Exhibit 99.1

News Release

 

 

 

LOGO

 

For Immediate Release    Contact: W. Mark Tatterson
October 25, 2018    Chief Financial Officer
   (800) 445-1347 ext. 8716

United Bankshares, Inc. Announces Earnings

for the Third Quarter and First Nine Months of 2018

WASHINGTON, D.C. and CHARLESTON, WV — United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the third quarter and the first nine months of 2018. Earnings for the third quarter of 2018 were $64.4 million as compared to earnings of $56.7 million for the third quarter of 2017. Diluted earnings per share were $0.62 for the third quarter of 2018 as compared to diluted earnings per share of $0.54 for the third quarter of 2017. Earnings for the first nine months of 2018 were a record $192.4 million as compared to earnings of $132.6 million for the first nine months of 2017. Diluted earnings per share were $1.83 for the first nine months of 2018 as compared to diluted earnings per share of $1.39 per diluted share for the first nine months of 2017.

Third quarter of 2018 results produced an annualized return on average assets of 1.34% and an annualized return on average equity of 7.83%, respectively. For the first nine months of 2018, United’s return on average assets was 1.37% while the return on average equity was 7.86%. United’s annualized returns on average assets and average equity were 1.19% and 6.89%, respectively, for the third quarter of 2017 while the returns on average assets and average equity were 1.03% and 6.22%, respectively, for the first nine months of 2017.

“Our earnings continue to be strong, achieving record earnings and outperforming peer profitability,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer.

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 first nine months of 2018 were impacted by increased levels of average balances, income, and expense as compared to the first nine months of 2017. In addition, the third quarter and first nine months of 2017 included $532 thousand and $25.0 million, respectively, of merger-related expenses from the Cardinal acquisition.

Net interest income for the third quarter of 2018 was $148.8 million, which was a decrease of $1.5 million or 1% from the third quarter of 2017. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the third quarter of 2018 was $149.8 million, a decrease of $2.5 million or 2% from the third quarter of 2017 due mainly to an increase of 54 basis points in the average cost of funds as compared to the third quarter of 2017 due to higher market interest rates.

 

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United Bankshares, Inc. Announces...

October 25, 2018

Page Two

 

In addition, loan accretion on acquired loans was $11.6 million and $12.8 million for the third quarter of 2018 and 2017, respectively, decreasing $1.2 million or 10%. Partially offsetting these decreases to tax-equivalent net interest income for the third quarter of 2018 was an increase of 26 basis points in the average yield on earning assets as compared to the third quarter of 2017 due to higher market interest rates. In addition, average earning assets for the third quarter of 2018 increased $172.5 million or 1% from the third quarter of 2017 due mainly to an increase of $491.9 million or 27% in average investment securities. Partially offsetting this increase was a decrease in average short-term investments of $335.3 million or 27%. Average net loans remained flat for the third quarter, increasing $15.9 million or less than 1% from the third quarter of 2017. The net interest margin of 3.56% for the third quarter of 2018 was a decrease of 9 basis points from the net interest margin of 3.65% for the third quarter of 2017.

Net interest income for the first nine months of 2018 was $441.9 million, which was an increase of $47.8 million or 12% from the first nine months of 2017. Tax-equivalent net interest income for the first nine months of 2018 was $445.2 million, an increase of $44.9 million or 11% from the first nine months of 2017. This increase in tax-equivalent net interest income was primarily attributable to an increase in average earning assets from the Cardinal acquisition. Average earning assets increased $1.3 billion or 8% from the first nine months of 2017 as average net loans increased $1.1 billion or 9% for the first nine months of 2018. Average investment securities increased $613.1 million or 37% while short-term investments decreased $436.1 million or 34%. The first nine months of 2018 average yield on earning assets increased 34 basis points from the first nine months of 2017 due to higher market interest rates and additional loan accretion of $10.0 million on acquired loans. Loan accretion was $34.4 million and $24.4 million for the first nine months of 2018 and 2017, respectively. Partially offsetting the increases to tax-equivalent net interest income for the first nine months of 2018 was an increase of 39 basis points in the average cost of funds as compared to the first nine months of 2017 due to higher market interest rates. The net interest margin of 3.61% for the first nine months of 2018 was an increase of 9 basis points from the net interest margin of 3.52% for the first nine months of 2017.

On a linked-quarter basis, net interest income for the third quarter of 2018 was relatively flat from the second quarter of 2018, decreasing $347 thousand or less than 1%. United’s tax-equivalent net interest income for the third quarter of 2018 was also relatively flat, decreasing $413 thousand or less than 1% due to a combination of a $265.9 million or 2% increase in interest bearing funds and an increase of 22 basis points in the average cost of funds as a result of higher market interest rates. In addition, loan accretion on acquired loans decreased $497 thousand. Partially offsetting these increases to tax-equivalent net interest income for the third quarter of 2018 was a $334.5 million or 2% increase in the average earning assets and a 5 basis points increase in the yield on average earning assets. Specifically, average short-term investments increased $262.1 million or 40%. Average net loans and average investment securities were relatively flat for the third quarter of 2018, increasing $80.2 million and decreasing $7.8 million, respectively from the second quarter of 2018. The net interest margin of 3.56% for the third quarter of 2018 decreased 11 basis points from the net interest margin of 3.67% for the second quarter of 2018.

For the quarters ended September 30, 2018 and 2017, the provision for loan losses was $4.8 million and $7.3 million, respectively, while the provision for the first nine months of 2018 was $16.2 million as compared to $21.4 million for the first nine months of 2017. Net charge-offs were $5.0 million and $15.9 million for the third quarter and first nine months of 2018, respectively, as compared to $5.3 million and $19.3 million for the third quarter and first nine months of 2017, respectively. Annualized net charge-offs as a percentage of average loans were 0.15% and 0.16% for the third quarter and first nine months of 2018, respectively. On a linked-quarter basis, the provision for loan losses decreased $1.4 million while net charge-offs decreased $720 thousand from the second quarter of 2018.

 

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United Bankshares, Inc. Announces...

October 25, 2018

Page Three

 

Noninterest income for the third quarter of 2018 was $31.7 million, which was a decrease of $6.5 million or 17% from the third quarter of 2017. The decrease was due mainly to a decrease of $7.1 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 $178.3 million of portfolio mortgage loan products for United Bank during the third quarter of 2018. In addition, net gains and losses on investment securities’ activity declined $619 thousand.

Noninterest income for the first nine months of 2018 was $98.9 million, which was flat from the first nine months of 2017, increasing $4 thousand or less than 1%. Income from mortgage banking activities for the first nine months of 2018 increased $2.9 million from the first nine months of 2017. This increase was mainly due to including the production and sales of mortgage loans in the secondary market by George Mason for nine months in 2018 as compared to slightly over five months in 2017. In addition, fees from brokerage services and bankcard fees increased $1.1 million and $952 thousand, respectively, due to increased volume. Fees from trust services increased $680 thousand due to an increase in the value of managed assets while fees from deposit services increased $345 thousand mainly due to higher income from debit card and automated teller machine (ATM) fees. Mostly offsetting these increases was a decline in net gains and losses on investment securities’ activity of $5.8 million for the first nine months of 2018 from the first nine months of 2017 due mainly to a net gain of $3.8 million on the redemption of an investment security during the first quarter of 2017.

On a linked-quarter basis, noninterest income for the third quarter of 2018 decreased $4.3 million or 12% from the second quarter of 2018. The decrease was due mainly to a decrease of $5.4 million in income from mortgage banking activities due mainly to a change in fair value of $6.2 million on George Mason’s interest rate lock commitments. In addition, net gains and losses on investment securities’ activity decreased $97 thousand. Partially offsetting these decreases in noninterest income was a $834 thousand increase in fees from brokerage services as well as a $253 thousand increase in fees from deposit services and a $246 thousand increase in fees from trust services mainly due to increased volume.

Noninterest expense for the third quarter of 2018 was $93.3 million, a decrease of $3.3 million or 3% from the third quarter of 2017. In particular, employee compensation decreased $3.6 million due mainly to a decrease of $3.2 million in commissions expense, other real estate owned (OREO) expense decreased $1.8 million and merger expenses decreased $434 thousand. Partially offsetting these decreases was an increase in Federal Deposit Insurance Corporation (FDIC) insurance expense of $2.0 million as United Bank is now considered a large institution and subject to increased assessment rates. In addition, equipment expense increased $835 thousand due to increased maintenance expense and data processing expense increased $471 thousand due to additional processing.

Noninterest expense for the first nine months of 2018 was $277.2 million, an increase of $5.5 million or 2% from the first nine months of 2017 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases partially offset by a

 

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United Bankshares, Inc. Announces...

October 25, 2018

Page Four

 

decline in the associated merger-related expenses of the acquisition. In particular, employee benefits increased $1.8 million, employee compensation increased $323 thousand, equipment expense increased $2.8 million, and data processing expense increased $2.8 million. In addition, FDIC insurance expense increased $3.2 million due to United Bank now being considered a large institution as previously mentioned. Partially offsetting these increases was a decrease in net occupancy expense of $2.3 million due to the expense for the termination of leases and the reduction in value of leasehold improvements for closed offices in the Cardinal acquisition being included in the first nine months of 2017. In addition, OREO expense decreased $2.2 million and other expense decreased $943 thousand due to a decrease in merger-related expenses.

On a linked-quarter basis, noninterest expense for the third quarter of 2018 was flat from the second quarter of 2018, decreasing $95 thousand or less than 1%. In particular, employee compensation and employee benefits decreased $1.8 million and $653 thousand, respectively, as a result of lower commissions expense and fewer employees related to a decrease in production and sales of mortgage loans at George Mason. Mostly offsetting these decreases in noninterest expense was an increase in FDIC insurance expense of $688 thousand due to United Bank now being considered a large institution as previously mentioned. In addition, equipment expense increased $613 thousand, data processing expense increased $251 thousand, OREO expense increased $365 thousand, and net occupancy expense increased $197 thousand.

For the third quarter and first nine months of 2018, income tax expense was $17.9 million and $55.1 million, respectively, as compared to $27.8 million and $67.4 million, respectively, in the third quarter and first nine months of 2017. The decreases in 2018 were mainly due to a decline in the effective tax rate as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act). On a linked-quarter basis, income tax expense for the third quarter of 2018 decreased $1.3 million from the second quarter of 2018 due to a combination of lower earnings and a lower effective tax rate. United’s effective tax rate was 21.77% for the third quarter of 2018, 22.50% for the second quarter of 2018 and 32.91% for the third quarter of 2017. For the first nine months of 2018 and 2017, United’s effective tax rate was 22.25% and 33.68%, respectively. The lower effective tax rate for the time periods in 2018 was due to the impact of the Tax Act.

United’s asset quality continues to be sound. At September 30, 2018, nonperforming loans were $146.1 million, or 1.10% 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 September 30, 2018, the allowance for loan losses was $76.9 million or 0.58% 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 $164.9 million, including OREO of $18.8 million at September 30, 2018, represented 0.86% of total assets as compared to nonperforming assets of $193.1 million or 1.01%, including OREO of $24.3 million at December 31, 2017.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.6% at September 30, 2018 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.4%, 12.4% and 10.3%, 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 September 30, 2018, United had consolidated assets of approximately $19.2 billion with 140 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”.

 

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United Bankshares, Inc. Announces...

October 25, 2018

Page Five

 

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its September 30, 2018 consolidated financial statements on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of September 30, 2018 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

Net interest income is presented in this press release on a tax-equivalent basis. The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments. Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources. United uses this measure to monitor net interest income performance and to manage its balance sheet composition. The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21% for 2018 and 35% for 2017.

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.

 

5


UNITED BANKSHARES, INC. AND SUBSIDIARIES

FINANCIAL SUMMARY

(In Thousands Except for Per Share Data)

 

     Three Months Ended     Nine Months Ended  
     September 30
2018
    September 30
2017
    September 30
2018
    September 30
2017
 

EARNINGS SUMMARY:

        

Interest income

   $ 185,030     $ 171,583     $ 530,215     $ 447,288  

Interest expense

     36,255       21,307       88,275       53,147  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     148,775       150,276       441,940       394,141  

Provision for loan losses

     4,808       7,279       16,190       21,429  

Noninterest income

     31,686       38,229       98,885       98,881  

Noninterest expenses

     93,315       96,652       277,177       271,631  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     82,338       84,574       247,458       199,962  

Income taxes

     17,926       27,836       55,066       67,356  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 64,412     $ 56,738     $ 192,392     $ 132,606  
  

 

 

   

 

 

   

 

 

   

 

 

 

PER COMMON SHARE:

        

Net income:

        

Basic

   $ 0.62     $ 0.54     $ 1.84     $ 1.39  

Diluted

     0.62       0.54       1.83       1.39  

Cash dividends

   $ 0.34     $ 0.33       1.02       0.99  

Book value

         31.32       31.09  

Closing market price

       $ 36.35     $ 37.15  

Common shares outstanding:

        

Actual at period end, net of treasury shares

         103,805,836       104,983,126  

Weighted average — basic

     103,617,590       104,760,153       104,382,094       95,040,664  

Weighted average — diluted

     103,933,959       105,068,122       104,679,876       95,450,626  

FINANCIAL RATIOS:

        

Return on average assets

     1.34     1.19     1.37     1.03

Return on average shareholders’ equity

     7.83     6.89     7.86     6.22

Average equity to average assets

     17.13     17.25     17.43     16.58

Net interest margin

     3.56     3.65     3.61     3.52
     September 30
2018
    September 30
2017
    December 31
2017
    June 30
2018
 

PERIOD END BALANCES:

        

Assets

   $ 19,187,643     $ 19,129,978     $ 19,058,959     $ 19,207,603  

Earning assets

     16,872,384       16,751,643       16,741,819       16,852,952  

Loans, net of unearned income

     13,276,740       13,140,468       13,011,421       13,516,629  

Loans held for sale

     234,196       315,031       265,955       285,194  

Investment securities

     2,375,512       1,836,725       2,071,645       2,266,303  

Total deposits

     14,091,172       13,875,297       13,830,591       13,830,766  

Shareholders’ equity

     3,251,128       3,263,843       3,240,530       3,242,565  

 

6


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     Year to Date  
     September
2018
    September
2017
    June
2018
    March
2018
    September
2018
    September
2017
 

Interest & Loan Fees Income (GAAP)

   $ 185,030     $ 171,583     $ 178,000     $ 167,185     $ 530,215     $ 447,288  

Tax equivalent adjustment

     1,049       2,092       1,115       1,104       3,268       6,168  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest & Fees Income (FTE) (non-GAAP)

     186,079       173,675       179,115       168,289       533,483       453,456  

Interest Expense

     36,255       21,307       28,878       23,142       88,275       53,147  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income (FTE) (non-GAAP)

     149,824       152,368       150,237       145,147       445,208       400,309  

Provision for Loan Losses

     4,808       7,279       6,204       5,178       16,190       21,429  

Non-Interest Income:

            

Fees from trust services

     3,350       2,972       3,104       3,091       9,545       8,865  

Fees from brokerage services

     2,787       2,080       1,953       2,224       6,964       5,818  

Fees from deposit services

     8,673       8,744       8,420       8,230       25,323       24,978  

Bankcard fees and merchant discounts

     1,549       1,332       1,479       1,356       4,384       3,432  

Other charges, commissions, and fees

     532       535       599       509       1,640       1,533  

Income from bank-owned life insurance

     1,251       1,403       1,271       1,254       3,776       3,878  

Income from mortgage banking activities

     13,277       20,385       18,692       14,570       46,539       43,597  

Net (losses) gains on investment securities

     (152     467       (55     (485     (692     5,154  

Other non-interest revenue

     419       311       544       443       1,406       1,626  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Interest Income

     31,686       38,229       36,007       31,192       98,885       98,881  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-Interest Expense:

            

Employee compensation

     41,312       44,882       43,120       40,836       125,268       124,945  

Employee benefits

     8,645       9,004       9,298       9,571       27,514       25,667  

Net occupancy

     9,273       9,364       9,076       9,427       27,776       30,061  

Data processing

     6,068       5,597       5,817       5,850       17,735       14,971  

Amortization of intangibles

     2,009       2,240       2,010       2,010       6,029       5,381  

OREO expense

     921       2,713       556       946       2,423       4,651  

FDIC expense

     3,530       1,540       2,842       1,848       8,220       5,062  

Other expenses

     21,557       21,312       20,691       19,964       62,212       60,893  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Interest Expense

     93,315       96,652       93,410       90,452       277,177       271,631  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes (FTE) (non-GAAP)

     83,387       86,666       86,630       80,709       250,726       206,130  

Tax equivalent adjustment

     1,049       2,092       1,115       1,104       3,268       6,168  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income Before Income Taxes (GAAP)

     82,338       84,574       85,515       79,605       247,458       199,962  

Taxes

     17,926       27,836       19,241       17,899       55,066       67,356  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

   $ 64,412     $ 56,738     $ 66,274     $ 61,706     $ 192,392     $ 132,606  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

MEMO: Effective Tax Rate

     21.77     32.91     22.50     22.48     22.25     33.68

 

7


UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

Consolidated Balance Sheets

 

     September 30
2018
Q-T-D Average
    September 30
2017
Q-T-D Average
    September 30
2018
    December 31
2017
    September 30
2017
 

Cash & Cash Equivalents

   $ 1,105,876     $ 1,443,491     $ 1,254,686     $ 1,666,167     $ 1,747,037  

Securities Available for Sale

     2,087,133       1,612,335       2,178,567       1,888,756       1,649,634  

Held to Maturity Securities

     20,368       20,353       20,351       20,428       20,335  

Equity Securities

     9,734       0       9,845       0       0  

Other Investment Securities

     167,294       159,945       166,749       162,461       166,756  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Securities

     2,284,529       1,792,633       2,375,512       2,071,645       1,836,725  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Cash and Securities

     3,390,405       3,236,124       3,630,198       3,737,812       3,583,762  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans held for sale

     257,008       294,971       234,196       265,955       315,031  

Commercial Loans

     9,628,904       10,111,213       9,451,496       9,822,027       9,943,254  

Mortgage Loans

     2,821,722       2,488,671       2,870,840       2,443,780       2,475,092  

Consumer Loans

     931,226       730,798       964,375       761,530       738,508  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross Loans

     13,381,852       13,330,682       13,286,711       13,027,337       13,156,854  

Unearned income

     (10,928     (17,720     (9,971     (15,916     (16,386
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans, net of unearned income

     13,370,924       13,312,962       13,276,740       13,011,421       13,140,468  

Allowance for Loan Losses

     (77,103     (73,031     (76,941     (76,627     (74,926

Goodwill

     1,478,014       1,484,488       1,478,014       1,478,380       1,487,607  

Other Intangibles

     40,105       52,649       38,957       44,986       47,526  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Intangibles

     1,518,119       1,537,137       1,516,971       1,523,366       1,535,133  

Other Real Estate Owned

     19,694       27,889       18,786       24,348       26,826  

Other Assets

     568,642       591,733       587,693       572,684       603,684  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 19,047,689     $ 18,927,785     $ 19,187,643     $ 19,058,959     $ 19,129,978  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

MEMO: Interest-earning Assets

   $ 16,746,772     $ 16,574,277     $ 16,872,384     $ 16,741,819     $ 16,751,643  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Interest-bearing Deposits

   $ 9,588,327     $ 9,837,967     $ 9,620,357     $ 9,535,904     $ 9,741,278  

Noninterest-bearing Deposits

     4,338,309       4,036,653       4,470,815       4,294,687       4,134,019  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Deposits

     13,926,636       13,874,620       14,091,172       13,830,591       13,875,297  

Short-term Borrowings

     212,566       325,631       379,508       477,587       492,036  

Long-term Borrowings

     1,543,004       1,364,417       1,319,371       1,363,977       1,364,246  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Borrowings

     1,755,570       1,690,048       1,698,879       1,841,564       1,856,282  

Other Liabilities

     102,534       97,575       146,464       146,274       134,556  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     15,784,740       15,662,243       15,936,515       15,818,429       15,866,135  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Preferred Equity

     —         —         —         —         —    

Common Equity

     3,262,949       3,265,542       3,251,128       3,240,530       3,263,843  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     3,262,949       3,265,542       3,251,128       3,240,530       3,263,843  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities & Equity

   $ 19,047,689     $ 18,927,785     $ 19,187,643     $ 19,058,959     $ 19,129,978  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

MEMO: Interest-bearing Liabilities

   $ 11,343,897     $ 11,528,015     $ 11,319,236     $ 11,377,468     $ 11,597,560  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

8


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 to Date  
     September
2018
    September
2017
    June
2018
    March
2018
    September
2018
    September
2017
 

Quarterly/Year-to-Date Share Data:

            

Earnings Per Share:

            

Basic

   $ 0.62     $ 0.54     $ 0.63     $ 0.59     $ 1.84     $ 1.39  

Diluted

   $ 0.62     $ 0.54     $ 0.63     $ 0.59     $ 1.83     $ 1.39  

Common Dividend Declared Per Share:

   $ 0.34     $ 0.33     $ 0.34     $ 0.34     $ 1.02     $ 0.99  

High Common Stock Price

   $ 39.95     $ 40.45     $ 38.80     $ 38.55     $ 39.95     $ 47.30  

Low Common Stock Price

   $ 34.75     $ 31.70     $ 33.40     $ 33.60     $ 33.40     $ 31.70  

Average Shares Outstanding (Net of Treasury Stock):

            

Basic

     103,617,590       104,760,153       104,682,910       104,859,427       104,382,094       95,040,664  

Diluted

     103,933,959       105,068,122       104,952,788       105,162,858       104,679,876       95,450,626  

Memorandum Items:

            

Common Dividends

   $ 35,303     $ 34,642     $ 35,584     $ 35,748     $ 106,635     $ 96,040  

Dividend Payout Ratio

     54.81     61.06     53.69     57.93     55.43     72.43

 

     September
2018
    September
2017
    June 30
2018
    March 31
2018
 

EOP Share Data:

        

Book Value Per Share

   $ 31.32     $ 31.09     $ 31.12     $ 30.92  

Tangible Book Value Per Share (non-GAAP) (1)

   $ 16.71     $ 16.47     $ 16.54     $ 16.45  

52-week High Common Stock Price

   $ 39.95     $ 49.35     $ 40.45     $ 42.60  

Date

     08/21/18       12/12/16       07/03/17       04/03/17  

52-week Low Common Stock Price

   $ 33.40     $ 31.70     $ 31.70     $ 31.70  

Date

     05/01/18       09/07/17       09/07/17       09/07/17  

EOP Shares Outstanding (Net of Treasury Stock):

     103,805,836       104,983,126       104,203,542       105,141,170  

Memorandum Items:

        

EOP Employees (full-time equivalent)

     2,290       2,451       2,300       2,341  
Note:         

(1)   Tangible Book Value Per Share:

        

Total Shareholders’ Equity (GAAP)

   $ 3,251,128     $ 3,263,843     $ 3,242,565     $ 3,251,313  

Less: Total Intangibles

     (1,516,971     (1,535,133     (1,518,980     (1,521,556
  

 

 

   

 

 

   

 

 

   

 

 

 

Tangible Equity (non-GAAP)

   $ 1,734,157     $ 1,728,710     $ 1,723,585     $ 1,729,757  

÷ EOP Shares Outstanding (Net of Treasury Stock)

     103,805,836       104,983,126       104,203,542       105,141,170  

Tangible Book Value Per Share (non-GAAP)

   $ 16.71     $ 16.47     $ 16.54     $ 16.45  

 

9


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 to Date  
     September
2018
    September
2017
    June
2018
    March
2018
    September
2018
    September
2017
 

Selected Yields and Net Interest Margin:

            

Loans

     4.83     4.61     4.76     4.63     4.74     4.46

Investment Securities

     2.74     2.61     2.73     2.52     2.66     2.64

Money Market Investments/FFS

     2.39     1.55     2.14     2.04     2.19     1.18

Average Earning Assets Yield

     4.42     4.16     4.37     4.19     4.33     3.99

Interest-bearing Deposits

     1.09     0.57     0.83     0.68     0.87     0.52

Short-term Borrowings

     1.15     0.52     0.89     0.60     0.85     0.52

Long-term Borrowings

     2.38     1.93     2.26     2.12     2.26     1.74

Average Liability Costs

     1.27     0.73     1.05     0.85     1.06     0.67

Net Interest Spread

     3.15     3.43     3.32     3.34     3.27     3.32

Net Interest Margin

     3.56     3.65     3.67     3.61     3.61     3.52

Selected Performance Ratios:

            

Return on Average Common Equity

     7.83     6.89     8.11     7.65     7.86     6.22

Return on Average Assets

     1.34     1.19     1.42     1.35     1.37     1.03

Efficiency Ratio

     51.71     51.27     50.46     51.62     51.25     55.10

 

     September
2018
    September
2017
    June
2018
    March
2018
    December
2017
 

Selected Financial Ratios:

          

Loan / Deposit Ratio

     94.22     94.70     97.73     95.15     94.08

Allowance for Loan Losses/ Loans, Net of Unearned Income

     0.58     0.57     0.57     0.59     0.59

Allowance for Credit Losses (1)/ Loans, Net of Unearned Income

     0.59     0.58     0.58     0.60     0.59

Nonaccrual Loans / Loans, Net of Unearned Income

     0.50     0.76     0.55     0.77     0.84

90-Day Past Due Loans/ Loans, Net of Unearned Income

     0.12     0.17     0.12     0.07     0.08

Non-performing Loans/ Loans, Net of Unearned Income

     1.10     1.28     1.12     1.21     1.30

Non-performing Assets/ Total Assets

     0.86     1.02     0.90     0.97     1.01

Primary Capital Ratio

     17.28     17.39     17.21     17.80     17.34

Shareholders’ Equity Ratio

     16.94     17.06     16.88     17.46     17.00

Price / Book Ratio

     1.16     1.19     1.17     1.14     1.13

Price / Earnings Ratio

     14.66     17.20     14.41     15.02     22.59

Note:

 

(1)

Includes allowances for loan losses and lending-related commitments.

 

10


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 to Date  
     September
2018
    September
2017
    June
2018
    March
2018
    September
2018
    September
2017
 

Mortgage Banking Data — George Mason:

            

Applications

   $ 854,000     $ 1,064,000     $ 1,195,000     $ 1,149,000     $ 3,198,000     $ 2,431,000  

Loans originated

     641,141       858,625       874,493       573,732       2,089,366       1,644,943  

Loans sold

   $ 692,270     $ 887,711     $ 784,727     $ 616,951     $ 2,093,948     $ 1,597,808  

Purchase money % of loans closed

     88     81     83     75     82     84

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

     2.85     2.75     2.62     2.62     2.70     2.84

Net interest income

   $ 388     $ (36   $ 264     $ 376     $ 1,028     $ 54  

Other income

     16,478       19,936       23,468       14,883       54,829       42,329  

Other expense

     17,957       24,036       21,225       18,384       57,566       42,744  

Income taxes

     (245     (1,332     564       (703     (384     (39

Net income

   $ (846   $ (2,804   $ 1,943     $ (2,422   $ (1,325   $ (322
Period End Mortgage Banking Data — George
Mason
:
         September
2018
    September
2017
    December
2017
    June
2018
    March
2018
 

Locked pipeline

     $ 170,545     $ 245,986     $ 157,130     $ 221,317     $ 206,883  
Asset Quality Data:          September
2018
    September
2017
    December
2017
    June
2018
    March
2018
 

EOP Non-Accrual Loans

     $ 66,554     $ 100,016     $ 108,803     $ 74,114     $ 100,172  

EOP 90-Day Past Due Loans

       15,949       22,249       9,803       16,422       9,165  

EOP Restructured Loans (1)

       63,626       46,132       50,129       60,384       48,271  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total EOP Non-performing Loans

     $ 146,129     $ 168,397     $ 168,735     $ 150,920     $ 157,608  

EOP Other Real Estate Owned

       18,786       26,826       24,348       21,926       22,778  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total EOP Non-performing Assets

     $ 164,915     $ 195,223     $ 193,083     $ 172,846     $ 180,386  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended     Year to Date  
Allowance for Loan Losses:    September
2018
    September
2017
    June
2018
    March
2018
    September
2018
    September
2017
 

Beginning Balance

   $ 77,135     $ 72,983     $ 76,653     $ 76,627     $ 76,627     $ 72,771  

Provision for Loan Losses

     4,808       7,279       6,204       5,178       16,190       21,429  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     81,943       80,262       82,857       81,805       92,817       94,200  

Gross Charge-offs

     (7,044     (6,357     (7,712     (5,858     (20,614     (23,564

Recoveries

     2,042       1,021       1,990       706       4,738       4,290  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Charge-offs

     (5,002     (5,336     (5,722     (5,152     (15,876     (19,274
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending Balance

     76,941       74,926     $ 77,135     $ 76,653       76,941       74,926  

Reserve for lending-related commitments

     1,144       804       927       755       1,144       804  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for Credit Losses (2)

   $ 78,085     $ 75,730     $ 78,062     $ 77,408     $ 78,085     $ 75,730  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

Restructured loans with an aggregate balance of $50,974, $29,717, $46,652, $33,592 and $30,868 at September 30, 2018, September 30, 2017, 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.

(2)

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

 

11

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