United Bankshares, Inc. Announces Earnings for the First Quarter of 2023

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the first quarter of 2023 of $98.3 million, or $0.73 per diluted share, as compared to earnings of $99.8 million, or $0.74 per diluted share, for the fourth quarter of 2022. Earnings for the first quarter of 2022 were $81.7 million, or $0.60 per diluted share.

First quarter of 2023 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.35%, 8.72% and 14.97%, respectively, compared to annualized returns on average assets, average equity and average tangible equity of 1.36%, 8.80% and 15.28%, respectively, for the fourth quarter of 2022. Annualized returns on average assets, average equity and average tangible equity were 1.13%, 6.96% and 11.63%, respectively, for the first quarter of 2022.

“Consistency, conservatism, and trust were the leading themes for UBSI in the first quarter,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “We continued to deliver strong financial performance, highlighted by a Return on Average Assets of 1.35%, a net interest margin of 3.63%, and an efficiency ratio of 51.46%. Our capital levels remain among the strongest in the industry, our asset quality metrics reflect our conservative underwriting, and our liquidity levels have us well-positioned to meet the challenges of the current environment.”

Adams further stated, “And as for trust, United was named during the first quarter by Newsweek magazine as the most trusted banking company in the nation. Trust is critical to the success of any organization, and this is especially true in banking. We are honored to receive this recognition, and appreciate the level of trust we have earned with our stakeholders.”

First quarter of 2023 compared to the fourth quarter of 2022

Net interest income for the first quarter of 2023 decreased $15.1 million, or 6%, from the fourth quarter of 2022. Tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, for the first quarter of 2023 also decreased $15.1 million, or 6%, from the fourth quarter of 2022. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing and higher average balances of long-term borrowings as well as lower acquired loan accretion income. This decrease in net interest income and tax-equivalent net interest income was partially offset by higher interest income on earning assets driven by rising market interest rates and a change in the asset mix to higher earning assets. The interest rate spread for the first quarter of 2023 decreased 47 basis points from the fourth quarter of 2022 to 2.93% due to an 80 basis point increase in the average cost of funds partially offset by a 33 basis point increase in the yield on earning assets. The average yield on interest-bearing deposits increased 67 basis points to 1.83% from the fourth quarter of 2022. Average long-term borrowings increased $890.1 million, or 58%, from the fourth quarter of 2022. Acquired loan accretion income decreased $1.6 million to $3.1 million for the first quarter of 2023. The average yield on net loans and loans held for sale increased 37 basis points to 5.55% from the fourth quarter of 2022. An increase in average earning assets of $435.4 million, or 2%, from the fourth quarter of 2022 was driven by an increase in average net loans and loans held for sale of $327.9 million and an increase of $200.0 million in average short-term investments partially offset by a decrease of $92.5 million in average investment securities. The net interest margin of 3.63% for the first quarter of 2023 was a decrease of 24 basis points from the net interest margin of 3.87% for the fourth quarter of 2022.

The provision for credit losses was $6.9 million for the first quarter of 2023 as compared to $16.4 million for the fourth quarter of 2022. The provision for credit losses in the first quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the first quarter of 2023 increased $1.9 million, or 6%, from the fourth quarter of 2022. The increase in noninterest income was primarily due to an increase of $1.8 million in income from mortgage banking activities mainly due to a higher quarter end loan pipeline valuation.

Noninterest expense for the first quarter of 2023 was flat from the fourth quarter of 2022, decreasing $123 thousand, or less than 1%. The decrease in noninterest expense was primarily driven by a decrease in the expense for the reserve for unfunded loan commitments of $3.9 million and a decrease in employee compensation of $2.1 million. These decreases were partially offset by increases in employee benefits of $3.1 million, other noninterest expense of $1.6 million and FDIC insurance expense of $1.3 million. The decrease in the expense for the reserve for unfunded loan commitments was driven by a decrease in the outstanding balance of loan commitments at quarter end. The decrease in employee compensation was primarily driven by lower employee commissions related to mortgage banking production and lower employee incentives. The increase in employee benefits was due to a combination of higher Federal Insurance Contributions Act (FICA) and postretirement plan costs. Other noninterest expense in the fourth quarter of 2022 included a $3.9 million partial recovery of a prior accrual that related to a litigation matter with a former commercial customer which was settled during the fourth quarter. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

For the first quarter of 2023, income tax expense was $24.4 million as compared to $26.6 million for the fourth quarter of 2022. The decrease of $2.2 million was due to a lower effective tax rate and lower earnings. United’s effective tax rate was 19.9% and 21.1% for the first quarter of 2023 and fourth quarter of 2022, respectively.

First quarter of 2023 compared to the first quarter of 2022

Earnings for the first quarter of 2023 were $98.3 million, or $0.73 per diluted share, as compared to earnings of $81.7 million, or $0.60 per diluted share, for the first quarter of 2022.

Net interest income for the first quarter of 2023 increased $42.8 million, or 22%, from the first quarter of 2022. Tax-equivalent net interest income for the first quarter of 2023 also increased $42.8 million, or 22%, from the first quarter of 2022. The increase in net interest income and tax-equivalent net interest income was primarily due to the impact of rising market interest rates on earning assets, organic loan growth and a change in the asset mix to higher earning assets. These increases were partially offset by higher interest expense primarily driven by deposit rate repricing and higher average balances of long-term borrowings as well as lower income from Paycheck Protection Program (“PPP”) loan fees and acquired loan accretion. The interest rate spread for the first quarter of 2023 increased 4 basis points from the first quarter of 2022 to 2.93% due to a 194 basis point increase in the average yield on earning assets mostly offset by a 190 basis point increase in the average cost of funds. Average earning assets for the first quarter of 2023 increased $125.3 million, or less than 1%, from the first quarter of 2022 due to a $2.1 billion increase in average net loans and loans held for sale mostly offset by a $2.1 billion decrease in average short-term investments. The average yield on interest-bearing deposits increased 161 basis points to 1.83% from the first quarter of 2022. Average long-term borrowings increased $1.6 billion, or 195.8%, from the first quarter of 2022. Net PPP loan fee income was $210 thousand and $4.1 million for the first quarter of 2023 and 2022, respectively, a decrease of $3.9 million. Acquired loan accretion income was $3.1 million and $4.1 million for the first quarter of 2023 and 2022, respectively, a decrease of $1.0 million. The net interest margin of 3.63% for the first quarter of 2023 was an increase of 64 basis points from the net interest margin of 2.99% for the first quarter of 2022.

The provision for credit losses was $6.9 million for the first quarter of 2023 as compared to a net benefit of $3.4 million for the first quarter of 2022. The provision for credit losses in the first quarter of 2023 was primarily driven by an increase in the allowance for loan & lease losses mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income for the first quarter of 2023 was $32.7 million, which was a decrease of $13.3 million, or 29%, from the first quarter of 2022. The decrease in noninterest income was driven by a $12.8 million decrease in income from mortgage banking activities mainly due to lower mortgage loan origination and sale volume and a lower margin on loans sold in the secondary market.

Noninterest expense for the first quarter of 2023 was $137.4 million, a decrease of $1.8 million, or 1%, from the first quarter of 2022 primarily due to decreases of $7.2 million in employee compensation and $2.6 million in the expense for the reserve for unfunded loan commitments partially offset by an increase of $4.6 million in other noninterest expense and an increase of $1.9 million in FDIC expense. The decrease in employee compensation was primarily due to lower employee commissions and incentives related to mortgage banking production as well as a lower employee headcount. The increase in other noninterest expense was primarily driven by higher amounts of certain general operating expenses. The increase in FDIC insurance expense was primarily due to a higher assessment rate.

For the first quarter of 2023, income tax expense was $24.4 million as compared to $20.1 million for the first quarter of 2022. The increase of $4.4 million was primarily due to higher earnings and a slightly higher effective tax rate. United’s effective tax rate was 19.9% for the first quarter of 2023 and 19.8% for the first quarter of 2022.

Credit Quality

United’s asset quality continues to be sound. At March 31, 2023, non-performing loans were $42.4 million, or 0.21% of loans & leases, net of unearned income. Total non-performing assets were $46.5 million, including other real estate owned (“OREO”) of $4.1 million, or 0.15% of total assets at March 31, 2023. At December 31, 2022, non-performing loans were $58.6 million, or 0.29% of loans & leases, net of unearned income. Total non-performing assets were $60.7 million, including OREO of $2.1 million, or 0.21% of total assets at December 31, 2022.

On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 non-performing loans and non-performing assets included $9.1 million of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-day past due are included in the respective non-performing loan and non-performing asset categories at March 31, 2023. Refer to our first quarter 2023 Form 10-Q for additional information related to our adoption of this ASU.

As of March 31, 2023, the allowance for loan & lease losses was $240.5 million, or 1.17% of loans & leases, net of unearned income, as compared to $234.7 million, or 1.14% of loans & leases, net of unearned income, at December 31, 2022. Net charge-offs were $1.1 million for the first quarter of 2023 compared to net recoveries of $2.0 million for the first quarter of 2022. Annualized net charge-offs (recoveries) as a percentage of average loans & leases, net of unearned income were 0.02% and (0.04)% for the first quarter of 2023 and 2022, respectively. Net charge-offs were $1.2 million for the fourth quarter of 2022.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.7% at March 31, 2023, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.5%, 12.5% and 10.8%, respectively. The March 31, 2023 ratios reflect United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

During the first quarter of 2022, United repurchased, under a previously announced stock repurchase plan, approximately 711 thousand shares of its common stock at an average price per share of $35.15. United did not repurchase any shares of its common stock during the first quarter of 2023.

About United Bankshares, Inc.

As of March 31, 2023, United had consolidated assets of approximately $30.2 billion. United is the parent company of United Bank which comprises nearly 250 offices in Virginia, Maryland, Washington, D.C., North Carolina, South Carolina, Georgia, Pennsylvania, West Virginia, and Ohio. United’s stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its March 31, 2023 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 March 31, 2023 and will adjust amounts preliminarily reported, if necessary.

Use of non-GAAP Financial Measures

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

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

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

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

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

Forward-Looking Statements

In this report, we have made various statements regarding current expectations or forecasts of future events, which speak only as of the date the statements are made. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are also made from time-to-time in press releases and in oral statements made by the officers of the Company. Forward-looking statements can be identified by the use of the words “expect,” “may,” “could,” “intend,” “project,” “estimate,” “believe,” “anticipate,” and other words of similar meaning. Such forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Therefore, undue reliance should not be placed upon these estimates and statements. United cannot assure that any of these statements, estimates, or beliefs will be realized and actual results may differ from those contemplated in these “forward-looking statements.” The following factors, among others, could cause the actual results of United’s operations to differ materially from its expectations: the uncertainty as to the extent of the duration, scope and impacts of the COVID-19 pandemic on United, its colleagues, the communities United serves, and the domestic and global economy; uncertainty in U.S. fiscal and monetary policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets, interest rate, securities market and monetary supply fluctuations; increasing rates of inflation and slower growth rates; reform of LIBOR; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those involving the Federal Reserve, FDIC, and CFPB; the effect of changes in the level of checking or savings account deposits on United’s funding costs and net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; competition; and changes in legislation or regulatory requirements. For more information about factors that could cause actual results to differ materially from United’s expectations, refer to its reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and United undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised to consult further disclosures United may make on related subjects in our filings with the SEC.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

Three Months Ended

EARNINGS SUMMARY:

 

March

2023

 

March

2022

 

December

2022

Interest income

 

$

329,303

 

$

202,795

 

$

307,741

Interest expense

 

 

94,983

 

 

11,293

 

 

58,337

Net interest income

 

 

234,320

 

 

191,502

 

 

249,404

Provision for credit losses

 

 

6,890

 

 

(3,410)

 

 

16,368

Noninterest income

 

 

32,744

 

 

46,025

 

 

30,879

Noninterest expense

 

 

137,419

 

 

139,175

 

 

137,542

Income before income taxes

 

 

122,755

 

 

101,762

 

 

126,373

Income taxes

 

 

24,448

 

 

20,098

 

 

26,608

Net income

 

$

98,307

 

$

81,664

 

$

99,765

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

Basic

 

$

0.73

 

$

0.60

 

$

0.74

Diluted

 

 

0.73

 

 

0.60

 

 

0.74

Cash dividends

 

 

0.36

 

 

0.36

 

 

0.36

Book value

 

 

34.14

 

 

33.77

 

 

33.52

Closing market price

 

$

35.20

 

$

34.88

 

$

40.49

Common shares outstanding:

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

134,936,551

 

 

136,068,439

 

 

134,745,122

Weighted average-basic

 

 

134,411,166

 

 

136,058,328

 

 

134,267,532

Weighted average-diluted

 

 

134,840,328

 

 

136,435,229

 

 

134,799,436

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

Return on average assets

 

 

1.35%

 

 

1.13%

 

 

1.36%

Return on average shareholders’ equity

 

 

8.72%

 

 

6.96%

 

 

8.80%

Return on average tangible equity (non-GAAP)(1)

 

 

14.97%

 

 

11.63%

 

 

15.28%

Average equity to average assets

 

 

15.49%

 

 

16.22%

 

 

15.45%

Net interest margin

 

 

3.63%

 

 

2.99%

 

 

3.87%

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

March 31

2023

 

December 31

2022

 

March 31

2022

Assets

 

$

30,182,241

 

$

29,489,380

 

$

29,365,511

Earning assets

 

 

26,826,111

 

 

26,135,400

 

 

25,958,745

Loans & leases, net of unearned income

 

 

20,612,159

 

 

20,558,166

 

 

18,392,086

Loans held for sale

 

 

68,176

 

 

56,879

 

 

340,040

Investment securities

 

 

4,777,587

 

 

4,872,604

 

 

5,020,712

Total deposits

 

 

22,284,586

 

 

22,303,166

 

 

23,474,301

Shareholders’ equity

 

 

4,606,537

 

 

4,516,193

 

 

4,595,140

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

Consolidated Statements of Income

 

Three Months Ended

 

 

March

 

March

 

December

 

 

2023

 

2022

 

2022

Interest & Loan Fees Income (GAAP)

 

$

329,303

 

$

202,795

 

$

307,741

Tax equivalent adjustment

 

 

1,135

 

 

1,109

 

 

1,149

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

 

 

330,438

 

 

203,904

 

 

308,890

Interest Expense

 

 

94,983

 

 

11,293

 

 

58,337

Net Interest Income (FTE) (non-GAAP)

 

 

235,455

 

 

192,611

 

 

250,553

 

 

 

 

 

 

 

Provision for Credit Losses

 

 

6,890

 

 

(3,410)

 

 

16,368

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

Fees from trust services

 

 

4,780

 

 

4,127

 

 

4,411

Fees from brokerage services

 

 

4,200

 

 

4,552

 

 

3,729

Fees from deposit services

 

 

9,362

 

 

10,148

 

 

9,510

Bankcard fees and merchant discounts

 

 

1,707

 

 

1,379

 

 

1,673

Other charges, commissions, and fees

 

 

1,138

 

 

759

 

 

805

Income from bank-owned life insurance

 

 

1,891

 

 

2,194

 

 

1,402

Income from mortgage banking activities

 

 

6,384

 

 

19,203

 

 

4,620

Mortgage loan servicing income

 

 

2,276

 

 

2,387

 

 

2,218

Net (losses) gains on investment securities

 

 

(405)

 

 

(251)

 

 

51

Other noninterest income

 

 

1,411

 

 

1,527

 

 

2,460

Total Noninterest Income

 

 

32,744

 

 

46,025

 

 

30,879

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

Employee compensation

 

 

55,414

 

 

62,621

 

 

57,537

Employee benefits

 

 

13,435

 

 

12,851

 

 

10,296

Net occupancy

 

 

11,833

 

 

11,187

 

 

11,455

Data processing

 

 

7,473

 

 

7,371

 

 

7,463

Amortization of intangibles

 

 

1,279

 

 

1,379

 

 

1,379

OREO expense

 

 

667

 

 

182

 

 

202

Net (gains) losses on the sale of OREO properties

 

 

(43)

 

 

(33)

 

 

1,062

Equipment expense

 

 

6,996

 

 

7,335

 

 

6,868

FDIC insurance expense

 

 

4,587

 

 

2,673

 

 

3,248

Mortgage loan servicing expense and impairment

 

 

1,884

 

 

1,643

 

 

1,826

Expense for the reserve for unfunded loan commitments

 

 

2,600

 

 

5,237

 

 

6,492

Other noninterest expense

 

 

31,294

 

 

26,729

 

 

29,714

Total Noninterest Expense

 

 

137,419

 

 

139,175

 

 

137,542

 

 

 

 

 

 

 

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

 

 

123,890

 

 

102,871

 

 

127,522

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

1,135

 

 

1,109

 

 

1,149

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

 

122,755

 

 

101,762

 

 

126,373

 

 

 

 

 

 

 

Taxes

 

 

24,448

 

 

20,098

 

 

26,608

 

 

 

 

 

 

 

Net Income

 

$

98,307

 

$

81,664

 

$

99,765

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

 

19.92%

 

 

19.75%

 

 

21.06%

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

March 2023

 

March 2022

 

March 31

 

December 31

 

 

Q-T-D Average

 

Q-T-D Average

2023

 

2022

 

 

 

 

 

 

Cash & Cash Equivalents

 

$

1,238,563

 

$

3,377,720

 

$

1,918,693

 

$

1,176,652

 

 

 

 

 

 

 

 

 

Securities Available for Sale

 

 

4,450,510

 

 

4,453,139

 

 

4,419,413

 

 

4,541,925

Less: Allowance for credit losses

 

 

0

 

 

0

 

 

0

 

 

0

Net available for sale securities

 

 

4,450,510

 

 

4,453,139

 

 

4,419,413

 

 

4,541,925

Securities Held to Maturity

 

 

1,020

 

 

1,020

 

 

1,020

 

 

1,020

Less: Allowance for credit losses

 

 

(18)

 

 

(19)

 

 

(18)

 

 

(18)

Net held to maturity securities

 

 

1,002

 

 

1,001

 

 

1,002

 

 

1,002

Equity Securities

 

 

7,767

 

 

12,528

 

 

7,792

 

 

7,629

Other Investment Securities

 

 

333,256

 

 

242,694

 

 

349,380

 

 

322,048

Total Securities

 

 

4,792,535

 

 

4,709,362

 

 

4,777,587

 

 

4,872,604

Total Cash and Securities

 

 

6,031,098

 

 

8,087,082

 

 

6,696,280

 

 

6,049,256

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

41,015

 

 

327,673

 

 

68,176

 

 

56,879

Commercial Loans & Leases

 

 

15,048,023

 

 

13,986,982

 

 

14,998,881

 

 

14,986,117

Mortgage Loans

 

 

4,215,807

 

 

2,989,438

 

 

4,283,339

 

 

4,158,226

Consumer Loans

 

 

1,400,008

 

 

1,253,905

 

 

1,348,678

 

 

1,435,820

 

 

 

 

 

 

 

 

 

Gross Loans

 

 

20,663,838

 

 

18,230,325

 

 

20,630,898

 

 

20,580,163

Unearned income

 

 

(21,243)

 

 

(27,766)

 

 

(18,739)

 

 

(21,997)

Loans & Leases, net of unearned income

 

 

20,642,595

 

 

18,202,559

 

 

20,612,159

 

 

20,558,166

Allowance for Loan & Lease Losses

 

 

(234,809)

 

 

(216,016)

 

 

(240,491)

 

 

(234,746)

Net Loans

 

 

20,407,786

 

 

17,986,543

 

 

20,371,668

 

 

20,323,420

Mortgage Servicing Rights

 

 

20,739

 

 

22,855

 

 

19,987

 

 

21,022

Goodwill

 

 

1,888,889

 

 

1,887,197

 

 

1,888,889

 

 

1,888,889

Other Intangibles

 

 

18,442

 

 

23,928

 

 

17,618

 

 

18,897

Operating Lease Right-of-Use Asset

 

 

74,163

 

 

80,446

 

 

76,884

 

 

71,144

Other Real Estate Owned

 

 

2,211

 

 

14,302

 

 

4,086

 

 

2,052

Bank Owned Life Insurance

 

 

480,690

 

 

478,575

 

 

482,098

 

 

480,184

Other Assets

 

 

547,256

 

 

435,921

 

 

556,555

 

 

577,637

Total Assets

 

$

29,512,289

 

$

29,344,522

 

$

30,182,241

 

$

29,489,380

 

 

 

 

 

 

 

 

 

MEMO: Interest-earning Assets

 

$

26,177,730

 

$

26,052,404

 

$

26,826,111

 

$

26,135,400

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

15,186,632

 

$

15,908,260

 

$

15,576,926

 

$

15,103,488

Noninterest-bearing Deposits

 

 

6,897,030

 

 

7,466,710

 

 

6,707,660

 

 

7,199,678

Total Deposits

 

 

22,083,662

 

 

23,374,970

 

 

22,284,586

 

 

22,303,166

 

 

 

 

 

 

 

 

 

Short-term Borrowings

 

 

166,614

 

 

133,987

 

 

170,094

 

 

160,698

Long-term Borrowings

 

 

2,417,999

 

 

817,363

 

 

2,788,103

 

 

2,197,656

Total Borrowings

 

 

2,584,613

 

 

951,350

 

 

2,958,197

 

 

2,358,354

 

 

 

 

 

 

 

 

 

Operating Lease Liability

 

 

78,729

 

 

85,110

 

 

81,394

 

 

75,749

Other Liabilities

 

 

194,997

 

 

173,312

 

 

251,527

 

 

235,918

Total Liabilities

 

 

24,942,001

 

 

24,584,742

 

 

25,575,704

 

 

24,973,187

 

 

 

 

 

 

 

 

 

Preferred Equity

 

 

0

 

 

0

 

 

0

 

 

0

Common Equity

 

 

4,570,288

 

 

4,759,780

 

 

4,606,537

 

 

4,516,193

Total Shareholders' Equity

 

 

4,570,288

 

 

4,759,780

 

 

4,606,537

 

 

4,516,193

 

 

 

 

 

 

 

 

 

Total Liabilities & Equity

 

$

29,512,289

 

$

29,344,522

 

$

30,182,241

 

$

29,489,380

 

 

 

 

 

 

 

 

 

MEMO: Interest-bearing Liabilities

 

$

17,771,245

 

$

16,859,610

 

$

18,535,123

 

$

17,461,842

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March

 

March

 

December

Quarterly Share Data:

 

2023

 

2022

 

2022

Earnings Per Share:

 

 

 

 

 

 

Basic

 

$

0.73

 

$

0.60

 

$

0.74

Diluted

 

$

0.73

 

$

0.60

 

$

0.74

Common Dividend Declared Per Share

 

$

0.36

 

$

0.36

 

$

0.36

High Common Stock Price

 

$

42.45

 

$

39.80

 

$

44.15

Low Common Stock Price

 

$

33.35

 

$

33.58

 

$

35.73

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

Basic

 

 

134,411,166

 

 

136,058,328

 

 

134,267,532

Diluted

 

 

134,840,328

 

 

136,435,229

 

 

134,799,436

 

 

 

 

 

 

 

Common Dividends

 

$

48,720

 

$

49,266

 

$

48,603

Dividend Payout Ratio

 

 

49.56%

 

 

60.33%

 

 

48.72%

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

EOP Share Data:

 

2023

 

2022

 

2022

Book Value Per Share

 

$

34.14

 

$

33.52

 

$

33.77

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

 

$

20.01

 

$

19.36

 

$

19.72

52-week High Common Stock Price

 

$

44.15

 

$

44.15

 

$

42.50

Date

 

11/11/22

 

11/11/22

 

5/18/21

52-week Low Common Stock Price

 

$

33.11

 

$

33.11

 

$

31.74

Date

 

5/2/22

 

5/2/22

 

09/20/21

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

134,936,551

 

 

134,745,122

 

 

136,068,439

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

EOP Employees (full-time equivalent)

 

 

2,836

 

 

2,856

 

 

3,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

$

4,606,537

 

$

4,516,193

 

$

4,595,140

Less: Total Intangibles

 

 

(1,906,507)

 

 

(1,907,786)

 

 

(1,912,278)

Tangible Equity (non-GAAP)

 

$

2,700,030

 

$

2,608,407

 

$

2,682,862

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

134,936,551

 

 

134,745,122

 

 

136,068,439

Tangible Book Value Per Share (non-GAAP)

 

$

20.01

 

$

19.36

 

$

19.72

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

March 2023

 

Three Months Ended

March 2022

 

Three Months Ended

December 2022

Selected Average Balances and Yields:

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

ASSETS:

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

 

Balance

 

Interest(1)

 

Rate(1)

Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds sold and securities purchased under

agreements to resell and other short-term investments

 

$

936,394

 

$

10,983

 

4.76%

 

$

3,028,826

 

$

2,329

 

0.31%

 

$

736,412

 

$

8,946

 

4.82%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

4,404,864

 

 

36,259

 

3.29%

 

 

4,264,820

 

 

17,505

 

1.64%

 

 

4,508,813

 

 

34,568

 

3.07%

Tax-exempt

 

 

387,671

 

 

2,740

 

2.83%

 

 

444,542

 

 

2,688

 

2.42%

 

 

376,198

 

 

2,717

 

2.89%

Total securities

 

 

4,792,535

 

 

38,999

 

3.26%

 

 

4,709,362

 

 

20,193

 

1.72%

 

 

4,885,011

 

 

37,285

 

3.05%

Loans and loans held for sale, net of unearned income (2)

 

 

20,683,610

 

 

280,456

 

5.49%

 

 

18,530,232

 

 

181,382

 

3.96%

 

 

20,340,792

 

 

262,659

 

5.13%

Allowance for loan losses

 

 

(234,809)

 

 

 

 

 

 

(216,016)

 

 

 

 

 

 

(219,933)

 

 

 

 

Net loans and loans held for sale

 

 

20,448,801

 

 

 

5.55%

 

 

18,314,216

 

 

 

4.01%

 

 

20,120,859

 

 

 

5.18%

Total earning assets

 

 

26,177,730

 

$

330,438

 

5.10%

 

 

26,052,404

 

$

203,904

 

3.16%

 

 

25,742,282

 

$

308,890

 

4.77%

Other assets

 

 

3,334,559

 

 

 

 

 

 

3,292,118

 

 

 

 

 

 

3,367,082

 

 

 

 

TOTAL ASSETS

 

$

29,512,289

 

 

 

 

 

$

29,344,522

 

 

 

 

 

$

29,109,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

15,186,632

 

$

68,592

 

1.83%

 

$

15,908,260

 

$

8,561

 

0.22%

 

$

15,166,408

 

$

44,265

 

1.16%

Short-term borrowings

 

 

166,614

 

 

1,157

 

2.82%

 

 

133,987

 

 

181

 

0.55%

 

 

154,894

 

 

874

 

2.24%

Long-term borrowings

 

 

2,417,999

 

 

25,234

 

4.23%

 

 

817,363

 

 

2,551

 

1.27%

 

 

1,527,904

 

 

13,198

 

3.43%

Total interest-bearing liabilities

 

 

17,771,245

 

 

94,983

 

2.17%

 

 

16,859,610

 

 

11,293

 

0.27%

 

 

16,849,206

 

 

58,337

 

1.37%

Noninterest-bearing deposits

 

 

6,897,030

 

 

 

 

 

 

7,466,710

 

 

 

 

 

 

7,507,329

 

 

 

 

Accrued expenses and other liabilities

 

 

273,726

 

 

 

 

 

 

258,422

 

 

 

 

 

 

254,451

 

 

 

 

TOTAL LIABILITIES

 

 

24,942,001

 

 

 

 

 

 

24,584,742

 

 

 

 

 

 

24,610,986

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,570,288

 

 

 

 

 

 

4,759,780

 

 

 

 

 

 

4,498,378

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,512,289

 

 

 

 

 

$

29,344,522

 

 

 

 

 

$

29,109,364

 

 

 

 

NET INTEREST INCOME

 

 

 

$

235,455

 

 

 

 

 

$

192,611

 

 

 

 

 

$

250,553

 

 

INTEREST RATE SPREAD

 

 

 

 

 

2.93%

 

 

 

 

 

2.89%

 

 

 

 

 

3.40%

NET INTEREST MARGIN

 

 

 

 

 

3.63%

 

 

 

 

 

2.99%

 

 

 

 

 

3.87%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal

 

 

income tax rate of 21%.

 

 

(2) Nonaccruing loans are included in the daily average loan amounts outstanding.

 

 

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

Three Months Ended

 

 

 

March

 

March

 

December

 

Selected Financial Ratios:

 

2023

 

2022

 

2022

 

Return on Average Assets

 

 

1.35%

 

 

1.13%

 

 

1.36%

 

Return on Average Shareholders’ Equity

 

 

8.72%

 

 

6.96%

 

 

8.80%

 

Return on Average Tangible Equity (non-GAAP) (1)

 

 

14.97%

 

 

11.63%

 

 

15.28%

 

Efficiency Ratio

 

 

51.46%

 

 

58.59%

 

 

49.07%

 

Price / Earnings Ratio

 

 

12.10

x

 

14.57

x

 

13.71

x

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

98,307

 

$

81,664

 

$

99,765

 

(b) Number of Days

 

 

90

 

 

90

 

 

92

 

Average Total Shareholders' Equity (GAAP)

 

$

4,570,288

 

$

4,759,780

 

$

4,498,378

 

Less: Average Total Intangibles

 

 

(1,907,331)

 

 

(1,911,125)

 

 

(1,908,656)

 

(c) Average Tangible Equity (non-GAAP)

 

$

2,662,957

 

$

2,848,655

 

$

2,589,722

 

Return on Average Tangible Equity (non-GAAP)\ [(a) / (b)] x 365 / (c)

 

 

14.97%

 

 

11.63%

 

 

15.28%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

March 31

2023

 

December 31

2022

 

March 31

2022

 

Loans & Leases, net of unearned income / Deposit Ratio

 

 

92.50%

 

 

92.18%

 

 

78.35%

 

Allowance for Loan & Lease Losses/ Loans & Leases, net of unearned income

 

 

1.17%

 

 

1.14%

 

 

1.17%

 

Allowance for Credit Losses (2)/ Loans & Leases, net of unearned income

 

 

1.40%

 

 

1.37%

 

 

1.37%

 

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

0.14%

 

 

0.12%

 

 

0.19%

 

90-Day Past Due Loans/ Loans & Leases, net of unearned income

 

 

0.06%

 

 

0.08%

 

 

0.08%

 

Non-performing Loans/ Loans & Leases, net of unearned income

 

 

0.21%

 

 

0.29%

 

 

0.43%

 

Non-performing Assets/ Total Assets

 

 

0.15%

 

 

0.21%

 

 

0.32%

 

Primary Capital Ratio

 

 

16.07%

 

 

16.11%

 

 

16.36%

 

Shareholders' Equity Ratio

 

 

15.26%

 

 

15.31%

 

 

15.65%

 

Price / Book Ratio

 

 

1.03

x

 

1.21

x

 

1.03

x

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

 

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

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March

 

March

 

December

Mortgage Banking Segment Data:

 

2023

 

2022

 

2022

Applications

 

$

505,840

 

$

1,696,504

 

$

447,951

Loans originated

 

 

312,077

 

 

1,006,363

 

 

399,706

Loans sold

 

$

301,476

 

$

1,170,124

 

$

396,735

Purchase money % of loans closed

 

 

92%

 

 

73%

 

 

85%

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

 

 

2.17%

 

 

2.98%

 

 

1.82%

Net interest income

 

$

2,122

 

$

2,317

 

$

2,654

Other income

 

 

10,861

 

 

23,397

 

 

10,693

Other expense

 

 

15,085

 

 

25,448

 

 

17,097

Income taxes

 

 

(424)

 

 

57

 

 

(810)

Net (loss) income

 

$

(1,678)

 

$

209

 

$

(2,940)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

Period End Mortgage Banking Segment Data:

 

2023

 

2022

 

2022

Locked pipeline

 

$

92,639

 

$

68,654

 

$

412,809

Balance of loans serviced

 

$

3,280,741

 

$

3,381,485

 

$

3,623,207

Number of loans serviced

 

 

22,436

 

 

23,510

 

 

24,677

UNITED BANKSHARES, INC. AND SUBSIDIARIES

Washington, D.C. and Charleston, WV

Stock Symbol: UBSI

(In Thousands Except for Per Share Data)

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

Asset Quality Data:

 

2023

 

2022

 

2022

EOP Non-Accrual Loans

 

$

29,296

 

$

23,685

 

$

34,093

EOP 90-Day Past Due Loans

 

 

13,105

 

 

15,565

 

 

15,179

EOP Restructured Loans (1)

 

 

n/a

 

 

19,388

 

 

30,582

Total EOP Non-performing Loans

 

$

42,401

 

$

58,638

 

$

79,854

EOP Other Real Estate Owned

 

 

4,086

 

 

2,052

 

 

13,641

Total EOP Non-performing Assets

 

$

46,487

 

$

60,690

 

$

93,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31

 

March 31

 

December 31

Allowance for Loan & Lease Losses:

 

2023

 

2022

 

2022

Beginning Balance

 

$

234,746

 

$

216,016

 

$

219,611

Gross Charge-offs

 

 

(2,936)

 

 

(1,476)

 

 

(2,968)

Recoveries

 

 

1,791

 

 

3,456

 

 

1,734

Net (Charge-offs) Recoveries

 

 

(1,145)

 

 

1,980

 

 

(1,234)

Provision for Loan & Lease Losses

 

 

6,890

 

 

(3,402)

 

 

16,369

Ending Balance

 

$

240,491

 

$

214,594

 

$

234,746

Reserve for lending-related commitments

 

 

48,789

 

 

36,679

 

 

46,189

Allowance for Credit Losses (2)

 

$

289,280

 

$

251,273

 

$

280,935

 

 

 

 

 

 

 

Notes:

(1)

On January 1, 2023, United adopted ASU 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” which eliminated the accounting guidance on troubled debt restructurings and enhanced creditors’ disclosure requirements related to loan refinancings and restructurings for borrowers experiencing financial difficulty. After the adoption of ASU 2022-02, United no longer considers accruing restructured loans that are fewer than 90 days past due as non-performing loans or non-performing assets. December 31, 2022 and March 31, 2022 non-performing loans and non-performing assets included $9,127 and $17,014, respectively, of troubled debt restructurings that were on accruing status and fewer than 90 days past due but classified as non-performing loans and non-performing assets. Restructured loans that are on non-accrual or 90-days past due are included in the above respective non-performing loan and non-performing asset categories at March 31, 2023.

 

 

 

Restructured loans with an aggregate balance of $7,186 and $13,568 at December 31, 2022 and March 31, 2022, respectively, were on nonaccrual status, but are not included in “EOP Non-Accrual Loans” above. Restructured loans with an aggregate balance of $3,075 at December 31, 2022 were 90 days past due, but not included in "EOP 90-Day Past Due Loans" above.

 

 

(2)

Includes allowances for loan losses and lending-related commitments.

 

Contacts

W. Mark Tatterson

Chief Financial Officer

(800) 445-1347 ext. 8716

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