal acquisition. In particular, employee compensation decreased
$12.9 million due mainly to a decrease of $12.8 million in merger
severance charges, net occupancy expenses decreased $4.8 million due to
a decline of $5.8 million for the termination of leases and the
reduction in value of leasehold improvements for closed offices, and,
within other expense, additional merger-related expenses decreased $4.2
million. Partially offsetting these decreases was an increase in Federal
Deposit Insurance Corporation (FDIC) insurance expense of $1.1 million
as United Bank is now considered a large institution and subject to
increased assessment rates. In addition, equipment expense increased
$808 thousand due to increased maintenance expense and data processing
expense increased $486 thousand due to additional processing despite a
contract termination penalty of $525 thousand from the Cardinal
acquisition in the second quarter of 2017.

Noninterest expense for the first half of 2018 was $183.9 million, an
increase of $8.9 million or 5% from the first half of 2017 due mainly to
the additional employees and branch offices from the Cardinal
acquisition as most major categories of noninterest expense showed
increases partially offset by a decline in the associated merger-related
expenses of the acquisition. In particular, employee compensation
increased $3.9 million, employee benefits increased $2.2 million,
equipment expense increased $2.0 million, and data processing expense
increased $2.3 million. Within other expense, amortization of core
deposit intangibles increased $878 thousand and business franchise taxes
increased $488 thousand while merger-related expenses decreased $5.4
million. In addition, FDIC insurance expense increased $1.2 million due
to United Bank now being considered a large institution as previously
mentioned. Partially offsetting these increases was a decrease in net
occupancy expense of $2.2 million due to the expense for the termination
of leases and the reduction in value of leasehold improvements for
closed offices in the Cardinal acquisition being included in the first
half of 2017.

On a linked-quarter basis, noninterest expense for the second quarter of
2018 increased $3.0 million or 3% from the first quarter of 2018 due
mainly to an increase of $2.3 million in employee compensation as a
result of higher commissions expense related to an increase in
production and sales of mortgage loans at George Mason. In addition,
FDIC insurance expense increased $994 thousand due to United Bank now
being considered a large institution as previously mentioned.

For the second quarter and first half of 2018, income tax expense was
$19.2 million and $37.1 million, respectively, as compared to $19.3
million and $39.5 million, respectively, in the second quarter and first
half of 2017. The decreases in 2018 were mainly due to a decline in the
effective tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the
Tax Act). On a linked-quarter basis, income tax expense for the second
quarter of 2018 increased $1.3 million from the first quarter of 2018
mainly due to higher earnings. United's effective tax rate was 22.5% for
the second quarter and first quarter of 2018 and 34.25% for the second
quarter of 2017. For the first half of 2018 and 2017, United's effective
tax rate was 22.5% and 34.25%, respectively. The lower effective tax
rate for the time periods in 2018 was due to the impact of the Tax Act.

United's asset quality continues to be sound. At June 30, 2018,
nonperforming loans were $150.9 million, or 1.12% of loans, net of
unearned income, down from nonperforming loans of $168.7 million, or
1.30% of loans, net of unearned income, at December 31, 2017. As of June
30, 2018, the allowance for loan losses was $77.1 million or 0.57% of
loans, net of unearned income, as compared to $76.6 million or 0.59% of
loans, net of unearned income, at December 31, 2017. Total nonperforming
assets of $172.8 million, including OREO of $21.9 million at June 30,
2018, represented 0.90% of total assets as compared to nonperforming
assets of $193.1 million or 1.01% at December 31, 2017.

United continues to be well-capitalized based upon regulatory
guidelines. United's estimated risk-based capital ratio is 14.2% at June
30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1
capital and leverage ratios are 12.0%, 12.0% and 10.4%, respectively.
The regulatory requirements for a well-capitalized financial institution
are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital
ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of
5.0%.

As of June 30, 2018, United had consolidated assets of approximately
$19.2 billion with 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 June
30, 2018 consolidated financial statements on Form 10-Q. As a result,
the Company will continue to evaluate the impact of any subsequent
events on critical accounting assumptions and estimates made as of June
30, 2018 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

This press release contains certain financial measures that are not
recognized under U.S. generally accepted accounting principles ("GAAP").
Generally, United has presented these "non-GAAP" financial measures
because it believes that these measures provide meaningful additional
information to assist in the evaluation of United's results of
operations or financial position. Presentation of these non-GAAP
financial measures is consistent with how United's management evaluates
its performance internally and these non-GAAP financial measures are
frequently used by securities analysts, investors and other interested
parties in the evaluation of companies in the banking industry.

Specifically, this press release contains certain references to
financial measures identified as tax-equivalent (FTE) net interest
income, tangible equity and tangible book value per share. Management
believes these non-GAAP financial measures to be helpful in
understanding United's results of operations or financial position.

Net interest income is presented in this press release on a
tax-equivalent basis. The tax-equivalent basis adjusts for the
tax-favored status of income from certain loans and investments.
Although this is a non-GAAP measure, United's management believes this
measure is more widely used within the financial services industry and
provides better comparability of net interest income arising from
taxable and tax-exempt sources. United uses this measure to monitor net
interest income performance and to manage its balance sheet composition.
The tax-equivalent adjustment combines amounts of interest income on
federally nontaxable loans and investment securities using the statutory
federal income tax rate of 35%.

Tangible common equity is calculated as GAAP total shareholders'
equity minus total
intangible
assets
. Tangible common equity can thus be considered the
most conservative valuation of the company. Tangible common equity is
also presented on a per common share basis. Management provides these
amounts to facilitate the understanding of as well as to assess the
quality and composition of United's capital structure. By removing the
effect of intangible assets that result from merger and acquisition
activity, the "permanent" items of common equity are presented.
These
two measures, along with others, are used by management to analyze
capital adequacy.

Where non-GAAP financial measures are used, the comparable GAAP
financial measure, as well as reconciliation to that comparable GAAP
financial measure can be found in the attached financial information
tables to this press release. Investors should recognize that United's
presentation of these non-GAAP financial measures might not be
comparable to similarly titled measures at other companies. These
non-GAAP financial measures should not be considered a substitute for
GAAP basis measures and United strongly encourages a review of its
condensed consolidated financial statements in their entirety.

Forward-Looking Statements

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

 
 
 
 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

           
Three Months Ended Six Months Ended
June 30

2018

    June 30

2017

June 30

2018

    June 30

2017

EARNINGS SUMMARY:        
Interest income $ 178,000 $ 154,947 $ 345,185 $ 275,705
Interest expense   28,878         18,702     52,020         31,840  
Net interest income 149,122 136,245 293,165 243,865
Provision for loan losses 6,204 8,251 11,382 14,150
Noninterest income 36,007 40,506 67,199 60,652
Noninterest expenses   93,410         112,137     183,862         174,979  
Income before income taxes 85,515 56,363 165,120 115,388
Income taxes   19,241         19,304     37,140         39,520  
Net income $ 66,274       $ 37,059   $ 127,980       $ 75,868  
 
PER COMMON SHARE:
Net income:
Basic $ 0.63 $ 0.37 $ 1.22 $ 0.84
Diluted 0.63 0.37 1.22 0.84
Cash dividends $ 0.34 $ 0.33 0.68 0.66
Book value 31.12 30.85
Closing market price $ 36.40 $ 39.20
Common shares outstanding:
Actual at period end, net of treasury shares 104,203,542 104,946,351
Weighted average- basic 104,682,910 99,197,807 104,770,681 90,100,627
Weighted average- diluted 104,952,788 99,620,045 105,058,014 90,570,289
 
FINANCIAL RATIOS:
Return on average assets 1.42 % 0.82 % 1.39 % 0.94 %
Return on average shareholders' equity 8.11 % 4.93 % 7.88 % 5.80 %
Average equity to average assets 17.51 % 16.59 % 17.58 % 16.18 %
Net interest margin 3.67 % 3.44 % 3.64 % 3.44 %
 
 
June 30

2018

    June 30

2017

December 31

2017

    March 31

2018

PERIOD END BALANCES:
Assets $ 19,207,603 $ 19,035,600 $ 19,058,959 $ 18,619,702
Earning assets 16,852,952 16,657,280 16,741,819 16,331,741
Loans, net of unearned income 13,516,629 13,392,478 13,011,421 12,984,417
Loans held for sale 285,194 339,403 265,955 193,915
Investment securities 2,266,303 1,790,487 2,071,645 2,268,963
Total deposits 13,830,766 13,971,221 13,830,591 13,646,168
Shareholders' equity 3,242,565 3,237,421 3,240,530 3,251,313
 
 
 
 
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

                       

Consolidated Statements of Income

Three Months Ended Six Months Ended
June June March June June
2018 2017 2018 2018 2017
Interest & Loan Fees Income (GAAP) $ 178,000 $ 154,947 $ 167,185 $ 345,185 $ 275,705
Tax equivalent adjustment   1,115     2,512     1,104     2,219     4,076  
Interest & Fees Income (FTE) (non-GAAP) 179,115 157,459 168,289 347,404 279,781
Interest Expense   28,878     18,702     23,142     52,020     31,840  
Net Interest Income (FTE) (non-GAAP) 150,237 138,757 145,147 295,384 247,941
 
Provision for Loan Losses 6,204 8,251 5,178 11,382 14,150
 
Non-Interest Income:
Fees from trust services 3,104 2,863 3,091 6,195 5,893
Fees from brokerage services 1,953 1,882 2,224 4,177 3,738
Fees from deposit services 8,420 8,528 8,230 16,650 16,234
Bankcard fees and merchant discounts 1,479 1,216 1,356 2,835 2,100
Other charges, commissions, and fees 599 521 509 1,108 998
Income from bank-owned life insurance 1,271 1,258 1,254 2,525 2,475
Income from mortgage banking activities 18,692 22,537 14,570 33,262 23,212
Net (losses) gains on investment securities (55 ) 747 (485 ) (540 ) 4,687
Other non-interest revenue   544     954     443     987     1,315  
Total Non-Interest Income   36,007     40,506     31,192     67,199     60,652  
 
Non-Interest Expense:
Employee compensation 43,120 56,030 40,836 83,956 80,063
Employee benefits 9,298 9,760 9,571 18,869 16,663
Net occupancy 9,076 13,913 9,427 18,503 20,697
Data processing 5,817 5,331 5,850 11,667 9,374
Amortization of intangibles 2,010 2,093 2,010 4,020 3,141
OREO expense 556 524 946 1,502 1,938
FDIC insurance expense 2,842 1,771 1,848 4,690 3,522
Other expenses   20,691     22,715     19,964     40,655     39,581  
Total Non-Interest Expense   93,410     112,137     90,452     183,862     174,979  
 
Income Before Income Taxes (FTE) (non-GAAP) 86,630 58,875 80,709 167,339 119,464
 
Tax equivalent adjustment   1,115     2,512     1,104     2,219     4,076  
 
Income Before Income Taxes (GAAP) 85,515 56,363 79,605 165,120 115,388
 
Taxes   19,241     19,304     17,899     37,140     39,520  
 
Net Income $ 66,274   $ 37,059   $ 61,706   $ 127,980   $ 75,868  
 
MEMO: Effective Tax Rate 22.50 % 34.25 % 22.48 % 22.49 % 34.25 %
 
 
 
 
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

                       

Consolidated Balance Sheets

June 30 June 30
2018 2017 June 30 December 31 June 30
Q-T-D Average Q-T-D Average 2018 2017 2017
 
Cash & Cash Equivalents $ 837,329 $ 1,530,812 $ 1,092,926 $ 1,666,167 $ 1,411,004
 
Securities Available for Sale 2,092,862 1,575,120 2,060,927 1,888,756 1,606,813
Held to Maturity Securities 20,395 27,090 20,378 20,428 20,401
Equity Securities 10,314 0 9,664 0 0
Other Investment Securities   168,778     149,819     175,334     162,461     163,273  
Total Securities   2,292,349     1,752,029     2,266,303     2,071,645     1,790,487  
Total Cash and Securities   3,129,678     3,282,841     3,359,229     3,737,812     3,201,491  
 
Loans held for sale 209,836 226,834 285,194 265,955 339,403
 
Commercial Loans 9,847,720 9,804,391 9,875,623 9,822,027 10,199,455
Mortgage Loans 2,655,389 2,395,699 2,782,735 2,443,780 2,514,896
Consumer Loans   847,949     705,914     870,650     761,530     696,126  
 
Gross Loans 13,351,058 12,906,004 13,529,008 13,027,337 13,410,477
 
Unearned income   (13,523 )   (17,741 )   (12,379 )   (15,916 )   (17,999 )
 
Loans, net of unearned income 13,337,535 12,888,263 13,516,629 13,011,421 13,392,478
 
Allowance for Loan Losses (76,773 ) (72,837 ) (77,135 ) (76,627 ) (72,983 )
 
Goodwill 1,478,195 1,288,114 1,478,014 1,478,380 1,485,113
Other Intangibles   42,058     21,751     40,966     44,986     53,527  
Total Intangibles 1,520,253 1,309,865 1,518,980 1,523,366 1,538,640
 
Other Real Estate Owned 22,263 29,089 21,926 24,348 28,157
Other Assets   569,592     518,960     582,780     572,684     608,414  
Total Assets $ 18,712,384   $ 18,183,015   $ 19,207,603   $ 19,058,959   $ 19,035,600  
 
MEMO: Interest-earning Assets $ 16,412,229   $ 16,147,805   $ 16,852,952   $ 16,741,819   $ 16,657,280  
 
Interest-bearing Deposits $ 9,210,282 $ 9,613,565 $ 9,498,926 $ 9,535,904 $ 9,957,776
Noninterest-bearing Deposits   4,255,840     3,784,465     4,331,840     4,294,687     4,013,445  
Total Deposits 13,466,122 13,398,030 13,830,766 13,830,591 13,971,221
 
Short-term Borrowings 208,058 341,201 199,507 477,587 321,322
Long-term Borrowings   1,659,613     1,329,013     1,794,641     1,363,977     1,364,531  
Total Borrowings 1,867,671 1,670,214 1,994,148 1,841,564 1,685,853
 
Other Liabilities   102,492     97,982     140,124     146,274     141,105  
Total Liabilities   15,436,285     15,166,226     15,965,038     15,818,429     15,798,179  
 
Preferred Equity --- --- --- --- ---
Common Equity   3,276,099     3,016,789     3,242,565     3,240,530     3,237,421  
Total Shareholders' Equity   3,276,099     3,016,789     3,242,565     3,240,530     3,237,421  
 
Total Liabilities & Equity $ 18,712,384   $ 18,183,015   $ 19,207,603   $ 19,058,959   $ 19,035,600  
 
MEMO: Interest-bearing Liabilities $ 11,077,953   $ 11,283,779   $ 11,493,074   $ 11,377,468   $ 11,643,629  
 
 
 
 
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

               
Three Months Ended Six Months Ended
June June March June June

Quarterly/Year-to-Date Share Data:

2018 2017 2018 2018 2017
 

Earnings Per Share:

Basic $ 0.63 $ 0.37 $ 0.59 $ 1.22 $ 0.84
Diluted $ 0.63 $ 0.37 $ 0.59 $ 1.22 $ 0.84
 

Common Dividend Declared Per Share:

$ 0.34 $ 0.33 $ 0.34 $ 0.68 $ 0.66
 
High Common Stock Price $ 38.80 $ 42.60 $ 38.55 $ 38.80 $ 47.30
Low Common Stock Price $ 33.40 $ 37.45 $ 33.60 $ 33.40 $ 37.45
 

Average Shares Outstanding (Net of
Treasury Stock):

Basic 104,682,910 99,197,807 104,859,427 104,770,681 90,100,627
Diluted 104,952,788 99,620,045 105,162,858 105,058,014 90,570,289
 

Memorandum Items:

 
Common Dividends $ 35,584 $ 34,621 $ 35,748 $ 71,332 $ 61,398
 
Dividend Payout Ratio 53.69 % 93.42 % 57.93 % 55.74 % 80.93 %
 
 
June 30 June 30 March 31

EOP Share Data:

2018 2017 2018
 
Book Value Per Share $ 31.12 $ 30.85 $ 30.92
Tangible Book Value Per Share (non-GAAP) (1) $ 16.54 $ 16.19 $ 16.45
 
52-week High Common Stock Price $ 40.45 $ 49.35 $ 42.60
Date 07/03/17 12/12/16 04/03/17
52-week Low Common Stock Price $ 31.70 $ 35.91 $ 31.70
Date 09/07/17 07/06/16 09/07/17
 

EOP Shares Outstanding (Net of Treasury
Stock):

104,203,542 104,946,351 105,141,170
 

Memorandum Items:

 
EOP Employees (full-time equivalent) 2,300 2,493 2,341
 

Note:

(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 3,242,565 $ 3,237,421 $ 3,251,313
Less: Total Intangibles   (1,518,980 )   (1,538,640 )   (1,521,556 )
Tangible Equity (non-GAAP) $ 1,723,585 $ 1,698,781 $ 1,729,757
÷ EOP Shares Outstanding (Net of Treasury Stock) 104,203,542 104,946,351 105,141,170
Tangible Book Value Per Share (non-GAAP) $ 16.54 $ 16.19 $ 16.45
 
 
 
 
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

                   
Three Months Ended Six Months Ended
June June March June June

Selected Yields and Net Interest Margin:

2018 2017 2018 2018 2017
 
Net Loans 4.76 % 4.38 % 4.63 % 4.70 % 4.37 %
Investment Securities 2.73 % 2.52 % 2.52 % 2.63 % 2.66 %
Money Market Investments/FFS 2.14 % 1.12 % 2.04 % 2.08 % 1.00 %
Average Earning Assets Yield 4.37 % 3.91 % 4.19 % 4.28 % 3.88 %
Interest-bearing Deposits 0.83 % 0.53 % 0.68 % 0.75 % 0.49 %
Short-term Borrowings 0.89 % 0.49 % 0.60 % 0.72 % 0.51 %
Long-term Borrowings 2.26 % 1.72 % 2.12 % 2.20 % 1.63 %
Average Liability Costs 1.05 % 0.66 % 0.85 % 0.95 % 0.63 %
Net Interest Spread 3.32 % 3.25 % 3.34 % 3.33 % 3.25 %
Net Interest Margin 3.67 % 3.44 % 3.61 % 3.64 % 3.44 %
 

Selected Financial Ratios:

 
Return on Average Common Equity 8.11 % 4.93 % 7.65 % 7.88 % 5.80 %
Return on Average Assets 1.42 % 0.82 % 1.35 % 1.39 % 0.94 %
Efficiency Ratio 50.46 % 63.44 % 51.62 % 51.02 % 57.46 %
 
 
June 30 June 30 March 31 December 31
2018 2017 2018 2017
Loan / Deposit Ratio 97.73 % 95.86 % 95.15 % 94.08 %
Allowance for Loan Losses/ Loans, net of unearned income 0.57 % 0.54 % 0.59 % 0.59 %
Allowance for Credit Losses (1)/ Loans, net of unearned
income
0.58 % 0.55 % 0.60 % 0.59 %
Nonaccrual Loans / Loans, net of unearned income 0.55 % 0.72 % 0.77 % 0.84 %
90-Day Past Due Loans/ Loans, net of unearned income 0.12 % 0.06 % 0.07 % 0.08 %
Non-performing Loans/ Loans, net of unearned income 1.12 % 1.15 % 1.21 % 1.30 %
Non-performing Assets/ Total Assets 0.90 % 0.96 % 0.97 % 1.01 %
Primary Capital Ratio 17.21 % 17.32 % 17.80 % 17.34 %
Shareholders' Equity Ratio 16.88 % 17.01 % 17.46 % 17.00 %
Price / Book Ratio 1.17x

1.27x

1.14x

1.13x

Price / Earnings Ratio 14.41x

26.34x

15.02x

22.59x

 

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)

 
        Three Months Ended   Six Months Ended
June   June   March June June

Mortgage Banking Data – George Mason:

2018 2017 2018 2018 2017
Applications $ 1,195,000 $ 1,367,000 $ 1,149,000 $ 2,344,000 $ 1,367,000
Loans originated 874,493 786,318 573,732 1,448,225 786,318
Loans sold $ 784,727 $ 722,098 $ 616,951 $ 1,401,678 $ 722,098
Purchase money % of loans closed 83 % 87 % 75 % 80 % 87 %
Realized gain on sales and fees as a % of loans sold 2.62 % 2.96 % 2.62 % 2.62 % 2.96 %
Net interest income $ 264 $ 90 $ 376 $ 640 $ 90
Other income 23,468 22,393 14,883 38,351 22,393
Other expense 21,225 18,708 18,384 39,609 18,708
Income taxes 564 1,293 (703 ) (139 ) 1,293
Net income $ 1,943 $ 2,482 $ (2,422 ) $ (479 ) $ 2,482
 
 

June

June

December

March

Period End Mortgage Banking Data – George
Mason:

2018

2017

2017

2018

Locked pipeline

$  221,317

$  387,710

$  157,130

$  206,883

 
 
 
                June     June     December     March

Asset Quality Data:

2018 2017 2017 2018
 
EOP Non-Accrual Loans $ 74,114 $ 96,679 $ 108,803 $ 100,172
EOP 90-Day Past Due Loans 16,422 8,489 9,803 9,165
EOP Restructured Loans (1)   60,384   49,037   50,129   48,271
Total EOP Non-performing Loans $ 150,920 $ 154,205 $ 168,735 $ 157,608
 
EOP Other Real Estate Owned   21,926   28,157   24,348   22,778
Total EOP Non-performing Assets $ 172,846 $ 182,362 $ 193,083 $ 180,386
     
Three Months Ended Six Months Ended
June   June   March June   June

Allowance for Loan Losses:

2018 2017 2018 2018 2017
Beginning Balance $ 76,653 $ 72,875 $ 76,627 $ 76,627 $ 72,771
Provision for Loan Losses   6,204     8,251     5,178     11,382     14,150  
82,857 81,126 81,805 88,009 86,921
Gross Charge-offs (7,712 ) (9,922 ) (5,858 ) (13,570 ) (17,207 )
Recoveries   1,990     1,779     706     2,696     3,269  
Net Charge-offs   (5,722 )   (8,143 )   (5,152 )   (10,874 )   (13,938 )
Ending Balance $ 77,135 $ 72,983 $ 76,653 $ 77,135 $ 72,983
Reserve for lending-related commitments   927     738    

755

    927     738  
Allowance for Credit Losses (2) $ 78,062   $ 73,721   $ 77,408   $ 78,062   $ 73,721  
 
 

Notes:

(1) Restructured loans with an aggregate balance of $46,652,
$31,606, $33,592 and $30,868 at June 30, 2018, June 30, 2017, March
31, 2018 and December 31, 2017, respectively, were on nonaccrual
status, but are not included in "EOP Non-Accrual Loans" above.
(2) Includes allowances for loan losses and lending-related
commitments.
 
 
 
 

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