United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and year of 2018. Earnings for the fourth quarter of 2018 were $64.0 million or $0.62 per diluted share as compared to earnings of $18.0 million or $0.17 per diluted share for the fourth quarter of 2017. Earnings for the year of 2018 were a record $256.3 million or $2.45 per diluted share as compared to earnings of $150.6 million or $1.54 per diluted share for the year of 2017.

Fourth quarter of 2018 results produced an annualized return on average assets of 1.33% and an annualized return on average equity of 7.77%, respectively. For the year of 2018, United’s return on average assets was 1.36% while the return on average equity was 7.84%. United’s annualized returns on average assets and average equity were 0.38% and 2.17%, respectively, for the fourth quarter of 2017 while the returns on average assets and average equity were 0.85% and 5.09%, respectively, for the year of 2017.

“The year of 2018 was a banner year for United Bankshares in many ways,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We increased earnings before income taxes to a record $327 million. Our employee community volunteer program was recognized by the American Bankers Association as one of the strongest in the nation. We increased dividends to our shareholders for the 45th consecutive year. This is a record only one other major banking company in the USA has been able to achieve.”

The results for the fourth quarter of 2017 included additional income tax expense of $37.7 million or $0.36 per diluted share related to the estimated impact of the enactment of the Tax Cuts and Jobs Act (the Tax Act). The results for the year of 2017 were impacted by $0.39 per diluted share for the additional income tax expense of $37.7 million related to the Tax Act.

On April 21, 2017, United completed its acquisition of Cardinal Financial Corporation (Cardinal) of Tysons Corner, Virginia. The results of operations of Cardinal are included in the consolidated results of operations from the date of acquisition. As a result of the Cardinal acquisition, the year of 2018 was impacted by increased levels of average balances, income, and expense as compared to the year of 2017. Also, United consolidated its banking subsidiaries during the fourth quarter of 2017. The fourth quarter and year of 2017 included $1.8 million and $26.8 million, respectively, of merger-related expenses from the Cardinal acquisition and consolidation of subsidiaries.

Net interest income for the fourth quarter of 2018 was $146.7 million, which was a decrease of $8.1 million or 5% from the fourth quarter of 2017. The $8.1 million decrease in net interest income occurred because total interest income increased $11.0 million while total interest expense increased $19.1 million from the fourth quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2018 was $147.8 million, a decrease of $9.4 million or 6% from the fourth quarter of 2017 due mainly to an increase of 66 basis points in the average cost of funds as compared to the fourth quarter of 2017 due to higher market interest rates. In addition, loan accretion on acquired loans was $8.8 million and $16.8 million for the fourth quarter of 2018 and 2017, respectively, decreasing $8.0 million or 48%. Partially offsetting these decreases to tax-equivalent net interest income for the fourth quarter of 2018 was an increase of 17 basis points in the average yield on earning assets as compared to the fourth quarter of 2017 due to higher market interest rates. In addition, average earning assets for the fourth quarter of 2018 increased $228.8 million or 1% from the fourth quarter of 2017 due mainly to an increase of $522.5 million or 27% in average investment securities. In addition, average net loans for the fourth quarter of 2018 increased $244.3 million or 2% from the fourth quarter of 2017. Partially offsetting these increases was a decrease in average short-term investments of $538.0 million or 39%. The net interest margin of 3.50% for the fourth quarter of 2018 was a decrease of 27 basis points from the net interest margin of 3.77% for the fourth quarter of 2017.

Net interest income for the year of 2018 was $588.6 million, which was an increase of $39.6 million or 7% from the year of 2017. The $39.6 million increase in net interest income occurred because total interest income increased $93.9 million while total interest expense only increased $54.3 million from the year of 2017. Tax-equivalent net interest income for the year of 2018 was $593.0 million, an increase of $35.6 million or 6% from the year of 2017. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Average earning assets increased $1.0 billion or 6% from the year of 2017 as average net loans increased $874.7 million or 7% for the year of 2018. Average investment securities increased $590.2 million or 34% while short-term investments decreased $461.8 million or 35%. The year of 2018 average yield on earning assets increased 29 basis points from the year of 2017 due to higher market interest rates and additional loan accretion of $2.0 million on acquired loans. Loan accretion was $43.2 million and $41.2 million for the year of 2018 and 2017, respectively. Partially offsetting the increases to tax-equivalent net interest income for the year of 2018 was an increase of 46 basis points in the average cost of funds as compared to the year of 2017 due to higher market interest rates. The net interest margin of 3.58% for the year of 2018 was the same as the net interest margin for the year of 2017.

On a linked-quarter basis, net interest income for the fourth quarter of 2018 decreased $2.0 million or 1% from the third quarter of 2018. The $2.0 million decrease in net interest income occurred because total interest income increased $2.5 million while total interest expense increased $4.5 million from the third quarter of 2018. United’s tax-equivalent net interest income for the fourth quarter of 2018 decreased $2.1 million or 1% due to an increase of 16 basis points in the average cost of funds as a result of higher market interest rates. In addition, loan accretion on acquired loans decreased $2.7 million. Partially offsetting these decreases was an increase of 4 basis points in the average yield on earning assets. Average earning assets for the fourth quarter of 2018 were relatively flat from the third quarter of 2018, increasing $45.3 million or less than 1%. Specifically, average investment securities increased $200.8 million or 9% while average short-term investments decreased $78.6 million or 9%. Average net loans were relatively flat for the quarter, decreasing $76.9 million or less than 1%. The net interest margin of 3.50% for the fourth quarter of 2018 decreased 6 basis points from the net interest margin of 3.56% for the third quarter of 2018.

For the quarters ended December 31, 2018 and 2017, the provision for loan losses was $5.8 million and $7.0 million, respectively, while the provision for the year of 2018 was $22.0 million as compared to $28.4 million for the year of 2017. Net charge-offs were $6.1 million and $21.9 million for the fourth quarter and year of 2018, respectively, as compared to $5.3 million and $24.6 million for the same time periods in 2017. Annualized net charge-offs as a percentage of average loans were 0.18% and 0.17% for the fourth quarter and year of 2018, respectively. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2018 increased $1.0 million while net charge-offs increased $1.1 million from the third quarter of 2018.

Noninterest income for the fourth quarter of 2018 was $29.8 million, which was a decrease of $2.9 million or 9% from the fourth quarter of 2017. The decrease was due mainly to a decrease of $3.7 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market by United’s mortgage banking subsidiary, George Mason. However, George Mason did originate approximately $127.5 million of portfolio mortgage loan products for United Bank during the fourth quarter of 2018. In addition, United recognized other-than-temporary impairment of $1.5 million on investment securities that the Company intends to sell. Partially offsetting these decreases to noninterest income was a net gain of $2.8 million on the sale of bank premises.

Noninterest income for the year of 2018 was $128.7 million, which was also a decrease of $2.9 million from the year of 2017 due mainly to a decline in net gains on investment securities’ activity of $8.2 million. United recognized a net loss of $2.6 million on investment securities’ activity in 2018 as compared to a net gain of $5.6 million in 2017. In addition, income from mortgage banking activities for the year of 2018 decreased $798 thousand from the year of 2017. This decrease was mainly due to a decline in the production and sales of mortgage loans in the secondary market by George Mason. Partially offsetting these decreases were increases of $1.1 million in fees from trust services due to an increase in the value of managed assets and $1.6 million in fees from brokerage services due to increased volume as well as the previously mentioned net gain of $2.8 million on the sale of bank premises.

On a linked-quarter basis, noninterest income for the fourth quarter of 2018 decreased $1.9 million or 6% from the third quarter of 2018. The decrease was due mainly to an increase in net losses on investment securities’ activity of $1.8 million and a decline of $1.7 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market due mainly to a typical seasonal slowdown. In addition, income from bankcard services during the fourth quarter of 2018 declined $765 thousand as compared to the third quarter of 2018. Partially offsetting these decreases to noninterest income was the net gain of $2.8 million on the sale of bank premises.

Noninterest expense for the fourth quarter of 2018 was $91.0 million, a decrease of $4.8 million or 5% from the fourth quarter of 2017. In particular, employee compensation decreased $2.3 million due mainly to a decrease in commissions and incentives expense related to the decline in production and sales of mortgage loans at George Mason, employees benefits expense decreased $672 thousand due mainly to a decline in health insurance costs, and within other expense, merger expenses decreased $1.8 million and business franchise taxes declined $1.5 million. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $1.3 million as United Bank is now considered a large institution and subject to increased assessment rates. Also included within other expense for the fourth quarter of 2018 was a charge of $832 thousand related to New Markets tax credits. A corresponding tax benefit of $832 thousand was recognized in income taxes associated with these tax credits.

Noninterest expense for the year of 2018 was $368.2 million, which was relatively flat from the year of 2017, increasing $770 thousand or less than 1%. In particular, FDIC insurance expense increased $4.4 million due to United Bank now being considered a large institution as previously mentioned, employee benefits increased $1.2 million due mainly to additional employees from the Cardinal acquisition, equipment expense increased $3.3 million due mainly to an increase in building maintenance, and data processing expense increased $2.8 million due to additional processing as a result of the Cardinal acquisition. Also, included within other expense for the year of 2018 was the previously mentioned charge of $832 thousand related to New Markets tax credits and an increase of $1.6 million in legal and consulting fees. Mostly offsetting these increases was a decrease of $2.6 million in net occupancy expense due to the expense for the termination of leases and the reduction in value of leasehold improvements for closed offices in the Cardinal acquisition being included in the year of 2017, a decrease of $2.6 million in other real estate owned (OREO) expense due to fewer declines in the fair value of OREO properties, a decrease of $1.9 million in employee compensation due mainly to a decrease in commissions and incentives expense for George Mason, and within other expense, a decrease of $7.6 million in merger-related expenses.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2018 decreased $2.3 million or 2% from the third quarter of 2018. Employee compensation decreased $2.1 million due mainly to a decrease in commissions and incentives expense for George Mason. In addition, net occupancy expense decreased $587 thousand due a decline in office rental expense. Partially offsetting these decreases in noninterest expense was the charge of $832 thousand related to New Markets tax credits.

For the fourth quarter and year of 2018, income tax expense was $15.8 million and $70.8 million, respectively, as compared to $66.9 million and $134.2 million, respectively, in the fourth quarter and year of 2017. The amounts for 2017 included additional income tax expense of $37.7 million related to the estimated impact of the Tax Act. The fourth quarter and year of 2018 include a benefit of $832 thousand related to the New Markets tax credits. On a linked-quarter basis, income tax expense for the fourth quarter of 2018 decreased $2.2 million from the third quarter of 2018 due to a combination of the tax benefit from the New Markets tax credits, lower earnings and a lower effective tax rate. United’s effective tax rate was 19.8% for the fourth quarter of 2018, 21.8% for the third quarter of 2018 and 78.8% for the fourth quarter of 2017. For the year of 2018 and 2017, United's effective tax rate was 21.7% and 47.1%, respectively.

United’s asset quality continues to be sound and improved year-over-year. At December 31, 2018, nonperforming loans were $142.8 million, or 1.06% of loans, net of unearned income down from nonperforming loans of $168.7 million, or 1.30% of loans, net of unearned income, at December 31, 2017. As of December 31, 2018, the allowance for loan losses was $76.7 million or 0.57% of loans, net of unearned income, as compared to $76.6 million or 0.59% of loans, net of unearned income at December 31, 2017. Total nonperforming assets of $159.7 million, including OREO of $16.9 million at December 31, 2018, represented 0.83% of total assets, down from nonperforming assets of $193.1 million or 1.01% of total assets at December 31, 2017.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.4% at December 31, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.2%, 12.2% and 10.1%, 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, 2018, United had consolidated assets of approximately $19.3 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank which comprises 139 full-service banking offices and 21 George Mason Mortgage, LLC locations, is located throughout Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania and Washington, D.C. 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 December 31, 2018 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, 2018 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

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

 
 
 
 
 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

         
Three Months Ended Year Ended
December 31

2018

     December 31

2017

December 31

2018

     December 31

2017

EARNINGS SUMMARY:
Interest income $ 187,500 $ 176,518 $ 717,715 $ 623,806
Interest expense   40,795     21,662     129,070     74,809  
Net interest income 146,705 154,856 588,645 548,997
Provision for loan losses 5,823 6,977 22,013 28,406
Noninterest income 29,827 32,764 128,712 131,645
Noninterest expenses   91,002     95,778     368,179     367,409  
Income before income taxes 79,707 84,865 327,165 284,827
Income taxes   15,757     66,890     70,823     134,246  
Net income $ 63,950   $ 17,975   $ 256,342   $ 150,581  
 
PER COMMON SHARE:
Net income:
Basic $ 0.62 $ 0.17 $ 2.46 $ 1.54
Diluted 0.62 0.17 2.45 1.54
Cash dividends $ 0.34 $ 0.34 1.36 1.33
Book value 31.78 30.85
Closing market price $ 31.11 $ 34.75
Common shares outstanding:
Actual at period end, net of treasury shares 102,323,488 105,040,648
Weighted average- basic 102,929,563 104,808,260 104,015,976 97,502,633
Weighted average- diluted 103,164,267 105,125,326 104,298,825 97,890,078
 
FINANCIAL RATIOS:
Return on average assets 1.33 % 0.38 % 1.36 % 0.85 %
Return on average shareholders’ equity 7.77 % 2.17 % 7.84 % 5.09 %
Average equity to average assets 17.10 % 17.40 % 17.34 % 16.80 %
Net interest margin 3.50 % 3.77 % 3.58 % 3.58 %
 
December 31

2018

December 31

2017

December 31

2016

September 30

2018

PERIOD END BALANCES:
Assets $ 19,250,498 $ 19,058,959 $ 14,508,892 $ 19,187,643
Earning assets 16,971,602 16,741,819 12,939,508 16,872,384
Loans, net of unearned income 13,422,222 13,011,421 10,341,137 13,276,740
Loans held for sale 249,846 265,955 8,445 234,196
Investment securities 2,543,727 2,071,645 1,403,638 2,375,512
Total deposits 13,994,749 13,830,591 10,796,867 14,091,172
Shareholders’ equity 3,251,624 3,240,530 2,235,747 3,251,128
 
 
 
 
 
 

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
2018 2017 2018 2018 2018
Interest & Loan Fees Income (GAAP) $ 187,500 $ 176,518 $ 185,030 $ 178,000 $ 167,185
Tax equivalent adjustment   1,060     2,261     1,049     1,115     1,104  
Interest & Fees Income (FTE) (non-GAAP) 188,560 178,779 186,079 179,115 168,289
Interest Expense   40,795     21,662     36,255     28,878     23,142  
Net Interest Income (FTE) (non-GAAP) 147,765 157,117 149,824 150,237 145,147
 
Provision for Loan Losses 5,823 6,977 4,808 6,204 5,178
 
Non-Interest Income:
Fees from trust services 3,385 2,936 3,350 3,104 3,091
Fees from brokerage services 2,383 1,912 2,787 1,953 2,224
Fees from deposit services 8,650 8,644 8,673 8,420 8,230
Bankcard fees and merchant discounts 784 1,363 1,549 1,479 1,356
Other charges, commissions, and fees 588 524 532 599 509
Income from bank owned life insurance 1,269 1,232 1,251 1,271 1,254
Mortgage banking income 11,570 15,310 13,277 18,692 14,570
Net gain on the sale of bank premises 2,763 0 0 0 0
Net (losses) gains on investment securities (1,926 ) 430 (152 ) (55 ) (485 )
Other income   361     413     419     544     443  
Total Non-Interest Income   29,827     32,764     31,686     36,007     31,192  
 
Non-Interest Expense:
Employee compensation 39,200 41,448 41,312 43,120 40,836
Employee benefits 8,658 9,330 8,645 9,298 9,571
Net occupancy 8,686 9,006 9,273 9,076 9,427
Data processing 6,065 6,048 6,068 5,817 5,850
Amortization of intangibles 2,010 2,391 2,009 2,010 2,010
OREO expense 1,021 1,352 921 556 946
Equipment expense 3,518 3,035 3,892 3,279 3,157
FDIC expense 3,244 1,989 3,530 2,842 1,848
Other expense   18,600     21,179     17,665     17,412     16,807  
Total Non-Interest Expense   91,002     95,778     93,315     93,410     90,452  
 
Income Before Income Taxes (FTE) (non-GAAP) 80,767 87,126 83,387 86,630 80,709
 
Tax equivalent adjustment   1,060     2,261     1,049     1,115     1,104  
 
Income Before Income Taxes (GAAP) 79,707 84,865 82,338 85,515 79,605
 
Taxes   15,757     66,890     17,926     19,241     17,899  
 
Net Income $ 63,950   $ 17,975   $ 64,412   $ 66,274   $ 61,706  
 
MEMO: Effective Tax Rate 19.77 % 78.82 % 21.77 % 22.50 % 22.48 %
 
 
 
 
 
 
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
2018 2017 2016 2015
Interest & Loan Fees Income (GAAP) $ 717,715 $ 623,806 $ 470,341 $ 423,630
Tax equivalent adjustment   4,328     8,429     6,121     6,486  
Interest & Fees Income (FTE) (non-GAAP) 722,043 632,235 476,462 430,116
Interest Expense   129,070     74,809     45,010     39,506  
Net Interest Income (FTE) (non-GAAP) 592,973 557,426 431,452 390,610
 
Provision for Loan Losses 22,013 28,406 24,509 22,574
 
Non-Interest Income:
Fees from trust services 12,930 11,801 12,025 12,536
Fees from brokerage services 9,347 7,730 7,012 6,549
Fees from deposit services 33,973 33,622 32,858 37,962
Bankcard fees and merchant discounts 5,168 4,795 5,215 4,786
Other charges, commissions, and fees 2,228 2,057 2,059 2,141
Income from bank owned life insurance 5,045 5,110 5,794 5,557
Mortgage banking income 58,109 58,907 3,450 2,507
Net gain on the sale of bank premises 2,763 0 0 0
Net (losses) gains on investment securities (2,618 ) 5,584 280 155
Other income   1,767     2,039     1,339     1,433  
Total Non-Interest Income   128,712     131,645     70,032     73,626  
 
Non-Interest Expense:
Employee compensation 164,468 166,393 95,655 90,910
Employee benefits 36,172 34,997 26,591 24,299
Net occupancy 36,462 39,067 27,529 24,301
Data processing 23,800 21,019 15,280 14,867
Amortization of intangibles 8,039 7,772 3,944 3,420
OREO expense 3,444 6,003 5,844 3,613
Equipment expense 13,846 10,528 8,622 9,034
FDIC expense 11,464 7,051 8,548 8,367
Other expense   70,484     74,579     56,183     52,876  
Total Non-Interest Expense   368,179     367,409     248,196     231,687  
 
Income Before Income Taxes (FTE) (non-GAAP) 331,493 293,256 228,779 209,975
 
Tax equivalent adjustment   4,328     8,429     6,121     6,486  
 
Income Before Income Taxes (GAAP) 327,165 284,827 222,658 203,489
 
Taxes   70,823     134,246     75,575     65,530  
 
Net Income $ 256,342   $ 150,581   $ 147,083   $ 137,959  
 
MEMO: Effective Tax Rate 21.65 % 47.13 % 33.94 % 32.20 %
 
 
 
 
 
 
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
2018 2017 December 31 December 31 December 31
Q-T-D Average Q-T-D Average 2018 2017 2016
 
Cash & Cash Equivalents $ 1,025,695 $ 1,562,187 $ 1,020,396 $ 1,666,167 $ 1,434,527
 
Securities Available for Sale 2,287,480 1,785,892 2,337,039 1,888,756 1,259,214
Securities Held to Maturity 20,017 20,040 19,999 20,428 33,258
Equity Securities 9,880 0 9,734 0 0
Other Investment Securities   167,953     156,873     176,955     162,461     111,166  
Total Securities   2,485,330     1,962,805     2,543,727     2,071,645     1,403,638  
Total Cash and Securities   3,511,025     3,524,992     3,564,123     3,737,812     2,838,165  
 
Loans Held for Sale 226,028 263,605 249,846 265,955 8,445
 
Commercial Loans 9,433,610 9,845,362 9,447,420 9,822,027 7,783,478
Mortgage Loans 2,906,314 2,451,170 2,979,787 2,443,780 1,938,707
Consumer Loans   994,233     760,372     1,002,325     761,530     634,534  
 
Gross Loans 13,334,157 13,056,904 13,429,532 13,027,337 10,356,719
 
Unearned Income   (9,290 )   (15,852 )   (7,310 )   (15,916 )   (15,582 )
 
Loans, Net of Unearned Income 13,324,867 13,041,052 13,422,222 13,011,421 10,341,137
 
Allowance for Loan Losses (76,933 ) (75,007 ) (76,703 ) (76,627 ) (72,771 )
 
Goodwill 1,478,014 1,486,810 1,478,014 1,478,380 863,767
Other Intangibles   37,989     46,883     36,947     44,986     22,954  
Total Intangibles 1,516,003 1,533,693 1,514,961 1,523,366 886,721
 
Real Estate Owned 18,428 25,798 16,865 24,348 31,510
Other Assets   560,230     579,741     559,184     572,684     475,685  
Total Assets $ 19,079,648   $ 18,893,874   $ 19,250,498   $ 19,058,959   $ 14,508,892  
 
MEMO: Earning Assets $ 16,792,108   $ 16,563,279   $ 16,971,602   $ 16,741,819   $ 12,939,508  
 
Interest-bearing Deposits $ 9,615,474 $ 9,518,792 $ 9,577,934 $ 9,535,904 $ 7,625,026
Noninterest-bearing Deposits   4,418,443     4,279,825     4,416,815     4,294,687     3,171,841  
Total Deposits 14,033,917 13,798,617 13,994,749 13,830,591 10,796,867
 
Short-term Borrowings 193,971 344,164 351,327 477,587 209,551
Long-term Borrowings   1,481,732     1,364,091     1,499,103     1,363,977     1,172,026  
Total Borrowings 1,675,703 1,708,255 1,850,430 1,841,564 1,381,577
 
Other Liabilities   106,671     99,310     153,695     146,274     94,701  
Total Liabilities   15,816,291     15,606,182     15,998,874     15,818,429     12,273,145  
 
Preferred Equity --- --- --- --- ---
Common Equity   3,263,357     3,287,692     3,251,624     3,240,530     2,235,747  
Total Shareholders' Equity   3,263,357     3,287,692     3,251,624     3,240,530     2,235,747  
 
Total Liabilities & Equity $ 19,079,648   $ 18,893,874   $ 19,250,498   $ 19,058,959   $ 14,508,892  
 
MEMO: Interest-bearing Liabilities $ 11,291,177   $ 11,227,047   $ 11,428,364   $ 11,377,468   $ 9,006,603  
 
 
 
 
 
 
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: 2018 2017 2018 2018 2018
 
Earnings Per Share:
Basic $ 0.62 $ 0.17 $ 0.62 $ 0.63 $ 0.59
Diluted $ 0.62 $ 0.17 $ 0.62 $ 0.63 $ 0.59
 
Common Dividend Declared Per Share $ 0.34 $ 0.34 $ 0.34 $ 0.34 $ 0.34
 
High Common Stock Price $ 36.84 $ 38.45 $ 39.95 $ 38.80 $ 38.55
Low Common Stock Price $ 29.13 $ 33.60 $ 34.75 $ 33.40 $ 33.60
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 102,929,563 104,808,260 103,617,590 104,682,910 104,859,427
Diluted 103,164,267 105,125,326 103,933,959 104,952,788 105,162,858
 
Common Dividends $ 34,975 $ 35,715 $ 35,303 $ 35,584 $ 35,748
 
Dividend Payout Ratio 54.69 % 198.69 % 54.81 % 53.69 % 57.93 %
 
Year Ended
December December December December
YTD Share Data: 2018 2017 2016 2015
 
Earnings Per Share:
Basic $ 2.46 $ 1.54 $ 2.00 $ 1.99
Diluted $ 2.45 $ 1.54 $ 1.99 $ 1.98
 
Common Dividend Declared Per Share $ 1.36 $ 1.33 $ 1.32 $ 1.29
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 104,015,976 97,502,633 73,531,992 69,334,849
Diluted 104,298,825 97,890,078 73,893,127 69,625,531
 
Common Dividends $ 141,610 $ 131,755 $ 98,696 $ 89,667
 
Dividend Payout Ratio 55.24 % 87.50 % 67.10 % 65.00 %
 
EOP Employees (full-time equivalent) 2,230 2,381 1,701 1,701
 
Three Months Ended
December December September June March
EOP Share Data: 2018 2017 2018 2018 2018
Book Value Per Share $ 31.78 $ 30.85 $ 31.32 $ 31.12 $ 30.92
Tangible Book Value Per Share (1) $ 16.97 $ 16.35 $ 16.71 $ 16.54 $ 16.45
 
52-week High Common Stock Price $ 39.95 $ 47.30 $ 39.95 $ 40.45 $ 42.60
Date 08/21/18 01/03/17 08/21/18 07/03/17 04/03/17
52-week Low Common Stock Price $ 29.13 $ 31.70 $ 33.40 $ 31.70 $ 31.70
Date 12/27/18 09/07/17 05/01/18 09/07/17 09/07/17
 
EOP Shares Outstanding (Net of Treasury Stock): 102,323,488 105,040,648 103,805,836 104,203,542 105,141,170
 

Note:

(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 3,251,624 $ 3,240,530 $ 3,251,128 $ 3,242,565 $ 3,251,313
Less: Total Intangibles   (1,514,961 )   (1,523,366 )   (1,516,971 )   (1,518,980 )   (1,521,556 )
Tangible Equity (non-GAAP) $ 1,736,663 $ 1,717,164 $ 1,734,157 $ 1,723,585 $ 1,729,757
÷ EOP Shares Outstanding (Net of Treasury Stock) 102,323,488 105,040,648 103,805,836 104,203,542 105,141,170
Tangible Book Value Per Share (non-GAAP) $ 16.97 $ 16.35 $ 16.71 $ 16.54 $ 16.45
 
 
 
 
 
 
UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

                       
Three Months Ended
December       December     September June March
2018 2017 2018 2018 2018

Selected Yields and Net Interest Margin:

Net Loans 4.86% 4.84% 4.83% 4.76% 4.63%
Investment Securities 2.92% 2.60% 2.74% 2.73% 2.52%
Money Market Investments/FFS 2.57% 1.36% 2.39% 2.14% 2.04%
Average Earning Assets Yield 4.46% 4.29% 4.42% 4.37% 4.19%
Interest-bearing Deposits 1.25% 0.60% 1.09% 0.83% 0.68%
Short-term Borrowings 1.52% 0.50% 1.15% 0.89% 0.60%
Long-term Borrowings 2.58% 1.97% 2.38% 2.26% 2.12%
Average Liability Costs 1.43% 0.77% 1.27% 1.05% 0.85%
Net Interest Spread 3.03% 3.52% 3.15% 3.32% 3.34%
Net Interest Margin 3.50% 3.77% 3.56% 3.67% 3.61%
 

Selected Financial Ratios:

Return on Average Common Equity 7.77% 2.17% 7.83% 8.11% 7.65%
Return on Average Assets 1.33% 0.38% 1.34% 1.42% 1.35%
Efficiency Ratio 51.55% 51.05% 51.71% 50.46% 51.62%
 
 
Year Ended
December December December December
2018 2017 2016 2015

Selected Yields and Net Interest Margin:

Net Loans 4.77% 4.56% 4.38% 4.33%
Investment Securities 2.73% 2.63% 2.89% 2.87%
Money Market Investments/FFS 2.29% 1.23% 0.51% 0.27%
Average Earning Assets Yield 4.36% 4.07% 4.00% 3.94%
Interest-bearing Deposits 0.97% 0.54% 0.42% 0.42%
Short-term Borrowings 1.00% 0.51% 0.39% 0.26%
Long-term Borrowings 2.34% 1.80% 1.28% 1.08%
Average Liability Costs 1.15% 0.69% 0.53% 0.50%
Net Interest Spread 3.21% 3.38% 3.47% 3.44%
Net Interest Margin 3.58% 3.58% 3.62% 3.58%
 

Selected Financial Ratios:

Return on Average Common Equity 7.84% 5.09% 7.67% 8.10%
Return on Average Assets 1.36% 0.85% 1.10% 1.12%
Loan / Deposit Ratio 95.91% 94.08% 95.78% 100.46%
Allowance for Loan Losses/ Loans, Net of Unearned Income 0.57% 0.59% 0.70% 0.81%
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 0.58% 0.59% 0.71% 0.82%
Nonaccrual Loans / Loans, Net of Unearned Income 0.51% 0.84% 0.81% 0.97%
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.11% 0.08% 0.08% 0.12%
Non-performing Loans/ Loans, Net of Unearned Income 1.06% 1.30% 1.10% 1.35%
Non-performing Assets/ Total Assets 0.83% 1.01% 1.00% 1.26%
Primary Capital Ratio 17.23% 17.34% 15.84% 14.14%
Shareholders' Equity Ratio 16.89% 17.00% 15.41% 13.62%
Price / Book Ratio 0.98 x 1.13

x

1.68

x 1.50 x
Price / Earnings Ratio 12.71 x 22.59

x

23.24

x 18.67 x
Efficiency Ratio 51.32% 53.98% 50.10% 50.61%
 

Note:

(1) Includes allowance for loan losses and reserve for 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
December December September June March
2018 2017 2018 2018 2018

Mortgage Banking Data – George Mason:

Applications $ 714,000 $ 906,000 $ 854,000 $ 1,195,000 $ 1,149,000
Loans originated 530,088 688,952 641,141 874,493 573,732
Loans sold $ 514,294 $ 753,005 $ 692,270 $ 784,727 $ 616,951
Purchase money % of loans closed 86 % 77 % 88 % 83 % 75 %
Realized gain on sales and fees as a % of loans sold 2.82 % 2.72 % 2.85 % 2.62 % 2.62 %
Net interest income $ 287

$

(123

) $ 388 $ 264 $ 376
Other income 13,726 16,203 16,478 23,468 14,883
Other expense 15,066 19,328 17,957 21,225 18,384
Income taxes -121 -862 -245 564 -703
Net income

$

(932

)

$

(2,386

)

$

(846

) $

1,943

$

(2,422

)
 
 

 

Year Ended

 

 

December

December

Mortgage Banking Data – George Mason:

 

 

2018

2017

Applications

 

 

$

3,912,000

$

3,337,000

Loans originated

 

 

2,619,454

2,333,895

Loans sold

 

 

$

2,608,242

$

2,350,813

Purchase money % of loans closed

 

 

83

%

82

%

Realized gain on sales and fees as a % of loans sold

 

 

2.72

%

2.80

%

Net interest income

 

 

$

1,315

$

(69

)

Other income

 

 

68,555

58,532

Other expense

 

 

72,632

62,072

Income taxes

 

 

-505

-901

Net income

 

 

$

(2,257

)

$

(2,708

)

 
 
December December September June March

Period End Mortgage Banking Data – George Mason:

2018 2017 2018 2018 2018
Locked pipeline $ 122,677 $ 157,130 $ 170,545 $ 221,317 $ 206,883
 
 
December December September June March

Asset Quality Data:

2018 2017 2018 2018 2018
 
EOP Non-Accrual Loans $ 68,544 $ 108,803 $ 66,554 $ 74,114 $ 100,172
EOP 90-Day Past Due Loans 14,851 9,803 15,949 16,422 9,165
EOP Restructured Loans (1)   59,425     50,129     63,626     60,384     48,271  
Total EOP Non-performing Loans $ 142,820 $ 168,735 $ 146,129 $ 150,920 $ 157,608
 
EOP Other Real Estate & Assets Owned   16,865     24,348     18,786     21,926     22,778  
Total EOP Non-performing Assets $ 159,685   $ 193,083   $ 164,915   $ 172,846   $ 180,386  
 

Note:

(1) Restructured loans with an aggregate balance of $48,899, $50,974, $46,652, $33,592 and $30,868 at December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above.

 
 
 
 
 
 

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
December     December December     December     December

Allowance for Loan Losses:

2018 2017 2018 2017 2016
Beginning Balance $ 76,941 $ 74,926 $ 76,627 $ 72,771 $ 75,726
Provision for Loan Losses   5,823     6,977     22,013     28,406     24,509  
82,764 81,903 98,640 101,177 100,235
Gross Charge-offs (7,992 ) (9,299 ) (28,606 ) (32,863 ) (36,180 )
Recoveries   1,931     4,023     6,669     8,313     8,716  
Net Charge-offs   (6,061 )   (5,276 )   (21,937 )   (24,550 )   (27,464 )
Ending Balance $ 76,703 $ 76,627 $ 76,703 $ 76,627 $ 72,771
Reserve for lending-related commitments   1,389     679     1,389     679     1,044  
Allowance for Credit Losses (1) $ 78,092   $ 77,306   $ 78,092   $ 77,306   $ 73,815  
 

Note:

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