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United Bankshares, Inc. Announces Earnings for the First Quarter of 2024

United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the first quarter of 2024 of $86.8 million, or $0.64 per diluted share. First quarter of 2024 results produced annualized returns on average assets, average equity and average tangible equity, a non-GAAP measure, of 1.19%, 7.25% and 11.98%, respectively. The first quarter of 2024 included $1.8 million of noninterest expense for the Federal Deposit Insurance Corporation’s (“FDIC”) special assessment levied on banking organizations stemming from the FDIC’s revised loss estimates to the Deposit Insurance Fund.

“UBSI delivered solid performance in the first quarter of 2024,” stated Richard M. Adams, Jr., United’s Chief Executive Officer. “While the headwinds in the current economic environment persist and continue to create challenges, UBSI’s operating metrics remain strong and we are well-positioned for success going forward.”

Earnings for the fourth quarter of 2023 were $79.4 million, or $0.59 per diluted share, and annualized returns on average assets, average equity and average tangible equity for the fourth quarter of 2023 were 1.08%, 6.70% and 11.27%, respectively. The fourth quarter of 2023 included $12.0 million of noninterest expense for the FDIC special assessment.

Earnings for the first quarter of 2023 were $98.3 million, or $0.73 per diluted share, and annualized returns on average assets, average equity and average tangible equity were 1.35%, 8.72% and 14.97%, respectively.

First quarter of 2024 compared to the fourth quarter of 2023

Net interest income for the first quarter of 2024 decreased $7.2 million, or 3%, from the fourth quarter of 2023. 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 2024 also decreased $7.2 million, or 3%, from the fourth quarter of 2023. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by the impact of deposit rate repricing, a decrease in acquired loan accretion income and a decrease in loan fees. The yield on average interest-bearing deposits increased 15 basis points to 3.10% for the first quarter of 2024. Loan fees for the first quarter of 2024 decreased $677 thousand from the fourth quarter of 2023. Acquired loan accretion income for the first quarter of 2024 decreased $521 thousand from the fourth quarter of 2023. The net interest margin of 3.44% for the first quarter of 2024 was a decrease of 11 basis points from the net interest margin of 3.55% for the fourth quarter of 2023.

The provision for credit losses was $5.7 million for the first quarter of 2024 as compared to $6.9 million for the fourth quarter of 2023.

Noninterest income for the first quarter of 2024 decreased $1.5 million, or 4%, from the fourth quarter of 2023 driven by a decrease of $3.0 million in other noninterest income. The fourth quarter of 2023 included a $2.7 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative. Partially offsetting the decrease in noninterest income was a $907 thousand increase in fees from brokerage services primarily due to higher volume.

Noninterest expense for the first quarter of 2024 decreased $11.5 million, or 8%, from the fourth quarter of 2023. This decrease in noninterest expense was driven by decreases in FDIC insurance expense of $10.2 million, other noninterest expense of $4.9 million and in the expense for the reserve for unfunded loan commitments of $2.7 million partially offset by an increase in employee benefits of $4.9 million and an increase in employee compensation of $1.5 million. The fourth quarter of 2023 included $12.0 million of expense for the FDIC special assessment. The first quarter of 2024 included an incremental $1.8 million of expense related to the FDIC special assessment stemming from the FDIC’s revised loss estimates. The decrease in other noninterest expense was driven by a decrease of $1.2 million of tax credit investment amortization and a decrease of $1.2 million of expense related to community development lending programs. Additionally, other noninterest expense for the fourth quarter of 2023 included $1.3 million related to trade name intangible impairments. The decrease in the expense for the reserve for unfunded loan commitments was primarily driven by a decrease in the outstanding balance of loan commitments. The increase in employee benefits was primarily driven by higher postretirement benefit costs and higher Federal Insurance Contributions Act (“FICA”) costs. Employee compensation for the first quarter of 2024 included approximately $240 thousand of severance expense associated with the previously announced mortgage delivery channel consolidation.

Income tax expense was $21.4 million for the first quarter of 2024 as compared to $24.8 million for the fourth quarter of 2023. The decrease of $3.4 million was due to a lower effective tax rate partially offset by higher earnings. United’s effective tax rate was 19.8% and 23.8% for the first quarter of 2024 and fourth quarter of 2023, respectively. The lower effective tax rate was primarily driven by the impact of provision to return adjustments in the fourth quarter of 2023.

First quarter of 2024 compared to the first quarter of 2023

Earnings for the first quarter of 2024 were $86.8 million, or $0.64 per diluted share, as compared to earnings of $98.3 million, or $0.73 per diluted share, for the first quarter of 2023.

Net interest income for the first quarter of 2024 decreased $11.8 million, or 5%, from the first quarter of 2023. Tax-equivalent net interest income for the first quarter of 2024 decreased $12.1 million, or 5%, from the first quarter of 2023. The decrease in net interest income and tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing, an increase in average interest-bearing deposits, a decrease in acquired loan accretion income and a decrease in loan fees. The decrease was partially offset by the impact of rising market interest rates on earning assets, organic loan growth and a decrease in average long-term borrowings. The average cost of funds increased 104 basis points from the first quarter of 2023 to 3.21% driven by an increase in the yield on average interest-bearing deposits of 127 basis points. Average deposits increased $522.0 million from the first quarter of 2023 driven by a $1.5 billion, or 10%, increase in average interest-bearing deposits. Acquired loan accretion income for the first quarter of 2024 decreased $613 thousand from the first quarter of 2023. Loan fees for the first quarter of 2024 decreased $351 thousand from the first quarter of 2023. The yield on average earning assets increased 60 basis points from the first quarter of 2023 to 5.70% driven by an increase in the yield on average net loans and loans held for sale of 53 basis points. Average net loans and loans held for sale increased $800.5 million, or 4%, from the first quarter of 2023. The net interest margin of 3.44% for the first quarter of 2024 was a decrease of 19 basis points from the net interest margin of 3.63% for the first quarter of 2023.

The provision for credit losses was $5.7 million for the first quarter of 2024 as compared to $6.9 million for the first quarter of 2023.

Noninterest income for the first quarter of 2024 was $32.2 million, a decrease of $532 thousand, or 2%, from the first quarter of 2023 driven by a decrease in mortgage loan servicing income of $1.5 million. The decrease in mortgage loan servicing income was due to lower mortgage servicing rights (“MSRs”) balances after the sale of MSRs during the second quarter of 2023. Partially offsetting the decrease in noninterest income was a $1.1 million increase in fees from brokerage services primarily due to higher volume.

Noninterest expense for the first quarter of 2024 was $140.7 million, an increase of $3.3 million, or 2% from the first quarter of 2023, primarily due to increases of $3.9 million in employee compensation, $2.2 million in other noninterest expense and $1.9 million in FDIC insurance expense partially offset by a decrease of $4.4 million in the expense for the reserve for unfunded loan commitments. The increase in employee compensation was driven by higher employee incentives, commissions, base salaries and employee severance. The increase in other noninterest expense was primarily driven by a $950 thousand increase in tax credit amortization and higher amounts of certain general operating expenses. The increase in FDIC insurance expense was driven by $1.8 million of expense recognized in the first quarter of 2024 for the FDIC special assessment. The decrease in the expense for the reserve for unfunded loan commitments was primarily driven by a decrease in the outstanding balance of loan commitments.

For the first quarter of 2024, income tax expense was $21.4 million as compared to $24.4 million for the first quarter of 2023. The decrease of $3.0 million was due to lower earnings and a slightly lower effective tax rate. United’s effective tax rate was 19.8% and 19.9% for the first quarter of 2024 and 2023, respectively.

Credit Quality

United’s asset quality continues to be sound. At March 31, 2024, non-performing loans were $74.4 million, or 0.35% of loans & leases, net of unearned income. Total non-performing assets were $77.1 million, including OREO of $2.7 million, or 0.26% of total assets at March 31, 2024. At December 31, 2023, non-performing loans were $45.5 million, or 0.21% of loans & leases, net of unearned income. Total non-performing assets were $48.1 million, including OREO of $2.6 million, or 0.16% of total assets at December 31, 2023. The increase in non-performing loans and non-performing assets was driven by one commercial & industrial loan relationship.

As of March 31, 2024, the allowance for loan & lease losses was $262.9 million, or 1.22% of loans & leases, net of unearned income, as compared to $259.2 million, or 1.21% of loans & leases, net of unearned income, at December 31, 2023. Net charge-offs were $2.1 million for the first quarter of 2024, $1.1 million for the first quarter of 2023 and $2.5 million for the fourth quarter of 2023. Annualized net charge-offs as a percentage of average loans & leases, net of unearned income were 0.04% for the first quarter of 2024, 0.02% for the first quarter of 2023 and 0.05% for the fourth quarter of 2023.

Capital

United continues to be well-capitalized based upon regulatory guidelines. United’s estimated risk-based capital ratio is 15.6% at March 31, 2024, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.2%, 13.2% and 11.4%, respectively. The March 31, 2024 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%. United did not repurchase any shares of its common stock during 2023 or 2024.

About United Bankshares, Inc.

As of March 31, 2024, United had consolidated assets of approximately $30.0 billion. United is the parent company of United Bank, which comprises more than 225 offices located throughout Washington, D.C., Virginia, West Virginia, Maryland, North Carolina, South Carolina, Ohio, Pennsylvania, and Georgia. 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, 2024 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, 2024 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: 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; 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; changes in legislation or regulatory requirements; and the impact of natural disasters, extreme weather events, military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and potential geopolitical consequences), terrorism or other geopolitical events. 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, 2023, 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

2024

 

March

2023

 

December

2023

Interest income

 

$

369,180

 

 

$

329,303

 

 

$

369,175

 

Interest expense

 

 

146,691

 

 

 

94,983

 

 

 

139,485

 

Net interest income

 

 

222,489

 

 

 

234,320

 

 

 

229,690

 

Provision for credit losses

 

 

5,740

 

 

 

6,890

 

 

 

6,875

 

Noninterest income

 

 

32,212

 

 

 

32,744

 

 

 

33,675

 

Noninterest expense

 

 

140,742

 

 

 

137,419

 

 

 

152,287

 

Income before income taxes

 

 

108,219

 

 

 

122,755

 

 

 

104,203

 

Income taxes

 

 

21,405

 

 

 

24,448

 

 

 

24,813

 

Net income

 

$

86,814

 

 

$

98,307

 

 

$

79,390

 

 

 

 

 

 

 

 

PER COMMON SHARE:

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

Basic

 

$

0.64

 

 

$

0.73

 

 

$

0.59

 

Diluted

 

 

0.64

 

 

 

0.73

 

 

 

0.59

 

Cash dividends

 

 

0.37

 

 

 

0.36

 

 

 

0.37

 

Book value

 

 

35.56

 

 

 

34.14

 

 

 

35.36

 

Closing market price

 

$

35.79

 

 

$

35.20

 

 

$

37.55

 

Common shares outstanding:

 

 

 

 

 

 

Actual at period end, net of treasury shares

 

 

135,192,675

 

 

 

134,936,551

 

 

 

134,949,063

 

Weighted average-basic

 

 

134,808,634

 

 

 

134,411,166

 

 

 

134,691,360

 

Weighted average-diluted

 

 

135,121,380

 

 

 

134,840,328

 

 

 

134,984,970

 

 

 

 

 

 

 

 

FINANCIAL RATIOS:

 

 

 

 

 

 

Return on average assets

 

 

1.19

%

 

 

1.35

%

 

 

1.08

%

Return on average shareholders’ equity

 

 

7.25

%

 

 

8.72

%

 

 

6.70

%

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

 

 

11.98

%

 

 

14.97

%

 

 

11.27

%

Average equity to average assets

 

 

16.36

%

 

 

15.49

%

 

 

16.11

%

Net interest margin

 

 

3.44

%

 

 

3.63

%

 

 

3.55

%

 

 

 

 

 

 

 

PERIOD END BALANCES:

 

March 31

2024

 

December 31

2023

 

March 31

2023

Assets

 

$

30,028,798

 

 

$

29,926,482

 

 

$

30,182,241

 

Earning assets

 

 

26,659,694

 

 

 

26,623,652

 

 

 

26,826,111

 

Loans & leases, net of unearned income

 

 

21,520,076

 

 

 

21,359,084

 

 

 

20,612,159

 

Loans held for sale

 

 

44,426

 

 

 

56,261

 

 

 

68,176

 

Investment securities

 

 

3,954,519

 

 

 

4,125,754

 

 

 

4,777,587

 

Total deposits

 

 

22,919,746

 

 

 

22,819,319

 

 

 

22,284,586

 

Shareholders’ equity

 

 

4,807,441

 

 

 

4,771,240

 

 

 

4,606,537

 

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)

 

 

Three Months Ended

Consolidated Statements of Income

 

March

 

March

 

December

 

 

2024

 

2023

 

2023

Interest & Loan Fees Income (GAAP)

 

$

369,180

 

 

$

329,303

 

 

$

369,175

 

Tax equivalent adjustment

 

 

872

 

 

 

1,135

 

 

 

866

 

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

 

 

370,052

 

 

 

330,438

 

 

 

370,041

 

Interest Expense

 

 

146,691

 

 

 

94,983

 

 

 

139,485

 

Net Interest Income (FTE) (non-GAAP)

 

 

223,361

 

 

 

235,455

 

 

 

230,556

 

 

 

 

 

 

 

 

Provision for Credit Losses

 

 

5,740

 

 

 

6,890

 

 

 

6,875

 

 

 

 

 

 

 

 

Noninterest Income:

 

 

 

 

 

 

Fees from trust services

 

 

4,646

 

 

 

4,780

 

 

 

4,508

 

Fees from brokerage services

 

 

5,267

 

 

 

4,200

 

 

 

4,360

 

Fees from deposit services

 

 

8,971

 

 

 

9,362

 

 

 

9,107

 

Bankcard fees and merchant discounts

 

 

1,873

 

 

 

1,707

 

 

 

1,923

 

Other charges, commissions, and fees

 

 

858

 

 

 

1,138

 

 

 

924

 

Income from bank-owned life insurance

 

 

2,418

 

 

 

1,891

 

 

 

1,855

 

Income from mortgage banking activities

 

 

5,298

 

 

 

6,384

 

 

 

4,746

 

Mortgage loan servicing income

 

 

789

 

 

 

2,276

 

 

 

783

 

Net (losses) gains on investment securities

 

 

(99

)

 

 

(405

)

 

 

276

 

Other noninterest income

 

 

2,191

 

 

 

1,411

 

 

 

5,193

 

Total Noninterest Income

 

 

32,212

 

 

 

32,744

 

 

 

33,675

 

 

 

 

 

 

 

 

Noninterest Expense:

 

 

 

 

 

 

Employee compensation

 

 

59,293

 

 

 

55,414

 

 

 

57,829

 

Employee benefits

 

 

14,671

 

 

 

13,435

 

 

 

9,771

 

Net occupancy

 

 

12,343

 

 

 

11,833

 

 

 

11,690

 

Data processing

 

 

7,463

 

 

 

7,473

 

 

 

7,261

 

Amortization of intangibles

 

 

910

 

 

 

1,279

 

 

 

1,279

 

OREO expense

 

 

159

 

 

 

667

 

 

 

188

 

Net (gains) on the sale of OREO properties

 

 

(83

)

 

 

(43

)

 

 

(126

)

Equipment expense

 

 

6,853

 

 

 

6,996

 

 

 

7,539

 

FDIC insurance expense

 

 

6,455

 

 

 

4,587

 

 

 

16,621

 

Mortgage loan servicing expense and impairment

 

 

1,015

 

 

 

1,884

 

 

 

962

 

Expense for the reserve for unfunded loan commitments

 

 

(1,790

)

 

 

2,600

 

 

 

940

 

Other noninterest expense

 

 

33,453

 

 

 

31,294

 

 

 

38,333

 

Total Noninterest Expense

 

 

140,742

 

 

 

137,419

 

 

 

152,287

 

 

 

 

 

 

 

 

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

 

 

109,091

 

 

 

123,890

 

 

 

105,069

 

 

 

 

 

 

 

 

Tax equivalent adjustment

 

 

872

 

 

 

1,135

 

 

 

866

 

 

 

 

 

 

 

 

Income Before Income Taxes (GAAP)

 

 

108,219

 

 

 

122,755

 

 

 

104,203

 

 

 

 

 

 

 

 

Taxes

 

 

21,405

 

 

 

24,448

 

 

 

24,813

 

 

 

 

 

 

 

 

Net Income

 

$

86,814

 

 

$

98,307

 

 

$

79,390

 

 

 

 

 

 

 

 

MEMO: Effective Tax Rate

 

 

19.78

%

 

 

19.92

%

 

 

23.81

%

 

 

 

 

 

 

 

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 2024

 

March 2023

 

March 31

 

December 31

 

 

Q-T-D Average

Q-T-D Average

2024

 

2023

 

 

 

 

 

Cash & Cash Equivalents

 

$

1,131,565

 

 

$

1,238,563

 

 

$

1,732,646

 

 

$

1,598,943

 

Securities Available for Sale

 

 

3,717,961

 

 

 

4,450,510

 

 

 

3,613,975

 

 

 

3,786,377

 

Less: Allowance for credit losses

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Net available for sale securities

 

 

3,717,961

 

 

 

4,450,510

 

 

 

3,613,975

 

 

 

3,786,377

 

Securities Held to Maturity

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

 

 

1,020

 

Less: Allowance for credit losses

 

 

(17

)

 

 

(18

)

 

 

(19

)

 

 

(17

)

Net held to maturity securities

 

 

1,003

 

 

 

1,002

 

 

 

1,001

 

 

 

1,003

 

Equity Securities

 

 

8,946

 

 

 

7,767

 

 

 

8,762

 

 

 

8,945

 

Other Investment Securities

 

 

316,490

 

 

 

333,256

 

 

 

330,781

 

 

 

329,429

 

Total Securities

 

 

4,044,400

 

 

 

4,792,535

 

 

 

3,954,519

 

 

 

4,125,754

 

Total Cash and Securities

 

 

5,175,965

 

 

 

6,031,098

 

 

 

5,687,165

 

 

 

5,724,697

 

Loans held for sale

 

 

43,759

 

 

 

41,015

 

 

 

44,426

 

 

 

56,261

 

Commercial Loans & Leases

 

 

15,630,846

 

 

 

15,048,023

 

 

 

15,725,038

 

 

 

15,535,204

 

Mortgage Loans

 

 

4,757,005

 

 

 

4,215,807

 

 

 

4,769,495

 

 

 

4,728,374

 

Consumer Loans

 

 

1,090,632

 

 

 

1,400,008

 

 

 

1,038,035

 

 

 

1,109,607

 

Gross Loans

 

 

21,478,483

 

 

 

20,663,838

 

 

 

21,532,568

 

 

 

21,373,185

 

Unearned income

 

 

(13,631

)

 

 

(21,243

)

 

 

(12,492

)

 

 

(14,101

)

Loans & Leases, net of unearned income

 

 

21,464,852

 

 

 

20,642,595

 

 

 

21,520,076

 

 

 

21,359,084

 

Allowance for Loan & Lease Losses

 

 

(259,341

)

 

 

(234,809

)

 

 

(262,905

)

 

 

(259,237

)

Net Loans

 

 

21,205,511

 

 

 

20,407,786

 

 

 

21,257,171

 

 

 

21,099,847

 

Mortgage Servicing Rights

 

 

4,427

 

 

 

20,739

 

 

 

4,241

 

 

 

4,554

 

Goodwill

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

 

 

1,888,889

 

Other Intangibles

 

 

12,185

 

 

 

18,442

 

 

 

11,595

 

 

 

12,505

 

Operating Lease Right-of-Use Asset

 

 

86,375

 

 

 

74,163

 

 

 

86,074

 

 

 

86,986

 

Other Real Estate Owned

 

 

2,668

 

 

 

2,211

 

 

 

2,670

 

 

 

2,615

 

Bank-Owned Life Insurance

 

 

488,401

 

 

 

480,690

 

 

 

490,596

 

 

 

486,895

 

Other Assets

 

 

524,203

 

 

 

547,256

 

 

 

555,971

 

 

 

563,233

 

Total Assets

 

$

29,432,383

 

 

$

29,512,289

 

 

$

30,028,798

 

 

$

29,926,482

 

MEMO: Interest-earning Assets

 

$

26,087,458

 

 

$

26,177,730

 

 

$

26,659,694

 

 

$

26,623,652

 

 

 

 

 

 

 

 

 

 

Interest-bearing Deposits

 

$

16,663,765

 

 

$

15,186,632

 

 

$

16,902,397

 

 

$

16,670,239

 

Noninterest-bearing Deposits

 

 

5,941,866

 

 

 

6,897,030

 

 

 

6,017,349

 

 

 

6,149,080

 

Total Deposits

 

 

22,605,631

 

 

 

22,083,662

 

 

 

22,919,746

 

 

 

22,819,319

 

Short-term Borrowings

 

 

203,570

 

 

 

166,614

 

 

 

207,727

 

 

 

196,095

 

Long-term Borrowings

 

 

1,500,237

 

 

 

2,417,999

 

 

 

1,739,434

 

 

 

1,789,103

 

Total Borrowings

 

 

1,703,807

 

 

 

2,584,613

 

 

 

1,947,161

 

 

 

1,985,198

 

Operating Lease Liability

 

 

92,480

 

 

 

78,729

 

 

 

92,266

 

 

 

92,885

 

Other Liabilities

 

 

213,989

 

 

 

194,997

 

 

 

262,184

 

 

 

257,840

 

Total Liabilities

 

 

24,615,907

 

 

 

24,942,001

 

 

 

25,221,357

 

 

 

25,155,242

 

Preferred Equity

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Common Equity

 

 

4,816,476

 

 

 

4,570,288

 

 

 

4,807,441

 

 

 

4,771,240

 

Total Shareholders' Equity

 

 

4,816,476

 

 

 

4,570,288

 

 

 

4,807,441

 

 

 

4,771,240

 

Total Liabilities & Equity

 

$

29,432,383

 

 

$

29,512,289

 

 

$

30,028,798

 

 

$

29,926,482

 

MEMO: Interest-bearing Liabilities

 

$

18,367,572

 

 

$

17,771,245

 

 

$

18,849,558

 

 

$

18,655,437

 

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:

 

2024

 

2023

 

2023

Earnings Per Share:

 

 

 

 

 

 

Basic

 

$

0.64

 

 

$

0.73

 

 

$

0.59

 

Diluted

 

$

0.64

 

 

$

0.73

 

 

$

0.59

 

Common Dividend Declared Per Share

 

$

0.37

 

 

$

0.36

 

 

$

0.37

 

High Common Stock Price

 

$

38.18

 

 

$

42.45

 

 

$

38.74

 

Low Common Stock Price

 

$

32.92

 

 

$

33.35

 

 

$

25.35

 

Average Shares Outstanding (Net of Treasury Stock):

 

 

 

 

 

 

Basic

 

 

134,808,634

 

 

 

134,411,166

 

 

 

134,691,360

 

Diluted

 

 

135,121,380

 

 

 

134,840,328

 

 

 

134,984,970

 

Common Dividends

 

$

50,213

 

 

$

48,720

 

 

$

50,066

 

Dividend Payout Ratio

 

 

57.84

%

 

 

49.56

%

 

 

63.06

%

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

EOP Share Data:

 

2024

 

2023

 

2023

Book Value Per Share

 

$

35.56

 

 

$

35.36

 

 

$

34.14

 

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

 

$

21.50

 

 

$

21.27

 

 

$

20.01

 

52-week High Common Stock Price

 

$

38.74

 

 

$

42.45

 

 

$

44.15

 

Date

 

12/14/23

 

2/3/2023

 

11/11/22

52-week Low Common Stock Price

 

$

25.35

 

 

$

25.35

 

 

$

33.11

 

Date

 

10/24/23

 

10/24/23

 

5/2/22

 

 

 

 

 

 

 

EOP Shares Outstanding (Net of Treasury Stock):

 

 

135,192,675

 

 

 

134,949,063

 

 

 

134,936,551

 

 

 

 

 

 

 

 

Memorandum Items:

 

 

 

 

 

 

Employees (full-time equivalent)

 

 

2,716

 

 

 

2,736

 

 

 

2,836

 

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

(1) Tangible Book Value Per Share:

 

 

 

 

 

 

Total Shareholders' Equity (GAAP)

 

$

4,807,441

 

 

$

4,771,240

 

 

$

4,606,537

 

Less: Total Intangibles

 

 

(1,900,484

)

 

 

(1,901,394

)

 

 

(1,906,507

)

Tangible Equity (non-GAAP)

 

$

2,906,957

 

 

$

2,869,846

 

 

$

2,700,030

 

÷ EOP Shares Outstanding (Net of Treasury Stock)

 

 

135,192,675

 

 

 

134,949,063

 

 

 

134,936,551

 

Tangible Book Value Per Share (non-GAAP)

 

$

21.50

$

21.27

 

 

$

20.01

 

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 2024

 

Three Months Ended

March 2023

 

Three Months Ended

December 2023

 

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

 

$

882,656

 

 

$

12,303

 

5.61

%

 

$

936,394

 

 

$

10,983

 

4.76

%

 

$

819,431

 

 

$

11,570

 

5.60

%

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

3,743,157

 

 

 

34,722

 

3.71

%

 

 

4,404,864

 

 

 

36,259

 

3.29

%

 

 

3,836,498

 

 

 

35,710

 

3.72

%

 

Tax-exempt

 

 

212,375

 

 

 

1,474

 

2.78

%

 

 

387,671

 

 

 

2,740

 

2.83

%

 

 

195,471

 

 

 

1,471

 

3.01

%

 

Total securities

 

 

3,955,532

 

 

 

36,196

 

3.66

%

 

 

4,792,535

 

 

 

38,999

 

3.26

%

 

 

4,031,969

 

 

 

37,181

 

3.69

%

 

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

 

 

21,508,611

 

 

 

321,553

 

6.01

%

 

 

20,683,610

 

 

 

280,456

 

5.49

%

 

 

21,279,444

 

 

 

321,290

 

6.00

%

 

Allowance for loan losses

 

 

(259,341

)

 

 

 

 

 

 

(234,809

)

 

 

 

 

 

 

(255,032

)

 

 

 

 

 

Net loans and loans held for sale

 

 

21,249,270

 

 

 

 

6.08

%

 

 

20,448,801

 

 

 

 

5.55

%

 

 

21,024,412

 

 

 

 

6.07

%

 

Total earning assets

 

 

26,087,458

 

 

$

370,052

 

5.70

%

 

 

26,177,730

 

 

$

330,438

 

5.10

%

 

 

25,875,812

 

 

$

370,041

 

5.68

%

 

Other assets

 

 

3,344,925

 

 

 

 

 

 

 

3,334,559

 

 

 

 

 

 

 

3,288,334

 

 

 

 

 

 

TOTAL ASSETS

$

29,432,383

 

$

29,512,289

$

29,164,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

16,663,765

 

 

$

128,377

 

3.10

%

 

$

15,186,632

 

 

$

68,592

 

1.83

%

 

$

16,414,152

 

 

$

122,132

 

2.95

%

 

Short-term borrowings

 

 

203,570

 

 

 

2,082

 

4.11

%

 

 

166,614

 

 

 

1,157

 

2.82

%

 

 

198,453

 

 

 

1,998

 

3.99

%

 

Long-term borrowings

 

 

1,500,237

 

 

 

16,232

 

4.35

%

 

 

2,417,999

 

 

 

25,234

 

4.23

%

 

 

1,394,361

 

 

 

15,355

 

4.37

%

 

Total interest-bearing liabilities

 

 

18,367,572

 

 

 

146,691

 

3.21

%

 

 

17,771,245

 

 

 

94,983

 

2.17

%

 

 

18,006,966

 

 

 

139,485

 

3.07

%

 

Noninterest-bearing deposits

 

 

5,941,866

 

 

 

 

 

 

 

6,897,030

 

 

 

 

 

 

 

6,175,309

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

306,469

 

 

 

 

 

 

 

273,726

 

 

 

 

 

 

 

284,191

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

24,615,907

 

 

 

 

 

 

 

24,942,001

 

 

 

 

 

 

 

24,466,466

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

4,816,476

 

 

 

 

 

 

 

4,570,288

 

 

 

 

 

 

 

4,697,680

 

 

 

 

 

 

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

 

$

29,432,383

 

 

 

 

 

 

$

29,512,289

 

 

 

 

 

 

$

29,164,146

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

$

223,361

 

 

 

 

 

$

235,455

 

 

 

 

 

$

230,556

 

 

 

INTEREST RATE SPREAD

 

 

 

 

 

2.49

%

 

 

 

 

 

2.93

%

 

 

 

 

 

2.61

%

 

NET INTEREST MARGIN

 

 

 

 

 

3.44

%

 

 

 

 

 

3.63

%

 

 

 

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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:

 

2024

 

2023

 

2023

Return on Average Assets

 

 

1.19

%

 

 

1.35

%

 

 

1.08

%

Return on Average Shareholders’ Equity

 

 

7.25

%

 

 

8.72

%

 

 

6.70

%

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

 

 

11.98

%

 

 

14.97

%

 

 

11.27

%

Efficiency Ratio

 

 

55.26

%

 

 

51.46

%

 

 

57.82

%

Price / Earnings Ratio

 

 

13.96

x

 

12.10

x

16.00

x

 

 

 

 

 

 

 

Note:

 

 

 

 

 

 

(1) Return on Average Tangible Equity:

 

 

 

 

 

 

(a) Net Income (GAAP)

 

$

86,814

 

 

$

98,307

 

 

$

79,390

 

(b) Number of Days

 

 

91

 

 

 

90

 

 

 

92

 

Average Total Shareholders' Equity (GAAP)

 

$

4,816,476

 

 

$

4,570,288

 

 

$

4,697,680

 

Less: Average Total Intangibles

 

 

(1,901,074

)

 

 

(1,907,331

)

 

 

(1,903,458

)

(c) Average Tangible Equity (non-GAAP)

 

$

2,915,402

 

 

$

2,662,957

 

 

$

2,794,222

 

Return on Average Tangible Equity (non-GAAP)\[(a) / (b)] x 366 or 365 / (c)

 

 

11.98

%

 

 

14.97

%

 

 

11.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Ratios:

 

March 31

2024

 

December 31

2023

 

March 31

2023

Loans & Leases, net of unearned income / Deposit Ratio

 

 

93.89

%

 

 

93.60

%

 

 

92.50

%

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

 

 

1.22

%

 

 

1.21

%

 

 

1.17

%

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

 

 

1.42

%

 

 

1.42

%

 

 

1.40

%

Nonaccrual Loans / Loans & Leases, net of unearned income

 

 

0.29

%

 

 

0.14

%

 

 

0.14

%

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

 

 

0.05

%

 

 

0.07

%

 

 

0.06

%

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

 

 

0.35

%

 

 

0.21

%

 

 

0.21

%

Non-performing Assets/ Total Assets

 

 

0.26

%

 

 

0.16

%

 

 

0.15

%

Primary Capital Ratio

 

 

16.86

%

 

 

16.79

%

 

 

16.07

%

Shareholders' Equity Ratio

 

 

16.01

%

 

 

15.94

%

 

 

15.26

%

Price / Book Ratio

 

 

1.01

x

 

1.06

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 Data: (1)

 

2024

 

2023

 

2023

Loans originated

 

$

176,906

 

 

$

177,808

 

 

$

225,319

 

Loans sold

 

 

188,711

 

 

 

166,511

 

 

 

228,672

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

Mortgage Loan Servicing Data:

 

2024

 

2023

 

2023

Balance of loans serviced

 

$

1,173,246

 

 

$

1,202,448

 

 

$

3,280,741

 

Number of loans serviced

 

 

12,163

 

 

 

12,419

 

 

 

22,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

March 31

Asset Quality Data:

 

2024

 

2023

 

2023

EOP Non-Accrual Loans

 

$

63,053

 

 

$

30,919

 

 

$

29,296

 

EOP 90-Day Past Due Loans

 

 

11,329

 

 

 

14,579

 

 

 

13,105

 

Total EOP Non-performing Loans

 

$

74,382

 

 

$

45,498

 

 

$

42,401

 

EOP Other Real Estate Owned

 

 

2,670

 

 

 

2,615

 

 

 

4,086

 

Total EOP Non-performing Assets

 

$

77,052

 

 

$

48,113

 

 

$

46,487

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March

 

March

 

December

Allowance for Loan & Lease Losses:

 

2024

 

2023

 

2023

Beginning Balance

 

$

259,237

 

 

$

234,746

 

 

$

254,886

 

Gross Charge-offs

 

 

(3,576

)

 

 

(2,936

)

 

 

(3,258

)

Recoveries

 

 

1,506

 

 

 

1,791

 

 

 

733

 

Net (Charge-offs)

 

 

(2,070

)

 

 

(1,145

)

 

 

(2,525

)

Provision for Loan & Lease Losses

 

 

5,738

 

 

 

6,890

 

 

 

6,876

 

Ending Balance

 

$

262,905

 

 

$

240,491

 

 

$

259,237

 

Reserve for lending-related commitments

 

 

42,915

 

 

 

48,789

 

 

 

44,706

 

Allowance for Credit Losses (2)

 

$

305,820

 

 

$

289,280

 

 

$

303,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

 

 

 

 

 

(1) During the first quarter of 2024, United completed its previously announced consolidation of its mortgage delivery channels. Based on an evaluation performed in accordance with ASC 280, Segment Reporting, as of March 31, 2024, United operates one reportable business segment. Mortgage banking data above is presented on a consolidated basis for all current and prior periods.

(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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