United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today
reported earnings for the second quarter of 2024 of $96.5 million,
or $0.71 per diluted share. Second quarter of 2024 results produced
annualized returns on average assets, average equity and average
tangible equity, a non-GAAP measure, of 1.32%, 7.99% and 13.12%,
respectively.
“UBSI continues to consistently deliver exceptional results,”
stated Richard M. Adams, Jr., United’s Chief Executive Officer. “In
the second quarter we saw increases in profitability, capital,
loans, and deposits, as well as decreases in expenses and
non-performing assets. We anticipate continued success in the
second half of the year, and are excited about our recent
acquisition announcement of Piedmont Bancorp, Inc. in Atlanta.”
United previously announced during the second quarter of 2024
that it entered into a definitive merger agreement with Piedmont
Bancorp, Inc. (“Piedmont”). The combined organization will have
more than $32 billion in assets and a network of over 240 locations
across eight states and Washington, D.C., in some of the most
desirable banking markets in the nation. The merger is expected to
close late in the fourth quarter of 2024 or early in the first
quarter of 2025, subject to satisfaction of customary closing
conditions.
Earnings for the first quarter of 2024 were $86.8 million, or
$0.64 per diluted share, and annualized returns on average assets,
average equity and average tangible equity were 1.19%, 7.25% and
11.98%, respectively. Earnings for the second quarter of 2023 were
$92.5 million, or $0.68 per diluted share, and annualized returns
on average assets, average equity and average tangible equity were
1.26%, 7.96% and 13.47%, respectively.
Second quarter of 2024 compared to the first quarter of
2024
Net interest income for the second quarter of 2024 increased
$3.2 million, or 1%, from the first quarter of 2024. Tax-equivalent
net interest income, a non-GAAP measure which adjusts for the
tax-favored status of income from certain loans and investments,
for the second quarter of 2024 also increased $3.2 million, or 1%,
from the first quarter of 2024. The increase in net interest income
and tax-equivalent net interest income was driven by a higher yield
on average net loans and loans held for sale, organic loan growth
and a decrease in average long-term borrowings partially offset by
higher interest expense driven by the impact of deposit rate
repricing. The net interest spread increased 3 basis points to
2.52% for the second quarter of 2024 driven by an increase in the
yield on average earning assets of 9 basis points partially offset
by an increase in the average cost of funds of 6 basis points. The
yield on average net loans and loans held for sale increased 6
basis points to 6.14% for the second quarter of 2024. The first
quarter of 2024 included a $593 thousand interest reversal due to a
commercial & industrial loan relationship being placed on
nonaccrual whereas the second quarter of 2024 included a $654
thousand interest recovery from a commercial real estate nonaccrual
loan payoff. Average net loans and loans held for sale increased
$127.6 million, or 2% on an annualized basis, from the first
quarter of 2024. Average long-term borrowings decreased $209.8
million, or 14%, from the first quarter of 2024. The yield on
average interest-bearing deposits increased 8 basis points to 3.18%
for the second quarter of 2024. The net interest margin of 3.50%
for the second quarter of 2024 was an increase of 6 basis points
from the net interest margin of 3.44% for the first quarter of
2024.
The provision for credit losses was $5.8 million for the second
quarter of 2024 as compared to $5.7 million for the first quarter
of 2024.
Noninterest income for the second quarter of 2024 decreased $2.0
million, or 6%, from the first quarter of 2024. The decrease in
noninterest income was primarily due to a decrease in income from
mortgage banking activities of $1.4 million driven by lower
mortgage loan sale volume and a lower margin. During the second
quarter of 2024, United recognized a $6.9 million gain on the VISA
share exchange, of which $4.6 million was realized through the sale
of eligible shares and the remainder of which related to shares
held at fair value at quarter-end and which will be eligible to be
sold in the third quarter of 2024. Additionally, during the second
quarter of 2024, United sold $102.7 million of available for sale
(“AFS”) investment securities at a loss of $6.8 million.
Noninterest expense for the second quarter of 2024 decreased
$6.0 million, or 4%, from the first quarter of 2024. The decrease
in noninterest expense was primarily driven by decreases in
employee benefits of $2.5 million, Federal Deposit Insurance
Corporation (“FDIC”) insurance expense of $1.4 million as well as
smaller decreases in other categories of noninterest expense. The
decrease in employee benefits was primarily driven by lower Federal
Insurance Contributions Act (“FICA”) and postretirement benefit
costs. The decrease in FDIC insurance expense was primarily due to
the inclusion in the first quarter of 2024 of an incremental $1.8
million of expense related to the FDIC special assessment. Other
noninterest expense was $32.8 million for the second quarter of
2024 compared to $33.5 million for the first quarter of 2024. The
decrease in other noninterest expense was driven by lower amounts
of certain general operating expenses partially offset by $1.3
million in merger-related expenses related to the Piedmont
acquisition.
For the second quarter of 2024, income tax expense was $18.9
million as compared to $21.4 million for the first quarter of 2024.
The decrease of $2.5 million was driven by the impact of discrete
tax benefits recognized in the second quarter of 2024 partially
offset by higher earnings. United’s effective tax rate was 16.4%
and 19.8% for the second quarter of 2024 and first quarter of 2024,
respectively.
Second quarter of 2024 compared to the second quarter of
2023
Earnings for the second quarter of 2024 were $96.5 million, or
$0.71 per diluted share, as compared to earnings of $92.5 million,
or $0.68 per diluted share, for the second quarter of 2023.
Net interest income for the second quarter of 2024 of $225.7
million slightly decreased by $1.7 million, or less than 1%, from
the second quarter of 2023. Tax-equivalent net interest income for
the second quarter of 2024 of $226.6 million slightly decreased by
$2.0 million, or less than 1%, from the second quarter of 2023. The
slight decrease in net interest income and tax-equivalent net
interest income was primarily due to higher interest expense driven
by deposit rate repricing, an increase in average interest-bearing
deposits and a decrease in acquired loan accretion income. The
decrease was largely offset by the impact of rising market interest
rates on earning assets, organic loan growth and a decrease in
average long-term borrowings. The yield on average interest-bearing
deposits increased 81 basis points from the second quarter of 2023.
Average interest-bearing deposits increased $1.2 billion from the
second quarter of 2023. Acquired loan accretion income for the
second quarter of 2024 decreased $671 thousand from the second
quarter of 2023. The yield on average earning assets increased 46
basis points from the second quarter of 2023 to 5.79% driven by an
increase in the yield on average net loans and loans held for sale
of 36 basis points. Average net loans and loans held for sale
increased $912.0 million from the second quarter of 2023. Average
long-term borrowings decreased $1.0 billion from the second quarter
of 2023. The net interest margin for the second quarter of 2024 and
2023 was 3.50% and 3.51%, respectively.
The provision for credit losses was $5.8 million for the second
quarter of 2024 as compared to $11.4 million for the second quarter
of 2023.
Noninterest income for the second quarter of 2024 was $30.2
million, which was a decrease of $5.0 million, or 14%, from the
second quarter of 2023. Mortgage loan servicing income decreased
$9.1 million driven by an $8.1 million gain on the sale of mortgage
servicing rights (“MSRs”) in the second quarter of 2023. Income
from mortgage banking activities decreased $4.0 million from the
second quarter of 2023 mainly due to lower mortgage loan
origination and sale volume and a lower quarter-end valuation of
mortgage derivatives. Net losses on investment securities were $218
thousand for the second quarter of 2024 which included a $6.9
million gain on the VISA share exchange partially offset by a $6.8
million loss on the sale of AFS investment securities. Net losses
on investment securities for the second quarter of 2023 were $7.3
million driven by a $7.2 million loss on the sale of AFS investment
securities. Fees from brokerage services increased $1.0 million
from the second quarter of 2023 primarily due to higher volume.
Noninterest expense for the second quarter of 2024 was flat from
the second quarter of 2023, decreasing $514 thousand, or less than
1%. Several categories of noninterest expense decreased which were
largely offset by increases in other categories, none of which were
significant. Within other noninterest expense, lower amounts of
certain general operating expenses were partially offset by $1.3
million in merger-related expenses and a $1.0 million increase in
tax credit amortization.
For the second quarter of 2024, income tax expense was $18.9
million as compared to $23.5 million for the second quarter of
2023. The decrease of $4.6 million was driven by the impact of
discrete tax benefits recognized in the second quarter of 2024.
United’s effective tax rate was 16.4% and 20.2% for the second
quarter of 2024 and second quarter of 2023, respectively.
First half of 2024 compared to the first half of 2023
Earnings for the first six months of 2024 were $183.3 million,
or $1.35 per diluted share, as compared to earnings of $190.8
million, or $1.41 per diluted share, for the first six months of
2023.
Net interest income for the first half of 2024 decreased $13.6
million, or 3%, from the first half of 2023. Tax-equivalent net
interest income for the first half of 2024 decreased $14.1 million,
or 3%, from the first half of 2023. The decrease in net interest
income and tax-equivalent net interest income was primarily due to
higher interest expense driven by deposit rate repricing, an
increase in average interest-bearing deposits and a decrease in
acquired loan accretion income. These decreases were partially
offset by the impact of rising market interest rates on earning
assets, organic loan growth and a decrease in average long-term
borrowings. The yield on average interest-bearing deposits
increased 104 basis points from the first half of 2023. Average
interest-bearing deposits increased $1.3 billion from the first
half of 2023. Acquired loan accretion income for the first half of
2024 of $4.9 million was a decrease of $1.3 million from the first
half of 2023. The yield on average earning assets increased 53
basis points from the first half of 2023 to 5.74% driven by an
increase in the yield on average net loans and loans held for sale
of 44 basis points. Average net loans and loans held for sale
increased $856.2 million from the first half of 2023. Average
long-term borrowings decreased $967.1 million from the first half
of 2023. The net interest margin for the first half of 2024 and
2023 was 3.47% and 3.57%, respectively.
The provision for credit losses was $11.5 million for the first
six months 2024 as compared to $18.3 million for the first six
months of 2023.
Noninterest income for the first six months of 2024 was $62.4
million, which was a decrease of $5.5 million, or 8%, from the
first six months of 2023. Mortgage loan servicing income decreased
$10.5 million from the first half of 2023 driven by the
aforementioned sale of MSRs. Income from mortgage banking
activities decreased $5.1 million from the first half of 2023
mainly due to lower mortgage loan origination and sale volume and a
lower quarter-end valuation of mortgage derivatives and mortgage
loans held for sale. Net losses on investment securities were $317
thousand for the first half of 2024 which included a $6.9 million
gain on the VISA share exchange partially offset by a $6.8 million
loss on the sale of AFS investment securities. Net losses on
investment securities for the first six months of 2023 were $7.7
million driven by a $7.2 million loss on the sale of AFS investment
securities. Fees from brokerage services increased $2.1 million
from the first half of 2023 primarily due to higher volume.
Noninterest expense for the first six months of 2024 was $275.5
million, an increase of $2.8 million, or 1%, from the first six
months of 2023 driven by increases in employee compensation of $3.9
million, other noninterest expense of $2.9 million and FDIC
insurance expense of $2.4 million partially offset by decreases in
the expense for the reserve for unfunded loan commitments of $4.5
million and mortgage loan servicing expense of $1.6 million. The
increase in employee compensation was driven by higher employee
incentives, base salaries and employee severance associated with
the previously announced mortgage delivery channel consolidation.
The increase in other noninterest expense was primarily driven by a
$2.0 million increase in tax credit amortization, $1.3 million in
merger-related expenses incurred in the second quarter of 2024 and
higher amounts of certain general operating expenses. The increase
in FDIC insurance expense was driven by $1.8 million of expense
recognized in the first quarter of 2024 for the FDIC special
assessment. The decrease in the expense for the reserve for
unfunded loan commitments was driven by a decrease in the
outstanding balance of loan commitments. The decrease in mortgage
loan servicing expense was driven by the sale of MSRs.
For the first six months of 2024, income tax expense was $40.3
million as compared to $47.9 million for the first six months of
2023 primarily due to the impact of discrete tax benefits
recognized in the second quarter of 2024 and lower earnings.
United’s effective tax rate was 18.0% for the first six months of
2024 and 20.1% for the first six months of 2023.
Credit Quality
United’s asset quality continues to be sound. At June 30, 2024,
non-performing loans were $65.3 million, or 0.30% of loans &
leases, net of unearned income. Total non-performing assets were
$67.5 million, including other real estate owned (“OREO”) of $2.2
million, or 0.23% of total assets at June 30, 2024. At December 31,
2023, non-performing loans were $45.5 million, or 0.21% of loans
& leases, net of unearned income. Total non-performing assets
were $48.1 million, including OREO of $2.6 million, or 0.16% of
total assets at December 31, 2023. As previously disclosed in the
first quarter of 2024, the increase in non-performing loans and
non-performing assets from year-end was driven by one commercial
& industrial loan relationship. Non-performing loans decreased
$9.1 million from March 31, 2024 primarily due to a partial paydown
of the aforementioned commercial & industrial loan
relationship.
As of June 30, 2024, the allowance for loan & lease losses
was $267.4 million, or 1.24% of loans & leases, net of unearned
income, as compared to $259.2 million, or 1.21% of loans &
leases, net of unearned income, at December 31, 2023. Net
charge-offs were $1.3 million for the second quarter of 2024
compared to $1.2 million for the second quarter of 2023. Annualized
net charge-offs as a percentage of average loans & leases, net
of unearned income were 0.02% for both the second quarter of 2024
and 2023. Net charge-offs were $3.3 million for the first half of
2024 compared to $2.4 million for the first half of 2023.
Annualized net charge-offs as a percentage of average loans &
leases, net of unearned income were 0.03% and 0.02% for the first
half of 2024 and 2023, respectively. Net charge-offs were $2.1
million for the first quarter of 2024.
Capital
United continues to be well-capitalized based upon regulatory
guidelines. United’s estimated risk-based capital ratio is 15.8% at
June 30, 2024, while estimated Common Equity Tier 1 capital, Tier 1
capital and leverage ratios are 13.5%, 13.5% and 11.6%,
respectively. The June 30, 2024 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%. United did not repurchase any shares
of its common stock during 2024 or 2023.
About United Bankshares, Inc.
As of June 30, 2024, United had consolidated assets of
approximately $30.0 billion and is the 38th largest banking company
in the U.S. based on market capitalization. United is the parent
company of United Bank, which comprises more than 225 offices
located throughout Washington, D.C., Virginia, West Virginia,
Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and
Georgia. United’s stock is traded on the NASDAQ Global Select
Market under the quotation symbol "UBSI".
Cautionary Statements
The Company is required under generally accepted accounting
principles to evaluate subsequent events through the filing of its
June 30, 2024 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, 2024 and will adjust amounts preliminarily
reported, if necessary.
Use of non-GAAP Financial
Measures
This press release contains certain financial measures that are
not recognized under U.S. generally accepted accounting principles
("GAAP"). Generally, United has presented these “non-GAAP”
financial measures because it believes that these measures provide
meaningful additional information to assist in the evaluation of
United’s results of operations or financial position. Presentation
of these non-GAAP financial measures is consistent with how
United’s management evaluates its performance internally and these
non-GAAP financial measures are frequently used by securities
analysts, investors and other interested parties in the evaluation
of companies in the banking industry.
Specifically, this press release contains certain references to
financial measures identified as tax-equivalent (FTE) net interest
income, average tangible equity, return on average tangible equity
and tangible book value per share. Management believes these
non-GAAP financial measures to be helpful in understanding United’s
results of operations or financial position.
Net interest income is presented in this press release on a
tax-equivalent basis. The tax-equivalent basis adjusts for the
tax-favored status of income from certain loans and investments.
Although this is a non-GAAP measure, United’s management believes
this measure is more widely used within the financial services
industry and provides better comparability of net interest income
arising from taxable and tax-exempt sources. United uses this
measure to monitor net interest income performance and to manage
its balance sheet composition. The tax-equivalent adjustment
combines amounts of interest income on federally nontaxable loans
and investment securities using the statutory federal income tax
rate of 21%.
Tangible equity is calculated as GAAP total shareholders’ equity
minus total intangible assets. Tangible equity can thus be
considered the most conservative valuation of the company. Tangible
equity is also presented on a per common share basis and
considering net income, a return on average tangible equity.
Management provides these amounts to facilitate the understanding
of as well as to assess the quality and composition of United’s
capital structure. By removing the effect of intangible assets that
result from merger and acquisition activity, the “permanent” items
of equity are presented. These measures, along with others, are
used by management to analyze capital adequacy and performance.
Where non-GAAP financial measures are used, the comparable GAAP
financial measure, as well as reconciliation to that comparable
GAAP financial measure can be found in the attached financial
information tables to this press release. Investors should
recognize that United’s presentation of these non-GAAP financial
measures might not be comparable to similarly titled measures at
other companies. These non-GAAP financial measures should not be
considered a substitute for GAAP basis measures and United strongly
encourages a review of its condensed consolidated financial
statements in their entirety.
Forward-Looking Statements
In this report, we have made various statements regarding
current expectations or forecasts of future events, which speak
only as of the date the statements are made. These statements are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are also made from time-to-time in press releases and in
oral statements made by the officers of the Company.
Forward-looking statements can be identified by the use of the
words “expect,” “may,” “could,” “intend,” “project,” “estimate,”
“believe,” “anticipate,” and other words of similar meaning. Such
forward-looking statements are based on assumptions and estimates,
which although believed to be reasonable, may turn out to be
incorrect. Therefore, undue reliance should not be placed upon
these estimates and statements. United cannot assure that any of
these statements, estimates, or beliefs will be realized and actual
results may differ from those contemplated in these
“forward-looking statements.” The following factors, among others,
could cause the actual results of United’s operations to differ
materially from its expectations: uncertainty in U.S. fiscal and
monetary policies, including the interest rate policies of the
Federal Reserve Board; volatility and disruptions in global capital
and credit markets, interest rate, securities market and monetary
supply fluctuations; increasing rates of inflation and slower
growth rates; the nature, extent, timing, and results of
governmental actions, examinations, reviews, reforms, regulations,
and interpretations, including those involving the Federal Reserve,
FDIC, and CFPB; the effect of changes in the level of checking or
savings account deposits on United’s funding costs and net interest
margin; future provisions for credit losses on loans and debt
securities; changes in nonperforming assets; risks relating to the
merger with Piedmont, including the successful integration of
operations of Piedmont; competition; changes in legislation or
regulatory requirements; and the impact of natural disasters,
extreme weather events, military conflict (including the
Russia/Ukraine conflict, the conflict in Israel and surrounding
areas, the possible expansion of such conflicts and potential
geopolitical consequences), terrorism or other geopolitical events.
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, 2023, as filed with
the Securities and Exchange Commission and available on its website
at www.sec.gov. Further, any forward-looking statement speaks only
as of the date on which it is made, and United undertakes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events, or
otherwise. You are advised to consult further disclosures United
may make on related subjects in our filings with the SEC.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
Six Months Ended
EARNINGS
SUMMARY:
June
2024
June
2023
March
2024
June
2024
June
2023
Interest income
$
374,184
$
345,932
$
369,180
$
743,364
$
675,235
Interest expense
148,469
118,471
146,691
295,160
213,454
Net interest income
225,715
227,461
222,489
448,204
461,781
Provision for credit losses
5,779
11,440
5,740
11,519
18,330
Noninterest income
30,223
35,178
32,212
62,435
67,922
Noninterest expense
134,774
135,288
140,742
275,516
272,707
Income before income taxes
115,385
115,911
108,219
223,604
238,666
Income taxes
18,878
23,452
21,405
40,283
47,900
Net income
$
96,507
$
92,459
$
86,814
$
183,321
$
190,766
PER COMMON
SHARE:
Net income:
Basic
$
0.71
$
0.68
$
0.64
$
1.36
$
1.42
Diluted
0.71
0.68
0.64
1.35
1.41
Cash dividends
$
0.37
$
0.36
0.37
0.74
0.72
Book value
35.56
35.92
34.37
Closing market price
$
35.79
$
32.44
$
29.67
Common shares outstanding:
Actual at period end, net of treasury
shares
135,192,675
135,195,704
134,934,858
Weighted average-basic
135,137,901
134,683,010
134,808,634
134,881,314
134,472,074
Weighted average-diluted
135,314,785
134,849,818
135,121,380
135,103,288
134,748,868
FINANCIAL
RATIOS:
Return on average assets
1.32
%
1.26
%
1.19
%
1.25
%
1.31
%
Return on average shareholders’ equity
7.99
%
7.96
%
7.25
%
7.62
%
8.34
%
Return on average tangible equity
(non-GAAP)(1)
13.12
%
13.47
%
11.98
%
12.55
%
14.20
%
Average equity to average assets
16.54
%
15.83
%
16.36
%
16.45
%
15.66
%
Net interest margin
3.50
%
3.51
%
3.44
%
3.47
%
3.57
%
PERIOD END
BALANCES:
June 30
2024
December 31
2023
June 30
2023
March 31
2024
Assets
$
29,957,418
$
29,926,482
$
29,694,651
$
30,028,798
Earning assets
26,572,087
26,623,652
26,335,600
26,659,694
Loans & leases, net of unearned
income
21,598,727
21,359,084
20,764,291
21,520,076
Loans held for sale
66,475
56,261
91,296
44,426
Investment securities
3,650,582
4,125,754
4,342,714
3,954,519
Total deposits
23,066,440
22,819,319
22,369,753
22,919,746
Shareholders’ equity
4,856,633
4,771,240
4,637,043
4,807,441
Note: (1) See information under the
“Selected Financial Ratios” table for a reconciliation of non-GAAP
measure.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Consolidated
Statements of Income
Three Months Ended
Six Months Ended
June
June
March
June
June
2024
2023
2024
2024
2023
Interest & Loan Fees Income
(GAAP)
$
374,184
$
345,932
$
369,180
$
743,364
$
675,235
Tax equivalent adjustment
867
1,144
872
1,739
2,279
Interest & Fees Income (FTE)
(non-GAAP)
375,051
347,076
370,052
745,103
677,514
Interest Expense
148,469
118,471
146,691
295,160
213,454
Net Interest Income (FTE) (non-GAAP)
226,582
228,605
223,361
449,943
464,060
Provision for Credit Losses
5,779
11,440
5,740
11,519
18,330
Noninterest Income:
Fees from trust services
4,744
4,516
4,646
9,390
9,296
Fees from brokerage services
4,959
3,918
5,267
10,226
8,118
Fees from deposit services
9,326
9,325
8,971
18,297
18,687
Bankcard fees and merchant discounts
1,355
1,707
1,873
3,228
3,414
Other charges, commissions, and fees
869
949
858
1,727
2,087
Income from bank-owned life insurance
2,549
2,022
2,418
4,967
3,913
Income from mortgage banking
activities
3,901
7,907
5,298
9,199
14,291
Mortgage loan servicing income
783
9,841
789
1,572
12,117
Net losses on investment securities
(218
)
(7,336
)
(99
)
(317
)
(7,741
)
Other noninterest income
1,955
2,329
2,191
4,146
3,740
Total Noninterest Income
30,223
35,178
32,212
62,435
67,922
Noninterest Expense:
Employee compensation
58,501
58,502
59,293
117,794
113,916
Employee benefits
12,147
12,236
14,671
26,818
25,671
Net occupancy
11,400
11,409
12,343
23,743
23,242
Data processing
7,290
7,256
7,463
14,753
14,729
Amortization of intangibles
910
1,279
910
1,820
2,558
OREO expense
268
315
159
427
982
Net losses (gains) on the sale of OREO
properties
32
16
(83
)
(51
)
(27
)
Equipment expense
7,548
8,026
6,853
14,401
15,022
FDIC insurance expense
5,058
4,570
6,455
11,513
9,157
Mortgage loan servicing expense and
impairment
1,011
1,699
1,015
2,026
3,583
Expense for the reserve for unfunded loan
commitments
(2,177
)
(2,021
)
(1,790
)
(3,967
)
579
Other noninterest expense
32,786
32,001
33,453
66,239
63,295
Total Noninterest Expense
134,774
135,288
140,742
275,516
272,707
Income Before Income Taxes (FTE)
(non-GAAP)
116,252
117,055
109,091
225,343
240,945
Tax equivalent adjustment
867
1,144
872
1,739
2,279
Income Before Income Taxes
(GAAP)
115,385
115,911
108,219
223,604
238,666
Taxes
18,878
23,452
21,405
40,283
47,900
Net Income
$
96,507
$
92,459
$
86,814
$
183,321
$
190,766
MEMO: Effective Tax Rate
16.36
%
20.23
%
19.78
%
18.02
%
20.07
%
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 2024
June 2023
June 30
December 31
June 30
March 31
Q-T-D Average
Q-T-D Average
2024
2023
2023
2024
Cash & Cash Equivalents
$
1,174,885
$
1,282,923
$
1,858,861
$
1,598,943
$
1,692,357
$
1,732,646
Securities Available for Sale
3,472,389
4,320,055
3,315,726
3,786,377
4,005,324
3,613,975
Less: Allowance for credit losses
0
0
0
0
0
0
Net available for sale securities
3,472,389
4,320,055
3,315,726
3,786,377
4,005,324
3,613,975
Securities Held to Maturity
1,020
1,020
1,020
1,020
1,020
1,020
Less: Allowance for credit losses
(19
)
(19
)
(19
)
(17
)
(19
)
(19
)
Net held to maturity securities
1,001
1,001
1,001
1,003
1,001
1,001
Equity Securities
12,832
8,081
11,094
8,945
8,443
8,762
Other Investment Securities
312,684
332,904
322,761
329,429
327,946
330,781
Total Securities
3,798,906
4,662,041
3,650,582
4,125,754
4,342,714
3,954,519
Total Cash and Securities
4,973,791
5,944,964
5,509,443
5,724,697
6,035,071
5,687,165
Loans held for sale
56,298
72,966
66,475
56,261
91,296
44,426
Commercial Loans & Leases
15,815,382
14,980,069
15,894,244
15,535,204
15,083,157
15,725,038
Mortgage Loans
4,763,655
4,347,941
4,759,798
4,728,374
4,437,158
4,769,495
Consumer Loans
1,016,764
1,322,889
956,385
1,109,607
1,261,611
1,038,035
Gross Loans
21,595,801
20,650,899
21,610,427
21,373,185
20,781,926
21,532,568
Unearned income
(12,201
)
(18,356
)
(11,700
)
(14,101
)
(17,635
)
(12,492
)
Loans & Leases, net of unearned
income
21,583,600
20,632,543
21,598,727
21,359,084
20,764,291
21,520,076
Allowance for Loan & Lease Losses
(263,050
)
(240,611
)
(267,423
)
(259,237
)
(250,721
)
(262,905
)
Net Loans
21,320,550
20,391,932
21,331,304
21,099,847
20,513,570
21,257,171
Mortgage Servicing Rights
4,116
14,662
3,934
4,554
4,627
4,241
Goodwill
1,888,889
1,888,889
1,888,889
1,888,889
1,888,889
1,888,889
Other Intangibles
11,275
17,164
10,685
12,505
16,339
11,595
Operating Lease Right-of-Use Asset
85,210
78,872
83,045
86,986
80,641
86,074
Other Real Estate Owned
2,335
4,070
2,156
2,615
3,756
2,670
Bank Owned Life Insurance
491,599
482,791
493,498
486,895
483,906
490,596
Other Assets
536,101
542,502
567,989
563,233
576,556
555,971
Total Assets
$
29,370,164
$
29,438,812
$
29,957,418
$
29,926,482
$
29,694,651
$
30,028,798
MEMO: Interest-earning Assets
$
26,012,725
$
26,121,011
$
26,572,087
$
26,623,652
$
26,335,600
$
26,659,694
Interest-bearing Deposits
$
16,740,124
$
15,520,461
$
17,134,728
$
16,670,239
$
15,918,927
$
16,902,397
Noninterest-bearing Deposits
5,976,971
6,500,259
5,931,712
6,149,080
6,450,826
6,017,349
Total Deposits
22,717,095
22,020,720
23,066,440
22,819,319
22,369,753
22,919,746
Short-term Borrowings
206,234
177,315
203,519
196,095
176,739
207,727
Long-term Borrowings
1,290,405
2,307,485
1,489,764
1,789,103
2,188,438
1,739,434
Total Borrowings
1,496,639
2,484,800
1,693,283
1,985,198
2,365,177
1,947,161
Operating Lease Liability
91,437
83,335
89,308
92,885
85,038
92,266
Other Liabilities
207,100
190,863
251,754
257,840
237,640
262,184
Total Liabilities
24,512,271
24,779,718
25,100,785
25,155,242
25,057,608
25,221,357
Preferred Equity
0
0
0
0
0
0
Common Equity
4,857,893
4,659,094
4,856,633
4,771,240
4,637,043
4,807,441
Total Shareholders' Equity
4,857,893
4,659,094
4,856,633
4,771,240
4,637,043
4,807,441
Total Liabilities & Equity
$
29,370,164
$
29,438,812
$
29,957,418
$
29,926,482
$
29,694,651
$
30,028,798
MEMO: Interest-bearing
Liabilities
$
18,236,763
$
18,005,261
$
18,828,011
$
18,655,437
$
18,284,104
$
18,849,558
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:
2024
2023
2024
2024
2023
Earnings Per Share:
Basic
$
0.71
$
0.68
$
0.64
$
1.36
$
1.42
Diluted
$
0.71
$
0.68
$
0.64
$
1.35
$
1.41
Common Dividend Declared Per
Share
$
0.37
$
0.36
$
0.37
$
0.74
$
0.72
High Common Stock Price
$
36.08
$
35.61
$
38.18
$
38.18
$
42.45
Low Common Stock Price
$
30.68
$
27.68
$
32.92
$
30.68
$
27.68
Average Shares Outstanding (Net of
Treasury Stock):
Basic
135,137,901
134,683,010
134,808,634
134,881,314
134,472,074
Diluted
135,314,785
134,849,818
135,121,380
135,103,288
134,748,868
Common Dividends
$
50,204
$
48,628
$
50,213
$
100,417
$
97,348
Dividend Payout Ratio
52.02
%
52.59
%
57.84
%
54.78
%
51.03
%
June 30
December 31
June 30
March 31
EOP Share
Data:
2024
2023
2023
2024
Book Value Per Share
$
35.92
$
35.36
$
34.37
$
35.56
Tangible Book Value Per Share (non-GAAP)
(1)
$
21.87
$
21.27
$
20.25
$
21.50
52-week High Common Stock Price
$
38.74
$
42.45
$
44.15
$
38.74
Date
12/14/23
2/3/2023
11/11/22
12/14/23
52-week Low Common Stock Price
$
25.35
$
25.35
$
27.68
$
25.35
Date
10/24/23
10/24/23
5/12/23
10/24/23
EOP Shares
Outstanding (Net of Treasury Stock):
135,195,704
134,949,063
134,934,858
135,192,675
Memorandum
Items:
Employees (full-time equivalent)
2,644
2,736
2,799
2,716
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)
$
4,856,633
$
4,771,240
$
4,637,043
$
4,807,441
Less: Total Intangibles
(1,899,574
)
(1,901,394
)
(1,905,228
)
(1,900,484
)
Tangible Equity (non-GAAP)
$
2,957,059
$
2,869,846
$
2,731,815
$
2,906,957
÷ EOP Shares Outstanding (Net of Treasury
Stock)
135,195,704
134,949,063
134,934,858
135,192,675
Tangible Book Value Per Share
(non-GAAP)
$
21.87
$
21.27
$
20.25
$
21.50
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
June 2024
Three Months Ended
June 2023
Three Months Ended
March 2024
Selected Average
Balances and Yields:
Average
Average
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under agreements to resell and other short-term
investments
$
930,453
$
12,787
5.53
%
$
994,072
$
12,706
5.13
%
$
882,656
$
12,303
5.61
%
Investment securities:
Taxable
3,496,310
33,968
3.89
%
4,274,123
36,721
3.44
%
3,743,157
34,722
3.71
%
Tax-exempt
209,114
1,488
2.85
%
387,918
2,718
2.80
%
212,375
1,474
2.78
%
Total securities
3,705,424
35,456
3.83
%
4,662,041
39,439
3.38
%
3,955,532
36,196
3.66
%
Loans and loans held for sale, net of
unearned income (2)
21,639,898
326,808
6.07
%
20,705,509
294,931
5.71
%
21,508,611
321,553
6.01
%
Allowance for loan losses
(263,050
)
(240,611
)
(259,341
)
Net loans and loans held for sale
21,376,848
6.14
%
20,464,898
5.78
%
21,249,270
6.08
%
Total earning assets
26,012,725
$
375,051
5.79
%
26,121,011
$
347,076
5.33
%
26,087,458
$
370,052
5.70
%
Other assets
3,357,439
3,317,801
3,344,925
TOTAL ASSETS
$
29,370,164
$
29,438,812
$
29,432,383
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
16,740,124
$
132,425
3.18
%
$
15,520,461
$
91,577
2.37
%
$
16,663,765
$
128,377
3.10
%
Short-term borrowings
206,234
2,206
4.30
%
177,315
1,489
3.37
%
203,570
2,082
4.11
%
Long-term borrowings
1,290,405
13,838
4.31
%
2,307,485
25,405
4.42
%
1,500,237
16,232
4.35
%
Total interest-bearing liabilities
18,236,763
148,469
3.27
%
18,005,261
118,471
2.64
%
18,367,572
146,691
3.21
%
Noninterest-bearing deposits
5,976,971
6,500,259
5,941,866
Accrued expenses and other liabilities
298,537
274,198
306,469
TOTAL LIABILITIES
24,512,271
24,779,718
24,615,907
SHAREHOLDERS’ EQUITY
4,857,893
4,659,094
4,816,476
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,370,164
$
29,438,812
$
29,432,383
NET INTEREST INCOME
$
226,582
$
228,605
$
223,361
INTEREST RATE SPREAD
2.52
%
2.69
%
2.49
%
NET INTEREST MARGIN
3.50
%
3.51
%
3.44
%
(1) The interest income and the yields on
federally nontaxable loans and investment securities are presented
on a tax-equivalent basis using the statutory federal
income tax rate of 21%.
(2) Nonaccruing loans are included in the
daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Six Months Ended
June 2024
Six Months Ended
June 2023
Selected Average
Balances and Yields:
Average
Average
Average
Average
ASSETS:
Balance
Interest(1)
Rate(1)
Balance
Interest(1)
Rate(1)
Earning Assets:
Federal funds sold and securities
purchased under
agreements to resell and other short-term
investments
$
906,555
$
25,090
5.57
%
$
965,393
$
23,689
4.95
%
Investment securities:
Taxable
3,619,733
68,690
3.80
%
4,339,132
72,980
3.36
%
Tax-exempt
210,745
2,962
2.81
%
387,795
5,458
2.81
%
Total securities
3,830,478
71,652
3.74
%
4,726,927
78,438
3.32
%
Loans and loans held for sale, net of
unearned income (2)
21,574,254
648,361
6.04
%
20,694,619
575,387
5.60
%
Allowance for loan losses
(261,196
)
(237,726
)
Net loans and loans held for sale
21,313,058
6.11
%
20,456,893
5.67
%
Total earning assets
26,050,091
$
745,103
5.74
%
26,149,213
$
677,514
5.21
%
Other assets
3,350,473
3,324,719
TOTAL ASSETS
$
29,400,564
$
29,473,932
LIABILITIES:
Interest-Bearing Liabilities:
Interest-bearing deposits
$
16,701,944
$
260,802
3.14
%
$
15,354,468
$
160,169
2.10
%
Short-term borrowings
204,902
4,288
4.21
%
171,994
2,646
3.10
%
Long-term borrowings
1,395,321
30,070
4.33
%
2,362,437
50,639
4.32
%
Total interest-bearing liabilities
18,302,167
295,160
3.24
%
17,888,899
213,454
2.41
%
Noninterest-bearing deposits
5,959,418
6,697,549
Accrued expenses and other liabilities
301,673
272,575
TOTAL LIABILITIES
24,563,258
24,859,023
SHAREHOLDERS’ EQUITY
4,837,306
4,614,909
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY
$
29,400,564
$
29,473,932
NET INTEREST INCOME
$
449,943
$
464,060
INTEREST RATE SPREAD
2.50
%
2.80
%
NET INTEREST MARGIN
3.47
%
3.57
%
(1) The interest income and the yields on
federally nontaxable loans and investment securities are presented
on a tax-equivalent basis using the statutory federal
income tax rate of 21%.
(2) Nonaccruing loans are included in the
daily average loan amounts outstanding.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
Six Months Ended
June
June
March
June
June
Selected
Financial Ratios:
2024
2023
2024
2024
2023
Return on Average Assets
1.32
%
1.26
%
1.19
%
1.25
%
1.31
%
Return on Average Shareholders’ Equity
7.99
%
7.96
%
7.25
%
7.62
%
8.34
%
Return on Average Tangible Equity
(non-GAAP) (1)
13.12
%
13.47
%
11.98
%
12.55
%
14.20
%
Efficiency Ratio
52.66
%
51.51
%
55.26
%
53.96
%
51.48
%
Price / Earnings Ratio
11.40
x
10.84
x
13.96
x
11.98
x
10.50
x
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)
$
96,507
$
92,459
$
86,814
$
183,321
$
190,766
(b) Number of Days
91
91
91
182
181
Average Total Shareholders'
Equity (GAAP)
$
4,857,893
$
4,659,094
$
4,816,476
$
4,837,306
$
4,614,909
Less: Average Total
Intangibles
(1,900,164
)
(1,906,053
)
(1,901,074
)
(1,900,619
)
(1,906,689
)
(c) Average Tangible Equity
(non-GAAP)
$
2,957,729
$
2,753,041
$
2,915,402
$
2,936,687
$
2,708,220
Return on Average Tangible Equity
(non-GAAP) [(a) / (b)] x 366 or 365 / (c)
13.12
%
13.47
%
11.98
%
12.55
%
14.20
%
Selected
Financial Ratios:
June 30
2024
December 31
2023
June 30
2023
March 31
2024
Loans & Leases, net of unearned income
/ Deposit Ratio
93.64
%
93.60
%
92.82
%
93.89
%
Allowance for Loan & Lease Losses/
Loans & Leases, net of unearned income
1.24
%
1.21
%
1.21
%
1.22
%
Allowance for Credit Losses (2)/ Loans
& Leases, net of unearned income
1.43
%
1.42
%
1.43
%
1.42
%
Nonaccrual Loans / Loans & Leases, net
of unearned income
0.25
%
0.14
%
0.13
%
0.29
%
90-Day Past Due Loans/ Loans & Leases,
net of unearned income
0.06
%
0.07
%
0.07
%
0.05
%
Non-performing Loans/ Loans & Leases,
net of unearned income
0.30
%
0.21
%
0.20
%
0.35
%
Non-performing Assets/ Total Assets
0.23
%
0.16
%
0.15
%
0.26
%
Primary Capital Ratio
17.06
%
16.79
%
16.45
%
16.86
%
Shareholders' Equity Ratio
16.21
%
15.94
%
15.62
%
16.01
%
Price / Book Ratio
0.90
x
1.06
x
0.86
x
1.01
x
Note:
(2) Includes allowances for loan losses
and lending-related commitments.
UNITED BANKSHARES, INC. AND
SUBSIDIARIES
Washington, D.C. and
Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per
Share Data)
Three Months Ended
Six Months Ended
June 30
June 30
March 31
June 30
June 30
Mortgage Banking
Data: (1)
2024
2023
2024
2024
2023
Loans originated
$
185,322
$
271,829
$
176,906
$
362,228
$
449,637
Loans sold
163,273
248,709
188,741
352,014
415,220
June 30
December 31
June 30
March 31
Mortgage Loan
Servicing Data:
2024
2023
2023
2024
Balance of loans serviced
$
1,138,443
$
1,202,448
$
1,242,441
$
1,173,246
Number of loans serviced
11,853
12,419
12,843
12,163
June 30
December 31
June 30
March 31
Asset Quality
Data:
2024
2023
2023
2024
EOP Non-Accrual Loans
$
52,929
$
30,919
$
26,545
$
63,053
EOP 90-Day Past Due Loans
12,402
14,579
15,007
11,329
Total EOP Non-performing Loans
$
65,331
$
45,498
$
41,552
$
74,382
EOP Other Real Estate Owned
2,156
2,615
3,756
2,670
Total EOP Non-performing Assets
$
67,487
$
48,113
$
45,308
$
77,052
Three Months Ended
Six Months Ended
June 30
June 30
March 31
June 30
June 30
Allowance for
Loan & Lease Losses:
2024
2023
2024
2024
2023
Beginning Balance
$
262,905
$
240,491
$
259,237
$
259,237
$
234,746
Gross Charge-offs
(2,542
)
(2,274
)
(3,576
)
(6,118
)
(5,210
)
Recoveries
1,281
1,065
1,506
2,787
2,856
Net Charge-offs
(1,261
)
(1,209
)
(2,070
)
(3,331
)
(2,354
)
Provision for Loan & Lease Losses
5,779
11,439
5,738
11,517
18,329
Ending Balance
$
267,423
$
250,721
$
262,905
$
267,423
$
250,721
Reserve for lending-related
commitments
40,739
46,768
42,915
40,739
46,768
Allowance for Credit Losses (2)
$
308,162
$
297,489
$
305,820
$
308,162
$
297,489
Notes:
(1) During the first quarter of 2024,
United completed its previously announced consolidation of its
mortgage delivery channels. Based on an evaluation performed in
accordance with ASC 280, Segment Reporting, beginning with the
periods as of March 31, 2024, United operates one reportable
business segment. Mortgage banking data above is presented on a
consolidated basis for all current and prior periods.
(2) Includes allowances for loan losses
and lending-related commitments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725766893/en/
W. Mark Tatterson Chief Financial Officer (800) 445-1347 ext.
8716
United Bankshares (NASDAQ:UBSI)
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United Bankshares (NASDAQ:UBSI)
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