United Bankshares : Announces Record Earnings for the Year 2021 - Form 8-K

United Bankshares, Inc. Announces Record Earnings

for the Year 2021

WASHINGTON, D.C. and CHARLESTON, WV- United Bankshares, Inc. (NASDAQ: UBSI) ("United"), today reported earnings for the fourth quarter and the year of 2021. Earnings for the fourth quarter of 2021 were $73.9 million, or $0.56 per diluted share, as compared to earnings of $92.4 million, or $0.71 per diluted share, for the fourth quarter of 2020. Earnings for the year of 2021 were a record $367.7 million as compared to earnings of $289.0 million for the year of 2020. Earnings per diluted share for the year of 2021 were a record $2.83 as compared to earnings per diluted share of $2.40 for the year of 2020.

Fourth quarter 2021 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.04%, 6.44% and 10.87%, respectively, compared to annualized returns on average assets, average equity, and average tangible equity of 1.41%, 8.51% and 14.72%, respectively, for the fourth quarter of 2020. For the year of 2021, United's returns on average assets, average equity and average tangible equity were 1.35%, 8.30% and 14.18%, respectively, compared to returns on average assets, average equity, and average tangible equity of 1.20%, 7.30% and 12.90%, respectively, for the year of 2020.

"2021 was one of the most successful years in our Company's history," stated Richard M. Adams, United's Chairman of the Board and Chief Executive Officer. "We achieved record pre-tax earnings of $463 million, increased earnings per diluted share 18%, and outperformed peer profitability. We increased our dividend for the 48^th consecutive year and successfully completed the acquisition of Community Bankers Trust Corporation, the 33^rd acquisition of the current administration."

On December 3, 2021, United completed its acquisition of Community Bankers Trust Corporation ("Community Bankers Trust"). The results of operations for Community Bankers Trust are included in the consolidated results of operations from the date of acquisition. As a result of the acquisition, the fourth quarter and year of 2021 were impacted by approximately one month of increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2020 and as compared to the third quarter of 2021.

As a result of the acquisition of Carolina Financial Corporation ("Carolina Financial") on May 1, 2020, the year of 2021 reflected higher average balances, income, and expense as compared to the year of 2020.

The fourth quarter and year of 2021 included merger-related expenses associated with the Community Bankers Trust acquisition of $20.4 million and $21.4 million, respectively, compared to $558 thousand and $54.2 million of merger-related expenses associated with the Carolina Financial acquisition for the fourth quarter and year of 2020.

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Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $183.7 million, which was a decrease of $8.3 million, or 4%, from the fourth quarter of 2020. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2021 also decreased $8.3 million, or 4%, from the fourth quarter of 2020 to $184.7 million. The decrease in net interest income and tax-equivalent net interest income was primarily due to lower accretion on acquired loans and lower fee income from Paycheck Protection Program ("PPP") loans. A decrease in interest income due to lower acquired loan accretion income and PPP loan fee income as well as due to a change in the mix of interest earning assets was partially offset by lower interest expense on deposits and borrowings driven by rate repricing. The net interest spread for the fourth quarter of 2021 decreased 32 basis points from the fourth quarter of 2020 due to a 49 basis point decrease in the average yield on earning assets partially offset by a 17 basis point decrease in the average cost of funds. Loan accretion on acquired loans was $6.2 million and $10.9 million for the fourth quarter of 2021 and 2020, respectively, a decrease of $4.7 million. Net PPP loan fee income of $5.0 million was recognized in the fourth quarter of 2021 driven primarily by loan forgiveness, as compared to $7.0 million for the fourth quarter of 2020. Average earning assets for the fourth quarter of 2021 increased $1.8 billion, or 8%, from the fourth quarter of 2020 due to a $1.8 billion increase in average short-term investments and a $833.6 million increase in average investment securities, partially offset by a $862.0 million decrease in average net loans and loans held for sale mainly driven by a decline in PPP loan balances. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 39 basis points from the net interest margin of 3.33% for the fourth quarter of 2020.

Net interest income for the year of 2021 was $742.7 million, which was an increase of $53.0 million, or 8%, from the year of 2020. Tax-equivalent net interest income for the year of 2021 was $747.0 million, an increase of $53.3 million, or 8%, from the year of 2020. The increase in net interest income and tax-equivalent net interest income was primarily due to lower interest expense on deposits and borrowings as well as due to an increase in average earning assets from the Carolina Financial acquisition and PPP loan fee income, partially offset by lower acquired loan accretion income. The net interest spread for the year of 2021 decreased 2 basis points from the year of 2020 due to a 45 basis point decrease in the average yield on earning assets partially offset by a 43 basis point decrease in the average cost of funds. Average earning assets for the year of 2021 increased $2.8 billion, or 13%, from the year of 2020 due to a $1.7 billion increase in average short-term investments, a $628.0 million increase in average investment securities and a $523.9 million increase in average net loans and loans held for sale. Net PPP loan fee income of $33.2 million was recognized in the year of 2021 driven primarily by loan forgiveness, as compared to $16.3 million for the year of 2020. Loan accretion on acquired loans was $33.9 million and $41.8 million for the year of 2021 and 2020, respectively, a decrease of $7.9 million. The net interest margin of 3.09% for the year of 2021 was a decrease of 15 basis points from the net interest margin of 3.24% for the year of 2020.

On a linked-quarter basis, net interest income for the fourth quarter of 2021 increased $2.1 million, or 1%, from the third quarter of 2021. Tax-equivalent net interest income for the fourth quarter of 2021 also increased $2.1 million, or 1%, from the third quarter of 2021. The increase in net interest income and tax-equivalent net interest income was primarily due to an increase in average earning assets due to organic growth and the Community Bankers Trust acquisition as well as lower interest expense on deposits and borrowings partially offset by lower acquired loan accretion and PPP loan fee income. Average earning assets increased approximately $573.2 million, or 2%, from the third quarter of 2021 due to increases in average net loans and

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loans held for sale of $456.0 million and average securities of $333.4 million partially offset by a decrease in average short-term investments of $216.2 million. The net interest spread for the fourth quarter of 2021 of 2.82% decreased 1 basis point from the third quarter of 2021 due to a 5 basis point decrease in the average yield on earning assets partially offset by a 4 basis point decrease in the average cost of funds. Net PPP loan fee income for the fourth quarter of 2021 decreased $2.8 million from the third quarter of 2021 to $5.0 million. Loan accretion on acquired loans decreased $1.9 million from the third quarter of 2021 to $6.2 million for the fourth quarter of 2021. The net interest margin of 2.94% for the fourth quarter of 2021 was a decrease of 4 basis points from the net interest margin of 2.98% for the third quarter of 2021.

Credit Quality

United's asset quality continues to be sound. At December 31, 2021, nonperforming loans were $90.8 million, or 0.50% of loans & leases, net of unearned income, down from $132.2 million, or 0.75% of loans & leases, net of unearned income, at December 31, 2020. Total nonperforming assets of $105.6 million, including other real estate owned ("OREO") of $14.8 million at December 31, 2021, represented 0.36% of total assets as compared to nonperforming assets of $154.8 million, including OREO of $22.6 million, or 0.59% of total assets at December 31, 2020.

The provision for credit losses was a net benefit of $7.4 million and $24.0 million for the fourth quarter and year of 2021, respectively, while the provision for credit losses was an expense of $16.8 million and $106.6 million, respectively, for the fourth quarter and year of 2020. The quarter and year of 2021 included a provision for loan losses of $12.3 million recorded on purchased non-credit deteriorated ("non-PCD") loans from Community Bankers Trust. The year of 2020 included a provision for loan losses of $29.0 million recorded on non-PCD loans from Carolina Financial. The decrease in the provision in relation to the prior year quarter and year of 2020 was also driven by the impact of better performance trends within the loan portfolio and improvements in the reasonable and supportable forecasts of future macroeconomic conditions on the estimate of expected credit losses under CECL. On a linked-quarter basis, the provision for credit losses for the fourth quarter of 2021 was a net benefit of $7.4 million compared to a net benefit of $7.8 million for the third quarter of 2021.

As of December 31, 2021, the allowance for loan losses was $216.0 million, or 1.20% of loans & leases, net of unearned income, as compared to $235.8 million, or 1.34% of loans & leases, net of unearned income, at December 31, 2020. Net charge-offs were $125 thousand for the fourth quarter of 2021 compared to net charge-offs of $6.9 million for the fourth quarter of 2020. Net charge-offs were $8.7 million for the year of 2021 compared to net charge-offs of $23.6 million for the year of 2020. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.003% and 0.05% for the fourth quarter and year of 2021, respectively, compared to annualized net charge-offs of 0.16% and 0.14% for the fourth quarter and year of 2020. Net recoveries were $1.2 million for the third quarter of 2021.

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Noninterest Income

Noninterest income for the fourth quarter of 2021 was $54.0 million, which was a decrease of $40.0 million, or 43%, from the fourth quarter of 2020 primarily driven by a $43.5 million decrease in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower margin on loans sold in the secondary market. Partially offsetting the decreases in noninterest income were increases in fees from deposit services of $1.0 million, fees from trust services of $742 thousand and fees from brokerage services of $574 thousand.

Noninterest income for the year of 2021 was $278.1 million, which was a decrease of $76.7 million, or 22%, from the year of 2020. The decrease was driven primarily by a $94.4 million decrease in income from mortgage banking activities due primarily to a lower loan pipeline valuation and a lower margin on loans sold in the secondary market. The year of 2021 included fees from deposit services of $38.7 million, an increase of $3.9 million from the year of 2020, fees from trust services of $16.6 million, an increase of $2.6 million from the year of 2020 and fees from brokerage services of $15.6 million, an increase of $3.8 million from the year of 2020. Mortgage loan servicing income was $9.6 million for the year of 2021 compared to $6.2 million for the year of 2020, an increase of $3.4 million due to the Carolina Financial acquisition. The year of 2020 also included a gain on the sale of a bank premises of $2.2 million.

On a linked-quarter basis, noninterest income for the fourth quarter of 2021 decreased $14.6 million, or 21%, from the third quarter of 2021 primarily due to a decrease of $14.7 million in income from mortgage banking activities due primarily to lower mortgage loan origination and sale volume and a lower loan pipeline valuation.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $151.8 million, a decrease of $4.3 million, or 3%, from the fourth quarter of 2020. Employee compensation decreased $5.5 million due to lower employee commissions, incentives and overtime related to mortgage banking production partially offset by $2.5 million of merger-related expenses from the Community Bankers Trust acquisition as well as additional employees from the acquisition. OREO expense decreased $2.1 million due to a decrease in net losses on the sale of OREO properties and fewer declines in the fair value of OREO properties. Partially offsetting the decreases in noninterest expense were increases in data processing expense of $3.6 million primarily due to $3.5 million of merger-related expenses associated with the Community Bankers Trust acquisition. Other expense increased $1.9 million driven by an increase in the reserve for unfunded loan commitments of $2.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust.

Noninterest expense for the year of 2021 was $581.9 million, an increase of $3.7 million, or less than 1%, from the year of 2020. Employee compensation increased $5.3 million from the year of 2020 primarily due to the Carolina Financial and Community Bankers Trust acquisitions partially offset by lower employee compensation expense related to mortgage banking production. Additionally, noninterest expense increased slightly from the year of 2020 due to increases of $5.1 million in equipment expense, $5.0 million in employee benefits and $2.8 million in mortgage loan servicing expense and impairment. The increases in equipment expense, employee benefits and mortgage loan servicing expense and impairment were mainly from the

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Carolina Financial acquisition. Offsetting the increases in noninterest expense was a decrease in data processing expense of $4.0 million, due to a penalty of $9.7 million to terminate Carolina Financial's data processing contract incurred in the second quarter of 2020, partially offset by $3.5 million of merger-related termination and conversion expenses associated with the Community Bankers Trust acquisition in the fourth quarter of 2021. The year of 2020 also included $10.4 million in prepayment penalties on the early payoff of FHLB advances compared to $15 thousand for the year of 2021.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2021 increased $9.5 million, or 7%, from the third quarter of 2021 primarily due to an increase of $4.1 million in employee compensation, $4.2 million in data processing and $3.3 million in other expense. The increases in employee compensation and data processing expense were primarily due to the Community Bankers Trust acquisition. Within other expense, the largest driver of the increase was an increase in the reserve for unfunded loan commitments of $1.8 million, including $844 thousand related to loan commitments acquired from Community Bankers Trust. Partially offsetting the increases in noninterest expense were decreases in employee benefits of $2.3 million and mortgage loan servicing expense and impairment of $1.0 million.

Income Tax Expense

For the fourth quarter of 2021, income tax expense was $19.5 million as compared to $20.8 million for the fourth quarter of 2020 primarily due to lower earnings partially offset by a higher effective tax rate. For the year of 2021, income tax expense was $95.1 million as compared to $70.7 million for the year of 2020 primarily due to higher earnings and a slightly higher effective tax rate. On a linked-quarter basis, income tax expense decreased $4.1 million primarily due to lower earnings. United's effective tax rate was 20.9% for the fourth quarter of 2021, 18.4% for the fourth quarter of 2020 and 20.4% for the third quarter of 2021. For the year of 2021 and 2020, United's effective tax rate was 20.6% and 19.7%, respectively.

Regulatory Capital

United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 15.4% at December 31, 2021, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.4%, 13.4% and 11.0%, respectively. The December 31, 2021 ratios reflect United's election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

About United Bankshares, Inc.

As of December 31, 2021, United had consolidated assets of approximately $29.3 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United's stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

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Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2021 consolidated financial statements on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2021 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United's management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21%.

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words "expect," "may," "could," "intend," "project," "estimate," "believe," "anticipate," and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these "forward-looking statements." The following factors, among others, could cause the actual results of United's operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic, on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S .fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the OCC, Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United's funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; risks relating to the merger with Community Bankers Trust, including the successful integration of operations of Community Bankers Trust, the expected growth opportunities and costs savings from the merger, and deposit attrition, operating costs, customer losses and business disruption following the merger; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United's expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

		Three Months Ended			Year Ended
EARNINGS SUMMARY:		December 2021			December 2020			December 2021			December 2020
Interest income		$	195,194			$	208,914			$	795,117			$	798,382
Interest expense			11,516				16,925				52,383				108,609
Net interest income			183,678				191,989				742,734				689,773
Provision for credit losses			(7,405	)			16,751				(23,970	)			106,562
Noninterest income			54,049				94,082				278,092				354,746
Noninterest expense			151,789				156,117				581,943				578,217
Income before income taxes			93,343				113,203				462,853				359,740
Income taxes			19,491				20,833				95,115				70,717
Net income		$	73,852			$	92,370			$	367,738			$	289,023
PER COMMON SHARE:
Net income:
Basic		$	0.56			$	0.71			$	2.84			$	2.40
Diluted			0.56				0.71				2.83				2.40
Cash dividends		$	0.36			$	0.35				1.41				1.40
Book value					34.60				33.27
Closing market price				$	36.28			$	32.40
Common shares outstanding:
Actual at period end, net of treasury shares					136,392,758				129,188,507
Weighted average-basic			130,939,640				129,371,600				129,276,452				120,017,247
Weighted average-diluted			131,295,816				129,479,390				129,512,853				120,090,232
FINANCIAL RATIOS:
Return on average assets			1.04	%			1.41	%			1.35	%			1.20	%
Return on average shareholders' equity			6.44	%			8.51	%			8.30	%			7.30	%
Return on average tangible equity (non-GAAP)(1)			10.87	%			14.72	%			14.18	%			12.90	%
Average equity to average assets			16.22	%			16.54	%			16.26	%			16.39	%
Net interest margin			2.94	%			3.33	%			3.09	%			3.24	%
PERIOD END BALANCES:		December 31 2021			December 31 2020			December 31 2019			September 30 2021
Assets		$	29,328,902			$	26,184,247			$	19,662,324			$	27,507,517
Earning assets			26,083,089				23,172,403				17,344,638				24,415,973
Loans & leases, net of unearned income			18,023,648				17,591,413				13,712,129				16,743,629
Loans held for sale			504,416				718,937				387,514				493,299
Investment securities			4,295,749				3,186,184				2,669,797				3,646,065
Total deposits			23,350,263				20,585,160				13,852,421				21,822,609
Shareholders' equity			4,718,628				4,297,620				3,363,833				4,430,766

Note: (1) See information under the "Selected Financial Ratios" table for a reconciliation of non-GAAP measure.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Statements of Income

		Three Months Ended
		December 2021			December 2020			September 2021			June 2021			March 2021
Interest & Loan Fees Income (GAAP)		$	195,194			$	208,914			$	194,080			$	200,186			$	205,657
Tax equivalent adjustment			1,037				1,042				1,059				1,075				1,047
Interest & Fees Income (FTE) (non-GAAP)			196,231				209,956				195,139				201,261				206,704
Interest Expense			11,516				16,925				12,501				13,669				14,697
Net Interest Income (FTE) (non-GAAP)			184,715				193,031				182,638				187,592				192,007
Provision for Credit Losses			(7,405	)			16,751				(7,829	)			(8,879	)			143
Noninterest Income:
Fees from trust services			4,327				3,585				4,269				4,193				3,763
Fees from brokerage services			3,699				3,125				3,883				3,654				4,323
Fees from deposit services			10,509				9,501				9,888				9,396				8,896
Bankcard fees and merchant discounts			1,580				1,129				1,473				1,368				1,064
Other charges, commissions, and fees			753				753				703				775				759
Income from bank-owned life insurance			1,223				1,479				2,556				1,658				1,403
Income from mortgage banking activities			27,342				70,793				42,012				36,943				65,395
Mortgage loan servicing income			2,435				2,334				2,429				2,386				2,355
Net gain on the sale of bank premises			0				0				0				0				0
Net (losses) gains on investment securities			(39	)			589				82				24				2,609
Other noninterest income			2,220				794				1,329				2,449				2,006
Total Noninterest Income			54,049				94,082				68,624				62,846				92,573
Noninterest Expense:
Employee compensation			71,542				77,001				67,459				68,557				72,412
Employee benefits			10,819				12,103				13,132				14,470				15,450
Net occupancy			10,653				10,979				10,339				10,101				10,941
Data processing			10,852				7,280				6,612				6,956				7,026
Amortization of intangibles			1,509				1,691				1,466				1,467				1,466
OREO expense			1,004				3,069				387				372				3,625
Equipment expense			6,819				6,396				7,286				5,830				6,044
FDIC insurance expense			2,626				2,250				1,920				1,800				2,000
Mortgage loan servicing expense and impairment			2,217				3,482				3,253				3,599				3,177
Prepayment penalties on FHLB borrowings			15				0				0				0				0
Other noninterest expense			33,733				31,866				30,422				25,799				26,786
Total Noninterest Expense			151,789				156,117				142,276				138,951				148,927
Income Before Income Taxes (FTE) (non-GAAP)			94,380				114,245				116,815				120,366				135,510
Tax equivalent adjustment			1,037				1,042				1,059				1,075				1,047
Income Before Income Taxes (GAAP)			93,343				113,203				115,756				119,291				134,463
Taxes			19,491				20,833				23,604				24,455				27,565
Net Income		$	73,852			$	92,370			$	92,152			$	94,836			$	106,898
MEMO: Effective Tax Rate			20.88	%			18.40	%			20.39	%			20.50	%			20.50	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Statements of Income

		Year Ended
		December 2021			December 2020			December 2019			December 2018
Interest & Loan Fees Income (GAAP)		$	795,117			$	798,382			$	762,562			$	717,715
Tax equivalent adjustment			4,218				3,888				3,735				4,328
Interest & Fees Income (FTE) (non-GAAP)			799,335				802,270				766,297				722,043
Interest Expense			52,383				108,609				184,640				129,070
Net Interest Income (FTE) (non-GAAP)			746,952				693,661				581,657				592,973
Provision for Credit Losses			(23,970	)			106,562				21,313				22,013
Noninterest Income:
Fees from trust services			16,552				13,903				13,873				12,930
Fees from brokerage services			15,559				11,758				10,136				9,347
Fees from deposit services			38,689				34,833				33,768				33,973
Bankcard fees and merchant discounts			5,485				4,066				4,674				5,168
Other charges, commissions, and fees			2,990				2,596				2,241				2,228
Income from bank-owned life insurance			6,840				7,217				7,339				5,045
Income from mortgage banking activities			171,692				266,094				76,951				58,109
Mortgage loan servicing income			9,605				6,213				0				0
Net gain on the sale of bank premises			0				2,229				0				2,763
Net gains (losses) on investment securities			2,676				3,155				175				(2,618	)
Other noninterest income			8,004				2,682				1,327				1,767
Total Noninterest Income			278,092				354,746				150,484				128,712
Noninterest Expense:
Employee compensation			279,970				274,661				173,962				164,468
Employee benefits			53,871				48,870				35,745				36,172
Net occupancy			42,034				41,303				34,850				36,462
Data processing			31,446				35,420				22,232				23,800
Amortization of intangibles			5,908				6,605				7,016				8,039
OREO expense			5,388				5,748				5,336				3,444
Equipment expense			25,979				20,861				14,210				13,846
FDIC insurance expense			8,346				10,132				8,070				11,464
Mortgage loan servicing expense and impairment			12,246				9,431				423				271
Prepayment penalties on FHLB borrowings			15				10,385				5,105				0
Other noninterest expense			116,740				114,801				75,705				70,213
Total Noninterest Expense			581,943				578,217				382,654				368,179
Income Before Income Taxes (FTE) (non-GAAP)			467,071				363,628				328,174				331,493
Tax equivalent adjustment			4,218				3,888				3,735				4,328
Income Before Income Taxes (GAAP)			462,853				359,740				324,439				327,165
Taxes			95,115				70,717				64,340				70,823
Net Income		$	367,738			$	289,023			$	260,099			$	256,342
MEMO: Effective Tax Rate			20.55	%			19.66	%			19.83	%			21.65	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

		December 2021 Q-T-D Average			December 2020 Q-T-D Average			December 31 2021			December 31 2020			December 31 2019
Cash & Cash Equivalents		$	3,913,480			$	2,048,915			$	3,758,170			$	2,209,068			$	837,493
Securities Available for Sale			3,669,387				2,849,102				4,042,699				2,953,359				2,437,296
Less: Allowance for credit losses			0				0				0				0				0
Net available for sale securities			3,669,387				2,849,102				4,042,699				2,953,359				2,437,296
Securities Held to Maturity			1,020				1,235				1,020				1,235				1,446
Less: Allowance for credit losses			(27	)			(21	)			(19	)			(23	)			0
Net held to maturity securities			993				1,214				1,001				1,212				1,446
Equity Securities			12,161				10,399				12,404				10,718				8,894
Other Investment Securities			230,535				218,741				239,645				220,895				222,161
Total Securities			3,913,076				3,079,456				4,295,749				3,186,184				2,669,797
Total Cash and Securities			7,826,556				5,128,371				8,053,919				5,395,252				3,507,290
Loans held for sale			482,387				720,896				504,416				718,937				387,514
Commercial Loans & Leases			13,028,313				13,296,380				13,809,735				13,165,497				9,399,170
Mortgage Loans			2,908,187				3,269,073				3,008,410				3,197,274				3,107,721
Consumer Loans			1,240,676				1,253,421				1,233,162				1,259,812				1,206,657
Gross Loans			17,177,176				17,818,874				18,051,307				17,622,583				13,713,548
Unearned income			(27,666	)			(38,502	)			(27,659	)			(31,170	)			(1,419	)
Loans & Leases, net of unearned income			17,149,510				17,780,372				18,023,648				17,591,413				13,712,129
Allowance for Loan & Leases Losses			(218,550	)			(225,918	)			(216,016	)			(235,830	)			(77,057	)
Net Loans			16,930,960				17,554,454				17,807,632				17,355,583				13,635,072
Mortgage Servicing Rights			22,851				20,766				23,144				20,955				0
Goodwill			1,833,187				1,794,997				1,886,494				1,796,848				1,478,014
Other Intangibles			22,954				27,580				24,413				26,923				29,931
Operating Lease Right-of-Use Asset			75,254				72,090				81,942				69,520				57,783
Other Real Estate Owned			15,451				26,316				14,823				22,595				15,515
Other Assets			857,680				771,233				932,119				777,634				551,205
Total Assets		$	28,067,280			$	26,116,703			$	29,328,902			$	26,184,247			$	19,662,324
MEMO: Interest-earning Assets		$	24,935,489			$	23,122,784			$	26,083,089			$	23,172,403			$	17,344,638
Interest-bearing Deposits		$	13,653,822			$	13,018,640			$	14,369,716			$	13,179,900			$	9,231,059
Noninterest-bearing Deposits			8,678,093				7,495,594				8,980,547				7,405,260				4,621,362
Total Deposits			22,331,915				20,514,234				23,350,263				20,585,160				13,852,421
Short-term Borrowings			127,731				144,177				128,844				142,300				374,654
Long-term Borrowings			816,518				901,655				817,394				864,369				1,838,029
Total Borrowings			944,249				1,045,832				946,238				1,006,669				2,212,683
Operating Lease Liability			80,118				75,805				86,703				73,213				61,342
Other Liabilities			159,364				161,580				227,070				221,585				172,045
Total Liabilities			23,515,646				21,797,451				24,610,274				21,886,627				16,298,491
Preferred Equity			0				0				0				0				0
Common Equity			4,551,634				4,319,252				4,718,628				4,297,620				3,363,833
Total Shareholders' Equity			4,551,634				4,319,252				4,718,628				4,297,620				3,363,833
Total Liabilities & Equity		$	28,067,280			$	26,116,703			$	29,328,902			$	26,184,247			$	19,662,324
MEMO: Interest-bearing Liabilities		$	14,598,071			$	14,064,472			$	15,315,954			$	14,186,569			$	11,443,742

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

		Three Months Ended
Quarterly Share Data:		December 2021			December 2020			September 2021			June 2021			March 2021
Earnings Per Share:
Basic		$	0.56			$	0.71			$	0.71			$	0.73			$	0.83
Diluted		$	0.56			$	0.71			$	0.71			$	0.73			$	0.83
Common Dividend Declared Per Share		$	0.36			$	0.35			$	0.35			$	0.35			$	0.35
High Common Stock Price		$	39.41			$	32.86			$	37.12			$	42.50			$	41.61
Low Common Stock Price		$	33.34			$	21.19			$	31.74			$	36.19			$	31.57
Average Shares Outstanding (Net of Treasury Stock):
Basic			130,939,640				129,371,600				128,762,815				128,750,851				128,635,740
Diluted			131,295,816				129,479,390				128,960,220				129,033,988				128,890,861
Common Dividends		$	46,564			$	45,442			$	45,271			$	45,268			$	45,254
Dividend Payout Ratio			63.05	%			49.20	%			49.13	%			47.73	%			42.33	%
					Year Ended
Year-to-Date Share Data:					December 2021			December 2020			December 2019			December 2018
Earnings Per Share:
Basic			$	2.84			$	2.40			$	2.55			$	2.46
Diluted			$	2.83			$	2.40			$	2.55			$	2.45
Common Dividend Declared Per Share			$	1.41			$	1.40			$	1.37			$	1.36
Average Shares Outstanding (Net of Treasury Stock):
Basic				129,276,452				120,017,247				101,585,599				104,015,976
Diluted				129,512,853				120,090,232				101,852,577				104,298,825
Common Dividends			$	182,357			$	171,876			$	139,508			$	141,610
Dividend Payout Ratio				49.59	%			59.47	%			53.64	%			55.24	%
EOP Share Data:		December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
Book Value Per Share		$	34.60			$	33.27			$	34.29			$	34.01			$	33.54
Tangible Book Value Per Share (non-GAAP)(1)		$	20.59			$	19.15			$	20.11			$	19.81			$	19.38
52-week High Common Stock Price		$	42.50			$	39.07			$	42.50			$	42.50			$	41.61
Date			05/18/21				01/02/20				05/18/21				05/18/21				03/18/21
52-week Low Common Stock Price		$	31.57			$	19.67			$	21.19			$	20.57			$	20.57
Date			1/29/21				03/23/20				10/01/20				09/25/20				09/25/20
EOP Shares Outstanding (Net of Treasury Stock):			136,392,758				129,188,507				129,203,774				129,203,593				129,175,800
Memorandum Items:
EOP Employees (full-time equivalent)			3,143				3,051				2,986				3,012				3,033
Note:
(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP)		$	4,718,628			$	4,297,620			$	4,430,766			$	4,393,713			$	4,332,698
Less: Total Intangibles			(1,910,907	)			(1,823,771	)			(1,832,564	)			(1,834,030	)			(1,829,495	)
Tangible Equity (non-GAAP)		$	2,807,721			$	2,473,849			$	2,598,202			$	2,559,683			$	2,503,203
÷ EOP Shares Outstanding (Net of Treasury Stock)			136,392,758				129,188,507				129,203,774				129,203,593				129,175,800
Tangible Book Value Per Share (non-GAAP)		$	20.59			$	19.15			$	20.11			$	19.81			$	19.38

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

		Three Months Ended
		December 2021			December 2020			September 2021			June 2021			March 2021
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale			4.04	%			4.18	%			4.15	%			4.18	%			4.26	%
Investment Securities			1.72	%			2.08	%			1.71	%			1.87	%			1.93	%
Money Market Investments/FFS			0.28	%			0.42	%			0.26	%			0.24	%			0.34	%
Average Earning Assets Yield			3.13	%			3.62	%			3.18	%			3.37	%			3.56	%
Interest-bearing Deposits			0.26	%			0.43	%			0.29	%			0.33	%			0.37	%
Short-term Borrowings			0.52	%			0.55	%			0.54	%			0.54	%			0.51	%
Long-term Borrowings			1.23	%			1.15	%			1.23	%			1.22	%			1.23	%
Average Liability Costs			0.31	%			0.48	%			0.35	%			0.39	%			0.42	%
Net Interest Spread			2.82	%			3.14	%			2.83	%			2.98	%			3.14	%
Net Interest Margin			2.94	%			3.33	%			2.98	%			3.14	%			3.30	%
Selected Financial Ratios:
Return on Average Assets			1.04	%			1.41	%			1.33	%			1.41	%			1.64	%
Return on Average Shareholders' Equity			6.44	%			8.51	%			8.23	%			8.69	%			9.97	%
Return on Average Tangible Equity (non-GAAP)(1)			10.87	%			14.72	%			14.03	%			14.95	%			17.20	%
Efficiency Ratio			63.85	%			54.57	%			56.86	%			55.72	%			52.53	%
Note:
(1) Return on Average Tangible Equity:
(a) Net Income (GAAP)		$	73,852			$	92,370			$	92,152			$	94,836			$	106,898
(b) Number of Days			92				92				92				91				90
Average Total Shareholders' Equity (GAAP)		$	4,551,634			$	4,319,252			$	4,440,107			$	4,378,898			$	4,346,750
Less: Average Total Intangibles			(1,856,141	)			(1,822,577	)			(1,833,449	)			(1,834,920	)			(1,825,639	)
(c) Average Tangible Equity (non-GAAP)		$	2,695,493			$	2,496,675			$	2,606,658			$	2,543,978			$	2,521,111
Return on Average Tangible Equity (non-GAAP) [(a) / (b)] x 365 or 366 / (c)			10.87	%			14.72	%			14.03	%			14.95	%			17.20	%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

		Year Ended
		December 2021			December 2020			December 2019			December 2018
Selected Yields and Net Interest Margin:
Net Loans and Loans held for sale			4.16	%			4.27	%			4.85	%			4.77	%
Investment Securities			1.80	%			2.33	%			2.86	%			2.73	%
Money Market Investments/FFS			0.28	%			0.65	%			2.91	%			2.29	%
Average Earning Assets Yield			3.30	%			3.75	%			4.47	%			4.36	%
Interest-bearing Deposits			0.31	%			0.67	%			1.41	%			0.97	%
Short-term Borrowings			0.52	%			0.70	%			1.67	%			1.00	%
Long-term Borrowings			1.23	%			1.76	%			2.56	%			2.34	%
Average Liability Costs			0.37	%			0.80	%			1.60	%			1.15	%
Net Interest Spread			2.93	%			2.95	%			2.87	%			3.21	%
Net Interest Margin			3.09	%			3.24	%			3.39	%			3.58	%
Selected Financial Ratios:
Return on Average Assets			1.35	%			1.20	%			1.34	%			1.36	%
Return on Average Shareholders' Equity			8.30	%			7.30	%			7.80	%			7.84	%
Return on Average Tangible Equity (non-GAAP)(1)			14.18	%			12.90	%			14.26	%			14.65	%
Efficiency Ratio			57.01	%			55.36	%			52.53	%			51.32	%
Note:
(1)   Return on Average Tangible Equity:
(a) Net Income (GAAP)		$	367,738			$	289,023			$	260,099			$	256,342
Average Total Shareholders' Equity (GAAP)			4,430,688				3,956,969				3,336,075				3,268,944
Less: Average Total Intangibles			(1,837,609	)			(1,716,738	)			(1,511,501	)			(1,519,174	)
(b) Average Tangible Equity (non-GAAP)		$	2,593,079			$	2,240,231			$	1,824,574			$	1,749,770
Return on Average Tangible Equity (non-GAAP) [(a) / (b)]			14.18	%			12.90	%			14.26	%			14.65	%
Selected Financial Ratios:		December 31 2021			December 31 2020			December 31 2019			December 31 2018
Loans & Leases, net of unearned income / Deposit Ratio			77.19	%			85.46	%			98.99	%			95.91	%
Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income			1.20	%			1.34	%			0.56	%			0.57	%
Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income			1.37	%			1.45	%			0.57	%			0.58	%
Nonaccrual Loans / Loans & Leases, net of unearned income			0.20	%			0.36	%			0.46	%			0.51	%
90-Day Past Due Loans/ Loans & Leases, net of unearned income			0.10	%			0.08	%			0.07	%			0.11	%
Non-performing Loans/ Loans & Leases, net of unearned income			0.50	%			0.75	%			0.96	%			1.06	%
Non-performing Assets/ Total Assets			0.36	%			0.59	%			0.75	%			0.83	%
Primary Capital Ratio			16.79	%			17.22	%			17.44	%			17.23	%
Shareholders' Equity Ratio			16.09	%			16.41	%			17.11	%			16.89	%
Price / Book Ratio			1.05	x			0.97	x			1.17	x			0.98	x
Price / Earnings Ratio			12.82	x			13.50	x			15.14	x			12.71	x

Note:

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

		Three Months Ended
Mortgage Banking Segment Data:		December 2021			December 2020			September 2021			June 2021			March 2021
Applications		$	1,534,311			$	2,284,532			$	1,893,870			$	2,029,846			$	2,630,426
Loans originated			1,287,629				1,979,284				1,385,871				1,658,128				1,910,619
Loans sold		$	1,273,014			$	2,065,400			$	1,470,928			$	1,877,772			$	1,817,884
Purchase money % of loans closed			69	%			49	%			69	%			69	%			43	%
Realized gain on sales and fees as a % of loans sold			3.02	%			4.10	%			3.00	%			2.90	%			4.16	%
Net interest income		$	2,609			$	2,918			$	2,367			$	2,871			$	2,650
Other income			30,921				73,082				45,023				39,765				67,507
Other expense			29,147				41,193				31,787				36,391				41,183
Income taxes			876				5,656				3,179				1,280				5,940
Net income		$	3,507			$	29,151			$	12,424			$	4,965			$	23,034
					Year Ended
Mortgage Banking Segment Data:					December 2021			December 2020			December 2019			December 2018
Applications			$	8,088,453			$	9,988,227			$	4,330,000			$	3,912,000
Loans originated				6,242,246				6,648,247				2,941,722				2,619,454
Loans sold			$	6,439,598			$	6,393,394			$	2,804,451			$	2,608,242
Purchase money % of loans closed				61	%			47	%			72	%			83	%
Realized gain on sales and fees as a % of loans sold				3.31	%			3.63	%			2.86	%			2.72	%
Net interest income			$	10,497			$	8,853			$	916			$	1,315
Other income				183,216				276,185				83,884				68,555
Other expense				138,508				140,628				72,288				72,632
Income taxes				11,275				27,698				2,355				(505	)
Net income (loss)			$	43,930			$	116,712			$	10,157			$	(2,257	)
Period End Mortgage Banking Segment Data:		December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
Locked pipeline		$	448,889			$	989,640			$	648,706			$	660,258			$	979,842
Balance of loans serviced		$	3,698,998			$	3,587,953			$	3,723,206			$	3,674,023			$	3,585,890
Number of loans serviced			25,198				25,614				25,583				25,526				25,443

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Asset Quality Data:		December 31 2021			December 31 2020			September 30 2021			June 30 2021			March 31 2021
EOP Non-Accrual Loans		$	36,028			$	62,718			$	37,689			$	41,182			$	48,985
EOP 90-Day Past Due Loans			18,879				13,832				14,827				14,135				15,719
EOP Restructured Loans (1)			35,856				55,657				37,752				47,271				51,529
Total EOP Non-performing Loans		$	90,763			$	132,207			$	90,268			$	102,588			$	116,233
EOP Other Real Estate Owned			14,823				22,595				16,696				18,474				18,690
Total EOP Non-performing Assets		$	105,586			$	154,802			$	106,964			$	121,062			$	134,923
		Three Months Ended
Allowance for Loan Losses:		December 2021			December 2020			September 2021			June 2021			March 2021
Beginning Balance		$	210,891			$	225,812			$	217,545			$	231,582			$	235,830
Cumulative Effect Adjustment for CECL			0				0				0				0				0
		210,891				225,812				217,545				231,582				235,830
Initial allowance for acquired PCD loans			12,629				0				0				0				0
Gross Charge-offs			(4,205	)			(10,120	)			(2,004	)			(6,131	)			(6,957	)
Recoveries			4,080				3,203				3,173				910				2,415
Net (Charge-offs) Recoveries			(125	)			(6,917	)			1,169				(5,221	)			(4,542	)
Provision for Loan & Lease Losses			(7,379	)			16,935				(7,823	)			(8,816	)			294
Ending Balance			216,016				235,830				210,891				217,545				231,582
Reserve for lending-related commitments			31,442				19,250				25,191				20,897				20,024
Allowance for Credit Losses (2)		$	247,458			$	255,080			$	236,082			$	238,442			$	251,606
					Year Ended
Allowance for Loan Losses:					December 2021			December 2020			December 2019			December 2018
Beginning Balance			$	235,830			$	77,057			$	76,703			$	76,627
Cumulative Effect Adjustment for CECL				0				57,442				0				0
			235,830				134,499				76,703				76,627
Initial allowance for acquired PCD loans				12,629				18,635				0				0
Gross Charge-offs				(19,297	)			(32,983	)			(29,110	)			(28,606	)
Recoveries				10,578				9,386				8,151				6,669
Net (Charge-offs)				(8,719	)			(23,597	)			(20,959	)			(21,937	)
Provision for Loan & Lease Losses				(23,724	)			106,293				21,313				22,013
Ending Balance				216,016				235,830				77,057				76,703
Reserve for lending-related commitments				31,442				19,250				1,733				1,389
Allowance for Credit Losses (2)			$	247,458			$	255,080			$	78,790			$	78,092

Notes:

(1)

Restructured loans with an aggregate balance of $22,421, $41,185, $24,662, $32,471, and $38,023 at December 31, 2021, December 31, 2020, September 30, 2021, June 30, 2021 and March 31, 2021, respectively, were on nonaccrual status, but are not included in "EOP Non-Accrual Loans" above. Restructured loans with an aggregate balance of $102 thousand and $46 thousand at December 31, 2021 and June 30, 2021, respectively, were 90 days past due, but not included in "EOP Non-Accrual Loans" above.

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