United Bankshares, Inc. (NASDAQ: UBSI), today reported earnings for the fourth quarter and year of 2017. Earnings for the fourth quarter of 2017 were $18.0 million or $0.17 per diluted share as compared to earnings of $39.1 million or $0.51 per diluted share for the fourth quarter of 2016. 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). Earnings for the year of 2017 were $150.6 million or $1.54 per diluted share as compared to earnings of $147.1 million or $1.99 per diluted share for the year of 2016. 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.

“The year of 2017 was another successful year for United Bankshares,” stated Richard M. Adams, United’s Chairman of the Board and Chief Executive Officer. “We increased earnings before income taxes to a record $285 million. We increased dividends to $1.33 per share which represented the 44th consecutive year of dividend increases to our shareholders. This is a record only one other major banking company in the USA has been able to achieve. In addition, we completed our merger with Cardinal Financial Corporation (Cardinal), the 31st and largest acquisition under the current administration.”

On April 21, 2017, United completed its acquisition of Cardinal of Tysons Corner, Virginia. On June 3, 2016, United completed its acquisition of Bank of Georgetown of Washington, D.C. Both the results of operations of Cardinal and Bank of Georgetown are included in the consolidated results of operations from their respective dates of acquisition. Also, United consolidated its banking subsidiaries during the fourth quarter of 2017. As a result of the Cardinal acquisition, the fourth quarter and year of 2017 were impacted by increased levels of average balances, income, and expense as compared to the fourth quarter and year of 2016 which were impacted by increased levels of average balances, income, and expense due to the Bank of Georgetown acquisition. In addition, the fourth quarter and year of 2017 included merger-related expenses of $1.8 million and $26.8 million, respectively, as compared to merger-related expenses of $523 thousand and $6.1 million for the fourth quarter and year of 2016, respectively.

Net interest income for the fourth quarter of 2017 was $154.9 million, which was an increase of $41.6 million or 37% from the fourth quarter of 2016. The $41.6 million increase in net interest income occurred because total interest income increased $50.9 million while total interest expense only increased $9.3 million from the fourth quarter of 2016. Tax-equivalent net interest income, which adjusts for the tax-favored status of income from certain loans and investments, for the fourth quarter of 2017 was $157.1 million, an increase of $42.3 million or 37% from the fourth quarter of 2016 due mainly to an increase in average earning assets from the Cardinal acquisition. Average earning assets for the fourth quarter of 2017 increased $3.9 billion or 31% from the fourth quarter of 2016 due mainly to a $2.9 billion or 28% increase in average net loans. Average short-term investments increased $439.8 million or 47% while average investment securities increased $580.3 million or 42%. The fourth quarter of 2017 average yield on earning assets increased 29 basis points from the fourth quarter of 2016 due to additional loan accretion of $8.7 million on acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2017 was an increase of 22 basis points in the average cost of funds as compared to the fourth quarter of 2016 due to the higher market interest rates. The net interest margin of 3.77% for the fourth quarter of 2017 was an increase of 15 basis points from the net interest margin of 3.62% for the fourth quarter of 2016.

Net interest income for the year of 2017 was $549.0 million, which was an increase of $123.7 million or 29% from the year of 2016. The $123.7 million increase in net interest income occurred because total interest income increased $153.5 million while total interest expense only increased $29.8 million from the year of 2016. Tax-equivalent net interest income for the year of 2017 was $557.4 million, an increase of $126.0 million or 29% from the year of 2016. 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 $3.6 billion or 30% from the year of 2016 as average net loans increased $2.6 billion or 26% for the year of 2017. Average investment securities increased $401.3 million or 30%. In addition, the average yield on earning assets increased 7 basis points from the year of 2016 due to additional loan accretion of $20.4 million on acquired loans and higher market interest rates. Partially offsetting the increases to tax-equivalent net interest income for the year of 2017 was an increase of 16 basis points in the average cost of funds as compared to the year of 2016 due to higher market interest rates. The net interest margin of 3.58% for the year of 2017 was a decrease of 4 basis points from the net interest margin of 3.62% for the year of 2016.

On a linked-quarter basis, net interest income for the fourth quarter of 2017 increased $4.6 million or 3% from the third quarter of 2017. The $4.6 million increase in net interest income occurred because total interest income increased $4.9 million while total interest expense only increased $355 thousand from the third quarter of 2017. Tax-equivalent net interest income for the fourth quarter of 2017 increased $4.8 million or 3% due mainly to an increase in the average yield on earning assets. The yield on average earning assets for the fourth quarter of 2017 increased 13 basis points from the third quarter of 2017 due to additional loan accretion of $4.0 million and higher market interest rates. Average earning assets were relatively flat for the quarter, decreasing $11.0 million or less than 1%. Average net loans decreased $305.3 million or 2% while average short-term investments increased $124.1 million or 10% and average investment securities increased $170.2 million or 9%, respectively. Partially offsetting the increases to tax-equivalent net interest income for the fourth quarter of 2017 was an increase of 4 basis points in the average cost of funds as compared to the third quarter of 2017. The net interest margin of 3.77% for the fourth quarter of 2017 was an increase of 12 basis points from the net interest margin of 3.65% for the third quarter of 2017.

For the quarters ended December 31, 2017 and 2016, the provision for loan losses was $7.0 million and $5.8 million, respectively, while the provision for the year of 2017 was $28.4 million as compared to $24.5 million for the year of 2016. Net charge-offs were $5.3 million and $24.6 million for the fourth quarter and year of 2017, respectively, as compared to $5.7 million and $27.5 million for the same time periods in 2016. Annualized net charge-offs as a percentage of average loans were 0.16% and 0.20% for the fourth quarter and year of 2017, respectively. On a linked-quarter basis, the provision for loan losses for the fourth quarter of 2017 decreased $302 thousand while net charge-offs decreased $60 thousand from the third quarter of 2017.

Noninterest income for the fourth quarter of 2017 was $32.8 million, which was an increase of $16.1 million or 97% from the fourth quarter of 2016. The increase was due mainly to an increase of $14.4 million in income from mortgage banking activities due to increased production and sales of mortgage loans in the secondary market. As part of the Cardinal acquisition, United acquired Cardinal’s mortgage banking subsidiary, George Mason Mortgage, LLC (George Mason). George Mason is the largest locally headquartered home mortgage lender in the D.C. Metro region with offices located in Virginia, Maryland, North Carolina, South Carolina and the District of Columbia.

Noninterest income for the year of 2017 was $131.6 million, which was an increase of $61.6 million or 88% from the year of 2016. Once again, the increase was mainly due to increased production and sales of mortgage loans in the secondary market because of the acquisition of Cardinal and its mortgage banking subsidiary, George Mason. Income from mortgage banking activities for the year of 2017 increased $55.5 million from the year of 2016. Also, net gains on the sales, calls and redemption of investment securities for the year of 2017 increased $5.3 million from the year of 2016 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 fourth quarter of 2017 decreased $5.5 million or 14% from the third quarter of 2017 due mainly to a decline of $5.1 million in income from mortgage banking activities due to decreased production and sales of mortgage loans in the secondary market. The decline was due mainly to a typical seasonal slowdown.

Noninterest expense for the fourth quarter of 2017 was $95.8 million, an increase of $33.3 million or 53% from the fourth quarter of 2016 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases. In particular, employee compensation increased $16.9 million, employee benefits increased $2.2 million, net occupancy expenses increased $2.4 million, and data processing expense increased $1.8 million. In addition, within other expense, merger-related expenses increased $1.3 million and amortization of core deposit intangibles increased $1.2 million.

Noninterest expense for the year of 2017 was $367.4 million, an increase of $119.2 million or 48% from the year of 2016 due mainly to the additional employees and branch offices from the Cardinal acquisition as most major categories of noninterest expense showed increases. Employee compensation increased $71.0 million which includes an increase of $12.1 million in merger severance charges. Otherwise, employee compensation increased due to higher employee incentives and commissions expense mainly related to the mortgage banking production of George Mason. Employee benefits increased $8.2 million, net occupancy expenses increased $11.5 million which includes an increase of $4.4 million for the termination of leases and a reduction in value of leasehold improvements for closed offices, and data processing expense increased $5.7 million which included a contract termination penalty of $525 thousand. In addition, within other expense, other merger-related expenses increased $4.8 million and amortization of core deposit intangibles increased $3.8 million.

On a linked-quarter basis, noninterest expense for the fourth quarter of 2017 was relatively flat from the third quarter of 2017, decreasing $874 thousand or less than 1%. Employee compensation decreased $3.3 million due mainly to a decrease in commissions expense related to the decline in production and sales of mortgage loans in the secondary market. In addition, OREO expense decreased $1.4 million due to fewer declines in the fair value of OREO properties. Partially offsetting these decreases were increases in merger-related expenses of $1.3 million and business franchise taxes of $990 thousand within other expense.

For the fourth quarter of 2017, income tax expense was $66.9 million, an increase of $44.4 million from the fourth quarter of 2016 mainly due to the previously mentioned additional income tax expense of $37.7 million related to the estimated impact of the Tax Act and to higher earnings. For the year of 2017, income tax expense was $134.2 million, an increase of $58.7 million from the year of 2016 due to the additional income tax expense related to the estimated impact of the Tax Act and to higher earnings. On a linked-quarter basis, income tax expense increased $39.1 million due to the additional income tax expense related to the estimated impact of the Tax Act. The additional income tax expense related to the estimated impact of the Tax Act resulted primarily from the revaluation of United’s deferred tax assets and liabilities using a lower enacted corporate tax rate. United’s effective tax rate was approximately 78.8% for the fourth quarter of 2017, 36.5% for the fourth quarter of 2016 and 32.9% for the third quarter of 2017. For the years of 2017 and 2016, United's effective tax rate was 47.1% and 33.9%, respectively. The higher effective tax rates for the fourth quarter and year of 2017 were due to impact of the Tax Act.

United’s asset quality continues to be sound. At December 31, 2017, nonperforming loans were $168.7 million, or 1.30% of loans, net of unearned income as compared to nonperforming loans of $168.40 million or 1.28% of loans, net of unearned income at September 30, 2017 and $113.3 million, or 1.10% of loans, net of unearned income, at December 31, 2016. As of December 31, 2017, the allowance for loan losses was $76.6 million or 0.59% of loans, net of unearned income, as compared to $74.9 million or 0.57% of loans, net of unearned income at September 30, 2017 and $72.8 million or 0.70% of loans, net of unearned income, at December 31, 2016. Total nonperforming assets of $193.1 million, including OREO of $24.3 million at December 31, 2017, represented 1.01% of total assets as compared to nonperforming assets of $195.2 million or 1.02% at September 30, 2017 and nonperforming assets of $144.8 million or 1.00% of total assets at December 31, 2016.

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 14.2% at December 31, 2017 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.0%, 12.0% 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, 2017, United had consolidated assets of approximately $19.1 billion with 144 full service offices in West Virginia, Virginia, Maryland, Ohio, Pennsylvania and Washington, D.C. United Bankshares stock is traded on the NASDAQ Global Select Market under the quotation symbol "UBSI".

Cautionary Statements

The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of its December 31, 2017 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, 2017 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

2017

     December 31

2016

December 31

2017

     December 31

2016

EARNINGS SUMMARY:        
Interest income $ 176,518 $ 125,621 $ 623,806 $ 470,341
Interest expense   21,662         12,368     74,809         45,010  
Net interest income 154,856 113,253 548,997 425,331
Provision for loan losses 6,977 5,819 28,406 24,509
Noninterest income 32,764 16,652 131,645 70,032
Noninterest expenses   95,778         62,508     367,409         248,196  
Income before income taxes 84,865 61,578 284,827 222,658
Income taxes   66,890         22,472     134,246         75,575  
Net income $ 17,975       $ 39,106   $ 150,581       $ 147,083  
 
PER COMMON SHARE:
Net income:
Basic $ 0.17 $ 0.51 $ 1.54 $ 2.00
Diluted 0.17 0.51 1.54 1.99
Cash dividends $ 0.34 $ 0.33 1.33 1.32
Book value 30.85 27.59
Closing market price $ 34.75 $ 46.25
Common shares outstanding:
Actual at period end, net of treasury shares 105,040,648 81,039,974
Weighted average- basic 104,808,260 76,863,906 97,502,633 73,531,992
Weighted average- diluted 105,125,326 77,303,310 97,890,078 73,893,127
 
FINANCIAL RATIOS:
Return on average assets 0.38 % 1.10 % 0.85 % 1.10 %
Return on average shareholders’ equity 2.17 % 7.50 % 5.09 % 7.67 %
Average equity to average assets 17.40 % 14.62 % 16.80 % 14.34 %
Net interest margin 3.77 % 3.62 % 3.58 % 3.62 %
 
December 31

2017

     December 31

2016

December 31

2015

     September 30

2017

PERIOD END BALANCES:
Assets $ 19,058,959 $ 14,505,892 $ 12,577,944 $ 19,129,978
Earning assets 16,741,819 12,939,508 11,243,862 16,751,643
Loans, net of unearned income 13,011,421 10,341,137 9,384,080 13,140,468
Loans held for sale 265,955 8,445 10,681 315,031
Investment securities 2,071,645 1,403,638 1,204,182 1,836,725
Total deposits 13,830,591 10,796,867 9,341,527 13,875,297
Shareholders’ equity 3,240,530 2,235,747 1,712,635 3,263,843
 
 

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
2017 2016 2017 2017 2017
Interest & Loan Fees Income (GAAP) $ 176,518 $ 125,621 $ 171,583 $ 154,947 $ 120,758
Tax equivalent adjustment   2,261     1,559     2,092     2,512     1,564  
Interest & Fees Income (FTE) (non-GAAP) 178,779 127,180 173,675 157,459 122,322
Interest Expense   21,662     12,368     21,307     18,702     13,138  
Net Interest Income (FTE) (non-GAAP) 157,117 114,812 152,368 138,757 109,184
 
Provision for Loan Losses 6,977 5,819 7,279 8,251 5,899
 
Non-Interest Income:
Fees from trust & brokerage services 4,848 4,485 5,052 4,745 4,886
Fees from deposit services 8,644 8,189 8,744 8,528 7,706
Bankcard fees and merchant discounts 1,363 1,461 1,332 1,216 884
Other charges, commissions, and fees 524 334 535 521 477
Income from bank owned life insurance 1,232 881 1,403 1,258 1,217
Mortgage banking income 15,310 951 20,385 22,537 675
Other non-interest revenue 413 289 311 954 361
Net other-than-temporary impairment losses 0 0 0 (16 ) (44 )

Net gains on sales/calls of investment securities

 

430

   

62

   

467

   

763

    3,984  
Total Non-Interest Income   32,764     16,652     38,229     40,506     20,146  
 
Non-Interest Expense:
Employee compensation 41,007 24,158 44,308 55,461 23,471
Employee benefits 9,771 7,585 9,578 10,329 7,465
Net occupancy 9,006 6,584 9,364 13,913 6,784
Data processing 6,048 4,276 5,597 5,331 4,043
Amortization of intangibles 2,391 1,158 2,240 2,093 1,048
OREO expense 1,352 1,190 2,713 524 1,414
FDIC expense 1,989 2,207 1,540 1,771 1,751
Other expenses   24,214     15,350     21,312     22,715     16,866  
Total Non-Interest Expense   95,778     62,508     96,652     112,137     62,842  
 
Income Before Income Taxes (FTE) (non-GAAP) 87,126 63,137 86,666 58,875 60,589
 
Tax equivalent adjustment   2,261     1,559     2,092     2,512     1,564  
 
Income Before Income Taxes (GAAP) 84,865 61,578 84,574 56,363 59,025
 
Taxes   66,890     22,472     27,836     19,304     20,216  
 
Net Income $ 17,975   $ 39,106   $ 56,738   $ 37,059   $ 38,809  
 
MEMO: Effective Tax Rate 78.82 % 36.49 % 32.91 % 34.25 % 34.25 %
 
 
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
2017 2016 2015 2014
Interest & Loan Fees Income (GAAP) $ 623,806 $ 470,341 $ 423,630 $ 418,542
Tax equivalent adjustment   8,429     6,121     6,486     6,316  
Interest & Fees Income (FTE) (non-GAAP) 632,235 476,462 430,116 424,858
Interest Expense   74,809     45,010     39,506     42,834  
Net Interest Income (FTE) (non-GAAP) 557,426 431,452 390,610 382,024
 
Provision for Loan Losses 28,406 24,509 22,574 21,937
 
Non-Interest Income:
Fees from trust & brokerage services 19,531 19,037 19,085 18,141
Fees from deposit services 33,622 32,858 37,962 42,372
Bankcard fees and merchant discounts 4,795 5,215 4,786 4,207
Other charges, commissions, and fees 2,057 2,059 2,141 2,049
Income from bank owned life insurance 5,110 5,794 5,557 5,300
Mortgage banking income 58,907 3,450 2,507 1,876
Net gain on the sale of bank premises 0 0 0 8,976
Other non-interest revenue 2,039 1,339 1,433 1,153
Net other-than-temporary impairment losses (60 ) (33 ) (47 ) (6,478 )

Net gains on sales/calls of investment securities

 

5,644

   

313

   

202

   

3,366

 
Total Non-Interest Income   131,645     70,032     73,626     80,962  
 
Non-Interest Expense:
Employee compensation 164,247 93,281 88,123 90,823
Employee benefits 37,143 28,965 27,086 20,457
Net occupancy 39,067 27,529 24,301 25,796
Data processing 21,019 15,280 14,867 14,455
Amortization of intangibles 7,772 3,944 3,420 4,021
OREO expense 6,003 5,844 3,613 7,740
FDIC expense 7,051 8,548 8,367 7,565
Prepayment penalty on FHLB advance 0 0 0 1,971
Other expenses   85,107     64,805     61,910     67,019  
Total Non-Interest Expense   367,409     248,196     231,687     239,847  
 
Income Before Income Taxes (FTE) (non-GAAP) 293,256 228,779 209,975 201,202
 
Tax equivalent adjustment   8,429     6,121     6,486     6,316  
 
Income Before Income Taxes (GAAP) 284,827 222,658 203,489 194,886
 
Taxes   134,246     75,575     65,530     64,998  
 
Net Income $ 150,581   $ 147,083   $ 137,959   $ 129,888  
 
MEMO: Effective Tax Rate 47.13 % 33.94 % 32.20 % 33.35 %
 
 
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
2017 2016 December 31 December 31 December 31
Q-T-D Average Q-T-D Average 2017 2016 2015
 
Cash & Cash Equivalents $ 1,562,187 $ 1,094,122 $ 1,666,167 $ 1,434,527 $ 857,335
 
Securities Available for Sale 1,785,892 1,233,147 1,888,756 1,259,214 1,066,334
Securities Held to Maturity 20,040 33,414 20,428 33,258 39,099
Other Investment Securities   156,873     115,944     162,461     111,166     98,749  
Total Securities   1,962,805     1,382,505     2,071,645     1,403,638     1,204,182  
Total Cash and Securities   3,524,992     2,476,627     3,737,812     2,838,165     2,061,517  
 
Loans Held for Sale 263,605 9,480 265,955 8,445 10,681
 
Commercial Loans 9,845,362 7,847,555 9,822,027 7,783,478 7,096,595
Mortgage Loans 2,451,170 1,945,245 2,443,780 1,938,707 1,843,518
Consumer Loans   760,372     619,183     761,530     634,534     458,839  
 
Gross Loans 13,056,904 10,411,983 13,027,337 10,356,719 9,398,952
 
Unearned Income   (15,852 )   (15,712 )   (15,916 )   (15,582 )   (14,872 )
 
Loans, Net of Unearned Income 13,041,052 10,396,271 13,011,421 10,341,137 9,384,080
 
Allowance for Loan Losses (75,007 ) (72,666 ) (76,627 ) (72,771 ) (75,726 )
 
Goodwill 1,486,810 867,313 1,478,380 863,767 710,252
Other Intangibles   46,883     23,507     44,986     22,954     17,840  
Total Intangibles 1,533,693 890,820 1,523,366 886,721 728,092
 
Real Estate Owned 25,798 32,314 24,348 31,510 32,228
Other Assets   579,741     459,243     572,684     475,685     437,072  
Total Assets $ 18,893,874   $ 14,192,089   $ 19,058,959   $ 14,508,892   $ 12,577,944  
 
MEMO: Earning Assets $ 16,563,279   $ 12,646,642   $ 16,741,819   $ 12,939,508   $ 11,243,862  
 
Interest-bearing Deposits $ 9,518,792 $ 7,302,256 $ 9,535,904 $ 7,625,026 $ 6,641,569
Noninterest-bearing Deposits   4,279,825     3,114,684     4,294,687     3,171,841     2,699,958  
Total Deposits 13,798,617 10,416,940 13,830,591 10,796,867 9,341,527
 
Short-term Borrowings 344,164 449,163 477,587 209,551 423,028
Long-term Borrowings   1,364,091     1,172,081     1,363,977     1,172,026     1,015,249  
Total Borrowings 1,708,255 1,621,244 1,841,564 1,381,577 1,438,277
 
Other Liabilities   99,310     79,094     146,274     94,701     85,505  
Total Liabilities   15,606,182     12,117,278     15,818,429     12,273,145     10,865,309  
 
Preferred Equity --- --- --- --- ---
Common Equity   3,287,692     2,074,811     3,240,530     2,235,747     1,712,635  
Total Shareholders' Equity   3,287,692     2,074,811     3,240,530     2,235,747     1,712,635  
 
Total Liabilities & Equity $ 18,893,874   $ 14,192,089   $ 19,058,959   $ 14,508,892   $ 12,577,944  
 
MEMO: Interest-bearing Liabilities $ 11,227,047   $ 8,923,500   $ 11,377,468   $ 9,006,603   $ 8,079,846  
 
 
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: 2017 2016 2017 2017 2017
 
Earnings Per Share:
Basic $ 0.17 $ 0.51 $ 0.54 $ 0.37 $ 0.48
Diluted $ 0.17 $ 0.51 $ 0.54 $ 0.37 $ 0.48
 
Common Dividend Declared Per Share $ 0.34 $ 0.33 $ 0.33 $ 0.33 $ 0.33
 
High Common Stock Price $ 38.45 $ 49.35 $ 40.45 $ 42.60 $ 47.30
Low Common Stock Price $ 33.60 $ 36.52 $ 31.70 $ 37.45 $ 39.45
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 104,808,260 76,863,906 104,760,153 99,197,807 80,902,368
Diluted 105,125,326 77,303,310 105,068,122 99,620,045 81,306,540
 
Tax Applicable to Security Sales/Calls $ 159 $ 23 $ 173 $ 282 $ 1,474
 
Common Dividends $ 35,715 $ 25,315 $ 34,642 $ 34,621 $ 26,777
 
Dividend Payout Ratio 198.69 % 64.73 % 61.06 % 93.42 % 69.00 %
 
Year Ended
December December December December
YTD Share Data: 2017 2016 2015 2014
 
Earnings Per Share:
Basic $ 1.54 $ 2.00 $ 1.99 $ 1.93
Diluted $ 1.54 $ 1.99 $ 1.98 $ 1.92
 
Common Dividend Declared Per Share $ 1.33 $ 1.32 $ 1.29 $ 1.28
 
Average Shares Outstanding (Net of Treasury Stock):
Basic 97,502,633 73,531,992 69,334,849 67,404,254
Diluted 97,890,078 73,893,127 69,625,531 67,648,673
 
Tax Applicable to Security Sales/Calls $ 2,088 $ 114 $ 73 $ 1,178
 
Common Dividends $ 131,755 $ 98,696 $ 89,667 $ 88,522
 
Dividend Payout Ratio 87.50 % 67.10 % 65.00 % 68.15 %
 
EOP Employees (full-time equivalent) 2,381 1,701 1,701 1,703
 
Three Months Ended
December December September June March
EOP Share Data: 2017 2016 2017 2017 2017
Book Value Per Share $ 30.85 $ 27.59 $ 31.09 $ 30.85 $ 27.76
Tangible Book Value Per Share (1) $ 16.35 $ 16.65 $ 16.47 $ 16.19 $ 16.85
 
52-week High Common Stock Price $ 47.30 $ 49.35 $ 49.35 $ 49.35 $ 49.35
Date 01/03/17 12/12/16 12/12/16 12/12/16 12/12/16
52-week Low Common Stock Price $ 31.70 $ 32.22 $ 31.70 $ 35.91 $ 34.50
Date 09/07/17 02/11/16 09/07/17 07/06/16 06/27/16
 
EOP Shares Outstanding (Net of Treasury Stock): 105,040,648 81,039,974 104,983,126 104,946,351 81,151,257
 

Note:

(1) Tangible Book Value Per Share:
Total Shareholders' Equity (GAAP) $ 3,240,530 $ 2,235,747 $ 3,263,843 $ 3,237,421 $ 2,252,859
Less: Total Intangibles   (1,523,366 )   (886,721 )   (1,535,133 )   (1,538,640 )   (885,674 )
Tangible Equity (non-GAAP) $ 1,717,164 $ 1,349,026 $ 1,728,710 $ 1,698,781 $ 1,367,185

÷ EOP Shares Outstanding (Net of Treasury Stock)

105,040,648 81,039,974 104,983,126 104,946,351 81,151,257
Tangible Book Value Per Share (non-GAAP) $ 16.35 $ 16.65 $ 16.47 $ 16.19 $ 16.85
 
 
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
2017 2016 2017 2017 2017

Selected Yields and Net Interest Margin:

Net Loans 4.84 % 4.50 % 4.61 % 4.38 % 4.34 %
Investment Securities 2.60 % 2.68 % 2.61 % 2.52 % 2.84 %
Money Market Investments/FFS 1.36 % 0.48 % 1.55 % 1.12 % 0.87 %
Average Earning Assets Yield 4.29 % 4.00 % 4.16 % 3.91 % 3.85 %
Interest-bearing Deposits 0.60 % 0.43 % 0.57 % 0.53 % 0.45 %
Short-term Borrowings 0.50 % 0.40 % 0.52 % 0.49 % 0.54 %
Long-term Borrowings 1.97 % 1.38 % 1.93 % 1.72 % 1.52 %
Average Liability Costs 0.77 % 0.55 % 0.73 % 0.66 % 0.59 %
Net Interest Spread 3.52 % 3.45 % 3.43 % 3.25 % 3.26 %
Net Interest Margin 3.77 % 3.62 % 3.65 % 3.44 % 3.43 %
 

Selected Financial Ratios:

Return on Average Common Equity 2.17 % 7.50 % 6.89 % 4.93 % 6.98 %
Return on Average Assets 0.38 % 1.10 % 1.19 % 0.82 % 1.09 %
Efficiency Ratio 51.05 % 48.12 % 51.27 % 63.44 % 49.19 %
 
 
Year Ended
December December December December
2017 2016 2015 2014

Selected Yields and Net Interest Margin:

Net Loans 4.56 % 4.38 % 4.33 % 4.49 %
Investment Securities 2.63 % 2.89 % 2.87 % 2.81 %
Money Market Investments/FFS 1.23 % 0.51 % 0.27 % 0.25 %
Average Earning Assets Yield 4.07 % 4.00 % 3.94 % 4.12 %
Interest-bearing Deposits 0.54 % 0.42 % 0.42 % 0.45 %
Short-term Borrowings 0.51 % 0.39 % 0.26 % 0.22 %
Long-term Borrowings 1.80 % 1.28 % 1.08 % 1.42 %
Average Liability Costs 0.69 % 0.53 % 0.50 % 0.56 %
Net Interest Spread 3.38 % 3.47 % 3.44 % 3.56 %
Net Interest Margin 3.58 % 3.62 % 3.58 % 3.71 %
 

Selected Financial Ratios:

Return on Average Common Equity 5.09 % 7.67 % 8.10 % 8.13 %
Return on Average Assets 0.85 % 1.10 % 1.12 % 1.11 %
Loan / Deposit Ratio 94.08 % 95.78 % 100.46 % 100.65 %
Allowance for Loan Losses/ Loans, Net of Unearned Income 0.59 % 0.70 % 0.81 % 0.83 %
Allowance for Credit Losses (1)/ Loans, Net of Unearned Income 0.59 % 0.71 % 0.82 % 0.85 %
Nonaccrual Loans / Loans, Net of Unearned Income 0.84 % 0.81 % 0.97 % 0.82 %
90-Day Past Due Loans/ Loans, Net of Unearned Income 0.08 % 0.08 % 0.12 % 0.13 %
Non-performing Loans/ Loans, Net of Unearned Income 1.30 % 1.10 % 1.35 % 1.20 %
Non-performing Assets/ Total Assets 1.01 % 1.00 % 1.26 % 1.20 %
Primary Capital Ratio 17.34 % 15.84 % 14.14 % 13.97 %
Shareholders' Equity Ratio 17.00 % 15.41 % 13.62 % 13.43 %
Price / Book Ratio 1.13x 1.68x 1.50x 1.57x
Price / Earnings Ratio 22.59x 23.24x 18.67x 19.50x
Efficiency Ratio 53.98 % 50.10 % 50.61 % 52.52 %
 

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 Year Ended
December 31     September June December 31

Mortgage Banking Data – George Mason:

2017 2017 2017 2017
Applications $ 906,000 $ 1,064,000 $ 1,367,000 $ 3,337,000
Loans originated 688,952 858,625 786,318 2,333,895
Loans sold $ 753,005 $ 887,711 $ 710,097 $ 2,350,813
Purchase money % of loans closed 77 % 81 % 87 % 82 %
Realized gain on sales and fees as a % of loans sold 2.72 % 2.75 % 2.96 % 2.80 %
Net interest income $ (123 ) $ (36 ) $ 90 $ (69 )
Other income 16,203 19,936 22,393 58,532
Other expense 19,328 24,036 18,708 62,072
Income taxes (862 ) (1,332 ) 1,293 (901 )
Net income $ (2,386 ) $ (2,804 ) $ 2,482 $ (2,708 )
 
        December     September     June

Period End Mortgage Banking Data – George Mason:

2017 2017 2017
Locked pipeline $ 157,130 $ 245,986 $ 387,710
 
    December     December     September     June     March

Asset Quality Data:

2017 2016 2017 2017 2017
 
EOP Non-Accrual Loans $ 108,803 $ 83,525 $ 100,016 $ 96,679 $ 90,596
EOP 90-Day Past Due Loans 9,803 8,586 22,249 8,489 6,714
EOP Restructured Loans (1)   50,129     21,152     46,132     49,037     24,028  
Total EOP Non-performing Loans $ 168,735 $ 113,263 $ 168,397 $ 154,205 $ 121,338
 
EOP Other Real Estate & Assets Owned   24,348     31,510     26,826     28,157     29,902  
Total EOP Non-performing Assets $ 193,083   $ 144,773   $ 195,223   $ 182,362   $ 151,240  
 
Three Months Ended Year Ended
December December December December December

Allowance for Loan Losses:

2017 2016 2017 2016 2015
Beginning Balance $ 74,926 $ 72,657 $ 72,771 $ 75,726 $ 75,529
Provision for Loan Losses   6,977     5,819     28,406     24,509     22,574  
81,903 78,476 101,177 100,235 98,103
Gross Charge-offs (9,299 ) (8,655 ) (32,863 ) (36,180 ) (25,499 )
Recoveries   4,023     2,950     8,313     8,716     3,122  
Net Charge-offs   (5,276 )   (5,705 )   (24,550 )   (27,464 )   (22,377 )
Ending Balance $ 76,627 $ 72,771 $ 76,627 $ 72,771 $ 75,726
Reserve for lending-related commitments   679     1,044     679     1,044     936  
Allowance for Credit Losses (2) $ 77,306   $ 73,815   $ 77,306   $ 73,815   $ 76,662  
 

Notes:

(1) Restructured loans with an aggregate balance of $30,868, $29,717, $31,606, $11,522 and $11,106 at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, 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.