United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and year of 2016. Earnings for the fourth quarter of 2016 were $39.1 million or $0.51 per diluted share, an increase from earnings of $33.5 million or $0.48 per diluted share for the fourth quarter of 2015. Earnings for the year of 2016 were $147.1 million or $1.99 per diluted share, up from earnings of $138.0 million or $1.98 per diluted share for the year of 2015.

Fourth quarter of 2016 results produced an annualized return on average assets of 1.10% and an annualized return on average equity of 7.50%. For the year of 2016, United’s return on average assets was 1.10% while the return on average equity was 7.67%. United’s annualized returns on average assets and average equity were 1.07% and 7.68%, respectively, for the fourth quarter of 2015 while the returns on average assets and average equity were 1.12% and 8.10%, respectively, for the year of 2015.

“The year of 2016 was an active and successful year for United Bankshares,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We increased diluted earnings per share to $1.99 while achieving record earnings before income taxes of $223 million. United’s return on average assets for the year of 2016 was 1.10% compared to our Federal Reserve peer group’s (bank holding companies with total assets over $10 billion) most recently reported return on average assets of 0.90%. We increased dividends to $1.32 per share which represented the 43rd consecutive year of dividend increases to our shareholders. This is a record only one other major banking company in the USA has been able to achieve. In addition, we completed our acquisition of Bank of Georgetown and announced an agreement to merge with Cardinal Financial Corporation, which will be the largest acquisition in our history.”

On June 3, 2016, United completed its acquisition of Bank of Georgetown of Washington, D.C. The results of operations of Bank of Georgetown are included in the consolidated results of operations from the date of acquisition. As a result, the fourth quarter and year of 2016 were impacted by increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2015. At consummation, Bank of Georgetown had assets of approximately $1.3 billion, loans of $999.8 million, and deposits of $971.4 million. In addition, the year of 2016 included $6.1 million of merger and acquisition expenses related to the Bank of Georgetown acquisition and the planned merger with Cardinal Financial Corporation, announced on August 18, 2016.

Net interest income for the fourth quarter of 2016 was $113.3 million, which was an increase of $16.1 million or 17% from the fourth quarter of 2015. The $16.1 million increase in net interest income occurred because total interest income increased $18.4 million while total interest expense only increased $2.3 million from the fourth quarter of 2015. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2016 was $114.8 million, an increase of $16.0 million or 16% from the fourth quarter of 2015 due mainly to an increase in average earning assets from the Bank of Georgetown acquisition. Average earning assets for the fourth quarter of 2016 increased $1.6 billion or 15% from the fourth quarter of 2015 due mainly to a $1.1 billion or 12% increase in average net loans. Average short-term investments increased $310.7 million or 50% while average investment securities increased $161.5 million or 13%. The fourth quarter of 2016 average yield on earning assets increased 8 basis points from the fourth quarter of 2015 due to additional loan accretion of $4.4 million on acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2016 was an increase of 4 basis points in the average cost of funds as compared to the fourth quarter of 2015 due to the higher market interest rates. The net interest margin of 3.62% for the fourth quarter of 2016 was an increase of 6 basis points from the net interest margin of 3.56% for the fourth quarter of 2015.

Net interest income for the year of 2016 was $425.3 million, which was an increase of $41.2 million or 11% from the year of 2015. The $41.2 million increase in net interest income occurred because total interest income increased $46.7 million while total interest expense only increased $5.5 million from the year of 2015. Tax-equivalent net interest income for the year of 2016 was $431.5 million, an increase of $40.8 million or 10% from the year of 2015. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Bank of Georgetown acquisition. Average earning assets increased $1.0 billion or 9% from the year of 2015 as average net loans increased $867.0 million or 10% for the year of 2016. Average investment securities increased $59.2 million or 5%. In addition, the average yield on earning assets increased 6 basis points from the year of 2015 due to additional loan accretion of $10.1 million on acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the year of 2016 was an increase of 3 basis points in the average cost of funds as compared to the year of 2015 due to higher market interest rates. The net interest margin of 3.62% for the year of 2016 was an increase of 4 basis points from the net interest margin of 3.58% for the year of 2015.

On a linked-quarter basis, net interest income for the fourth quarter of 2016 increased $2.2 million or 2% from the third quarter of 2016. The $2.2 million increase in net interest income occurred because total interest income increased $2.5 million while total interest expense only increased $300 thousand from the third quarter of 2016. Tax-equivalent net interest income for the fourth quarter of 2016 increased $2.2 million or 2% due mainly to an increase in the average yield on earning assets. The yield on average earning assets for the fourth quarter of 2016 increased 6 basis points from the third quarter of 2016 due to additional loan accretion of $3.0 million. Average earning assets were relatively flat for the quarter, increasing $45.2 million or less than 1%. Average net loans were also relatively flat, decreasing $25.9 million or less than 1% while average short-term investments increased $121.0 million or 15% and average investment securities decreased $49.9 million or 3%, respectively. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2016 was an increase of a basis point in the average cost of funds as compared to the third quarter of 2016. The net interest margin of 3.62% for the fourth quarter of 2016 was an increase of 6 basis points from the net interest margin of 3.56% for the third quarter of 2016.

For the quarters ended December 31, 2016 and 2015, the provision for loan losses was $5.8 million and $6.3 million, respectively, while the provision for the year of 2016 was $24.5 million as compared to $22.6 million for the year of 2015. Net charge-offs were $5.7 million and $27.5 million for the fourth quarter and year of 2016, respectively, as compared to $6.1 million and $22.4 million for the same time periods in 2015. Annualized net charge-offs as a percentage of average loans were 0.22% and 0.28% for the fourth quarter and year of 2016, respectively. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2016 decreased $1.2 million while net charge-offs decreased $1.1 million from the third quarter of 2016.

Noninterest income for the fourth quarter of 2016 was $16.7 million, which was a decrease of $1.5 million or 8% from the fourth quarter of 2015. Income from bank-owned insurance policies decreased $911 million due to death benefits recorded during the fourth quarter of 2015. In addition, fees from deposit services decreased $507 thousand mainly due to lower income from overdraft fees. Partially offsetting these decreases was an increase of $317 thousand in mortgage banking income due to increased loan production and sales in the secondary market.

Noninterest income for the year of 2016 was $70.0 million, which was a decrease of $3.6 million or 5% from the year of 2015. The decrease was due to lower fees from deposit services as a result of the Durbin Amendment being effective for United on July 1, 2015. The Durbin Amendment, passed as part of the Dodd-Frank financial reform legislation, limits fees for debit card processing paid by merchants to banking companies with assets in excess of $10 billion. Fees from deposit services for the year of 2016 declined $5.1 million from the year of 2015. Partially offsetting this decrease was an increase of $943 thousand in mortgage banking income due to increased loan production and sales in the secondary market.

On a linked-quarter basis, noninterest income for the fourth quarter of 2016 decreased $2.4 million or 12% from the third quarter of 2016. Income from bank-owned insurance policies decreased $1.7 million due to death benefits recorded during the third quarter. In addition, fees from trust and brokerage services declined $406 thousand due to lower volume.

Noninterest expense for the fourth quarter of 2016 was $62.5 million, an increase of $3.9 million or 7% from the fourth quarter of 2015 due mainly to the Bank of Georgetown merger as most major categories of noninterest expense showed increases. In particular, net occupancy expenses increased $1.0 million and data processing increased $601 thousand. In addition, employee benefits increased $580 thousand due mainly to higher pension costs and other real estate owned (OREO) expense also increased $580 thousand from the fourth quarter of 2015 due to increased losses on sales of OREO properties.

Noninterest expense for the year of 2016 was $248.2 million, an increase of $16.5 million or 7% from the year of 2015 due in large part to the Bank of Georgetown merger. Employee compensation increased $5.2 million which includes $670 thousand of merger severance charges. Otherwise, employee compensation increased due to merit raises and a higher amount of employee incentives. Employee benefits increased $1.9 million mainly due to increased health insurance costs. Net occupancy expenses increased $3.2 million which includes $1.6 million for the termination of leases for closed offices. Other real estate owned (OREO) expense increased $2.2 million due to a decline in the fair value of OREO properties. In addition, other merger-related expenses of $3.9 million were incurred.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2016 was flat, decreasing $269 thousand or less than 1% from the third quarter of 2016. This slight decrease was due primarily to a decrease of $335 thousand in net occupancy expense due to a decline in building rental expense.

For the fourth quarter of 2016, income tax expense was $22.5 million, an increase of $5.6 million from the fourth quarter of 2015 mainly due to higher earnings. For the year of 2016, income tax expense was $75.6 million, an increase of $10.1 million from the year of 2015. This increase was due to higher earnings for the year of 2016 and the release of tax reserves and historical tax credits in the year of 2015. On a linked-quarter basis, income tax expense increased $3.6 million due to slightly higher earnings and a reduction in the current tax expense as a result of an increase in the deferred tax rate for the third quarter of 2016. United’s effective tax rate was approximately 36.5% for the fourth quarter of 2016, 33.5% for the fourth quarter of 2015 and 31.2% for the third quarter of 2016. For the years of 2016 and 2015, United's effective tax rate was 33.9% and 32.2%, respectively.

United’s asset quality continues to be sound. At December 31, 2016, nonperforming loans were $113.3 million, or 1.10% of loans, net of unearned income, down from nonperforming loans of $126.7 million or 1.35% of loans, net of unearned income, at December 31, 2015. As of December 31, 2016, the allowance for loan losses was $72.8 million or 0.70% of loans, net of unearned income, as compared to $75.7 million or 0.81% of loans, net of unearned income, at December 31, 2015. United’s allowance for loan losses as a percentage of non-acquired loans, net of unearned income at December 31, 2016 was 0.90% as compared to 1.00% at December 31, 2015. Total nonperforming assets of $144.8 million, including OREO of $31.5 million at December 31, 2016, represented 1.00% of total assets.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.9% at December 31, 2016 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.2%, 14.2% and 12.2%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

As of December 31, 2016, United had consolidated assets of approximately $14.5 billion with 127 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2016 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, 2016 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, the allowance for loan losses as a percentage of non-acquired loans, tangible equity and tangible book value per share. Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

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

In accordance with accounting rules, United is unable to carry-over an acquired banking company’s previously established allowance for loan losses because acquired loans are recorded at fair value. Therefore, due to this acquisition accounting impact on the allowance for loans losses as well as loans, net of unearned income, management believes that excluding acquired loans in the calculation of the allowance for loan losses as a percentage of loans, net of unearned income reflects the difference in the accounting rules for acquired loans and originated loans as well as provides for improved comparability to prior periods and to other financial institutions without acquired loans.

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

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

Forward-Looking Statements

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

 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
FINANCIAL SUMMARY
(In Thousands Except for Per Share Data)
 
 
      Three Months Ended     Year Ended

December 31
2016

    

December 31
2015

December 31
2016

    

December 31
2015

EARNINGS SUMMARY:        
Interest income $ 125,621 $ 107,240 $ 470,341 $ 423,630
Interest expense   12,368         10,085     45,010         39,506  
Net interest income 113,253 97,155 425,331 384,124
Provision for loan losses 5,819 6,322 24,509 22,574
Noninterest income 16,652 18,125 70,032 73,626
Noninterest expenses   62,508         58,618     248,196         231,687  
Income before income taxes 61,578 50,340 222,658 203,489
Income taxes   22,472         16,864     75,575         65,530  
Net income $ 39,106       $ 33,476   $ 147,083       $ 137,959  
 
PER COMMON SHARE:
Net income:
Basic $ 0.51 $ 0.48 $ 2.00 $ 1.99
Diluted 0.51 0.48 1.99 1.98
Cash dividends $ 0.33 $ 0.33 1.32 1.29
Book value 27.59 24.61
Closing market price $ 46.25 $ 36.99
Common shares outstanding:
Actual at period end, net of treasury shares 81,039,974 69,603,097
Weighted average- basic 76,863,906 69,431,787 73,531,992 69,334,849
Weighted average- diluted 77,303,310 69,737,451 73,893,127 69,625,531
 
FINANCIAL RATIOS:
Return on average assets 1.10 % 1.07 % 1.10 % 1.12 %
Return on average shareholders’ equity 7.50 % 7.68 % 7.67 % 8.10 %
Average equity to average assets 14.62 % 13.97 % 14.34 % 13.88 %
Net interest margin 3.62 % 3.56 % 3.62 % 3.58 %
 

December 31
2016

    

December 31
2015

December 31
2014

    

September 30
2016

PERIOD END BALANCES:
Assets $ 14,505,892 $ 12,577,944 $ 12,328,811 $ 14,344,696
Earning assets 12,939,508 11,243,862 10,931,194 12,789,305
Loans, net of unearned income 10,341,137 9,384,080 9,104,652 10,435,763
Loans held for sale 8,445 10,681 8,680 10,957
Investment securities 1,403,638 1,204,182 1,316,040 1,462,566
Total deposits 10,796,867 9,341,527 9,045,485 10,578,332
Shareholders’ equity 2,235,747 1,712,635 1,656,160 2,028,679
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
 
 
Consolidated Statements of Income
      Three Months Ended
December     December     September     June     March
2016 2015 2016 2016 2016
Interest & Loan Fees Income (GAAP) $ 125,621 $ 107,240 $ 123,137 $ 113,087 $ 108,496
Tax equivalent adjustment   1,559     1,678     1,556     1,513     1,493  
Interest & Fees Income (FTE) (non-GAAP) 127,180 108,918 124,693 114,600 109,989
Interest Expense   12,368     10,085     12,068     10,362     10,212  
Net Interest Income (FTE) (non-GAAP) 114,812 98,833 112,625 104,238 99,777
 
Provision for Loan Losses 5,819 6,322 6,988 7,667 4,035
 
Non-Interest Income:
Fees from trust & brokerage services 4,485 4,525 4,891 4,792 4,869
Fees from deposit services 8,189 8,696 8,306 8,390 7,973
Bankcard fees and merchant discounts 1,461 1,498 1,551 1,365 838
Other charges, commissions, and fees 334 497 500 796 429
Income from bank owned life insurance 881 1,792 2,541 1,192 1,180
Mortgage banking income 951 634 982 789 728
Other non-interest revenue 289 454 249 430 371
Net other-than-temporary impairment losses 0 (13 ) 0 (33 ) 0

Net gains on sales/calls of investment securities

 

62

   

42

   

1

   

246

    4  
Total Non-Interest Income   16,652     18,125     19,021     17,967     16,392  
 
Non-Interest Expense:
Employee compensation 24,158 24,431 24,213 22,631 22,279
Employee benefits 7,585 7,005 7,483 7,294 6,603
Net occupancy 6,584 5,576 6,919 7,773 6,253
Data processing 4,276 3,675 3,857 3,596 3,551
Amortization of intangibles 1,158 855 1,122 919 745
OREO expense 1,190 610 1,342 2,663 649
FDIC expense 2,207 2,114 2,086 2,135 2,120
Other expenses   15,350     14,352     15,755     17,844     15,856  
Total Non-Interest Expense   62,508     58,618     62,777     64,855     58,056  
 
Income Before Income Taxes (FTE) (non-GAAP) 63,137 52,018 61,881 49,683 54,078
 
Tax equivalent adjustment   1,559     1,678     1,556     1,513     1,493  
 
Income Before Income Taxes (GAAP) 61,578 50,340 60,325 48,170 52,585
 
Taxes   22,472     16,864     18,846     16,378     17,879  
 
Net Income $ 39,106   $ 33,476   $ 41,479   $ 31,792   $ 34,706  
 
MEMO: Effective Tax Rate 36.49 % 33.50 % 31.24 % 34.00 % 34.00 %
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
 
 
Consolidated Statements of Income
      Year Ended
December     December     December     December
2016 2015 2014 2013
Interest & Loan Fees Income (GAAP) $ 470,341 $ 423,630 $ 418,542 $ 306,154
Tax equivalent adjustment   6,121     6,486     6,316     5,999  
Interest & Fees Income (FTE) (non-GAAP) 476,462 430,116 424,858 312,153
Interest Expense   45,010     39,506     42,834     36,313  
Net Interest Income (FTE) (non-GAAP) 431,452 390,610 382,024 275,840
 
Provision for Loan Losses 24,509 22,574 21,937 19,267
 
Non-Interest Income:
Fees from trust & brokerage services 19,037 19,085 18,141 16,447
Fees from deposit services 32,858 37,962 42,372 40,245
Bankcard fees and merchant discounts 5,215 4,786 4,207 3,591
Other charges, commissions, and fees 2,059 2,141 2,049 2,247
Income from bank owned life insurance 5,794 5,557 5,300 5,788
Mortgage banking income 3,450 2,507 1,876 2,571
Net gain on the sale of bank premises 0 0 8,976 0
Other non-interest revenue 1,339 1,433 1,153 1,426
Net other-than-temporary impairment losses (33 ) (47 ) (6,478 ) (7,332 )

Net gains on sales/calls of investment securities

 

313

   

202

   

3,366

   

1,523

 
Total Non-Interest Income   70,032     73,626     80,962     66,506  
 
Non-Interest Expense:
Employee compensation 93,281 88,123 90,823 68,074
Employee benefits 28,965 27,086 20,457 22,970
Net occupancy 27,529 24,301 25,796 19,818
Data processing 15,280 14,867 14,455 11,394
Amortization of intangibles 3,944 3,420 4,021 1,969
OREO expense 5,844 3,613 7,740 6,441
FDIC expense 8,548 8,367 7,565 6,188
Prepayment penalty on FHLB advance 0 0 1,971 0
Other expenses   64,805     61,910     67,019     55,182  
Total Non-Interest Expense   248,196     231,687     239,847     192,036  
 
Income Before Income Taxes (FTE) (non-GAAP) 228,779 209,975 201,202 131,043
 
Tax equivalent adjustment   6,121     6,486     6,316     5,999  
 
Income Before Income Taxes (GAAP) 222,658 203,489 194,886 125,044
 
Taxes   75,575     65,530     64,998     39,416  
 
Net Income $ 147,083   $ 137,959   $ 129,888   $ 85,628  
 
MEMO: Effective Tax Rate 33.94 % 32.20 % 33.35 % 31.52 %
 
 
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 31 December 31
2016 2015 December 31 December 31 December 31
Q-T-D Average Q-T-D Average 2016 2015 2014
 
Cash & Cash Equivalents $ 1,094,122 $ 770,264 $ 1,434,527 $ 857,335 $ 753,064
 
Securities Available for Sale 1,233,147 1,090,546 1,259,214 1,066,334 1,180,386
Securities Held to Maturity 33,414 39,019 33,258 39,099 39,310
Other Investment Securities   115,944     91,488     111,166     98,749     96,344  
Total Securities   1,382,505     1,221,053     1,403,638     1,204,182     1,316,040  
Total Cash and Securities   2,476,627     1,991,317     2,838,165     2,061,517     2,069,104  
 
Loans Held for Sale 9,480 8,835 8,445 10,681 8,680
 
Commercial Loans 7,847,555 6,972,600 7,783,478 7,096,595 6,923,745
Mortgage Loans 1,945,245 1,839,467 1,938,707 1,843,518 1,806,766
Consumer Loans   619,183     461,609     634,534     458,839     388,981  
 
Gross Loans 10,411,983 9,273,676 10,356,719 9,398,952 9,119,492
 
Unearned Income   (15,712 )   (14,750 )   (15,582 )   (14,872 )   (14,840 )
 
Loans, Net of Unearned Income 10,396,271 9,258,926 10,341,137 9,384,080 9,104,652
 
Allowance for Loan Losses (72,666 ) (75,525 ) (72,771 ) (75,726 ) (75,529 )
 
Goodwill 867,313 710,252 863,767 710,252 709,794
Other Intangibles   23,507     18,278     22,954     17,840     21,260  
Total Intangibles 890,820 728,530 886,721 728,092 731,054
 
Real Estate Owned 32,314 33,028 31,510 32,228 38,778
Other Assets   459,243     430,794     475,685     437,072     452,072  
Total Assets $ 14,192,089   $ 12,375,905   $ 14,508,892   $ 12,577,944   $ 12,328,811  
 
MEMO: Earning Assets $ 12,646,642   $ 11,033,647   $ 12,939,508   $ 11,243,862   $ 10,931,194  
 
Interest-bearing Deposits $ 7,302,256 $ 6,675,701 $ 7,625,026 $ 6,641,569 $ 6,453,866
Noninterest-bearing Deposits   3,114,684     2,665,676     3,171,841     2,699,958     2,591,619  
Total Deposits 10,416,940 9,341,377 10,796,867 9,341,527 9,045,485
 
Short-term Borrowings 449,163 304,544 209,551 423,028 435,652
Long-term Borrowings   1,172,081     941,841     1,172,026     1,015,249     1,105,314  
Total Borrowings 1,621,244 1,246,385 1,381,577 1,438,277 1,540,966
 
Other Liabilities   79,094     59,629     94,701     85,505     86,200  
Total Liabilities   12,117,278     10,647,391     12,273,145     10,865,309     10,672,651  
 
Preferred Equity --- --- --- --- ---
Common Equity   2,074,811     1,728,514     2,235,747     1,712,635     1,656,160  
Total Shareholders' Equity   2,074,811     1,728,514     2,235,747     1,712,635     1,656,160  
 
Total Liabilities & Equity $ 14,192,089   $ 12,375,905   $ 14,508,892   $ 12,577,944   $ 12,328,811  
 
MEMO: Interest-bearing Liabilities $ 8,923,500   $ 7,922,086   $ 9,006,603   $ 8,079,846   $ 7,994,832  
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
 
 
      Three Months Ended
December     December     September     June     March
Quarterly Share Data: 2016 2015 2016 2016 2016
 
Earnings Per Share:
Basic $ 0.51 $ 0.48 $ 0.54 $ 0.44 $ 0.50
Diluted $ 0.51 $ 0.48 $ 0.54 $ 0.44 $ 0.50
 
Common Dividend Declared Per Share $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 0.33
 
High Common Stock Price $ 49.35 $ 43.13 $ 39.71 $ 40.18 $ 37.85
Low Common Stock Price $ 36.52 $ 35.78 $ 35.91 $ 34.50 $ 32.22
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 76,863,906 69,431,787 76,218,573 71,483,703 69,497,489
Diluted 77,303,310 69,737,451 76,647,773 71,809,021 69,714,121
 
Tax Applicable to Security Sales/Calls $ 23 $ 15 $ 0 $ 90 $ 1
 
Common Dividends $ 25,315 $ 22,967 $ 25,220 $ 25,160 $ 23,001
 
Dividend Payout Ratio 64.73 % 68.61 % 60.80 % 79.14 % 66.27 %
 
Year Ended
December December December December
YTD Share Data: 2016 2015 2014 2013
 
Earnings Per Share:
Basic $ 2.00 $ 1.99 $ 1.93 $ 1.70
Diluted $ 1.99 $ 1.98 $ 1.92 $ 1.70
 
Common Dividend Declared Per Share $ 1.32 $ 1.29 $ 1.28 $ 1.25
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 73,531,992 69,334,849 67,404,254 50,353,452
Diluted 73,893,127 69,625,531 67,648,673 50,426,078
 
Tax Applicable to Security Sales/Calls $ 114 $ 73 $ 1,178 $ 533
 
Common Dividends $ 98,696 $ 89,667 $ 88,522 $ 62,982
 
Dividend Payout Ratio 67.10 % 65.00 % 68.15 % 73.55 %
 
EOP Employees (full-time equivalent) 1,701 1,701 1,703 1,528
 
Three Months Ended
December December September June March
EOP Share Data: 2016 2015 2016 2016 2016
Book Value Per Share $ 27.59 $ 24.61 $ 26.54 $ 26.39 $ 24.89
Tangible Book Value Per Share (1) $ 16.65 $ 14.15 $ 14.88 $ 14.67 $ 14.46
 
52-week High Common Stock Price $ 49.35 $ 43.43 $ 43.13 $ 43.43 $ 43.43
Date 12/12/16 07/23/15 11/09/15 07/23/15 07/23/15
52-week Low Common Stock Price $ 32.22 $ 33.25 $ 32.22 $ 32.22 $ 32.22
Date 02/11/16 01/30/15 02/11/16 02/11/16 02/11/16
 
EOP Shares Outstanding (Net of Treasury Stock): 81,039,974 69,603,097 76,439,173 76,296,146 69,706,341
 

Note:

(1) Tangible Book Value Per Share:

Total Shareholders' Equity (GAAP)

$ 2,235,747 $ 1,712,635 $ 2,028,679 $ 2,013,140 $ 1,735,037
Less: Total Intangibles   (886,721 )   (728,092 )   (891,423 )   (893,759 )   (727,347 )
Tangible Equity (non-GAAP) $ 1,349,026 $ 984,543 $ 1,137,256 $ 1,119,381 $ 1,007,690
÷ EOP Shares Outstanding (Net of Treasury Stock) 81,039,974 69,603,097 76,439,173 76,296,146 69,706,341
Tangible Book Value Per Share (non-GAAP) $ 16.65 $ 14.15 $ 14.88 $ 14.67 $ 14.46
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
 
 
      Three Months Ended
December     December     September     June     March
2016 2015 2016 2016 2016
Selected Yields and Net Interest Margin:
Net Loans 4.50 % 4.31 % 4.35 % 4.34 % 4.34 %
Investment Securities 2.68 % 2.84 % 2.87 % 3.03 % 3.01 %
Money Market Investments/FFS 0.48 % 0.32 % 0.54 % 0.55 % 0.48 %
Average Earning Assets Yield 4.00 % 3.92 % 3.94 % 4.04 % 4.01 %
Interest-bearing Deposits 0.43 % 0.43 % 0.42 % 0.41 % 0.42 %
Short-term Borrowings 0.40 % 0.24 % 0.42 % 0.38 % 0.31 %
Long-term Borrowings 1.38 % 1.14 % 1.29 % 1.21 % 1.22 %
Average Liability Costs 0.55 % 0.51 % 0.54 % 0.51 % 0.52 %
Net Interest Spread 3.45 % 3.41 % 3.40 % 3.53 % 3.49 %
Net Interest Margin 3.62 % 3.56 % 3.56 % 3.67 % 3.64 %
 
Selected Financial Ratios:
Return on Average Common Equity 7.50 % 7.68 % 8.10 % 6.99 % 8.06 %
Return on Average Assets 1.10 % 1.07 % 1.17 % 1.00 % 1.13 %
Efficiency Ratio 48.12 % 50.85 % 48.26 % 53.74 % 50.63 %
 
 
Year Ended
December December December December
2016 2015 2014 2013
Selected Yields and Net Interest Margin:
Net Loans 4.38 % 4.33 % 4.49 % 4.49 %
Investment Securities 2.89 % 2.87 % 2.81 % 2.65 %
Money Market Investments/FFS 0.51 % 0.27 % 0.25 % 0.26 %
Average Earning Assets Yield 4.00 % 3.94 % 4.12 % 4.16 %
Interest-bearing Deposits 0.42 % 0.42 % 0.45 % 0.55 %
Short-term Borrowings 0.39 % 0.26 % 0.22 % 0.25 %
Long-term Borrowings 1.28 % 1.08 % 1.42 % 2.32 %
Average Liability Costs 0.53 % 0.50 % 0.56 % 0.65 %
Net Interest Spread 3.47 % 3.44 % 3.56 % 3.51 %
Net Interest Margin 3.62 % 3.58 % 3.71 % 3.68 %
 
Selected Financial Ratios:
Return on Average Common Equity 7.67 % 8.10 % 8.13 % 8.43 %
Return on Average Assets 1.10 % 1.12 % 1.11 % 1.02 %
Loan / Deposit Ratio 95.78 % 100.46 % 100.65 % 101.25 %
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Washington, D.C. and Charleston, WV
Stock Symbol: UBSI
(In Thousands Except for Per Share Data)
 
 
      Year Ended
December     December     December     December
2016 2015 2014 2013
Selected Financial Ratios (continued):
Allowance for Loan Losses/ Loans, Net of Unearned Income 0.70 % 0.81 % 0.83 % 1.11 %
Allowance for Loan Losses/ Non-acquired Loans, Net of Unearned Income (1) 0.90 % 1.00 % 1.09 % 1.23 %
Allowance for Credit Losses (2)/ Loans, Net of Unearned Income 0.71 % 0.82 % 0.85 % 1.14 %
Nonaccrual Loans / Loans, Net of Unearned Income 0.81 % 0.97 % 0.82 % 0.92 %
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.08 % 0.12 % 0.13 % 0.16 %
Non-performing Loans/ Loans, Net of Unearned Income 1.10 % 1.35 % 1.20 % 1.21 %
Non-performing Assets/ Total Assets 1.00 % 1.26 % 1.20 % 1.37 %
Primary Capital Ratio 15.84 % 14.14 % 13.97 % 12.69 %
Shareholders' Equity Ratio 15.41 % 13.62 % 13.43 % 11.93 %
Price / Book Ratio 1.68x 1.50x 1.57x 1.52x
Price / Earnings Ratio 23.24x 18.67x 19.50x 18.52x
Efficiency Ratio 50.10 % 50.61 % 52.52 % 57.09 %
 
 

Notes:

(1) Allowance for Loan Losses (GAAP) $ 72,771 $ 75,726 $ 75,529 $ 74,198
Loans, net of unearned income 10,341,137 9,384,080 9,104,652 6,704,583
Less: Acquired Loans (non-GAAP)   (2,275,601 )   (1,791,023 )   (2,196,036 )   (648,796 )
Non-Acquired Loans, net of unearned income (non-GAAP) $ 8,065,536 $ 7,593,057 $ 6,908,616 $ 6,055,787
Allowance for Loan Losses/Non-acquired Loans, net of unearned income (non-GAAP) 0.90 % 1.00 % 1.09 % 1.23 %
(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)
 
                     
December December September June March
Asset Quality Data: 2016 2015 2016 2016 2016
 
EOP Non-Accrual Loans $ 83,525 $ 91,189 $ 77,040 $ 82,509 $ 92,901
EOP 90-Day Past Due Loans 8,586 11,628 11,387 5,594 7,891
EOP Restructured Loans (1)   21,152     23,890     21,308     24,944     24,156  
Total EOP Non-performing Loans $ 113,263 $ 126,707 $ 109,735 $ 113,047 $ 124,948
 
EOP Other Real Estate & Assets Owned   31,510     32,228     32,202     34,894     28,981  
Total EOP Non-performing Assets $ 144,773   $ 158,935   $ 141,937   $ 147,941   $ 153,929  
 
Three Months Ended Year Ended
December December December December December
Allowance for Loan Losses: 2016 2015 2016 2015 2014
Beginning Balance $ 72,657 $ 75,480 $ 75,726 $ 75,529 $ 74,198
Provision for Loan Losses   5,819     6,322     24,509     22,574     21,937  
78,476 81,802 100,235 98,103 96,135
Gross Charge-offs (8,655 ) (7,357 ) (36,180 ) (25,499 ) (25,241 )
Recoveries   2,950     1,281     8,716     3,122     4,635  
Net Charge-offs   (5,705 )   (6,076 )   (27,464 )   (22,377 )   (20,606 )
Ending Balance $ 72,771 $ 75,726 $ 72,771 $ 75,726 $ 75,529
Reserve for lending-related commitments   1,044     936     1,044     936     1,518  
Allowance for Credit Losses (2) $ 73,815   $ 76,662   $ 73,815   $ 76,662   $ 77,047  
 

Notes:

(1) Restructured loans with an aggregate balance of $11,106, $10,697, $10,682, $11,450 and $11,949 at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.
(2) Includes allowance for loan losses and reserve for lending-related commitments.